30 August 2018
Q2 2018 Condensed Interim Financial Info
(Singapore, 30 August 2018)
- VLGC TCE rates averaged US$14,800 per day
- TCE income of US$61.2 million, EBITDA of US$8.1 million and loss after tax of US$27.1 million, resulting in a loss per share of US$0.20
- BW Denise was sold and BW Havis was recycled in April 2018
- Proposal to combine with Dorian LPG was enhanced from 2.05 to 2.12 BW LPG shares for each Dorian LPG share.
- Entered into contracts to retrofit dual-fuel LPG propulsion engines on four VLGCS, including future options.
EBITDA for the second quarter amounted to US$8.1 million (Q2 2017: US$39.6 million), a decrease of US$31.5 million from the same quarter last year mainly due to the decline in LPG spot earnings and a smaller fleet size.
Loss after tax for the quarter amounted to US$27.1 million (Q2 2017: loss after tax of US$7.0 million), primarily due to the decline in LPG spot earnings and a smaller fleet size.
The VLGC market remained weak in the second quarter as inventory restocking in the U.S. ahead of winter resulted in lower exports. VLGC rates averaged roughly US$22.0 per ton on the benchmark Baltic route in April before recovering slightly to US$27.0 per ton in May and US$30.4 per ton in June as increased fixing activity coupled with improved arbitrage economics and limited discounted trader relets provided some support on VLGC rates.
BW Denise was sold, and BW Havis was recycled in April 2018, generating US$13 million in liquidity.
On 29 May 2018, BW LPG proposed to combine with Dorian LPG in an all-stock transaction. Subsequently on 9 July 2018, BW LPG increased the all-stock proposal to combine with Dorian LPG from 2.05 to 2.12 BW LPG shares for each Dorian LPG share. The transaction is valued at US$1.1 billion.
On 30 August 2018, BW LPG entered into contracts to retrofit dual-fuel LPG propulsion on four VLGCS, including future options. With the world’s first LPG-fuelled engines, BW LPG continues its emphasis on reducing global emissions and promoting a fuel-efficient alternative for the shipping industry.
Please see attachments for the full quarterly report and presentation.
1. BW LPG Financial Results Presentation Q2 2018
2. BW LPG Q2 2018 Condensed Consolidated Interim Financial Information
BW LPG will host an investor presentation of the financial results at 4:00hrs 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://edge.media-server.com/m6/p/9gszo8nj.
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 fleet of over 180 vessels 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.