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    BWLPG   BMG173841013

BW LPG LIMITED

(BWLPG)
  Report
Real-time Quote. Real-time Oslo Bors - 10/25 10:25:24 am
46.1 NOK   +1.32%
10/12BW LPG : Financial calendar
AQ
08/31BW LPG : Ex Dividend USD 0.10 Today
AQ
08/26BW LPG : Financial Results for Q2 2021
PU
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SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

BW LPG's Financial Results for Q2 2021

08/26/2021 | 01:43am EDT
(Singapore, 26 August 2021)

Highlights 

o Generated Q2 net profit after tax of USD 23.1 million
o Achieved Q2 VLGC freight rates of USD 24,500 per calendar day, or USD 27,500
per available day
o Retrofitted four VLGCs with LPG dual-fuel propulsion engines in Q2
o Declared Q2 cash dividend of USD 0.10 per share amounting to USD 13.8 million
o Increased equity share in our Indian joint venture to 88.4%, leading to a net
gain of USD 9.8 million
o Secured USD 45 million financing for the retrofitting of six LPG dual-fuel
propulsion engines
o Concluded the sale and delivery of one vessel in April, one vessel in July,
and two vessels in August
o Exercised the purchase option on one time charter-in VLGC, with purchase
expected to generate a ROCE of 8%


Financial Performance
Q2 2021
BW LPG Limited ("BW LPG", the "Company", OSE ticker code: "BWLPG.OL") reported a
Q2 2021 net profit after tax of USD 23.1 million, yielding an annualised return
on equity of 7.1% with USD 80.8 million of free cash flow. EBITDA was USD 54.8
million for Q2 2021, representing an EBITDA margin of 58.3% for the quarter.
Earnings per share was USD 0.16.

Q2 2021 VLGC freight rates were USD 24,500 per calendar day, or USD 27,500 per
available day with 96% commercial utilization. Time Charter Equivalent ("TCE")
income decreased to USD 94.0 million for Q2 2021, mainly due to lower LPG spot
rates and lower fleet utilisation, the latter due to the retrofitting of four
VLGCs with LPG dual-fuel propulsion engines. There are eight LPG-powered VLGCs
on water to-date. 

The Board has declared a Q2 2021 cash dividend of USD 0.10 per share amounting
to USD 13.8 million. The shares will be traded ex-dividend on and from 31 August
2021. The dividend will be payable on 17 September 2021 to shareholders on
record as of 1 September 2021.

BW LPG increased our equity share in our Indian joint venture from 50% to 88.4%.
Our equity investment is now accounted for as a subsidiary and the remeasurement
of our existing equity interest was a gain of USD 9.8 million.

The sale and delivery of BW Empress (2005-built, Mitsubishi Heavy Industries)
for further trading was concluded in April, generating a net gain of USD 9.9
million.

Subsequent Events
BW LPG secured a USD 45 million transition loan (revolving credit facility) in
August, for the retrofitting of six VLGCs with LPG dual-fuel propulsion engines
at LIBOR + 170bps. This is an upsize of the existing USD 290 million term loan
facility whose terms remain unchanged.

The sale and delivery of BW Confidence (2005-built, Mitsubishi Heavy Industries)
for further trading was concluded in July. The sale and delivery of BW Boss
(2002-built, Kawasaki Heavy Industries Ltd.) and BW Energy (2002 built, Kawasaki
Heavy Industries Ltd.) for further trading were concluded in August. These
generated USD 81.0 million in liquidity and a net gain of USD 9.0 million. 

BW LPG exercised the purchase option for Yuricosmos (2010-built, Mitsubishi H.I)
in August. Renamed BW Niigata, its purchase is expected to generate a return on
capital employed (ROCE) of 8%.


Market Outlook
VLGC freight rates showed strong improvement in Q2 2021. TCE rates increased
from OPEX levels in early March to over USD 40,000 per day in mid-May. This was
supported by strong recovery in U.S. LPG exports after an extremely cold winter,
gradual easing of production cuts from the Middle East, and opening geographical
LPG price arbitrage between the U.S. and the Far East.

Nevertheless, the market remains volatile, with rates declining in June and
falling below cash breakeven in early July. This was largely driven by
diminishing LPG price arbitrage from the U.S. to Asia due to strong U.S. LPG
prices and fractionator-related production issues in Saudi Arabia.
  
For the rest of 2021, we expect VLGC freight rates to average above cash
breakeven. This is driven by continued growth in U.S. LPG exports and recovering
volumes from the Middle East. However, freight rate volatility is expected to
remain high, as strong U.S. LPG prices and low U.S. LPG inventory may put
pressure on the price arbitrage needed to drive exports out of the U.S. in the
winter. In the medium term, we remain optimistic for 2022, but the high number
of recent newbuild orders has increased the uncertainty for 2023.


Q2 2021 Quarterly Report

Please see attachments for the Q2 2021 Earnings Presentation and Interim
Financial Report. 

1. BW LPG Q2 2021 Earnings Presentation 
2. BW LPG Q2 2021 Interim Financial Report

BW LPG will host an investor presentation of the financial results at 13:00hrs
CET today. The presentation will be made by Anders Onarheim (CEO), Elaine Ong
(CFO), Niels Rigault (EVP, Commercial) and Pontus Berg (EVP, Technical and
Operations). 

The presentation will be held live via Zoom. Please register in advance at the
link below:

http://bit.ly/BWLPGQ22021EP

A recording of the presentation will also be available after the event on the
Company's website at: https://www.bwlpg.com/investors.


For further information, please contact:

Elaine Ong, CPA, CA
Chief Financial Officer
Tel: +65 6705 5506
E-mail: elaine.ong@bwlpg.com

Iver Baatvik
Head of Corporate Development and Investor Relations
Tel: +65 6705 5519
E-mail: iver.baatvik@bwlpg.com


About BW 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 about BW LPG can be found at www.bwlpg.com.

BW LPG is associated with BW Group, a leading global maritime company involved
in shipping, floating infrastructure, deepwater oil & gas production, and new
sustainable technologies. BW Group controls a fleet of over 420 ships
transporting crude oil, oil products, and dry commodities, and comprises one of
the largest gas fleets in the world with over 190 LNG and LPG vessels.

This information is subject to disclosure requirements pursuant to Section 5-12
of the Norwegian Securities Trading Act.

Click here for more information

© Oslo Bors ASA, source Oslo Stock Exchange

Stocks mentioned in the article
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BW LPG LIMITED 1.32% 46.1 Real-time Quote.-22.88%
KAWASAKI HEAVY INDUSTRIES, LTD. 1.91% 2403 End-of-day quote.3.40%
MITSUBISHI HEAVY INDUSTRIES, LTD. 0.39% 2993.5 End-of-day quote.-5.15%
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Financials (USD)
Sales 2021 476 M - -
Net income 2021 157 M - -
Net Debt 2021 761 M - -
P/E ratio 2021 41,2x
Yield 2021 1,04%
Capitalization 6 376 M 764 M -
EV / Sales 2021 15,0x
EV / Sales 2022 14,1x
Nbr of Employees 2 000
Free-Float 56,7%
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Number of Analysts 4
Last Close Price 46,10 $
Average target price 8,40 $
Spread / Average Target -81,8%
EPS Revisions
Managers and Directors
Anders Onarheim Chief Executive Officer
Yi Ling Elaine Ong Chief Financial Officer
Andreas Sohmen-Pao Chairman
Pontus Berg Senior VP-Technical & Operations
Knut-Helge Knutsen Vice President-Technical
Sector and Competitors