BW LPG Limited - BW LPG Takes Delivery of Vessel BW Monsoon From Avance Gas

Rhea-AI Summary

BW LPG has taken delivery of the vessel BW Monsoon from Avance Gas on December 18, 2024, marking the 11th delivery out of 12 Very Large Gas Carriers (VLGCs) acquisition announced in August 2024. As part of the transaction, BW LPG issued 1,350,000 new shares to Avance Gas, bringing the total issued shares to 157,141,000, representing a total share capital of USD 582,934,798. Following this issuance, Avance Gas now holds 17,141,000 shares in BW LPG, equivalent to approximately 10.91% shareholding.

Positive

• Successful delivery of 11 out of 12 VLGCs from strategic fleet expansion
• Strengthens position as world's leading VLGC operator with over 3 million CBM capacity

Negative

• Share dilution of approximately 0.87% from new share issuance

Insights

Financial Analyst

This delivery marks a significant milestone in BW LPG's strategic fleet expansion, with 11 out of 12 VLGCs now received from the Avance Gas acquisition. The transaction structure, involving share issuance of 1.35M new shares as partial payment, demonstrates efficient capital allocation while preserving cash. With Avance Gas now holding a 10.91% stake, this creates potential for strategic alignment between the two companies. The fleet addition strengthens BW LPG's position as the world's leading VLGC operator, expanding their total capacity beyond 3 million CBM. This acquisition is particularly timely given the strong LPG shipping market fundamentals and growing global demand for gas transportation.

Market Research Analyst

The strategic acquisition reinforces BW LPG's market dominance in the VLGC sector. The BW Monsoon delivery represents modern tonnage addition to their fleet, which is important in an industry where vessel age and efficiency matter significantly. This transaction aligns with broader industry trends of consolidation and fleet modernization in the LPG shipping sector. The expanded fleet provides BW LPG with greater operational flexibility and economies of scale, potentially leading to improved charter rates and operational efficiency. The company's integrated approach, combining shipping with trading and infrastructure, positions them well to capture value across the LPG supply chain.

SINGAPORE--(BUSINESS WIRE)-- With reference to the stock exchange announcement on 15 August 2024 for the acquisition of 12 modern Very Large Gas Carriers (VLGCs) from Avance Gas Holdings Ltd (“Avance Gas”, OSE ticker code: “AGAS”), BW LPG Limited (“BW LPG” or the “Company”, OSE ticker code: “BWLPG.OL”, NYSE ticker code “BWLP”) has taken delivery of vessel BW Monsoon on 18 December 2024. 11 of the 12 VLGCs are now delivered.

BW LPG has today issued 1,350,000 new BW LPG shares to Avance Gas as part-consideration for the above vessel. Following the issuance of the new shares, the total number of issued shares of BW LPG is 157,141,000, representing a total share capital in the amount of USD 582,934,798. The new shares have been legally and validly issued and are fully paid.

Following the above issuance, Avance Gas holds 17,141,000 shares in BW LPG, representing approximately 10.91% shareholding.

About BW LPG

BW LPG is the world’s leading owner and operator of LPG vessels, owning and operating Very Large Gas Carriers (VLGC) with a total carrying capacity of over 3 million CBM. With five decades of operating experience in LPG shipping, an in-house LPG trading division and a growing presence in LPG terminal infrastructure and distribution, BW LPG offers an integrated, flexible, and reliable service to customers along the LPG value chain. More information about BW LPG can be found at https://www.bwlpg.com.

BW LPG is associated with BW Group, a leading global maritime company involved in shipping, floating infrastructure, deepwater oil & gas production, and new sustainable technologies. Founded in 1955 by Sir YK Pao, BW controls a fleet of over 450 vessels transporting oil, gas and dry commodities, with its 200 LNG and LPG ships constituting the largest gas fleet in the world. In the renewables space, the group has investments in solar, wind, batteries, biofuels and water treatment.

This information is subject to disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241218422104/en/

Kristian Sørensen, CEO, BW LPG

Samantha Xu, CFO, BW LPG

E-mail: investor.relations@bwlpg.com

Source: BW LPG Limited

FAQ

How many VLGCs has BW LPG (BWLP) acquired from Avance Gas in December 2024?

BW LPG has taken delivery of 11 out of 12 VLGCs from Avance Gas, with the latest vessel BW Monsoon delivered on December 18, 2024.

What is the total share capital of BW LPG (BWLP) after the December 2024 share issuance?

Following the new share issuance, BW LPG's total share capital amounts to USD 582,934,798, with 157,141,000 total issued shares.

What percentage of BW LPG (BWLP) does Avance Gas own after the December 2024 transaction?

After the transaction, Avance Gas holds 17,141,000 shares in BW LPG, representing approximately 10.91% shareholding.

How many new shares did BW LPG (BWLP) issue to Avance Gas for the BW Monsoon vessel?

BW LPG issued 1,350,000 new shares to Avance Gas as part-consideration for the BW Monsoon vessel.