CEO Anders Onarheim spoke about the increasing relevance of LPG in the global energy mix, our focus on returning value to shareholders through profitability and returns how a strong VLGC market and translate into attractive dividend yields.
Date: 13 October 2022
Event: ABG Sundal Collier Shipping Seminar
Download presentation here
Why Does LPG Matter?
LPG is efficienct, clean, versatile and cheap. LPG is portable and does not require large investments into infrastructure, can be transported long distances without loss of energy, and produces the most energy per unit than any other fossil fuel. LPG is is non-toxic and can reduce carbon emissions substantially. LPG has over 1000 applications across commercial, retail and industrial segments. LPG is affordable, especially in current energy environment.
Focused on Profitability and Returns
BW LPG consistently outperforms its peers when measured by Annualised earnings yield, ROE, ROCE and EBITDA margin. LPG shares are currently trading at subdued prices versus other segments in shipping. Since IPO, we have paid out 62% of our earnings as dividends. Read more about our share performance here.
Strong long-term growth fundamentals. We see increasing relevance for LPG in today’s energy environment. There continues to be positive underlying fundamentals for the market, and the distance between Supply and Demand sources continues to drive demand for shipping.
Market leading profitability. We offer the highest returns amongst peers, and we have a low cash breakeven and a solid balance sheet with ample available liquidity of
$360 million with record low net leverage ratio of 25% to-date.