Hello, everyone. Good morning, good afternoon, good evening. A warm welcome to BW LPG's Q1 2025 Earnings Presentation. My name is Aline Anliker, and I'm the Head of Corporate Communications at BW LPG. Today's presentation will be given by our CEO, Kristian Sorensen; and our CFO, Samantha Xu. After the presentation, we will have a Q&A session. [Operator Instructions] Before we begin, I would like to highlight the legal disclaimers displayed on the current slide. Please also note that today's call is being recorded. And without further ado, I would now like to hand over to our CEO, Kristian.

Thank you, Aline and hello, everyone. Thank you for taking the time to be with us today as we review our first quarter 2025 financial results and recent developments. Let's turn to Slide 4, please. For Q1, we reported a TCE income of $39,800 per available day and $38,800 per calendar day. This is above our guidance of $36,000 per day, thanks to the performance of our time charter portfolio. After minority interest, the Q1 profit was $46 million, equivalent to $0.30 per share. And the Board of Directors has declared dividends of $0.28 per share, which is equivalent to 75% of our shipping NPAT and translates to an annualized dividend yield of 10%. We've been quite busy on the financing side and have concluded a Japanese JOLCO lease for 1 vessel, the BW Kyoto, while we are at the final stages of refinancing a $380 million bank loan where we have received very strong interest from the banking group. As per our trading update back in April, BW Product Services realized positions showed a solid $33 million in profit in Q1, but due to a downward adjustment of the valuation of the unrealized positions, they reported a gross loss of $3.6 million and a net loss after tax of $12.5 million for the first quarter. We like, again to emphasize that this is -- that it is the realized positions, which generated dividend capacity and the downward adjustments to the valuation of the unrealized positions does not necessarily mean the positions are loss-making when they are realized in the future. Into the second quarter, we reactivated the share buyback program after the share price dropped in the wake of the U.S. China tariff war. We are happy to see that the share price has improved significantly since then as…

Thank you, Kristian, and hello, everyone. Please follow me to Slide 12 and have a closer look at our shipping performance. For this quarter, we are very pleased to report achieving TCE per calendar day of $3,800, or per available day, $39,800 over a 96% fleet utilization after deducting technical off-hire and waiting time. The healthy result achieved in a volatile market was a strong statement to our commercial strategy, consistently taking on fixed rate time charter and FFA for -- to cover a stronger market and to support -- provide support when spot markets are under pressure. In Q1, the time charter portfolio was 41% of the total shipping exposure, among which 30% is fixed rate time charter, supporting the earning when the spot market softened. For Q2 2025, we have fixed 79% of the available fleet days at about $35,000 per day. Looking ahead, we have secured a total 30% of our portfolio with fixed rate time charters and FFA at $45,000 per day and $50,600 per day, respectively. For 2025, our time charter at fleet is estimated to generate a profit of around $24 million over our time charter-in fleet. And on top of that, the balance of our fixed time charter-out portfolio estimate to generate $137 million for 2025. Next slide, please. On Product Services side, the business posted a realized gain of $33 million for Q1, a very strong quarter delivered. On the unrealized open positions we reported a negative change in mark-to-market valuation on our cargo of $51 million which offset by a positive paper position change of $50 million. This broad product services trading result to a gross loss of $4 million for the quarter. After accounting for other expenses, which mainly comprise of general and administrative expenses accrued, Product Services reported a…

Thank you, Samantha, and thank you, Kristian. We would now like to open the call for your questions. [Operator Instructions] And I see a question here from Kushal. If you could please unmute yourself.

Can you hear me?

Yes.

Just wanted to understand our broader strategy on the India LPG terminalling business. I just noted that we are moving out of the contract with Ganesh Benzoplast, as well as Confidence Petroleum, where we wanted to set up this LPG import terminal. Why was this decision taken specifically given the fact that now volumes are moving from U.S. to India directly, the LPG volumes, which I'm referring to? That is my first question. Thank you.

Thank you. The terminal investment for BW LPG is -- was estimated somewhere between $10 million and $15 million, which is compared to the balance sheet, a relatively modest investment for our company. And like in any other greenfield infrastructure projects, there is a certain complexity, of course when you construct a terminal. And given the challenging market environment and geopolitical turmoil, the management has had to make the decision to focus on the core value drivers of our company, which are shipping and trading. So it is not an easy decision we have made, but it's simply because of the circumstances where we have to focus our attention and resources and time on our shipping and trading activities.

Thank you. Anyone else who would like to raise his/her hand, Yes, I have next up, John Dickson, if you might unmute yourself, please.

Good morning Kristian, good morning Samantha. Can you all hear me okay?

We can, yes.

Kristian, I wanted to ask a question about the share buyback. I know you said that it was concluded. But of course, things here in the United States on the United States market, a very simple announcement by the President can have a huge impact on the stock market and on the stock prices as we've seen. Are you guys still open to continuing to buy back shares should they fall to a lower level as they did prior?

Thanks John. The main way we return value to our shareholders is through the dividends and that's something which is not going to change. But if you look at the Annual General Meeting last week, we renewed share buyback program, which is to be reactivated when the directors find it timely. So I guess the answer to your question is that, yes we do have a new share buyback program in place, but our main way of returning value to our shareholders will remain the dividend payouts.

Sounds good. Thank you.

Thank you. We have also a question by Clement, if I pronounce your name correctly?

