BW LPG Ltd Reports $150 Million Q1 Profit and Plans Move to Singapore

BW LPG Ltd, a Bermudian-incorporated liquefied petroleum gas (LPG) shipper, has reported a net profit of $150 million for the first quarter of 2024. This marks a significant increase from the $130.7 million reported in the same period last year. The company also announced plans to re-domicile to Singapore, pending shareholder approval on June 12.

The company's revenue for the quarter surpassed $1 billion, a notable rise from $893 million in Q1 2023. The strong financial performance was driven by daily vessel earnings of $59,400 and a fleet utilization rate of 95%.

BW LPG's time charter equivalent (TCE) reached $61,500 per available day, bolstered by a positive IFRS adjustment of $26 million. The company also reported a net gain of $20 million from the sale of the BW Princess and a $21 million profit from BW Product Services.

Why this matters: BW LPG's decision to re-domicile to Singapore and its strong financial performance have significant implications for the global liquefied petroleum gas shipping industry. This move could lead to increased market presence and access to capital, potentially influencing the industry's growth and competitiveness.

In addition to its financial achievements, BW LPG declared a dividend of $1 per share, which is equivalent to 93% of its earnings from shipping activities. The company also generated $468.5 million in free cash flow during the quarter and maintained an all-time low net leverage ratio of 7%.

BW LPG has made major advancements in its commercial operations, including a multi-year cargo contract with Enterprise Product Partners. This contract provides the company with the flexibility to double its current cargo volume in the US Gulf, enhancing its shipping and cargo trading capabilities.

The company also successfully listed on the New York Stock Exchange (NYSE) on April 29, 2024, in addition to its existing listing on the Oslo Stock Exchange. This move aims to increase the company's visibility and liquidity in the market.

The decision to re-domicile to Singapore is seen as a strategic move to enhance BW LPG's market presence and access to capital. The re-domiciliation will be subject to approval in a shareholder meeting scheduled for June 12. If approved, the scheme will be sanctioned by the Supreme Court of Bermuda and will become binding once a court order is filed with the Registrar of Companies in Bermuda.

The market outlook for BW LPG remains positive, with several indicators pointing towards growth. U.S. production and export volumes have increased by 8% and 14%, respectively, year-to-date. Additionally, CapEx plans by U.S. terminal companies aim to remove potential bottlenecks, further supporting the company's Financial growth.

As BW LPG prepares for its potential move to Singapore, the company continues to demonstrate strong financial performance and strategic growth initiatives. The upcoming shareholder meeting on June 12 will be a decisive moment in the company's history.

Key Takeaways

• BW LPG reports $150 million net profit in Q1 2024, up from $130.7 million in Q1 2023.
• Revenue surpasses $1 billion, driven by high vessel earnings and fleet utilization.
• Company plans to re-domicile to Singapore, pending shareholder approval on June 12.
• BW LPG declares $1 per share dividend and generates $468.5 million in free cash flow.
• Company lists on NYSE, signs multi-year cargo contract, and expects growth in US LPG market.