Pareto Securities’ 29th Annual Energy Conference

Anders Onarheim BW LP CEO


CEO  Anders Onarheim spoke about the increasing relevance of LPG in the global energy mix, the growing global LPG market, our focus as a company on shareholder returns, and how we are shipping smarter with initiatives on many fronts – through advancing technology onboard our vessels; and with sound corporate actions such as increasing our presence in India (an important LPG market) and expanding our Product Services division. Our focus on returning value means our investors can look forward to strong long-term growth fundamentals and market-leading profitability.

Date: 15 September 2022
Event: Pareto Energy Conference
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Key Highlights

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 Safe and Sustainable Shipping

We invested US$130M to retrofit 15 of our Very Large Gas Carriers with pioneering LPG dual-fuel propulsion technology – this multi-year project was completed on time and within budget. It represented the largest commitment towards decarbonisation in the sector and LPG-powered vessels are in full compliance with upcoming environmental regulations including CII/EEXI requirements

Expanding Our Presence in India

Our subsidiary BW LPG India is our gateway to a promising market. India is one of world’s fastest-growing LPG consuming nations, supported by strong government push and with significant growth potential in both retail and petrochemical market. With a fleet of eight world-class Indian-flagged vessels, we have captured 38% of the time-charter market in India. With equity partner Maas Capital alongisde us, we are committed to co-invest in future infrastructure growth opportunities in India.

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.

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