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CEO’S LETTER

2014 earnings benefited from the first

full year of the significant fleet additions

made in 2013, on top of historically

high spot rates. Utilisation across the

global fleet was high through the year,

and VLGCs in particular benefited from

US export growth and the strong Asian

demand. BW LPG delivered a net profit

after tax of USD 256 million, which was

more than double that of 2013. On the

back of these results and the Company’s

strong balance sheet, the Board has

recommended exceptional dividend

payouts at 100% of net profit after tax,

sharing this success with investors.

Safety, security, and efficiency of

operations remain top priorities. In spite

of high levels of vigilance and good safety

statistics, we sadly experienced one

fatality during a drydocking in Singapore.

In 2014, the ‘Zero Harm’ project will

be extended across the fleet to assist

in continual improvement of safety

performance. Technical performance

has been solid throughout 2014 with

the fleet experiencing minimal technical

downtime, particularly important in such

strong markets.

2014 provided an excellent environment

for profitability, therefore asset prices for

second hand and new ships were high. As

such we were not active in acquisitions

or new ordering. The Company continues

to pursue growth through storage and

logistics projects and other NGL-shipping

related opportunities, and will continue

to seek opportunities to add tonnage at

pricing which is value-accretive in the long-

term. Purchase options have been declared

where these enable us to grow the fleet in

a constructive way.

The fleet has however been growing

through our newbuilding program at

Hyundai Heavy Industries in South Korea.

In November 2014 we took delivery of the

VLGC BW Aries, and in February 2015 held

the ship naming ceremonies for BW Carina,

BW Gemini, and BW Leo. After delivery of

these vessels in the first half of 2015, four

newbuildings remain.

2015 has opened yet again with a first

quarter spot rate environment at an

all-time high for a first quarter. The

balance sheet is strong and the Company

has secured competitively priced debt

financing. The contract portfolio and

customer base are also strong, and with a

continued focus on safety and quality, the

Group is positioned to continue to deliver

long-term shareholder value.

Nicholas Gleeson

Chief Executive Officer

BW LPG has achieved excellent operational and financial outcomes in 2014, a year which has shown

substantial growth and exceptional charter rates. Our leading VLGC position was enhanced by the

acquisition of additional second-hand tonnage in 2013, enabling BW LPG to be the most important

maritime contributor to exports of LPG from the United States. With the highest operating cash flows

ever achieved in BW’s history of LPG, investors have benefited from strong dividend payouts. Dividend

yield was 27% based on the year-end share price. Strong cash flow has been secured for 2015-18 through

contracted employment with high quality counterparties, while we continue to benefit from exceptional

spot rates. A further 7 VLGC newbuildings are delivering into the fleet in 2015-16. This growth is supported

by USD 400 million of new debt raised at competitive pricing of 1.7% over LIBOR. The Company is thus

well positioned to continue to deliver solid shareholder returns in the years to come.

3

Annual Report 2014