I have covered several companies in the shipping industry over the years, but BW LPG Limited (NYSE: BWLP ) never managed to draw my attention. But its case appears quite interesting to me today because very large gas carrier ratesI cover stocks that I usually own or that I like to research. I also believe in the future of Bitcoin. Follow me for intricate ideas and (hopefully) market-beating returns :) .Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies men ...

I have covered several companies in the shipping industry over the years, but BW LPG Limited (NYSE: BWLP ) never managed to draw my attention. But its case appears quite interesting to me today because very large gas carrier ratesI cover stocks that I usually own or that I like to research. I also believe in the future of Bitcoin. Follow me for intricate ideas and (hopefully) market-beating returns :) .Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies men ...

Three undervalued marine shipping stocks have surged in the latest value rankings, making them standout opportunities in a rapidly shifting market landscape.3 Undervalued Marine Shipping StocksAccording to the percentile-based valuation analysis, BW LPG Ltd. (NYSE:BWLP), Diana Shipping Inc. (NYSE:DSX), and Matson Inc. (NYSE:MATX) have all joined the top 10th percentile of stocks, propelled by meaningful improvements in their week-on-week value scores.This movement signals new investor interest in these mari ...

Core Insights - The energy sector has several oversold stocks that present potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Nextdecade Corp (NASDAQ:NEXT) has an RSI of 27.7, with a recent stock price of $6.60 after a 38% decline over the past month [8] - BW LPG Ltd (NYSE:BWLP) has an RSI of 29.8, closing at $13.90 after an 11% drop in the last five days [8] - Hess Midstream LP (NYSE:HESM) has an RSI of 27.5, with shares rising to $34.65 despite a 16% decline over the past month [8] Group 2: Company Updates - Nextdecade was downgraded from Buy to Hold by TD Cowen, with a price target reduction from $11 to $8 [8] - BW LPG announced the sale of BW Lord, emphasizing its strategy to modernize its fleet and capitalize on asset values [8] - Hess Midstream upgraded its FY25 gas gathering volumes guidance, focusing on cash flow stability and shareholder returns [8]

Core Insights - The energy sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Nextdecade Corp (NASDAQ:NEXT) has an RSI of 27.7, with a stock price decline of approximately 38% over the past month, closing at $6.60 [8] - BW LPG Ltd (NYSE:BWLP) has an RSI of 29.8, with a stock price drop of around 11% in the last five days, closing at $13.90 [8] - Hess Midstream LP (NYSE:HESM) has an RSI of 27.5, with a stock price decrease of about 16% over the past month, closing at $34.65 [8] Group 2: Company Updates - Nextdecade was downgraded from Buy to Hold by TD Cowen analyst Jason Gabelman, with a reduced price target from $11 to $8 [8] - BW LPG announced the sale of BW Lord, emphasizing its strategy to modernize its fleet and capitalize on strong asset values [8] - Hess Midstream upgraded its FY25 gas gathering volumes guidance, focusing on cash flow stability and shareholder returns [8]

Financial Data and Key Metrics Changes - The company reported a TCE income of $38,800 per available day and $37,300 per calendar day, exceeding guidance of $35,000 per day [3] - Q2 profit was $35 million, translating to an EPS of $0.23, with a declared dividend of $0.22 per share [4][25] - The net profit after tax for Q2 was $43 million, including $16 million from BW LPG India and $6 million from product services [25] - The net leverage ratio decreased to 31% from 33% at the end of the previous year [26] Business Line Data and Key Metrics Changes - Product Services achieved a gross profit of $15 million and a profit after tax of $6 million in Q2 [4] - The time charter portfolio constituted 44% of total shipping exposure, with 32% fixed rate time charter [21] - The average bar value at risk was $6 million, reflecting a balanced trading book [25] Market Data and Key Metrics Changes - The VLGC market is experiencing solid fundamentals with growth in U.S. export volumes supported by high domestic LPG production [7] - U.S. LPG exports to India exceeded 1 million tonnes in 2025, compared to less than 100,000 tonnes for the entire 2024 [11] - The global fleet growth is low, with only 409 ships currently in service and seven more expected to be delivered in 2025 [10] Company Strategy and Development Direction - The company aims to grow its time charter portfolio to around 40% to protect against market volatility [37] - The focus remains on managing drydocking schedules and optimizing fleet utilization to enhance revenue generation [5][21] - The company is monitoring the LPG FFA market, which is currently pricing the balance of 2025 at low $60,000 per day for the Middle East Japan benchmark leg [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of geopolitical events on market volatility and shipping rates [3] - The outlook for U.S. LPG exports is positive, driven by increased production and terminal expansions [18] - The Panama Canal's congestion is a significant factor affecting shipping rates and operational efficiency [14][75] Other Important Information - The company finalized a $380 million term loan and revolving credit facility to finance its fleet [6] - The operating cash breakeven per day is estimated to be $19,100 for the own fleet and $21,700 for the total fleet [27] - The company maintains a strong liquidity position with $287 million in cash and $421 million in undrawn revolving credit facilities [28] Q&A Session Summary Question: