BW LPG (BWLPG) Investor presentation summary

Company overview

• Leading global owner and operator of VLGCs, with 46 owned and operated vessels and a 9% market share of the global VLGC fleet.

• Operates the highest number of dual-fuel and scrubber-fitted VLGCs, positioning for premium earnings.

• Integrated across the LPG value chain, including shipping and commodity trading through BW Product Services.

• Member of BW Group, which operates 356 vessels and has a $10.9bn market value in public investments.

• Top 20 shareholders own 68% of shares, with BW Group Limited holding 32%.

Strategy and capital allocation

• Focuses on disciplined, investment-led capital allocation, optimizing capital structure and shareholder returns.

• Maintains a dividend-focused strategy, paying out 90% of earnings as dividends since 2022.

• Ongoing fleet renewal with eight new Panamax dual-fuel VLGCs ordered for delivery 2029–2030, reducing average fleet age by ~3 years.

• Secured $300M through convertible bond issuance to partly finance newbuildings.

• Maintains low leverage (23.5%) and strong liquidity ($773M) to support growth and resilience.

LPG market and outlook

• US LPG exports grew 16% in 1H 2026, while Middle East exports declined 46% due to Strait of Hormuz closure.

• Longer voyages and Panama Canal congestion increased shipping demand and freight rates, with spot TCE rates peaking above $200,000/day.

• North American LPG export capacity is forecast to grow 18% in 2026, supporting structural trade growth.

• VLGC fleet aging, with 127 vessels to be 20+ years old by 2030, driving replacement needs.

• Market inefficiencies and trade disruptions are expected to sustain elevated freight rates.