Bw Lpg Limited · OSL:BWLPG
Bw Lpg — Q1 2015 Earnings Presentation
24 slides from Bw Lpg's earnings presentation, May 19, 2015
Slide 1: Q1 2015 Results Presentation
BW LPG Q1 2015 Results Presentation 19 May 2015 1
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
Slide 3: Contents
Contents • Q1 2015 Business Highlights……………………………………………………………………..……………………………………………………………………..4 • Q1 2015 Financial Highlights……………………………………………………………………..……………………………………………………………………..5 • Subsequent events YTD 2015………………………………………………………………………………………….……………………………..…………..…….6 • Market situation: export tr
Slide 4: First quarter 2015 highlights
First quarter 2015 highlights Q1 2015 saw another strong financial performance for BW LPG, in what has traditionally been a relatively soft time of year – EBITDA was USD 80.4 million – NPAT was USD 57.3 million The AGM has approved a 2nd half 2014 dividend of 100% NPAT: USD 1.15 per share, provi
Slide 5: First quarter 2015 financial highlights
First quarter 2015 financial highlights TCE earnings were USD 130.6 million – 30% above Q1 2014 EBITDA was USD 80.4 million – 56% above Q1 2014 EBIT was USD 61.8 million – 78% above Q1 2014 Net profit of USD 57.3 million – 86% above Q1 2014 Key metrics: Q1 Rolling 2015 12 Months EPS1 $ 0.4
Slide 6: Subsequent events
Subsequent events On 10 April 2015, the Group entered into ship building contracts with Daewoo Shipbuilding and Marine Engineering (DSME) for four VLGCs – The four VLGCs are expected to be delivered in the third and fourth quarters of 2016 – The cost of these vessels, including interest and delive
Slide 7: US LPG production & exports trending positively
US LPG production & exports trending positively Weekly U.S. Propane Production (Thousand Barrels per Day) 1,800 Weekly Production 1,600 60w MA 1,400 Export volume growth 1,200 continues to outstrip 1,000 production growth as surplus 800 600 volumes move to international 400 markets 200 - Weekly U.S.
Slide 8: US export growth outlook remains positive
US export growth outlook remains positive US LPG Production & Exports (mmtpa) 80.0 40.0 External Export Forecast Range 70.0 35.0 LPG Production (LHS) 60.0 30.0 LPG Production Forecast (LHS) (2014 - 2016 CAGR - 7%) U.S. LPG Exports (mmtpa) LPG Production (mmtpa) 50.0 25.0 LPG Exports (RHS) 40.0 20.0
Slide 9: Demand development remains robust
STRICTLY PRIVATE & CONFIDENTIAL Demand development remains robust • Mature markets such as Japan and Korea continue to show growth 2014 – 2017, driven by residential usage, petrochemical industry, and power generation • Rapidly developing markets see continued high growth: • China growth projected a
Slide 10: VLGC newbuild orderbook is large, but with few recent additions
VLGC newbuild orderbook is large, but with few recent additions Global LPG Fleet Development (>20k CBM) and Newbuild (May 2015) 300 49% 250 200 84 150 36% 100 10% 172 26 50 2 63 0 20 VLGC LGC MGC On Water On Order VLGC Fleet Profile1 60 50 Number of vessels 40 30 20 10 0 1980 1981 1982 1983 1984 198
Slide 11: BW LPG projects a fleet of 45 vessels by end-2016
BW LPG projects a fleet of 45 vessels by end-2016 BW LPG fleet growing through 2014-20161 Net changes to total fleet 5 4 45 36 2013 2014 2015 2016 Total Fleet (2016) BW LPG Fleet Outlook BW Aries, BW Carina, BW Gemini, and BW Leo out of the 12 VLGC newbuild program have been delivered The remain
Slide 12: Q1 2015 income statement
