Slide 1: Earnings Presentation Q1 2021
Earnings Presentation Q1 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
Agenda 1. Highlights 2. Market 3. Performance 4. Summary & Outlook 5. Q & A 3 18 May 2021 Q1 2021 Results Aspire Towards a Better World
Slide 4: Our 15 LPG retrofits – 1 million tons of CO2 saved
Our 15 LPG retrofits – 1 million tons of CO2 saved! First-mover Decarbonise Investment Potential ▪ BW LPG with four VLGCs on ▪ Newbuilds produce 35x more ▪ Over half of VLGCs and 7,500 ships water, three at the yard, total 15 carbon emissions than retrofits with can be retrofitted with LPG dual fuel
Slide 5: Highlights and Outlook
Highlights and Outlook Commercial Performance Financial Performance Dividends $44,400 97% $71M $0.51 $0.18 $25M TCE per available day Commercial utilisation Net profit after tax Earnings per share Dividend per share Total $43,300 $330M 42% TCE per calendar day Available liquidity Net leverage ratio
Slide 6: Key Financials
Key Financials Continuing our track record of delivering best in class returns with 22% return on equity Q1 2021 Q1 2020 VLGC Daily TCE1 $43,300 $42,300 VLGC Daily OPEX2 $7,800 $7,900 TCE income (in USD million) $150 $162 EBITDA (in USD million) $113 $126 Profit after tax (in USD million) $71 $81 EP
Slide 7: Market
Market 7 18 May 2021 Q1 2021 Results Aspire Towards a Better World
Slide 8: VLGC Market Outlook
VLGC Market Outlook Continue to hold a positive view for the medium term VLGC market, driven by shipping inefficiencies LPG Supply LPG Demand Fleet Capacity Freight Rates US: Production and exports have Retail: Recent lock-down in India Inefficiencies continue to reduce We have fixed approximately 8
Slide 9: Q1 2021 Seaborne LPG Trade Overview
Q1 2021 Seaborne LPG Trade Overview Chinese imports have recovered, while Indian imports continue to grow Q1 2021 seaborne LPG exports by country/region Q1 2021 seaborne LPG imports by country/region 14 6 12.4 12 10.9 4.8 5 4.5 9.2 4.1 10 3.9 8.5 4 3.7 8 2.9 2.9 2.9 3 6 2.3 2.2 2.0 2 1.7 4 2.4 1.8 1
Slide 10: US LPG Net Exports
US LPG Net Exports EIA estimates US LPG exports to remain at high levels in 2021 and 2022 US LPG snapshot 100 US Production US Domestic Consumption Net Exports 80 Million tons (MT) 37 46 47 47 30 60 18 23 27 12 90 90 93 87 40 78 66 68 70 60 44 46 45 47 48 44 44 44 20 43 0 2014 2015 2016 2017 2018 20
Slide 11: VLGC Fleet Profile
VLGC Fleet Profile Orderbook at 20% 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 candidates VLGC count at year end 50 362 400 320 336 62 303 265 282 241 260 300 40 BW LPG 199 VLGC Fleet
Slide 12: Performance
Performance 12 18 May 2021 Q1 2021 Results Aspire Towards a Better World
Slide 13: Commercial – Q1 2021 Performance
Commercial – Q1 2021 Performance Achieved 97% commercial utilisation in Q1; generated TCE revenue of USD 44,400 per available day TCE by calendar days TCE by available days $43,300/ day1 $44,400/ day2 64% Spot $51,5003 (excl. waiting time) $48,9002 (incl. waiting time) 97% Available days Time Charte
Slide 14: Commercial – Time Charter Portfolio Overview
Commercial – Time Charter Portfolio Overview Time charter-out coverage for 2021 at 34% with an average rate of USD 33,700 per day Time charter-out Time charter-in Quarterly Yearly Quarterly Yearly 40% 34% 14% 35% 33% 29% 16% 14% 14% 15% 12% 12% 12% 12% 12% 12% 8% 8% 5% 4% $39 $47 $42 $34 $18 $10 $6
Slide 15: Technical – Q1 2021 Performance
