BW LPG (BWLPG) investor relations material

Executive summary

• Q1 2026 profit after tax reached $187 million, with $164 million attributable to equity holders and EPS of $1.08, driven by strong shipping and trading performance, including large unrealized mark-to-market gains in Product Services.

• Declared a $0.67 per share dividend, reflecting strong quarterly profits and a forward-leaning capital return approach, with payout ratios ranging from 62% to 120% of Shipping NPAT.

• Signed contract for eight new Panamax VLGCs totaling $940 million, with deliveries from 2029 to Q2 2030, supporting fleet renewal and future-proofing operations.

• Q1 2026 saw significant geopolitical volatility, with Middle East conflict and Panama Canal congestion driving inefficiencies and record-high freight rates, especially for U.S. LPG exports.

Financial highlights

• Time charter (TC) income reached $55,500 per available day and $51,300 per calendar day, exceeding guidance, with fleet utilization at 92%.

• Q1 profit after minority interests was $164 million, with EPS of $1.08 and annualized earning yield of 25%.

• Product Services posted a gross profit of $127 million and net profit after tax of $98 million, mainly from unrealized mark-to-market gains.

• Net profit after tax totaled $187 million, including $9 million from India operations.

• Net leverage ratio improved to 26.3% from 28.4% at end-2025; available liquidity ranged from $618 million to $680 million.

Outlook and guidance

• Q2 2026 guidance: 85% of available days fixed at about $81,000 per day, well above all-in cash breakeven of $24,500.

• 42% of 2026 portfolio secured with fixed-rate time charters and FFA hedges at $44,800 and $48,100 per day.

• Increased time charter coverage to 53% of available days at higher rates, supporting stable future TCE income.

• Expect large part of Q1 mark-to-market gains to be realized by end of Q2.

• 13 vessels scheduled for dry docking in 2026, with 1,054 off-hire days expected in Q2.