03.01.2024 07:01:05 - dpa-AFX: GNW-Adhoc: Avance Gas Holding Ltd: Avance Gas agrees $66 million sale of 2008-built Venus Glory at estimated $27 million profit
Hamilton, Bermuda.
January 3, 2024
Avance Gas Holding Ltd. («Avance Gas» or «Company») (OSE: AGAS) is today pleased
to announce that it has entered into an agreement to sell the Very Large Gas
Carrier (VLGC), Venus Glory, built 2008, for a gross cash consideration of $66
million. The vessel is currently trading spot after completing her two-year Time
Charter Party (TCP) with IOC at the end of fourth quarter 2023. Delivery of the
ship to new owners, a National Oil Company, is expected to take place in
February or March 2024. The $66 million sale price is less broker commission of
one percent.
Hence, the Company expect to record a book gain of approximately $27 million
once the transaction is carried out. The net cash proceed after deducting
repayment of bank loan is expected to be approximately $40 million. The parties
have signed and executed a Memorandum of Agreement in relation to the sale of
the ships. The sale is therefore only subject to certain closing conditions, in
line with industry standards.
Øystein Kalleklev, CEO of Avance Gas, commented:
«We are pleased to complete our fleet renewal program with the agreement to sell
Venus Glory which we have marketed for sale after completion of her two-year
time charter. With the sale of Venus Glory, we have during the last two years,
sold all our five 2008 and 2009 built ships. At the same time, we have taken
delivery of four new dual fuel VLGCs as well as contracted four dual fuel MGCs
which also can carry ammonia in addition to LPG for delivery in 2025 and 2026.
In the first quarter of 2024, Avance Gas is expected to book profits of
approximately $85 million from the sale of the three ships Iris Glory, Venus
Glory and the fifth dual fuel VLGC newbuilding which was intended to be named
Avance Castor. In the second quarter we expect to book a gain of approximately
$36 million from the sale of the sixth dual fuel VLGC newbuilding which was
intended to be named Avance Pollux. In total, we will thus book gains from sale
of ships of approximately $121 million in the first and second quarter. The net
cash proceeds from these sales are expected to be approximately $185 million, or
$225 million when taking into account the swap of the $135 million sale-and-
leaseback financing for the fifth and sixth dual fuel VLGC newbuilding to Avance
Polaris and Avance Capella.
With these ship sales and the positive outlook for the VLGC freight market,
Avance Gas remain in a very good position to continue to deliver strong returns
and attractive dividends to its shareholders."
For further queries, please contact:
Media contact:
Øystein Kalleklev, CEO
Tel: +47 23 11 40 00
Investor and Analyst contact:
Randi Navdal Bekkelund, CFO
Tel: +47 23 11 40 00
ABOUT AVANCE GAS
Avance Gas operates in the global market for transportation of
liquefied petroleum gas (LPG). The Company is one of the world's leading owners
and operators of very large gas carriers (VLGCs) and owns twenty LPG ships
consisting of fourteen VLGCs on water today, the two dual fuel LPG VLGCs for
delivery and resale in 2024 and four dual fuel MGCs for delivery in 2025 and
2026. For more information about Avance Gas, please visit www.avancegas.com
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act
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