BW LPG First Quarter Profits Down

Operating revenue was US$137.0 million in Q1 2017 (US$162.6 million in Q1 2016). TCE income decreased to US$94.7 million from US$136.8 million, mainly attributable to the decline in LPG spot rates. These factors resulted in a decrease in TCE income of US$32.0 million and US$10.1 million respectively, in the VLGC and LGC segments. Charter hire expenses increased to US$19.1 million in Q1 2017 (US$18.4 million in Q1 2016) due to one additional chartered-in vessel. Other operating expenses increased to US$37.2 million in Q1 2017 (US$30.2 million in Q1 2016) due to the overall larger fleet size.

EBITDA decreased to US$41.9 million in Q1 2017 from US$88.9 million in Q1 2016, mainly due to lower TCE income. Net finance expense increased to US$12.0 million in Q1 2017 (US$5.5 million in Q1 2016), as a result of increased bank borrowings arising from the post-delivery financing of the VLGC newbuilds and take-over of debt relating to the newly acquired Aurora LPG Holding ASA (“Aurora LPG”). The Group reported a profit after tax of US$8.0 million in Q1 2017 (US$59.9 million in Q1 2016).

Cash and cash equivalents amounted to US$47.9 million as at 31 March 2017 (31 December 2016: US$80.6 million). Cash flows from operating activities resulted in a net cash utilisation of US$15.3 million in Q1 2017 (Q1 2016 resulted in a net cash generation of US$101.6 million). Together with proceeds from bank borrowings, cash flows from operating activities were principally utilised for instalment payments for newbuilds, repayment of bank borrowings and interest payments as well as a net repayment of a portion of Aurora LPG’s borrowings. As at 31 March 2017, the Group had no unpaid capital commitments, as the last two owned VLGCs under construction were delivered in January 2017 and two new remaining VLGCs under construction are timechartered-in vessels.