Singapore-headquartered shipowner BW LPG Limited said its 52%-owned subsidiary, BW LPG India, sealed a deal to sell the 2007-built BW Elm for continued trading.
On a 100% basis, the sale is expected to generate a net book gain of around $36m, according to BW LPG, and net cash proceeds of approximately $64m.
The vessel is scheduled for delivery to its new owner by mid-August. The shipowner didn’t disclose details about the name of the buyer or the sale price.
However, the company’s chief executive said the 2007-built ship had been sold at a level equivalent to a newbuilding price of about $248m.
BW LPG, the owner and operator of LPG vessels, with a fleet of about 50 VLGCs, is associated with BW Group, a global energy and maritime company involved in shipping, deepwater oil and gas production, renewable energy and digital infrastructure. BW controls a fleet of over 400 vessels transporting oil, gas and dry commodities.
Kristian Sørensen, chief executive officer of BW LPG, said: “By selling the BW Elm we continue capitalising on strong second-hand values for older vessels, selling a 2007-built asset at a level equivalent to a newbuilding price of about US$248 million.
“This reflects the strength and agility of our commercial platform and its ability to create value through opportunistic asset play as we are divesting older ships while investing in new tonnage”.