Fleet growth and capacity concerns - Management acknowledged the fleet growth but noted that increased LPG volumes from the U.S. and the Middle East would absorb the new capacity [36] Question: Impact of Panama Canal registration restrictions - Management indicated that fewer ships would go through the Panama Canal, potentially leading to more vessels sailing around South Africa [39][46] Question: Purchase options on time charter vessels - Management confirmed there are no immediate purchase options but some are available later in the decade [49] Question: Q3 guidance and drydocking impact - Management explained that the time charter portfolio affects Q3 guidance, and drydocking schedules are also a factor [50][52] Question: Current freight market sustainability - Management noted that while there is downside risk at $70,000 per day, the market seems able to sustain these rates [73][74]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported TCE income of $38,800 per available day and $37,300 per calendar day, exceeding guidance of $35,000 per day [3] - The Q2 profit was $35 million, translating to an EPS of $0.23, with a declared dividend of $0.22 per share [4][26] - The net profit after tax for Q2 was $43 million, including $16 million from BW LPG India and $6 million from product services [26] - The net leverage ratio decreased to 31% from 33% at the end of the previous year [27] Business Line Data and Key Metrics Changes - Product Services achieved a gross profit of $15 million and a profit after tax of $6 million in Q2 [4] - The time charter portfolio constituted 44% of total shipping exposure, with 32% fixed rate time charter [22] - The average bar value at risk for trading was $6 million, indicating a balanced trading book [26] Market Data and Key Metrics Changes - The VLGC market is experiencing solid fundamentals with increased export volumes from the U.S. and slight growth in Middle Eastern volumes [7] - U.S. LPG exports to India exceeded 1 million tonnes in 2025, compared to less than 100,000 tonnes in 2024 [11] - The global fleet growth is low, with only seven new ships expected to be delivered in 2025 [10] Company Strategy and Development Direction - The company is focusing on expanding its time charter portfolio to mitigate risks associated with market volatility [36] - The strategy includes maintaining a strong liquidity position with $287 million in cash and $421 million in undrawn revolving credit facilities [29] - The company anticipates continued growth in U.S. LPG exports supported by terminal expansions through 2028 [19] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of geopolitical events on market volatility and shipping rates [3] - The company expects the demand for shipping capacity to remain strong, driven by inefficiencies in the LPG trade patterns [9] - Future growth in U.S. LPG exports is anticipated due to increased production and terminal expansions [18] Other Important Information - The company reported a busy drydocking schedule with 139 days in Q2 and 143 days expected in Q3 [5] - The operating cash breakeven for the fleet is estimated to be $19,100 per day, a reduction from $22,800 in 2024 [28] Q&A Session Summary Question: Fleet growth and capacity concerns - Management acknowledged the fleet growth but noted that increased LPG volumes from the U.S. and Middle East would absorb the new capacity [35][36] Question: Impact of Panama Canal registration restrictions - Management indicated that fewer ships would go through the Panama Canal, potentially increasing the need for longer routes [40][46] Question: Purchase options on time charter vessels - Management confirmed there are no immediate purchase options but some are available later in the decade [49] Question: Q3 guidance and drydocking impact - Management explained that the time charter portfolio affects Q3 guidance, and drydocking will also impact results [50][52] Question: Current freight market and sustainability of spot rates - Management noted that while there is downside risk at $70,000 per day, the market fundamentals remain solid [75][76]

Q2 2025 Earnings Presentation BW LPG Kristian Sørensen and Samantha Xu 26 August 2025 Disclaimer and forward-looking statements NOT FOR RELEASE, PUBLICATION, DISTRIBUTION OR FORWARDING, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR IN TO ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL. BY ATTENDING THE MEETING WHERE THIS PRESENTATION IS MADE, OR BY READING THE PRESENTATION SLIDES, YOU ACKNOWLEDGE AND AGREE TO COMPLY WITH THE FOLLOWING RESTRICTIONS. This presentation has been produced by BW LPG Lim ...

[Forward-Looking Statements](index=2&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section cautions investors that forward-looking statements are not guarantees of future performance and actual results may differ materially due to various known and unknown risks, uncertainties, and assumptions[4](index=4&type=chunk)[6](index=6&type=chunk)[7](index=7&type=chunk) [Selected Key Financial Information](index=4&type=section&id=SELECTED%20KEY%20FINANCIAL%20INFORMATION) This section presents a summary of key financial highlights, balance sheet positions, and cash flow metrics for Q2 and H1 2025 compared to prior periods Key Financial Highlights (Q2 2025 vs Q2 2024 & H1 2025 vs H1 2024) | Metric | Q2 2025 (US$M) | Q2 2024 (US$M) | Q2 Change (%) | H1 2025 (US$M) | H1 2024 (US$M) | H1 Change (%) | | :-------------------------------- | :------------- | :------------- | :------------ | :------------- | :------------- | :------------ | | TCE income - Shipping | 152.7 | 148.6 | 3 | 311.3 | 335.1 | (7) | | Gross profit – Product Services | 14.8 | 24.5 | (40) | 11.2 | 57.8 | (81) | | Profit after tax | 43.4 | 84.9 | (49) | 110.0 | 234.7 | (53) | | Profit attributable to equity holders | 34.9 | 76.8 | (55) | 81.0 | 218.8 | (63) | | Basic EPS (US$ per share) | 0.23 | 0.58 | (60) | 0.53 | 1.66 | (68) | | Diluted EPS (US$ per share) | 0.23 | 0.58 | (60) | 0.53 | 1.65 | (68) | | Dividend per share (US$) | 0.22 | 0.58 | N.M | 0.50 | 1.58 | N.M | | Metric | 30 Jun 2025 (US$M) | 31 Dec 2024 (US$M) | Change (%) | | :------------------------ | :----------------- | :----------------- | :--------- | | Cash and cash equivalents | 321.0 | 279.7 | 15 | | Total assets | 3,384.8 | 3,320.4 | 2 | | Total liabilities | 1,473.2 | 1,382.9 | 6 | | Total shareholders' equity | 1,911.6 | 1,937.5 | (1) | | Metric | Q2 2025 (US$M) | Q2 2024 (US$M) | Q2 Change (%) | H1 2025 (US$M) | H1 2024 (US$M) | H1 Change (%) | | :-------------------------- | :------------- | :------------- | :------------ | :------------- | :------------- | :------------ | | Net cash from operating activities | 94.7 | 52.8 | 79 | 261.0 | 458.4 | (43) | | Capital expenditure | (81.3) | 0.4 | N.M | (92.6) | 63.3 | N.M | | Adjusted free cash flow | 13.4 | 53.2 | (75) | 168.4 | 521.7 | (68) | | Metric | Q2 2025 (%) | Q2 2024 (%) | Q2 Change (%) | H1 2025 (%) | H1 2024 (%) | H1 Change (%) | | :---------------- | :---------- | :---------- | :------------ | :---------- | :---------- | :------------ | | ROE (annualised) | 9.1 | 20.9 | (56) | 11.4 | 29.4 | (61) | | ROCE (annualised) | 7.7 | 17.2 | (55) | 9.0 | 23.5 | (62) | | Net leverage ratio | 30.7 | 11.9 | 158 | 30.7 | 11.9 | 158 | [Performance Review](index=5&type=section&id=PERFORMANCE%20REVIEW%20%E2%80%93%20Q2%202025%20and%20H1%202025) This section reviews BW LPG's financial and operational performance for Q2 and H1 2025, highlighting profitability, fleet changes, and financing activities [Q2 2025 Performance](index=5&type=section&id=Q2%202025%20Performance) BW LPG experienced a decline in profitability in Q2 2025 compared to Q2 2024, primarily due to a softer LPG spot market and increased operating expenses from an enlarged fleet, despite a slight increase in TCE income from Shipping Q2 2025 Key Performance Indicators | Metric | Q2 2025 (US$M) | Q2 2024 (US$M) | Change (US$M) | Change (%) | | :-------------------------------- | :------------- | :------------- | :------------ | :--------- | | TCE income – Shipping | 152.7 | 148.6 | 4.1 | 3 | | Gross profit – Product Services | 14.8 | 24.5 | (9.7) | (40) | | Profit after tax | 43.4 | 84.9 | (41.5) | (49) | | Profit attributable to equity holders | 34.9 | 76.8 | (41.9) | (55) | | Basic EPS (US$) | 0.23 | 0.58 | (0.35) | (60) | | Dividend per share (US$) | 0.22 | 0.58 | (0.36) | N.M | | LPG spot market (US$/day) | 35,600 | 53,000 | (17,400) | (33) | | Available fleet days | 3,929 | 2,992 | 937 | 31 | | Time charter coverage | 44% | 35% | 9% | | | Time charter rate (US$/day) | 43,000 | 42,800 | 200 | 0.5 | - The Company declared a Q2 2025 cash dividend of **US$0.22 per share**, representing 110% of Shipping NPAT and a 96% payout ratio of total profit attributable to equity holders[26](index=26&type=chunk) - BW Yushi was delivered to BW LPG in June 2025 following the exercise of a purchase option for **US$69.2 million**[26](index=26&type=chunk) - In June 2025, the Group secured a **US$380 million Term Loan and Revolving Credit Facility** to refinance vessels acquired from Avance Gas and terminated a **US$250 million shareholder loan**[26](index=26&type=chunk) [H1 2025 Performance](index=6&type=section&id=H1%202025%20Performance) For the first half of 2025, BW LPG experienced a significant decrease in overall profitability, with TCE income from Shipping and gross profit from Product Services declining substantially due to a softer LPG spot market, despite an enlarged fleet H1 2025 Key Performance Indicators | Metric | H1 2025 (US$M) | H1 2024 (US$M) | Change (US$M) | Change (%) | | :-------------------------------- | :------------- | :------------- | :------------ | :--------- | | TCE income – Shipping | 311.3 | 335.1 | (23.8) | (7) | | Gross profit – Product Services | 11.2 | 57.8 | (46.6) | (81) | | Profit after tax | 110.0 | 234.7 | (124.7) | (53) | | LPG spot market (US$/day) | 37,500 | 61,500 | (24,000) | (39) | | Available fleet days | 7,919 | 6,026 | 1,893 | 31 | | Time charter coverage | 42% | 32% | 10% | | | Time charter rate (US$/day) | 41,900 | 43,600 | (1,700) | (3.9) | - Profit attributable to non-controlling interests increased to **US$29.0 million** (H1 2024: US$15.9 million), primarily driven by BW LPG India's **US$32.1 million gain** from the sale of BW Cedar[31](index=31&type=chunk) [Balance Sheet Overview](index=6&type=section&id=BALANCE%20SHEET) As of June 30, 2025, BW LPG's total assets increased slightly, with a larger fleet of 51 VLGCs. Cash and cash equivalents improved, and the net leverage ratio decreased due to lower lease liabilities and new financing activities - BW LPG controls a fleet of **51 VLGCs** as of June 30, 2025, including seven vessels owned and operated by BW LPG India[32](index=32&type=chunk) Balance Sheet Highlights (30 June 2025 vs 31 December 2024) | Metric | 30 Jun 2025 (US$M) | 31 Dec 2024 (US$M) | Change (US$M) | Change (%) | | :------------------------ | :----------------- | :----------------- | :------------ | :--------- | | Total assets | 3,384.8 | 3,320.4 | 64.4 | 2 | | Vessels (carrying value) | 2,459.5 | 2,381.8 | 77.7 | 3 | | Right-of-use assets (vessels) | 97.8 | 216.3 | (118.5) | (55) | | Cash and cash equivalents | 321.0 | 279.7 | 41.3 | 15 | | Net cash from operating activities (H1) | 261.0 | 458.4 | (197.4) | (43) | | Cash outflow from investing activities (H1) | (83.2) | 48.9 | (132.1) | N.M | | Cash outflow from financing activities (H1) | (122.3) | (436.4) | 314.1 | (72) | | Net leverage ratio | 30.7% | 32.7% | (2.0%) | (6) | - Investing activities resulted in a cash outflow of **US$83.2 million** in H1 2025, primarily due to exercising purchase options for BW Kizoku and BW Yushi, and drydocking activities, partially offset by proceeds from the sale of BW Cedar[33](index=33&type=chunk) - Financing activities had a net cash outflow of **US$122.3 million** in H1 2025, driven by principal and interest repayments, dividend payments, lease repayments, and net repayment of trade finance borrowings, partially offset by net drawdown of bank facilities[34](index=34&type=chunk) [Market Update & Outlook](index=7&type=section&id=MARKET%20UPDATE) This section provides an overview of H1 2025 market conditions, fleet capacity changes, and the outlook for the VLGC freight market [H1 2025 Market Conditions](index=7&type=section&id=H1%202025%20Market%20Conditions) The first half of 2025 saw significant geopolitical events impacting LPG freight rates and trading patterns, with a trade war between the US and China causing initial shifts in export destinations, though overall US LPG exports grew - Spot rates for the Houston to Chiba route declined through winter but strengthened in April before falling sharply due to the US-China trade war[38](index=38&type=chunk)[39](index=39&type=chunk) - US LPG exports carried on VLGCs grew by **7.1%** in H1 2025 compared to H1 2024, with India emerging as a significant new buyer[39](index=39&type=chunk) - Middle East VLGC export volumes increased by **0.6%** in H1 2025, shifting from India to China, which positively impacted ton-mile demand and freight rates[40](index=40&type=chunk) - Panama Canal slot demand was stronger than usual in August, leading to rerouting of several VLGCs via the Cape of Good Hope[42](index=42&type=chunk) [Fleet Capacity](index=7&type=section&id=Fleet%20Capacity) Seven new VLGCs have been delivered in 2025, with an additional seven expected by year-end, contributing to a substantial order book representing 27% of the existing fleet - Seven new VLGCs have been delivered so far in 2025, with seven more expected by year-end[43](index=43&type=chunk) - There are currently **111 VLGCs on order**, representing **27% of the existing fleet**, with new deliveries not expected before late 2027[43](index=43&type=chunk) [VLGC Freight Market Outlook](index=7&type=section&id=VLGC%20Freight%20Market%20Outlook) The VLGC freight market has rebounded, supported by strong fundamentals and trading inefficiencies, with expectations for mid to high single-digit percentage growth in North American and Middle Eastern LPG exports over the next three years - Freight rates have rebounded to levels exceeding **US$70,000 per day**[44](index=44&type=chunk) - North American LPG export growth is projected to be in the **mid to high single-digit percentage range** over the next three years[45](index=45&type=chunk) - Middle Eastern LPG exports are anticipated to grow in the same range in the coming years, driven by increased gas production[45](index=45&type=chunk) - Chinese PDH plant run rates have returned to pre-trade war levels, contributing to a constructive US-Far East arbitrage[46](index=46&type=chunk) - The Forward Freight Agreement (FFA) market for the remainder of 2025 is trading at approximately **US$75,000 per day**[49](index=49&type=chunk) [Management & Auditor Statements](index=8&type=section&id=Statements%20to%20the%20Interim%20Financial%20Information) This section includes management's confirmation regarding the interim financial information and the independent auditors' review report [Management's Confirmation](index=8&type=section&id=Statements%20to%20the%20Interim%20Financial%20Information) Management confirms that the Interim Financial Information for Q2 and H1 2025 has been prepared in accordance with IAS 34, providing a true and fair view of the Group's financial position and performance - Management confirms the Interim Financial Information for Q2 and H1 2025 is prepared in accordance with IAS 34 and gives a true and fair view of the consolidated assets, liabilities, financial position, and income statement[50](index=50&type=chunk) [Independent Auditors' Report](index=9&type=section&id=INDEPENDENT%20AUDITORS'%20REPORT%20ON%20REVIEW%20OF%20CONDENSED%20CONSOLIDATED%20INTERIM%20FINANCIAL%20INFORMATION) KPMG LLP, the independent auditors, concluded that nothing came to their attention suggesting the accompanying condensed consolidated interim financial information as of June 30, 2025, is not prepared, in all material respects, in accordance with IAS 34 - KPMG LLP, the independent auditors, concluded that the condensed consolidated interim financial information as at 30 June 2025 is prepared, in all material respects, in accordance with IAS 34, 'Interim Financial Reporting'[56](index=56&type=chunk) [Condensed Consolidated Financial Statements (Unaudited)](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20COMPREHENSIVE%20INCOME%20(UNAUDITED)) This section presents the unaudited condensed consolidated statements of comprehensive income, balance sheet, changes in equity, and cash flows [Statement of Comprehensive Income](index=10&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20COMPREHENSIVE%20INCOME%20(UNAUDITED)) The Group reported a significant decrease in profit after tax for both Q2 and H1 2025 compared to the prior year, driven by lower operating profit and higher net finance expenses, despite increased revenue from Product Services Condensed Consolidated Statement of Comprehensive Income (Unaudited) | Metric | Q2 2025 (US$ thousand) | Q2 