Hello, everyone.

A warm welcome to BW LPG Limited's Q4 2025 earnings presentation. My name is Aline Anliker, and I am the Head of Corporate Communications at BW LPG Limited. 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. The questions can be put into the Q&A chat during the presentation already, or you can raise your hand and ask your question directly once we move to the Q&A part. Before we begin, displayed on the current slide, I would like to highlight the legal disclaimers. Please also note that today's call is being recorded. Without further ado, I would now like to hand over to our CEO, Kristian.

Thank you, Aline, and hi, everyone. Thanks for calling in as we review our fourth quarter financial results and the recent developments, including the Middle East situation, which dramatically escalated last weekend. Let us turn to slide four, please. So, highlights. The beginning of Q4 was marked by lower in the US–China relationship as the reciprocal port tariffs were lifted and postponed until November. In addition, there was a significant build in US propane inventories well above trend levels, driven by strong US production. Over the winter, there were no major disruptions from the usual cold season weather, supporting a wide arbitrage throughout the fourth quarter and into 2026. Moving on to the Q4 results. We reported a TCE income of $50,300 per available day and $48,100 per calendar day, above our guidance of $47,000 per day for the quarter. The Q4 profit after minority interest was $104 million, equivalent to an EPS of $0.69. Our trading branch, BW Product Services, reported a gross profit of $27 million and a profit after tax of $23 million for the quarter, and we are pleased to report a strong realization of $12 million from our trading activities in Q4, bringing the full-year 2025 realized trading results to $66 million. For Q1 2026, we are guiding on about $54,000 per day fixed for 94% of our available days. These are solid levels above our all-in cash breakeven of $23,400 per day, but it is reflecting the time charter coverage in the first quarter of 42% of our available days at $44,200 per day. Please see the appendix in this presentation for the full breakdown of the time charter days and levels. The Board of Directors has declared a dividend of $0.57 per share, representing 100% of our shipping NPAT, exceeding the guidance set…

Thank you, Kristian, and hello, everyone. Thank you for being here with us today. I will start with our shipping performance. 2025 has been a quarter that we deliver above the guidance, with a TCE of $48,100 per calendar day, or $50,300 per available day. The fleet utilization was at 94% after deducting technical off-hire and waiting time. Delivering this healthy result in a market full of uncertainties is a strong testament to our commercial strategy, which builds on healthy time charters and FFAs concluded during active and strong markets. Such protection provides stability and support when spot markets come under pressure, as we have witnessed in this quarter. In Q4, the time charter portfolio was 44%, out of which 33% was fixed-rate time charters. Looking ahead for Q1 2026, we have fixed 94% of the available fleet days at an average rate of about $54,000 per day. This also includes index-linked time charter contracts, which could share some spot market upside when the market becomes stronger. For full-year 2026, we have secured 40% of our portfolio with fixed-rate time charters and FFA hedges, at $43,747.90 per day. Altogether, our time charter-out portfolio is expected to generate around million. Although the level of rates appears to be slightly lower than 2025, it continues to represent a very healthy level of earnings against an all-in cash breakeven of low $20,000. Next slide, please. In Q4, Product Services posted a realized gain of $12 million, reflecting effective risk management in the turbulent market conditions that we experienced. At the quarter end, we reported a $33 million increase in mark-to-market on our cargo position, offset by an $18 million decrease in paper positions. After accounting for G&A costs and other expenses, Product Services reported a net profit after tax of $23 million for…

Thank you, Samantha. Thank you, Kristian. We would now like to open the call for your questions. Please, you can type your questions into the Q&A channel, or you can also click the raise hand button to ask your question verbally. Please note that you have been muted automatically when joining the call; please press unmute before speaking. I would like to start with the verbal questions first before then moving on to the chat. I can see already that Petter has raised his hand. So please proceed, Petter.

Good afternoon. Thank you. A quick, very difficult question first then. About the Middle East unrest. In terms of the current Iranian volumes, is there any indication that Iran is still exporting LPG, or has that now come to a complete halt? And secondly, are there any convoys now planned for other exporters within the Arabian Gulf? And if so, what is the war-risk premium paid these days?

