BW Group
BW Group is a maritime company involved in shipping, floating gas infrastructure and deep-water oil & gas production. The company has over 450 vessels managed by an international team of over 12,000 staff worldwide. The group was founded by Sir Yue-Kong Pao in Hong Kong in 1955 as World-Wide Shipping. In 2003, the company acquired Bergesen d.y. ASA, Norway's largest shipping company, which was founded in 1935 by Sigval Bergesen the Younger. In 2005, the business was re-branded as BW. With its LNG and LPG fleets combined, BW Group owns and operates the world's largest gas shipping fleet of more than 200 gas vessels, including five FSRUs. Hafnia, a member of the BW Group, operates the world's largest fleet of oil product tankers, and BW Offshore comprises the second largest number of floating oil and gas production units. BW's controlled fleet of over 450 ships also includes crude oil supertankers and dry bulk carriers.
BW Group currently comprises BW LNG, BW LPG, Navigator Gas, BW Epic Kosan, DHT, Hafnia, BW Dry Cargo, BW Offshore, BW ESS, BW Energy, BW Solar, Cadeler, BW Water, BW Ideol, Corvus Energy, and BW Digital.Overview
BW Group is built on the foundations of two long-standing shipping businesses: World-Wide Shipping and Bergesen d.y., which was acquired by World-Wide in 2003.
In the late 1970s, two British Hongs were taken over by Chinese entrepreneurs: Hutchison Whampoa Ltd by Li Ka-Shing, and Kowloon Wharf by Sir Yue-Kong Pao. Sir Y.K. Pao was a native from Ningbo, Zhejiang province who came to Hong Kong in 1949 and acquired an aging ship to establish the Worldwide Shipping Company in 1955. At its peak in 1979, World-Wide had 204 ships totaling. When the shipping downturn started in 1978, World-Wide sold tonnage while prices were still reasonable, paying off debt and building cash resources. In less than five years the fleet had halved in size, allowing World-Wide to avoid the crises suffered by many shipping companies.
In 1989, Pao passed on his interest in World-Wide to his eldest daughter, Anna Sohmen-Pao, shortly before his death in 1991. World-Wide was ranked as the sixth largest shipping fleet in the world in 2004 and has been chaired by Helmut Sohmen, Pao's eldest daughter's husband, since 1986.
In late 2000, following a period of stake building starting in Bergesen d.y., the Sohmen family came to an agreement in March 2003 with Morten Bergesen and Petter Sundt, the controlling family shareholders, to buy their interest in Bergesen and mount a full public offering for all outstanding shares.
In 2004, following completion of this transaction, there was a reorganisation of the Sohmen family interests, with the creation of a new top holding company, Bergesen Worldwide Ltd., registered in Bermuda, which is owned 93% by the Sohmen family and 7% by HSBC. The holding company was subsequently renamed BW Group Limited.
In 2005, a further re-organisation took place, accompanied by the re-branding of the business under a single group brand, BW. BW Gas was listed in Oslo in October 2005 as a pure gas shipping company with BW Group retaining a majority share. BW Offshore followed suit by being listed in May 2006. The other assets remain in private ownership.
In 2009, BW Gas was privatised. On 21 November 2013, the LPG business was listed on the Oslo Stock Exchange as BW LPG.History
Background
BW Group is made up of two long-standing shipping businesses: World-Wide Shipping and Bergesen d.y. ASA, which was acquired by the former in 2003. To reflect this acquisition, a new holding company, Bergesen Worldwide Ltd. was incorporated in Bermuda. In 2005, the business was re-branded as BW.World-Wide Shipping's beginnings
Sir Yue-Kong Pao started World-Wide Steamship Company Limited with his father S.L. Pao, brother H.K. Pao and friends C.L. Pan, P.C. Lee, T.H. Chiang, A.P.Y. Waung, W.S. Cheng and Y.S. Zee. The new company was incorporated in Hong Kong in July 1955. The company's first ship Inchona, a 27-year old coal-burning steamer, was renamed Golden Alpha. Several other ships were quickly added to the fleet and were chartered by Japanese and Hong Kong companies. It was a decision that other ship-owners deemed unusual and risky although it soon paid off. In 1956 freight charges rose rapidly due to the closure of the Suez Canal during the Suez Crisis. Over the years, the company's fleet grew and by 1979 it had over 200 vessels and group tonnage of 20.5 million DWT, making it larger than the US and Soviet merchant fleets combined.World-Wide's entry into tanker market and oil crises
