The LPG carrier finished the third quarter with a stronger result than in the same period last year, though the Oslo-listed gas carrier still suffered a deficit. Rising rates in the fourth quarter bode well for the market.
The market for Very Large Gas Carriers is currently around the OPEX level for carriers and it is doubtful if the vessels will ever return to the record levels of 2014 and 2015, says Martin Ackermann, CEO of BW LPG, to ShippingWatch. "A cautious guess is that we'll see improvement in 2018."
Gas carrier BW LPG will increase its presence in India with a new joint venture. The partnership provides growth opportunities and a stronger foundation in one of the world's biggest LPG markets, says CEO.
DHT Holding has completed its acquisition of BW Group's fleet of nine VLCCs together with contracts on two VLCCs. "Our fleet has been expanded by 50 percent at what we think is an opportune time in the cycle," says management.
The LPG market is facing a period of slower growth ahead of 2019, a period in which China will replace Japan and South Korea as the main driving force in the market, notes DVB Research in a new analysis.
Gas carrier BW LPG has secured a stake of 92.71 percent in Aurora LPG following an offer period. "We remain confident that the combination of BW LPG and Aurora LPG will create a stronger player in the challenging environment in the LPG shipping industry," says CEO Martin Ackermann.
After meetings with the board of Aurora, the world's largest owner of gas vessels, BW LPG, has raised its takeover offer for Aurora and has now secured support from shareholders representing more than 52 percent of the share capital.
The door remains wide open to the executive office at Avance Gas if industry peers are looking for collaboration partners, CEO Christian Andersen tells ShippingWatch. He explains that the gas carrier is still looking for acquisitions even though BW LPG has made a bid for Aurora LPG.
Norwegian gas carrier Aurora LPG has secured a new credit facility of USD 21 million, but the carrier's management withholds the name of the creditor and the conditions of the loan. Analyst firm Pareto Securities is puzzled and wonders who this "mysterious lender" is.
Norwegian gas carrier Aurora LPG took a hit from the low rates in the first half of 2016, but management points to signs that the crisis is temporary in nature and that rates could rebound to sustainable levels already this year.
The fact that rates are sliding even though the vessels have plenty to do on the global LPG market go against every shipping theory out there, says Christian Andersen, CEO of Avance Gas. The company is ready to partake in consolidation, but the question is whether BW LPG will get there first?
The LPG vessels have entered a new phase which is in effect an elimination contest among the major players. Once the shipping industry's safest bet, plummeting rates and overcapacity have now altered the scenario completely, and only one of the major players looks set to outperform the rest.