Avance Gas Holding Ltd Marks Milestone with VLGC Deliveries
Avance Gas Holding Ltd Achieves Significant VLGC Milestones
Avance Gas Holding Ltd., a key player in the maritime gas transport sector, has recently made waves with the successful completion of its second very large gas carrier (VLGC) delivery to BW LPG Ltd. This significant event marks a major step forward for Avance Gas as it transitions to the next phase of its business strategy.
Details of the VLGC Transactions
The Company previously announced a substantial deal to sell its VLGC fleet for approximately $1,050 million. Following the first VLGC delivery, which was completed on November 1, the recent delivery involves the 2022-built dual-fuel ship Avance Capella. Under this transaction, a sale leaseback agreement was successfully novated to the Buyer, BW LPG. This strategic move involves the novation of an outstanding lease obligation totaling $64.4 million.
Share Issuance and Financial Impact
As part of the deal, BW LPG issued 2.1 million shares to Avance Gas, significantly enhancing its stake in the company. Avance Gas now possesses a total of 3.45 million shares in BW LPG, translating to a 2.4% ownership share. Additionally, the Company received net cash proceeds amounting to $15 million, bolstering its financial position. Notably, these shares come with a lock-up period of 40 days from the date of issuance, reflecting strategic financial planning.
Upcoming Deliveries and Expectations
The excitement doesn’t stop with the recent deliveries. Avance Gas plans to deliver the remaining ten vessels to BW LPG before the year concludes. Current projections indicate that three additional deliveries are scheduled for November, with the remaining seven set for December, ensuring a busy end to the year for the Company.
Future Communications and Reporting
In line with its commitment to transparency, Avance Gas will continue to provide updates regarding the remaining vessel deliveries. Stakeholders can look forward to comprehensive details during the third quarter results presentation, which is anticipated shortly. This dedication to open communication underscores the Company’s focus on maintaining investor relations and ensuring all parties are well-informed.
Contact Information for Inquiries
For those seeking further details or clarification, Avance Gas encourages stakeholders to reach out directly. Media inquiries can be directed to Øystein Kalleklev, the CEO, at +47 23 11 40 00. Similarly, investor and analyst questions can be addressed to Randi Navdal Bekkelund, the CFO, also at +47 23 11 40 00. This approach demonstrates the Company's accessibility and commitment to maintaining open lines of communication with its investors and the media.
Frequently Asked Questions
What was the total sale price for Avance Gas's VLGC fleet?
The VLGC fleet was sold to BW LPG for approximately $1,050 million.
What ship did Avance Gas deliver recently?
The recently delivered ship is the 2022-built dual-fuel vessel named Avance Capella.
How many shares in BW LPG does Avance Gas now own?
Avance Gas now owns 3.45 million shares in BW LPG, which represents a 2.4% ownership share.
What is the expected timeline for the remaining deliveries?
Avance Gas expects to complete the delivery of the remaining vessels before the year's end, with three scheduled for November and seven for December.
Who should I contact for more information about Avance Gas?
Media inquiries can be directed to Øystein Kalleklev, CEO, and investor inquiries to Randi Navdal Bekkelund, CFO at +47 23 11 40 00.
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