BW LPG (BWLPG) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 2024 results with net profit after tax of $85 million (EPS $0.58), supported by robust shipping and product services performance.

• Declared a Q2 dividend of $0.58 per share, representing a 100% payout of quarterly profit.

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

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

• Product Services segment posted a net profit of $16 million, with realized gains offset by some unrealized losses.

Financial highlights

• Q2 2024 net profit after tax was $85 million, including $12 million from BW LPG India and $16 million from Product Services.

• TCE income (Shipping) reached $49,700 per available day and $48,000 per calendar day in Q2 2024.

• Available liquidity stood at $578 million and net leverage ratio was 12% at quarter-end.

• Earnings per share reached $0.58, translating to an annualized earnings yield of 12%.

• Product Services delivered $25 million gross profit and $16 million net profit in Q2.

Outlook and guidance

• Q3 2024: 86% of available fleet days fixed at $43,000/day; forward market pricing for Houston-Chiba benchmark at ~$50,000/day heading into winter.

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

• Robust Chinese and Asian LPG demand likely to support wide US-Far East arbitrage and shipping demand.

• Modest global VLGC fleet growth expected over next 18 months, with significant dry-docking reducing capacity.