Q4 2025 BW LPG Ltd Earnings Call

Speaker #2: Hello everyone. A warm welcome to BW LPG's Q4 2025 earnings presentation. My name is Aline Andliker, and I'm the Head of Corporate Communications at BW LPG.

Aline Anliker: Hello, everyone. A warm welcome to BW LPG's Q4 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, Christian Sorensen, and our CFO, Samantha Shu. 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, I would like to highlight the legal disclaimers displayed on the current slide. Please also note that today's call is being recorded. Without further ado, I would now like to hand over to our CEO, Christian.

Speaker #2: Today's presentation will be given by our CEO, Christian Sørensen, 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.

Speaker #2: 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.

Speaker #2: Without further ado, I would now like to hand over to our CEO, Christian.

Speaker #3: 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.

Kristian Sørensen: Thank you, Elena. Hi, everyone. Thanks for calling in as we review our Q4 financial results and the recent developments, including the Middle East situation, which dramatically escalated last weekend. Let's turn to slide four, please. Highlights. The beginning of Q4 was marked by lower tension in the US-China relationship as the reciprocal port tariffs were lifted and postponed until November this year. 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 weather, cold season weather, supporting a wide arbitrage throughout Q4 and into 2026. Moving on to the Q4 results.

Speaker #3: Let's turn to slide 4, please. So, highlights. The beginning of Q4 was marked by lower tension in the US-China relationship as the reciprocal port tariffs were lifted and postponed until November this year.

Speaker #3: In addition, there was a significant build in U.S. propane inventories, well above trend levels, driven by strong U.S. production. Over the winter, there were no major disruptions from the usual cold season weather, supporting a wide arbitrage throughout the fourth quarter 2025.

Speaker #3: Moving on to the Q4 results, we reported a TCE income of $50,300 per available day, and $48,100 per calendar day. This was above our guidance of $47,000 per day for the quarter.

Kristian Sørensen: 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 Q4. 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 Q4. 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're guiding on about $54,000 per day fixed for 94% of our available days.

Speaker #3: 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.

Speaker #3: 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.

Speaker #3: For Q1 '26, we're guiding on about $54,000 per day, fixed for 94% of our available days. These are solid levels above our all-in cash break-even of $23,400 per day, but it is reflecting the shorter time coverage in the first quarter of 42% of our available days at $44,200 per day.

Kristian Sørensen: Solid levels above our all-in cash break even of $23,400 per day. It is reflecting the time charter coverage in Q1 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 impacts, exceeding the guidance set by the dividend policy. Looking further on our shipping activities, we are continuing our active dry docking program in 2026 with 13 vessels scheduled for dry docking. The majority of these are planned during Q1, with a total of 193 off-hire days expected during Q1 due to dry docking.

Speaker #3: Please see the appendix in this presentation for the full breakdown of the time, shorter days, and levels. The Board of Directors has declared a dividend of $0.57 per share, representing 100% of our shipping and PET, exceeding the guidance set by the dividend policy.

Speaker #3: Looking further on our shipping activities, we are continuing our active dry docking program in 2026, with 30 vessels scheduled for dry docking. The majority of these are planned during Q1, with a total of $193 off-hire days expected during the first quarter due to dry docking.

Speaker #3: Given the dramatic escalation in the Middle East over the last couple of days, our first priority is to ensure the safety of our colleagues and crew in the region, at the same time as we protect and optimize the overall interests of the from our Indian flagged fleet in the Arabian Gulf, two on time shorter to Indian charters, and one vessel in dry dock.

Kristian Sørensen: Given the dramatic escalation in the Middle East over the last couple of days, our first priority is to ensure the safety of our colleagues and crew in the region at the same time as we protect and optimize the overall interests of the company. We have 3 ships from our Indian-flagged fleet in the Arabian Gulf, 2 on time charter to Indian charters, and 1 vessel in dry dock. So far, there have been minimal negative financial impact, only pertaining to the vessel in dry dock, where the nighttime work is suspended. The 2 vessels on time charter are on hire in accordance with the respective time charter parties. In addition, we have other vessels on time charter idling outside the Arabian Gulf, assessing the evolving safety and security situation in the Strait of Hormuz.

Speaker #3: So far, there have been minimal negative financial impacts, only pertaining to the vessel in dry dock, where the nighttime work is suspended. The two vessels on time shorter are on hire in accordance with the respective time shorter vessels on time shorter idling outside the Arabian Gulf, assessing the evolving safety and security situation in the Strait of Hormuz.

Speaker #3: Our next open spot vessel for AG loading could be available in the last decade of March, unless we decide to balance them to the US Gulf, or of course depending on how the security situation and market develops.

Kristian Sørensen: Our next open spot vessel for AJ loading should be available last decade of March, unless we decide to ballast them to the US Gulf, of course, depending on how the security situation and market develops. Like we have experienced in previous rounds of increased tension in the Middle East, the market response is to secure cargoes and ships from alternative loading regions, and mainly from the US Gulf. We fixed 1 vessel yesterday at around $80,000 per day for mid-March loading, while other fixtures in the market are reported around the same level for first half April loading in Houston.

Speaker #3: Like we have experienced in previous rounds of increased tension in the Middle East, the market response is to secure cargoes and ships from alternative loading regions, and mainly from the US Gulf.

Speaker #3: We fixed one vessel yesterday at around $80,000 per day for mid-March loading, while other fixtures in the market are reported around the same level for first half April loading in Houston.

Speaker #3: Further, in other subsequent events from the quarter, we recently announced that in January, we secured three-year time shorter out contracts for two VLDCs, the BW Tucana and the BW Yushi, increasing our full year 2026 fixed rate time shorter out coverage to 36% at an average of $43,700 per day.

Kristian Sørensen: Further, in other subsequent events from the quarter, we recently announced that in January we secured three-year time charter out contracts for two VLGCs, the BW Tucana and the BW Uschi, increasing our full year 2026 fixed rate time charter out coverage to 36% at an average of $43,700 per day. Let's move to the next slide, please. Although the main attention right now is on the impacts on the Middle East war, we believe it's worthwhile to remind ourselves of the market fundamentals as Q4 2025 and the start of 2026 positively surprised the VLGC markets. By the end of 2025, the US propane inventories were well above the trend level at 100 million barrels, which is compared to 85 million barrels at the end of 2024.

