BW LPG subsidiary BW LPG India agreed to sell the 2007-built gas carrier BW Elm for continued trading, the company announced on July 10.
The sale of the vessel is expected to generate a net book gain of approximately $36 million on a 100 per cent basis.
According to the company, the transaction is anticipated to yield net cash proceeds of around $64 million, with delivery to the buyer scheduled by mid-August.
Chief Executive Officer Kristian Sørensen noted that the transaction allows the company to continue, "capitalising on strong second-hand values for older vessels," by divesting the vessel.
He explained that the sale of the 2007-built vessel was executed at a level equivalent to a newbuilding price of about $248 million. While divesting older ships, the company is also investing in new tonnage, he added.
BW LPG manages a fleet of approximately 50 very large gas carriers, including over 20 vessels powered by LPG dual-fuel propulsion technology. It owns 52 per cent of BW LPG India.