The Oslo-and-New York listed shipowner BW LPG Limited clinched a deal to sell one of its ships acquired in the 2024 Avance Gas transaction.

The sale of the 2015-built BW Levant is expected to generate a net book gain of approximately $17m and net cash proceeds of around $38m.

The Singapore-headquartered BW LPG Limited said the vessel is scheduled for delivery to the new owner at the latest by mid-November, enabling the company to continue generating revenue from the asset in a strong freight market.

BW LPG took delivery of the vessel BW Levant from Avance Gas on November 29, 2024, becoming the fifth of the 12 VLGCs delivered to the company. In August 2024, BW LPG Limited entered into agreements to acquire 12 very large gas carriers (VLGCs) from Avance Gas, 2015-built, 2022-built and 2023-built, for a total consideration of US$1,050m.

Kristian Sørensen, chief executive officer of BW LPG, said “This sale demonstrates our disciplined approach to capital allocation, realising a strong return just two years after purchasing the vessel through the Avance Gas transaction. As we continue renewing our fleet, we remain focused on active and opportunistic asset management to generate shareholder value.”

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.

The company’s 52%-owned subsidiary, BW LPG India, sealed a deal recently 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.