BW LPG Limited Q4 FY2025 earnings call

• Q4 began with lower US-China relationship impact as reciprocal port tariffs lifted/postponed. US propane inventories built above trend. Winter had no major cold season disruptions. • Q4 TCE and profit above guidance. BW Product Services had strong gross and net profit. Full-year 2025 realized trading results $66M. • Q1 2026 guidance on $54,000 per day fixed for 94% available days. • Continuing active drydocking program in 2026 with 13 vessels scheduled, 193 off-hire days in Q1. • Middle East situation: three ships in Arabian Gulf, two on time charter, one in dry dock. Open spot vessel for AG loading could be available end of March. Fixed vessel at ~$80,000 per day. Secured three-year time charter-out contracts for two VLGCs, increasing 2026 fixed-rate time charter-out coverage to 36%. • Market fundamentals: US propane inventories high, supported US export volumes. US-Far East arbitrage supported shipping. Geopolitical events and infrastructure expansions contributed to strong market. • Trade flows: Chinese imports from North America/Middle East fell in 2025 but rising in 2026. India's LPG imports from US growing. Southeast Asia saw increased imports from North America. • Fleet and orderbook: Fleet 421 VLGCs, orderbook 105 VLGCs under construction. • Shipping performance in 2025: above guidance with healthy time charters and FFAs. Q1 2026 fixed 94% of available fleet days at ~$54,000 per day. Full-year 2026 fixed-rate time charters and FFA hedges at $43,747.90 per day. • Product Services: realized gain in Q4, mark-to-market movements, net profit after tax, good dividend capacity. Trading model combines cargo, paper, and shipping positions. • Financial highlights: net profit after tax $123M, profit attributable to equity holders $104M, EPS $0.69, annualized earning yield 21%. Net leverage ratio down. Liquidity strong, repayment profile sustainable.

For Q4, TCE income was $50,300 per available day and $48,100 per calendar day, above guidance. Profit after minority interest was $104 million. BW Product Services had gross profit of $27M and profit after tax of $23M. For Q1 2026, guiding on ~$54,000 per day fixed for 94% of available days. Shipping TCE in 2025 was $48,100 per calendar day or $50,300 per available day with 94% fleet utilization. Product Services had realized gain of $12M in Q4, net profit after tax of $23M, net asset value at $53M. Net profit after tax for the quarter was $123M, net leverage ratio 28.4% down from 32.7% in 2024. Balance sheet had shareholders' equity of $1.9B, annualized ROE 26% and ROCE 19% in Q4. 2025 OpEx $8,800 per day. 2026 owned fleet operating cash breakeven ~$18,500, all-in cash breakeven $23,400. Liquidity $613M as of end Q4, trade finance utilization $182M.

• Q1 2026 guiding on about $54,000 per day fixed for 94% of available days. • For full-year 2026, secured 40% of portfolio with fixed-rate time charters and FFA hedges at $43,747.90 per day. • 2026 owned fleet operating cash breakeven ~$18,500, all-in cash breakeven $23,400.

• Middle East situation: disruption of Middle East exports, uncertain duration. Halting of ships passing in and out of Arabian Gulf. Impact on Middle East exports short term. US may not replace Middle East volumes in medium term. • Panama Canal utilization: frequently at max capacity, diverting VLGCs around South Africa. • Fleet and orderbook: Orderbook relatively large, need to absorb inefficiencies. Trade pattern and Panama Canal capacity will affect shipping capacity needs. • Insurance and war risk: Difficulty in insuring ships passing through Strait of Hormuz currently, war risk premium difficult to assess.

Q: About the Middle East unrest, current Iranian volumes and convoys.

A: No full overview of Iranian exports, unconfirmed reports of ships planned, no concrete news on convoys.

Q: FFA rates and TC market.

A: Before weekend, one-year time charter done in mid-$50,000s per day, current situation fluid.

Q: US LPG project utilization and spare capacity.

A: US terminals have slack capacity, can optimize berthing, anticipate some slack for VLGCs.

Q: Vessels in Middle East conflict zone.

A: Two ships on time charter, one in dry dock, minimal financial impact so far.

Q: Trading profit and dividend distribution.

A: Product Services realized trading result builds dividend capacity, declared dividend for Q4 2025 only 100% shipping NPAT, Product Services dividend approved to be considered in future quarters.

Q: Ships in conflict zone names and further fleet acquisition.

A: Ships are BW Element, BW Elventier, BW Loyalty; considering further expansion of Indian-flag fleet.

Q: Delay drydocking for high charter rates.

A: Try to optimize, first quarter usually weakest, plan around commercial program and docking yard availability.

Q: War disruption and long-term charter rates.

A: So far, no serious talks about time charters.

Q: Scrapings and spot rates.

A: Scrappings depend on freight, current levels not leading to much scrapping.

Q: Three ships in conflict zone revenue risk.

A: So far, no impact as far as seen.

Q: US capacity expansion and ships needed.

A: Trade pattern and Panama Canal congestion affect, need to look at numbers further.

Q: US project online timing.

A: Energy Transfer ramping up, Enterprise expanding flex capacity first then LPG-specific capacity later this year.