Speaker #3: Let's move to the next slide, please. So, although the main attention right now is on the impacts of the Middle East war, we believe it's worthwhile to remind ourselves of the market fundamentals, as the fourth quarter of '25 and the start of '26 positively surprised the VLGC markets.

Speaker #3: By the end of 2025, the US propane inventories were well above the trend level at $100 million barrels, which is compared to $85 million barrels at the end of 2024.

Speaker #3: This was driven by strong production levels and supported the U.S. export volumes, while domestic consumption remained steady at around 50 million tons per year.

Kristian Sørensen: This was driven by strong production levels and supported the US export volumes, while domestic consumption remained steady at around 50 million tons per year. As we enter the inventory draw season, US propane inventories declined somewhat but remained well above the level typically expected at this time of the year. The high inventory levels have contributed to continued downward pressure on US LPG prices and have, together with healthy demand in the Far East, supported a wide arbitrage as reflected in the US Far East price differential. If you look at the graph on the right-hand side, we can see the relationship between the arbitrage and the VLGC spot rates. A wider arbitrage usually allows for higher willingness to pay for shipping, something that has been the case in recent months.

Speaker #3: As we enter the inventory draw season, US propane inventories declined somewhat but remained well above the levels typically expected at this time of the year.

Speaker #3: The high inventory levels have contributed to continued downward pressure on US LPG prices, and have, together with healthy demand in the Far East, supported a wide arbitrage, as reflected in the US–Far East price differential.

Speaker #3: If you look at the graph on the right-hand side, we can see the relationship between the arbitrage and the VLGC spot rates. A wider arbitrage usually allows for higher willingness to pay for shipping, something that has been the case in recent months.

Speaker #3: In addition to commercial drivers such as the US Far East arbitrage, other geopolitical events and infrastructure expansions have also contributed to a strong market in recent months.

Kristian Sørensen: In addition to commercial drivers such as the US Far East arbitrage, other geopolitical events and infrastructure expansions have also contributed to a strong market in recent months. Late October, for instance, the US and China agreed to a trade truce, paving the way for a revived US-China LPG trade. Further into January this year, we've also seen the Nederland Terminal in the US Gulf increasing its number of VLGC loadings after commissioning the terminal expansion in 2025. Lastly, before the armed conflict commenced on Saturday in the Middle East, the increased tension in the region led to market participants fixing vessels further out in time than what they normally would have. This was creating a shortage of available vessels and ultimately pushing up spot rates.

Speaker #3: Late October for instance, the US and China agreed to a trade truce paving the way for a revived US-China LPG trade. And further into January this year, we've also seen the needle in terminal in the US Gulf increasing its number of VLDC loadings after commissioning the terminal expansion in 2025.

Speaker #3: And lastly, before the armed conflict commenced on Saturday in the Middle East, the increased tension in the region led to market participants fixing vessels further out in time than what they normally would have.

Speaker #3: This was creating a shortage of available vessels and, ultimately, pushing up spot rates. In addition to the factors we discussed on this page pertaining to the exports of LPG, it's also important to look at how the developments in the Asian import markets are shaping the LPG trade dynamics and the normal market circumstances.

Kristian Sørensen: In addition to the factors we discussed on this page pertaining the exports of LPG, it's also important to look at how the developments in the Asian import markets are shaping the LPG trade dynamics under normal market circumstances. Next slide, please. On this slide, we can see how trade flows responded to several major disruptions during 2025, with trade tensions between the US and China being among the most significant during the year. Chinese imports on the agencies from North America and the Middle East fell by 3% in 2025 compared to the year before. This number is, however, heavily impacted by a few months during 2025, where the trade tensions were at the highest and imports from the US were much lower than normal. Towards the end of last year, China had also lower imports than usual.

Speaker #3: Next slide, please. On this slide, we can see how trade flows responded to several major disruptions during 2025, with trade tensions between the US and China being among the most significant during the year.

Speaker #3: Chinese imports on VLDCs from North America and the Middle East fell by 3% in 2025 compared to the year before. This number is, however, heavily impacted by a few months during 2025, where the trade tensions were at the highest, and imports from the US were much lower than normal.

Speaker #3: Towards the end of last year, China also had lower imports than usual. This, however, coincided with Chinese LPG inventories declining. And for the beginning of '26, Chinese LPG imports are again on the rise, and the ongoing Middle East conflict is likely to support more cargoes from the US ending up in China, as Middle East supply is disrupted.

Kristian Sørensen: This, however, coincided with Chinese LPG inventories declining. For the beginning of 2026, Chinese LPG imports are again on the rise, and the ongoing Middle East conflict is likely to support more cargos from the US ending up in China as the Middle East supply is disrupted. As we have highlighted before, incremental LPG production is priced to clear in the international markets. With US-China trade war as a backdrop, this produced some interesting trade flows in 2025. For instance, as LPG volumes into the Far East declined 2% year-over-year, India saw its imports growing by 10% during the same period, driven by higher cargo flows from the US, increasing the ton mile compared to the traditional sourcing of LPG from the Middle East.

Speaker #3: As we have highlighted before, incremental LPG production is priced to clear in the international markets. And with the US-China trade war as a backdrop, this produced some interesting trade flows in 2025.

Speaker #3: For instance, as LPG volumes into the Far East declined 2% year over year, India saw its imports grow by 10% during the same period, driven by higher cargo flows from the US. This increased the ton-mile compared to the traditional sourcing of LPG from the Middle East.

Speaker #3: India is a market of growing importance for LPG, with about 10%, equaling 2 million tons, of Indian LPG imports contracted from the US for 2026.

