BW LPG Limited (“BW LPG”, the “Company”, OSE ticker code: “BWLPG.OL”) has entered into Memorandums of Agreement (MOA) to sell two Very Large Gas Carriers (VLGC) BW Confidence and BW Cedar.
BW Confidence was built in 2006 and has a carrying capacity of 83,270 cbm. The sale is expected to generate approximately US$36 million in liquidity and an expected net book gain of approximately US$4 million. The sale and delivery of the vessel to its new owner is expected to be completed in Q1 2021.
BW Cedar was built in 2007 and has a carrying capacity of 82,260 cbm. The sale has no liquidity impact in Q4 2020 and is expected to generate a net book gain of approximately US$3 million. BW Cedar will join three other VLGCs; namely BW Boss, BW Energy, and BW Birch in our joint venture company (JV) BW Global United LPG India. All four vessels are on time charter contracts to major Indian oil companies to supply India with LPG.
Says Anders Onarheim, CEO of BW LPG, “Committing both vessels for sale is aligned with our strategy to capture growth opportunities. With a strong VLGC freight market, we secured an attractive price for BW Confidence. With BW Cedar, we further strengthen BW LPG’s strong base in India. India is the world’s second largest LPG import market, and our JV is now the largest VLGC operator in India”.
Upon completion of both sales, BW LPG will own and operate a fleet of 45 modern VLGCs, including BW Gemini, the world’s first VLGC to be retrofitted with pioneering LPG dual-fuel propulsion engine.