BW LPG Ltd

OSE:BWLPG

Earnings Call Transcript 2021-Q4

[Iver Baatvik]

Welcome

to

BW

LPG's Fourth

Quarter

and

Full

Year

2021

Financial

Results

Presentation.

Bringing

you

through the

presentation

today

are

CEO,

Anders

Onarheim;

CFO,

Elaine

Ong;

EVP

Commercial,

Niels

Rigault;

and

EVP

Technical

and

Operations,

Pontus

Berg.

We're

pleased

to

answer

questions

at the

end

of

the

presentation. If

you

have

any,

please

type

them

into

the

chat

box

in

your

tool

panel.

You

may

also

use

the

raise

hand

option.

Before

we

begin,

we

wish

to

highlight

the

legal

disclaimers

shown

in

the

current

slide.

This

presentation,

held

on

Zoom,

is

also

recorded.

I

now

turn

the

call

over

to

BW

LPG's CEO,

Anders

Onarheim.

[Anders Onarheim, Chief Executive Officer, BW LPG Ltd.]

Thank

you, Iver,

and

welcome

to

our

Q4

and

financial

year

2021

results

presentation

for

the

year

ended

31

December

2021.

As

you

heard,

I'm

joined

today

by

Elaine,

Niels

and

Pontus. 2021

was

certainly

an

eventful

year.

VLGC

rates

ranged

from

$100,000

per

day,

down

to

$6,000

per

day and

we

also

experienced

new

varieties

of

COVID

coming

and

this,

of

course,

leading

to

continued

difficulties

on

the

crewing

side.

And

just as

we were

starting

to

see

light

at

the

end

of

the

tunnel

and

a

more

normalized

world,

the

situation

in

the

Ukraine

has

created

significant

geopolitical

turmoil.

While

it is

still too

early

to

conclude

what

the

effects

will

be

for

VLGC

shipping,

in

certainly,

it

has

certainly

dramatically

increased. Still

my

colleagues and

I

believe

that

there

are

several

reasons

to

be

optimistic

for

our

shipping

business

over

the

medium

and

long

term.

LPG

is

one of

the

cleanest

and

most

versatile

energy

resources

currently

available, and

we

see

continuous

strong

demand

both

in

the

Far

East,

India

and

Europe. Healthy

production

is

also

expected

from

both

in

the

US

and

Middle

East,

so

need

for

shipping

will

prevail.

Of

course, one

of the

less negative

impacts

of

COVID

is

that

the

shipping

industry

as

a

whole

has

accelerated

change

and

adopted

a

number

of

new

technologies.

We're

also

quite

proud

of

the

steps

BW

LPG has

taken

as

we

move

closer

to

a

zero

carbon

future.

Please

go

to

slide

4. We published

our

2021 annual

report

and

sustainability

report

earlier

today

with

the

theme

Ship

Smarter

with

LPG. Behind

the

great presentation

of

data,

for

hours

of

hard

work

by

colleagues,

reports

are

available for

download

on

our

website,

and

we

hope

investors

and

analysts

will

find

them insightful.

When reading

the

report,

you'll

find

that

we

can

ship

smarter

because

we

have

2,000

talented

and

dedicated

professionals. We

can

ship smarter

because

we

actively

use

new

technology

to

reduce

our

carbon

footprint, make

our

operations

more

efficient.

And

we

can

ship

smarter

because

we

remain

agile

and

make

active

decisions

to

optimize

our

assets

through

the

cycles.

And

with

these initiatives

and

more,

we

stand,

of

course,

in

a

challenging

year.

Let

me

next give

you

some

key

highlights. In

the

fourth quarter, we

reported

$31,000

per

day

for

our

VLGC

fleet

per

calendar

day

with

a

4%

technical

offhire.

Commercially,

we

achieved

$32,400

per

available

day

with

a

consistently

high

commercial

utilization

of

97%.

And

this

performance translated

to

a

net

profit

after

tax

of

$63

million

or

an

earnings

per

share

of

$0.45.

And

for

the

fourth

quarter,

we'll

be

distributing

a

dividend

of $0.18

per

share,

amount

to

a

total

of

$25

million.

Moving

on

to

the

highlights for

the

quarter,

we

now

report

the

highest

available

liquidity

to-date

at

$453 million

and

a

further

decline

in

net

leverage

ratio

to

35%.

