Bw Lpg Limited · OSL:BWLPG
Bw Lpg — Q4 2019 Earnings Presentation
23 slides from Bw Lpg's earnings presentation, February 2020
Slide 1: Fourth Quarter 2019 Earnings Presentation
Fourth Quarter 2019 j ntation a _Earnings Presentation _ a a
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. • Matters discussed in this presentation and any materials distributed in connection with this presentation may constitute or include forward–looking sta
Slide 3: Agenda
Agenda ▪ Highlights ▪ Key Financials ▪ Market Dynamics ▪ Financial Highlights ▪ Summary & Outlook ▪Q&A
Slide 4: Highlights
Highlights ■ Quarterly fleet wide VLGC freight rates averaged USD 50,600 per day, with Spot earnings of USD 56,000 per day ■ The Board has declared a Q4 2019 cash dividend of $0.42 per share, amounting to USD 58 million. This brings total dividends declared for 2019 to $0.85 per share, amounting to
Slide 5: Key Financials
Key Financials Q4 2019 Q4 2018 FY 2019 FY 2018 VLGC Daily TCE1 $50,600 $21,300 $35,000 $18,400 TCE income (USD million) 192 85 547 301 EBITDA (USD million) 154 36 399 104 Profit/(Loss) after tax (USD million) 154 (34) 274 (72) Earnings Per Share2 1.11 (0.24) 1.97 (0.51) Dividend Per Share 0.42 - 0.8
Slide 6: Commercial Performance Q4 2019 VLGC Fleet
Commercial Performance Q4 2019 VLGC Fleet Calendar Days Available Days Spot Market Index September to November – Baltic VLGC $61,3005 Availability (excl. waiting time) 98.9% Spot 84.0% $56,0003 $54,2002 (excl. waiting time) (incl. waiting time) $50,600 $51,100 per day1 per day2 Time Charter 13.3% $3
Slide 7: Commercial Performance FY 2019 VLGC Fleet
Commercial Performance FY 2019 VLGC Fleet Calendar Days Available Days Spot Market Index December to November – Baltic VLGC $42,2005 Availability (excl. waiting time) 98.9% Spot 81.5% $39,1003 $36,9002 (excl. waiting time) (incl. waiting time) $35,000 $35,400 per day1 per day2 Time Charter 13.6% $26
Slide 8: Fourth Quarter 2019 Seaborne LPG Trade Overview
Fourth Quarter 2019 Seaborne LPG Trade Overview In 2019, global LPG waterborne trade increased 13% from 2018 due to strong export growth in North America. Over 38% of the LPG waterborne trade went to the Far East Quarterly seaborne LPG imports by country/region (Million tons) Comments Q4 2018 Q4 201
Slide 9: EIA US LPG Net Exports
EIA US LPG Net Exports EIA’s latest update revised 2020 net export upwards to 47m tons from 44m tons. In addition, EIA also released the 2021 net exports forecast of 44m tons US LPG snapshot (Million tons) 100 US Production US Domestic Consumption Net Exports + Net Exports YoY growth 80 47(+10) 44 (
Slide 10: Global VLGC & BW LPG Fleet Profile
Global VLGC & BW LPG Fleet Profile 286 ships on water with 4 ships delivered so far in 2020. Orderbook at 41 ships or 14% Global VLGC fleet profile — average age: 10 years BW LPG VLGC market share1 of 14% 320 327 350 55 303 282 Other VLGC NB 300 35 260 265 45 241 41 250 199 BW LPG 35 164 200 VLGC 15
Slide 11: All vessels compliant with IMO 2020 regulations
All vessels compliant with IMO 2020 regulations BW LPG has been proactive towards the IMO 2020 regulations, employing a diversified range of options to comply with the new regulations: ▪ Cooperated with MAN B&W to develop and ordered the first Liquid 60% IMO 2020 Gas Injection Propane (LGIP) engine
Slide 12: Financial Highlights
