(Singapore ,27 August 2020 ) Highlights for the Quarter - Achieved Q2 2020 VLGC freight rates ofUSD 39,100 per day with a high fleet utilisation of 97% - Q2 2020 net profit after tax ofUSD 62 million or an earnings per share ofUSD 0.45 . H1 2020 net profit after tax ofUSD 143 million with an earnings per share ofUSD 1.03 - H1 2020 annualised return on equity of 24% withUSD 300 million of free cash flow - Declared Q2 2020 cash dividend ofUSD 0.15 per share, bringing total dividends declared for H1 2020 toUSD 0.35 per share - Retrofitting world's first LPG dual-fuel engines on BW Gemini and BW Leo, taking the lead and advancing technology towards zero-carbon fuel propulsion - Committed to twelve retrofits through 2020 and 2021 as retrofitting provides significantly more environmental benefits compared to newbuildings as confirmed by DNV, and boosts an already efficient and clean fleet without adding capacity - Collaborating withHafnia on bunker procurement for economies of scale and best in class logistics Financial PerformanceBW LPG Limited ("BW LPG ", the "Company", OSE ticker code: "BWLPG.OL") reported a Q2 2020 net profit after tax ofUSD 62 million and a H1 2020 net profit after tax ofUSD 143 million , yielding a H1 2020 annualised return on equity of 24%. Time Charter Equivalent (TCE) income amounted toUSD 149 million in Q2 2020 andUSD 311 million in H1 2020, mainly attributable to higher LPG spot rates and higher fleet utilisation. Included in TCE income for the quarter isUSD 17 million relating to the effects of IFRS 15 - Revenue from Contracts with Customers. EBITDA wasUSD 113 million for the quarter andUSD 239 million for H1 2020, representing an EBITDA margin of approximately 77%. Earnings per share wasUSD 0.45 for Q2 2020 andUSD 1.03 for H1 2020. Net leverage ratio decreased to 46.2% at the end of the quarter, mainly due to solid cash flows from operations, net ofUS$145 million in total dividends paid for 2019 and Q1 2020. The Board has declared a Q2 2020 cash dividend ofUSD 0.15 per share amounting toUSD 21 million . This brings total dividends declared for H1 2020 toUSD 0.35 per share, amounting toUSD 49 million . The shares will be traded ex-dividend from1 September 2020 . The dividend will be payable on or about11 September 2020 to shareholders on record as at2 September 2020 .BW LPG is retrofitting the world's first LPG dual-fuel engines on BW Gemini and BW Leo, taking the lead and advancing technology towards zero-carbon fuel propulsion. The Company is committed to twelve retrofits through 2020 and 2021. Retrofitting provides significantly more environmental benefits compared to newbuildings as confirmed by DNV, and boosts an already efficient and clean fleet without adding capacity.BW LPG is collaborating withHafnia on bunker procurement.Hafnia supports the bunkering of over 450 ships and will bring economies of scale and best in class logistics toBW LPG . Market Outlook Although VLGC freight rates collapsed at the end of May, the market recovered strongly towards the end of July and rates increased to overUSD 50,000 per day in early August. In 2021, a weaker outlook forU.S. LPG supply coupled with a relatively high number of newbuild deliveries are expected to put downward pressures on vessel utilisation. Q2 2020 Quarterly Report Please see attachments for the earnings presentation and financial information.BW LPG Q2 2020 Earnings PresentationBW LPG Q2 2020 and H1 2020 Financial InformationBW LPG will host an investor presentation at 14:00hrs CET today. The investor presentation will be made byAnders Onarheim (CEO),Elaine Ong (CFO) andNiels Rigault (EVP, Commercial). The investor presentation will be available via audio webcast which can be accessed at https://edge.media-server.com/mmc/p/bj5vrz8g. The webcast will be available onBW LPG's website, www.bwlpg.com, as soon as possible after the presentation. For further information, please contact:Elaine Ong , CPA, CA Chief Financial OfficerBW LPG Limited Tel: +65 6705 5506 E-mail: elaine.ong@bwlpg.com Iver Baatvik Head of Corporate Development and Investor RelationsBW LPG Limited Tel: +65 6705 5519 E-mail: iver.baatvik@bwlpg.com AboutBW LPG BW LPG is the world's leading owner and operator of LPG vessels, owning and operating Very Large Gas Carriers (VLGC) with a total carrying capacity of over 3 million CBM. With five decades of operating experience in LPG shipping and experienced seafarers and staff,BW LPG offers a flexible and reliable service to customers. More information aboutBW LPG can be found at www.bwlpg.com.BW LPG is associated withBW Group , one of the world's leading shipping groups.BW Group controls a fleet of over 360 ships which includes product tankers, LNG and LPG carriers, floating storage and regasification (FSRU) units, dry cargo carriers, crude oil supertankers and floating production storage and offloading (FPSO) units. This information is subject to disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.
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