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

Rhea-AI Summary

BW LPG has taken delivery of the vessel BW Sirocco from Avance Gas Holdings on November 21, 2024, marking the third delivery out of 12 planned Very Large Gas Carriers (VLGCs) acquisitions announced on August 15, 2024. As part of the transaction, BW LPG issued 1,350,000 new shares to Avance Gas, bringing the total issued shares to 144,800,000 with a total share capital of USD 370,052,548. Following this issuance, Avance Gas now holds 4,800,000 shares in BW LPG, representing approximately 3.31% shareholding.

Positive

• Successful delivery of third VLGC vessel expanding fleet capacity
• Strategic acquisition progress maintaining fleet modernization

Negative

• Share dilution due to issuance of 1,350,000 new shares

Insights

Financial Analyst

The delivery of BW Sirocco marks the third vessel out of a significant 12-VLGC acquisition from Avance Gas, demonstrating steady progress in BW LPG's fleet expansion strategy. The transaction structure, involving share-based payment, helps preserve cash while strategically aligning Avance Gas's interests through a 3.31% ownership stake. This delivery strengthens BW LPG's position in the VLGC market, potentially enhancing revenue-generating capacity and operational efficiency. The issuance of 1,350,000 new shares brings the total share count to 144,800,000, with a share capital of $370,052,548. This fleet modernization effort should positively impact the company's competitive position in the LPG transportation market, though investors should monitor the dilutive effect of the share issuance on existing stockholders.

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 Sirocco on 21 November 2024. Three 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 144,800,000, representing a total share capital in the amount of USD 370,052,548. The new shares have been legally and validly issued and are fully paid.

Following the above issuance, Avance Gas holds 4,800,000 shares in BW LPG, representing approximately 3.31% 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/20241121473424/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

When did BW LPG (BWLP) take delivery of BW Sirocco?

BW LPG took delivery of BW Sirocco on November 21, 2024.

How many VLGCs is BW LPG (BWLP) acquiring from Avance Gas in total?

BW LPG is acquiring 12 Very Large Gas Carriers (VLGCs) from Avance Gas.

What is Avance Gas's current shareholding in BW LPG (BWLP) after the new share issuance?

Avance Gas holds 4,800,000 shares in BW LPG, representing approximately 3.31% shareholding.

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

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