BW LPG sells 2007 vessel for $64 million
- BW LPG agreed to sell the 2007-built BW Elm through its India subsidiary for continued trading.
- The sale is expected to generate about US$36 million in net book gain and US$64 million in net cash proceeds.
- BW LPG said the sale supports its strategy of selling older vessels while investing in newer ships.
BW LPG (NYSE:BWLP), through its 52%-owned subsidiary BW LPG India, agreed to sell the 2007-built BW Elm vessel, with the transaction expected to generate approximately US$36 million in net book gain and US$64 million in net cash proceeds.
The sale follows stronger second-hand vessel values in the shipping market, with BW LPG seeking to monetize older assets while continuing investments in newer tonnage.
The BW Elm is scheduled for delivery to the buyer by mid-August, and BW LPG said the sale proceeds are calculated on a 100% ownership basis, although the company owns 52% of BW LPG India.
BW LPG said the transaction reflects its approach of managing its fleet through vessel sales and acquisitions.
Founded in 2005, BW LPG operates a fleet of very large gas carriers (VLGCs) that transport liquefied petroleum gas globally, with its business focused on marine transportation and related shipping services.
BW LPG has continued adjusting its fleet composition through vessel transactions, including investments in newer ships while selling older vessels to capture market value opportunities.