2024 (US$ thousand) | H1 2025 (US$ thousand) | H1 2024 (US$ thousand) | | :-------------------------------- | :---------------- | :---------------- | :---------------- | :---------------- | | Revenue - Shipping | 230,537 | 262,382 | 477,563 | 558,448 | | Revenue - Product Services | 813,364 | 614,107 | 1,428,410 | 1,356,532 | | Operating profit | 58,839 | 89,312 | 137,790 | 247,120 | | Finance (expenses)/income – net | (11,769) | 55 | (23,953) | (2,572) | | Profit after tax | 43,438 | 84,907 | 110,015 | 234,674 | | Profit attributable to equity holders | 34,927 | 76,831 | 81,010 | 218,755 | | Basic earnings per share (US$) | 0.23 | 0.58 | 0.53 | 1.66 | [Balance Sheet](index=11&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEET%20(UNAUDITED)) The Group's total assets increased slightly as of June 30, 2025, primarily due to an increase in vessels and dry docking, while total shareholders' equity saw a minor decrease Condensed Consolidated Balance Sheet (Unaudited) | Metric | 30 June 2025 (US$ thousand) | 31 December 2024 (US$ thousand) | | :-------------------------- | :--------------------- | :------------------------ | | Total non-current assets | 2,592,819 | 2,642,491 | | Vessels and dry docking | 2,459,515 | 2,381,821 | | Right-of-use assets (vessels) | 97,805 | 216,272 | | Total current assets | 792,025 | 677,929 | | Cash and cash equivalents | 320,952 | 279,681 | | Total assets | 3,384,844 | 3,320,420 | | Total shareholders' equity | 1,911,646 | 1,937,494 | | Total non-current liabilities | 851,922 | 772,821 | | Total current liabilities | 621,276 | 610,105 | | Total liabilities | 1,473,198 | 1,382,926 | [Statement of Changes in Equity](index=12&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY%20(UNAUDITED)) The statement of changes in equity for H1 2025 shows a decrease in total equity, primarily due to dividend payments and other comprehensive losses, partially offset by profit after tax Condensed Consolidated Statement of Changes in Equity (Unaudited) - H1 2025 | Metric | 1 Jan 2025 (US$ thousand) | Total comprehensive (loss)/income (US$ thousand) | Total transactions with owners (US$ thousand) | 30 Jun 2025 (US$ thousand) | | :-------------------------- | :------------------- | :----------------------------------------- | :--------------------------------------- | :-------------------- | | Equity holders of the Company | 1,805,031 | 68,360 | (107,299) | 1,766,092 | | Non-controlling interests | 132,463 | 29,241 | (16,150) | 145,554 | | Total equity | 1,937,494 | 97,601 | (123,449) | 1,911,646 | Condensed Consolidated Statement of Changes in Equity (Unaudited) - H1 2024 | Metric | 1 Jan 2024 (US$ thousand) | Total comprehensive (loss)/income (US$ thousand) | Total transactions with owners (US$ thousand) | 31 Dec 2024 (US$ thousand) | | :-------------------------- | :------------------- | :----------------------------------------- | :--------------------------------------- | :-------------------- | | Equity holders of the Company | 1,469,713 | 387,797 | (52,479) | 1,805,031 | | Non-controlling interests | 116,447 | 40,396 | (24,380) | 132,463 | | Total equity | 1,586,160 | 428,193 | (76,859) | 1,937,494 | [Statement of Cash Flows](index=14&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS%20(UNAUDITED)) Net cash from operating activities decreased significantly in H1 2025 compared to H1 2024, while investing activities shifted from a net inflow to a net outflow, reflecting vessel acquisitions and drydocking Condensed Consolidated Statement of Cash Flows (Unaudited) | Metric | Q2 2025 (US$ thousand) | Q2 2024 (US$ thousand) | H1 2025 (US$ thousand) | H1 2024 (US$ thousand) | | :-------------------------------- | :---------------- | :---------------- | :---------------- | :---------------- | | Net cash from operating activities | 94,719 | 52,849 | 260,961 | 458,429 | | Net cash (used in)/from investing activities | (77,113) | 7,076 | (83,237) | 48,853 | | Net cash from/(used in) financing activities | 8,173 | (141,027) | (122,331) | (436,447) | | Net increase/(decrease) in cash and cash equivalents | 25,779 | (81,102) | 55,393 | 70,835 | | Cash and cash equivalents at end of period | 287,293 | 232,872 | 287,293 | 232,872 | [Notes to the Condensed Consolidated Interim Financial Information](index=16&type=section&id=NOTES%20TO%20THE%20CONDENSED%20CONSOLIDATED%20INTERIM%20FINANCIAL%20INFORMATION%20(UNAUDITED)) This section details the general information, material accounting policies, derivative financial instruments, property, plant and equipment, treasury shares, borrowings, related party transactions, financial risk management, segment information, investment in subsidiaries, dividends paid, and subsequent events [General Information](index=16&type=section&id=1.%20General%20information) BW LPG Limited is a public company dual-listed on the Oslo Stock Exchange and New York Stock Exchange, redomiciled to Singapore in July 2024, with principal activities in ship owning, chartering, and LPG trading - BW LPG Limited is a public company dual-listed on the Oslo Stock Exchange and New York Stock Exchange, redomiciled to Singapore on July 1, 2024[75](index=75&type=chunk) - The principal activities of the Group are ship owning, chartering, and LPG trading[76](index=76&type=chunk) [Material Accounting Policies](index=16&type=section&id=2.%20Material%20accounting%20policies) The interim financial information is prepared in accordance with IAS 34, applying the same accounting policies, judgments, estimates, and assumptions as the annual financial statements for the year ended December 31, 2024 - The Interim Financial Information is prepared in accordance with IAS 34, 'Interim Financial Reporting'[77](index=77&type=chunk) - The same accounting policies, judgments, estimates, and assumptions have been applied as those used in the annual financial statements for the year ended 31 December 2024[78](index=78&type=chunk)[80](index=80&type=chunk) [Derivative Financial Instruments](index=17&type=section&id=3.