BW LPG has locked in a deal to offload its 2015-built vessel, BW Mistral, for roughly $104 million in net cash, a transaction expected to deliver a net book gain near $37 million.
The sale capitalizes on a hot secondhand vessel market. BW LPG acquired the ship through its 2024 Avance Gas transaction, and the vessel now operates in the spot market. That timing matters: the company continues earning revenue from BW Mistral until mid-January 2027, when delivery to the buyer is scheduled.
The deal lets BW LPG monetize the asset while retaining income from it for more than a year. CEO Kristian Sørensen said the sale allows the company to realize returns from the strength of the secondhand vessel market. He noted that BW Mistral has contributed significantly to earnings since the acquisition.
The transaction underscores how shipping companies are moving fast to sell vessels while prices remain elevated. A $37 million book gain on a single ship signals robust demand for modern tonnage.
For BW LPG, the sale locks in profit and frees capital. The company has not disclosed the buyer or specific use of proceeds, but the net cash injection of approximately $104 million gives it flexibility. Delivery by mid-January 2027 means the vessel stays on BW LPG’s books and in its revenue stream for several more quarters.
The gain will likely show up in financial results once the sale closes. Meanwhile, the spot market operation of BW Mistral means fluctuating daily rates could add even more income before the handover.
That extended timeline also reduces disruption. BW LPG can plan fleet adjustments without an immediate capacity gap. It also keeps the vessel productive during a period when spot rates may remain favorable.
As a result, the sale reflects both strategic asset rotation and patient execution. BW LPG secured a strong price, retained earnings from the ship, and positioned itself to book a sizable gain down the line.
