BW LPG (BWLPG) Pareto energy conference presentation summary

Market position and strategy

• Leading integrated LPG company with operations across the value chain and a fleet of 53 owned and operated VLGCs, including 22 dual-fuel vessels.

• Focus on disciplined growth, shareholder returns, and capital discipline, with 74% of earnings paid as dividends since IPO.

• Recent acquisition of 12 modern VLGCs from Avance Gas, expanding the fleet by 44% and increasing share count by only 15%.

• Strategic investments in trading and infrastructure, including an 85% stake in Vilma LPG trading and a $30 million investment in Confidence Petroleum in India.

• Dual listing on Oslo Børs and NYSE to access deeper capital markets and improve liquidity.

Financial performance and shareholder returns

• Achieved 27% annual returns to investors since IPO, with a market cap of $2.0bn and over $1.1bn in free float.

• Paid out $455m in dividends in 2023 (98% payout ratio) and $208m in 1H 2024 (96% payout ratio).

• New share buyback program approved in May 2024 to enhance shareholder value.

• Maintains strong capital discipline, using excess capital for dividends and debt repayments.

Market outlook and industry trends

• VLGC market supported by strong supply growth, with US propane production up 7.1% YTD and net exports up 13%.

• Asia, especially China and India, driving robust demand growth for LPG, with long-haul shipping volumes rising.

• Newbuild VLGC deliveries abating, with less than 5% fleet growth expected in the next 18 months.

• Spot rates remain healthy as Panama Canal transits normalize and global LPG exports continue to grow.