Slide 1: Earnings Presentation Q4 2022
Earnings Presentation Q4 2022 28 February 2023 ● BW LPG Earnings Presentation ● Q4 2022
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 No representation, warranty or undertaking, express or implied, is made by BW LPG, its This presentation and the information contained herein are not an offer of securities for
Slide 3: Agenda
Agenda 01 Highlights 02 Market 03 Performance 04 Q&A
Slide 4: 2022 Q4 Highlights and Market Outlook
2022 Q4 Highlights and Market Outlook Commercial Performance Financial Performance Return to Shareholders $55,000 98% $95M $0.69 $0.52 $69M TCE per available day Commercial utilisation Net profit after tax Earnings per share Dividend per share Total $53,300 3% $463M 24% $1.28 $172M TCE per calendar
Slide 5: Market
02 Market 5
Slide 6: VLGC Near Term Market Outlook
VLGC Near Term Market Outlook We reiterate our positive view for 2023 despite high newbuild deliveries Near term VLGC spot rate outlook: Houston – Chiba ($/day) Quarterly delivery schedule (Number of VLGCs) 120,000 16 14 100,000 12 80,000 10 60,000 8 12 6 13 40,000 11 4 8 8 20,000 6 6 2 4 2 2 2 0 0
Slide 7: 2022 Seaborne LPG Trade Overview
2022 Seaborne LPG Trade Overview Strong recovery in Middle Eastern exports and increasing US exports to Europe Seaborne LPG exports by country/region Seaborne LPG imports by country/region 60 30 53.0 54.5 24.6 50 25 23.2 42.3 Million tons (MT) Million tons (MT) 40 36.1 20 17.7 17.7 30 15 10.9 11.4 1
Slide 8: Continued Growth From Major Exporting Regions Expected in 2023
Continued Growth From Major Exporting Regions Expected in 2023 North America LPG exports by VLGCs Middle East LPG exports by VLGCs 60 60 50 50 Million tons (MT) Million tons (MT) 40 40 30 30 20 20 10 10 0 0 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 Seaborne expo
Slide 9: Global VLGC Fleet Profile
Global VLGC Fleet Profile Orderbook at 69 vessels (~20%) through to 2025 Global VLGC fleet profile: average age of ~11 years BW LPG VLGC market share1 of ~14% 50 500 Other VLGC NB 380 387 391 40 400 321 338 68 303 265 282 260 300 Number of VLGC 30 241 199 BW LPG 156 164 44 200 141 143 44 VLGC Fleet
Slide 10: VLGCs Owned and Operated by BW LPG as of 28 February 2023
48 VLGC’s Owned and Operated by BW LPG as of 28th February 2023 Name 21 BW LPG 100% ownership Year Shipyard Name 9 BW LPG Time charter in Year Shipyard Name 8 BW LPG India 52% ownership Year Shipyard Name 10 Year Operated Shipyard Participant BW Mindoro 2017 DSME 1 2020 Mitsubishi H.I. BW Pine 2011
Slide 11: Performance
03 Performance 11
Slide 12: Shipping Highlights
Shipping Highlights Ensuring long-term business profitability with accretive corporate actions Selling high ▪ Entered into agreements to sell BW Austria, BW Odin, and BW Thor 35% above Newbuild Equivalent ▪ Took advantage of the historically attractive Buying low USD/JPY exchange rate on the BW Kyot
Slide 13: Shipping – Performance
Shipping – Performance Achieved 98% commercial utilisation generating TCE revenue of USD 55,000 per available day 2022 Q4 performance Guidance Q1 2023 TCE by calendar days TCE by available days $53,300/ day1 $55,000/ day2 ▪ Fixed ~84% of our available fleet days at an Spot average rate of ~USD 56,00
Slide 14: Shipping – Time Charter In Portfolio
Shipping – Time Charter In Portfolio Chartered in nine1 vessels at ~$27,600/day Cash generation sensitivity for 2023 for 2023 $50 TC In vessels Charter Period Trades $40 Gas Zenith 2H 2024 Million USD $30 Oriental King 1H 2024 $20 Legend Prestige 2H 2023 $10 BW Messina2 1H 2023 Trade in spot market
Slide 15: Shipping – BW India Highlights
Shipping – BW India Highlights Business updates >36% of the Indian TC BW Loyalty Trading Spot market 8 modern Indian-flagged VLGCs BW Elm Till 2H 2023 BW Tyr Till 2H 2023 7 VLGCs are on Time BW Oak Till 2H 2023 time charter charter ~$35,000/day for BW Cedar Till 2H 2023 Strong and stable earnings po
