Sale of 19-year-old BW India LPG carrier nets cash proceeds of US$64M

Capitalising on strong second-hand ship values, a majority-owned subsidiary of BW LPG has struck a deal to sell a 19-year-old LPG carrier for net cash proceeds of approximately US$64M.

BW LPG India, 52%-owned by BW LPG, has agreed to sell the 82,303-m³ BW Birch to an undisclosed buyer for continued trading. South Korea’s Hyundai Heavy Industries built it in 2007, and it can carry anhydrous ammonia, butylenes, propylene, butane, propane, and butane/propane mixtures.

On a 100% basis, the sale of BW Birch will generate a net book gain of approximately US$37M and net cash proceeds of approximately US$64M. The vessel is currently trading under a time charter agreement and will be delivered to the buyer no later than mid-November, according to the Big Board-listed gas carrier owner and operator.

This transaction, at a value equivalent to a newbuilding price of approximately US$248 million and in line with the recently announced sale of BW Elm, reflects the continued execution of our fleet renewal programme and our ability to capitalise on strong second-hand market values,” said BW LPG chief executive, Kristian Sørensen.

In July, BW India struck a similar deal for BW Elm, generating a net book gain of approximately US$36M and net cash proceeds of around US$64M. It has since been renamed Sheng Hi Long and reflagged with the Marshall Islands under the ownership of Hong Kong-based Phecda Shipping, according to Equasis records.