Singapore's BW LPG is beefing up its Indian operations as part of the sale of two VLGCs.
The BW Group spin-off said it has agreed to offload the 83,270-cbm BW Confidence (built 2006) and 82,260-cbm BW Cedar (built 2007).
The BW Confidence deal is expected to generate $36m in liquidity and a net book gain of $4m. The new owner will take delivery in the first quarter.
The BW Cedar will add another $3m of profit.
VesselsValue rates the BW Confidence as worth $41m. It estimates that the BW Cedar is valued at $46m.
Oslo-listed BW LPG has not named buyers, but gave a strong hint by revealing that the BW Cedar will join three other VLGCs operated by its joint venture in India, BW Global United LPG India.
An interesting market
This suggests the vessel has been acquired outright either by the joint venture or BW LPG's partner, Global United Shipping India.
BW LPG told TradeWinds this month that India is a market of great interest, as demand increases, and it was considering a further expansion of the venture.
All four vessels are now on time-charter contracts to major Indian oil companies to supply the country with LPG.
BW LPG chief executive Anders Onarheim said: "Committing both vessels for sale is aligned with our strategy to capture growth opportunities.
"With a strong VLGC freight market, we secured an attractive price for BW Confidence. With BW Cedar, we further strengthen BW LPG’s strong base in India."
He added that India is the world's second largest LPG import market, and the joint venture is now the largest VLGC operator in India.
The sales will leave BW LPG with a fleet of 45 modern VLGCs.
The company's net profit was cut to $25m in the third quarter as rates weakened, down from $117m in 2019.
But the market has since boomed due mainly to discharge delays and longer-than-usual transit times in the Panama Canal.
