Bw Lpg Limited · OSL:BWLPG
Bw Lpg — Q1 2020 Earnings Presentation
34 slides from Bw Lpg's earnings presentation, May 26, 2020
Slide 1: First Quarter 2020 Earnings Presentation
First Quarter 2020 Earnings Presentation 26 May 2020
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
1. Highlights AGENDA 2. Market Review 3. Commercial Update 4. Technical Update 5. Financial Update 6. Summary & Outlook 7. Q & A
Slide 4: Highlights
Highlights ▪ Achieved VLGC freight rates of USD 42,300 per day, generating a Net Profit after Tax of USD 81 million or an Earnings per Share of USD 58 cents (NOK 5.97) ▪ Declared Q1 2020 cash dividend of 20 cents per share amounting to USD 28 million Events occurring after 31 March 2020 ▪ Secured fi
Slide 5: Key Financials
Key Financials Q1 2020 Q1 2019 ▪ Fleet wide VLGC freight rates averaged USD 42,300 per day VLGC Daily TCE1 $42,300 $15,100 ▪ Spot earnings of USD 45,100 per day Fleetwide Daily OPEX $7,661 $7,261 ▪ Time charter earnings of USD 34,600 per day TCE income (in US$ million) 162 60 ▪ Profit for the quarte
Slide 6: Market Review
Market ReEvIEW
Slide 7: VLGC Market Outlook
VLGC Market Outlook LPG Supply LPG Demand Fleet Capacity Freight Rates LPG exports in the near term are LPG imports in the near term are 12 VLGCs have been delivered as Near term rates are supported by supported by: supported by: of April 2020; global VLGC fleet the lagged effect of production Short
Slide 8: First Quarter 2020 Seaborne LPG Trade Overview
First Quarter 2020 Seaborne LPG Trade Overview Total seaborne LPG trade increased 2% year over year due to strong export growth from North America. The gains were offset by the decrease in exports from the Middle East and other regions Quarterly seaborne LPG imports by country/region (Million tons)
Slide 9: US LPG Net Exports
US LPG Net Exports EIA has revised its 2020 and 2021 net exports downward due to the decline in oil prices US LPG snapshot (Million tons) 100 US Production US Domestic Consumption Net Exports + Net Exports YoY growth 80 37 (+7) 43 (+7) 38 (-5) 30 (+3) 60 18 (+6) 24 (+6) 27 (+3) 12 87 90 85 40 78 68
Slide 10: VLGC Fleet Profile
VLGC Fleet Profile 294 ships on water with 12 ships delivered within Q1 2020. Orderbook at 35 ships or 12% Global VLGC fleet profile — average age: 9.8 years BW LPG VLGC market share of 14% 50 400 Other VLGC NB 315 321 302 282 260 265 300 35 40 241 199 156 164 200 BW LPG 141 143 30 VLGC Fleet 47 100
Slide 11: Commercial Update
CommerRcIAL UppaTE
Slide 12: Commercial Performance
Commercial Performance Calendar Days Available Days Availability 97.3% Spot 82.0% $46,7003 (excl. waiting time) $45,1002 (incl. waiting time) $42,300 $43,500 per day1 per day2 15.1% Time Charter $34,600 2.9% Offhire 2.7% Waiting 97.1% Commercial4 [1] TCE rates per day are inclusive of both commercia
Slide 13: Time Charter Portfolio Overview
FREIGHT RATES Time Charter Portfolio Overview Time charter out coverage for 2020 at 16% at an average rate of USD 36,300 per day 1 Time charter out 2 Time charter in Quarterly Yearly Quarterly Yearly 17% 15% 15% 15% 16% 14% 15% 14% 13% 13% 13% 13% 13% 13% 13% 10% 4% 5% 3% 3% 19 22 21 20 12 4 3 3 82
Slide 14: Technical Update
TECHNICAL UPDATE
Slide 15: Technical Highlights
Technical Highlights IMO 2020 - bunker availability and fuel quality LPG dual-fuel retrofitting ▪ Bunkering and testing of compliant fuel commenced in ▪ Four vessels to be retrofitted within 2020 the second half 2019 to ensure that the BW LPG fleet ▪ Eight more planned for 2021 would be fully compli
Slide 16: Fleet Safety Statistics
Fleet Safety Statistics Our Zero Harm initiative reinforces our safety focused culture, ensuring that safety is at the forefront of our maritime operations 1.40 1.20 1.14 1.16 1.20 1.05 1.00 0.95 0.94 0.94 0.92 0.89 0.81 0.81 0.80 0.74 TRCF 12 Month Rolling Average (MRA) 0.60 0.41 0.41 0.40 0.39 0.4
Slide 17: Fleet Environmental Data
Fleet Environmental Data IMO 2020 led to the immediate reduction of SOx emissions with the switch to cleaner fuel Fuel Consumption Generated Emissions 1 Fuel Consumption1 Generated Emissions1 Used high-sulfur fuel oil (HSFO) Used very-low sulfur fuel oil (VLSFO) CO₂ NOx (right axis) SOx (right axis)
Slide 18: LPG Propulsion - Sustainability
