BW LPG unit sells 2007-built gas carrier for $64m
The sale is pitched against firm second-hand values for older tonnage
A subsidiary of BW LPG has agreed to sell the 2007-built gas carrier BW Elm for continued trading, in a deal the company expects to generate a net book gain of roughly $36m on a full basis. The transaction is anticipated to yield net cash proceeds of around $64m, with delivery to the buyer scheduled by the middle of August.
The chief executive said the sale allowed the company to capitalise on strong second-hand values for older vessels, noting that the price was equivalent to a newbuilding level of about $248m. He added that while it is divesting older ships, the company is also investing in new tonnage.
BW LPG manages a fleet of about 50 very large gas carriers, including more than 20 vessels powered by dual-fuel propulsion technology, and holds a 52% stake in the Indian subsidiary carrying out the sale.
