BW LPG India Sells VLGC BW Loyalty for Over USD 80 Million

BW LPG, a shipping company listed in New York and Oslo, announced that its 52%-owned subsidiary, BW LPG India, has signed an agreement to sell the VLGC BW Loyalty, built in 2008 with a capacity of 84,601 cubic meters, which will continue operating under new ownership. The buyer was not disclosed.

On a 100% vessel basis, the transaction was closed at a price in the low USD 80 million range. It is expected to generate a gain of approximately USD 52 million and net cash proceeds of around USD 66 million, after taxes and transaction costs. The vessel will be delivered to the buyer upon completion of its current charter and no later than December 2026. Kristian Sørensen, CEO of BW LPG, stated that the sale demonstrates the strength of the secondhand market and the company's ability to extract value from its fleet, while also strengthening BW LPG India's financial position.

The sale of the BW Loyalty adds to other recent transactions by the Indian subsidiary. In August, BW LPG India agreed to sell the BW Birch, built in 2007, for estimated net proceeds of USD 64 million and a gain of USD 37 million. In July, it had sold another 2007-built VLGC, the BW Elm, which generated around USD 64 million in cash and a book gain of USD 36 million. Including the BW Loyalty, the three announced transactions represent approximately USD 194 million in net cash proceeds and USD 125 million in gains, calculated on a 100% vessel basis, although the latest sale has not yet been completed.

The divestments come as BW LPG advances its largest newbuilding program in years. In May, the company ordered eight 90,000-cubic-meter panamax VLGCs at HD Hyundai Heavy Industries shipyard for approximately USD 940 million, with deliveries scheduled between 2029 and 2030. Subsequently, in September, the group raised USD 300 million through a convertible bond issuance, the proceeds of which will partly be used to finance that newbuilding program.