Avance Gas Makes Significant Progress with VLGC Deliveries
Avance Gas Holding Ltd, a prominent player in the gas shipping industry, is making considerable strides as it continues the process of delivering its Very Large Gas Carriers (VLGCs) to BW LPG Ltd. These developments mark a transformative phase for the company, showcasing its commitment to maintaining strong partnerships and expanding its strategic reach.
Eighth VLGC Delivery to BW LPG
Recently, Avance Gas proudly announced the successful delivery of the eighth vessel in its fleet, the Avance Polaris, which was constructed in 2022. This vessel, known for its dual-fuel capabilities, symbolizes a significant technological advancement in shipping practices, allowing for greater efficiency and lower emissions.
Details of the Delivery
The Avance Polaris has transitioned under a sale-leaseback agreement alongside a Time Charter agreement. Both arrangements have been successfully novated to BW LPG, ensuring a seamless transition and continued operational efficacy. As a part of this transaction, Avance Gas was granted 2.1 million shares in BW LPG, underpinning the trust and collaboration between the two companies. Moreover, an outstanding lease obligation amounting to $64.4 million has also been novated, culminating in net cash proceeds of approximately $13.5 million for Avance Gas.
Ownership Stake in BW LPG
Post-delivery, Avance Gas now holds an impressive 13.091 million shares in BW LPG, representing a noteworthy 8.55% ownership share. These newly acquired shares will be subject to a lock-up period of 40 days, maintaining strategic stability during this transition phase.
Scheduled Deliveries Ahead
Looking forward, the company anticipates the delivery of four remaining vessels to BW LPG, all scheduled for later this month. Avance Gas is committed to keeping stakeholders informed as it continues to release important updates regarding these anticipated deliveries.
Contact Information for Inquiries
For any additional details or inquiries, interested parties can reach out to the following media contacts: Øystein Kalleklev, the CEO, can be contacted at +47 23 11 40 00, while Randi Navdal Bekkelund, the CFO, is also available at the same number for investor-related questions.
Conclusion
Avance Gas Holding Ltd is demonstrating a proactive approach to enhancing its position in the gas shipping sector through strategic vessel transfers and meticulous financial maneuvers. The successful delivery of the Avance Polaris marks only the beginning of what promises to be an exciting journey for the company and its stakeholders in the coming months.
Frequently Asked Questions
What is the significance of the Avance Polaris delivery?
The delivery of the Avance Polaris represents a pivotal moment for Avance Gas, showcasing their operational efficiencies and commitment to strategic partnerships.
How many VLGCs will Avance Gas deliver to BW LPG?
Avance Gas plans to deliver a total of eight VLGCs to BW LPG, with the eighth vessel, Avance Polaris, recently delivered and four more scheduled for December.
What is the current ownership stake of Avance Gas in BW LPG?
Post-delivery, Avance Gas holds 13.091 million shares in BW LPG, translating to an 8.55% ownership stake.
Who can I contact for further inquiries about Avance Gas?
For inquiries, you can contact Øystein Kalleklev, the CEO, or Randi Navdal Bekkelund, the CFO, both reachable at +47 23 11 40 00.
What was the financial outcome of the Avance Polaris delivery?
Avance Gas received net cash proceeds of approximately $13.5 million from the delivery of Avance Polaris, in addition to shares in BW LPG aimed at enhancing financial stability.
