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

Rhea-AI Summary

BW LPG has taken delivery of vessel BW Rigel from Avance Gas, marking the sixth delivery out of 12 modern Very Large Gas Carriers (VLGCs) acquisition announced in August 2024. As part of the transaction, BW LPG issued 2,141,000 new shares to Avance Gas, bringing the total issued shares to 149,641,000, with a total share capital of USD 453,559,798. Following this issuance, Avance Gas now holds a 6.44% shareholding in BW LPG with 9,641,000 shares.

BW LPG, as the world's leading owner and operator of LPG vessels, operates VLGCs with a total carrying capacity exceeding 3 million CBM, offering integrated services across the LPG value chain.

Positive

• Successful delivery of sixth VLGC vessel, progressing with fleet expansion strategy
• Strategic acquisition strengthening BW LPG's position as world's leading VLGC operator
• Total fleet capacity exceeds 3 million CBM, demonstrating significant market presence

Negative

• Share dilution due to issuance of 2,141,000 new shares

Insights

Financial Analyst

The delivery of BW Rigel marks the sixth vessel received from the previously announced 12-VLGC acquisition from Avance Gas, demonstrating steady progress in BW LPG's fleet expansion strategy. The payment structure, involving 2,141,000 new shares issued to Avance Gas, brings their total ownership to 6.44% of BW LPG, indicating a strategic alignment between the two companies. This acquisition strengthens BW LPG's position as the world's leading VLGC operator, expanding their fleet capacity beyond 3 million CBM. The deal's execution through partial share consideration helps preserve cash while maintaining a strong balance sheet. The transaction's structure and progress suggest a well-planned expansion that should enhance BW LPG's market position and operational scale in the growing LPG transportation sector.

Market Research Analyst

The strategic significance of this vessel delivery extends beyond mere fleet expansion. BW LPG's integrated approach, combining vessel ownership, LPG trading and terminal infrastructure, positions them uniquely in the LPG value chain. The acquisition strengthens their competitive moat in a market where scale and efficiency are crucial. With BW Group's backing and their diversified presence across maritime sectors, including renewable energy investments, this expansion aligns with broader industry trends toward consolidation and operational efficiency. The incremental delivery approach helps manage integration risks while steadily building market presence. This transaction represents a significant step in maintaining BW LPG's market leadership and ability to serve growing global LPG trade flows.

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 Rigel on 6 December 2024. Six of the 12 VLGCs are now delivered.

BW LPG has today issued 2,141,000 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 149,641,000, representing a total share capital in the amount of USD 453,559,798. The new shares have been legally and validly issued and are fully paid.

Following the above issuance, Avance Gas holds 9,641,000 shares in BW LPG, representing approximately 6.44% 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/20241206967042/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) received from the Avance Gas acquisition as of December 2024?

BW LPG has received 6 out of 12 VLGCs from the Avance Gas acquisition as of December 6, 2024.

What is Avance Gas's ownership percentage in BW LPG (BWLP) after the latest share issuance?

Following the latest share issuance, Avance Gas holds approximately 6.44% of BW LPG with 9,641,000 shares.

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

BW LPG issued 2,141,000 new shares to Avance Gas as part-consideration for the BW Rigel vessel.