BW LPG Limited is pleased to announce that it has entered into ship building contracts for four Very Large Gas Carrier (VLGC) new buildings with Daewoo Shipbuilding and Marine Engineering (DSME).
Previously reserved [by DSME’s existing client], these vessels are to be delivered in the third and fourth quarters of 2016.
Speaking about these contracts, Nicholas Gleeson, CEO of BW LPG, said, “Whilst the exceptionally high rates of today are not likely to last forever, there are many years of anticipated growth in export volumes in this market, which elicits our desire to enhance our fleet and its capability. These contracts now provide us an opportunity to grow or renew our VLGC fleet in the coming years, without adding further to the new building fleet on order.”
The delivered cost of these vessels, including interest and other costs, is likely to be approximately USD 290 million. The initial payments under the contracts are to be met from free cash and the revolving credit facility.
Andrew Hoare, CCO of BW LPG, further commented, “BW’s relationship with DSME has afforded this opportunity to us when it became available. We continuously strive to deliver the best LPG transportation solutions to our customers and our growing fleet continues to allow us to achieve this objective.