Bw Lpg Limited · OSL:BWLPG
Bw Lpg — Q3 2019 Earnings Presentation
25 slides from Bw Lpg's earnings presentation, 2019
Slide 1: Third Quarter 2019 Earnings Presentation
Third Quarter 2019 j ntation i _ Earnings Presentatio | ts
Slide 2: Disclaimer and Forward-looking Statements
Disclaimer and Forward-looking Statements This presentation is not for public release, publication or distribution (directly or indirectly) in or to the United States, Canada, Australia or Japan. It is not an offer of securities for sale in or into the United States, Canada, Australia, the Hong Kong
Slide 3: Agenda
Agenda Highlights Key Financials Market Dynamics Financial Highlights Summary & Outlook Q&A
Slide 4: Highlights
Highlights ■ Highest ever quarterly net profit of USD 117 million ■ Fleet wide VLGC freight rates averaged USD 48,100 per day, supported by overall strong US LPG exports and high geographical LPG price spreads ■ For 1H 2019, an interim dividend of $0.10 per share or USD 14 million was paid on 13 Sep
Slide 5: Key Financials
Key Financials YTD YTD Q3 2019 Q3 2018 September September 2019 2018 VLGC Daily TCE1 $48,100 $20,200 $30,100 $17,500 LGC Daily TCE1 $16,700 $6,600 $14,300 $10,300 TCE income (USD million) 185 82 356 216 EBITDA (USD million) 149 35 245 68 Profit/(Loss) after tax (USD million) 117 (3) 120 (38) Earning
Slide 6: Baltic VLGC Index (USD/ton)
Timing the Cycle 1 2013 – 2015: Strong freight market 2 2016 – Q1 2019: Poor freight market 3 Now to 2020: Market recovery Baltic avg. TCE: US$ 67,300/day Baltic avg. TCE: US$ 17,000/day Today’s market level: US$ 65,000/day 27 owned VLGC’s with an average Contract coverage stood at 75% whe
Slide 7: Commercial Performance Q3 2019 VLGC Fleet
Commercial Performance Q3 2019 VLGC Fleet Calendar Days Available Days Spot Market Index June to August – Baltic VLGC $58,4005 Availability (excl. waiting time) 99.4% Spot 86.3% $52,1003 $51,2002 (excl. waiting time) (incl. waiting time) $48,100 $48,400 per day1 per day2 Time Charter 12.2% $28,100 1
Slide 8: Third Quarter 2019 Seaborne LPG Trade Overview
Third Quarter 2019 Seaborne LPG Trade Overview Total seaborne LPG trade up 14% year on year due to export growth in North America, supported by higher imports from Asia Quarterly seaborne LPG imports by country/region (Million tons) Comments Q3 2018 Q3 2019 Imports 6 ■ Chinese LPG imports remained s
Slide 9: Global LPG Exports by VLGCs
Global LPG Exports by VLGCs LPG exports by region 2018 – 2025 (Million tons) 1 2015 - 2020 2 2020 onwards US shale revolution has enabled rapid US exports growth normalises rise in US NGL production at CAGR 4% 100 US is estimated to surpass Middle East, 90 becoming the largest LPG exporters US expor
Slide 10: US LPG Net Exports
US LPG Net Exports EIA has further revised 2019 US LPG net export upwards with exports remaining strong and expected to grow by 23.4% to 37 million tons US LPG snapshot (Million tons) 100 US Production US Domestic Consumption Net Exports + Net Exports YoY growth 80 (+7) 44 (+7) 37 60 30 (+3) (+6) (+
Slide 11: Global LPG Imports by VLGCs
Global LPG Imports by VLGCs LPG imports by region 2018 – 2025 (Million tons) 2018 2025 60 50.1 50 Million tons per year (by VLGCs) 40 36.8 30 20 15.1 11.9 9.8 9.0 10 8.3 5.8 4.6 4.5 4.0 2.3 0 Far East Indian Ocean Southeast Asia Mediterranean Europe Latin America Source: IHS Waterborne, NGL Strategy
Slide 12: Global VLGC & BW LPG Fleet Profile
Global VLGC & BW LPG Fleet Profile 278 ships on water with 13 ships delivered as of October 2019. Orderbook at 41 ships (15%) with expected deliveries from 2019 to 2021 Global VLGC fleet profile — average age: 10 years BW LPG VLGC market share1 of 15% 350 315 BW LPG VLGC NB 55 299 Other VLGC NB 35 2
Slide 13: BW LPG is Ready for IMO 2020
