Avance Gas Makes Significant Progress with VLGC Deliveries
Avance Gas Holding Ltd, known for its excellence in the maritime shipping industry, has reached a pivotal point in its operations by successfully completing the eleventh VLGC (Very Large Gas Carrier) delivery to BW LPG. This delivery represents a strategic advancement in Avance Gas's efforts to streamline its vessel fleet through a well-structured sale.
Details of the VLGC Sale
On August 15, a major announcement was made regarding the sale of Avance Gas's VLGC fleet, comprising a total of twelve vessels to BW LPG Ltd. This strategic move not only helps in maximizing their asset utilization but also reinforces their financial position in the volatile shipping market.
Successful Delivery of the Monsoon
The most recent delivery involved the vessel Monsoon, which was built in 2015 and is equipped with a scrubber system. As a result of this successful transaction, BW LPG issued 1.35 million shares to Avance Gas. This share issuance significantly enhances Avance Gas's position within BW LPG and reflects a proactive approach for future collaborations.
Financial Gains
Alongside the share issuance, Avance Gas has also secured net cash proceeds amounting to approximately $22 million, helping to settle any outstanding debts. As of now, Avance Gas holds 17.141 million shares in BW LPG, granting them a substantial ownership stake of 10.91% within the company.
Final VLGC Delivery on the Horizon
Looking ahead, the final VLGC, Avance Avior, is set for delivery. The current schedule indicates that this final vessel is expected to join BW LPG around the turn of the year, anticipated around the last days of December. A press release detailing this final milestone will be shared upon completion of the transaction.
Future Outlook
With these completions, Avance Gas is positioning itself strongly within the industry. The sale of the VLGC fleet enhances their operational efficiency and opens up pathways for future opportunities. The company's strategic approach demonstrates its commitment to growth and adaptability in a competitive market.
Inquiries and Contacts
For more information about this recent development or inquiries related to media and investments, interested parties can reach out to:
Media Contact
Øystein Kalleklev, CEO, Tel: +47 23 11 40 00
Investor and Analyst Contact
Randi Navdal Bekkelund, CFO, Tel: +47 23 11 40 00
Frequently Asked Questions
What is the significance of the VLGC delivery for Avance Gas?
The delivery is part of a strategic sale intended to improve the company's financial standing and operational efficiency.
How many vessels were sold to BW LPG in total?
A total of twelve vessels were sold, with Monsoon being the eleventh delivery.
What are the financial implications of this transaction?
Avance Gas received net proceeds of approximately $22 million and gained significant shares in BW LPG.
When is the last VLGC scheduled for delivery?
The final VLGC, named Avance Avior, is scheduled for delivery around the end of December.
Who should I contact for more information?
Contact Øystein Kalleklev for media inquiries or Randi Navdal Bekkelund for investor-related questions.
