Bw Lpg Limited · OSL:BWLPG
Bw Lpg — Q4 2020 Earnings Presentation
34 slides from Bw Lpg's earnings presentation, Mar 1, 2021
Slide 1: Fourth Quarter 2020 Earnings Presentation
Fourth Quarter 2020 Earnings Presentation 1 March 2021
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: Empowering Our Future with LPG
Empowering Our Future with LPG First four retrofits completed safely and on time; eight more vessels progressing as planned in 2021 ▪ BW Gemini, BW Leo, BW Orion and BW Libra have been retrofitted with pioneering LPG dual-fuel propulsion technology ▪ These vessels offer customers the lowest emission
Slide 5: Highlights
Highlights Ending 2020 on a strong note and continuing to return value to our shareholders ▪ Achieved Q4 2020 VLGC freight rates of USD 37,3001 per calendar day with a fleetwide utilisation of 89% ▪ Commercially, achieved USD 40,7002 per available day with a commercial utilisation of 97% ▪ Generated
Slide 6: Key Financials
Key Financials Q4 2020 Q4 2019 FY 2020 FY 2019 ▪ Q4 2020 VLGC freight rates averaged VLGC Daily TCE1 $37,300 $50,600 $36,400 $35,000 USD 37,300 per day ➢ Spot earnings of USD 43,400 per VLGC Daily OPEX2 $8,500 $7,700 $7,700 $7,200 day TCE income (in USD million) 138 192 551 547 ➢ Time charter earnin
Slide 7: Market Review
Market ReEvIEW
Slide 8: VLGC Market Outlook
VLGC Market Outlook We continue to hold a positive view for the medium term VLGC market, driven by short-term vessel supply factors LPG Supply LPG Demand Fleet Capacity Freight Rates (Q1 – Q2 2021) Short term US: Lower US LPG exports in Retail: Strong heating demand Inefficiencies reducing fleet We
Slide 9: 2020 Seaborne LPG Trade Overview
2020 Seaborne LPG Trade Overview North America exports and India imports have proven resilient during the COVID-19 pandemic 2020 seaborne LPG exports by country/region 2020 seaborne LPG imports by country/region 2019 2020 2019 2020 50 46.0 25 40.4 39.7 19.7 18.6 40 36.0 20 16.3 14.6 15 13.4 30 12.0
Slide 10: US LPG Net Exports
US LPG Net Exports EIA revised 2021E US LPG production and net exports upwards from the previous forecast US LPG snapshot 100 US Production US Domestic Consumption Net Exports + Net Exports YoY growth 80 Million tons (MT) 46 (+9) 48 (+2) 47 (-1) 37 (+7) 30 (+3) 60 18 (+6) 23 (+5) 27 (+4) 12 90 92 93
Slide 11: VLGC Fleet Profile
VLGC Fleet Profile 305 ships on the water with 2 vessels delivered to date in 2021. Orderbook at 42 ships or 14% of the global fleet Global VLGC fleet profile — average age of 10 years BW LPG VLGC market share3 of 15% Delivered VLGCs Recycled VLGCs VLGCs on orderbook Other VLGC NB Recycling candidat
Slide 12: Inefficiencies Continue to Reduce Short-term Fleet Supply
Inefficiencies Continue to Reduce Short-term Fleet Supply 1 Neopanamax transit waiting days at the Panama Canal 2 Heavy drydock schedule North bound South bound 90 Number of vessels due for drydock 12 75 10 60 # of VLGCs Waiting days 8 6 45 4 30 2 15 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 13: Commercial Update
CommerRcIAL UppaTE
Slide 14: Q4 2020 Commercial Performance
Q4 2020 Commercial Performance Achieved 97% commercial utilisation in Q4; generated TCE revenue of USD 40,700 per available day Calendar Days Available Days Availability 91.5% Spot 63.1% $45,5003 (excl. waiting time) $43,4002 (incl. waiting time) $37,300 $40,700 per day1 per day2 33.8% Time Charter
Slide 15: FY 2020 Commercial Performance
FY 2020 Commercial Performance Achieved 98% commercial utilisation in 2020; generated TCE revenue of USD 37,900 per available day Calendar Days Available Days Availability 96.1% 71.9% Spot $40,2003 (excl. waiting time) $38,9002 (incl. waiting time) $36,400 $37,900 per day1 per day2 25.8% Time Charte
Slide 16: Time Charter Portfolio Overview