We

have

retrofitted

a

further

two

vessels,

with

LPG

dual-fuel

propulsion,

which

brings

the

total

up

to 12

vessels

on

the

water,

with

the

combined

runtime

of 16,000

hours

on

LPG. That's

a

great experience

for

us

to

have.

We

conclude the

sale

and

delivery

of

BW

Sakura

in

December

and

BW Niigata

in

February.

The

sales

generated

$72

million

in

liquidity

and

a

net

book

gained

of

$40 million.

This

is

again

in

line

with

our

focus

strategy.

Our

existing

towards

the

$221

million

facility

was

subsidized,

with

the

$40

million

sustainability

linked

loan

to

finance,

to

retrofit

or

for

dual-fuel

LPG

propulsion

vessels.

In

addition, $70

million

under

this

term

loan

facility

was

converted

to

revolving

credit

facility. After

the

end of

the

fourth quarter,

Maas

Capital

subscribed

for $50

million

of

new

shares

in

BW

India. We're

very

excited

to

welcome

Maas

as

a

shareholder

and

we

look

forward

to

working

with

them

going

forward. BW

LPG

now

holds

approximately

67%

of

the

equity

in

BW

India.

Switching

gears

to

our

market

outlook.

It's

difficult

to

not

recognize

that

the

situation

in

the

Ukraine

continue

to

have

a

dramatic

impact

on

energy

markets,

energy

flows

and

shipping.

For

the

moment

this

geopolitical

uncertainty

greatly

obscures

any

near-term

market

outlook

as

unforeseen

events,

such

as

shocks

to

the

bunker

price,

rapid

changes

in

trading

patterns,

or

unexpected

LPG

inventory

management

can

trigger

intense

volatility

in

spot

rates.

For

2023 and

onwards

though,

we

find

the

outlook

to

be

quite

healthy,

despite

uncertainties

both

from

a heavy

newbuilding order book

and

the

implementation

of

IMO

EEXI

regulations.

Niels

will

talk

more

about

this

later.

Now

turning

quickly to

page

5

–

6, I'm sorry.

the

VLGC

market

from

there

somewhat

due to

the

fourth

quarter

compared

to

the

preceding

quarter,

we

generated annualized

return

on

equity

of 19%,

with

an

annualized

return

on

capital

employed

of 13%.

For

the

full

year

of

2021,

we delivered

return on

equity

of

14%,

and

a

10%

return

on

capital

employed.

Our

operational

and

free

cash

flows

were

$20

million

and $47

million,

respectively,

for

the

quarter,

maintaining

our

flexibility

and

enabling

us

to

continue

to

return

cash

to

our

shareholders. And

finally,

as

previously

highlighted,

our

net

leverage

ratio

continued

down

at

36%

at

the

end

of

the third

quarter

to

now

35%

in

the

end

of

Q4.

Next

up, Niels

will

now

take

you

through

the

market

review

and

the

commercial

update.

[Niels Rigault, Executive Vice President Commercial, BW LPG Ltd.]

Thank

you,

Anders.

Good

morning

and afternoon

to

all

of you.

On

slide

8,

we

share

our

view

of

the

market,

as

Anders

mentioned,

the

outlook

for

the

near-term

spot

rate

is

highly

uncertain.

This

uncertainty is

already

visible

in

the

current

spot

market.

As

the

market

participants

are

sitting

on

the

fence

and

awaiting

more

clarity

before

making

any

big

decisions.

Seasonally

speaking, WTI

rates

are already

under pressure

before

the

inventory

buildup

season

and

the

strong

increase

in

crude

prices

affecting

the

bunker

costs.

It

is

pushing our

earnings

toward

OPEC

level

and

the

current

spot

market

is

around

$11,000

per

day.

At

the

beginning of

the year,

the

compliant

fuel

prices

were

at

$600.

Today,

we're

paying

around

$800.

This

gives

about

$8,000

per

day

increased

bunker

costs. We also

had

issue

that

the services can use,

had

the

benefit

of

$230

per

metric

ton.

Therefore,

they

have

an

$8,000

per

day

high

earnings

potential. LPG

burning CapEx are

also

benefiting

from

a

cheaper

fuel

compared

to

compliant

fuel.

But

the

gain

today

is

only

around

$1,000

per

day.

So

far

in

Q1,

we have fixed

approximately

79%

of

our

available

fleet

base

at

an

average

rate

of

$42,000

per

day

on

a

discharge-to-discharge

basis.

