(Singapore ,29 August 2022 ) Highlights o Achieved Q2 VLGC freight rates ofUSD 35,400 per calendar day o Generated Q2 Net Profit After Tax ofUSD 38.6 million o Concluded the sale and delivery of one VLGC, generatingUSD 19.3 million in liquidity o Declared a Q2 cash dividend ofUSD 0.20 per share amounting toUSD 27.0 million o Completed the second tranche sale of stake in Indian subsidiary BW LPG India o Entered into an agreement to acquire the LPG trading operations of Vilma Oil Financial PerformanceBW LPG Limited ("BW LPG ", the "Company", OSE ticker code: "BWLPG.OL") reported a Q2 2022 Net Profit After Tax ofUSD 38.6 million , yielding an annualised return on equity of 10.5% withUSD 21.2 million of free cash flow. EBITDA wasUSD 82.6 million for the quarter, representing an EBITDA margin of 67.6%. Earnings per share wasUSD 0.26 . Net leverage ratio remained at a record low of 24.7% in Q2 2022, mainly due to solid cash flows from operations and investing activities. Available liquidity wasUSD 360 million at the end of Q2 2022.BW LPG's strong financial position will allow the Company to withstand any short to medium term volatility, and to invest in the right opportunities for future growth. On the back of another strong quarter, the Board has declared a cash dividend ofUSD 0.20 per share amounting toUSD 27.0 million . This translates to a pay-out ratio of 75% of NPAT for the quarter. Commercial Performance Q2 2022 VLGC freight rates averagedUSD 35,400 per calendar day, orUSD 36,800 per available day with 98% commercial utilisation. Time Charter Equivalent ("TCE") income wasUSD 122 million for Q2 2022, mainly due to higher LPG spot rates and higher fleet utilisation with the final three committed vessels completing their dual fuel propulsion engines retrofitting during the quarter. It also includes a net downward impact ofUSD 7.7 million related to the effects of IFRS 15 where spot voyages that straddle the quarter-end are now accounted for on a load-to-discharge basis. The second tranche sale of additional stake in BW LPG India as earlier announced inBW LPG's Q1 earnings report was completed in Q2, adding an additionalUSD 30 million in new equity. Following the transaction,BW LPG owns approximately 52% in BW LPG India. The sale and delivery of BW Liberty (2007-built,Daewoo Shipbuilding & Marine Engineering Co. Ltd. ) for further trading was concluded in Q2. The transaction generated approximatelyUSD 19.3 million in liquidity and a net book gain ofUSD 4.8 million .BW LPG entered into an agreement to acquire the LPG trading operations from Vilma Oil to expand the Product Services division. The acquisition is subject to approval from the Spanish regulatory authorities, and the transaction is expected to close by the end of 2022. When completed, the expanded Product Services division will enhance the Company's core shipping business with an additional five time-charter-in vessels; with a combined total of over four million metric tons of physical LPG expected to be traded annually. Technical Performance Q2 is the first quarter all 15 LPG-powered vessels are on water serving customers. Approximately 10,000 metric tons of LPG fuel were used, translating to overUSD 5.0 million in savings from fuel price differentials and over 15% reduction in carbon emissions compared to compliant fuels. Market Outlook For the rest of 2022, VLGC freight rates are expected to remain firm. This is driven by continued growth inU.S. LPG exports and recovering volumes from theMiddle East . However, freight rate volatility is expected to remain high as lowU.S. inventories coupled with squeezed petrochemical margins inAsia may put pressure on the LPG price arbitrage between theU.S. and the Far East. For 2023, the Company remains optimistic despite concerns over a large VLGC orderbook and continued macroeconomic uncertainties. If oil and gas prices remain elevated,BW LPG is well positioned to benefit from a strong energy cycle ahead. If the global economy deteriorates and commodity prices fall, the Company believes that its modern fleet, low leverage, and strong liquidity will enable it to navigate through the challenges ahead. Q2 2022 Earnings Presentation and Interim Financial Report Please see attachments for the Q2 2022 Earnings Presentation and Q2 and H1 Interim Financial Report. 1.BW LPG Q2 2022 Earnings Presentation 2.BW LPG Q2 and H1 2022 Interim Financial ReportBW LPG will host an investor presentation of the financial results at 13:00hrs CET today. The presentation will be made byAnders Onarheim (CEO),Elaine Ong (CFO),Niels Rigault (EVP, Commercial) andPontus Berg (EVP, Technical and Operations). The presentation will be held live via Zoom. Please register in advance at the link below: http://bit.ly/BWLPGQ22022EP 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 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 , 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.
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