16 May 2019
Q1 2019 – Condensed Consolidated Interim Financial Information
(Singapore, 16 May 2019)
- VLGC TCE rates averaged US$15,100 per day
- TCE income of US$60.2 million, EBITDA of US$20.7 million, and loss after tax of US$23.5 million, resulting in a loss per share of US$0.17
- On 1 January 2019, BW LPG adopted the new IFRS 16 ‘Leases’. The net impact was an increase of US$9.1 million on EBITDA and an increase in loss after tax of US$0.8 million
EBITDA for the first quarter amounted to US$20.7 million (Q1 2018: US$25.3 million), a decrease of US$4.6 million from the same quarter last year mainly due to lower TCE income, partially offset by a net increase of US$9.1 million with the adoption of IFRS 16 ‘Leases’.
Loss after tax for the quarter amounted to US$23.5 million (Q1 2018: loss after tax of US$8.4 million).
The average benchmark Baltic route for VLGCs averaged US$29.8 per ton or US$15,000 per day in Q1 2019. BW LPG generated VLGC daily TCE of US$15,100 per day based on calendar days.
In line with our previous forecast, VLGC freight rates started to recover towards the end of the first quarter. For 2019 we are optimistic that average VLGC rates will improve from the 2018 average of US$17,300 per day to a level above our cash break-even. This is supported by sustained U.S LPG exports growth and incremental volumes from key loading areas such as Australia, Canada and Gulf Coast. However, we expect that increased demand for VLGCs from growing exports will in part be offset by a high level of newbuild deliveries. VLGC rates will also depend on the development of geographical LPG price arbitrage, positioning of vessels and U.S. terminal capacities. Longer term, we maintain our view that sustained U.S. LPG production growth and no further new build orders remain key to a balanced VLGC market.
On 1 January 2019, BW LPG adopted the new IFRS 16 ‘Leases’. The net impact was an increase of US$9.1 million on EBITDA. This was offset by a higher depreciation and interest expense of US$9.9 million, resulting in an increase in loss after tax of US$0.8 million
On 21 January 2019, BW Helios was delivered for recycling, generating US$6.6 million in liquidity and a net book gain of US$1.8 million.
On 25 February 2019, BW LPG established a new Product Services Division to support its core shipping business. The activities of this new division are financed by separate trade finance facilities.
Please see attachments for the full quarterly report and presentation.
1 BW LPG Q1 2019 Financial Results Presentation
2 BW LPG Q1 2019 Condensed Consolidated Interim Financial Information
BW LPG will host an investor presentation of the financial results at 14:00hrs CET today. The investor presentation will be made by Martin Ackermann (CEO) and Elaine Ong (CFO).
The investor presentation will be available via audio webcast which can be accessed at https://bwlpg.eventcdn.net/2019q1. The webcast will be available on BW LPG’s website, www.bwlpg.com as soon as possible after the presentation.
For further information, please contact:
Elaine Ong, CPA, CA
Chief Financial Officer
BW LPG Limited
Tel: +65 6705 5506
Head of Investor Relations
BW LPG Limited
Tel: +65 6705 5519
About BW LPG
BW LPG is the world's leading owner and operator of LPG vessels, owning and operating Very Large Gas Carriers (VLGC) and Large Gas Carriers (LGC) with a total carrying capacity of over 4 million cbm. With four 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's controlled fleet of over 400 ships includes oil tankers, LNG and LPG carriers, floating storage and regasification (FSRU) units, chemical tankers, dry cargo carriers and floating production storage and offloading (FPSO) units.
This information is subject to disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.