For

the medium-term,

our

view

is

that

we

are

facing

healthy

fundamentals.

Yes,

the

current

order

book

insignificant,

but

it's also

likely

that

the

high

oil

prices

would

stimulate

increased

oil

and

gas

production. In

the

years

ahead,

we're

also

seeing

growth

in

demand

for

LPG,

especially

from

retail

and

petrochemical

sector.

Turning

to

slide

9. The

seaborne LPG

trade

in 2021

saw

several

encouraging

developments.

First,

North

America's

seaborne

LPG

export

continue

to

grow.

They

increased

by

13%

for

the

whole

year,

helped

by

optimization

of

natural

gas

production

and

reduction

in

drilled,

but

uncompleted wells.

Middle

East LPG

exports grew

marginally

in

2021

to

36

million

ton.

This included

significant

export

recovery

from

Iran,

which

grew

53%

to

5.3

million

tons.

On

the import

side,

the

most

robust

growth

came

in

China

and

India.

Chinese

imports

grew

by

23%.

This

was supported

by

new PDH

plants and

the

start-up

of

LPG-fed

steam

crackers.

By

2023,

eight

PDH

plants

are

scheduled

to

come

on

stream

in

China.

India

imports growth

of

11%

was

encouraged

by

growing

retail

demand

and

new

investments

in

infrastructure,

allowing

for

more

volumes

to

be

received.

On

slide

10,

you

see EIA

short-term

energy

output

released

in

February

this

year.

The

agency expects

that

US

LPG

exports

will

grow

by

4%

in 2022,

driven,

for

the

most

part,

by

higher

US

production,

but

also

marginally

lower

domestic

consumption

compared

to

last

year.

For

2023, the

agency

expects

the

trend

to

continue

with

even

higher

production

and

lower

domestic

demand,

resulting

in

the

net

export

growth

forecast

at

11.2%.

As

shown

on

slide

11,

the

current

VLGC order

book

holds

70

vessels according

to

22%

of the

existing

fleet.

This

order book

is

down

slightly

from

our

previous

quarterly

update

as

the

number

of

delivered

vessel

is

higher

than

the

number

of ships being put

on

order. We

still

expect 42

VLGCs to

be delivered

in

2023.

For 2024, however,

we

expect

9

VLGC

deliveries,

which

is

one

more

than

our

last

quarterly

update.

We

have

no

newbuilding

orders,

but

we

will

have

the

largest

fleet

of

LPG

propulsion

vessels

ready

by

the

end

of

Q1

this

year.

We

believe this

will

give

us

a

strong

position

in

2023

when

the

new

regulations

occur.

Please

skip ahead

to

slide

number

15. So, I'm going to talk about our fleet composition. So, our

time

charter-out

revenue

for

2022

now

stands

at

$99

million

with

the

average TC-out

rate

of

$32,900

per

day.

Our

TCE

cost

income

remained

low

at

$2,600

per

day.

We

have to

28 VLGCs

serving

the

spot

market,

which

in

our

view,

is

a

comfortable

position

as

we

need

a

critical

mass

to

optimize

the

sport

earnings

and

help

our

clients

with

today's

inefficiencies.

That's

it

for me.

Next, Pontus Berg.

[Pontus Berg]

Thank

you, Niels.

Turning

to

slide 16

please.

Good day,

everybody.

So,

from

a

technical and

operational

perspective,

it

has

been

another

good

year

for

supporting

the

business

with

SMARTShipping.

We

continue

our

investment

in

technology,

remaining

focused

on

digitalizing

our

vessels.

On

a

harnessing

data

and

automating

workflows,

while

augmenting

these

new

tools

with

solid

operational

experience

and

this

approach

is

now

bearing

fruit.

We

have

invested

over

$92

million

in

fleet

upgrades

during

2021.

This

is to

maximize

the

value

of our

assets

and

enables

smarter

operations.

This includes

retrofitting

and other eight

vessels

with

LPG

dual-fuel

and

another

eight

vessels

with

SMARTShip

technology

amongst

other

initiatives.

With

LPG propulsion

technology onboard now 12

VLGCs,

we

can

power

these

ships

with

cleaner

burning

LPG. Available

data

points

to

a

promising

potential

of

15%

to

20%

reduction

in

CO2

emissions.

