Bw Lpg Limited · OSL:BWLPG
Bw Lpg — Q2 2020 Earnings Presentation
34 slides from Bw Lpg's earnings presentation, Aug 27, 2020
Slide 1: Second Quarter 2020 Earnings Presentation
Second Quarter 2020 Earnings Presentation 27 August 2020
Slide 2: Disclaimer and Forward-looking Statements
Disclaimer and Forward-looking Statements This presentation has been produced by BW LPG Limited (“BW LPG”) exclusively for information purposes. This presentation may not be reproduced or redistributed, in whole or in part, to any other person. Matters discussed in this presentation and any material
Slide 3: Agenda
1. Highlights AGENDA 2. Market Review 3. Commercial Update 4. Technical Update 5. Financial Update 6. Summary & Outlook 7. Q & A
Slide 4: Highlights
Highlights ▪ Achieved Q2 2020 VLGC freight rates of USD 39,100 per day with a high fleet utilisation of 97% ▪ Generated Q2 2020 net profit after tax of USD 62 million or an earnings per share of USD 45 cents. For H1 2020, the net profit after tax was USD 143 million with an earnings per share of USD
Slide 5: Key Financials
Key Financials Focus on fleet utilisation led to strong returns for shareholders Q2 2020 Q2 2019 H1 2020 H1 2019 ▪ Fleet-wide VLGC freight rates averaged USD 39,100 per day VLGC Daily TCE1 $39,100 $27,500 $40,700 $21,300 VLGC Daily OPEX2 $7,100 $7,300 $7,400 $7,300 ▪ Spot earnings of USD 41,100 per
Slide 6: Market Review
Market ReEvIEW
Slide 7: VLGC Market Outlook
VLGC Market Outlook Medium term market outlook sensitive to oil price expectations LPG Supply LPG Demand Fleet Capacity Freight Rates Exports are supported by: Imports are supported by: Global VLGC fleet capacity: Near term rates are supported by: ▪ US: High LPG production ▪ Recovering petrochemical
Slide 8: Q2 2020 Seaborne LPG Trade Overview
Q2 2020 Seaborne LPG Trade Overview Total seaborne LPG trade decreased 9% YoY, mainly driven by decreased exports from the Middle East Quarterly seaborne LPG imports by country/region Comments Q2 2019 Q2 2020 Imports 6 5.4 5.1 ▪ China LPG imports fell by 6% to 5.1 million tons (MT) in Million tons (
Slide 9: US LPG Net Exports
US LPG Net Exports EIA revised 2020 US LPG net exports to continue growing from 2019 US LPG snapshot 100 US Production US Domestic Consumption Net Exports + Net Exports YoY growth 80 Million tons (MT) (+7) (+4) (-4) (+3) 37 41 37 30 60 (+6) (+6) (+3) 18 24 27 12 87 87 84 40 78 66 68 71 60 44 46 45 4
Slide 10: Global LPG Demand – Long Term Trends
Global LPG Demand – Long Term Trends Global LPG demand is about 3 times larger than seaborne volumes Global LPG demand grew to over 310 MT in 2018 Retail & chemicals contribute >70% of global demand Retail Chemicals Industry 2018 Global LPG Demand by Sector Transport Agriculture Refinery 350 8% Reta
Slide 11: China LPG Demand – Long Term Trends
China LPG Demand – Long Term Trends In Q2 2020, US LPG exports into China appears to have normalised Chinese LPG demand has grown to over 50 MT in 2018 Retail and chemicals contribute >70% of demand Retail Agriculture Industry Chemicals Transport Refinery 2018 Chinese LPG Demand by Sector 60 1% 15%
Slide 12: VLGC Fleet Profile
VLGC Fleet Profile 299 ships on the water with 6 vessels delivered in Q2 2020. Orderbook at 34 ships or 11% of global fleet Global VLGC fleet profile — average age of 9.9 years BW LPG VLGC market share3 of 15% Delivered VLGCs Recycled VLGCs VLGCs on orderbook Other VLGC NB Recycling candidates VLGC
Slide 13: Commercial Update
CommerRcIAL UppaTE
Slide 14: Responding to Market Volatility and Disruptions
Responding to Market Volatility and Disruptions Demonstrated resilience and agility Q2 Market Volatility Our Response Q3 Commercial Coverage OPEC+ started historic Positioned our vessels away production cuts in May. Exports We have fixed approximately 80% of our Q3 from the Middle East and from Midd
Slide 15: Commercial Performance
Commercial Performance Achieved 97.2% commercial utilisation in Q2; generated TCE revenue of USD 39,100 per calendar day Calendar Days Available Days Availability 99.3% 71.6% Spot $42,7003 (excl. waiting time) $41,1002 (incl. waiting time) $39,100 $39,400 per day1 per day2 25.6% Time Charter $34,300
Slide 16: Time Charter Portfolio Overview
Time Charter Portfolio Overview FREIGHT RATES Time charter-out coverage for 2020 at 25% at an average rate of USD 33,300 per day 1 Time charter out 2 Time charter in Quarterly Yearly Quarterly Yearly 30% 28% 26% 25% 19% 15% 15% 14% 15% 15% 15% 15% 15% 13% 13% 14% 14% 14% 13% 10% 19 33 34 33 21 14 12
