Bw Lpg Limited · OSL:BWLPG
Bw Lpg — Pareto Energy Conference 2024
14 slides from Bw Lpg's conference presentation, Sep 12, 2024
Slide 1: Pareto Energy Conference 2024
Pareto Energy Conference 2024 Kristian Sørensen | CEO 12 September 2024 ● Pareto Energy Conference
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer and Forward-Looking Statements NOT FOR RELEASE, PUBLICATION, DISTRIBUTION OR FORWARDING, IN WHOLE OR No representation, warranty or undertaking, express or implied, is made by BW LPG, its Neither this presentation nor anything contained herein shall form the basis of, or be relied IN PART
Slide 3: BW LPG | A world leader in the LPG shipping and commodity market
BW LPG | A world leader in the LPG shipping and commodity market Combining growth with a disciplined approach to generating shareholder returns US$ 2.0bn 27% Annual returns to Market Cap2 investors3 since IPO Playing a significant role Integrated LPG company Listed on Oslo Stock Return-focused compa
Slide 4: Our focus on profitability has provided shareholders with good returns
Our focus on profitability has provided shareholders with good returns Integrated and disciplined company with focus on profitability Delivering on our strategy Since the IPO in 2013, we have paid out 74% of our earnings as dividends Historical accumulated earnings per share and dividends per share
Slide 5: Continue to execute strategic investments across the value chain
Continue to execute strategic investments across the value chain Recent acquisition solidifies our position as the world’s leading owner and operator of VLGCs – our core business Investing in three inter- Expanding the platform for growth when attractive opportunities arise collaborating business un
Slide 6: 2023 | Super profit in the shipping part of the value chain
2023 | Super profit in the shipping part of the value chain Arbitrage composition illustration Significant US – Far East LPG price differentials Capturing VLGC Import Cargo entity shipping terminals Far East Houston US-Far East arbitrage 6
Slide 7: July 2024 | Hurricane Beryl and disruptions in US LPG exports
July 2024 | Hurricane Beryl and disruptions in US LPG exports Arbitrage composition illustration Cargo captured larger portion of the arbitrage value at the expense of shipping Capturing VLGC Import Cargo entity shipping Increase in Far terminals East LPG price Increase in US LPG price Far East Hous
Slide 8: July 2024 | Hurricane Beryl and disruptions in US LPG exports
July 2024 | Hurricane Beryl and disruptions in US LPG exports Arbitrage composition illustration Cargo captured larger portion of the arbitrage value at the expense of shipping Capturing VLGC Import Cargo entity shipping Increase in Far terminals East LPG price Increase in US LPG price Far East Hous
Slide 9: Fleet acquisition of 12 VLGCs from Avance Gas
Fleet acquisition of 12 VLGCs from Avance Gas Strategic transaction, expanding and renewing our fleet to enhance shipping and delivery options in the fast-growing LPG space Transaction summary ~44% growth in owned fleet… BW LPG VLGC fleet2 ✓ Acquisition of 12 modern VLGCs from Avance Gas with an ave
Slide 10: Fundamentally strong supply driven VLGC market...
Fundamentally strong supply driven VLGC market... Continued growth in LPG exports N. American LPG exports VLGC only Middle East LPG exports VLGC only Panama Canal rate impact Million tons Million tons H-C TCE (LHS) Panama Usage (laden) (RHS) 60 $ 140k/d 100% 56 41 52 38 39 95% 37 $ 120k/d ~95% 46 90
Slide 11: ...balanced against robust demand growth in Asia
...balanced against robust demand growth in Asia Asia demand continues to grow supporting demand for long haul shipping of LPG China LPG imports India LPG demand South-East Asia LPG imports Million tons Million tons Million tons 41 37 33 36 37 34 32 14.2 28 13.4 13.5 11.7 +11% 1H 1H 2022 2023 2024F
Slide 12: Abating newbuild deliveries
Abating newbuild deliveries Quarterly delivery schedule (#VLGC/VLACs) Global VLGC fleet and age profile 7% 8% ~16% committed to 15% 397 captive trade 0-15 years total VLGC 15-20 years fleet 70% 20-25 years 25+ years 13 13 Fleet growth next 18 months represent <5% 11 of total VLGC fleet 10 Current VL
Slide 13: Looking ahead – What can you expect?
Looking ahead – What can you expect? Positive Enhanced Delivering on Market Outlook Shareholder Value strategy • Continued growth in global LPG • Adding more than 40% earnings • Continue to execute strategic export volumes power through the expansion of investments across the value 12 VLGCs to our o
Slide 14: Thank You
Investor Relations Telephone Thank You investor.relations@bwlpg.com +65 6705 5588 Ticker Address BWLPG 10 Pasir Panjang Road Mapletree Business City #17-02 LinkedIn Singapore 117438 linkedin.com/company/bwlpg