Kristian Sørensen: India is a market of growing importance for LPG, with about 10% equaling 2 million tons of Indian LPG imports contracted from the US for 2026. We also see Indian government subsidies continue supporting retail demand. New pipeline infrastructure is expected to further improve inland distribution. Another region that saw an increase in import volumes from North America in 2025 was Southeast Asia. This region has historically imported most of its LPG from the Middle East. With the trade war shifting more of the Middle East volumes to the Far East, increased volumes from North America found its way to Southeast Asia last year. As long as the Middle East tension is halting LPG exports from the region, we anticipate more US volumes flowing to the markets east of Suez, which is supportive for freight in the short term.

Speaker #3: We also see Indian government subsidies continue supporting retail demand, and new pipeline infrastructure is expected to further improve inland distribution. Another region that saw an increase in import volumes from North America in 2025 was Southeast Asia.

Speaker #3: This region has historically imported most of its LPG from the Middle East. However, with the trade war shifting from shifting more to the Middle East volumes to the Far East, increased volumes from North America found its way to Southeast Asia last year.

Speaker #3: As long as the Middle East tension is halting LPG exports from the region, we anticipate more US volumes flowing to the markets east of Suez.

Speaker #3: This is supportive of freight in the short term. Over the longer term, however, vessels that have traditionally loaded in the Middle East are likely to see cargoes from the US, which could place downward pressure on the rate structure for US loading VLGCs.

Kristian Sørensen: Over the longer term, however, vessels that have traditionally loaded in the Middle East are likely to see cargos from the US, which could place downward pressure on the rate structure for US loading VLGCs. Next slide, please. If you're looking at the two main regions for LPG exports, North America and the Middle East, we will continue seeing export growth in the years ahead, assuming the Middle East situation returns to normal. In the Middle East, the exports from Saudi Arabia and Qatar are disrupted, with duration of these disruptions remaining uncertain at this point in time. Secondly, the raging Middle East war has halted all ships passing in and out of the Arabian Gulf, which would have a dramatic impact on the Middle East exports short term. It remains to be seen how long the large energy markets in Asia can accept their supply of hydrocarbons being choked.

Speaker #3: Next slide, please. If you're looking at the two main regions for LPG exports, North America and the Middle East, we will continue seeing export growth in the years ahead, assuming the Middle East situation returns to normal.

Speaker #3: In the Middle East, the exports from Saudi Arabia and Qatar are disrupted, with the duration of these disruptions remaining uncertain at this point in time.

Speaker #3: Secondly, the raging Middle East war has halted all ships passing in and out of the Arabian Gulf, which would have a dramatic impact on Middle East exports in the short term.

Speaker #3: It remains to be seen how long the large energy markets in Asia can accept their supply of hydrocarbons being choked. The US exporters probably have some slack and room for optimization as we move into April.

Kristian Sørensen: The US exporters probably have some slack and room for optimization as we move into April, but we have limited visibility at the moment. Anyhow, it's obviously not enough to replace the shortfall of volumes from the Middle East in the medium term. If we look through the current fluid and dramatic situation, Saudi Aramco has now started oil production from the Jafurah field, with gas output expected towards the end of this year. Furthermore, the first phase of Qatar's North Field expansions is expected to come online in Q4. In the US, the Permian crude oil production continues to yield more NGLs per barrel of oil produced. In addition to this, more LPG export infrastructure is coming online, enabling continued growth in exports.

Speaker #3: But we have limited visibility at the moment. Anyhow, it's obviously not enough to replace the shortfall of volumes from the Middle East in the medium term.

Speaker #3: If we look through the current fluid and dramatic situation, Saudi Aramco has now started oil production from the Jafura field, with gas output expected towards the end of this year.

Speaker #3: Furthermore, the first phase of Qatar's Northfield expansions is expected to come online in Q4. In the US, the Permian crude oil production continues to yield more NGLs per barrel of oil produced.

Speaker #3: In addition to this, more LPG export infrastructure is coming online, enabling continued growth in exports. In sum, we expect the larger North American region to grow its exports in the mid-single digits over the coming years.

Kristian Sørensen: In sum, we expect the larger North American region to grow its exports in the mid-single digits over the coming years, while Middle East LPG exports are expected to grow in the high single digits. Next slide, please. Let's take a look at the Panama Canal, which continues to play an important role for the VLGC market. Throughout 2025, the canal's neo-Panamax locks frequently saw utilization close to its max capacity, often driven by increased transits from container vessels. This fueled volatility in transit fees and waiting time, which in turn continues to divert VLGCs around South Africa in order to timely reach their destinations. The Middle East situation may increase the traffic in the Panama Canal in the short term as market participants rush to secure cargo and shipping capacity from the US. While in the coming years, we expect usage of the Panama Canal to remain high.

Speaker #3: While Middle East LPG exports are expected to grow in the high single digits. Next slide, please. And let's take a look at the Panama Canal.

Speaker #3: Which continues to play an important role for the VLDC markets. Throughout 2025, the canal's new Panamax locks frequently saw utilization close to its max capacity, often driven by increased transits from container vessels.

Speaker #3: This fuels volatility in transit fees and waiting times, which in turn continues to divert VLGCs around South Africa in order to timely reach their destinations.

Speaker #3: The Middle East situation may increase the traffic in the Panama Canal in the short term, as market participants rush to secure cargo and shipping capacity from the US.

Speaker #3: While in the coming years, we expect usage of the Panama Canal to remain high. An important driver for this is growth in several shipping segments.

Kristian Sørensen: An important driver for this is growth in several shipping segments that to a large extent are being built for increased exports out of the US. This includes VLGCs, of course, but also very large ethane carriers and LNG vessels. Now, it's important to highlight that not all VLGCs and LNG carriers will service the US exports exclusively, so will also be shipping volumes out of the Middle East and other places, and some volumes out of the US will not be sailing through Panama. Regardless, considering the limited capacity of the canal to handle additional transits, we will likely continue to see VLGCs sailing around South Africa in the foreseeable future.

Speaker #3: That to a large extent are being built for increased exports out of the US. This includes VLDCs, of course, but also very large ethane carriers and LNG vessels.

