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Avance Gas agrees $60 million sale of 2008 built VLGC Iris Glory

Written by Customer Service on . Posted in Public Companies.

Hamilton, Bermuda, July 6, 2023

Avance Gas Holding Ltd. («Avance Gas» or «Company») (OSE: AGAS) is today pleased to announce that Avance Gas has entered into an agreement 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 under the agreement she will be delivered to the new owner following the completion of the current TCP. The delivery to new owners is expected to take place between September 2023 and January 2024. The sale price is less ordinary broker commission of one percent. Hence, the Company expect to record a book gain of approximately $22 million once the transaction is carried out. 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 is 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.”

For further queries, please contact:
Randi Navdal Bekkelund, CFO
Tel: +47 23 11 40 00

About Avance Gas: Avance Gas operates in the global market for transportation of liquefied petroleum gas (LPG). The Company is one of the world’s leading owners and operators of very large gas carriers (VLGCs) and operates a fleet of fourteen ships including two dual fuel LPG newbuildings for delivery early 2024 and two Medium-Sized LPG/Ammonia Carriers for delivery end 2025 and early 2026. For more information about Avance Gas, please visit www.avancegas.com.

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