Presentation

BW LPG is the largest listed VLGC owner, transporting liquefied petroleum gasses. The company was listed in 2013, while its history is tracing back to 1935 when Mr Sigval Bergesen established a tanker company. The Sohmen-Pao family gained control of the company in 2003 after acquiring a majority stake (BW Group currently owns 42%). The company currently has a market capitalization of USD 630m and net debt of USD 1.0bn as of Q2’20.

BW LPG operates a fleet of 47 VLGCs (nine on TC-in, one on bareboat, two owned through 50/50 JVs and 35 wholly owned), making it the largest fleet of the listed owners. The majority of the fleet has been built at Daewoo and Hyundai H.I. in South Korean, and the fleet is on average ~9 years old. While mostly geared towards the spot market, the company has added some time-charter coverage over the past few months, and we expect healthy profitability in the coming quarters.

BW LPG has on our numbers generated 14% RoE p.a since its IPO in 2013, and been able to grow the fleet accretively through downturns. With a unique access to attractive financing the company remains well positioned to take advantage of any further growth/renewal opportunities. We estimate a NAV of around NOK 75 as of YE'20, which implies a significant discount at current pricing.