Singapore-headquartered LPG specialist Petredec has formed a new 27-ship VLGC and trading company which it is preparing to list later in 2022.
The company announced it has set up Petredec Global and said it is “exploring the possibilities of a public listing”.
Sources said the plan is for Petredec Global to be listed on the Oslo exchange in September.
Jonathan Fancher, who has worked for Petredec since 2012, has been appointed chief executive of the new company.
But it would appear that Petredec's handysize LPG fleet will remain within the parent group and outside the planned listed entity.
Petredec, which was formed in 1980, said its new arm would be the “world’s first fully-integrated VLGC shipping and trading company listed on a stock exchange”.
It added: “The company is uniquely positioned to benefit from a call on US shale, growing US production, increasing global demand for LPG and a widening LPG arbitrage.”
Petredec Global is being set up with the group’s 27 VLGCs, six of which are LPG dual-fuelled vessels.
Parent Petredec claimed: “Petredec Global is the second largest VLGC owner, with a significantly higher ECO, scrubber and dual fuel penetration and the lowest fleet age among its peers.
Group chief executive Giles Fearn expressed pride in the growth of the business over the last decade. But he said: “… Petredec is not a company that stands still and looks back.”
“We remain heavily focused on future asset growth within our shipping and onshore divisions,” Fearn said.
“The group’s strategic goal to expand our footprint in the LPG value chain through terminals and distribution in emerging markets such as India, South and East Africa, and the balance of the Indian Ocean basin can only benefit the Petredec global platform and the market as a whole through increased demand for LPG.”
Newly appointed CEO Fancher said: “With 90% of our fleet positioned for premium earnings due to ECO, scrubber & dual fuel technology, combined with consistent earnings from Trading, Petredec Global’s fully integrated model is well-poised to continue to deliver premium profits to our shareholders.
“This unique offering along with a highly attractive market outlook, the call on US shale, and improving arbitrage will set Petredec Global up to generate premium cash flows and return attractive dividends.”
DNB Markets and SEB Corporate Finance have been engaged as joint global coordinators and Fearnley Securities together with Pareto Securities as joint bookrunners for what Petredec described as “the contemplated IPO process”.