Thanks, Petter. We do not have the full overview of the exports from Iran under the current circumstances, but there are, let us say, unconfirmed reports that ships are still planned for exporting LPG and being through convoys, basically sailing to China. But we do not know if this is just market rumor or if it is actually a real effect. So, and your second question, Petter, what was that again?

No, well, the first one was more about the Iranian-specific questions, and the second one was about the convoys, I suppose, then for other sort of legitimate exporters.

Yes. So we do not have any concrete news about convoys being established at the moment. This is something we have seen if you look historically back to when the pirate attacks were peaking and also previous wars in the Middle East. There have been convoys with naval escort vessels established, but that is something we have no firm news about at the moment.

Understood. And if you were to do the transit here now, is there insurance, or is it possible to get insurance? And what is the war-risk premium paid these days?

As far as we have been informed, you will not get ships insured if you pass into the Arabian Gulf through the Strait of Hormuz at the moment. But this is changing from day to day, Petter, so it is hard to give an exact answer to what would be the case tomorrow. But for the time being, that is something which is difficult to assess. Yes.

No. So effectively now, the Hormuz is actually closed, for LPG vessels at least. More or less.

As far as we can see, there are no ships on the conventional fleet shuttling in and out of the Arabian Gulf. But again, what is actually happening with the shadow fleet, which is about 50 old ships shuttling between Iran and mainly China, that is unclear.

Understood. Understood. A quick follow-up on the FFA rates, and to what extent would you think that those rates now quoted, we see that it is pretty similar in terms of day rates out of the US and out of the Middle East. But in the VLCC market, we have seen some numbers which are, well, from what we hear, not particularly relevant, being very high. So now the FFA market is pricing in some $80,000 plus. Is that also a level at which you can fix ships in the TC market these days?

Before the weekend, there were reports about a one-year time charter done in the mid-$50,000s per day. So far this week, with the current situation, we have not heard any discussions about any discussions, and I think the situation is so fluid at the moment, so it is hard to give an assessment on that. But the last one in the market is reportedly in the mid-fifties per day for 12 months.

Okay. That is helpful, Kristian. I will turn it over. Thank you for taking my questions.

Thank you, Petter. I have Climent up next. Please, if you unmute yourself.

Hi. Good afternoon, and thank you for taking my questions. Several US LPG projects have come online. You commented on this briefly, but at what utilization was overall US LPG export infra running prior to the war? So, in other words, to what extent is there, let us say, spare capacity to increase volumes out of the US in the short term?

This is a very good question, and we discussed this yesterday at the desk, actually. We believe the US terminals have some slack capacity to export more volumes if they optimize the berthing, which you have seen them do before, for instance by loading VLGCs instead of midsized vessels, so you basically have a more optimal usage of the jetties and the berths. We do not know exactly whether all the midsized vessels can be replaced by VLGCs—most likely not—but probably the US has some slack in their export volumes. It is difficult for us to assess exactly because we do not have enough visibility on the April loadings at the moment, so it is hard for us to say, but we anticipate some slack to be made available for VLGCs.

Makes sense. That is still very helpful. I will turn it over. Thank you.

Thank you. Next up would be Joy Wu.

Hi. Yes. Thanks. I have two questions. So first thing is I would like to understand on the overall fleet, from what we have known until now, is there any vessel getting because of the Iran situation escalation over the weekend? And also looking forward, let us say two weeks, is there any vessel that is unable to detour to avoid the high-risk waters as far as you are aware, or is there any so-called crisis management that has been put in place for all the fleet nearby the risky waters? Yes. This is my first question.

If I understand you, you are asking if ships can be diverted from loading in the Middle East. Is that your question?

Yes.

Of course, the ships which have not yet entered the Arabian Gulf and are outside in the Indian Ocean, for instance, they can always start ballasting towards the US Gulf or other loading areas to seek employment. This is basically down to the decision made for every single vessel in the region which is not inside the Arabian Gulf. It depends: if the ships are on time charter, it is up to the charterers to decide where they want to employ the ships. If it is part of the spot fleet, the one I mentioned, our first ship which could be available for a spot cargo out of the Middle East is towards March. But, of course, if the situation is as serious as it is now, we will rather ballast the ship to the US Gulf to employ the ship, if that makes sense.