As

mentioned

by

Anders,

with

over 16,000

hours

in

operation

and

counting,

we

have

proved

that

retrofitting

vessels

with

this

pioneering

technology

works,

and

we

encourage

our

fellow

LPG

ship

owners

to

do

the

same

instead

of

ordering

new vessels.

We

complete the

use

of

new

technology

with

deep

operational

experience

and

innovative

thinking.

In

total,

we

saved

about

$10 million

and

reduced

greenhouse

gas

emissions

fleet wide by

about

12%

last

year.

For

example,

with our

SMARTShip

an

active

voyage

management,

we

reduced

fuel

consumption

by

about

2,700

metric

tons

deep

wide.

This

translates

to

about

1.5

million

in

savings

and

a

reduction

of 8,000

metric

tons

in

CO2

emissions.

Our team

closely

manages

New

Panama

Canal

transit,

secures

Suez

Canal

rebates,

and

efficiently

handled

over

1,100

port

coasts

in

the

year.

Our

innovative

use

of

established

ship

to

ship

transfer

practice

for

LPG

bunker

and coolants

pre

and

post

drydocking

has

reduced

turnaround

time,

increased

commercial

availability,

minimized

emission

from

gas stream

and

allowed

us

very strict

control

over

product

origin

compliance,

which

is

increasingly

important

in

these

days.

We

continue

to

invest

in

R&D

and

position

the

company

well

for

new

technologies

that

are

on

the

horizon.

Plans

for

our

next-generation

VLGC

is

in

full

swing

and

we

appreciate

the

support

and

collaboration

with

market-leading

partners

and

top-tier

suppliers.

All

this

will not

be

possible

without

good

people.

COVID-19

continue

to

loom

large

through

the

year.

The

pandemic

has

driven

up

operation

costs

and

it

has

been

hard

on

our

seafaring

colleagues

where

rotations

on

and

off

ships

have

been

affected.

The

good

news for

us

is

that

we

have

managed

to

vaccinate

about

99%

of

our

crew

on

board,

and

only

a

small

number

have

been

on

board

significantly

beyond

their

designated

signoff

date.

We

do

thank

the

relevant

port

authorities

and

shore

officers

who

have

provided

support.

Vaccinating

our

crew

go

a

long

way

to

protect

the

livelihoods

of

our

seafarers

and

our

continued

ability

to

deliver

energy

to

our

markets.

Together

with

stringent

pre-boarding

and

onboard

management

procedures,

we

have

managed

to

keep

cases

of

COVID

on

board

very

low.

Our

Zero Harm

approach

guides

how

we

protect

the

health

and

safety

of

our

crew.

Safety

is

our

top priority,

of

course

and

a

non-negotiable

expectation

for

all.

Where

we

saw

trends

in

reported

incidents,

we

ran

specific

initiatives

to

address

that.

Our

2021 OpEx

comes

in

at

$8,000

a

day,

of

which

nearly

5%

or

$380

went

towards

COVID-19

management

measures.

We

continue

to

maintain

market-leading

OpEx

trends

for

our

fleet.

We

see

this

as

an

important

priority and

sound

business practice.

Of course,

we

are

monitoring the

situation

and

assessing

our

crew

members

from

both

Ukraine

and

Russia

in

recent

difficult,

another

turbulent

events.

We

and

our

local

mining

offices

have

been

and are

contact

with

both

the

crew

on

board

as

well

as

at

home.

With

that,

let me

now

turn

over

to

our

CFO,

Elaine

Ong,

who

will

walk

you

through

the

projected

fleet

CapEx

and

our

financial

position.

[Elaine Ong, Chief Financial Officer, BW LPG Ltd.]

Thank

you,

Pontus,

and

a very

good

day

to

all

of

you.

Let

me

begin

with

a

few

comments

on

the

capital

spend

table

here

on

slide

16.

In

2021,

we

spent

a

total

of

$92

million

on

fleet

upgrades.

Of

this,

$85

million

was

on

retrofitting

old

vessels

with

dual-fuel

propulsion

engines

and

approximately

$7

million

on

SMARTShip

technology

and

ballast

water

treatment

systems.

To-date,

we

have

12

LPG

powered

VLGCs on

the

water

with

3

more

on

the

way.

19

VLGCs

are

equipped

with

SMARTShip

technology.

We

plan

to

spend

a

further

$31

million

on

fleet

upgrades

this

year

both

of

which

relate

to

the

retrofitting

of

our

remaining

three

vessels.

