With an expanded Product Services Division, we are enhancing our ability to serve clients
In July 2022, BW LPG acquired the LPG trading operations of Vilma Oil. It was deal that brought a highly experienced team with a strong track record on board and fulfils the ambition to expand BW LPG’s Product Services Division, rebranded to BW Product Services. Established in 2019, the objective was simple: to capture market opportunities and diversify business offerings in a way that would improve fleet utilisation and return greater value to shareholders. BW Product Services would provide integrated delivery services for customers, delivering LPG on time and to specification using our fleet of VLGCs.
For BW LPG – one of the first pure-play LPG shipping companies to venture into product delivery – this move has proved successful. Over five years, BW Product Services has grown to become one of the largest lifters of LPG from the US, averaging one million tons per year. It has also met its dual objective of increasing commercial utilisation and boosting time-charter income
An Expanded Team Geared To Growth
BW LPG warmly welcomes 20 new colleagues from Vilma Oil – 12 in Spain and eight in Singapore. Led by BW Product Services CEO Amalio Hidalgo, the expanded team will scale up its offering to provide even better service to customers. This will position the company well for future growth, as it continues to operate within disciplined capital requirements and defined risk thresholds. BW LPG received regulatory approval in November and the transaction was successfully closed in the same month. The combined team is expected to trade over four million tons of physical LPG annually. The transaction also adds five additional time charter-in VLGCs to the fleet, including one newbuild. The team will expand its coverage from a US-centric priority to a global focus. The acquisition brings increased agility and important insights into a volatile market, further enhancing the core shipping business. It also creates growth opportunities along the LPG value chain.
Says Kristian Sørensen, Deputy CEO and Head of Strategy, “It has been a pleasure working with Amalio and team as we collaborated to close the transaction. By expanding BW Product Services we are adding another layer to our business model and increasing the ability to adjust our market exposure. Once we received approval from the regulatory authorities in Spain, we implemented our integration plans and within a month we had the Spain-based team move into a new office in Madrid, and the Singapore-based team move in with us at our current Singapore office. My thanks to all colleagues for living our CARE values and ensuring our new colleagues are warmly welcomed from Day One.”