BW LPG (BWLPG) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with net profit after tax of $85 million, EPS of $0.58, and profit attributable to equity holders of $76.8 million, supported by robust shipping and trading performance.

• Declared a Q2 dividend of $0.58 per share, representing a 100% payout of NPAT and totaling $76.4 million.

• Announced acquisition of 12 Avance Gas VLGCs for $1.05 billion, expanding the fleet by 44% to 53 vessels by early 2025, with 22 dual-fuel ships.

• Successfully redomiciled from Bermuda to Singapore and completed a US listing, enhancing investor access and share liquidity.

• Invested $30 million for an 8.5% stake in Confidence Petroleum India Limited.

Financial highlights

• Q2 2024 net profit after tax: $85 million; profit attributable to equity holders: $76.8 million; EPS: $0.58.

• TCE income (Shipping) Q2 2024: $49,700 per available day, $48,000 per calendar day; fleet utilisation 95% with 3% technical offhire.

• Product Services segment Q2 2024: $26 million gross profit, $16 million net profit, $29 million realized gain offset by $5 million unrealized loss.

• Available liquidity at quarter-end: $578 million; net leverage ratio: 12%.

• Annualized Q2 return on equity: 21%; return on capital employed: 17%.

Outlook and guidance

• 86% of Q3 available days fixed at $43,000–$43,300 per day; 2024 time charter out coverage at 32% at $44,500 per day.

• Time charter out fleet expected to generate $68 million profit for 2024.

• Net leverage ratio projected to rise to 30%-35% post-acquisition, from 12% in Q2.

• FFA market for CAL2025 trading at ~$50,000 per day, supporting current spot market levels.

• North American LPG export growth expected in high single digits, Middle East in mid-single digits over next three years.