Speaker #3: Now it's important to highlight that not all VLDCs and LNG carriers will service the US exports exclusively. So we'll also be shipping volumes out of the Middle East and other places, and some volumes out of the US will not be sailing through Panama.

Speaker #3: But regardless, considering the limited capacity of the canal to handle additional transits, we will likely continue to see VLDCs sailing around South Africa in the foreseeable future.

Speaker #3: Let's take a look at the current fleet and the order book. And we can see that the fleet has grown in the last three months.

Kristian Sørensen: Let's take a look at the current fleet and the order book, and we can see that the fleet has grown in the last three months and now stands at 421 VLGCs on the water. The order book is currently at 105 VLGCs under construction, with delivery stretching all the way to the end of 2028. We've seen some new orders for new buildings this year, but the contracting remains modest compared to the levels seen in the recent years. While we expect more new buildings to be delivered going forward, it's also worthwhile to keep in mind that 10% of the fleet is older than 25 years of age.

Speaker #3: And now stands at 421 VLGCs on the water. The order book is currently at 105 VLGCs, with construction and delivery stretching all the way to the end of 2028.

Speaker #3: We've seen some new orders for new buildings this year, but the contracting remains modest compared to the levels seen in the recent years. And while we expect more new buildings to be delivered going forward, it's also worthwhile to keep in mind that 10% of the fleet is older than 25 years of age.

Speaker #3: So, to sum up, the underlying fundamentals of the VLGC market are robust in the medium term, but the serious situation in the Middle East is increasing the volatility and uncertainty.

Kristian Sørensen: To sum up, the underlying fundamentals of the VLGC market are robust in the medium term, but the serious situation in the Middle East is increasing the volatility and uncertainty. The US Gulf spot rates are so far benefiting from increased demand for cargoes and ships, while the long-term conflict will probably increase the number of VLGCs seeking employment in the US Gulf and putting pressure on the rate sentiment. The US does not have enough production and exports capacity to meet the shortfall of the Middle Eastern exports, and we'll probably see a rather serious situation unfolding in the consuming markets in Asia unless the exports of hydrocarbons from the Middle East resume rather soon. Assuming the Middle East situation normalizes, the medium-term outlook is underpinned by expanding export infrastructure in the US and increasingly higher NGL content in the Permian oil production.

Speaker #3: The US Gulf spot rates are so far benefiting from increased demand for cargoes and ships, while the long-term conflict long-term conflict will probably increase the number of VLDCs seeking employment in the US Gulf and putting pressure on the rate sentiment.

Speaker #3: The US does not have enough production and exports capacity to meet the shortfall of the Middle Eastern exports. I will probably see a rather serious situation unfolding in the consuming markets in Asia, unless the exports of hydrocarbons from the Middle East resume rather soon.

Speaker #3: Assuming the Middle East situation normalizes, the medium-term outlook is underpinned by expanding export infrastructure in the US and increasingly higher NGL content in Permian oil production.

Speaker #3: At the same time, new gas projects are expected to support LPG exports out of the Middle East in the coming years. As mentioned, the VLDC fleet is now at 421 ships.

Kristian Sørensen: At the same time, new gas projects are expected to support LPG exports out of the Middle East in the coming years. As mentioned, the VLGC fleet is now at 421 ships. The order book is relatively large. The inefficiencies in the VLGC market will define how the order books will be absorbed. Firstly, the neo-Panamax locks in the Panama Canal are operated at or near full capacity. Growth in several shipping segments linked to increased US exports will likely continue to divert VLGCs around South Africa. Secondly, the trade pattern will play a vital role in how much shipping capacity is needed. We have seen new long-haul cargo flows from the US into markets east of Suez.

Speaker #3: The order book is relatively large, and the inefficiencies in the VLGC market will define how the order book will be absorbed. Firstly, the new Panamax locks in the Panama Canal are operated at or near full capacity.

Speaker #3: And growth in several shipping segments linked to increased U.S. exports will likely continue to divert VLGCs around South Africa. Secondly, the trade pattern will play a vital role in how much shipping capacity is needed.

Speaker #3: And we have seen new long-haul cargo flows from the US into markets east of Suez. And thirdly, if you envisage a normalization in the Middle East involving 11 million tons of Iranian LPG exports to be shipped on compliant vessels rather than the shadow fleet which currently counts about 50 VLDCs, you will have a rather bullish outlook, pretty similar to how it would play out in the VLDC tankers market.

Kristian Sørensen: Thirdly, if you envisage a normalization in the Middle East involving 11 million tons of Iranian LPG exports to be shipped on compliant vessels rather than the shadow fleet which currently counts about 50 VLGCs, you will have a rather bullish outlook, pretty similar to how it will play out in the VLCC tankers market. Finally, looking at the paper market at the moment, it's pricing itself around $85,000 per day for the Ras Tanura-Chiba benchmark leg, although the liquidity remains limited. That concludes our market segment. Over to you, Samantha.

Speaker #3: Finally, looking at the paper market at the moment, it's pricing itself around $85,000 per day for the Western Eurashiba benchmark leg, although the liquidity remains limited.

Speaker #3: And that concludes our market segment. Over to you, Samantha.

Speaker #1: Thank you, Christian. And hello, everyone. And thank you for being here with us today. Start with our shipping performance. The fourth quarter of '25 has been a quarter that would deliver above the guidance, with a TCE of a 48,100 per calendar day or 50,300 US dollars per available day.

Samantha Xu: Thank you, Christian. Hello, everyone, and thank you for being here with us today. Start with our shipping performance. The Q4 of 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 market full of uncertainties is a strong testament to our commercial strategy, which build 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.

Speaker #1: 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.

Speaker #1: Such protection provides stability and support when sport 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.

Speaker #1: Looking ahead for Q1 2026, we have fixed a 94% of the available fleet days at an average rate of about 54,000 US dollars per day.

Samantha Xu: 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 include 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 $43,747,900 per day. Altogether, our time charter out portfolio is expected to generate around $197 million. Although the level of rates appear to be slightly lower than 2025, it continues to represent a very healthy level of earnings against an all-in cash break-even of low $20,000. Next slide, please.

