Avance Gas Holding Ltd Completes Sixth VLGC Delivery
Avance Gas Holding Ltd. is celebrating a significant milestone with the successful delivery of its sixth Very Large Gas Carrier (VLGC), known as the Avance Rigel. This remarkable success comes as part of a larger deal with BW LPG Ltd, showcasing the company's commitment to expanding its influence in the global shipping industry.
Details of the Delivery
This recent delivery of the newly built, dual-fuel vessel marks a pivotal step in Avance Gas's ongoing strategy. The transaction involved BW LPG issuing 2.141 million shares to Avance Gas in exchange for the vessel, a move that generates a substantial financial influx for the company.
Financial Benefits of the Transaction
Upon completing this significant transaction, Avance Gas is set to receive net cash proceeds totaling approximately $30 million. This cash flow will enhance Avance Gas's financial flexibility and enable further investments in their fleet and other operational needs.
Ownership Stake in BW LPG
As a result of this transaction, Avance Gas now holds an ownership stake of 6.44% in BW LPG, amounting to 9.641 million shares. The shares come with a lock-up period of 40 days, reinforcing the strategic partnership between the two companies.
Future Deliveries and Expectations
Avance Gas has slated the delivery of six additional vessels to BW LPG, anticipated to occur later in the month. This ongoing collaboration hints at the companies' successful partnership and the potential for future growth in the liquefied gas transportation market.
Commitment to Regular Updates
The company is committed to maintaining transparency and will issue regular press releases regarding the remaining deliveries, ensuring stakeholders are kept informed of progress and developments.
Contact Information for Inquiries
For further inquiries regarding these developments, Avance Gas provides clear contact points for media and investor relations. Øystein Kalleklev, the CEO, can be reached for media-related questions, while Randi Navdal Bekkelund, the CFO, is available for investor and analyst inquiries. Both contacts are accessible at +47 23 11 40 00.
Frequently Asked Questions
What is the significance of the sixth VLGC delivery?
The sixth VLGC delivery signifies Avance Gas's ongoing partnership with BW LPG, enhancing their fleet and financial position through this strategic exchange.
How many vessels does Avance Gas have remaining for delivery?
There are six vessels still scheduled for delivery to BW LPG in the upcoming timeframe.
What financial benefits does Avance Gas expect?
Avance Gas anticipates net cash proceeds of approximately $30 million from this transaction, alongside an ownership stake of 6.44% in BW LPG.
Who can be contacted for more information?
For media inquiries, Øystein Kalleklev, CEO, is the point of contact, while Randi Navdal Bekkelund, CFO, handles investor and analyst queries.
Is there a lock-up period for the shares received?
Yes, the shares received from BW LPG are subject to a lock-up period of 40 days from the issuance date.