BW LPG is Ready for IMO 2020 BW LPG has been proactive towards the upcoming regulations, with a range of balanced options to comply with the IMO 2020 Working with oil majors/suppliers on testing and securing compliant IMO 2020 fuels options Cooperated with MAN B&W to develop and ordered the firs
Slide 14: Financial Highlights
Financial Highlights Net profit on the rebound Positive EBITDA through cycle lows EBITDA IFRS 16 Impact $400 $500 $326 $300 $256 $400 Millions of USD Millions of USD $200 $126 $120 $300 $100 $24 ($45) ($72) $200 $0 ($100) $100 ($200) $0 2013 2014 2015 2016 2017 2018 YTD 2019 2013 2014 2015 2016 2017
Slide 15: Third Quarter 2019 Income Statement
Third Quarter 2019 Income Statement Income statement (Figures in USD thousands) Q3 2019 Q3 2018 YTD September 2019 YTD September 2018 Revenue 262,178 142,671 556,400 367,499 Voyage expenses (77,508) (60,843) (200,678) (151,227) TCE income 184,670 81,828 355,722 216,272 Net gain from commodity contra
Slide 16: Third Quarter 2019 Balance Sheet & Cash Flows
Third Quarter 2019 Balance Sheet & Cash Flows Balance sheet (Figures in USD thousands) 30 September 2019 31 December 2018 Total non–current assets 2,155,081 2,071,098 Total current assets 259,776 188,846 Total assets 2,414,857 2,259,944 Total shareholders’ equity 1,063,899 983,625 Total non–current
Slide 17: Third Quarter 2019 Liquidity Position and Outstanding Debt
Third Quarter 2019 Liquidity Position and Outstanding Debt Repayment profile2 Lease Liabilities and Trust Receipts - o/s $172m $700m Competitive margins $290m ECA 2028 - o/s $245m $628m All in cost of financing Libor +1.77% $150m Term loan 2023 - o/s $123 $600m $200m Revolving credit facility (RCF
Slide 18: VLGC Market Outlook
VLGC Market Outlook LPG Exports LPG Imports Fleet Supply Ton-mile Freight Rates VLGC exports from North In the third quarter, one Five more VLGCs to be Ton-mile demand is VLGC rates remained strong America are estimated to planned Chinese Propane delivered in the remainder of estimated to increase,
Slide 19: Q&A
Q&A 19
Slide 20: Appendix
Appendix 20
Slide 21: Charter Portfolio 2019 – 2020
Charter Portfolio 2019 – 2020 YTD 2019 Q4 2019E 2020E Q3 2019 VLGC segment VLGC segment Days % of Total Days % of Total Days % of Total Days % of Total Total days (Net of offhire) 11,440 100% 3,654 100% 14,539 100% Total days (Net of offhire) 3,755 100% Time charter 1,560 14% 470 13% 658 5% Time cha
Slide 22: BW LPG Fleet Development (Detailed)
BW LPG Fleet Development (Detailed) Timeline based on current contracts 1 2 1 1 2 1 1 1 1 1 3 42 38 36 35 35 35 8 8 9 9 6 6 Dec 2017 Q1 Q2 Q3 Q4 Dec 2018 Q1 Q2 Q3 Q4 Dec 2019 2020 Dec 2020 2021 Dec 2021 2022 Dec 2022 2018 2018 2018 2018 2019 2019 2019 2019 Chartered-in / Bareboat fleet Owned fleet C
Slide 23: Fleet List
Fleet List Modern fleet of 49 vessels built at leading shipyards (as of 30 September 2019) Owned VLGCs (100% Ownership) Chartered / Bareboat VLGCs Name Year Shipyard Name Year Shipyard Name Year Shipyard Charter type BW Aries 2014 Hyundai H.I. BW Malacca 2016 DSME Berge Nantong 2006 Hyundai H.I. Tim
Slide 24: Glossary of Terms
Glossary of Terms Terms Explanation Time Charter Charter hires with a fixed hire rate for a fixed duration (term of charter) Spot Charter hires negotiated on spot/market rates Available Days Calendar days less planned and unplanned technical offhire days Commercial Available days less commercial wai
Slide 25: For more information please visit our official website
For more information please visit our official website for BW LPG business news, financial results, presentations, company reports and the latest share price. Investor Relations investor.relations@bwlpg.com Telephone +65 6705 5588 Ticker BWLPG Linkedin https://www.bwlpg.com/investor-centre https://s