Avance Gas Holding Ltd, the Bermudian-based company engaged in the transportation of liquefied petroleum gas, has issued its last annual earnings release as it moves towards liquidation.

The company reported a fourth-quarter 2024 net profit of $210.2 million and a net profit for the year of $443 million.

Those figures compare with a net profit of $25.8 million in the third quarter of 2024, and a net profit of $163.6 million for the full year 2023.

On December 31, the sale of 12 very large gas carriers to BW LPG Ltd was successfully completed. The settlement was structured as approximately 70 per cent cash and 30 per cent shares in BW LPG.

Avance Gas is now the second-largest shareholder in BW LPG, holding a 12.7 per cent stake. The total recognised gain from the sale amounted to $287 million, with net cash proceeds from the sale of the VLGCs totalling $242 million.

Last November, Avance announced that it had entered into a heads of agreement with Exmar LPG BV to sell the four mid-sized gas carriers under construction at CIMC SOE in Shanghai, China, by way of novation of the ship-building contracts where the consideration was agreed to be $282.4 million, or $70.6 million per vessel.

This month, shareholders approved a capital reduction to enable the return of capital to shareholders.

The board declared a combined distribution of BW LPG shares and return of capital of $5.25 per share in total for Q4 2024. This includes $3.25 per share in BW LPG shares and $2 per share in cash dividend structured as return of capital, amounting to $403 million in total. Shareholders will receive one BW LPG share for every four Avance Gas shares they hold.

The company will pay an additional extraordinary dividend of $0.75 per share once the refund guarantee in relation to the mid-sized gas carriers sale has been issued and the yard reimbursement amounting to $62 million has been settled.

Oystein Kalleklev, the chief executive of Avance Gas, said: “During the year, we sold all our 16 VLGCs which boosted our net income to a very solid $443 million. However, even excluding gains from sale of VLGCs, 2024 was a very profitable year, with ordinary net income of $125m — the third highest result ever despite the slump in the freight market in the second half of 2024.

“Once we receive the remaining $34.2 million from Exmar scheduled for payment in April, we plan to pay a dividend consisting of this amount together with the remaining cash balance of the company. This amount in total is expected to be about $56 million or approximately $0.70 per share.

“Following this final dividend, we plan to initiate the final steps of the winding-up process with delisting and liquidation of the company.”