| BW LPG buys four VLGC newbuilding contracts |
| BW LPG, the Oslo-listed VLGC owner in the Singapore-based BW Maritime group, has announced it has acquired contracts for four VLGCs to be built at Daewoo Shipbuilding and Marine Engineering (DSME). “Previously reserved [by DSME’s existing client], these vessels are to be delivered in 3Q16 and 4Q16,” the company confirmed in a statement. The delivered cost of these vessels, including interest and other costs, is likely to be approximately USD290 million. “The initial payments under the contracts are to be met from free cash and the revolving credit facility,” BW LPG said. “While the exceptionally high rates of today are not likely to last forever, there are many years of anticipated growth in export volumes in this market, which elicits our desire to enhance our fleet and its capability. “These contracts now provide us an opportunity to grow or renew our VLGC fleet in the coming years, without adding further to the newbuilding fleet on order,” noted CEO Nicholas Gleeson. BW LPG has a fleet of 32 VLGCs that have a combined capacity of 2.64 million cbm. In addition, it has five LGCs with a combined capacity of289,253 cbm. Prior to the deal unveiled today, its newbuilding orderbook also comprised five ships, all of which are VLGCs with a combined capacity of 420,000 cbm. Three of the ships are due for delivery this year, the remaining two in 2016. |