Yes. Thanks. And sorry to, on top of that, can I just confirm there is no vessel currently sort of stuck in that risky region near Iran?

Are you thinking of our fleet or the VLGC fleet in general?

Your fleet, including all the so-called managed fleet, per se.

As mentioned in our highlights, we have two ships from our Indian-flag fleet on time charter to Indian charterers, which are in the Arabian Gulf, still on time charter, and we have one vessel in dry dock in the region, also Indian-flagged. You will see that also being mentioned in the highlights page, slide four.

Okay. Got it. But do we see any serious coming up concerning these three—that two actually, one in dry dock, one is in the risky zone, sort of? Do we foresee any financial impact or any drastic negative developments to these three vessels?

So far, there is minimal negative financial impacts only due to a slight delay in the drydocking of the ship in dry dock, and we do not have any threats to our ships or crew at the moment. So there are no direct threats, but it is an overall view on the market and the situation that is making us avoid the transits through the Strait of Hormuz.

Okay. Thanks.

Thank you, Joy. Let us move on to John Dixon first before we then have Abhishek. Please, John, go ahead and unmute yourself.

Hello, Kristian. Samantha. How are you doing this morning?

Well, I guess I am here. How are you?

Kristian, I do have a question. So I have listened to Samantha for a little while, a couple quarters, and relating to the trading profit that would be eligible for dividend distribution. Is that included in your current dividends, or are you planning on having your Board review that later in the year for dividend distribution? I am just curious to see if I can learn a little bit more how that is considered and when you are likely to have that be a part of your dividend distribution.

Thanks for the question, John. That is a very good one, and also for following up our previous quarter earnings as well. Indeed, as we mentioned, Product Services—basically their realized trading result—will build on our dividend capacity, and then we would like to look at it to declare once a year post year end. So specifically for Q4 2025, the $0.57 per share dividend declared by the Board is only 100% shipping NPAT; it does not include any contributions from Product Services. However, the Product Services Board has already reviewed the proposal and also approved the dividend proposal for Product Services for 2025, and the approved dividend will subsequently be considered in the future quarters within 2026 and distributed to the shareholders accordingly.

Okay. So that basically would be distributed on a quarterly basis throughout the remainder of the year. Is that what I am understanding?

No. It would be forming the overall company dividend capacity. You can imagine that we will have a bigger base for considering the dividend distribution for the upcoming quarters.

Okay. Alright. I understand that now. Thank you, Samantha. I appreciate the explanation.

Thanks, John.

Thanks, John. Next up, we have Abhishek. Please.

Hi. Good evening. I have two questions. One, you mentioned that there are three ships which are stuck in the conflict zone. May I know the name of these three ships? And second, last year you raised borrowing for acquisition of new ships, basically new vessels in India. So, I mean, as per presentation also, we can see that India is a high-growth market for you. So do you plan any further new acquisition of fleet in India this year?

Thank you for the questions. The ships are BW Element, BW Elventier, and BW Loyalty from the Indian-flag fleets. When it comes to further expansion of the Indian-flag fleet, that is something we are considering. It depends also on the employment that we see and where we can employ our ships most efficiently to ensure solid and robust shareholder value creation. So it is definitely something we are considering, but it remains to be seen if we decide to do so.

Okay. Thanks. Yes.

Thank you. Let us move on to some questions from the chat. We have a question posed by Kevin: Is there an option to delay drydocking to take advantage of current high charter rates?

This is something we are always considering. It should be said that these immediate spikes that we experience now, for instance, are difficult to plan for, and these drydockings have to take place within a certain time. We try to optimize depending on the market view and so on, but it also needs to fit into the commercial program, and of course we also need to have available space at the docking yards. So the question is: yes, we try to plan around this. Usually, the first quarter is the weakest quarter of the year. If you look back in time, there have been several years where the rates are softening considerably in January, February. This was not the case this time. But of course we plan around optimizing the fleet positioning so that we can hopefully have all the vessels in position at the best point in time of the cycle in the market.

