Singapore LPG carrier owner BW Epic Kosan has revealed a rise in earnings in what is likely to be its final results statement to the Oslo Stock Exchange.
The company is being taken private in a takeover deal involving shareholders including J Lauritzen and Nicholas Lykiardopulo, with the backing of major investor BW Group.
BW Epic issued a short trading update on Monday, the day the offer was launched.
It does not intend to release the full results that were scheduled for 27 November.
Net profit rose to $11.8m from $9m a year ago, giving earnings so far in 2023 of $35.2m.
Revenue was $69.2m and $212.2m in the year to date.
The owner managed daily time charter equivalent earnings of $13,068, slightly down from the second three months but up from $11,600 last year.
BW Epic has cash of $89m available.
The company said the market delivered the usual weaker seasonality over the third quarter, but the larger average fleet size combined with improved underlying fundamentals and cover in place continues to deliver stronger year-on-year performance.
LPG demand to remain firm
“Fundamentals remain sound although we see headwinds from the threat of recession in key markets and high-interest rates, with uncertainty on the pace of China’s economic recovery and ongoing geopolitical conflicts,” BW Epic added.
It sees demand for LPG remaining firm over the winter months.
“We will continue to fine-tune our fleet composition to deliver profitable growth and maximise returns,” the company said.
J Lauritzen, Lykiardopulo and others have formed a new company called Web Holding to launch an offer valuing the BW Group-controlled operation at $349m.
Shareholders will be paid NOK 24 ($2.23) per share, a premium of 13.2% to the closing price on 6 October, when the deal was announced.
But investors can take payment in Web Holding shares instead. These will not be listed.
BW Group has opted to roll its 49.8% stake into Web Holding, but Norwegian chemical tanker Odfjell is offloading its 4.4% slice for cash.
Danish bulker player and investor J Lauritzen and Greek shipowner Lykiardopulo have made available NOK 353.3m as a shareholder loan to fund the deal.
BW Epic controls 62 gas ships with a market capitalisation of NOK 3.38bn.
Web Holding has share pledges amounting to 95.1% of BW Epic.
The offer ends on 20 November.