LPG Propulsion - Sustainability ACHIEVEMENTS ECONOMIC ENVIRONMENTAL SUSTAINABILITY SUSTAINABILITY CLEANER FUEL LOWER EMISSIONS Improved Cost Efficiencies Savings LPG vs Compliant Fuel LPG vs Scrubbers Consumption down by ~10% Consumption down by ~15% Sulphur oxides down by ~99% Sulphur oxides down b
Slide 19: LPG Propulsion - Operational Benefits
LPG Propulsion - Operational Benefits 100% VLGC ports compatible ▪ ~1,800 m3 deck tanks are connected to the cargo system ▪ Cargo capacity ~2% higher than a standard VLGC vessel (additional 2x980m3 gross capacity) ▪ Cargo tanks and deck tanks can carry 86,000 m3 or 49,370 mt ▪ Deck tanks are able to
Slide 20: LPG Propulsion - Fuel Cost Benefits
LPG Propulsion - Fuel Cost Benefits Price differentials ▪ 10% and 15% lower consumption vs compliant fuel and scrubbers US$ per day US$ per year Payback time between Compliant fuel IRR savings savings (years) ▪ USD 20/ton fuel cost savings from replacing fuel oil barge with and Propane (US$/ton) loa
Slide 21: Financial Update
FINANCIAL UPDATE
Slide 22: Income Statement
Income Statement Income statement (Figures in US$ thousands) Q1 2020 Q1 2019 Net income from spot voyages 140,254 40,495 Net income from time charter voyages 21,703 19,712 TCE income 161,957 60,207 Net gain from commodity contracts 528 - Vessel operating expenses1 (29,635) (28,262) General and admin
Slide 23: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows Balance sheet (Figures in US$ thousands) 31 March 2020 31 December 2019 Vessels and dry docking 1,881,041 1,903,622 Other non–current assets 258,142 257,754 Total current assets 458,198 387,980 Total assets 2,597,381 2,549,356 Total shareholders’ equity 1,155,753 1,177,3
Slide 24: Financial Highlights
Financial Highlights Net profit on the rebound Positive EBITDA through cycle lows 400 EBITDA IFRS 16 Impact 326 500 300 274 256 32 400 US$ millions US$ millions 200 126 300 81 100 200 430 24 367 (45) (72) 340 9 0 100 210 136 126 104 117 (100) 0 2013 2014 2015 2016 2017 2018 2019 YTD 2020 2013 2014 2
Slide 25: Liquidity and Repayment Profile
Liquidity and Repayment Profile Repayment profile Lease Liabilities and Trust Receipts - o/s $228m $500m $290m ECA 2028 - o/s $236m Competitive margins $150m Term loan 2023 - o/s $83m ▪ All in cost of financing is Libor +1.77% $300m Revolving credit facility (RCF) - o/s $150m $400m $158m Term loan 2
Slide 26: Summary & Outlook
SUMMARY & OUTLOOK
Slide 27: Summary & Outlook
Summary & Outlook Summary ▪ Q1 2020 Net Profit after Tax of USD 81 million, resulting in an Earnings per Share of USD 58 cents (NOK 5.97) ▪ Declared Q1 2020 Cash Dividends of 20 cents amounting to USD 28 million. The shares will be traded ex-dividend from 2 June 2020 Events occurring after 31 March
Slide 28: Q&A
Q&A
Slide 29: Investor Relations
Investor Relations investor.relations@bwlpg.com Telephone +65 6705 5588 Ticker BWLPG Linkedin https://sg.linkedin.com/company/bwlpg BW LPG Limited 10 Pasir Panjang Road Mapletree Business City #17-02 Singapore 117438
Slide 30: Appendix
APPENDIX
Slide 31: VLGC Charter Portfolio 2020 – 2021
VLGC Charter Portfolio 2020 – 2021 Our contract coverage stands at 16% for 2020 (as of 31 March 2020) Q1 2020 Q2 2020E Q3 2020E Q4 2020E 2020E 2021E Owned and bareboat days 3,276 3,276 3,220 3,220 12,992 12,775 Time charter in days 502 546 551 460 2,059 1,825 Total calendar days 3,778 3,822 3,771 3,
Slide 32: BW LPG Fleet Development (Detailed)
BW LPG Fleet Development (Detailed) Timeline based on current contracts 1 1 1 1 1 1 3 38 36 35 35 35 35 8 9 9 6 6 6 Dec 2018 Q1 Q2 Q3 Q4 Dec 2019 Q1 Q2 Q3 Q4 Dec 2020 2021 Dec 2021 2022 Dec 2022 2023 Dec 2023 2019 2019 2019 2019 2020 2020 2020 2020 Chartered-in / Bareboat fleet Owned fleet Charter e
Slide 33: Fleet List
Fleet List Modern fleet of 47 vessels built at leading shipyards (as of 31 March 2020) Owned VLGCs (100% Ownership) Chartered / Bareboat VLGCs Name Year Shipyard Name Year Shipyard Name Year Shipyard Charter type BW Mindoro 2017 DSME BW Sakura 2010 Mitsubishi H.I. BW Yushi 2020 Mitsubishi H.I. Time
Slide 34: Glossary of Terms
Glossary of Terms Terms Explanation Time Charter Charter hires with a fixed hire rate for a fixed duration Spot Charter hires negotiated on spot/market rates Available Days Calendar days less planned and unplanned technical offhire days Commercial Utilisation Rate Available days less commercial wait