Gas shipowner and trader Petredec has established a new business arm, Petredec Global, comprising its trading platform as well as a modern fleet of 27 very large gas carriers (VLGCs).
The business is looking to list on the Oslo Stock Exchange and has engaged DNB Markets and SEB Corporate Finance as joint global coordinators and Fearnley Securities and Pareto Securities as joint bookrunners to assist in the contemplated IPO process.
Petredec Global would be the world’s first fully integrated VLGC shipping and trading company listed on a stock exchange and the second largest VLGC owner with a significantly higher eco, scrubber and dual fuel penetration, and the lowest fleet age among its peers, the company said.
Commenting on the establishment of Petredec Global, Group CEO Giles Fearn, said: “Petredec is not a company that stands still and looks back. We remain heavily focused on future asset growth within our other shipping and on-shore divisions. The group’s strategic goal to expand our footprint in the LPG value chain through terminals and distribution in emerging markets such as India, South and East Africa, and the balance of the Indian Ocean basin can only benefit the Petredec Global platform and the market as a whole through increased demand for LPG.”
Petredec Global will be led by Jonathan Fancher, who joined the group as chief commercial officer in 2020. The company is said to be uniquely positioned to benefit from a call on US shale, growing US production, increasing global demand for LPG, and a widening LPG arbitrage.
“With 90% of our fleet positioned for premium earnings due to ECO, scrubber, and dual-fuel technology, combined with consistent earnings from trading, Petredec Global’s fully integrated model is well-poised to continue to deliver premium profits to our shareholders. This unique offering along with a highly attractive market outlook, the call on US shale, and improving arbitrage will set Petredec Global up to generate premium cash flows and return attractive dividends,” added Fancher.