Avance Gas Holding Ltd Is Selling a 2009-Built Vessel and a New Time Charter
Avance Gas Holding Ltd. announced that it has signed an agreement to sell the 2009-built VLGC Promise with a Time-Charter (TC) attached for a total cash consideration of $37,000,000 USD. Pampero will take over the coverage of promises during the remaining duration of their contract.
Given the expected share price and initial demand, it is estimated that the sale of Promise will generate approximately $200 million in net proceeds, equating to a book profit of $75 million.
This VLGC is the last 2008-9-built vessel SOLD during 2022 and has an estimated net sale proceeds of approximately 66.8 million US dollars. Three vessels have been sold in total, but only two were delivered to their buyers.
The company seems poised to withstand any short or medium-term market volatility, while returning value to shareholders. The transactions have also reduced the average age of the fleet and improved fuel efficiency and emissions at the same time.