Slide 1: Earnings Presentation Q3 2022
Earnings Presentation Q3 2022 16 November 2022 ● BW LPG Earnings Presentation ● Q3 2022
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 No representation, warranty or undertaking, express or implied, is made by BW LPG, its This presentation and the information contained herein are not an offer of securities for
Slide 3: Agenda
Agenda 01 Highlights 02 Market 03 Performance 04 Q&A
Slide 4: 2022 Q3 Highlights and Market Outlook
2022 Q3 Highlights and Market Outlook Commercial Performance Financial Performance Return to Shareholders $38,200 98% $46M $0.32 $0.25 $33M TCE per available day Commercial utilisation Net profit after tax Earnings per share Dividend per share Total $37,200 3% $365M 25% $0.76 $102M TCE per calendar
Slide 5: LPG surfing the wave
LPG surfing the wave LPG imports to Europe up ~60% in 2022 Fewer US voyages to Asia offset by High LNG and oil increased exports prices drive LPG from Middle East export growth Strong demand growth from PDH plants in China from 2023 Increasing LNG exports lead to longer waiting VLGCs sailing times a
Slide 6: Market
02 Market 6
Slide 7: VLGC Market Outlook
VLGC Market Outlook We reiterate our positive view towards 2023 despite the high newbuild orders North American Supply Middle Eastern Supply LPG Demand Fleet Supply Shipping Inefficiency ▪ Shale producers swing ▪ Significant growth led by ▪ Strong European LPG ▪ 13 VLGCs have been ▪ Reduction in ves
Slide 8: 2022 Q3 Seaborne LPG Trade Overview
2022 Q3 Seaborne LPG Trade Overview Increasing US exports to Europe and rising Middle Eastern exports to the Far East Q3 seaborne LPG exports by country/region Q3 seaborne LPG imports by country/region 16 7 6.6 6.2 13.6 13.6 14 6 12 11.3 4.8 5 Million tons (MT) Million tons (MT) 4.5 10 9.2 4 8 3.0 2
Slide 9: Export growth from major exporting regions expected to continue into 2023
Export growth from major exporting regions expected to continue into 2023 North America LPG exports by VLGCs Middle East LPG exports by VLGCs 60 60 50 50 Million tons (MT) Million tons (MT) 40 40 30 30 20 20 10 10 0 0 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 Se
Slide 10: Increasing exports and inefficiencies to offset high newbuild orders
Increasing exports and inefficiencies to offset high newbuild orders Export growth from North America and Middle We have the critical mass to East will absorb ~45% of the newbuild orders benefit from the volatilities 39 Export growth: ▪ Assume 1MT of export will 68 12% total market share generate 3
Slide 11: Performance
03 Performance 11
Slide 12: Commercial
Commercial Achieved 98% commercial utilisation which generated TCE revenue of USD 38,200 per available day 2022 Q3 performance Guidance TCE by calendar days TCE by available days Q4 2022 $37,200/ day1 $38,200/ day2 ▪ We have fixed ~80% of our Q4 available fleet Spot $41,0003 days at an average rate
Slide 13: Smart Operations
Smart Operations “Best on Water” management of port calls and voyage turnarounds Others, 13, 9% Others, 43, 13% China, 53, 16% WAF, 14, 9% Suez, 13 Red Sea, 3, India, 11, 3% 2% EU/Med, 65, 19% AG, 10, 7% South America, 6, 2% Japan/Korea, 116, US, 109, 73% 35% Panama, 101 SE Asia, 42, 12% 149 Load Po
Slide 14: Operations – Gearing up for New Green Regulations
Operations – Gearing up for New Green Regulations BW LPG is ready for EEXI and CII Energy Efficiency Existing Ship Index (EEXI) • A one-time certificate of CO2 emissions related to the design parameters of each vessel must be obtained • If the vessel design does not comply, mitigation methods includ
Slide 15: Financial Highlights
