Exmar and BW Gas agree to swap LPG ships

EXMAR and BW Gas have reached an agreement to swap 2 of EXMAR’s “VLGC’s” ( Very Large Gas Carrier) against the “Midsize” Fleet of BW Gas.  The Vessels involved are:

EXMAR :

• Flanders Liberty – 84,597 CBM – built 2007 BW Hugin – 35,000 CBM – built 2002
• Flanders Loyalty – 84,631CBM – built 2008  BW Helga – 35,058 CBM – built 1994

BW Gas 

• BW Hugin – 35,000 CBM – built 2002
• BW Helga – 35,058 CBM – built 1994
• BW Hedda – 35,058 CBM – built 1993
• BW Sombeke (50%) – 38,000 CBM – built 2006 (which results in Exmar holding 100% ownership)

The settlement will include a cash contribution of USD 35 million payable by BW Gas to EXMAR.   The vessels are scheduled to be delivered to their respective owners between 15th August and 30th September 2011.

The transfer of the VLGC’s goes together with the novation of time-charters to BW Gas, the midsize vessels will remain dedicated to existing North Sea LPG contract commitments to be further performed by EXMAR.

EXMAR has a proven track record in LPG shipping in general and wishes to dedicate its maritime gas expertise to support the future needs of the North Sea based LPG industry in particular. This investment allows EXMAR to reinforce its focus on the “Midsize” LPG/NH3 segment as a core business.

BW Gas is the largest owner and operator of LPG (liquefied petroleum gas) carriers and one of the largest independent owners and operators of LNG (liquefied natural gas) carriers.

This transaction will generate a book loss for EXMAR of about USD 25 million that will be accrued for at 30th June 2011.

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