Speaker #1: This also index-linked time charter contracts, which could share some spot market upside when the market becomes stronger. For full year '26, we have secured 40% of our portfolio, with fixed rate time charters and FFA hedges.

Speaker #1: At US dollar 43,700 and 47,900 dollars per day. Altogether, our time charter out portfolio is expected to generate around 197 million US dollars. Although the level of rates appear to be slightly lower than 2025, it continues to represent a very healthy level of earnings, against an all-in cash break-even of low 20,000.

Speaker #1: Next slide, please. In Q4, the product services posted a realized gain of 12 million US dollars, reflecting effective risk management in a turbulent market conditions that we experienced.

Samantha Xu: In Q4, the Product Services posted a realized gain of $12 million, reflecting effective risk management in our 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 cost and other expenses, Product Services report a net profit after tax of $23 million for the quarter, with net asset value at $53 million at the end of December, creating good dividend capacity. As we highlighted in previous quarters, these mark-to-market movements, which regularly gives volatility to PNL, are largely driven by the gradual phasing in of our multi-year term contract as reflected in a volatile market.

Speaker #1: At the quarter end, we reported a 33 million US dollars increase in market-to-market on our cargo position, offset by an 18 million US dollars decrease in paper positions.

Speaker #1: After accounting for GNA cost and other expenses, product services reported a net profit after tax of 23 million US dollars per quarter, with net asset value at 53 million US dollars at the end of December, creating good dividend capacity.

Speaker #1: As we highlighted in previous quarters, these mark-to-market movements, which regularly give volatility to P&L, are largely driven by the gradual phasing out of our multi-year term contract, as reflected in a volatile market.

Speaker #1: While the periodic value adjustments are significant, they reflect the delta between the balance sheet dates and will see fluctuations before the positions are realized.

Samantha Xu: While the periodic value adjustments are significant, they reflect the delta between the balance sheet dates and will see fluctuations before the positions are realized. We will continue to report our future trading performance, including mark-to-market, via our quarter end trading result updates. We are pleased to see that the analyst consensus have, in general, included our trading performance. It is also important to note that trading gains and losses are realized across different financial periods. They cannot be extrapolated from past performance, as unrealized positions will vary depending on the period end valuations. The realized trading profit, though, will add to the company's dividend potential and be considered for dividend distribution post year-end, along other factors such as net profit after tax, cash flow, and other commercial considerations.

Speaker #1: We will continue to report our future trading performance, including market-to-market, via our quarter-end trading result updates. We are pleased to see that the analysts' consensus have in general included our trading performance.

Speaker #1: It is also important to note that trading gains and losses are realized across different financial periods. They cannot be extrapolated from past performance, as unrealized positions will vary depending on the period-end valuations.

Speaker #1: The realized trading profit, though, will add to the company's dividend potential and be considered for dividend distribution post-year end. Along other factors, such as net profit after tax, cash flow, and other commercial considerations.

Speaker #1: Our trading model is designed to create value by combining cargo, paper, and shipping positions. With that in mind, we would like to remind you that the reported net asset value does not include the unrealized fiscal shipping position of $26 million, based on our internal valuation.

Samantha Xu: Our trading model is designed to create value by combining cargo, paper, and shipping positions. With that in mind, we would like to remind you that the reported net asset value does not include an unrealized physical shipping position of $26 million based on our internal valuation. In Q4, our average VaR, value at risk, was $3 million, reflecting a well-balanced trading book, including cargo, shipping, and derivatives, even after accounting for the increased term contract volume that is scheduled to start from the end 2026. Going on to our financial highlights. We reported a net profit after tax of $123 million, including a profit of $31 million from BW LPG India, and a $23 million profit from Product Services.

Speaker #1: In Q4, our average VAR—value at risk—was $3 million, reflecting a well-balanced trading book including cargo, shipping, and derivatives. This is even after accounting for the increased term contract volume that is scheduled to start from the end of 2026.

Speaker #1: Going on to our financial highlights, we reported a net profit after tax of $123 million, including a profit of $31 million from BW LPG India, and a $23 million profit from Product Services.

Speaker #1: Profit attributable to equity holders of the company was 104 million US dollars for the quarter. Which translates to an earnings per share of 69 cents.

Samantha Xu: Profit attributable to equity holders of the company was $104 million for the quarter, which translates to earnings per share of $0.69 and an annualized earning yield of 21% when compared against our share price at the end of December. We reported a net leverage ratio of 28.4% in Q4, down from 32.7% at the end of 2024. The reduction was mainly due to lower lease liabilities following the exercise of a purchase option of BW Kizoku and BW Yushi, and principal repayment made in the duration of full year 2025. For Q4, the board declared a dividend of $0.57 per share, representing a 100% payout of our shipping profit for the quarter, beyond the 75% payout ratio of our shipping profit, guided by our dividend policy.

Speaker #1: And an annualized earning yield of 21% when compared against our share price at the end of December. We reported a net leverage ratio of 28.4% in Q4, down from 32.7% at the end of '24.

Speaker #1: The reduction was mainly due to lower lease liabilities, following the exercise of a purchase option of BW Kizuku and BW Yushi. And principal repayment may be in the duration of full year 2025.

Speaker #1: For Q4, the board declared a dividend of $0.57 per share, representing a 100% payout of our shipping profit for the quarter. This is beyond the 75% payout ratio of our shipping profit, as guided by our dividend policy.

Speaker #1: The healthy liquidity and positive outlook of the market supported our wish to pay back to our shareholders. For the period end, our balance sheet reported a shareholders' equity of 1.9 billion US dollars.

Samantha Xu: The healthy liquidity and positive outlook of the market supported our wish to pay back to our shareholders. For the period-end, our balance sheet reported shareholders' equity of $1.9 billion. The annualized return on equity and that on capital employed for Q4 were 26% and 19% respectively. Our 2025 OPEX concluded at $8,800 per day, a marginal reduction than reported in last year. For 2026, we expect our own fleet's operating cash break-even to be about $18,500. Twenty thousand two hundred dollars for the whole fleet, including time charter vessels. The all-in cash break-even is estimated to be $23,400, driven primarily by lower lease repayments and decrease in financing costs. Next slide, please. Finally, let's look at our financing structure and repayment profile.

