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CHAIRMAN’S STATEMENT

Looking more broadly at the global

economic environment, there are many

uncertainties. Extraordinary stimulus

measures starting in the US and extending

to China, Japan and now Europe, have

resulted in high levels of liquidity and

low interest rates. Oil prices halved in a

short period of time into the new year,

leading to a significant reduction in capital

spending plans amongst oil and gas

companies. The broader shipping industry

continues to be challenged by oversupply

and uneven demand.

Against this backdrop, the VLGC sector

stood out as the best performing shipping

segment through the year. Annual ROE of

23.7% in the Company’s first full year as a

stock listed company saw the company off

to a roaring start.

Whilst BW LPG only listed in November

2013, the Company has a long history in

LPG shipping which traces back to 1978.

During the past 37 years, the Company has

developed deep knowledge of the sector, a

large pool of highly experienced seafarers,

and strong customer relationships – all of

which have positioned the Company to

benefit from recent market growth.

We have also been growing our fleet

with modern vessels to meet increasing

customer demand for shipping capacity.

In November 2014, the Company took

delivery of the first in a series of eight

VLGC newbuildings from Hyundai Heavy

Industries in Korea. An additional three

vessels are being delivered in rapid

succession during the first half of 2015.

We are not alone in adding capacity to the

world fleet, and while we have posted record

earnings for the past year, we are mindful

of the need for a balanced approach to the

future. The strength of our balance sheet,

our relationships and our organisational

capabilities need to be measured over a

period longer than a few quarters. We have

maintained a healthy balance of fixed income

coverage, and continue to work on longer

range projects which can deliver returns in

adjacent sectors. Such actions will help to

ensure the company continues to deliver

through the cycle.

2014 was the first full year of operation as

a listed company, and the company has

benefited from the efforts of our shore and

shipboard teams. We are grateful for the

leadership of CEO Nicholas Gleeson, who

will in due course be returning to his role as

CFO of BW Group. Martin Ackermann will be

taking on the CEO role and work to further

strengthen our commercial position as the

leading LPG fleet. We are also grateful for

the support of all stakeholders – customers,

banks, investors, suppliers – who have

demonstrated their belief in BW LPG and

helped the company to grow.

Andreas Sohmen-Pao

Chairman

2014 is a year in which we saw the global LPG export market

change dramatically with the United States, until recently a net

importer of LPG, becoming the world’s largest exporting nation.

This has resulted in a substantial growth in seaborne LPG, both in

terms of volumes carried and distance travelled, creating a very

positive environment for BW’s core business of LPG transportation

in VLGCs (Very Large Gas Carriers).

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BW LPG