The

financing

for

these

vessels

is

already

in

place

with

the

upsizing

of

our

existing

$221

million

facility,

which

Anders

mentioned

earlier.

These

last

three

conversions

will

mark

the

completion

of

a

multiyear

$130

million

investment

to

retrofit 15

of

our

vessels

with

LPG

dual-fuel

propulsion

technology.

These

retrofitted

vessels

are

an

important

and

tangible

step

forward

in

our

journey

towards

a

zero

carbon

future.

Let

me now

provide

some

color

on

our

reported

financial

results.

Net

profit

for

the

quarter

was

$63

million,

bringing

our

full

year

NPAT

to

$186

million.

Included in

our

fourth

quarter

NPAT

of

$63

million

are

two

non-recurring

items

that

I

would

like

to

highlight.

The

first

stems

from

a

$2.7

million

gain

realized

from

our

disposal

of

the

BW

Sakura

for

further

trading.

The

second

relates

to

a

$32

million

write-back

of

vessel

impairment

previously

taken

on

our

vessels

back

in

2016. Over

the

past

years,

we

have

seen

broker-based

valuations

strengthen,

hence

we

are

now

able

to

recover

most

of

the

vessels

impairments

previously

taken.

If

we

exclude

the

non-recurring

items,

our

net

profit

for

the

fourth

quarter

will

be

$28

million.

Let me

comment

briefly

on

our

EBITDA.

EBITDA

for

the

fourth

quarter

came

in

at

$79

million,

bringing

our

full

year

EBITDA

to

$312

million.

This

translates

into

a

strong

EBITDA

margin

of

68%

for

the

quarter

and

67%

for

the

full year

2021.

Our

fourth

quarter

EBITDA

of

$79

million

stems

from

$117

million

of

TCE

income,

net

of

a

$5

million

impact

related

to

the

effects

of IFRS

15.

This

was

largely

driven

by

higher

fee

utilization

for

the

quarter

at

96%

with

fewer

vessels

at

the

yard

undergoing

retrofitting

despite

the

lower

VLGC

spot

rates

earned

during

the

quarter.

This

is partially

offset

by

higher

than

expected

vessel

operating

expenses

during

the

quarter

at

$7,700

per

day,

reflecting

increased

recurring

costs

associated

with

the

lingering

pandemic.

Let

me now

highlight

a

few

things

on

our

balance

sheet. At

the

end

of

December,

our

available

liquidity

at

$453

million

was

at

the

highest

level

since

our

listing

back

in

2013

and

our

net

leverage

ratio

at

35%

is

at

the

lowest

level

in

seven

years.

In

2021,

we

generated

$307

million

in

operating

cash

flows

and

$330

million

in

free

cash

flows.

Our

strong

cash

flow

has

allowed

us

to

aggressively

pay

down

our

debt

while

continuing

to

return

cash

to

our

shareholders. Including

the

$0.18

per

share

of

dividends

just

declared

for

the

fourth

quarter,

we

will

have

paid

a

total

of

$77

million

in

dividends

for

2021,

equivalent

to

$0.56

per

share.

This

translates

to

a

payout

ratio

of

51%

of

NPAT,

excluding

the

non-cash

write

back

of

impairments.

Looking

forward

into

2022, we

expect

our

operating

cash

breakeven

for

our

total

fleet,

including

our

charter-in

vessels

to

be

at

$21,000

per

day

this

year.

A

quick

update

on

our

financing

structure

and

debt

repayment

profile.

Our

net

debt

position

at

the

end

of

the

quarter

was

$745

million

and

we

will

have

no

major

balloon

payments

during

the

next

five

years.

In

December,

we

upsized

our

$221

million

facility

with

a

$40 million

sustainability-linked

loan

to

finance

the

retrofitting

of

all

dual-fuel

LPG

propulsion

engines.

This

is a

last –

sorry,

this

is

our

first

sustainability-linked

facility

aligned

with

Poseidon

Principles

and

demonstrates

BW

LPG's

continued

access

to

highly

competitive

funding

and

commitment

to

decarbonize

shipping.

At

the

same

time,

we

also

converted

$70 million

of

this

same

term

loan

facility

to

a

revolving

credit

facility.

This

gives

us

financial

flexibility

in

allowing

us

to

accelerate

the

repayment

of

our

debt

with

a

strong

free

cash

flows

while

still

maintaining

a

liquidity

line

should

we

need

to

draw

on

it

in

the

future.

