BW LPG announced on October 20 that its 52 per cent-owned subsidiary BW LPG India has agreed to sell the 2008-built very large gas carrier (VLGC) BW Loyalty for continued trading.
BW LPG CEO Kristian Sørensen said the sale price was in the low $80 million range. "Selling the BW Loyalty at a price in the low $80 million demonstrates the strength of the second-hand market and our ability to realise value from our fleet," he said.
The company expects the transaction to generate a disposal gain of about $52 million and net cash proceeds of about $66 million, net of taxes and transaction costs, both on a 100 per cent basis.
The vessel will be handed over to its buyer once her current time charter ends, and no later than December 2026.
BW Loyalty joined BW LPG India in July 2022. She is the third VLGC the subsidiary has agreed to sell this year.
The 2007-built BW Elm was sold in July, and the 2007-built BW Birch followed in August. BW LPG also agreed in July to sell the 2015-built BW Levant.
The group has eight 90,000-cubic-metre dual-fuel VLGCs on order with South Korean shipbuilder HD Hyundai Heavy Industries.
Deliveries are scheduled from the first quarter of 2029 through the second quarter of 2030.