Avance Gas Holding Ltd Announces Complete Exit from Shipping Market and Record Profits
Avance Gas Holding Ltd (OSE: AGAS), a prominent owner of Very Large Gas Carriers (VLGCs), has announced its complete exit from the shipping market through strategic fleet sales.
The company’s recent financial results indicate a strong performance in the third quarter, with a net profit of $25,8 million, equating to earnings per share of $0,34. Year-to-date profits have reached $232,9 million ($3,04 per share), marking a record for the company’s nine-month performance.
Source: Matej Kastelic
As part of its exit strategy, Avance Gas has completed two significant transactions: the previously announced sale of twelve VLGCs to BW LPG Ltd for $1,050 billion, and a recent agreement to sell four Mid-Sized Gas Carriers (MGCs) to Exmar LPG BV for $282,4 million.
Øystein Kalleklev, CEO of Avance Gas, stated:
“With the sale of the MGC fleet, we have thus completed the sale of our entire fleet this year.”
He noted that the company started the year with 20 ships and, following this transaction, will have zero ships left, expecting to realize a profit of $450 million from these asset sales.
The company, which counts Norwegian shipping billionaire John Fredriksen as its largest shareholder, has already delivered four VLGCs to BW LPG, receiving 6,15 million shares in BW LPG, representing a 4,2 % ownership stake, along with significant cash proceeds. The remaining vessels are set for delivery by the end of the year.
In a move to benefit shareholders, Avance Gas has declared a substantial dividend of $3,50 per share for the third quarter, totaling $268 million. The total dividend for the first nine months of 2024 amounts to $7,00 per share, reaching $536 million.
Looking ahead, the company is preparing for a complete wind-up, planning to distribute its remaining capital and BW LPG shares to shareholders. After the Q3 dividend payment, Avance Gas 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.
Kalleklev concluded, “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.”