Hi, correct. Thanks for taking my question. I wanted to start by asking about your time charter portfolio. Do you have extension options on your existing time charter contracts? And if so, are those included on Slide 21? And secondly, as you think about your time charter portfolio, would you prefer to increase the number of TCEs or routes amid current market conditions?

Thank you, Clement. When it comes to options on our time charters, some of the time charters do have options. But they are on the charter side. So we do not include these optional periods because they are to be declared by the charters. And that is on the Indian fleet primarily. So on our side, we do not have any options to extend the period on the time charters that we have in our fleet at the moment. We -- like I said before, we have an aim to increase the share of time charters in our shipping portfolio. So we are constantly working to try to increase the number of time charters and also its share of the fleet exposure that we have. And as I have mentioned before, I think if we can come back to a level around 40% we had before the Avance Gas transaction, I think we will be quite happy with doing so. But it is not like we're rushing into securing time charters at levels we don't find attractive. So this is something we are working on constantly, but it has to be done and conducted in the right way, so to say.

That's helpful. Thank you. My second question was on the trading segment. Could you talk a bit about how the tariff turmoil affected operations, and whether you have any visibility on Q2 results?

Yes. Thanks. When it comes to Product Services trading portfolio, that's shifting day by day and week by week. So I would rather refrain from commenting specifically on that. And we will have, as you may know, a new trading update in like -- in the middle of July, I think it is. And we will provide you with a status for the second quarter by that time. But I think it is difficult for us to comment on that since the portfolio is like any other trading portfolio is shifting on a daily and weekly basis.

Make sense. That’s all from me. Thank you for taking my questions. Anyone else who would like to raise the hand. We have a few questions in the chat as well, but let's see if someone else wants to ask a question verbally. [Operator Instructions] So first one is from Vasilis. Would you say that the recent VLGC spot rate strength is partly attributed to front-loading relating to U.S.-China 90-day trade truce?

Thank you, Vasilis. The strength in the spot market today is, like I also mentioned in the presentation, due to the strong fundamentals of the market with very good export levels from the Middle East, supporting continued growth in exports from the U.S. But of course, when you have a tariff relief, like we are currently having, it does definitely impact the market -- the freight market and the activity in the market positively. So I would say that it's contributing.

Thank you. We have some more hands raised. Let's go with Marcus, if you could please unmute your yourself. Marcus, we can't hear you just now maybe try to unmute yourself.

Can you hear me?

Yes. Now we can hear you.

Thank you very much. This is Marcus in Germany. Just a quick question on the finishing the business with the Indian terminal investment. Is there any impact in quarter 2 on onetime cost? Thank you.

Thank you for your question. So it is a very early stage for our involvement in the terminal in India project. So at this point in time, there is no significant some cost that we need to account for.

Thank you. We have another question in the chat on product services from Arne. Congrats on the quarter. What is the confidence level for the product service VAR, please?

Thanks, Arne. I need to double check on that, just to answer to you accurately. So if you don't mind, I'll reach out to you on an e-mail.

And then we have another question from Axel. Can you please explain the year-over-year increase in SG&A?

Thank you for the question. So as we have mentioned as part of the Product Services performance, we'll gradually accrue for the bonuses related expense based on the realized trading results. As for the year of 2023 and '24, we have seen year-on-year improvement of the trading result and also the same you can observe in Q1 '25 as well. So the G&A increase is largely attributed to the accrued reflected as part of G&A.

Thank you, Samantha. And actually, there has been another question from Arne, which I would also like to read out, of course. Could you give some more color on the decision to limit the share buybacks to only $2.7 million compared to a capacity of $20 million, if I remember correctly?

Thanks, Arne. We -- as you know, there are certain limitations when you execute on the share buybacks and how much you can buy every day. And that is one reason for it. And the other reason was that the shares started to increase quite shortly after we activated the share buyback program. And we also had to end it because we were entering our blackout period where we are very much restricted to continue our share buyback program as we enter the blackout period, which is a month ahead of the earnings release.

Thank you, Kristian. And I would just like to hand back to Samantha on Arne's first question.

Arne, thank you for your patience. Just to quickly check with the team and confirmed my initial answer, which I know is accurate to that the confidence level of the Product Services bar is a 95%.

All right. Thank you. There is another question in the chat from Peter. Last year, the terminals were taking a larger share of the arbitrage and putting pressure on rates, but it seems that owners are again getting a more appropriate share. Do you expect this to continue?

That's a very good question, Peter. I think the answer to that is that every day, as I used to say, there is this arm wrestling between cargo owners, shipowners and the terminals on how much of the profit in the LPG supply chain they can obtain. And the relative bargaining power of the shipping part of the value chain depends on the supply and demand of the vessels at that specific time. For this year going forward, we see very little growth in the VLGC fleet. And with the continued export expansion plans from the U.S., which we believe will mean more volumes for export from the U.S., it should be a good environment for shipping going forward simply because the supply demand balance is hopefully playing in the owner's favor.

Thank you Kristian. Do we have any more questions either verbally or in the chat? So please put them forward. It doesn't look like. Let me just double-check. No, nothing so far. Then I’ll hand back to Kristian to conclude the call.

Thank you, everyone, for joining us this quarter, and we look forward to seeing you again next quarter. Bye-bye, everyone.

Thank you very much, and this concludes BW LPG's Q1 2025 Earnings Presentation. The call transcript and recording will be available on our website shortly. And thank you all for dialing in. We wish you a good rest of your day.