Thanks, Kristian. Another question from the chat: Has the current war disruption led to higher long-term charter rates?

So far, we have not seen that, and again, these are very recent developments, so there have not been any serious talks about time charters so far.

Then another one from Kevin: Have scrapings increased recently, and will that continue or be delayed in 2026 due to the elevated spot rates?

Scrappings, as you allude to, very much depend on the underlying freight. As long as we see the freight market operating at the current levels, we do not really see much scrapping activity, if anything at all. These ships can technically trade for many more years after they turn even 30 years of age. So, technically, if they are well maintained, they can still sail across the seven seas.

The last one from Kevin: Will the three ships in the Gulf region of conflict be at risk for lower revenue than currently expected?

For the time being, that is not the case. Two of the ships are, like mentioned, on time charter in accordance with their time charter parties, and for the ship in dry dock, we will see when she gets out of the dry dock. We see there are certain needs in the region to employ ships as well. We will see what happens, because the spot market and the freight market is evolving day by day here. But so far, no impact as far as we can see.

Thank you, Kristian. If you either want to type into the chat or raise your hand, there is still some time for more questions. I see one hand up. Carl, if you would like to unmute yourself. Carl Heine, can you hear us?

Yes. Yes. Can you hear me?

Yes, we can.

Could you comment a little bit about the capacity expansion in the US—Energy Transfer, Enterprise Product Partners? How I read that it is about 250,000 and 300,000 barrels a day in new export capacity. Probably not all of it will go on VLGC, or we cannot really—

We cannot really hear you that well, to be honest.

You cannot hear me? Hello? Explore Africa with fear.

If you just speak up a bit louder, if that is possible.

Yes. I wanted you to comment on the capacity expansion in the US—the exports—and how many ships you think that will, or how many ships you will need to cover that expansion?

This depends on the trade pattern, like I also mentioned in the presentation, and also how the Panama Canal is congested or not congested in the time ahead. It is a very big difference if the ships are sailing through the Panama Canal to Northeast Asia, or, like we have seen recently, more and more ships sailing around South Africa into India and Asia, which is absorbing more shipping capacity actually than if you sail the milk routes from the US through Panama to Northeast Asia, quick turnaround and back again. I think it is hard on the spot to simulate that exactly, but we can—

A high–low number?

Sorry. How many ships?

No, I said you can just provide a high and a low.

Sorry. A high number of ships needed for the exports. Is that what you are asking for?

Yes. You can just give us—are you low or high?

Are you talking up until 2028, or is it within this year?

I was thinking first and foremost this year, but I could get both answers, please.

I need to get back to you on that exactly, to be honest, because I do not have that number in front of me. I will get back to you on that when I have looked at the numbers.

But these two projects, when do you think they will come online in '26?

You mean Enterprise—the two Enterprise expansions, right?

Yes, and Energy Transfer.

Energy Transfer is already ramping up as of the beginning of this year—end of last year, beginning of this year. Enterprise is expanding their flex capacity first, and then secondly the LPG-specific capacity, which is later this year. You will see in our previous investor presentation, we have it stacked up on slide number six, is it not? Yes.

Alright. Thank you. Any more questions before we round up?

If not, thank you, Kristian. Thank you, Samantha. Hold on. I just see another hand. Okay. Well, okay. We have—let me check. Okay. We have a couple of minutes. So, Choi, if you would like to unmute yourself, please.

Yes. Thanks very much. I will make this quick. So going back to the three vessels, Indian flag, in the risky zone, I could not get the names. I think I heard two names. One is Element, one is Loyalty, and one is the drydocking vessel's name?

Yes. Elventier and Loyalty are the ships' names. Sorry. Element, Elventier, Loyalty—that is the three vessel names.

Okay. Okay. Thanks.

Okay. Thank you.

Well, thanks a lot to all our key stakeholders for joining us for today's call. Thank you, Kristian. Thank you, Samantha. This will conclude BW LPG Limited's Q4 2025 earnings presentation. The call transcript and the recording will be available on our website shortly, and again, thanks for dialing in. We wish you a good rest of your day and look forward to seeing you again next quarter. Thank you.