BW LPG has sold one of its older VLGCs with proceeds from the deal set to be reinvested in its own stock.
Oslo-listed BW LPG has sold the 78,000-cbm BW Denise (built 2001), chief executive Martin Ackermann confirms.
The VLGC has been renamed Rubra and is now trading in the fleet of Pacific Carriers, according to data from Clarksons and VesselsValue.
Some sources have flagged the price at $24m to $25m with the ship said to be destined for a contract with Indonesian oil and gas company Pertamina.
Others guide that the vessel changed hands for in excess of $30m.
Ackermann declined to comment on the price but said it made sense to divest the ship given it was 17 years of age.
He explained BW LPG has been regularly investing in its own stock during the past couple of weeks.
The arbitrage between the vessel sale price and the share price meant it was attractive to invest the proceeds in further buybacks, he added.
Shares in BW LPG were changing hands at NOK 29.95 each in Oslo this morning, down 3.7% in early trading. The share are down 22% in the year to date.
The Rubra has joined Pacific Carriers' Indonesia-based PT Newships LPG subsidiary, which is listed with three other VLGCs, all built before 2000.
Efforts to reach Pacific Carriers for comment on the transaction were not immediately successful.
The ship had been one of the oldest ships in the fleet of Singapore-headquartered BW LPG, which sold the 57,000-cbm Havis (built 1992) for demolition earlier this month.