Q1 2015 income statement Figures in USD thousands (Reviewed) (Reviewed) Q1 2015 Q1 2014 Revenue 167,996 150,760 Voyage expenses (37,424) (50,369) TCE income 130,572 100,391 Other operating income 253 835 Charter hire expense (23,879) (24,249) Other operating expenses (26,522) (25,452) Operating prof
Slide 13: EBITDA cumulative trend
EBITDA cumulative trend Reviewed figures in USD millions YTD EBITDA development Comments 350 VLGC TCE income was in line with expectations with TCE per day at USD 41,300 for Q1 – Strong deployment of vessels under COA contracts in the 300 first quarter of 2015, including final liftings under exist
Slide 14: Q1 2015 balance sheet and cash flow
Q1 2015 balance sheet and cash flow Figures in USD thousands (Reviewed) (Audited) Balance sheet 31 Mar 2015 31 Dec 2014 Total non-current assets 1,647,892 1,490,994 Total current assets 154,824 173,070 Total assets 1,802,716 1,664,064 Total shareholders’ equity 1,133,616 1,080,954 Total non-current
Slide 15: Financing
Financing Figures in USD millions Gross debt 625.2 Available liquidity of USD 239.1 million Cash (49.1) Net debt 576.1 700 600 500 400 300 200 100 0 2015 2016 2017 2018 2019 2020 onwards ECA facility Finance lease Term loan facility Revolving credit facility 15
Slide 16: Summary and outlook
Summary and outlook The LPG export market continued to grow in Q4 2014 and Q1 2015 notwithstanding the low oil price environment With strong continuing LPG production and midstream invesment, and healthy LPG import demand development, the outlook remains positive for export growth Q1 2015 has
Slide 17: Q&A session
Section 1 Q&A session Business Update
Slide 18: Appendix
Section 1 Appendix Update Business
Slide 19: BW LPG fleet development (detailed)
BW LPG fleet development (detailed) Timeline based on current contracts NB 2353, NB 2351, NB 2354 NB 2352 BW Carina, NB 2736, 2 BW Leo, NB 2724 NB 2737 2 BW Gemini, NB 2723 Berge Summit 1 2 BW Aries (Q4) BW Sakura 1 2 1 1 3 1 Reimei 1 2 Berge Summit G. Symphony Gas Capricorn, (Q2) Vermilion First 38
Slide 20: Long-term contract portfolio 2015 through 2018 (value)
Long-term contract portfolio 2015 through 2018 (value) Review of achieved TCE YTD Mar 2015 and fixed income outlook VLGC YTD Mar 2015 ROY 2015E 2016E 2017E 2018E Voyage Charter 60,578 COA-Spot 38,076 COA-Fixed 40,154 36,684 35,821 35,987 Time Charter-Out 37,477 36,376 34,790 34,069 30,850 LGC YTD Ma
Slide 21: Long-term contract portfolio 2015 through 2018 (ship days)
Long-term contract portfolio 2015 through 2018 (ship days) VLGC YTD Mar 2015 ROY 2015E 2016E 2017E 2018E VLGC Available days 4,527 7,863 9,263 12,146 Time charter income accounted for Voyage Charter 387 29% of the available days for YTD COA-Spot 263 Mar 2015 COA-Fixed 1,316 2,216 2,731 2,660 For
Slide 22: Charter-in portfolio
Charter-in portfolio Reviewed figures in USD thousands 3 Months ended 3 Months ended 3 Months ended 3 Months ended 3 Months ended 31 Mar 2014 30 Jun 2014 30 Sep 2014 31 Dec 2014 31 Mar 2015 27.1 25.2 26.3 53.6 27.2 43.9 43.6 40.6 24.6 30.6 26.5 18.8 17.3 13.4 6.0 TCE Charter EBITDA TCE Charter EBITD
Slide 23: Glossary of terms
Glossary of terms Terms Explanation Time Charter-Out : charter hires with a fixed hire rate for a fixed duration (term of charter) Voyage Charter : charter hires negotiated on spot/market rates COA-Spot : contracts of affreightment with variable element(s) in the hire rates for a specified range of
Slide 24: BW LPG
BW LPG