BW LPG Limited

results presentation. Bringing you through the presentation today are CEO Anders Unaheim, Deputy CEO and Head of Strategy Christian Sorensen, CFO Elaine Ong, EVP Commercial Nils Rigaud and EVP Technical and Operations Pontus Berg. We are pleased to answer questions at the end of the presentation. Should you have any, please type them into the chat box in your Zoom 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 being recorded. And I'll turn the call over to our CEO, Anders Unaheim. Thank you, Glenn.

Reflecting the true international nature of shipping, and as at BWLPG, we speak to you from three locations today. Kiristel and myself from Oslo, Elaine and Pontus from Singapore, and Niels from New Delhi, India. Our Indian subsidiary, BWLPG India, is welcoming our stakeholders at LPG Week, an event organized by the Royal LPG Association. Since we cannot bring everyone on board a vessel, we are harnessed down in India with the technology to bring a vessel to you. So if you're in India, come by to see a virtual reality model of the BWC, an Indian-flagged VLGC managed by our partner, Synergy Group. It has been a busy quarter for the team at BDL-PLG. Our acquisition of Vilma Oil's LPG trading operation that was announced last quarter has been approved by the Spanish regulatory authority. We have had solid financial results, and we are also well prepared for the upcoming environmental regulations. Geopolitical and economic uncertainties continue to cloud the outlook of the markets. We're working hard to contribute to energy security by delivering LPG safely and sustainably around the world. With increasing demand for natural gas, we're also seeing a growing awareness of the possibilities for LPG in many ways. In many ways, we're surfing this wave of increased production of oil and gas. More on this later. Some key highlights and figures for the quarter. Our average day rate was $38,200 for available days during the quarter, with a very good 98% commercial utilization. This compares very favorably to our colleagues in the industry, and I think it really underlights the importance of having a critical mass in the fleet. We have ample liquidity of $365 million and a net leverage ratio of 25%. 93% of our floating interest debt is hedged at an average rate of 2.1% before margin for the next half decade. We also sold and delivered one BLGC, the BW Prince, in October, generating $44 million in liquidity with a book gain of $2 million. I think this further confirms that our asset values are real. And last but certainly not least, we received, as I said, the approval from the Spanish authorities for the acquisition of Wilma's LPG trading operation. We are very excited to be welcoming our new colleagues, and I'm happy to see that the team is working hard to complete the transaction by the end of this year. Kirsten will give you more details here later. We continue with our 75% payout policy for dividends, and we return 25 cents per share for the third quarter. This brings our total dividend payments up to $102 million so far in 2022. For our market outlook, we continue to have a positive view of 2023. Niels will elaborate on this, but just to give you a quick primer. We expect strong export growth from both the U.S. and Middle East, a couple of stable retail demand, and recovery in demand from the Far East petrochemical industry. We also expect the implementation of the new regulations, the EEXI and the CII, to reduce the effective supply of the VLGC fleet. And a certain shipping efficiency will certainly continue into next year. So that's the highlights and outlook. But before we go to the next slide, Kristian will now share some additional details on the VLMLPD trading transaction and what we can look forward to in the future.

Great. Thanks, Anders. Yes, as you mentioned, as a subsequent event since the end of Q3, we are pleased to announce that we recently received the Spanish authorities approval for acquisition of Wilma's LPG trading activities. We expect to close this transaction by the end of the year, and following the closing, we will increase our trading activities under the name BWLPG Product Services, with presence in Singapore, Madrid, as well as Oslo. In addition, we plan for up to five of Vilma's VLGCs to enter the BWLPG pool over the coming months, which will have a consolidating effect on the freight market. BWLPG product services will report on their own trading book and will operate on market terms like any other player in the market. And we expect to start reporting on the contribution to BWLPG's EBITDA at the next earnings release. When you ramp up the product services activities, we will add another layer to BWLPG's commercial portfolio, which we are confident will increase our optionality and ability to adjust our exposure in the growing LPG markets. And as mentioned many times before, thanks to its versatility, green profile, and competitive pricing, LPG is increasingly regarded as an alternative to more costly energy sources, and we look forward to participating in this growing market with an even larger footprint than before. Back to you, Anders.