Speaker #1: The annualized return on equity and that on capital employed for Q4 were 26 and 19%, respectively. Our 2025 OPACs concluded at 8,800 dollars per day.

Speaker #1: A marginal reduction then reported in last year. For '26, we expect our own fleets operating cash break-even to be about 18,500 dollars. And 20,200 dollars for the whole fleet, including time charter vessels.

Speaker #1: The all-in cash break-even is estimated to be 23,400, driven primarily by lower lease repayments and decrease in financing cost. Next slide, please. Finally, let's look at our financing structure and repayment profile.

Speaker #1: As of end Q4, we remained a healthy liquidity position of a 613 million US dollars, consist of a 226 million in cash and 387 million of undrawn credit facilities.

Samantha Xu: As of Q4, we remained a healthy liquidity position of $613 million, consist of a $226 million in cash and $387 million of undrawn credit facilities. This is after voluntary cancellation of two ship financing facilities, including $36 million repayment and $260 million undrawn revolving facilities. This cancellation reduced our funding costs and level of cash break even, further strengthen our financing discipline. Looking ahead, our liquidity stays strong. Repayment profile remains sustainable, with major repayments starts from 2030. On Product Services, trade finance utilization stood at $182 million or 23% of available credit line, leaving ample headroom for future trading needs. With that, I'd like to conclude my updates.

Speaker #1: This is after voluntary cancellation of a two-ship financing facilities, including 36 million US dollars repayment and 216 million dollars undrawn revolving facilities. This cancellation reduced our funding cost and level of cash break-even, further strengthened our financing discipline.

Speaker #1: Looking ahead, our liquidity stays strong, repayment profile remains sustainable, with major repayments starting from 2030. On product services, trade finance utilizations stood at 182 million US dollars or 23% of available credit line.

Speaker #1: Leaving MPO headroom for future trading needs. And with that, I would like to conclude my updates and thank you for listening and give it back to you, Aline.

Samantha Xu: Thank you for listening and give it back to you, Aline.

Speaker #2: Thank you, Samantha. Thank you, Christian. 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.

Aline Anliker: Thank you, Samantha. Thank you, Christian. 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, so 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 Peter has raised his hand, so please proceed, Peter.

Speaker #2: Please note that you have been muted automatically when joining the call, so please press unmute before speaking. I would like to start with the verbal questions first before then moving on to the chat.

Speaker #2: And I can see already that Peter has raised his hand, so please proceed, Peter.

Speaker #3: 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?

[Analyst]: 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 is that now come to a complete halt? Secondly, is there any convoys now planned for other exporters within the Arabian Gulf? If so, what is the war risk premium paid these days? Three simple questions there, Christian.

Speaker #3: And secondly, are there any convoys now planned for other exporters within the Arabian Gulf? And if so, what is the war risk premium being paid these days?

Speaker #3: Three simple questions there, Christian.

Speaker #4: Thanks, Peter. We don't have the full overview of the exports from Iran under the current circumstances, but there are let's say unconfirmed reports that ships are still planned for exporting LPG and being through convoys basically sailing to China.

Kristian Sørensen: Thanks, Peter. We don't have the full overview of the exports from Iran under the current circumstances, but there are, let's say, unconfirmed reports that ships are still planned for exporting LPG and being through convoys, basically, sailing to China. We don't know if this is just a market rumor or if it's actually for real and a fact. Your second question, Peter, what was that again?

Speaker #4: But we don't know if this is just a market rumor or if it's actually for real and a fact. So, and the second question, Peter, what was that again?

Speaker #3: Yeah, well, the first one was more about the Iranian specific questions. And the second one was about the convoys I suppose then for exports.

[Analyst]: Yeah, well, the first one was more about the Iranian specific questions. The second one was about the convoys, I suppose then for other sort of legitimate exporters.

Speaker #4: Yes. Yeah. So we don't there are no concrete news about convoys being established at the moment. So 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 had been convoys with naval escort vessels established, but that is something we have no firm news about at the moment.

Kristian Sørensen: There are no concrete news about convoys being established at the moment. This is something we have seen. If you look historically back to, you know, when the pirate attacks were peaking and also previous wars in the Middle East, there have been convoys with naval escort vessels established. That is something we have no firm news about at the moment.

Speaker #3: Understood. And if sort of you were to do the transit here now, is there insurance to or is it possible to get insurance and what is the war risk premiums paid these days?

[Analyst]: Understood. If you were to do the transit here now, is there insurance to or is it possible to get insurance? What is the war risk premiums paid these days?

Speaker #4: As far as we have been informed, the you won't get ships insured if you pass into the Arabian Gulf through the Strait of Hormuz at the moment.

Kristian Sørensen: As far as we have been informed, the, you won't get ships insured if you pass into the Arabian Gulf, through the Strait of Hormuz at the moment. This is changing from day to day, Peter, so it's hard to give an exact answer to what will be the case tomorrow. For time being, that's something which is difficult to assess. Yeah.

Speaker #4: But this is changing from day to day, Peter. So it's hard to give an exact answer to what would be the case tomorrow. But for the time being, that's something which is difficult to assess.

Speaker #4: Yeah.

[Analyst]: Yeah. Effectively now, the Hormuz is actually closed for LPG vessels, at least, more or less.

Speaker #3: Yeah. So effectively now, the Hormuz is actually closed for LPG vessels at least, more or less.

Speaker #4: 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 to us.

Kristian Sørensen: As far as we can see there are no ships from the conventional fleet shuttling in and out of the Arabian Gulf. Again, what actually happening with the shadow fleet, which is about 50 old ships shuttling between Iran and mainly China, that is unclear to us.

Speaker #3: 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's pretty similar in terms of day rates out of the US and out of the Middle East.

