BW LPG (BWLPG) Q3 2024 earnings summary

Executive summary

• Achieved Q3 2024 net profit after tax of $120 million, EPS of $0.79, and TCE income per available day of $46,800, with 98% fleet utilization.

• Declared $0.42 per share dividend, representing 100% payout of shipping NPAT and 53% of profit attributable to equity holders, totaling $61.6 million.

• Product Services posted $58 million net profit, mainly from $85.8 million–$108.4 million unrealized mark-to-market gains, with a $14.4 million realized trading loss.

• Five of 12 acquired Avance Gas ships delivered; nine to be delivered by December 2024, increasing shares outstanding to 146.7 million for Q3 dividend eligibility.

• Refinanced $400 million revolving credit facility with a new $460 million, seven-year facility, supporting ample liquidity and strategic fleet renewal.

Financial highlights

• Net profit after tax for Q3 was $120 million; profit attributable to equity holders was $104.7 million; EPS of $0.79; dividend per share of $0.42.

• Product Services gross profit for Q3 was $71 million–$71.7 million, including $86 million–$108.4 million unrealized mark-to-market gain and $14 million–$14.4 million realized trading loss.

• Book equity at end of Q3 was $1.6 billion–$1,637 million; annualized Q3 ROE and ROCE were 29.8% and 25.9%, respectively.

• Cash and cash equivalents at September 30, 2024, were $313.5 million; available liquidity at quarter-end was $750 million, expected to remain healthy post-fleet delivery.

• Adjusted free cash flow for Q3 2024 was -$27.5 million; YTD September was $494.2 million, up 12%.

Outlook and guidance

• Positive outlook for Q4 2024 and 2025, with US Gulf export levels stabilizing and potential upside from Panama Canal slot availability.

• 90% of Q4 available days fixed at about $36,000 per day.

• Time charter out portfolio expected to generate $69 million for 2024.

• North American LPG exports projected to rise by 10 million tons from 2024 to 2026; next phase of US export growth expected in 2H 2025.

• Demand growth remains strong in China, SE Asia, and Indian sub-continent.