Avance Gas Holding Ltd Concludes Major Delivery to BW LPG
Successful Delivery of VLGC Fleet by Avance Gas
Avance Gas Holding Ltd has achieved a significant milestone in its venture by successfully completing the tenth delivery from its fleet of Very Large Gas Carriers (VLGCs) to BW LPG Ltd. This event marks an important step for Avance Gas as they navigate the evolving landscape of the shipping industry.
Details of the Tenth Delivery
The vessel delivered is a 2015-built model known as Breeze, equipped with scrubbers to meet rigorous environmental standards. This delivery was part of a larger arrangement wherein Avance Gas sold its VLGC fleet of twelve vessels to BW LPG. Following this transaction, Avance Gas was issued 1.35 million shares in BW LPG as part of the deal, enhancing its stake in the company.
Financial Implications of the Delivery
Upon the completion of this delivery, Avance Gas received net cash proceeds amounting to approximately $21.5 million, a substantial figure after addressing outstanding debts. Currently, Avance Gas holds a total of 15.791 million shares in BW LPG, which amounts to an ownership share of 10.14%. This solidified position in BW LPG not only reflects Avance Gas's financial strategy but also lays a foundation for potential future collaborations.
Future Deliveries Scheduled
Looking ahead, Avance Gas is poised to complete the delivery of the remaining two vessels in this fleet sale. They are expected to finalize these transactions by the end of the year, further reinforcing their commitment to this strategic partnership. The timely delivery of the last vessels is anticipated to create more opportunities for both Avance Gas and BW LPG, potentially unlocking further investment avenues.
Communication and Contacts
Avance Gas encourages any inquiries related to this transaction or its future plans. For media-related questions, Øystein Kalleklev, the CEO, is available at +47 23 11 40 00. Similarly, investor and analyst inquiries can be directed to Randi Navdal Bekkelund, the CFO, at the same contact number. Open communication is pivotal as Avance Gas navigates through these significant transitions.
Looking Towards the Future
As Avance Gas Holding Ltd concludes this crucial chapter in its story, the focus remains on strategic growth and enhancing shareholder value. The completion of the VLGC fleet delivery signifies not just a significant financial maneuver but also a commitment to sustainable practices in shipping, as seen in their investment in scrubber technology. This shift indicates a broader trend in the maritime industry towards reducing environmental impact while maintaining operational efficiency.
Frequently Asked Questions
What is the significance of the tenth VLGC delivery?
The tenth VLGC delivery signifies a major milestone for Avance Gas in the sale of its fleet to BW LPG, enhancing its financial position.
What financial benefits did Avance Gas gain from this delivery?
Avance Gas received around $21.5 million in net cash proceeds and a significant equity stake in BW LPG.
Are there more vessels scheduled for delivery?
Yes, two additional vessels are scheduled for delivery to BW LPG by the end of the year.
Who should inquiries regarding the transaction be directed to?
Inquiries can be directed to Øystein Kalleklev, CEO, or Randi Navdal Bekkelund, CFO, at Avance Gas.
How does this delivery affect Avance Gas’s future?
This delivery positions Avance Gas strategically for future growth and collaboration opportunities in the gas shipping sector.
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