[Analyst]: Understood. Understood. A quick follow-up on on the FFA rates. To what extent would you think that those rates now quoted? We see that it's pretty similar in terms of day rates out of the US and out of the Middle East. In the VLCC market, we've seen some numbers which is, well, from what we hear, not particularly relevant, being very high. Now the FCA market is pricing in some $80,000 plus. Is that also a level in which you can fix ships in the TC market these days?

Speaker #3: But in the BLCC market, we've seen some numbers which is well, from what we hear, not particularly relevant being very high. So now the FFA market is pricing in some 80,000 dollars plus.

Speaker #3: Is that also a level in which you can fix ships in the TC market these days?

Kristian Sørensen: Okay, before the weekend, there were reports about the one-year time charter done in the mid $60,000 per day. So far this week with the current situation, we haven't heard any discussions about any discussions. I think the situation is so fluid at the moment, so it's hard to give an assessment on that. The last done in the market is reportedly in the mid-$50s per day for 12 months.

Speaker #4: Okay. Before the weekend, there were reports about a one-year time shorter done in the mid-50,000 dollars per day. So far, this week with the current situation, we haven't heard any discussions about any discussions.

Speaker #4: And I think the situation is so fluid at the moment, so it's hard to give an assessment on that. But the last one in the market is reportedly in the mid-50s per day for 12 months.

Speaker #3: Okay, that's helpful, Christian. I'll turn it over. Thank you for taking my questions.

[Analyst]: Okay. That's, that's helpful, Kristian. I'll turn it over. Thank you for taking my questions.

Speaker #2: Thank you, Peter. I have Clemont up next. Please, if you unmute yourself.

Aline Anliker: Thank you, Petter. I have Clement up next. Please if you unmute yourself.

Speaker #5: Hi. Good afternoon and thank you for taking my questions. Several US LPG projects have come online recently. You commented on this briefly, but at what do utilization was overall US LPG export infra running prior to the war?

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

Speaker #5: So in other words, to what extent is there, let's say, spare capacity to increase volumes out of the US in the short term?

Speaker #4: Yeah, this is a very good question. And we tried to we discussed this yesterday at the desk, actually. The we believe the some slack capacity to export more volumes if they optimize the berthing, which we have seen they've done before.

Kristian Sørensen: Yeah, this is a very good question. 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 we have seen them done before, for instance, by loading VLGCs instead of mid-size vessels. You basically have a more optimal usage of the jetties and the berth. We don't know exactly whether all the mid-size vessels can be replaced by VLGCs, most likely not. Probably the US has some slack in their export volumes. It's difficult for us to assess exactly because we don't have enough visibility on the April loadings at the moment.

Speaker #4: For instance, by loading VLGCs instead of mid-size vessels. So you basically have a more optimal usage of the jetties and the berth. So we don't know exactly whether all the mid-size vessels can be replaced by VLGCs.

Speaker #4: Most likely not. But probably the US has some slack in their export volumes. But it's difficult for us to assess exactly, because we don't have enough visibility on the April loadings at the moment.

Speaker #4: So it's hard for us to say, but we anticipate some slack to be made available for VLGCs.

Kristian Sørensen: It's hard for us to say, but we anticipate some slack to be made available for VLGCs.

Speaker #5: Makes sense. That's still very helpful. I'll turn it over. Thank you.

[Analyst] (Clement): Makes sense. That's still very helpful. I'll turn it over. Thank you.

Speaker #2: Thank you. Next up would be Choi Woo.

Aline Anliker: Thank you. Next up would be Joy Wu.

Joy Wu: Hi. Yeah, thanks. I have 2 questions. First thing is I would like to understand on the overall fleet, from what we have known until now, is there any vessel getting impacted because of the Iran situation escalation over the weekend? Also looking forward, let's say 2 weeks, is there any vessel that is unable to detour to avoid the high-risk waters, as far as you are aware? Is there, like, any so-called crisis management that has been put in place for all the fleet nearby the risky waters? This is my first question.

Speaker #6: Hi, yeah, thanks. I have two questions. So, the first thing is, I would like to understand, on the overall fleet—from what we have known until now, is there any vessel getting impacted because of the Iran situation escalation over the weekend?

Speaker #6: And also, looking forward—let's 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?

Speaker #6: Yeah. This is my first question.

Kristian Sørensen: Okay. Thanks for the question. If I understand you correctly, you're asking if there are any if ships can be diverted from loading in the Middle East. Is that your question?

Speaker #4: Okay. Thanks. Thanks for the question. If I understand you correctly, you're asking if there are any if ships can be diverted from loading in the Middle East.

Joy Wu: Yeah.

Speaker #4: Is that your question?

Kristian Sørensen: 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 balancing towards the US Gulf for all the 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's up to the charters to decide where they want to employ the ships. If it's a part of the spot fleet, like the one I mentioned, our first ship, which could be available for a spot cargo out of the Middle East is towards the end of March.

Speaker #6: Yeah.

Speaker #4: So 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 balancing to towards the US goal for all the loading areas to seek employment.

Speaker #4: So this is basically down to the decision made for every single vessel in the region, which is not inside the Arabian Gulf. So and it depends if the ships are on time shorter.

Speaker #4: It's up to the charters to decide where they want to employ the ships. If it's a part of the spot fleet like the one I mentioned our first ship which could be available for a spot cargo out of the Middle East is towards the end of March.

Kristian Sørensen: 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 made sense.

Speaker #4: 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.

Speaker #4: If that made sense.

Joy Wu: Yes. Thanks. Sorry to build on top of that. Can you just confirm there is no vessel currently sort of stuck in that risky region near Iran?

Speaker #6: Yes. Thanks. And sorry to build on top of that. Can't just confirm there is no vessel currently sort of stuck in that risky region near Iran?

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

Speaker #4: Are you thinking of our fleet or the VLGC fleet in general?

Joy Wu: Your fleet.

Kristian Sørensen: Yeah.

Joy Wu: include all the, you know, so-called managed fleet per se.