On

this

note,

I would

like

to

open

up

the

call

for

questions.

[Iver Baatvik]

We

will

begin our

Q&A

session

now.

[Operator Instructions]



Okay.

So,

we

can take

some

questions

from

the

participants

that

have raised their

hands.

Who's

that?

[Elaine Ong, Chief Financial Officer, BW LPG Ltd.]

Please

go

ahead,

[ph]



Brian

(00:24:58).

Hi. Thanks

for

taking

my

question.

Just

curious

if

you

can

give

a

quick

comment

about

just

the

global

energy

crunch

in

Europe

right

now

and

how

potentially

LPG

could

see

a

pull

for

US

or

Middle

Eastern

LPG

head

towards

–

on

the

Europe

and

you

could

see

ultimately

an

increase

in

demand

and

tightening

of

LPG

shipping

supply?

Thanks.

[Anders Onarheim, Chief Executive Officer, BW LPG Ltd.]

I

will

start and

I'll

let

Niels

answer

that

question

also.

Clearly,

as

we

mentioned,

we

do

expect

to

see

some

of

the

change

trading

patterns,

given

all

the

activity

we're

seeing.

And

so,

I

think

we

can

expect

that

Europe

will

be

perhaps more

of

a

destination

for

the

LPG

than

it

has

been

previously.

But

Niels,

why

don't you

give

a

little

bit

more

flavor

on

that?

[Niels Rigault, Executive Vice President Commercial, BW LPG Ltd.]

Yes.

Again,

I mean,

the Russian

LPG

export

to

Europe

is

not

very

big.

I

mean,

I

think

the

seaborne

trade

is

mainly

done

on

smaller

ship.

It's

around

50,000

to

70,000 tons

per

month.

So,

importantly

LPG

export

out

of

Russia

is

300,000

tons

per

month.

So,

obviously,

if

Europe

needs

to

substitute

that

LPG,

it

should

come

from north

of –

from

Norway

or

from

the

Mediterranean

or

the

US.

And

in

VLGC

terms,

it's

around

seven

VLGCs.

So,

that

will

be –

if

it's

coming

from

the

US,

that

will

be

approximately

50%

increase

of

LPG

coming

from

the

US

to

Europe.

Great. Thanks.

And

I

guess

just

as

a

quick

follow

up, do

you

see

the

potential

for

LPG

to

help

replace

some

old

LNG

flows

given

that

US

LNG

and

global

LNG capacity

might

be

nearing

a full

utilization

here

in

the

next 12

months?

[Anders Onarheim, Chief Executive Officer, BW LPG Ltd.]

Yeah.

I

think

that's

clearly

something

that

I

think

is

possible.

Being

LPG

shippers,

we

actually

hope

so

too.

We

think

LPG

is

a

great

product.

And

I

think

this

will

definitely

at

least

be

put

in

the

agenda.

So,

we're

starting

to

see

what

the

capacity

is.

And

I

think

we

will

certainly

be

watching

very

closely

to

see

if

there's

an

opportunity

for

us

to

contribute

to that

somewhat.

Great. Thank

you

for taking

my

questions.

[Iver Baatvik]

Okay.

Thank

you very

much.

Then,

we

have

one

more

participant

raising

their

hand.

We'll

take

the

question

from

[indiscernible]

(00:27:42),

please.

Yeah.

Good

morning.

[indiscernible]



(00:27:46).

Could

you

provide

some

further

commentary

on

investments

you're

making

on

Next-Gen

VLGCs?

When

do

you

believe

these

new

technology

vessels

will

be

available

for

ordering?

[Anders Onarheim, Chief Executive Officer, BW LPG Ltd.]

Well,

that's

a

good

question,

a

difficult

question

to

answer.

We

are

spending

time

and

resources

to

understand

what

technology

is

available.

And

as

soon

as

we

have

decided

on

one

of those,

we

will let

you

know.

I

still

think

that

that

is

still

some

time

out,

because

I

think

there

is

still

–

we

see

many,

many,

many

talk

about

new

opportunities

and

we

talk

– we

have

many

looking

into

ammonia

fuel.

But

when

we

look

at

it,

it's

still

–

it

does

not

have a

material

impact

so

far.

We

haven't

seen

any

real

sort

of

business

justifying

purposes.

But

we

will

– of

course,

we

will

continue

to

look

for

opportunities

and

we

are

working

internally

too

with

several

tracks,

but

it's

too

early

for

us

to

talk

about

it.

