BW LPG reported a Q3 2021 net profit after tax of USD 29.3 million, yielding an annualised return on equity of 8.8% with USD 105.6 million of free cash flow. EBITDA was USD 65.5 million for Q3 2021, representing an EBITDA margin of 62.5% for the quarter. Earnings per share was USD 0.20.
Q3 2021 VLGC freight rates were USD 27,800 per calendar day, or USD 30,100 per available day with 98% commercial utilization. Time Charter Equivalent (“TCE”) income increased to USD 104.8 million for Q3 2021, mainly due to increase in LPG spot rates and partially offset by lower fleet utilisation, the latter due to our ongoing LPG retrofitting program. Two more VLGCs were retrofitted in Q3, and we now have ten LPG-powered VLGCs on water to-date, the world’s largest fleet of lower-emissions VLGCs.
During the quarter, an additional three VLGCs were fitted with SMARTship technology, bringing the total to 20 VLGCs. SMARTShip technology enables real-time data monitoring, which, together with active weather routing, has saved approximately USD 1.5 million in reduced fuel consumption year-to-date.
The sale and delivery of BW Confidence (2005-built, Mitsubishi Heavy Industries) for further trading was concluded in July. The sale and delivery of BW Boss (2002-built, Kawasaki Heavy Industries Ltd.) and BW Energy (2002 built, Kawasaki Heavy Industries Ltd.) for further trading were concluded in August. These generated USD 80.7 million in liquidity and a net gain of USD 8.7 million.
BW LPG exercised the purchase option for Yuricosmos (2010-built, Mitsubishi H.I) in August. Renamed BW Niigata, its purchase led to a gain of USD 3 million due to derecognition of right-of-use asset and is expected to generate approximately 8% in ROCE.
The Board has declared a Q3 2021 cash dividend of USD 0.10 per share amounting to USD 13.8 million. The shares will be traded ex-dividend on and from 19 November 2021. The dividend will be payable on 10 December 2021 to shareholders on record as of 22 November 2021.
