Chemical tanker, Oil tanker. Photo: By Matej Kastelic / Shutterstock
Avance Gas Holding Ltd (OSE: AGAS), one of the leading owners of Very Large Gas Carriers (VLGCs), has announced its complete exit from the shipping market through strategic fleet sales.
The company’s latest financial results reveal a strong third-quarter performance with a net profit of $25.8 million, translating to earnings per share of $0.34. Year-to-date profits have reached $232.9 million ($3.04 per share), setting a new record for the company’s nine-month performance.
The exit strategy includes two major transactions: the previously announced sale of twelve Very Large Gas Carriers (VLGCs) to BW LPG Ltd for $1.050 billion, and a recent agreement with Exmar LPG BV to sell four Mid-Sized Gas Carriers (MGCs) for $282.4 million.
“With the sale of the MGC fleet, we have thus completed the sale of our entire fleet this year,” said Øystein Kalleklev, CEO of Avance Gas. “We started the year with 20 ships and newbuildings, and following this transaction our fleet will thus consist of zero ships… we expect to book a cool $450 million profit from these asset sales.”
The company, whose largest shareholder is Norwegian shipping billionaire John Fredriksen, has already delivered four VLGCs to BW LPG, receiving 6.15 million BW LPG shares, representing a 4.2% ownership stake, along with significant cash proceeds. The remaining vessels are scheduled for delivery by year-end.
In a move that benefits shareholders, Avance Gas has declared a substantial dividend of $3.50 per share for the third quarter, amounting to $268 million. The total dividend for the first nine months of 2024 reaches $7.00 per share, totaling $536 million.
Looking ahead, the company is preparing for a complete wind-up, with plans to distribute its remaining capital and BW LPG shares to shareholders. Following the Q3 dividend payment, the company expects to maintain a pro-forma cash balance of $264 million and hold 19.3 million shares in BW LPG, currently valued at approximately $250 million.
“We want to thank everyone for this fantastic journey, and we look forward to returning the remaining capital to our shareholders once the transactions are concluded,” added Kalleklev.
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