Avance Gas sells sixth dual fuel VLGC newbuilding for $120m

Oslo-listed very large gas carriers (VLGCs) specialist Avance Gas has sold a very large gas carrier (VLGC) newbuilding for $120m.

The sale was confirmed during the vessel’s delivery from Hanwha Ocean yard in South Korea.

The very large gas carrier (VLGC), with the intended name Avance Pollux, was sold for an agreed price of $120m less broker commission.

This transaction is set to generate substantial financial gains for the company, including a book gain and cash release of $36m and $62m, which will be recorded in the second quarter results.

The company is one of the world’s leading owners and operators of VLGCs and owns sixteen LPG ships consisting of twelve modern VLGCs including four dual fuel LPG VLGCs and four dual fuel MGCs, scheduled for delivery in 2025 and 2026.

Avance Gas chief executive Øystein Kalleklev detailed the company’s recent activities, stating, “During approximately the last three years we have sold all our five 2008 and 2009 built VLGCs as well as our two dual fuel VLGCs for delivery this year.”

Kalleklev explained that the company has received gross proceeds from these vessel sales of $509m with associated book gains of $139m and cash release of $257m respectively.

Following these transactions, Avance Gas today has a uniform fleet, as the chief claims, consisting of eight 2015 eco-VLGCs and four modern dual fuel VLGCs.

Mr Kalleklev said that in addition, Avance Gas, has four dual fuel medium sized gas carrier newbuilds equipped to carry both LPG and full ammonia cargo set for delivery in 2025 and 2026.