Avance Gas banks $27m on sale of ageing VLGC

Oslo-listed very large gas carrier (VLGC) specialist Avance Gas has offloaded its 2008-built Venus Glory for $66m in a deal that is expected to generate a gain of about $27m once the ship changes hands.

The Øystein Kalleklev-led owner will deliver the Daewoo-built 83,700 cu m ship to an unnamed buyer in February or March this year. The net cash proceeds after deducting repayment of bank loan is expected to be about $40m, the company said.

The vessel, which Avance marketed for sale after completing its two-year charter with IOC at the end of the fourth quarter of 2023, is currently trading on the spot market.

John Fredriksen-controlled Avance Gag has during the last two years, sold all five 2008 and 2009 built ships while taking delivery of four new dual-fuel VLGCs. It currently owns twenty LPG ships consisting of fourteen VLGCs on water, two dual-fuel LPG VLGCs for delivery and resale in 2024 and four dual-fuel MGCs for delivery in 2025 and 2026.

“In the first quarter of 2024, Avance Gas is expected to book profits of approximately $85m from the sale of the three ships Iris Glory, Venus Glory and the fifth dual fuel VLGC newbuilding which was intended to be named Avance Castor. In the second quarter we expect to book a gain of approximately $36m from the sale of the sixth dual fuel VLGC newbuilding which was intended to be named Avance Pollux,” said Kalleklev.

“In total, we will thus book gains from sale of ships of approximately $121m in the first and second quarter. The net cash proceeds from these sales are expected to be approximately $185m, or $225m when taking into account the swap of the $135m sale-and-leaseback financing for the fifth and sixth dual fuel VLGC newbuilding to Avance Polaris and Avance Capella,” Avance Gag chief executive added.

Yangzijiang Shipbuilding

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