Avance Gas sells VLGC Iris Glory for $60 million

OSLO, NORWAY: Avance Gas Holding Ltd. («Avance Gas» or «Company») (OSE: AGAS), a leading provider of liquefied petroleum gas (LPG) transportation services, has announced that it has agreed to sell the Very Large Gas Carrier (VLGC), Iris Glory, built 2008, for a cash consideration of $60 million.

The vessel is currently employed on a two-year Time Charter Party (TCP) and will be delivered to the new owner following the completion of the current TCP. The delivery is expected to take place between September 2023 and January 2024.

The sale price is less ordinary broker commission of one percent, resulting in a book gain of approximately $22 million for Avance Gas once the transaction is completed. The net cash proceeds after repayment of the lease financing is expected to be approximately $25 million.

Øystein Kalleklev, CEO Avance Gas, commented: «We are pleased to continue our fleet renewal program with the agreement to sell Iris Glory once she comes off charter. Last year we sold three 2008/9 built VLGCs and today we are selling the fourth ship of this vintage. This means we only have one VLGC of this vintage left, Venus Glory, which is on Time Charter until end of 2023.

During the same time, we have during 2022 and 2023 taken delivery of four new state-of-the-art dual fuelled VLGCs and we are preparing for delivery of the remaining two dual fuelled VLGCS newbuildings next year. The two VLGCs we have taken delivery of in 2023 are also equipped to run on ammonia as fuel while the two VLGCs for delivery next year will also be able to carry ammonia.

Additionally, we have recently contracted two LPG dual fuelled medium sized gas (MGCs) equipped to carry ammonia as well as LPG. We also have the option to add two additional MGCs under this yard contract at the competitive price of $61.5 million for each ship. The sale of Iris Glory enables us to free up liquidity to continue to pursue fleet renewal and expansion to further improve our carbon footprint and diversify the cargoes which our ships can carry so that we are prepared to meet the stricter decarbonization rules in the near future.”

Avance Gas is a leading provider of LPG transportation services, operating a fleet of 16 modern ships and six newbuildings due for delivery in 2022 and 2023. The Company is headquartered in Bermuda and has offices in Oslo, Singapore and Manila.

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