And

I

think,

still,

we

are

looking

at

least

a

few

years

out.

All

right.

That's

helpful.

And

regarding

BW

LPG

India,

after

the

entrance

of

Maas

Capital,

what

will

the

main

priorities

be?

In

past

conference

calls,

you

had

mentioned

you

would

look

into

infrastructure

projects

in

the

country.

It

doesn't

remain

a

priority.

How

should

we

think

about

next

steps?

[Anders Onarheim, Chief Executive Officer, BW LPG Ltd.]

I

think

you're

right

we

will

continue

to

look

for

those

opportunities.

Right

now,

we're

also

making

sure,

of

course,

that

we

integrate

Maas

Capital

in

for

corporate

governance

and

get

the

team

on

board,

so

we

can

work

well

together.

But

that's

still

in

the

agenda

for

us

to

look

for

opportunities

to

take

a

greater

share

of

the

value

chain

in

India.

That's an

important

market

for

us.

I

think

we

said

previously

also we

will

look

for

similar

opportunities

in other

places,

if

it

makes

sense,

again,

with

a

strong

balance

sheet.

And we

see

that

our

–

also with

our

small

sort

of

product

probably

trading,

we

are

seeing

good

opportunities

to

find

ways

to

increase

our

both

footprint

in

the

market

and

our

profitability.

Sounds

good.

That's

all

for

me.

Thank

you

for

taking

my

questions

and

congratulations

for

this

quarter.

[Anders Onarheim, Chief Executive Officer, BW LPG Ltd.]

Thank

you.

[Iver Baatvik]

Okay.

Thank you

very

much.

We'll

take

one

more

question

from

participants

raising

their

hand.

We'll

go

to

[ph]



Amir

Badra

(00:30:21). Please

unmute

yourself

and

ask

your

question.

Yeah. Hi.

Good

evening

to

the

panelists.

My

one

question

is

specifically

on

the

technical

point

of

view

directed

towards

Mr.

Pontus.

So,

with

respect

to

the

methane-slip characteristic

that

we

have,

so

is

there

any

further

development

taking

place

in

order

to

minimize

it

more

or

are

there

any

talks

of

ME-GA

engines

coming

into

the

picture?

Because

ME-GA,

as

we

know,

is

having

more

methane-slip

when

we

compare

to

the

ME-GIs.

So,

anything

else

has

been

done

on

that

aspect?

That

is

my

question.

[Anders Onarheim, Chief Executive Officer, BW LPG Ltd.]

Hi.

From

our

point

of

view,

we

have

not

looked

at

any

ME-GI

engines, and

I

don't

see

them

coming

into

play

in

the LPG

market

either.

As

you

know,

the LGIP,

the

L

stands

for

liquid,

so

we

have

the

liquid

injection to

our

cylinders

compared

to

the

gases

in

the

ME-GIs.

So,

the

short

answer is,

no,

I

don't

believe

so

and

I

haven't

seen

or

even

heard of

any

development

for

such

thing

and –

yeah,

I

think

that's

the

short

answer.

[Pontus Berg]

And

of

course,

we don't

have

any

methane-slip

on

our

engines.

Right,

right.

So

basically,

you

are

only

focused

on

the

LGIM

and

the

LGIP

models,

right,

what

I

understand,

correct?

[Pontus Berg]

Yeah.

That

is

correct.

So,

right,

we

are

working

very

hard

on

the

LGIP

engines.

And

both

gaining

experience

and

optimizing

them.

And

then

we

are

looking

into

little

bit

together

with

the

provider as

the builder. What

comes

after the

LGIP?

Will

there

be LGIP

whatever

it comes?

But

as

Anders

mentioned,

it's

a

little

bit

too early

to

speculate and

talk

about

that

in

public

just

yet.

Okay.

Okay.

Okay.

Anyways,

thank

you.

Thanks

for

the

reply.

[Pontus Berg]

Thank

you.

[Anders Onarheim, Chief Executive Officer, BW LPG Ltd.]

Okay.

It

looks

like

there's

no

more

questions.

So,

if

there's no

more

question,

then

we

have

come

to

the

end

of

today's

presentation.

Thank

you

for

attending

BW

LPG's

fourth

quarter

and

full year

2021

financial

results

presentation.

More

information

is

available

on

the

BW

LPG

homepage. Have

a

good

day

and

a

good

night.