BW LPG Limited – Strategic Fleet Renewal With Sale and Purchase of Very Large Gas Carriers
BW LPG announces two strategic fleet transactions: the sale of its 2007-built BW Cedar for US$65 million, expected to generate a US$33 million net book gain and US$51 million in net cash after loan repayment, with delivery scheduled for Q1 2025. Additionally, the company exercised a purchase option for the 2019-built BW Kizoku at US$69.8 million, with delivery expected in January 2025. These moves are part of the company's fleet renewal strategy, capitalizing on strong second-hand market prices while acquiring modern vessels at competitive rates.
BW LPG annuncia due transazioni strategiche per la flotta: la vendita della BW Cedar, costruita nel 2007, per 65 milioni di dollari, che dovrebbe generare un guadagno netto contabile di 33 milioni di dollari e 51 milioni di dollari in contante netto dopo il rimborso del prestito, con consegna prevista per il primo trimestre del 2025. Inoltre, l'azienda ha esercitato un'opzione di acquisto per la BW Kizoku, costruita nel 2019, al prezzo di 69,8 milioni di dollari, con consegna prevista per gennaio 2025. Queste manovre fanno parte della strategia di rinnovo della flotta dell'azienda, capitalizzando i forti prezzi del mercato dell'usato mentre acquista navi moderne a tariffe competitive.
BW LPG anuncia dos transacciones estratégicas para su flota: la venta del BW Cedar, construido en 2007, por 65 millones de dólares, que se espera genere una ganancia neta contable de 33 millones de dólares y 51 millones de dólares en efectivo neto después del reembolso del préstamo, con entrega programada para el primer trimestre de 2025. Además, la empresa ejerció una opción de compra por el BW Kizoku, construido en 2019, por 69,8 millones de dólares, con entrega esperada para enero de 2025. Estos movimientos son parte de la estrategia de renovación de la flota de la empresa, aprovechando los fuertes precios del mercado de segunda mano mientras adquiere buques modernos a tarifas competitivas.
BW LPG는 두 가지 전략적 선대 거래를 발표했습니다: 2007년 건조된 BW Cedar를 6,500만 달러에 판매하여 3,300만 달러의 순 장부 이익과 대출 상환 후 5,100만 달러의 순 현금을 생성할 것으로 예상되며, 인도는 2025년 1분기로 예정되어 있습니다. 또한, 회사는 2019년 건조된 BW Kizoku에 대한 구매 옵션을 행사하여 6,980만 달러에 구입하였으며, 인도는 2025년 1월로 예상됩니다. 이러한 움직임은 회사의 선대 갱신 전략의 일환으로, 강력한 중고 시장 가격을 활용함과 동시에 경쟁력 있는 가격으로 현대적인 선박을 인수하는 것입니다.
BW LPG annonce deux transactions stratégiques pour sa flotte : la vente du BW Cedar, construit en 2007, pour 65 millions de dollars, qui devrait générer un gain comptable net de 33 millions de dollars et 51 millions de dollars en espèces nets après remboursement du prêt, avec une livraison prévue pour le premier trimestre 2025. De plus, la société a exercé une option d'achat pour le BW Kizoku, construit en 2019, au prix de 69,8 millions de dollars, avec une livraison attendue en janvier 2025. Ces mesures font partie de la stratégie de renouvellement de la flotte de l'entreprise, tirant parti des prix élevés du marché de l'occasion tout en acquérant des navires modernes à des tarifs compétitifs.
BW LPG kündigt zwei strategische Flottentransaktionen an: den Verkauf des 2007 gebauten BW Cedar für 65 Millionen US-Dollar, der voraussichtlich einen Nettobuchgewinn von 33 Millionen US-Dollar und 51 Millionen US-Dollar an Nettobargeld nach der Rückzahlung des Kredits generieren wird. Die Lieferung ist für das erste Quartal 2025 geplant. Darüber hinaus hat das Unternehmen eine Kaufoption für den 2019 gebauten BW Kizoku zu einem Preis von 69,8 Millionen US-Dollar ausgeübt, mit einer erwarteten Lieferung im Januar 2025. Diese Schritte sind Teil der Flottenneuerungsstrategie des Unternehmens, die auf den starken Preisen des Zweitmarkts aufbaut, während moderne Schiffe zu wettbewerbsfähigen Preisen erworben werden.
- Sale of BW Cedar generating US$33 million net book gain
- US$51 million net cash inflow from BW Cedar sale after loan repayment
- Strategic acquisition of newer vessel (BW Kizoku) at competitive price
- Reduction in owned fleet capacity through sale of BW Cedar
Insights
This strategic fleet renewal demonstrates strong asset management by BW LPG. The sale of BW Cedar at
The transaction's timing capitalizes on the current strong second-hand vessel market while securing a newer vessel at a competitive price. The
This fleet renewal strategy aligns with current maritime industry trends where operators are optimizing their fleets for both age profile and efficiency. The sale of a 16-year-old vessel and acquisition of a 4-year-old VLGC positions BW LPG advantageously in the competitive LPG shipping market. The transaction demonstrates BW LPG's strong market position as the world's leading VLGC operator, leveraging their scale to execute opportunistic asset plays while maintaining operational flexibility through their integrated platform.
BW LPG is pleased to announce that its
In addition, BW LPG has declared a purchase option for BW Kizoku, a 2019 Japan-built VLGC. BW Kizoku is currently on time charter with BW LPG with a purchase option, which BW LPG exercised for a consideration of
Kristian Sørensen, CEO of BW LPG, says, “Through these transactions, we are renewing our fleet by capitalizing on strong asset prices in the second-hand market for older vessels while acquiring a modern vessel at a competitive price translating to a new building equivalent of US$ mid-80 million. This example of asset play shows the optionality and ability for value creation that our platform and business model provide.”
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, experienced employees and an in-house LPG trading division, BW LPG offers an integrated, flexible, and reliable service to customers. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241118321326/en/
For further information, please contact:
Kristian Sørensen, CEO
Samantha Xu, CFO
E-mail: investor.relations@bwlpg.com
Source: BW LPG Limited
FAQ
What is the sale price of BW Cedar announced by BW LPG (BWLP)?
When will BW LPG (BWLP) take delivery of BW Kizoku?
How much net cash will BW LPG (BWLP) receive from the BW Cedar sale?
What is the purchase price for BW Kizoku by BW LPG (BWLP)?
