BW LPG Limited, announces the sale of two Very Large Gas Carriers , BW Sakura and BW Niigata, and that the Board of Directors of BW LPG has also resolved to initiate a share buy-back programme.
BW Sakura and BW Niigata were built in 2010 in Japan and have a carrying capacity of 78,900 CBM each. They will be delivered to their new owners for further trading in Q1 2022. The sale is expected to generate approximately USD 71.9 million in net liquidity and a net book gain of approximately USD 13.7 million. With these sales, BW LPG owns and operates a fleet of 40 VLGCs.
On the sale of these vessels, Anders Onarheim, CEO of BW LPG says, “These sales of BW Sakura and BW Niigata are aligned with our strategy of being a returns-focused company seeking to maximize returns for our shareholders, and to position BW LPG to take advantage of opportunities for growth from a global energy transition towards a zero-carbon future”.
In addition, the Board of Directors of BW LPG has resolved to initiate a share buy-back programme, under which BW LPG will purchase up to 10 million common shares for a maximum amount of USD 50 million, to be held as treasury shares.
The shares will be purchased from the open market at prevailing prices on the Oslo Stock Exchange. The share buy-back programme will commence today and is expected to continue until the second quarter of 2022.
On the share buy-back programme, Anders Onarheim adds, “Our corporate actions reflect our ability to react to market opportunities – we are selling assets at a profit to our book values, and investing in the Company by buying shares which are trading at a significant discount to our shareholders’ equity value”.
