Bw Lpg Limited · OSL:BWLPG
Bw Lpg — Q4 2014 Earnings Presentation
24 slides from Bw Lpg's earnings presentation, Feb 27, 2015
Slide 1: Q4 2014 Results Presentation
BW LPG Q4 2014 Results Presentation 27 February 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 • Q4 2014 Business Highlights……………………………………………………………………..……………………………………………………………………..4 • Q4 2014 Financial Highlights……………………………………………………………………..……………………………………………………………………..5 • Subsequent events YTD 2015………………………………………………………………………………………….……………………………..…………..…….6 • Market situation: export tr
Slide 4: Fourth quarter 2014 highlights
Fourth quarter 2014 highlights Q4 2014 caps off a historically exceptional year of profits for BW’s LPG fleet Board recommends 2nd half 2014 dividend at 100% NPAT: USD1.15 per share, providing exceptional dividend yield for 2014 Market-leading long-haul fleet of 36 owned / operated vessels plu
Slide 5: Fourth quarter 2014 financial highlights
Fourth quarter 2014 financial highlights TCE earnings were USD 138.7 million - 36% above Q4 2013 EBITDA was USD 87.9 million – 92% above Q4 2013 Net profit was USD 65.0 million – 81% above Q4 2013 This results in a 2014 annual profit of USD 256.0 million – more than double that achieved in 2
Slide 6: Subsequent events
Subsequent events Facility Agreement signed on 17 Feb 2015 for USD400 million financing against seven VLGC newbuildings – Lenders: KEXIM, DNB, SEB – Advisors: HSBC, DNB – LIBOR + 1.70% p.a. (blended); weighted amortisation profile 18 years. Board-recommended 2nd half 2014 cash dividend USD 1.15
Slide 7: US LPG production & exports trending positively
US LPG production & exports trending positively U.S. LPG Production By PADD Region (MM Tons) 70 PADD 1 East Coast PADD 2 Midwest PADD 3 Gulf Coast PADD 4 Rocky Mtns PADD 5 West Coast 60 50 40 30 20 10 - U.S. LPG Exports By Product Type (MM Tons) 16 Propane Butane 14 12 10 8 6 4 2 - Source: EIA 7
Slide 8: US export growth outlook remains positive
US export growth outlook remains positive US LPG Production & Exports (mmtpa) 90.0 30.0 LPG Production (LHS) 80.0 LPG Production Forecast (LHS) (2014 - 2016 CAGR - 7.2%) 25.0 70.0 LPG Exports (RHS) U.S. LPG Exports (mmtpa) LPG Production (mmtpa) BW LPG Export Forecast (RHS) (2014 - 2016 CAGR - 10.5%
Slide 9: Demand development remains robust
STRICTLY PRIVATE & CONFIDENTIAL Demand development remains robust Demand Source: Infrastructure EMERGING MARKETS Examples : Sub-Saharan Africa, U.S. Virgin Islands Demand Source: Natural demand growth, kerosene-to-LPG, subsidies EXISTING MARKETS Examples : India, Indonesia, Thailand, Vietnam Demand
Slide 10: Fleet and new build orderbook
Fleet and new build orderbook Global LPG Fleet Development (>20k CBM) and New Build (Jan’15) 300 51% 250 200 84 150 36% 16% 100 165 22 50 19+3 61 0 VLGC LGC MGC On Water On Order VLGC Fleet Profile1 50 45 40 Number of vessels 35 30 25 20 15 10 5 0 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 19
Slide 11: BW LPG's fleet development
BW LPG’s fleet development BW LPG fleet growing through 2014-20161 Net changes to total fleet 1 3 40 36 2013 2014 2015 2016 Total Fleet (2016) BW LPG Fleet Outlook BW Aries, the first HHI newbuilding, was delivered on 17 November 2014 The remaining 7 HHI newbuildings are scheduled to be delivere
Slide 12: Q4 2014 income statement
Q4 2014 income statement Figures in USD thousands (Reviewed) (Reviewed) (Audited) (Audited) Q4 2014 Q4 2013 FY 2014 FY 2013 Revenue 182,278 153,705 747,362 449,248 Voyage expenses (43,564) (51,931) (208,192) (160,516) TCE income 138,714 101,774 539,170 288,732 Other operating income 495 514 1,867 88
Slide 13: EBITDA cumulative trend
EBITDA cumulative trend Audited figures in USD millions YTD EBITDA development Comments 400 VLGC TCE income was in line with expectations with TCE per day at USD 44,100 for Q4 and USD 43,900 YTD 350 – Continued strong COA performance and west to east movement keeping the supply of vessels tight 30
Slide 14: Q4 2014 balance sheet and cash flow
Q4 2014 balance sheet and cash flow Figures in USD thousands (Audited) (Audited) Balance sheet 31 Dec 2014 31 Dec 2013 Total non-current assets 1,490,994 1,377,574 Total current assets 173,070 253,839 Total assets 1,664,064 1,631,413 Total shareholders’ equity 1,080,954 974,729 Total non-current lia
Slide 15: Financing
Financing Figures in USD millions Gross debt 529.4 Available liquidity of USD 195.2 million Cash (70.2) Net debt 459.2 700 600 500 400 300 200 100 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 NGL export market continues to grow in Q4 2014 despite a rapid decrease in oil price Export projections continue to show growth, although rig count is reducing, as production efficiencies have improved markedly The demand side has demonstrated continued strong appetite for
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 2736 (Q2), BW Aries NB 2706, NB 2737 (Q2) NB 2724 (Q4) NB 2707 NB 2722 NB 2723 2 1 1 1 1 2 1 1 1 1 Reimei (Q1) G. Symphony Gas Capricorn Berge Summit (Q2) 24 25 30 32 12 11 9 8 Dec 2013 2014 Dec 2014 Q1 2015 Q2 2015 Q3 2015 Q
Slide 20: Long-term contract portfolio 2014 through 2017 (value)
Long-term contract portfolio 2014 through 2017 (value) Review of achieved TCE 2014 and fixed income outlook VLGC 2014 2015E 2016E 2017E Voyage Charter 53,536 COA-Spot 47,048 COA-Fixed 41,957 35,483 35,991 35,987 Time Charter-Out 34,135 35,590 32,045 30,900 LGC 2014 2015E 2016E 2017E Voyage Charter 2
Slide 21: Long-term contract portfolio 2014 through 2017 (ship days)
Long-term contract portfolio 2014 through 2017 (ship days) VLGC 2014 2015E 2016E 2017E VLGC Available days 5,655 8,033 8,165 Time charter income accounted for Voyage Charter 2,835 19% of the available days for 2014 In 2015, time charter income is COA-Spot 2,989 expected to account for 25% of COA
Slide 22: Charter-in portfolio
Charter-in portfolio Reviewed figures in USD thousands 12 Months ended 3 Months ended 3 Months ended 3 Months ended 3 Months ended 31 Dec 2013 31 Mar 2014 30 Jun 2014 30 Sep 2014 31 Dec 2014 27.1 25.2 26.3 53.6 43.9 43.6 25.3 24.6 31.7 30.6 26.5 18.8 17.3 6.4 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