Operational Excellence & Effective Management

We want to be our customers’ first choice for LPG shipping

Operational Excellence at Effective Management at BW LPG
Operational excellence and effective management

As the world’s largest owner and operator of Very Large Gas Carriers (VLGCs), we take pride in offering industry-leading customer service and operational excellence.

Quality Management System

Our Quality Management System (QMS), which takes reference from ISO 9001, is our repository of processes and management systems which guide our delivery of consistent and quality operations. The QMS is regularly reviewed and updated. Regular internal audits are also conducted to ensure that we are adhering to these processes. Any suggestions for improvements are taken into consideration for continuous improvement to our management systems and processes.

Risk management

A crew overseeing STS operations at sea onboard BW Balder

BW LPG has integrated ESG considerations into the business and therefore includes ESG-related risks into our overall risk management process. Our Enterprise Risk Management (ERM) is based on the principles from the ISO 31000 and the Committee of Sponsoring Organization’s (COSO) ERM Framework. The risk management process is implemented using a risk register which considers all possible risks, with applicability assessed in terms of impact and probability. This register supports risk identification and follow-up of critical risks and related mitigation measures.

We regularly monitor our risk framework, policy and review processes to ensure appropriate and efficient mitigation of risk.

Economic performance and benefits

Adapting to our changing world requires an understanding that success as a company must be defined by more than the bottom line. It is also about creating value for society – making people’s lives better, enabling economies to grow, and protecting the environment for future generations. By embedding sustainability into our business strategy and operations, we will not only create a better company but a better world.

For BW LPG to play this role in society, we also need to be financially sustainable. Our economic strategies therefore have a dual objective: to achieve good financial results while incorporating environmental and social considerations, and to ensure long-term sustainability of our business and operations.

Monitoring our financial performance

Our Return on Equity (ROE) performance is measured on a quarterly basis and reported in a transparent manner to our investors during our earnings release. Time Charter Equivalent (TCE), a standard industry performance measure for earnings, is monitored daily and guides our commercial strategy. We regularly benchmark against the Baltic Index and our peers to determine how we are performing.

Cost control is also part of our strategy as we monitor our Vessel Operational Expenditure (OPEX) monthly and benchmark against industry peers to ensure we remain competitive.

Sharing knowledge and best practices

Ship to Ship Transfer or STS of LPG bunker and coolant at sea

BW LPG regularly collaborates with other affiliates within the BW Group to share knowledge and best practices on procurement, with the aim to streamline processes and policies, leverage on each other’s understanding of the market and make full use of available resources.

One positive outcome has been the creation of a new Resource Planning system, a one-stop solution for ship management purchasing which further automates the purchasing function for our fleet. A Procurement Manifest has also been set up to ensure mutually beneficial contracts for both BW LPG and our vendors. We leverage on volume and shared resources across affiliates to optimize the conditions of the contract and manage risks.

Sustainability and Economic Benefits

Sustainability PrioritiesResults inEconomic Benefits
Emissions to Air• Reduced GHG emissions across our fleet
• Full compliance with IMO regulations
• Investment in LPG propulsion technology opens new markets and demand for LPG
• New LPG dual-fuel technology reduces maintenance costs and buffers against bunker
price volatility
• Continued license to operate in compliance with all international regulations
• Eligible for sustainability-linked financing which
helps lower borrowing cost
Energy Management• Optimise vessel efficiency and voyage
operations
• Reduced fuel costs
• Increased commercial availability means more charters
Ship Recycling• More responsible and transparent ship recycling
• Uplifting some of the poorest communities in the developing world
• Eligible for green financing and better rates from capital lenders
Spills to Sea• Protect ocean healthContinued license to operate
Community Engagement• Uplifting communities with a cleaner source of energy• Increase demand for LPG as fuel
Health and Safety• Crew and employees who are well emotionally, mentally and physically
• Good work-life balance benefitting family as building blocks of society
• Increased efficiency
• Reduced medical costs
• Higher retention, lower turnover
• Recruitment of top talent
Employee Relations• A skilled, committed and engaged workforce benefitting from fair employment practices• Recruitment of top talent
• Committed and engaged workforce
• Higher retention, lower turnover
Diversity and Inclusion• A diverse workforce reflecting our customers, thriving in an inclusive work environment• Better customer service
• Recruitment of top talent
• Committed and engaged workforce
• Higher retention, lower turnover
Governance and Compliance• Reputation for ethical and responsible business conduct• Continued license to operate
• Preferred LPG shipping partner for traders and
oil and gas majors
Operational Excellence and Effective Management• Optimise business processes through innovation and quality management• Reduced fuel costs
• Increased commercial availability means more charters
Anti-Bribery and Anti-Corruption• Uphold business integrity in a global stand against bribery and corruption in the maritime industry• Continued license to operate
• Preferred LPG shipping partner for traders and oil and gas majors
Economic Performance and Benefits• Generate sustainable economic value for our stakeholders• Dividends to our shareholders
• Increasing net asset value of the company