BW LPG Limited reported a Q2 2021 web revenue after tax obligation of USD 23.1 million, generating an annualised return on equity of 7.1% with USD 80.8 numerous totally free capital. EBITDA was USD 54.8 million for Q2 2021, standing for an EBITDA margin of 58.3% for the quarter. Earnings per share was USD 0.16.

Q2 2021 VLGC products prices were USD 24,500 per schedule day, or USD 27,500 per readily available day with 96% business usage. Time Charter Equivalent (“TCE”) earnings lowered to USD 94.0 million for Q2 2021, generally because of reduced LPG place prices and also reduced fleet exercise, the last because of the retrofitting of 4 VLGCs with LPG dual-fuel propulsion engines. There are 8 LPG-powered VLGCs on water to-date.

The Board has actually stated a Q2 2021 money reward of USD 0.10 per share amounting to USD 13.8 million. The shares will certainly be traded ex-dividend on and also from 31 August 2021. The reward will certainly be payable on 17 September 2021 to investors on document since 1 September 2021.

Representation Image– Credits: BW LPG

BW LPG enhanced our equity share in our Indian joint endeavor from 50% to 88.4%. Our equity financial investment is currently represented as a subsidiary and also the remeasurement of our existing equity rate of interest was a gain of USD 9.8 million.

The sale and also shipment of BW Empress (2005-built, Mitsubishi Heavy Industries) for additional trading was wrapped up in April, creating a web gain of USD 9.9 million.

Subsequent Events

BW LPG protected a USD 45 million shift lending (rotating credit report center) in August, for the retrofitting of 6 VLGCs with LPG dual-fuel propulsion engines at LIBOR + 170bps. This is an upsize of the existing USD 290 million term lending center whose terms continue to be unmodified.

The sale and also shipment of BW Confidence (2005-built, Mitsubishi Heavy Industries) for additional trading was wrapped up inJuly The sale and also shipment of BW Boss (2002-built, Kawasaki Heavy Industries Ltd.) and also BW Energy (2002 developed, Kawasaki Heavy Industries Ltd.) for additional trading were wrapped up inAugust These produced USD 81.0 million in liquidity and also a web gain of USD 9.0 million.

BW LPG worked out the acquisition alternative for Yuricosmos (2010-built, Mitsubishi H.I) inAugust Renamed BW Niigata, its acquisition is anticipated to produce a return on funding used (ROCE) of 8%.

Market Outlook

VLGC products prices revealed solid renovation in Q2 2021. TCE prices enhanced from OPEX degrees in very early March to over USD 40,000 daily in mid-May This was sustained by solid recuperation in united state LPG exports after an exceptionally cool wintertime, progressive easing of manufacturing cuts from the Middle East, and also opening up geographical LPG cost arbitrage in between the united state and also the Far East.

Nevertheless, the marketplace stays unpredictable, with prices decreasing in June and also dropping listed below money breakeven in very earlyJuly This was mostly driven by reducing LPG cost arbitrage from the united state to Asia because of solid united state LPG costs and also fractionator-related manufacturing concerns in Saudi Arabia.

For the remainder of 2021, we anticipate VLGC products prices to typical over money breakeven. This is driven by ongoing development in united state LPG exports and also recuperating quantities from theMiddle East However, products price volatility is anticipated to continue to be high, as solid united state LPG costs and also reduced united state LPG supply might tax the cost arbitrage required to drive exports out of the united state in the wintertime. In the tool term, we continue to be positive for 2022, yet the high variety of current newbuild orders has actually enhanced the unpredictability for 2023.

Reference: bwlpg.com