Slide 17: Technical Update
TECHNICAL UPDATE
Slide 18: Technical Highlights
Technical Highlights Planned drydocks and retrofittings remain largely on track, crew contract overruns trending down LPG dual-fuel retrofitting Scrubber installations Crew changes ▪ Retrofitting of BW Gemini has ▪ Five vessels fitted with scrubbers ▪ Crew changes remain challenging; commenced with
Slide 19: Financial Update
FINANCIAL UPDATE
Slide 20: Income Statement
Income Statement Income statement (Figures in USD thousands) Q2 2020 Q2 2019 H1 2020 H1 2019 Net income from spot voyages 116,243 92,486 256,497 132,980 Net income from time charter voyages 33,217 18,359 54,920 38,071 TCE income 149,460 110,845 311,417 171,051 Net (loss)/gain from commodity contract
Slide 21: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows Balance sheet (Figures in USD thousands) 30 June 2020 31 December 2019 Vessels and dry docking 1,847,502 1,903,622 Other non–current assets 238,953 257,754 Total current assets 387,342 387,980 Total assets 2,473,797 2,549,356 Total shareholders’ equity 1,190,393 1,177,31
Slide 22: Financial Highlights
Financial Highlights Net profit on the rebound Positive EBITDA through cycle lows 400 326 500 300 274 256 400 USD millions USD millions 200 126 143 300 100 200 430 399 24 (45) (72) 340 0 239 100 210 136 126 104 (100) 0 2013 2014 2015 2016 2017 2018 2019 YTD 2020 2013 2014 2015 2016 2017 2018 2019 YT
Slide 23: Financing Structure and Repayment Profile
Financing Structure and Repayment Profile No major balloon payments in the next five years Financing Structure2,3 Repayment profile2 Utilised Trade Finance Facilities 500 Trade Finance Facilities - o/s $13m Lease Liabilities - o/s $215m $290m ECA 2028 - o/s $231m 400 $150m Term loan 2023 - o/s $79m
Slide 24: Summary & Outlook
SUMMARY & OUTLOOK
Slide 25: Summary & Outlook
Summary & Outlook Summary ▪ Q2 2020 Net Profit after Tax of USD 62 million, resulting in an Earnings per Share of USD 45 cents ▪ Declared Q2 2020 cash dividend of 15 cents per share amounting to USD 21 million, giving a YTD payout ratio of 34% of NPAT Events occurring after 30 June 2020 ▪ Concluded
Slide 26: Q&A
Q&A
Slide 27: Investor Relations
Investor Relations investor.relations@bwlpg.com Telephone +65 6705 5588 Ticker BWLPG Linkedin https://sg.linkedin.com/company/bwlpg Address 10 Pasir Panjang Road Mapletree Business City #17-02 Singapore 117438
Slide 28: Appendix
APPENDIX
Slide 29: Fleet Safety Statistics
Fleet Safety Statistics Safety and Zero Harm onboard remain our key focus, especially during challenging times 1.60 1.40 1.34 1.20 1.17 1.20 1.05 1.07 1.07 1.06 1.06 1.00 0.94 0.93 0.93 0.92 0.80 TRCF 12 Month Rolling Average (MRA) 0.60 0.40 0.39 0.40 0.39 0.40 0.40 0.27 0.27 0.26 0.26 0.26 0.27 0.2
Slide 30: Fleet Environmental Data
Fleet Environmental Data1 Annual Efficiency Ratio (AER)2 Energy Efficiency Operational Indicator (EEOI)3 9.0 19.0 18.5 g CO2 / (deadweight ton ⋅ 8.6 8.6 8.6 8.6 8.3 8.3 18.5 18.1 18.0 8.5 17.9 g CO₂ / (cargo ton ⋅ 18.0 nautical miles) 7.8 7.8 nautical miles) 8.0 7.7 17.5 7.5 7.4 16.8 7.3 17.0 7.5 16
Slide 31: VLGC Charter Portfolio 2020 – 2021
VLGC Charter Portfolio 2020 – 2021 Our contract coverage stands at 25% for 2020 (as of 30 June 2020) Q1 2020 Q2 2020 Q3 2020E Q4 2020E 2020E 2021E Owned and bareboat days 3,276 3,276 3,227 3,220 12,999 12,775 Time charter in days 502 546 552 552 2,152 2,097 Total calendar days 3,778 3,822 3,779 3,77
Slide 32: BW LPG Fleet Development (Detailed)
BW LPG Fleet Development (Detailed) Timeline based on current contracts 1 1 1 1 1 1 4 38 36 34 34 34 34 9 10 8 6 6 6 Dec 2018 Q1 Q2 Q3 Q4 Dec 2019 Q1 Q2 Q3 Q4 Dec 2020 2021 Dec 2021 2022 Dec 2022 2023 Dec 2023 2019 2019 2019 2019 2020 2020 2020 2020 Chartered-in / Bareboat fleet Owned fleet Charter
Slide 33: Fleet List
Fleet List Modern fleet of 47 vessels built at leading shipyards (as of 30 June 2020) Owned VLGCs (100% Ownership) Chartered / Bareboat VLGCs Name Year Shipyard Name Year Shipyard Name Year Shipyard Charter type BW Mindoro 2017 DSME BW Sakura 2010 Mitsubishi H.I. BW Yushi 2020 Mitsubishi H.I. Time c
Slide 34: Glossary of Terms
Glossary of Terms Terms Explanation Time Charter Charter hires with a fixed hire rate for a fixed duration Spot Charter hires negotiated on spot/market rates Available Days Calendar days less planned and unplanned technical offhire days Commercial Utilisation Rate Available days less commercial wait