BW LPG expects net book gain of $37 million from sale of “BW Mistral”
Key Facts
BW LPG announced on November 13, 2026, the sale of the gas carrier “BW Mistral,” expecting the deal to generate a net book gain of about $37 million and net cash proceeds of about $104 million. The company said the proceeds represent the net cash expected from the sale, while Chief Executive Christian Sørensen described the deal value as exceeding $100 million. The announcement reflects the company’s ability to realize the vessel’s value in the secondhand market, after the carrier contributed to earnings since its acquisition. “BW Mistral” will continue operating in the spot market and is due to be delivered to the buyer by mid-January 2027. BW LPG shares closed at $22.09 on November 12, the day before the official announcement.
Sørensen said “BW Mistral” had made a significant contribution to earnings since the company acquired it, benefiting from a strong freight market. He added that the sale, which exceeds $100 million, allows the vessel’s value to be crystallized and reflects what he described as disciplined asset management. The chief executive linked the deal to efforts to seize attractive asset opportunities that create value for shareholders. This explanation puts the company’s focus on the returns generated by the carrier during its operating period alongside the proceeds expected from the sale. The announcement did not disclose a separate gross price for the vessel, while setting expected net cash proceeds at about $104 million.
“BW Mistral” was among the Avance Gas fleet vessels transferred to BW LPG under a $1.05 billion fleet sale. Built in 2015, the carrier was the ninth vessel delivered to BW LPG under that deal, with its delivery announced on December 10, 2024. Its current sale puts an asset from that group into a new ownership cycle, after BW LPG said the vessel had contributed clearly to earnings. The deal comes as the company described the freight market in the first quarter of 2026 as strong. In that quarter, it recorded income of $55,500 per available day, with fleet utilization at 92%, and net profit after tax of $187 million.
BW LPG said disruption to liquefied petroleum gas flows from the Middle East in the first quarter of 2026 drove buyers to turn to the United States to replace lost volumes. It added that vessel availability in the U.S. Gulf contracted rapidly, pushing spot freight rates sharply higher. These conditions provide context for Sørensen’s statement that the vessel benefited from a strong freight market and contributed to earnings since its acquisition. The carrier is currently continuing to operate in the spot market until delivery, keeping it within the company’s activity during the remaining period before its transfer to the buyer. The delivery schedule sets mid-January 2027 as the latest date for the vessel’s transfer.
In an earlier update for the third quarter of 2026, the company said its Product Services segment recorded a total trading result of $164 million, including $146 million realized and $18 million from a positive unrealized mark-to-market movement. BW LPG is scheduled to publish its third-quarter financial report on November 24, 2026, at around 07:00 Central European Time. The results date comes days after the announcement of the “BW Mistral” sale and will provide the latest financial context for the company’s performance in that quarter. The trading result figures published by the company relate to Product Services in its earlier update and comprise realized and unrealized components. The current deal remains tied to the company’s expectations for the book gain and net cash, and to the vessel’s scheduled delivery date.