Announcing the record interim results today, Øystein Kalleklev, CEO of Avance Gas, gave investors an idea of ​​what he and his team could do with the rest of the fleet, which is now missing twelve VLGCs following one of the largest vessel transactions this month.

Avance Gas, controlled by John Fredriksen, has agreed to sell its entire fleet of very large gas carriers (VLGCs) to Andreas Sohmen-Pao’s BW LPG in a cash and stock deal worth $1.05 billion announced two weeks ago.

The listed unit of Singapore-based BW Group will take delivery of 12 vessels built between 2015 and 2023, adding to its fleet of 41 VLGCs, while Avance Gas will be left with just four medium-sized gas carriers, scheduled for delivery between the fourth quarter of next year and the end of 2026.

The company is currently determining the best course of action to maximize the value of these assets, Kalleklev told investors.

“Since we contracted the vessels last summer, the newbuilding price for such vessels has increased by about 15%, while delivery dates have been pushed back from 2025/2026 to 2027,” Kalleklev announced, expressing confidence that the newbuilding quarter will generate “attractive” returns, whether chartered on a time basis, sold as a resale or, as a third option under consideration, developing Avance Gas into an MGC/ammonia company by actively cooperating with other owners with similar assets, with the aim of building a company of sufficient scale.

Kalleklev described 2024 as a “transformational year” for Avance Gas and today announced record interim net profit of $207 million.