BW LPG (BWLPG) Investor presentation summary

Company background and strategy

• Leading global owner and operator of 42 VLGCs, with 17 featuring dual-fuel propulsion technology, and integrated LPG trading and downstream investments in India.

• Listed on Oslo Børs since 2013 with a $2.3bn market cap and targeting NYSE listing in Q2 2024.

• Over $130 million invested in retrofitting 15 VLGCs with LPG dual-fuel technology, resulting in $11 million cost savings and 28,800Mt CO2 reduction in 2023.

• Paid out more than 73% of earnings as dividends since IPO, with a new share buyback program approved in May 2024.

• Part of BW Group, which operates 453 vessels and has a $13.9bn market value in public investments.

Financial performance and shareholder returns

• Q1 2024 net profit after tax was $150M, with $1.07 earnings per share and $661M available liquidity; net leverage ratio at 7%.

• Declared Q1 2024 dividend of $1.00 per share, representing 106% of shipping earnings and 93% of total earnings.

• Annualized ROE at 37% and annualized dividend yield at 22% for Q1 2024.

• Accumulated EPS since IPO is $15.94, with $11.60 DPS and 23% annualized dividend yield in 2024.

• Strong capital discipline with excess capital returned via dividends and debt repayments; $132M dividend distributed in Q1 2024.

Operational highlights and business model

• Achieved 95% fleet utilization in Q1 2024, generating TCE income of $61,500 per available day.

• Product Services trading arm delivered $33M gross profit and $21M net profit in Q1 2024, with ~5m tons of LPG traded annually.

• India operations expanded to 8 VLGCs, now handling 20% of India's LPG imports; new joint ventures and terminal investments underway.

• Integrated platform spans shipping, trading, and infrastructure, capturing value across the LPG supply chain.