BW LPG Limited Q1 FY2025 earnings call

• Financing and Fleet: Concluded a Japanese JOLCO lease for 1 vessel, refinanced a $380 million bank loan, reactivated share buyback program, sold 2015-built vessels to strengthen Indian flag fleet, and discontinued LPG import terminal in India.
• Market Conditions: Impact of U.S.-China tariff war on LPG trade, shift of U.S. LPG to other markets, expansion of U.S. terminal operators, monitoring Panama Canal traffic, proposed U.S. port charges hike, and order book at 109 ships.

Shipping Segment: For Q1, TCE income was $39,800 per available day and $38,800 per calendar day, above guidance. After minority interest, Q1 profit was $46 million ($0.30 per share). The time charter portfolio was 41% of total shipping exposure, with 30% fixed rate time charter. Q2 2025 fixed 79% of available fleet days at ~$35,000 per day. For 2025, time charter-in fleet estimated to generate ~$24 million profit, and time charter-out portfolio ~$137 million. Product Services Segment: Realized positions showed $33 million profit in Q1, but unrealized positions led to a net loss after tax of $12.5 million. Book equity was $53 million, with an unrealized shipping position of $8 million not included.

• Reactivated share buyback program after share price improvement. - Fixed 79% of Q2 2025 fleet days at ~$35,000 per day. - Secured future fixed rate time charters and FFA at $45,000 and $50,600 per day respectively.

• Geopolitical risk led to discontinuing LPG import terminal in India. - Volatility in mark-to-market valuations of Product Services positions.

Q: Just wanted to understand our broader strategy on the India LPG terminalling business. Why was this decision taken?

A: The terminal investment was a modest sum, but due to challenging market and geopolitical turmoil, management focused on core value drivers (shipping and trading).

Q: Can you guys still continue to buy back shares should they fall?

A: We have a renewed share buyback program, but main value return is through dividends.

Q: Do you have extension options on your existing time charter contracts? Would you prefer to increase TCEs or routes?

A: Some time charters have options, but not included on slides. Aim to increase time charter share, but not rushing into unattractive levels.

Q: How did the tariff turmoil affect operations and visibility on Q2 results?

A: Product Services portfolio shifts daily/weekly; trading update in mid-July for Q2 status.

Q: Is there any impact in quarter 2 on one-time cost for finishing the Indian terminal business?

A: No significant one-time cost to account for at this stage.

Q: What is the confidence level for the product service VAR?

A: Confidence level is 95%.

Q: Could you give more color on the decision to limit share buybacks?

A: Limitations on daily execution and entering blackout period led to limiting share buybacks.