%20Derivative%20financial%20instruments) The Group uses various derivative financial instruments, including interest rate swaps, forward freight agreements, bunker swaps, and commodity contracts, to manage interest rate, freight rate, bunker price, and commodity price risks Derivative Financial Instruments (US$ thousand) | Type | 30 June 2025 Assets | 30 June 2025 Liabilities | 31 December 2024 Assets | 31 December 2024 Liabilities | | :----------------------------------- | :------------------ | :----------------------- | :---------------------- | :--------------------------- | | Interest rate swaps | 4,338 | — | 7,469 | (179) | | Forward freight agreements and related bunker swaps | 1,357 | (536) | 3,993 | — | | Commodity contracts and derivatives | 72,416 | (53,008) | 70,565 | (25,835) | | Forward foreign exchange contracts | 32 | — | 13 | (82) | | **Total** | **78,143** | **(53,544)** | **82,040** | **(26,096)** | - Interest rate swaps hedge interest rate risk on bank borrowings, effectively fixing rates between **1.98% and 3.73% per annum**[84](index=84&type=chunk) - Forward freight agreements and bunker swaps hedge freight rates and bunker price risks, with hedge accounting adopted[85](index=85&type=chunk) - Commodity contracts and derivatives are measured at fair value through profit or loss, without hedge accounting[85](index=85&type=chunk) [Property, Plant and Equipment](index=18&type=section&id=4.%20Property,%20plant%20and%20equipment) The Group's net book value of property, plant and equipment decreased slightly as of June 30, 2025, primarily due to the derecognition of right-of-use assets following the exercise of purchase options for two VLGCs and the sale of BW Cedar Property, Plant and Equipment Net Book Value (US$ thousand) | Category | 30 June 2025 | 31 December 2024 | | :-------------------- | :----------- | :--------------- | | Vessels | 2,416,439 | 2,353,290 | | Dry docking | 43,076 | 28,531 | | Furniture and fixtures | 320 | 354 | | Right-of-use assets (Vessels) | 97,805 | 216,272 | | **Total** | **2,557,640** | **2,598,447** | - Vessels with an aggregate carrying amount of **US$1,765.2 million** (31 December 2024: US$1,091.0 million) are secured on bank borrowings[89](index=89&type=chunk) - In H1 2025, **US$138.5 million** of right-of-use assets (vessels) were derecognized upon delivery of two VLGCs after exercising purchase options[90](index=90&type=chunk) - The sale of BW Cedar in February 2025 generated **US$65.0 million** in proceeds and a net book gain of **US$32.1 million**[90](index=90&type=chunk) [Treasury Shares](index=18&type=section&id=5.%20Treasury%20shares) The Group's treasury shares increased in H1 2025 due to a share buyback program, partially offset by shares transferred for exercised employee share options Treasury Shares Movement | Metric | 30 June 2025 ('000 shares) | 30 June 2024 ('000 shares) | 30 June 2025 (US$ thousand) | 30 June 2024 (US$ thousand) | | :-------------------------- | :------------------------- | :------------------------- | :--------------------- | :--------------------- | | At beginning of the period | 7,743 | 8,926 | 48,387 | 56,438 | | Purchases of treasury shares | 317 | 9 | 2,739 | 100 | | Share options exercised | (121) | (598) | (754) | (3,911) | | At end of the period | 7,939 | 8,247 | 50,372 | 51,536 | - The Company acquired **316,437 ordinary shares** for **US$2.73 million** under a share buyback program in April 2025[91](index=91&type=chunk) - **120,647 shares** were transferred in Q1 2025 due to the exercise of vested options under LTIP 2022 at an average strike price of **US$4.54**[92](index=92&type=chunk) [Borrowings and Lease Liabilities](index=19&type=section&id=6.%20Borrowings%20and%20lease%20liabilities) Total borrowings and lease liabilities increased as of June 30, 2025, primarily due to new bank borrowings and lease financing arrangements, with the Group remaining compliant with its loan covenants Borrowings and Lease Liabilities (US$ thousand) | Category | 30 June 2025 | 31 December 2024 | | :-------------------- | :----------- | :--------------- | | **Borrowings** | | | | Bank borrowings | 773,920 | 655,795 | | Lease financing arrangement | 188,992 | 129,110 | | Shareholder loan | — | 79,501 | | Trust receipts | 59,278 | 73,766 | | Interest payable | 3,372 | 3,836 | | **Total Borrowings** | **1,025,562** | **942,008** | | **Lease liabilities** | | | | Non-current | 40,951 | 60,588 | | Current | 67,299 | 170,700 | | **Total Lease Liabilities** | **108,250** | **231,288** | Movements in Borrowings and Lease Liabilities (H1 2025) | Metric | Borrowings (US$ thousand) | Lease liabilities (US$ thousand) | Total (US$ thousand) | | :-------------------------- | :------------------- | :-------------------------- | :-------------- | | At 1 January 2025 | 942,008 | 231,288 | 1,173,296 | | Drawdown of trust receipts | 1,145,290 | — | 1,145,290 | | Additions | 721,468 | — | 721,468 | | Lease modifications | — | (72,732) | (72,732) | | Principal repayment | (620,988) | (50,306) | (671,294) | | Repayment of trust receipts | (1,159,778) | — | (1,159,778) | | At 30 June 2025 | 1,025,562 | 108,250 | 1,133,812 | - Borrowings amounting to **US$937.0 million** (31 December 2024: US$762.6 million) are secured by mortgages over certain vessels[96](index=96&type=chunk) - The Group complied with its Quarterly Covenants as of June 30, 2025, and expects to continue to comply within 12 months[97](index=97&type=chunk) [Related Party Transactions](index=20&type=section&id=7.