BW LPG Limited - BW LPG Takes Delivery of Vessels BW Mistral and BW Polaris From Avance Gas

Rhea-AI Summary

BW LPG has taken delivery of two Very Large Gas Carriers (VLGCs), BW Mistral and BW Polaris, from Avance Gas Holdings on December 10, 2024. This delivery is part of a larger acquisition of 12 modern VLGCs announced in August 2024, with nine vessels now delivered. As part of the transaction, BW LPG has issued 3,450,000 new shares to Avance Gas, bringing the total issued shares to 154,441,000, representing a total share capital of USD 536,359,798. Following this issuance, Avance Gas now holds a 9.35% stake in BW LPG with 14,441,000 shares.

Positive

• Successful delivery of 9 out of 12 planned VLGC vessels, expanding fleet capacity
• Strategic acquisition strengthening BW LPG's position as world's leading VLGC operator
• Expansion of total carrying capacity beyond 3 million CBM

Negative

• Share dilution due to issuance of 3,450,000 new shares

Insights

Financial Analyst

The delivery of BW Mistral and BW Polaris marks significant progress in BW LPG's strategic fleet expansion, with 9 out of 12 VLGCs now delivered from the Avance Gas acquisition. The transaction structure, involving share issuance of 3,450,000 new shares as partial payment, demonstrates efficient capital allocation while preserving cash. This brings Avance Gas's ownership to 9.35% of BW LPG, creating a notable strategic alignment between the two companies. The fleet expansion strengthens BW LPG's position as the world's leading VLGC operator, with their total carrying capacity now exceeding 3 million CBM. This consolidation in the VLGC market should enhance operational efficiency and market presence, potentially leading to improved economies of scale and stronger negotiating power in charter rates.

Market Research Analyst

The VLGC market dynamics are particularly favorable for this fleet expansion. The strategic timing of these deliveries positions BW LPG to capitalize on the growing global LPG trade, especially given the increasing US LPG exports and Asian demand. The integrated business model, combining vessel ownership, LPG trading and terminal infrastructure, creates multiple revenue streams and operational synergies. The backing of BW Group, with its extensive maritime expertise and diversified fleet of over 450 vessels, provides robust operational support and market intelligence. This transaction reinforces BW LPG's market leadership and should enhance their competitive advantage in the global LPG transportation 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 vessels BW Mistral and BW Polaris on 10 December 2024. Nine of the 12 VLGCs are now delivered.

BW LPG has today issued 3,450,000 new BW LPG shares to Avance Gas as part-consideration for the above vessels. Following the issuance of the new shares, the total number of issued shares of BW LPG is 154,441,000, representing a total share capital in the amount of USD 536,359,798. The new shares have been legally and validly issued and are fully paid.

Following the above issuance, Avance Gas holds 14,441,000 shares in BW LPG, representing approximately 9.35% 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/20241209343253/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 Avance Gas as of December 10, 2024?

BW LPG has received 9 out of the 12 planned VLGCs from Avance Gas, with BW Mistral and BW Polaris being the latest deliveries.

What is Avance Gas's ownership percentage in BW LPG (BWLP) after the December 2024 share issuance?

Following the issuance of new shares, Avance Gas holds 14,441,000 shares in BW LPG, representing approximately 9.35% shareholding.

How many new shares did BW LPG (BWLP) issue to Avance Gas in December 2024?

BW LPG issued 3,450,000 new shares to Avance Gas as part-consideration for the vessels BW Mistral and BW Polaris.