OSLO: Avance Gas Holding Ltd has announced the sale of its two remaining dual fuel newbuildings for $240 million, generating a profit of about $73 million and a cash release of $160 million. The buyer will take delivery of the ships from the yard in 2024. The ships are capable of loading and running on ammonia as fuel.

The company has also agreed to swap the lease of the two newbuildings with the financier to two sister ships that are currently financed under a bank loan. This will further increase the cash by $41 million and extend the maturity of the financing from 2027 to 2034.

The CEO of Avance Gas said that the sale highlights the positive outlook for the VLGC market and that the company will evaluate returning a substantial part of the cash proceeds to its shareholders, possibly by reducing its paid-in capital.