%20Related%20party%20transactions) The Group engaged in various transactions with related parties, primarily for corporate service fees, ship management fees, and key management remuneration, which increased in H1 2025 compared to H1 2024 Related Party Transactions (US$ thousand) | Transaction Type | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------------------ | :------ | :------ | :------ | :------ | | Corporate service fees charged by related parties | 2,140 | 1,396 | 4,300 | 3,318 | | Ship management fees charged by related parties | 25 | 201 | 192 | 402 | | Salaries and other short-term employee benefits | 669 | 542 | 2,313 | 1,944 | | Post-employment benefits and share-based payment | 610 | 423 | 995 | 706 | | Directors' fees | 144 | 187 | 296 | 250 | | **Total Key Management Remuneration** | **1,423** | **1,152** | **3,604** | **2,900** | [Financial Risk Management](index=21&type=section&id=8.%20Financial%20risk%20management) The Group's financial risk management policies remain consistent with the previous year, with financial instruments categorized and fair values estimated using a hierarchy of inputs (Level 1, 2, and 3) - No major changes in financial risk management policies or processes since the previous year-end[101](index=101&type=chunk) Aggregate Carrying Amounts of Financial Instruments (US$ thousand) | Category | 30 June 2025 | 31 December 2024 | | :-------------------------------- | :----------- | :--------------- | | Equity financial assets, at FVOCI | 17,240 | 23,132 | | Equity financial assets, at FVPL | 1,597 | 2,769 | | Derivative assets measured at fair value | 78,143 | 82,040 | | Derivative liabilities measured at fair value | (53,544) | (26,096) | | Financial assets at amortised cost | 680,217 | 437,401 | | Financial liabilities at amortised cost | (1,284,407) | (1,097,701) | - Fair values of derivative financial instruments are primarily classified as **Level 2** (exchange-traded futures, interest rate swaps, FFAs, bunker swaps) and **Level 3** (physical buy and sell commodity contracts with unobservable inputs)[104](index=104&type=chunk)[105](index=105&type=chunk) [Segment Information](index=22&type=section&id=9.%20Segment%20information) The Group operates through Shipping and Product Services segments, with segment performance measured by gross profit. Both segments saw a decline in gross profit in H1 2025 compared to H1 2024 - The Group's operating segments are Shipping and Product Services, with performance assessed by gross profit (TCE income for Shipping, Gross profit for Product Services)[110](index=110&type=chunk)[111](index=111&type=chunk) Segment Performance (Q2 2025 vs Q2 2024) | Metric | Shipping Q2 2025 (US$ thousand) | Product Services Q2 2025 (US$ thousand) | Shipping Q2 2024 (US$ thousand) | Product Services Q2 2024 (US$ thousand) | | :-------------------------- | :------------------------- | :-------------------------- | :------------------------- | :-------------------------- | | TCE income - Shipping | 152,656 | — | 148,594 | — | | Gross profit - Product Services | — | 14,825 | — | 24,514 | | Segment results | 152,656 | 14,825 | 148,594 | 24,514 | Segment Performance (H1 2025 vs H1 2024) | Metric | Shipping H1 2025 (US$ thousand) | Product Services H1 2025 (US$ thousand) | Shipping H1 2024 (US$ thousand) | Product Services H1 2024 (US$ thousand) | | :-------------------------- | :------------------------- | :-------------------------- | :------------------------- | :-------------------------- | | TCE income - Shipping | 311,326 | — | 335,124 | — | | Gross profit - Product Services | — | 11,188 | — | 57,761 | | Segment results | 311,326 | 11,188 | 335,124 | 57,761 | Reconciliation of Segment Results to Profit After Tax (US$ thousand) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | Total segment results | 167,481 | 173,108 | 322,514 | 392,885 | | Profit after tax | 43,438 | 84,907 | 110,015 | 234,674 | [Investment in Subsidiaries](index=25&type=section&id=10.%20Investment%20in%20subsidiaries) Summarized financial information for material subsidiaries, BW LPG India and BW Product Services, shows an increase in net assets for BW LPG India and a decrease for BW Product Services in H1 2025 Summarized Balance Sheet for Material Subsidiaries (US$ thousand) | Metric | BW LPG India 30 Jun 2025 | BW LPG India 31 Dec 2024 | BW Product Services 30 Jun 2025 | BW Product Services 31 Dec 2024 | | :-------------------- | :----------------------- | :----------------------- | :------------------------------ | :------------------------------ | | Current assets | 130,407 | 63,581 | 415,977 | 417,096 | | Non-current assets | 253,926 | 278,287 | 80,450 | 92,115 | | Current liabilities | 56,656 | 28,371 | 396,995 | 328,769 | | Non-current liabilities | 38,305 | 76,443 | 40,951 | 50,748 | | Net assets | 289,372 | 237,054 | 58,481 | 129,694 | Summarized Statement of Comprehensive Income for Material Subsidiaries (H1 2025 vs H1 2024) | Metric | BW LPG India H1 2025 (US$ thousand) | BW LPG India H1 2024 (US$ thousand) | BW Product Services H1 2025 (US$ thousand) | BW Product Services H1 2024 (US$ thousand) | | :-------------------------- | :----------------------------- | :----------------------------- | :------------------------------------ | :------------------------------------ | | Net profit after tax | 63,404 | 21,864 | (6,832) | 36,745 | [Dividends Paid](index=26&type=section&id=11.