Small-scale LNG vessel market outlook and vessel valuation

Drewry assisted in the intra-company transaction of a small-scale LNG vessel. The scope of work included a market report on the potential of the small-scale LNG shipping market, the challenges of operating a small LNG carrier, and the cost associated with its operations and maintenance. Drewry conducted charter-free and charter-attached valuations, as well as an SPV valuation, taking into account the company’s financial statements (balance sheet, cash flow statements and income statements), along with projected earnings and costs. Drewry also developed a financial model to estimate the subsidiary company’s RoI.