Financial Highlights Low leverage, strong liquidity, ready for growth opportunities Per Day Statistics (USD/Day) Key Financials Q3 2022 (USD million) Q3 2022 Daily TCE1 $37,200 Income Statement Q3 2022 Daily OPEX $7,900 TCE income $130 FY 2022 Operating cash breakeven2 EBITDA $93 Owned fleet $20,600
Slide 16: Financial – Financing Structure and Repayment Profile
Financial – Financing Structure and Repayment Profile More than 90% of our long-term debt fixed at 2.1% before margin for the next 5 years Financing structure1 350 Repayment profile1 $310m Trade Finance Facilities - o/s $64m 300 $198m BW LPG India Term Loan - o/s $173m Revolving credit facilities (R
Slide 17: Q&A
04 Q&A 17
Slide 18: Q&A
Q&A CEO Anders Onarheim Deputy CEO & Head of Strategy Kristian Sørensen CFO Elaine Ong EVP (Commercial) Niels Rigault EVP (Technical and Operations) Pontus Berg
Slide 19: Contact Us
Contact Us Investor Relations investor.relations@bwlpg.com Ticker BWLPG LinkedIn linkedin.com/company/bwlpg Telephone +65 6705 5588 Address 10 Pasir Panjang Road Mapletree Business City #17-02 Singapore 117438 19
Slide 20: Appendices
05 Appendices 20
Slide 21: US LPG Net Exports
US LPG Net Exports EIA expects a strong growth in 2023 US exports US LPG snapshot 120 US Production US Domestic Consumption Net Exports 100 Million tons (MT) 80 53 58 49 37 46 60 30 18 23 27 101 105 90 94 87 40 78 66 68 71 46 45 43 47 47 44 46 47 46 20 0 2015 2016 2017 2018 2019 2020 2021 2022 Forec
Slide 22: Global VLGC Fleet Profile
Global VLGC Fleet Profile Orderbook at 68 vessels (~20%) through to 2025 Global VLGC fleet profile — average age of 10.9 years BW LPG VLGC market share2 of ~12% Delivered VLGCs Recycled VLGCs VLGCs on orderbook Other VLGC NB 50 Recycling candidates VLGC count at year end 500 68 379 385 382 40 338 40
Slide 23: VLGC Charter Portfolio Overview
VLGC Charter Portfolio Overview Time charter-out coverage for 2023 at 17% at an average rate of USD 34,100 per day Time charter-out Time charter-in Quarterly Yearly Quarterly Yearly 34% 28% 31% 24% 23% 21% 21% 21% 25% 19% 19% 23% 24% 18% 17% 18% 15% 14% 12% 19% $38 $36 $27 $30 $27 $20 $15 $12 $131 $
Slide 24: VLGC Charter Portfolio 2022-2023
VLGC Charter Portfolio 2022-2023 Overall contract coverage stands at 29% for 2022 (as of 30 September 2022) Q3 2022 Q4 2022E 2022E Q1 2023E Q2 2023E Q3 2023E Q4 2023E 2023E Owned days 2,760 2,683 11,174 2,610 2,639 2,668 2,668 10,585 Time charter in days 736 801 2,807 756 711 565 460 2,492 Total cal
Slide 25: BW LPG India Charter Portfolio 2022-2023
BW LPG India Charter Portfolio 2022-2023 Contract coverage stands at 79% for 2022 (as of 30 September 2022) Q3 2022 Q4 2022E 2022E Q1 2023E Q2 2023E Q3 2023E Q4 2023E 2023E Owned days 731 736 2,734 720 728 736 736 2,920 Time charter in days – – – – – – – – Total calendar days 731 736 2,734 720 728 7
Slide 26: Fleet Safety Statistics
Fleet Safety Statistics Safety and Zero Harm onboard remain our key focus, especially during challenging times TRCF 12 Month Rolling Average (MRA) 1.60 1.42 1.40 1.31 1.32 1.26 1.18 1.20 1.04 1.05 1.06 1.07 1.00 0.85 0.77 0.77 0.80 LTIF 12 Month Rolling Average (MRA) 0.60 0.40 0.29 0.29 0.29 0.28 0.
Slide 27: BW LPG Fleet Development
BW LPG Fleet Development Timeline based on current contracts 1 1 2 1 1 1 1 2 3 1 2 33 29 29 29 29 29 10 8 6 3 2 Dec 2021 Q1 Q2 Q3 Q4 Dec 2022 Q1 Q2 Q3 Q4 Dec 2023 2024 Dec 2024 2025 Dec 2025 2026 Dec 2026 2022 2022 2022 2022 2023 2023 2023 2023 Chartered-in fleet Owned fleet Charter expiry Divested
Slide 28: BW LPG Fleet List
BW LPG Fleet List Modern fleet of 39 vessels built at leading shipyards (as of 30 September 2022) Owned VLGCs (100% Ownership) Chartered / Bareboat VLGCs 3 Name Year Shipyard Name Year Shipyard Name Year Shipyard Charter type 1 BW Mindoro 2017 DSME BW Thor 2008 Hyundai H.I. BW Yushi 2020 Mitsubishi