BW LPG LIMITED (29 February 2024 ) Highlights and Subsequent Events - Strongest quarterly performance on record with daily TCE ofUSD 75,000 per calendar day andUSD 76,000 per available day. - Generated NPAT ofUSD 162 million or earnings per share ofUSD 1.14 . Declared a Q4 cash dividend ofUSD 0.90 per share which represents a 98% full year earnings payout ratio and an annualised dividend yield of 28%. - Product Services generated a net accounting profit ofUSD 18 million in Q4 after adjusting for G&A and tax provisions from the earlier announcedUSD 27 million quarterly profit. It has also scheduled a share capital reduction ofUSD 30 million in Q2 2024. - Took delivery of one VLGC and welcomed one VLGC to the pool in Q4. Entered into an agreement to sell one VLGC in Q4, with estimated delivery in Q1 2024. -BW LPG signed joint venture agreements to invest in infrastructure project inIndia ; and completedUSD 30 million share subscription of Confidence Petroleum for 8.5% ownership. - The announced US listing, now decided to be onNew York Stock Exchange (NYSE), is on schedule and expected to be in Q2 2024. [1] Financial PerformanceBW LPG Limited ("BW LPG ", the "Company", OSE ticker code: "BWLPG.OL") reported a Q4 2023 Net Profit After Tax (NPAT) ofUSD 162 million , yielding an annualised return on equity of 42% withUSD 128 million free cash flow generated. The Q4 EBITDA wasUSD 195 million , and earnings per share wasUSD 1.14 . The net leverage ratio remained low at 21% in Q4 with available liquidity atUSD 457 million at the end of the quarter. On the back of the Company's strongest quarter on record, the Board has declared a cash dividend ofUSD 0.90 per share, or a total dividend ofUSD 118 million . This represents an 98% earnings payout ratio for 2023 and an annualised dividend yield of 28%. Product Services generated a net accounting profit ofUSD 18 million in Q4 after adjusting for G&A and tax provisions from the earlier announcedUSD 27 million quarterly profit. It has also scheduled a share capital reduction ofUSD 30 million in Q2 2024. CommercialPerformance Shipping -- Q4 VLGC freight rates averagedUSD 75,000 per calendar day orUSD 76,000 per available day, with 97% fleet utilisation. Time Charter Equivalent (TCE) income wasUSD 235 million for the quarter, and ourIndia subsidiary contributed a stable TCE income ofUSD 35 million for Q4.BW LPG took delivery of BW Kyoto (2010-builtMHI Nagasaki Shipyard ,Japan ) in Q4. The vessel will be on a six-year time charter from Q1 2024 and will secure a ROCE of ~18% over the said period.BW LPG entered into an agreement to sell BW Princess (2008-built,Hyundai Heavy Industries ,Korea ) in Q4, with estimated delivery in Q1 2024. The sale will generate approximatelyUSD 64 million in liquidity and a net book gain of aboutUSD 20 million . Lastly, theBW LPG pool welcomed one dual-fuel VLGC (Gas Venus) from Sinogas in Q4. Product Services -- Product Services reported aUSD 32 million gross profit for Q4, including a depreciation ofUSD 17 million due to five time charter-in vessels recorded as right-of-use assets. After taking into account other expenses, comprising mainly of G&A and income tax expenses, Product Services reported a net profit after tax ofUSD 18 million for the quarter. Infrastructure --BW LPG completed the transaction to investUSD 30 million inConfidence Petroleum India Limited ("Confidence") through a preferential allotment of equity shares in Q1 2024. The shares constitute 8.5% of the issued and paid-up share capital of Confidence on a fully diluted basis.BW LPG also established a 50/50 joint venture (JV) with Confidence in Q4, named "BW Confidence". BW Confidence signed an agreement withGanesh Benzoplast to jointly develop and operate a new LPG onshore import terminal at Jawaharlal Nehru Port Association Port (JNPT) in NaviMumbai, India . Corporate Update Preparatory work towards a dual listing ofBW LPG shares in the US on theNew York Stock Exchange (NYSE) is progressing as planned, with the listing expected in Q2 2024. Market Outlook Spot rates corrected down sharply inJanuary 2024 due to cold weather increasing US LPG prices and thereby reducing exports. Rates have since recovered in February on the back of normalised temperatures leading to high US exports, in addition to an active lifting program in theMiddle East . Our view is that the underlying fundamentals remain sound, and we reiterate our positive view for 2024, although we expect high volatility. Key underlying drivers include: - High oil price leading to increased oil and gas production conducive to continued strong export growth from the US and steady growth from theMiddle East ; - Newbuilding deliveries abate after Q1 2024 while 13 ships scheduled for delivery in 2025; -Unpredictable Panama Canal situation; and - Forward Freight Agreements price indicating a positive second half of 2024. Q4 2023 Earnings Presentation and Interim Financial Report Please see the attachments for the Q4 2023 Earnings Presentation and Interim Financial Report.BW LPG Q4 2023 Earnings PresentationBW LPG Q4 2023 Interim Financial ReportBW LPG will present the financial results at 13:00hrs CET today. The presentation will be hosted byKristian Sørensen (CEO) andSamantha Xu (CFO). The presentation will be held live via Zoom. Please register in advance at the link below: https://tinyurl.com/BWLPGQ42023EP A presentation recording will also be available after the event on the Company's website at: https://www.bwlpg.com/investors. For further information, please contact:Kristian Sørensen , CEO E-mail: Kristian.sorensen@bwlpg.comSamantha Xu , CFO E-mail: Samantha.xu@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, experienced employees and an in-house LPG trading division,BW LPG offers an integrated, flexible, and reliable service to customers. More information aboutBW LPG can be found at www.bwlpg.com.BW LPG is associated withBW Group , a leading global maritime company involved in shipping, floating infrastructure, deepwater oil & gas production, and new sustainable technologies. Founded in 1955 by SirYK Pao , BW controls a fleet of over 490 vessels transporting oil, gas and dry commodities, with its 200 LNG and LPG ships constituting the largest gas fleet in the world. In the renewables space, the group has investments in solar, wind, batteries, biofuels and water treatment. This information is subject to disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act. [1] This does not constitute an offer to sell or the solicitation of an offer to buy any securities ofBW LPG nor shall there be any sale of any securities ofBW LPG in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
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