BW LPG sells BW Mistral for $104 million to lock in asset gains

BW LPG is extracting a $37 million profit from its recent Avance Gas acquisition by selling the BW Mistral for $104 million while keeping the ship’s spot market earnings for another two years.

BW LPG confirmed the sale of the 2015-built BW Mistral, a vessel it added to its fleet during the 2024 Avance Gas transaction. The sale price will result in net cash proceeds of around $104 million and a net book gain of approximately $37 million.

The vessel currently trades in the spot market. BW LPG will continue to operate the ship and generate revenue until it delivers the asset to the buyer, which is scheduled for no later than mid-January 2027.

CEO Kristian Sørensen said the vessel has contributed to earnings since its acquisition, aided by a strong freight market. He stated the sale allows the company to realize returns from the second-hand market as part of a strategy to pursue asset-plays and create shareholder value.

Why it matters

This deal is a textbook asset play. By selling the vessel now but delaying delivery until 2027, BW LPG secures a high price in a strong second-hand market while continuing to collect spot market revenue. The company is effectively de-risking the asset’s future value without losing its current earning power.

The $37 million net book gain validates the pricing of the 2024 Avance Gas transaction. It shows that BW LPG acquired these hulls at a level that allows for immediate, profitable divestment as market appetites shift.

For the wider market, the price tag of over $100 million for a nine-year-old vessel sets a high benchmark for mid-age tonnage. The buyer is paying a premium today for a ship they will not operate for up to two years, signaling a bet that LPG freight rates will hold their strength through the end of the decade.

What to watch

The final handover of the vessel is scheduled for mid-January 2027, marking the point when BW LPG exits the asset entirely.

Source: Shipping Herald