On August 25, BW LPG announced on its website that its 52%-owned subsidiary, BW LPG India, has signed an agreement to sell the 19-year-old LPG carrier “BW Birch”; the buyer was not disclosed.
Calculated on a 100% interest basis, the transaction is expected to generate a net book gain of approximately $37 million and net cash proceeds of approximately $64 million. The vessel is currently operating under a time charter and is scheduled for delivery to the buyer by mid-November at the latest.
The “BW Birch” was built by South Korea’s HD Hyundai Heavy Industries in 2007 with a cargo capacity of 82,303 cubic meters; the vessel is capable of transporting anhydrous ammonia, butene, propylene, butane, propane, and butane/propane mixtures.
A representative from BW LPG stated: “The value of this transaction is equivalent to the cost of a newbuild—approximately $248 million. This deal is part of the fleet renewal program and follows the sale of the “BW Elm”, announced in July of this year. Selling older vessels allows the company to capitalize on strong valuations in the secondhand market.”
On July 10 of this year, BW LPG India announced the sale of the 2007-built “BW Elm”; the transaction generated a book gain of $36 million and net cash proceeds of $64 million. According to Equasis, the vessel has since been renamed “Sheng Hi Long”, is owned by the Hong Kong-based company Phecda Shipping, and now flies the flag of the Marshall Islands.
In addition to selling older tonnage, BW LPG India also sold the newer, 2015-built “BW Levant” on July 20, without disclosing the buyer’s identity. This transaction resulted in a net book gain of approximately $17 million and net cash proceeds of around $38 million.
The official website states that BW LPG is a leading global owner and operator of LPG carriers, with a fleet currently comprising approximately 50 VLGCs, more than 20 of which are equipped with LPG dual-fuel propulsion systems. The company is a subsidiary of the BW Group, an international shipping enterprise whose operations span shipping, floating infrastructure, deepwater oil and gas production, and new sustainable energy technologies. Founded in 1955, the BW Group currently operates a fleet of over 400 vessels capable of transporting cargoes such as crude oil, liquefied gas, and dry bulk.