Technical – Q1 2021 Performance Pioneering LPG propulsion engine retrofitting Limited impact from COVID-19 Safe and reliable operations ▪ First four LPG retrofits successfully completed; 11 retrofits ▪ Emotional and financial support provided to ▪ Flawless cargo operations - 311 port calls remain in
Slide 16: Financial – Income Statement
Financial – Income Statement Income statement (Figures in USD thousands) Q1 2021 Q1 2020 Net income from spot voyages 111,093 140,254 Net income from time charter voyages 38,993 21,703 TCE income 150,086 161,957 Net (loss)/gain from commodity contracts (2,421) 528 Fair value gains from equity financ
Slide 17: Financial – Balance Sheet and Cash Flows
Financial – Balance Sheet and Cash Flows Balance sheet (Figures in USD thousands) 31 March 2021 31 December 2020 Vessels and dry docking 1,699,865 1,754,338 Other non–current assets 162,492 287,589 Total current assets 551,016 374,704 Total assets 2,413,373 2,416,631 Total shareholders’ equity 1,301
Slide 18: Financial – Highlights: Net Leverage Ratio
Financial – Highlights Net leverage ratio down to its lowest level in five years at 42% with the highest available liquidity to-date of USD 330 million Net profit after tax EBITDA 400 326 500 300 274 256 244 400 200 300 USD millions 126 USD millions 100 71 200 430 399 414 24 (72) 340 (45) 0 100 210
Slide 19: Financial – Financing Structure and Repayment Profile
Financial – Financing Structure and Repayment Profile No major balloon payments in the next five years Financing structure1 Repayment profile1 $280m Trade Finance Facilities - o/s $24m $290m ECA 2028 - o/s $218m 250 $300m Revolving credit facility (RCF) - o/s $40m $158m Term loan 2026 - o/s $89m 200
Slide 20: Q&A
Q&A CEO Anders Onarheim CFO Elaine Ong EVP (Commercial) Niels Rigault EVP (Technical and Operations) Pontus Berg 20 18 May 2021 Q1 2021 Results Aspire Towards a Better World
Slide 21: Contact Us
Contact Us 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 21 18 May 2021 Q1 2021 Results Aspire Towards a Better World
Slide 22: Appendix
Appendix 22 18 May 2021 Q1 2021 Results Aspire Towards a Better World
Slide 23: VLGC Charter Portfolio 2021 – 2022
VLGC Charter Portfolio 2021 – 2022 Our contract coverage stands at 34% for 2021 (as of 31 March 2021) Q1 2021 Q2 2021E Q3 2021E Q4 2021E 2021E 2022E Owned days 2,930 3,291 3,312 3,312 12,845 13,140 Time charter in days 540 546 551 460 2,097 1,825 Total calendar days 3,470 3,837 3,863 3,772 14,942 14
Slide 24: Fleet Environmental Data
Fleet Environmental Data Annual Efficiency Ratio (AER) Energy Efficiency Operational Indicator (EEOI) 9.0 8.6 8.6 8.6 19.0 18.5 g CO2 / (tonne ⋅ nautical 8.3 8.3 8.3 8.3 18.3 g CO₂ / (tonne ⋅ nautical 8.5 8.1 18.5 17.9 18.0 7.8 7.8 18.0 17.6 8.0 7.7 7.5 7.4 7.4 7.5 7.4 17.5 16.8 miles) 7.5 17.0 16.5
Slide 25: Fleet Safety Statistics
Fleet Safety Statistics Safety and Zero Harm onboard remain our key focus, especially during challenging times Safety Statistics 1.40 TRCF 12 Month Rolling Average (MRA) 1.19 1.20 1.09 1.09 1.03 0.95 0.97 0.96 1.00 0.93 0.84 0.86 0.82 0.82 0.80 0.60 LTIF 12 Month Rolling Average (MRA) 0.40 0.27 0.27
Slide 26: BW LPG Fleet Development
BW LPG Fleet Development Timeline based on current contracts 1 5 1 1 1 1 1 2 3 1 2 1 36 32 36 36 36 36 9 10 6 6 6 4 Dec 2019 Q1 Q2 Q3 Q4 Dec 2020 Q1 Q2 Q3 Q4 Dec 2021 2022 Dec 2022 2023 Dec 2023 2024 Dec 2024 2020 2020 2020 2020 2021 2021 2021 2021 Chartered-in / Bareboat fleet Owned fleet Charter e
Slide 27: Fleet List
Fleet List Modern fleet of 46 vessels built at leading shipyards (as of 31 March 2021) 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 ch