During the 1960s, Sir Y.K. Pao was determined to enter the tanker market. However, his lack of experience meant oil companies refused to charter his vessels. He was rejected by Shell Oil and various American oil companies. Nonetheless, he managed to break into the market by acquiring a second-hand tanker that came attached with a charter. The tanker, renamed World Oriental, was soon joined by World Continental and World Universal. Pao continued approaching potential customers and then Standard Oil-Esso eventually gave him a chance. By 1964, Pao had nine tankers that were chartered by oil companies. The company's first very large crude carrier was constructed by Kawasaki Heavy Industries and named World Chief in 1969. Another 42 VLCCs were added to the fleet between 1970 and 1974 and most were constructed in Japan. World-Wide survived the first oil crisis as it had reliable charterers for its vessels. However, the company had to implement drastic measures to survive the second oil crisis. Anna Pao's husband, Dr. Helmut Sohmen convinced Pao of the severity of the crisis. The founder then promptly sold 140 ships within five years. The timely sales ensured that World-Wide Shipping was in a much better state than its competitors after the crisis as it was in a better position to cope with the increasing popularity of voyage charters and low freight costs.Change of leadership
Sir Y.K. Pao retired in 1986 and Dr. Helmut Sohmen, who joined the company in 1970, took over. As shipyards were in a dismal state after the crisis and eager for new orders at low prices, World-Wide Shipping purchased six tankers from Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering before the market recovered and in time to enjoy the higher freight rates during the First Gulf War. World-Wide Shipping again commissioned Daewoo to build another six VLCCs and Daewoo would go on to be the main builder of World-Wide's ships.Acquisition of Bergesen d.y. ASA
By 2000, Dr. Helmut Sohmen had identified two companies, Bergesen d.y. ASA and Iino Kaiun Kaisha, which had good management and assets. However, the share prices of both companies did not appear to wholly capture the value of the companies. The Sohmen family's investment management team began investing in both companies and continued stake building for two years. Although Sohmen had conveyed his friendly intentions, Iino's management sought to maintain the status quo and did not want World-Wide to hold more shares than the largest shareholder. Respecting Iino's wishes, World-Wide called off the plan and sold off its shares at a profit. Bergesen cousins Morten Bergesen and Petter C. G. Sundt, grandchildren of founder Sigval Bergesen d.y., reacted more positively. They were firm that any offer for their shares would have to be extended to all other shareholders as well. By March 2003 the cousins had accepted World-Wide's offer. World-Wide then mounted a public offer and accumulated over 90% of the shares. The acquisition received considerable media attention as Bergesen was both Norway's largest shipping company and also one of its best. Both groups achieved a high degree of cooperation and continuity and a new holding company, Bergesen Worldwide Ltd, was soon incorporated in Bermuda in 2004 to reflect this acquisition. In 2005 the business was rebranded under a single group brand, BW.Bergesen's beginnings
Sigval Bergesen d.y. hailed from a shipping family. His great-grandfather Berge Bergesen started a shipping company in 1840 and his father Sigval Bergesen founded his own in 1887. Sigval Bergesen d.y. joined his father's company in 1916 and after disagreeing with his father's refusal to commission two large 15,000 DWT tankers from Odense Steel Shipyard, left the company with one of its contracts. He soon established his own company, then named Sig. Bergesen d.y. & Co., on 20 February 1935. The company was run by his partner, Erland Bassøe, for over four years after Sigval Bergesen d.y. accepted A.P. Møller's job offer and served as the latter's right-hand man. The company first ship, Président de Vogüé, was launched in May 1935. Charles Racine, named after Sigval Bergesen d.y.'s grandfather, joined the fleet in 1937 and Anders Jahre, named after the famed Norwegian shipping tycoon, was acquired in 1939.Just before the Second World War, Sigval Bergesen d.y. shifted the company headquarter from Stavanger to Oslo to facilitate communication with business contacts. The Stavanger office became a branch office which continued to be overseen by Erland Bassøe. During the war, the company's fleet of Président de Vogüé, Charles Racine, and Anders Jahre was considered modern for its time and also fully in operation. The ships temporary entered the management and operation of the Norwegian Shipping and Trade Mission. Charles Racine was sunk by three torpedoes on 10 March 1942 although her whole crew was rescued. Anders Jahre continued sailing independently most of the time although she joined a convoy whenever she sailed from the Persian Gulf or an Indian Port. The last ship, Président de Vogüé, was active in the Atlantic Ocean during the war. When she sailed into Stavanger's port on 20 May 1945, she was the first ship under Nortraship to return to Norway.