BW LPG, headed by CEO Martin Ackermann, was considering picking up Epic Gas for itself. But it wound up being owner BW Group and Chairman Andreas Sohmen-Pao who after a few weeks of negotiations settled a deal. ShippingWatch has spoken to BW LPG and Epic Gas about the perspectives.
BW Group will acquire at least 51 percent of the shares in Epic Gas, which controls a fleet of 39 LPG ships. As such, BW buys up in the sector following last year's failed attempt to take over Dorian LPG.
Epic Gas' bottom line was negative in 2018, but there are signs of improvement towards the end of the year for the gas shipping company, which booked a slight profit in the fourth quarter and sees signs of a strengthening LPG market.
Singapore-based Epic Gas has secured a USD 90 million refinancing deal with three banks in order to fund 14 LPG vessels. The proceeds from the new loan agreement have been used to repay debt on existing loans.
Epic Gas bagged an improved result in the second quarter this year, but the carrier continues to lose money. There are positive signs in the LPG market. However, there is still too much tonnage, the carrier writes.
LPG carrier Epic Gas came out of the year's first quarter with a smaller deficit in a market that is still struggling with low rates and overcapacity. Larger ships and several scrapping candidates are good news, says the quarterly report.
LPG-rederiet Epic Gas kom ud af årets første kvartal med et mindre underskud i et marked, der stadig kæmper med lave rater og overkapacitet. Større skibe og flere skrotningskandidater er godt nyt, hedder det i regnskabet.
In spite of overcapacity and low rates in the LPG market, the biggest operator in the segment - Epic Gas - projects that coming newbuildings will form a basis for a positive bottom line toward the end of this year, the carrier's CFO tells ShippingWatch after last week's deficit for 2015.
Rates in the LPG market were "bouncing along the bottom" in 2015, especially due to a record number of newbuildings, weak demand and sliding commodity prices. But Epic Gas delivered an improved revenue and reduced deficit, driven mainly by a focus on larger vessels.
Singapores centrale beliggenhed i Sydøstasien fungerer som en buffer over for den kinesiske nedtur, fortæller Singapore Shipping Association i et interview med ShippingWatch. Organisationen ser i stedet internethandel som fremtidens marked for shippingindustrien.
Epic Gas har de senere år opkøbt konkurrenter i et skrantende gasmarked. "Men der er stadig flere muligheder for konsolidering," siger gasselskabets CEO i et interview med ShippingWatch i Singapore. Flere danske konkurrenter synes at ligge lige for.
In recent years, Epic Gas has doubled its fleet in a market otherwise characterized by extremely low freight rates and an abundance of ships. But Epic Gas is betting on the large vessels because that is where money can be made, says CEO Charles Maltby to ShippingWatch.
Epic Gas har de senere år fordoblet sin flåde i et marked, der ellers er præget af yderst lave fragtrater og alt for mange skibe. Men Epic Gas satser på de store skibe, for det er der, der er penge at tjene, fortæller CEO Charles Maltby til ShippingWatch.