(Singapore, 13 November 2020)
Highlights for the Quarter
- Achieved Q3 2020 VLGC freight rates of USD 26,800 per day with 94% fleet utilisation.
- Generated Q3 2020 net profit after tax of USD 25 million or an earnings per share of USD 0.18.
- YTD September 2020 annualised return on equity of 19% with USD 400 million of free cash flow.
- Declared Q3 2020 cash dividend of USD 0.15 per share – this translates to a pay-out ratio, as a percentage of NPAT, of 84% in Q3 and 42% YTD.
- BW Gemini, the world’s first LPG-powered VLGC, is on a historic transpacific crossing on LPG propulsion to the USA, where she will receive the largest-ever load of LPG on a single keel
Financial Performance
BW LPG Limited (“BW LPG”, the “Company”, OSE ticker code: “BWLPG.OL”) reported a Q3 2020 net profit after tax of USD 25 million and a YTD September 2020 net profit after tax of USD 167 million, yielding a YTD September 2020 annualised return on equity of 19% with USD 400 million of free cash flow. With a solid cash flow, BW LPG paid down debt and reduced its net leverage ratio to 44% in Q3 2020, from 54% in Q3 2019.
Time Charter Equivalent (TCE) income amounted to USD 101 million in Q3 2020 and USD 413 million in YTD September 2020. VLGC freight rates collapsed at the end of the second quarter and recovered in a V-shaped trend. As guided in the Q2 earnings release, this made Q3 the weakest quarter in 2020.
EBITDA was USD 67 million for the quarter and USD 307 million for YTD September 2020, representing an EBITDA margin of approximately 66% and 74% respectively. Earnings per share was USD 0.18 in Q3 2020 and USD 1.21 in YTD September 2020.
The Board has declared a Q3 2020 cash dividend of USD 0.15 per share amounting to USD 21 million. With this dividend, BW LPG has paid USD 0.50 per share to-date, representing about 42% of FY2020 YTD earnings per share. The shares will be traded ex-dividend from 18 November 2020. The dividend will be payable on or about 11 December 2020 to shareholders on record as of 19 November 2020.
Market Outlook
Q3 has proven to be the weakest quarter thus far in 2020. BW LPG remains optimistic about the VLGC market for the rest of the year and we have also upgraded our view for 2021. The VLGC freight market is strong and is supported by resilient LPG exports out of the US, recovery in LPG exports from the Middle East, and a widening arbitrage driven by strong demand and reduced fleet availability.
Q3 2020 Quarterly Report
Please see attachments for the earnings presentation and financial information.
BW LPG Q3 2020 Financial Information
BW LPG will host an investor presentation 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).
For further information, please contact:
E-mail: elaine.ong@bwlpg.com
Iver Baatvik
Head of Corporate Development and Investor Relations
BW LPG Limited
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, one of the world’s leading shipping groups. BW Group controls a fleet of over 360 ships which includes product tankers, LNG and LPG carriers, floating storage and regasification (FSRU) units, dry cargo carriers, crude oil supertankers and floating production storage and offloading (FPSO) units.
