Image source: © 2025 Krish Capital Pty.Ltd

Highlights

  • Sale of 2008-built BW Lord expected to generate US$25 million net book gain
  • Net cash proceeds from transaction anticipated to reach US$61 million by 2025
  • Recent fleet renewal includes 2015-built BW Chinook and BW Pampero vessels

BW LPG Limited (NYSE:BWLP) has disclosed that its 52%-owned subsidiary, BW LPG India, has signed an agreement to sell the 2008-built BW Lord, one of its Very Large Gas Carriers (VLGCs). The sale is projected to deliver a net book gain of approximately US$25 million and provide net cash proceeds of US$61 million. Delivery of the vessel to the buyer is scheduled before the end of 2025, which will allow BW LPG India to continue earning freight income from the vessel until handover.

The company stated that the decision to divest the BW Lord aligns with its ongoing efforts to modernize its fleet and optimize asset utilization. This transaction follows BW LPG India’s acquisition of two 2015-built VLGCs, BW Chinook and BW Pampero, which are expected to improve the fleet’s fuel efficiency and trading flexibility. With this latest move, BW LPG India continues to maintain a total of eight VLGCs in operation, collectively transporting about 20% of India’s LPG imports.

Management highlighted that the deal not only unlocks capital but also enhances the company’s ability to maintain a balanced mix of asset age and operational efficiency. “This transaction supports our strategy to refresh the fleet while generating cash returns and sustaining earnings from existing assets,” the company noted in its announcement.

Market observers have pointed out that the timing of the sale is significant, as VLGC asset values remain elevated due to sustained global LPG demand and limited newbuilding deliveries. The transaction could further strengthen BW LPG India’s liquidity position ahead of any future fleet renewal initiatives or potential debt reduction plans.