Bw Lpg Limited · OSL:BWLPG
Bw Lpg — Investor Presentation (January 2014)
13 slides from Bw Lpg's investor presentation, January 2014
Slide 1: BW LPG Corporate presentation
BW LPG Corporate presentation January, 2014
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 redistributed, in whole or in part, to any other person. Matters discussed in this presentation and any materials distributed in co
Slide 3: Important Note
Important Note In relation to this presentation, it is important to note the following: – BW LPG is a 31 December reporting entity, and we are presently in blackout on business updates – Consequently, this presentation is deliberately constrained to market views and re-iteration of information alr
Slide 4: Who are we?
Who are we? BW LPG is the largest owner / operator of VLGCs, with a fleet of 31 VLGCs, 5 LGCs, and 6 VLGCs on order, with an additional 2 VLGC newbuild options Largest shareholder and fleet manager is the BW Group, 100% owner pre- IPO Acquired the Maersk LPG fleet of 5 owned + 5 TC-in vessels
Slide 5: LPG market highlights - 2013
LPG market highlights - 2013 Strong positive market trends in 2nd half – later than typical softening – lows well above historic levels Strong value generation in the duration of the peak reported at approx. USD1.6m / month This peak is not overwhelmingly high – important to apply careful anal
Slide 6: Fleet development
Fleet development Growing fleet since Q2 2013 VLGC fleet profile1 30 Newbuildings: > 20 years: 42 vessels 5 owned + 25 32 vessels 5 charter-in 6 Number of vessels 1 20 15 10 10 5 0 42 BW owned BW chartered BW newbuildings Other fleet Other newbuildings Current global sailing fleet of 151 vessels 2
Slide 7: The outlook for US contribution to LPG export volumes continues to improve
The outlook for US contribution to LPG export volumes continues to improve Better US margins on propane (vs. methane) resulting in US is expected to become one of the world’s leading LPG a shift to NGL-rich fields exporters Strong US natural gas production growth US LPG imports/exports 35 16 Estimat
Slide 8: Low US LPG marginal cost of production creates sustainable export market
Low US LPG marginal cost of production creates sustainable export market US exports driven by Increasing volumes of LPG at competitive global prices Comments US vs Arabian Gulf propane prices Natural gas price (methane) has 30 decreased with shale gas production Producers have incentive to devel
Slide 9: Asia seems to be the likely home for a high proportion of US exports
Asia seems to be the likely home for a high proportion of US exports, despite distance LPG demand: Increase in LPG demand supported Asian PDH plants contribute to Asia-Pacific is the main importer by retail and industrial consumption growing base load demand LPG demand breakdown Asia Pacific LPG con
Slide 10: Recent transactions indicate asset prices beginning to reflect the positive rate trend
Recent transactions indicate asset prices beginning to reflect the positive rate trend VLGC short term TCE rate development VLGC short term TCE rate & newbuilding prices Rates by year Rates (LHS) & newbuild prices (RHS) 1,800 2,000 100 1,600 1,800 95 1,600 90 1,400 1,400 85 USD ‘000 per calendar mon
Slide 11: Asset quality and operational excellence remain critical, even in a tightening market
Asset quality and operational excellence remain critical, even in a tightening market Voyage performance Primary consumers, main and aux engines Fleet planning, route and ship allocation Steam plant efficiency Chartering / contracts Main engine efficiency Voyage planning Aux engines effi
Slide 12: Market activity to watch in 2014
Market activity to watch in 2014 US exports – Terminal capacity build-out and new commitments – Proportion of LPG captured finding its way to export markets – Destinations of US cargoes LPG pricing – ex-AG and ex-US. How do increasing export volumes impact delivered price of LPG? Contract stru
Slide 13: BW LPG
BW LPG