Bw Lpg Limited · OSL:BWLPG
Bw Lpg — Q2 2016 Earnings Presentation
21 slides from Bw Lpg's earnings presentation, Aug 25, 2016
Slide 1: Second Quarter 2016 Earnings Presentation
SECOND QUARTER 2016 EARNINGS PRESENTATION 25 AUGUST 2016
Slide 2: Forward-looking Statements
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 materials distributed i
Slide 3: Agenda
Agenda Q2 2016 Highlights Market Dynamics Financial Update Summary & Outlook Q&A 3
Slide 4: Second Quarter 2016 Operating Highlights
Second Quarter 2016 Operating Highlights ■ VLGC market softness continued in Q2 2016 o Net Revenue was USD 99 million • VLGC Q2 2016 Daily TCE – $28,1001 • LGC Q2 2016 Daily TCE – $19,8001 o EBITDA was USD 52 million o Loss after tax was USD 56 million • Profit before impairment was USD 21 million ■
Slide 5: Second Quarter 2016 Financial Highlights
Second Quarter 2016 Financial Highlights ■ Net Revenue was USD 99 million ■ EBITDA was USD 52 million ■ Loss after tax was USD 56 million o Profit before impairment was USD 21 million ■ Key metrics: Share price on 30 June 2016 $ 3.79 12 Months Q2 2016 Rolling EPS1 $ (0.40) $ 1.42 EPS before impairme
Slide 6: Global VLGC & BW LPG Fleet Profile
Global VLGC & BW LPG Fleet Profile 235 ships on the water, 45 on order. The peak of the delivery cycle is now behind us. VLGC Fleet Profile [1] - Average Age: 8.9 Years BW LPG Market Share (Owned + Operated VLGCs) 50 6 45 39 >20 Years: 38 Vessels / 16% of Fleet 40 Other VLGC NB Number of VLGCs 35 30
Slide 7: Q2 2016 Seaborne LPG Trade Overview
Q2 2016 Seaborne LPG Trade Overview US exports grew 33% quarter on quarter while Chinese LPG imports increased by 22% Q2 2015/16 Seaborne LPG Exports by Country/Region (Mt) Comments 10 Q2 2015 Q2 2016 Exports 8 Middle Eastern export growth of 9% driven by Saudi & Emirati volumes 6 US LPG export
Slide 8: YTD 2016 Seaborne LPG Trade Overview
YTD 2016 Seaborne LPG Trade Overview US & Middle East driving LPG export growth while China, Korea & India have been growing imports the most ∆ in LPG Exports H1 2016 / H1 2015 (Million Metric Tons) ∆ in LPG Imports H1 2016 / H1 2015 (Million Metric Tons) United States China Middle East Korea North
Slide 9: U.S. LPG Supply – Demand Outlook
U.S. LPG Supply – Demand Outlook Production & exports keep increasing as domestic consumption declines U.S. LPG Snapshot (Mt) - EIA August 2016 Short Term Energy Outlook 80 2.0 70 3.2 29.8 25.7 18.5 60 5.8 11.7 1.4 1.8 50 0.4 40 79.5 77.2 73.7 68.5 30 59.9 54.4 56.0 53.7 53.3 50.3 51.2 52.6 50.9 49.
Slide 10: Q2 2016 Commercial Performance
Q2 2016 Commercial Performance Q2 2016 VLGC Segment Commercial Performance Q2 2016 LGC Segment Commercial Performance $45,000 TCE Rate ($ Per Day) % of Days (RHS) 60% $25,000 TCE Rate ($ Per Day) % of Days (RHS) 100% $40,000 $40,080 50% $22,490 51% $20,000 80% $35,000 $34,930 $19,820 79% $30,000 40%
Slide 11: Q2 2016 Income Statement
Q2 2016 Income Statement Figures in USD thousands (Reviewed) (Reviewed) (Reviewed) (Reviewed) Q2 2016 Q2 2015 H1 2016 H1 2015 Revenue 121,764 189,644 284,345 357,640 Voyage expenses (22,396) (34,931) (48,132) (72,355) TCE income 99,368 154,713 236,213 285,285 Other operating income 534 701 1,216 954
Slide 12: Q2 2016 Balance Sheet and Cash Flows
Q2 2016 Balance Sheet and Cash Flows Figures in USD thousands (Reviewed) (Audited) Balance sheet 30 June 2016 31 December 2015 Total non–current assets 1,948,222 1,908,586 Total current assets 146,878 201,175 Total assets 2,095,100 2,109,761 Total shareholders’ equity 1,075,096 1,170,719 Total non–c
Slide 13: Financing – Repayment Profile
Financing – Repayment Profile Figures in USD million As at 30 June 2016 Gross debt 949.7 Undrawn facilities 250.0 Cash (55.9) Cash 55.9 Net debt 893.8 Available liquidity 305.9 $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 - 2016 2017 2018 2019 2020 2021 onwards $400m ECA facility $221m ECA Facil
Slide 14: Summary and Outlook
Summary and Outlook ■ Q2 2016 Net Revenue of USD 99 million, EBITDA of USD 52 million and Loss after tax of USD 56 million, resulting in EPS of ($0.40) ■ Profit before impairment was USD 21 million and adjusted EPS was $0.15 ■ With the continued softness in the market, the Company has recognized imp
Slide 15: Q&A
Section 1 Q&A Business Update
Slide 16: Appendix
Section 1 Appendix Update Business
Slide 17: Charter Portfolio 2016 – 2018
Charter Portfolio 2016 – 2018 YTD Q2 2016 RoY 2016E 2017E 2018E Q2 2016 VLGC Segment VLGC Segment Days % of Total Days % of Total Days % of Total Days % of Total Days % of Total Total Days (Net of Offhire) 6,189 100% 6,629 100% 13,596 100% 13,123 100% Total Days (Net of Offhire) 3,152 100% Timechart
Slide 18: BW LPG Fleet Development (Detailed)
BW LPG Fleet Development (Detailed) Timeline Based on Current Contracts DSME NB 2351, BW Messina DSME NB 2352, (DSME NB 2354) MHI NB 2335, DSME NB 2353 MHI NB 2336 BW Tucana, 1 BW Volans 3 1 2 1 BW Broker 2 2 Yuyo Spirits Berge Ningbo, 1 Berge Nantong Reimei 37 32 37 37 37 37 8 7 6 6 4 4 Dec Q1 2016
Slide 19: Fleet List
Fleet List Modern fleet of 36 VLGCs / 5 LGCs / 6 newbuild VLGCs built at leading shipyards OWNED VLGCs CHARTERED VLGCs Name Year built Shipyard Ownership (%) Name Year built Shipyard Charter type BW Aries 2014 Hyundai H.I. 100% Berge Nantong 2006 Hyundai H.I. Time charter BW Austria 2009 DSME 100% B
Slide 20: Glossary of Terms
Glossary of Terms Terms Explanation Time : Charter hires with a fixed hire rate for a fixed Charter duration (term of charter) CoA : Contracts of affreightment with fixed day rates applicable for a specified duration (term of charter) and frequency (number of cargoes lifted) Spot : Charter hires neg
Slide 21: BW LPG
7 BW LPG BW LPG Limited 10 Pasir Panjang Road Mapletree Business City #17-02 Singapore 117438 www.bwipg.com