Slide 16: Shipping – LPG Propulsion Scorecard 2022
Shipping – LPG Propulsion Scorecard 2022 Experience and collaboration ensures operational reliability 0 46K MT >$8M LTI LPG fuel used Fuel savings 27K MT ~15 % ~90 % CO2 emissions reduction CO2 emissions reduction PM10 emissions reduction ▪ Zero cases of Loss Time Injury (LTI) in 2022 ▪ Environmenta
Slide 17: Product Services – Expanding the Business
Product Services – Expanding the Business Expanded trading and shipping coverage Transaction price and trading capital Impact on financial reporting ▪ Yearly run rate of approximately 5 ▪ Vilma’s portfolio will be million tons of physical LPG Main assets include: consolidated at fair value Trading c
Slide 18: Financial Highlights
Financial Highlights Low leverage, strong liquidity, ready for growth opportunities Key Financials FY 2022 (USD million) Financial Ratios FY 2022 1. Gross profit: sum of TCE – income Shipping and Gross profit – Product Services Income Statement Earnings Yield4 22% 2. EPS (earnings per share) is comp
Slide 19: Financial – Segment Information
Financial – Segment Information FY 2022 (USD million) Shipping Product Services1 Consolidated Gross Revenue $834 $730 $1,564 Expenses ($350) ($646) ($996) Inter-segment $84 ($84) 0 Gross profit/(loss) $568 ($0) $568 Shipping Per Day Statistics (USD/Day) Product Services Statistics1 FY 2022 Daily TCE
Slide 20: Financial – Financing Structure and Repayment Profile
Financial – Financing Structure and Repayment Profile Ample liquidity at USD 463 million with a light debt position Total Available Liquidity Repayment profile1 USD (millions) 350 Undrawn amount under revolving credit facility 242 $522m Trade Finance Facilities - o/s $53m Cash2 221 Total available l
Slide 21: Q&A
04 Q&A 21
Slide 22: Q&A
Q&A CEO Anders Onarheim Deputy CEO & Head of Strategy Kristian Sørensen CFO Elaine Ong EVP (Commercial) Niels Rigault
Slide 23: 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 23
Slide 24: Appendices
05 Appendices 24
Slide 25: VLGC Charter Portfolio Overview
VLGC Charter Portfolio Overview Time charter-out coverage for 2023 at 30% at an average rate of USD 38,000 per day Time charter-out Time charter-in Quarterly Yearly Quarterly Yearly 32% 32% 30% 30% 24% 24% 22% 24% 18% 13% 14% 11% 9% 9% 6% 7% 3% 3% 3% 4% $41 $40 $35 $27 $6 $3 $3 $3 $143 $16 $22 $22 $
Slide 26: Fleet Safety Statistics
Fleet Safety Statistics Safety and Zero Harm onboard remain our key focus, especially during challenging times TRCF 12 Month Rolling Average (MRA) 1.40 1.31 1.32 1.18 1.20 1.04 1.05 1.06 1.07 1.00 0.77 0.77 0.80 LTIF 12 Month Rolling Average (MRA) 0.62 0.60 0.40 0.31 0.29 0.29 0.29 0.20 0.15 0.15 0.
Slide 27: Shipping Segment Charter Portfolio 2023-2024
Shipping Segment Charter Portfolio 2023-2024 Overall contract coverage stands at 30% for 2023 (as of 31 December 2022) Q1 2023E Q2 2023E Q3 2023E Q4 2023E 2023E 2024E Owned days 2,610 2,517 2,576 2,622 10,325 10,614 Time charter in days 810 786 550 413 2,559 1,091 Total calendar days 3,420 3,303 3,1
Slide 28: BW LPG India Charter Portfolio 2023-2024
BW LPG India Charter Portfolio 2023-2024 Contract coverage stands at 82% for 2023 (as of 31 December 2022) Q1 2023E Q2 2023E Q3 2023E Q4 2023E 2023E 2024E Owned days 720 728 736 736 2,920 2,928 Time charter in days – – – – – – Total calendar days 720 728 736 736 2,920 2,928 Offhire1 40 4 4 19 67 24
Slide 29: BW LPG Fleet Development
BW LPG Fleet Development Timeline based on current contracts 1 1 4 5 1 2 1 1 1 1 2 5 2 1 1 2 2 1 7 1 1 9 2 1 9 8 7 4 6 2 2 33 29 28 28 28 28 Dec 2021 Q1 Q2 Q3 Q4 Dec 2022 Q1 Q2 Q3 Q4 Dec 2023 2024 Dec 2024 2025 Dec 2025 2026 Dec 2026 2022 2022 2022 2022 2023 2023 2023 2023 Owned fleet Chartered-in f