BW LPG expects $52 million vessel sale gain
- BW LPG announced that its 52%-owned subsidiary, BW LPG India, agreed to sell the 2008-built BW Loyalty for continued trading.
- The transaction is expected to generate approximately $52 million in disposal gains and $66 million in net cash proceeds, both calculated on a 100% subsidiary basis.
- BW LPG expects to deliver the vessel to its buyer by December 2026, continuing its efforts to realize value from older vessels while strengthening its Indian subsidiary's finances.
BW LPG (NYSE:BWLP) announced an agreement to sell its 2008-built BW Loyalty vessel, expecting an approximately $52 million disposal gain.
The transaction is expected to generate $66 million in net cash proceeds after taxes and transaction costs, with both figures stated on a 100% subsidiary basis.
“Selling the BW Loyalty at a price in the low US$80 million demonstrates the strength of the second-hand market and our ability to realise value from our fleet,” said BW LPG CEO Kristian Sørensen.
The vessel belongs to BW LPG India, a 52%-owned subsidiary, and is expected to remain under its existing time charter until delivery.
BW LPG expects to complete the vessel's handover by December 2026, supporting fleet portfolio management.
The planned sale follows BW LPG India's earlier agreements to sell the 2007-built BW Elm and BW Birch, each expected to generate approximately $64 million in net proceeds.
BW LPG operates a global fleet of liquefied petroleum gas carriers and combines maritime transportation with trading activities across the LPG supply chain.
