BW LPG (BWLPG) ABG shipping seminar presentation summary

Market position and financial performance

• Operates the world's largest fleet of VLGCs, with 53 owned and operated vessels after acquiring 12 from Avance Gas.

• Achieved a 28% annual return to investors since IPO and a 15% annualized dividend yield in 2024.

• Paid out 74% of earnings as dividends since IPO, with $1.58 per share in 1H 2024.

• Maintains a robust balance sheet and strong shareholder support as part of BW Group.

• Current market capitalization is approximately $2.0 billion, with dual listing on Oslo Børs and NYSE.

Strategic growth and fleet expansion

• Acquired 12 VLGCs from Avance Gas, increasing owned fleet by 44% and only raising share count by 15%.

• Fleet renewal includes 4 dual-fuel and 6 scrubber-fitted vessels, with an average age of 6.8 years.

• Transaction funded through equity issuance, sale-leaseback debt, cash, and a shareholder loan.

• Pro forma total owned and operated fleet significantly expanded, supporting market leadership.

• Maintains a healthy balance sheet post-acquisition.

Market environment and operational strategy

• VLGC spot rates are rebounding, driven by strong LPG export volumes and robust Asian demand.

• Panama Canal inefficiencies have caused significant rate volatility, with newbuild deliveries abating.

• Maintains prudent coverage of 35-40% of fleet capacity to manage market volatility.

• Integrated platform includes shipping, trading, and infrastructure to capture value across the LPG value chain.

• Q3 trading update reported an estimated net profit of ~$60 million from Product Services.