BW LPG
ANNUAL REPORT
2019

SHARE PERFORMANCE

2019 RELATIVE AND ABSOLUTE PERFORMANCE OF SHARES

OVERVIEW

BW LPG share price started 2019 at NOK26.09 (Norwegian Krone) and ended the year at NOK73.85, up significantly by 183.1%. For the second half of the year BW LPG made it to the list of the 25 most traded shares, and effective 23 December, it was included in the OBX Total Return Index. Over the cycle, total shareholder return since our Initial Public Offering (IPO) in November 2013 ended at 167% (measured in NOK).

The strong share price recovery in 2019 was supported by strong US exports and widening geographical price differentials between the US and the Far East. This led to a strong recovery in VLGC freight rates from April 2019 after more than two years of prolonged freight market downturn. With a high percentage of the fleet positioned in the spot market, BW LPG's share price followed the freight market and recovered to above NOK30 in April. In November, BW LPG released its third quarter financial results with the highest net profit in the history of the Company and the share price traded to above NOK80.

Total Shareholder Return - BW LPG Relative to Listed Peers

Note: Share price not adjusted for dividends, buybacks or share issuance. Total shareholder return assumes reinvested dividends. Source: Bloomberg, BW LPG Analysis

DIVIDEND PAYOUT POLICY AT 50% OF PROFITS

In November 2019, the Board amended the dividend policy from a semi-annual to a quarterly payout scheme. The target payout ratio of 50% of net profit after tax (NPAT) remains unchanged.

The policy takes into consideration appropriate limits on leverage, capital expenditure plans, financing requirements, financial flexibility and anticipated cash flows.

  Earnings per share
(US$)
Dividend per share
(US$)
Share Price at
period end (US$)
Annualised
Earnings yield (%)
Annualised
Dividend yield (%)
Accumulated $6.57 $4.46
Q4 2019 $1.11 $0.42 $8.41 53% 20%
Q3 2019 $0.83 $0.33 $5.85 57% 23%
1H 2019 $0.02 $0.10 $4.88 1% 4%
2H 2018 ($0.26) $0.00 $2.98 -17% -
1H 2018 ($0.25) $0.00 $4.00 -13% -
2H 2017 ($0.31) $0.00 $4.71 -13% -
1H 2017 $0.02 $0.00 $3.47 1% -
2H 2016 $0.14 $0.00 $4.20 7% -
1H 2016 $0.04 $0.09 $3.79 2% 5%
2H 2015 $1.41 $0.68 $8.30 34% 16%
1H 2015 $1.03 $0.78 $8.54 24% 18%
2H 2014 $1.11 $1.15 $7.05 31% 33%
1H 2014 $0.76 $0.76 $14.67 10% 10%
2H 2013 $0.92 $0.15 $9.51 19% 3%

Source: BW LPG Analysis
Annualised Earnings Yield before Q3 2019 = (Earnings per share) x 2/Share price at end of the period
Annualised Earnings Yield after Q3 2019 = (Earnings per share) x 4/Share price at end of the period
Annualised Dividend Yield before Q3 2019 = (Dividends per share) x 2/Share price at end of the period
Annualised Dividend Yield after Q3 2019 = (Dividends per share) x 4/Share price at end of the period

ACCUMULATED DIVIDEND YIELD OF 74%

Since listing in 2013, we have paid out dividends of NOK35 (US$4.46) per share with an accumulated dividend yield of 74% on the IPO price of NOK47 per share (US$7.72).

INVESTOR RELATIONS POLICY

We always:

Respect the principle of equal treatment of all market players to ensure fair pricing of BW LPG's shares

Maintain an open and continuous dialogue with existing and potential shareholders, stakeholders and the public

Maintain a high degree of openness and communicate information in compliance with the disclosure requirements of the Oslo Stock Exchange

Communicate about our business performance and developments with all our investors and analysts via:
  1. Annual and quarterly reports and press releases
  2. Annual General Meetings, Investor and Analyst presentations and information sessions
  3. Industry seminars and events where industry participants and investors are represented

Maintain a Primary Insider Register with any changes to primary insiders' shareholdings published on the Oslo Stock Exchange's internet news platform

BW LPG will provide news updates via email within 24 hours of any announcements we make on our website and on Oslo Bors

DIVERSE SHAREHOLDER BASE

BW LPG has issued a total of 141,938,998 shares of which 3,320,921 have been bought back and were held as treasury shares as of 31 December 2019. The year-end total number of outstanding shares stood at 138,618,077 held by 3,105 shareholders.

Top 20 Shareholders Shares % Ownership
BW Group 59,764,242 42.11%
Folketrygdfondet 7,022,818 4.95%
Columbia Management Investment Advisers 6,612,613 4.66%
Dimensional Fund Advisors 3,944,909 2.78%
DNB Asset Management 3,567,529 2.51%
KLP 3,281,621 2.31%
JPMorgan Securities (Custodian) 2,775,360 1.96%
Storebrand Asset Management 1,794,475 1.26%
JO Hambro Capital Management 1,552,087 1.09%
Nordea Asset Management 1,520,064 1.07%
Barclays Capital (Custodian) 1,506,817 1.06%
Vanguard Group 1,427,157 1.01%
KBC Bank 1,234,010 0.87%
GMO 1,030,879 0.73%
Stavern Helse Og Forvaltning AS 1,000,000 0.70%
Skandinaviska Enskilda Banken (Custodian) 1,000,000 0.70%
Amundi Pioneer Asset Management 967,580 0.68%
Delphi Fondene 850,680 0.60%
Mediolanum 813,409 0.57%
CQS Asset Management 810,947 0.57%
Remaining shares 36,140,880 25.47%
Treasury shares 3,320,921 2.34%
Total 141,938,998 100%

Source: RD:IR Shareholder Analysis dated 31 December 2019

BW LPG ANNUAL REPORT 2019

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