Bw Lpg Limited · OSL:BWLPG
Bw Lpg — Investor Presentation (June 2024)
32 slides from Bw Lpg's investor presentation, June 2024
Slide 1: Investor Presentation June 2024
Investor Presentation June 2024 June 2024 ● Investor presentation
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 This presentation does not constitute or form part of any offer or invitation to purchase, IN PART, D
Slide 3: Agenda
Agenda 01 Company background 02 Company performance 03 Market overview 04 Appendix
Slide 4: Company Background
01 Company Background 4
Slide 5: BW LPG | A world leader in LPG shipping
BW LPG | A world leader in LPG shipping Pioneering the LPG retrofit propulsion technology - a disciplined approach to generating shareholder returns 29% ANNUAL RETURNS TO Integrated LPG company with INVESTORS2 SINCE IPO Playing a crucial role in the operations throughout the value- energy transition
Slide 6: BW Group | Heritage in energy and maritime logistics and infrastructure
BW Group | Heritage in energy and maritime logistics and infrastructure 453 Energy, Maritime Transportation & Infrastructure # of operated vessels across all segments Sustainable energy & technologies Solar / $13.9bn Gas Wind / Battery Market value of public investments1 Water / Upstream Bioenergy $
Slide 7: Generating Shareholder Returns
Generating Shareholder Returns Integrated and disciplined company with focus on profitability has provided shareholders with good returns Delivering on our strategy Since IPO, we have paid out 73% of our earnings as dividends Historical accumulated earnings per share and dividends per share Leveragi
Slide 8: Why BW LPG shares have attracted more attention from investors
Why BW LPG shares have attracted more attention from investors 1 2 3 4 5 Superior shareholder High dividend Highly competitive Strong underlying Important role in the returns yield energy source fundamentals energy transition BW LPG share price vs. LPG sector performance and Oslo Børs Shipping Index
Slide 9: Harvesting in shipping and capitalizing on adjacent growth opportunities
Harvesting in shipping and capitalizing on adjacent growth opportunities Profitable growth investments solidifying business model, albeit on a small scale compared to balance sheet Dividend focused $132m 22% dividend distributed Annualised in Q1 2024 dividend yield US listing 29th April Harvesting i
Slide 10: Continue to grow profitably in the value chain
Continue to grow profitably in the value chain Defining three distinct and inter-collaborating business units with shipping remaining at the core Expanding the platform for growth Product Services Shipping Infrastructure / Terminal Our trading arm Our CORE business Our value chain assets Integrated
Slide 11: Company Performance
02 Company Performance 11
Slide 12: Key financial highlights Q1 2024
Key financial highlights Q1 2024 Commercial Performance Key highlights $61,500 95% Strong Q1 performance contributed the healthy balance sheet with $661M of TCE income – Shipping Fleet utilisation per available day available liquidity and all-time low net leverage ratio of 7% $59,400 3% Declared a Q
Slide 13: Key financial metrics
Key financial metrics Strong earnings and ability to generate returns through the cycle TCE income - Shipping Operating Profit NPAT ($’000) ($’000) ($’000) $798 $524 $493 $551 $568 $466 $282 $271 $244 $239 $223 $186 $158 $150 $187 2020 2021 2022 2023 Q1 2024 2020 2021 2022 2023 Q1 2024 2020 2021 202
Slide 14: Shipping – Performance
Shipping – Performance Achieved 95% fleet utilisation generating TCE income - Shipping of $61,500 per available day 2024 Q1 performance Guidance Q2 2024 TCE income by calendar days TCE income by available days $59,400/ day1 $61,500/ day2 ▪ Fixed ~84% of our available fleet days at an average rate of
Slide 15: Product Services portfolio management
Product Services portfolio management PS aim to have a balanced portfolio, using paper derivatives extensively to manage risk Trading portfolio business model Europe Houston Flushing Physica Short term cargoes Asia l Sh Short term cargoes ipp US Gulf Middle Houston Chiba Cargo East Ras Tanura Chiba
Slide 16: Product Services – Performance
Product Services – Performance Strong Q1 trading performance resulting in a $33M gross profit and a $21M net profit 2024 Q1 Performance Book Equity $82M $33M Net asset value End of Q1 Gross Profit1 $21M $31M Net Profit2 Unrealised physical shipping3 Q1 Net profit: $21M $5M ~10% BW LPG VLGC cargoes A
Slide 17: Advancing our growth trajectory in India