%20Dividends%20paid) An interim dividend of US$42.4 million (US$0.28 per share) was paid in June 2025 for Q1 2025, a decrease from the US$131.8 million (US$1.00 per share) paid in June 2024 for Q1 2024 - An interim dividend of **US$42.4 million** (**US$0.28 per share**) was paid in June 2025 for Q1 2025[127](index=127&type=chunk) - In the corresponding period last year, an interim dividend of **US$131.8 million** (**US$1.00 per share**) was paid in June 2024 for Q1 2024[127](index=127&type=chunk) [Subsequent Event](index=26&type=section&id=12.%20Subsequent%20event) In July 2025, BW LPG India secured a US$215 million Term Loan Facility to refinance existing debt and acquire two modern VLGCs from BW LPG - In July 2025, BW LPG India secured a **US$215 million Term Loan Facility** to refinance existing debt and support the acquisition of two modern VLGCs (BW Chinook and BW Pampero) from BW LPG[128](index=128&type=chunk) [Appendix - Non-IFRS Financial Measures](index=27&type=section&id=APPENDIX%20-%20Non-IFRS%20financial%20measures) This appendix provides definitions and calculations for non-IFRS financial measures, including TCE income per calendar day, TCE income per available day, adjusted free cash flow, and return on capital employed [TCE Income – Shipping per Calendar Day (Total)](index=27&type=section&id=TCE%20income%20%E2%80%93%20Shipping%20per%20calendar%20day%20(total)) This non-IFRS measure, defined as TCE income – Shipping divided by total calendar days, indicates the Company's technical and commercial fleet management efficiency - TCE income – Shipping per calendar day (total) is a non-IFRS measure computed as TCE income – Shipping divided by calendar days (total), indicating fleet management efficiency[135](index=135&type=chunk)[138](index=138&type=chunk) TCE Income – Shipping per Calendar Day (Total) (US$) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | TCE income – Shipping (US$ thousand) | 152,656 | 148,594 | 311,326 | 335,124 | | Calendar days (total) | 4,095 | 3,094 | 8,189 | 6,232 | | TCE income – Shipping per calendar day (total) | 37,280 | 48,030 | 38,020 | 53,770 | [TCE Income – Shipping per Available Day](index=28&type=section&id=TCE%20income%20%E2%80%93%20Shipping%20per%20available%20day) This non-IFRS measure, calculated as TCE income – Shipping divided by available days, assesses the Group's commercial management of its fleet - TCE income – Shipping per available day is a non-IFRS measure computed as TCE income – Shipping divided by available days, indicating commercial fleet management efficiency[142](index=142&type=chunk)[145](index=145&type=chunk) TCE Income – Shipping per Available Day (US$) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | TCE income – Shipping (US$ thousand) | 152,656 | 148,594 | 311,326 | 335,124 | | Available days | 3,929 | 2,992 | 7,919 | 6,026 | | TCE income – Shipping per available days | 38,850 | 49,660 | 39,310 | 55,610 | [Adjusted Free Cash Flow](index=28&type=section&id=Adjusted%20free%20cash%20flow) Adjusted free cash flow is a non-IFRS measure that represents net cash from operating activities minus capital expenditures and asset sales, indicating funds available for dividends, debt repayment, or strategic initiatives - Adjusted free cash flow is a non-IFRS measure computed as net cash from operating activities minus cash outflows for additions in property, plant and equipment and intangible assets, plus proceeds from sale of assets/vessels[148](index=148&type=chunk) - This measure indicates funds available for dividends, debt repayment, or strategic initiatives[149](index=149&type=chunk) Adjusted Free Cash Flow (US$ thousand) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net cash from operating activities | 94,719 | 52,849 | 260,961 | 458,429 | | Additions in property, plant and equipment | (81,308) | 415 | (157,606) | (1,821) | | Proceeds from sale of vessels | — | — | 65,049 | 65,337 | | Adjusted free cash flow | 13,411 | 53,264 | 168,404 | 521,708 | [Return on Capital Employed (ROCE)](index=29&type=section&id=Return%20on%20capital%20employed%20(ROCE)) ROCE is a non-IFRS measure that assesses the Group's financial efficiency and ability to create value, calculated as the ratio of operating profit to average capital employed - ROCE is a non-IFRS measure computed as the ratio of operating profit to capital employed (average of total shareholders' equity, total borrowings, and total lease liabilities)[154](index=154&type=chunk) - ROCE measures the Group's financial efficiency and its ability to create future growth in value[155](index=155&type=chunk) Return on Capital Employed (ROCE) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Operating profit (US$ thousand) | 58,839 | 89,312 | 137,790 | 247,120 | | Capital employed (US$ thousand) | 3,044,383 | 2,080,524 | 3,078,124 | 2,103,933 | | ROCE | 1.9 % | 4.3 % | 4.5 % | 11.7 % | | ROCE (annualised) | 7.7 % | 17.2 % | 9.0 % | 23.5 % |

Group 1 - BW LPG Limited (NYSE: BWLP) has a strong dividend policy that is expected to ensure that the high rates from Very Large Gas Carriers (VLGCs) are passed directly to shareholders, with a current leverage translating to a 75% payout [1] - The second quarter is anticipated to be weak, indicating potential challenges ahead for the company [1] - The analyst has a diverse professional background across various industries, which contributes to a comprehensive understanding of market dynamics [1] Group 2 - The analyst has been actively investing for over a decade, focusing on cyclical industries while maintaining a diversified portfolio that includes bonds, commodities, and forex [1] - There is an emphasis on the potential for significant returns in cyclical sectors during periods of economic recovery and growth [1] - The importance of balancing risk is acknowledged, leading to the incorporation of fixed-income investments [1]