BW LPG Limited Q2 FY2025 earnings call

• Shipping Performance: TCE exceeded guidance, with the time charter portfolio playing a vital role in protecting downside. Q3 guidance on fixed rates, and drydocking activities impact revenue potential.
• Trading Operations: Product Services had a disciplined approach and effective risk management in Q2, resulting in a net profit after tax of $6 million.
• Market Dynamics: VLGC market has solid fundamentals with U.S. and Middle East volume growth, but Panama Canal bottlenecks and rerouting affect tonne miles.
• Financing: Finalized $380 million term loan and revolving credit facility, and $215 million term loan facility for BW LPG India fleets, with a $250 million shareholder loan terminated due to ample liquidity.

Shipping: In Q2, TCE income was $38,800 per available day and $37,300 per calendar day, exceeding guidance of $35,000 per day. Q2 profit after minority interests was $35 million. 2025 is a busy drydocking year with 139 days in Q2, and expecting 143 and 135 days in Q3 and Q4 respectively. Q3 guidance is about $53,000 per day fixed for 90% of available days. Product Services: Achieved a gross profit of $15 million and profit after tax of $6 million in Q2. Realized gain was $6 million, with unrealized open positions having a $12 million increase in mark to market on cargo position offset by a $3 million negative movement in paper position.

• Q3 guidance: about $53,000 per day fixed for 90% of available days.
• Second half 2025: 34% of portfolio secured with fixed rate time charter and FFA hedge at $45,200 and $51,700 per day.
• Fleet drydocking: 139 days in Q2, expecting 143 and 135 days in Q3 and Q4 respectively.

• Geopolitical and market volatility impacting shipping and trading.
• Panama Canal bottlenecks causing rerouting and effect on tonne miles.
• Potential fleet growth saturation if not managed properly.

Q: Question regarding fleet growth and Panama register restrictions A: Discussed fleet size, growth absorption, and impact of Panama register restrictions on vessel registration Q: Question about Q3 guidance and drydocking A: Explained Q3 guidance considering time charter portfolio and drydocking timing effects Q: Question about Panama Canal congestion and U.S. impact A: Discussed container ship congestion and its impact on VLGC market Q: Question about spot rates and Panama Canal traffic A: Addressed spot rate sustainability and Panama Canal's role in market dynamics