Financial Highlights Net profit on the rebound Positive EBITDA through cycle lows EBITDA IFRS 16 Impact $400 $500 $326 $300 $256 $274 $400 USD millions USD millions $200 $126 $300 $100 $24 ($45) ($72) $200 $0 ($100) $100 ($200) $0 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 2017 2018 2019
Slide 13: Fourth Quarter 2019 Income Statement
Fourth Quarter 2019 Income Statement Income statement (Figures in USD thousands) Q4 2019 Q4 2018 FY 2019 FY 2018 Revenue 260,805 154,255 817,204 521,754 Voyage expenses (69,252) (69,631) (269,930) (220,858) TCE income 191,553 84,624 547,274 300,896 Net gain from commodity contracts 479 - 1,198 - Ves
Slide 14: Fourth Quarter 2019 Balance Sheet & Cash Flows
Fourth Quarter 2019 Balance Sheet & Cash Flows Balance sheet (Figures in USD thousands) 31 December 2019 31 December 2018 Total non–current assets 2,161,376 2,071,098 Total current assets 387,980 188,846 Total assets 2,549,356 2,259,944 Total shareholders’ equity 1,177,313 983,625 Total non–current
Slide 15: Fourth Quarter 2019 Liquidity Position and Outstanding Debt
Fourth Quarter 2019 Liquidity Position and Outstanding Debt Repayment profile2 Lease Liabilities and Trust Receipts - o/s $250m $700m Competitive margins $290m ECA 2028 - o/s $240m ▪ All in cost of financing Libor +1.77% $150m Term loan 2023 - o/s $86m $600m $200m Revolving credit facility (RCF) - o
Slide 16: VLGC Market Outlook
VLGC Market Outlook LPG Exports LPG Imports Fleet Supply Ton-miles Freight Rates VLGC exports from North In 2019, two Chinese In the fourth quarter, four Ton-mile demand is For 2020, we continue to America are estimated to Propane Dehydrogenation VLGC newbuilds were estimated to increase, driven hav
Slide 17: Q&A
Q&A 17
Slide 18: Appendix
Appendix 18
Slide 19: Charter Portfolio 2019 – 2020
Charter Portfolio 2019 – 2020 2019 2020E Q4 2019 VLGC segment VLGC segment Days % of Total Days % of Total Days % of Total Total days (Net of offhire) 15,112 100% 14,569 100% Total days (Net of offhire) 3,672 100% Time charter 2,050 14% 1,075 7% Time charter 490 13% Spot 13,062 86% 13,494 93% Spot 3
Slide 20: BW LPG Fleet Development (Detailed)
BW LPG Fleet Development (Detailed) Timeline based on current contracts 1 2 1 1 2 1 1 1 1 1 3 42 38 36 35 35 35 8 8 9 9 6 6 Dec 2017 Q1 Q2 Q3 Q4 Dec 2018 Q1 Q2 Q3 Q4 Dec 2019 2020 Dec 2020 2021 Dec 2021 2022 Dec 2022 2018 2018 2018 2018 2019 2019 2019 2019 Chartered-in / Bareboat fleet Owned fleet C
Slide 21: Fleet List
Fleet List Modern fleet of 48 vessels built at leading shipyards (as of 31 December 2019) 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 Kizoku 2019 Mitsubishi H.I. T
Slide 22: Glossary of Terms
Glossary of Terms Terms Explanation Time Charter Charter hires with a fixed hire rate for a fixed duration (term of charter) of more than a year Spot Charter hires negotiated on spot/market rates Available Days Calendar days less planned and unplanned technical offhire days Commercial Available days
Slide 23: For more information please visit our official website
For more information please visit our official website for BW LPG business news, financial results, presentations, company reports and the latest share price. Investor Relations [email protected] Telephone +65 6705 5588 Ticker BWLPG Linkedin https://www.bwlpg.com/investor-centre https://s