APRIL 10, 2015 — BW LPG Limited (OSE:BWLPG) reports that it has today entered into shipbuilding contracts for four Very Large Gas Carrier (VLGC) newbuildings with Daewoo Shipbuilding and Marine Engineering (DSME).
BW LPG is taking slots previously reserved by an undisclosed existing DSME customer and the vessels will be delivered from the shipyard in the third and fourth quarters of 2016.
The delivered cost of these vessels, including interest and other costs, is likely to be approximately $290 million. BW LPG says the initial payments are to be met from free cash and its revolving credit facility.
"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," said BW LPG's CEO, Nicholas Gleeson. "These contracts now provide us an opportunity to grow or renew our VLGC fleet in the coming years, without adding further to the newbuilding fleet on order."
Andrew Hoare, BW LPG's Chief Customer Officer (CCO), said: "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."