Ship owning and chartering company BW LPG Limited (OSE:BWLPG) (NYSE:BWLP) said on Friday that its 52%-owned subsidiary, BW LPG India, has agreed to sell the BW Elm for continued trading.

On a 100% basis, the transaction is expected to generate a net book gain of approximately USD36m and net cash proceeds of about USD64m.

The vessel is scheduled for delivery to the buyer by mid-August.

CEO Kristian Sørensen said the sale capitalises on strong second-hand vessel values, with the 2007-built ship sold at a level equivalent to a newbuilding price of about USD248m. He added that the transaction supports the company's strategy of divesting older vessels while investing in new tonnage.

BW LPG operates a fleet of about 50 Very Large Gas Carriers, including more than 20 vessels powered by LPG dual-fuel propulsion technology.