Advancing our growth trajectory in India Our first investment has grown to be the country’s largest LPG shipping company ▪ Established in 2017 as a joint venture between BW LPG and Global United Shipping India Private Limited 8 India-Flagged VLGCs BW LPG India ▪ BW LPG India owns and operates India-
Slide 18: Market Overview
03 Market Overview 18
Slide 19: LPG market dynamics
LPG market dynamics Arbitrage composition illustration 2023 | Significant US – Far East LPG price differentials, driven by super profit in the shipping part of the value chain Capturing Cargo VLGC shipping Import terminals entity US-Far East Houston Far East arbitrage January 2024 | US-Far East LPG
Slide 20: Growth Story Continues
Growth Story Continues Growth Expected in LPG Exports and Imports North American LPG exports Middle East LPG exports China LPG Imports 70 VLGC only VLGC only 62 45 42 57 39 40 45 41 60 53 40 37 40 36 34 33 50 46 35 30 31 35 33 44 39 30 30 27 Million tons Million tons 40 34 25 Million tons 25 25 21 2
Slide 21: VLGC Fleet and Newbuildings
VLGC Fleet and Newbuildings Sharply abating number of newbuildings in 2H 2024 and 2025 giving good visibility Quarterly delivery schedule 14 VLGC fleet Deliveries slowing down 12 • 394 vessels on water • Modest fleet growth next 18 10 • 15% of VLGC fleet older than months 20 years # of VLGCs 8 13 13
Slide 22: VLGC Near Term Market Outlook
VLGC Near Term Market Outlook Spot earnings have recovered from the seasonally characteristic rate drop Near term VLGC spot rate outlook: Houston – Chiba US – Far East arbitrage 140 450 400 120 350 USD Thousands / day 100 300 USD / ton 80 250 60 200 150 40 100 20 50 0 0 Jan Feb Mar Apr May Jun Jul A
Slide 23: BW LPG fleet comparison
BW LPG fleet comparison BW LPG fleet composition has the highest proportion of dual-fuel propulsion vessels among its peers 42 VLGCs 12 VLGCs3 26 VLGCs6 19 owned 7 Time 8 part- 10 21 owned 4 Time 4 operated VLGC charter - in owned VLGC operated1 12 owned VLGCs VLGCs charter - in 13 Scrubbers 17 Dual
Slide 24: Appendix
04 Appendix 24
Slide 25: Balance sheet
Balance sheet Balance Sheet ($ million) 31 March 2024 31 December 2023 • Total assets amounted to $2,305 million of which $1,433 million represented the carrying value of Cash & cash equivalents 328 288 the vessels (including dry docking), and $148 million represented the carrying value of right-of-
Slide 26: Income statement
Income statement Income Statement ($ million) Q1 2024 Q1 2023 FY 2023 FY 2022 • Time Charter Equivalent (“TCE”) income for the Net income from spot voyages 146.9 156.5 613.0 433.4 Shipping segment was US$186.5 million for Q1 2024 (Q1 2023: US$200.3 million). Revenue from time charter voyages 39.6 40
Slide 27: Cash flow statement
Cash flow statement Cash flow ($ million) Q1 2024 Q1 2023 FY 2023 FY 2022 • Cash flow from operating activities generated a net Operating cash flow 405.6 125.2 512.5 505.3 cash surplus of US$405.6 million as of 31 March Capital expenditure -62.9 -46.0 50.9 153.0 2024, of which US$221.6 million relat
Slide 28: Financial – Financing Structure and Repayment Profile
Financial – Financing Structure and Repayment Profile Ample liquidity at $661M with a light debt position Total Available Liquidity Repayment profile2 USD millions 350 Undrawn amount under revolving credit facility 347 $796M Trade Finance Facilities - o/s $19M Cash1 314 Total available liquidity 661
Slide 29: VLGCs and MGCs Operated by BW LPG as of June 2024
42 VLGCs and 2 MGCs Operated by BW LPG as of 17 June 2024 BW 19 Name BW Messina Mindoro Name Name BW LPG 100% Yearownership 2017 2017 Year Year Shipyard DSME DSME Shipyard Shipyard Name BW Yushi Name BW NameKizoku 1 71 BW LPG Time charter Year 2020 2019 Year Year in Shipyard Mitsubishi H.I. Mitsubis
Slide 30: LPG as a cleaner energy source
LPG as a cleaner energy source Increasing relevance of LPG in the global energy mix Efficient Clean Versatile Cheap ▪ Portable with low infrastructure ▪ One of the cleanest conventional ▪ Has more than 1,000 applications, ▪ LPG is cheap and affordable requirement fuels available across commercial, r
Slide 31: A Strong Leadership Team
A Strong Leadership Team Executive Management Team has deep experience in shipping and maritime solutions Kristian Sørensen Samantha Xu Knut-Helge Knutsen Prodyut Banerjee Iver Baatvik CEO and Interim Head of CFO VP & Head of Technical VP & Head of Operations VP & Head of Corporate Commercial Develo
Slide 32: 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 June 2024 ● Investor Presentation 32