Avance Gas Holding Ltd is “as liquid as the seven seas” after selling the remainder of its fleet, its chief executive said as he revealed the company’s intention to wind up operations.

The Bermudian-based company, which has been engaged in the transportation of liquefied petroleum gas, entered into a heads of agreement this month with Exmar LPG BV to sell its four mid-sized gas carriers newbuilding contracts through a novation.

The price of the newbuildings under this HoA has been agreed to be $282.4 million, or $70.6 million per vessel. The transaction is subject to the issuance of new refund guarantees to Exmar, as well as the completion of customary documentation and closing procedures.

The four ships were due to be delivered in 2025 and 2026.

The company sold its fleet of 12 very large gas carriers in August to BW LPG Ltd, the liquefied petroleum gas shipper that was formerly based in Bermuda but is now domiciled in Singapore, in a deal worth $1.05 billion.

Oystein Kalleklev, chief executive of Avance Gas Holding Ltd, said: “As a result of the sale [to Exmar], we expect to generate a book profit of approx. $34 million and associated cash release of $84 million as we will receive refund of our already paid yard instalments of $50 million by Exmar as part of the agreement.”

He added: “With the sale of the MGC fleet, we have thus completed the sale of our entire fleet this year. We started the year with 20 ships and newbuildings, and following this transaction our fleet will thus consist of zero ships.”

Mr Kalleklev said the company expects to book a $450 million profit from these asset sales.

He said: “Following these transactions, Avance Gas is as liquid as the seven seas, and we have therefore decided to prepay some of these gains.

“Hence, we are therefore declaring a quarterly dividend per share of $3.50 equal to $268 million. This amount is in line with the dividends paid for the first and second quarter this year, which thus brings the dividend for the three first quarters to $7 per share or $536 million, with more to come for the final fourth quarter.

“As we are not planning to invest in new ships, we are now preparing a wind-up process of Avance Gas to ensure we can return the remaining capital to our shareholders in a quick and cost-efficient manner.”