BW LPG Limited · OSL:BWLPG

BW LPG — 28th WLPGA Forum: Deciphering the Upstream (September 2015)

9 slides from BW LPG's conference presentation, Sep 30, 2015

  1. Slide 1: 28th WLPGA Forum: Deciphering the Upstream

    BW LPG 28th WLPGA Forum: Deciphering the Upstream September 30 2015 1

  2. Slide 2: Important information and disclaimer

    Important information and disclaimer 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 materials dis

  3. Slide 3: U.S. Shale – The Gamechanger

    U.S. Shale – The Gamechanger U.S. LPG Production By Product Type (MM Tons) U.S. LPG Production By PADD Region (MM Tons) 80 80 Propane Butane PADD 1 East Coast PADD 2 Midwest PADD 3 Gulf Coast 70 70 PADD 4 Rocky Mtns PADD 5 West Coast 60 60 50 50 40 40 30 30 20 20 10 10 - - Oil Production & Rig Produ

  4. Slide 4: US propane prices converging with natural gas prices

    US propane prices converging with natural gas prices, Saudi CP being reduced inline with crude oil Propane, Nat Gas & Crude Oil Prices 30 Propane, US Propane, Arabian Gulf Methane, US (HH spot price) WTI Crude Oil 25 20 USD / mmbtu 15 10 5 - 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201

  5. Slide 5: International propane price differentials and propylene spreads have narrowed

    International propane price differentials and propylene spreads have narrowed Asia - US Propane Spread ($ Per Ton) $1,400 $700 Spread (RHS) AFE + 2 Spot MB $1,200 $600 $500 $1,000 $400 $800 $300 $600 $200 $400 $100 $200 - - ($100) Asia Propane - Propylene Spread ($ Per Ton) $1,800 $700 Spread (RHS)

  6. Slide 6: VLGC Fleet Growth & Rates

    VLGC Fleet Growth & Rates Fleet age: 10.4 years Orderbook: 78 vessels / 44% of delivered fleet RoY 2015 Deliveries: 15 vessels 2016 Deliveries: 48 vessels 2017 Deliveries: 15 vessels Annual VLGC Fleet Growth vs. VLGC TCE Rates 30% $100,000 Fleet Growth 25% Fleet Growth Forecast $80,000 20% TCE Rates

  7. Slide 7: Increasing Distances Favor VLGC Demand

    Increasing Distances Favor VLGC Demand Today Tomorrow Traditional VLGC Trade Future Assumed VLGC trade Arabian Gulf - Asia US - Asia (JP) (JP) (Panama Canal) Round trip sailing Round trip sailing time: 36 days time: 50 days (+39% compared to main VLGC trade) Growing VLGC Trade Future Expected VLGC t

  8. Slide 8: What is on the horizon?

    STRICTLY PRIVATE & CONFIDENTIAL What is on the horizon? SHIPPING • >20% VLGC fleet growth p.a. this year & next LPG PRICES  LPG prices have held up relative to oil following Q2 weakness LPG  2015 U.S. production growth of 6% PRODUCTION LPG EXPORTS  U.S. LPG export capacity reaching almost 40 mill

  9. Slide 9: Thank You

    Ww BW LPG Thank You

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