BW LPG Limited - BW LPG Takes Delivery of Vessel BW Pampero from Avance Gas

Rhea-AI Summary

BW LPG has taken delivery of the vessel BW Pampero from Avance Gas Holdings , marking the seventh delivery out of 12 Very Large Gas Carriers (VLGCs) acquisition announced in August 2024. As part of the transaction, BW LPG has issued 1,350,000 new shares to Avance Gas, bringing the total issued shares to 150,991,000 with a total share capital of USD 476,847,298. Following this issuance, Avance Gas now holds 10,991,000 shares in BW LPG, representing approximately 7.28% shareholding.

Positive

• Successfully completed delivery of 7 out of 12 VLGCs from strategic acquisition
• Expanding fleet capacity strengthens position as world's leading VLGC operator
• Integration progressing according to planned schedule

Negative

• Share dilution of existing stockholders through issuance of 1,350,000 new shares

Insights

Financial Analyst

This delivery marks the 7th vessel out of 12 VLGCs acquired from Avance Gas, representing significant progress in BW LPG's fleet expansion strategy. The transaction structure, involving share issuance of 1.35M new shares as partial payment, helps preserve cash while giving Avance Gas a 7.28% stake in BW LPG. This strategic acquisition strengthens BW LPG's position as the world's leading VLGC operator, increasing their carrying capacity and market share. The deal's structure and execution demonstrate strong financial management and strategic growth planning. The gradual delivery schedule helps manage integration risks while steadily building operational capacity.

Market Research Analyst

The VLGC market is experiencing strong fundamentals, making this fleet expansion particularly timely. BW LPG's growing fleet strengthens its competitive position in the global LPG transportation market, which is important given increasing LPG trade volumes and energy transition demands. The integration with BW Group, controlling over 450 vessels including the world's largest gas fleet, provides significant operational synergies and market leverage. This delivery reinforces BW LPG's market leadership and ability to capture growing demand in the LPG shipping sector.

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 Pampero on 7 December 2024. Seven 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 150,991,000, representing a total share capital in the amount of USD 476,847,298. The new shares have been legally and validly issued and are fully paid.

Following the above issuance, Avance Gas holds 10,991,000 shares in BW LPG, representing approximately 7.28% 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/20241207621746/en/

For further information, please contact:

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) received from the Avance Gas acquisition as of December 2024?

BW LPG has received 7 out of the 12 VLGCs from the Avance Gas acquisition as of December 7, 2024.

What is the current shareholding of Avance Gas in BW LPG (BWLP) after the latest share issuance?

After the latest share issuance, Avance Gas holds 10,991,000 shares in BW LPG, representing approximately 7.28% shareholding.

How many new shares did BW LPG (BWLP) issue for the BW Pampero vessel acquisition?

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