Brief: BW LPG Q1 Result After Tax Swings To Profit Of $81 Mln

BW LPG

26/05/2020 07:12

May 26 (Reuters) - BW LPG Ltd  BWLPG.OL :
    * BW LPG FINANCIAL RESULTS FOR Q1 2020
    * DECLARED Q1 2020 CASH DIVIDEND OF USD 0.20 PER SHARE
    * ACHIEVED VLGC FREIGHT RATES OF USD 42,300 PER DAY IN Q1
    * NET LEVERAGE RATIO DECREASED TO 48.9% IN Q1 2020, MAINLY
DUE TO
SOLID CASH FLOWS FROM OPERATIONS
    * TIME CHARTER EQUIVALENT (TCE) INCOME AMOUNTED TO USD 162
MILLION
IN Q1 2020, MAINLY ATTRIBUTABLE TO HIGHER LPG SPOT RATES AND
HIGHER FLEET UTILISATION
    * IN MEDIUM TO LONG TERM, LPG EXPORTS ARE NEGATIVELY
IMPACTED BY
LOWER SHALE OIL AND GAS PRODUCTION IN US,
    * NET LEVERAGE RATIO DECREASED TO 48.9% IN Q1 2020, MAINLY
DUE TO
SOLID CASH FLOWS FROM OPERATIONS
    * IN MEDIUM TO LONG TERM, LPG IMPORTS ARE NEGATIVELY
IMPACTED BY
LOWER DEMAND FROM STEAM CRACKING
    * NEAR TERM LPG IMPORTS ARE SUPPORTED BY RECOVERING DEMAND
IN
CHINA AND INCREASING RETAIL DEMAND DUE TO COVID-19 LOCKDOWN
MEASURES
    * LPG IMPORTS ARE SUPPORTED BY STRONG END USER DEMAND DRIVEN
BY A
GREEN TREND TOWARDS CLEANER ENERGY AND LESS DOMESTIC
PRODUCTIONS,
    * IN MEDIUM TO LONG TERM WEAKER OUTLOOK FOR LPG SUPPLY
COUPLED
WITH HIGH ORDER BOOK IS EXPECTED TO PUT DOWNWARD PRESSURE ON
VESSEL UTILISATION
    * 10% OF TOTAL FLEET WILL BE OLDER THAN 27 YEARS BY END OF
2022
AND SOME OF THESE VESSELS WILL LIKELY BE RECYCLED.
    * Q1 PROFIT AFTER TAX $81 MILLION VERSUS LOSS $24 MILLION
YEAR AGO

Source text for Eikon:  ID:nObiGY8vRa 
Further company coverage:  BWLPG.OL 

 (Gdansk Newsroom)
 ((gdansk.newsroom@thomsonreuters.com; +48 58 778 51 10;))