BW LPG Limited - Financial Results for Q1 2024

BW LPG Limited (“BW LPG”, the “Company”, NYSE ticker code: “BWLP”, OSE ticker code: “BWLPG.OL”):

Highlights and Subsequent Events

- Strong quarterly performance with daily TCE of USD 61,500 per available day and USD 59,400 per calendar day.

- Generated NPAT of USD 150 million or earnings per share of USD 1.07. Declared a Q1 cash dividend of USD 1.00 per share which represents 106% of earnings from the shipping activity and 93% of total earnings in the quarter.

- For the second quarter of 2024, we have fixed 84% at an average rate of ~USD 49,000 per available day

- BW Product Services generated a net accounting profit of USD 21 million in Q1 after adjusting for G&A and tax provisions.

- BW Product Services is pleased to announce a multi-year cargo contract with Enterprise Product Partners, with optionality to double the current cargo volume in the US Gulf. This will significantly improve the combined shipping and cargo trading flexibility.

- Delivered one VLGC to new owners for further trading in February 2024, generating USD 65 million in proceeds.

- BW LPG successfully listed on the New York Stock Exchange (NYSE) on 29 April 2024.

Financial Performance

BW LPG Limited (“BW LPG”, the “Company”, NYSE ticker code: “BWLP”, OSE ticker code: “BWLPG.OL”) reported a Q1 2024 Net Profit After Tax (NPAT) of USD 150 million, yielding an annualised return on equity of 37% with USD 468.5 million free cash flow generated. The Q1 operating profit was USD 157.8 million, and earnings per share was USD 1.07.

The net leverage ratio was at an all-time low at 7% in Q1 with available liquidity at USD 661 million at the end of the quarter. On the back of another strong quarter, the Board has declared a cash dividend of USD 1.00 per share, or a total dividend of USD 132 million. This represents a 93% earnings payout ratio and an annualised dividend yield of 22%.

Commercial Performance

Shipping – Q1 VLGC freight rates averaged USD 61,500 per available day or USD 59,400 per calendar day, with 95% fleet utilisation. Time Charter Equivalent (TCE) income was USD 186.5 million for the quarter, and our India subsidiary contributed a stable TCE income of USD 10 million for Q1.

BW LPG delivered BW Princess (2008-built, Hyundai Heavy Industries, Korea) in February 2024 to new owners for further trading. Her sale generated USD 65 million in proceeds and a net book gain of USD 20 million.

Product Services – Product Services reported a USD 33 million gross profit for Q1. After considering other expenses, comprising mainly of G&A and income tax expenses, Product Services reported a net profit after tax of USD 21 million for the quarter.