BW LPG Financial Results for Q1 2020

(Singapore, 26 May 2020)

  • Achieved VLGC freight rates of USD 42,300 per day, generating a Net Profit after Tax of USD 81 million or an Earnings per Share of USD 0.58 (NOK 5.97)
  • Declared Q1 2020 cash dividend of USD 0.20 per share
  • Secured financing for the retrofitting of five dual-fuel LPG propulsion engines

Other Key Events during the Quarter

  • Delivered the only remaining LGC to new owners, generating USD 15 million in liquidity and a net gain of USD 5 million
  • Exercised options for the retrofitting of eight additional dual-fuel LPG propulsion engines, bringing our total investments in this pioneering propulsion technology to 12 vessels
  • Amended the existing USD 458 million Senior Secured Facility to convert USD 100 million of Term Loan to Revolving Credit Facility with all other terms unchanged
  • Took delivery of the last of two time charter-in VLGC newbuilds

Financial Performance

In the first quarter, BW LPG Limited (“BW LPG”, the “Company”, OSE ticker code: “BWLPG.OL”) reported a net profit after tax of USD 81 million, with an annualised return on equity of 27.6%.

Time Charter Equivalent (TCE) income amounted to USD 162 million in Q1 2020, mainly attributable to higher LPG spot rates and higher fleet utilisation. EBITDA for the quarter amounted to USD 126 million with an EBITDA margin of 78%. Earnings per Share was USD 0.58 for Q1 2020.

Net leverage ratio decreased to 48.9% in Q1 2020, mainly due to solid cash flows from operations, net of USD 118 million total dividends paid for 2019.

The Board has declared an interim cash dividend of USD 0.20 per share amounting to USD 28 million. The shares will be traded ex-dividend from 2 June 2020. The dividend will be payable on or about 12 June 2020 to shareholders on record as at 3 June 2020.

On 15 May 2020, the existing USD 400 million facility at LIBOR + 170bps was increased by USD 38 million with all other terms unchanged, to finance the retrofitting for five dual-fuel LPG propulsion engines.

Market Outlook

LPG Supply
Near term LPG exports are supported by the lagged effect of production changes on exports, high inventory in the US and the Middle East increasing production before the OPEC+ production cuts. In the medium to long term, LPG exports are negatively impacted by lower shale oil and gas production in the US, driven by low oil prices and OPEC+ production cuts starting from May 2020.

LPG Demand

Near term LPG imports are supported by the recovering demand in China and increasing retail demand due to COVID-19 lockdown measures. In the medium to long term, LPG imports are negatively impacted by lower demand from steam cracking as Naphtha becomes relatively cheaper than LPG. LPG imports are, however, supported by strong end user demand driven by a green trend towards cleaner energy and less domestic productions, due to lower refinery runs.

Fleet Capacity

Until the end of 2022, the newbuild orderbook stands at 35 vessels, which is 12% of the total VLGC fleet of 294 vessels. However, 10% of the total fleet will be older than 27 years by the end of 2022 and some of these vessels will likely be recycled.

Freight Rates

Near term rates have been supported by the lagged effect of production changes, accumulated inventory and firming retail demand from Asia. In the medium to long term, a weaker outlook for LPG supply coupled with a high order book is expected to put downward pressure on vessel utilisation. Recovery to a higher oil price environment may affect this outlook positively.

Q1 2020 Quarterly Report

Please see attachments for the full quarterly report and presentation.
  1. BW LPG Q1 2020 Financial Results Presentation
  2. BW LPG Q1 2020 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 Anders Onarheim (CEO), Elaine Ong (CFO) and Niels Rigault (EVP, Commercial).

The investor presentation will be available via audio webcast which can be accessed at webcast will be available on BW LPG’s website,, 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


Iver Baatvik
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) 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

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.

This information is subject to disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.