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]