Highlights for the Quarter
- Achieved Q1 2021 VLGC freight rates of USD 43,300 per calendar day, or USD 44,400 per available day with 97% commercial utilization
- Generated Q1 2021 net profit after tax of USD 71 million or an earnings per share of USD 0.51
- Declared Q1 2021 cash dividend of USD 0.18 per share amounting to USD 25 million
- Achieved Q1 2021 annualized return on equity of 22% with USD 96 million of free cash flow
- Concluded the sale and delivery of BW Empress, generating USD 40 million in liquidity and a net gain of USD 10 million
- Increased ownership in Indian Joint Venture to 85%, with five vessels now trading in India; and secured a five-year term loan for up to USD 198 million
- Financial Performance
BW LPG Limited (“BW LPG”, the “Company”, OSE ticker code: “BWLPG.OL”) reported a Q1 2021 net profit after tax of USD 71 million, yielding an annualized return on equity of 22% with USD 96 million of free cash flow.
Time Charter Equivalent (TCE) income amounted to USD 150 million in Q1 2020. EBITDA was USD 113 million for the quarter, representing an EBITDA margin of 75%. Earnings per share was USD 0.51.
The sale and delivery of 2005-built BW Empress for further trading generated USD 40 million in liquidity and a net gain of USD 10 million.
BW LPG expanded its presence in India by increasing its ownership in its Indian Joint Venture from 50% to 85%; and adding an additional VLGC to the fleet in Q1 2021, making a total of five vessels now trading on time charter contracts in India. The subsidiary also secured a five-year term loan for up to USD 198 million from a syndicate of seven banks, at an all-in cost of LIBOR plus 1.98%.
The Board has declared a Q1 2021 cash dividend of USD 0.18 per share amounting to USD 25 million. The shares will be traded ex-dividend on and from 26 May 2021. The dividend will be payable on 11 June 2021 to shareholders on record as of 27 May 2021.
Market Outlook
Extreme cold weather in the US in late-January narrowed the LPG price arbitrage between the US and the Far East from over USD 200 per metric ton to below USD 100. Falling LPG exports from both the US and the Middle East led to one of the quickest and most pronounced VLGC freight rates correction in history.
Today, VLGC freight market has recovered from the bottom and rates have stabilized at above 40,000 dollars per day. BW LPG reiterates a positive market outlook for the second half of 2021. The is supported by recovery in LPG exports from both the US and the Middle East, reduced fleet supplies due to dry docks and shipping inefficiencies.
Q1 2021 Quarterly Report
Please see attachments for the Q1 2021 Earnings Presentation and Interim Financial Report.
1. BW LPG Q1 2021 Earnings Presentation
2. BW LPG Q1 2021 Interim Financial Report
BW LPG will host an investor presentation of the financial results at 14:00hrs 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/BWLPGQ12021EP
A recording of the presentation will also be available after the event on the Company’s website at: https://www.bwlpg.com/investor-centre.
For further information, please contact:
Elaine Ong, CPA, CA
Chief Financial Officer
Tel: +65 6705 5506
E-mail: [email protected]
Iver Baatvik
Head of Corporate Development and Investor Relations
Tel: +65 6705 5519
E-mail: [email protected]
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.
