Small-scale Avenir LNG plans to divest its terminal interests and refocus on LNG shipping and trading while pursuing an Oslo stock listing and boosting its fleet.
The company, a joint venture between Stolt-Nielsen, Golar LNG and Hoegh Evi, said on Tuesday that it aims to explore raising capital along with a potential listing on the Euronext Growth Oslo this year.
Avenir, which is registered on Euronext NOTC, said it plans to raise about $50m in new equity, fully underwritten by Stolt-Nielsen, to finance the two 20,000-cbm LNG bunker and supply newbuildings it announced in April.
The company is also considering increasing the equity raise to support further fleet expansion.
It has signed letters of intent for two additional optional 20,000-cbm vessels at Nantong CIMC Sinopacific Offshore & Engineering Co — a subsidiary of CIMC Enric.
The additional slots, if confirmed, would boost Avenir’s fleet of small-scale LNG bunker and supply vessels to nine.
“It is the intention that the Euronext Growth Oslo listing and new equity raise will expand the shareholder base and increase the free float of Avenir’s shares,” it said.
In pursuit of and prior to the listing, Avenir is planning to sell off its ownership of the Higas LNG storage terminal in Sardinia, Italy, to a new vehicle controlled by its three majority shareholders.
This will entail a settlement of an existing shareholder loan and the transfer of a portion of the Avenir shares held by the shareholders back to Avenir.
The transaction is intended to be structured so that Avenir’s net asset value per share will remain at about $1.10 as valued by independent brokers, the company said.
Avenir said that after selling Higas it will operate as a pure-play small-scale LNG shipping and trading company.
It said it is poised to capitalise on robust market drivers, including favourable regulatory developments, constrained supply and a substantial increase in the LNG-fuelled fleet, which are expected to boost marine LNG demand significantly beyond 15m tonnes annually over the next five years.
Avenir LNG managing director Jonathan Quinn said: “We are very pleased to announce this next chapter in Avenir’s history aimed at accelerating the company’s growth ambitions.
“With the LNG-fuelled fleet set to grow from around 400 vessels in 2023 to over 1,000 vessels by 2028, demand for bunker vessels is set for strong growth over the next decade.
“This is a timely opportunity to refocus and consolidate the company’s strategy into shipping and trading by divesting from Higas.
“This transaction will enhance our position as a leading pure-play owner of LNG bunker vessels and improve operational efficiency, paving the way for a more streamlined and competitive company, which has a strategy to leverage favourable market conditions by growing our fleet.”
Clarksons Securities and DNB Markets are financial advisers for the listing.