Time Charter Portfolio Overview FREIGHT RATES Time charter-out coverage for 2021 at 24% with an average rate of USD 31,200 per day 1 Time charter out 2 Time charter in Quarterly Yearly Quarterly Yearly 34% 31% 29% 26% 26% 27% 24% 22% 15% 16% 16% 16% 14% 15% 15% 17% 13% 14% 15% 14% $19 $33 $37 $41 $3
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 Covid-19 update Operations ▪ First four LGIP retrofits successfully completed, ▪ Crew changes conditions improving, with a ▪ FY 2020 on time and budget. Th
Slide 19: Financial Update
FINANCIAL UPDATE
Slide 20: Income Statement
Income Statement Income statement (Figures in USD thousands) Q4 2020 Q4 2019 FY 2020 FY 2019 Net income from spot voyages 97,225 174,270 418,376 467,334 Net income from time charter voyages 40,681 17,283 132,397 79,940 TCE income 137,906 191,553 550,773 547,274 Net gain from commodity contracts 1,62
Slide 21: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows Balance sheet (Figures in USD thousands) 31 December 2020 31 December 2019 Vessels and dry docking 1,754,338 1,903,622 Other non–current assets 287,589 257,754 Total current assets 374,704 387,980 Total assets 2,416,631 2,549,356 Total shareholders’ equity 1,251,570 1,17
Slide 22: Financial Highlights
Financial Highlights Net profit after tax EBITDA 400 500 326 300 274 256 244 400 USD millions USD millions 200 300 126 100 200 430 399 414 24 340 (45) (72) 0 100 210 136 126 104 (100) 0 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 Available liquidity and net levera
Slide 23: Financing Structure and Repayment Profile
Financing Structure and Repayment Profile No major balloon payments in the next five years Financing Structure1 Repayment profile1 300 $280m Trade Finance Facilities - o/s $34m $290m ECA 2028 - o/s $222m 250 $300m Revolving credit facility (RCF) - o/s $70m $158m Term loan 2026 - o/s $99m 200 191 $22
Slide 24: Summary & Outlook
SUMMARY & OUTLOOK
Slide 25: Summary & Outlook
Summary & Outlook Summary ▪ Q4 2020 Net Profit after Tax is USD 77 million and FY 2020 NPAT is USD 244 million, with Earnings per Share of USD 0.55 for the quarter and USD 1.76 for the full year ▪ Declared Q4 2020 cash dividend of USD 34 cents per share amounting to USD 47 million. This brings total
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: VLGC Charter Portfolio 2020 – 2021
VLGC Charter Portfolio 2020 – 2021 Our contract coverage stands at 24% for 2021 (as of 31 December 2020) Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 2021E Owned and bareboat days 3,276 3,276 3,234 3,146 12,932 11,726 Time charter in days 502 546 552 552 2,152 2,097 Total calendar days 3,778 3,822 3,786 3,6
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 8.6 8.6 8.6 8.6 18.3 g CO2 / (tonne ⋅ nautical 18.5 18.1 g CO₂ / (tonne ⋅ nautical 8.3 8.3 8.3 8.3 17.9 18.0 8.5 18.0 7.8 7.8 7.7 17.5 8.0 7.5 7.4 7.4 7.5 16.8 7.3 17.0 16.5 miles)
Slide 31: Fleet Safety Statistics
Fleet Safety Statistics Safety and Zero Harm onboard remain our key focus, especially during challenging times 1.20 1.12 1.09 1.09 0.97 0.96 0.95 0.97 1.00 0.93 0.84 0.86 0.82 0.82 0.80 0.60 TRCF 12 Month Rolling Average (MRA) 0.40 0.28 0.28 0.28 0.27 0.27 0.27 0.20 0.14 0.14 0.13 0.14 0.14 0.14 LTI
Slide 32: BW LPG Fleet Development (Detailed)
BW LPG Fleet Development (Detailed) Timeline based on current contracts 1 1 1 1 1 1 1 2 1 4 38 36 32 32 32 32 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 Ch
Slide 33: Fleet List
Fleet List Modern fleet of 46 vessels built at leading shipyards (as of 31 December 2020) Owned VLGCs (100% Ownership) Chartered / Bareboat VLGCs Name Year Shipyard Name Year Shipyard Name Year Shipyard Charter type 1 BW Mindoro 2017 DSME BW Pine 2011 Kawasaki S.C. BW Yushi 2020 Mitsubishi H.I. Time
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