Speaker #6: Your fleet and include all the so-called managed fleet per se.

Kristian Sørensen: Yeah. As mentioned in our highlights, we have two ships which are from our India-flagged fleet, on time charter to Indian charters, which are in the Arabian Gulf, still on time charter, and we have one vessel in dry dock in the region, also India-flagged. You will see that also being mentioned in the highlights page, slide 4.

Speaker #4: Yeah. So if you as mentioned in our highlights, we have two ships which are from our Indian flagged fleet on time shorter to Indian charters, which are in the Arabian Gulf.

Speaker #4: Still on time shorter. And we have one vessel in dry dock in the region. Also Indian flagged. So you will see that also being mentioned in the highlights page slide four.

Joy Wu: Okay, got it. Do we see any serious coming up concerning these three, actually, one in dry dock, one is in the risky zone, sort of? Like, do we foresee any financial impact or any drastic negative developments to these three vessels?

Speaker #6: 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?

Speaker #6: Do we foresee any financial impact or any drastic negative developments to these three vessels?

Kristian Sørensen: Yeah. So far, as I also mentioned, there is minimal negative financial impact only due to a slight delay in the dry docking of the ship in dry dock. We don't have any threats to our ships or crew at the moment. There are no direct threats, but it's an overall view on the market and the situation that is making us avoiding the transits through the Strait of Hormuz.

Speaker #4: Yeah. So far, there is, as I also mentioned, there is minimal negative financial impact only due to slight delay in the dry docking of the ship in dry dock.

Speaker #4: And then we don't have any threats to our ships or crew at the moment. So there are no direct threats, but it's an overall view on the market.

Speaker #4: And the situation that is making us avoiding the transits through the Strait of Hormuz.

Joy Wu: Okay, thanks.

Aline Anliker: Thank you, Joy. Let's move on to John Dixon first before we then have Abhishek. Please, John, go ahead and unmute yourself.

Speaker #6: Okay. Thanks.

Speaker #2: Thank you, Choi. Let's move on to John Dixon first before we then have Abby Scheck. But please, John, go ahead and unmute yourself.

John Dixon: Hello, Christian, Samantha. How are you doing this morning?

Kristian Sørensen: Well, I guess it's afternoon now.

Speaker #7: Hello, Christian. Samantha, how are you doing this morning? Well, I guess I'm wearing Christian, I do have a question. So I've listened to Samantha for a little while, a couple of quarters, and relating to the trading profit that would be eligible for dividend distribution, is that included in y'all's current dividends, or are you guys planning on having your board review that later in the year for dividend distribution?

John Dixon: Christian, I do have a question. I've listened to Samantha for a little while, a couple of quarters. Relating to the trading profit that would be eligible for dividend distribution, is that included in y'all's current dividends? Or are you guys planning on having your board review that later in the year for dividend distribution? I'm just curious to see if I can learn a little bit more how that is considered and when you guys are likely to have that be a part of your dividend distribution.

Speaker #7: I'm just curious to see if I can learn a little bit more how that is considered and when you guys are likely to have that be a part of your dividend distribution.

Samantha Xu: Thanks for the question, John. It's a very good one. Also for following up our previous quarter's earnings as well. Indeed, as we mentioned that our Product Services, basically, they realize the trading result will build on our dividends capacity, and then we would like to look at it to declare once a year post-year end. Specifically for Q4 2025, the $0.50 per share dividend declared by the board is only 100% shipping NPAT. Does not include any contributions from Product Services. However, the Product Services board has already reviewed the dividend proposal and also approved the dividend proposal for Product Services for 2025.

Speaker #2: Thanks for the question, John. It's a very good one. And also for following up our previous quarter's earnings as well. Indeed, as we mentioned, that product services basically, they are realized the trading result will build on our dividends capacity and then we would like to look at it to declare once a year post-year end.

Speaker #2: So, specifically for Q4 2025, the $0.50 per share dividend declared by the Board is only 100% shipping impact. That does not include any contributions from Product Services.

Speaker #2: However, the product services board has already reviewed the dividend 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 distribute to the shareholders accordingly.

Samantha Xu: The approved dividend will subsequently be considered in the future quarters within 2026 and distribute to the shareholders accordingly.

John Dixon: Okay. That basically it would be distributed on a quarterly basis throughout the remainder of the year. Is that what I'm understanding?

Speaker #7: Okay. So that basically, it would be distributed on a quarterly basis throughout the remainder of the year. Is that what I'm understanding?

Samantha Xu: No. It would be forming the overall company dividend capacity. You can imagine...

Speaker #2: No. It would just that has the it would be forming the overall company dividend capacity. You can imagine it as that we will have a bigger base for considering the dividend distribution for the upcoming quarters.

John Dixon: Okay.

Samantha Xu: that we will have a bigger base for considering the dividend distribution.

John Dixon: Sure.

Samantha Xu: for the upcoming quarters.

John Dixon: Okay. All right. I understand that now. Thank you, Samantha. I appreciate the explanation.

Speaker #7: Okay, all right. I understand that now. Thank you, Samantha. I appreciate the explanation.

Samantha Xu: Thanks, John.

Aline Anliker: Thanks, John. Next up, we have Abhishek, please.

Speaker #2: Thanks, John.

[Analyst] (Abhishek): Hi. Good evening. I have 2 questions. One, you mentioned that there are 3 ships which are stuck in the conflict zone. May I know the name of these 3 ships? Second, last year, you raised borrowing for acquisition of new ships, basically, new vessels in India. In the presentation also, we can see that India is a high-growth market for you. Do you plan any further new acquisition of fleet in India this year?

Speaker #6: Thanks, John. So next up, we have Abby Scheck, please.

Speaker #8: 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?

Speaker #8: And second, last year, you raised borrowing for acquisition of new ships basically new vessels in India. So at the presentation also, we can see that India is a high-growth market for you.

Speaker #8: So do you plan any further new acquisition of fleet in India this year?

Kristian Sørensen: Hi. Thanks for the questions. The ships are BW Elm, BW Tyr, and BW Loyalty from the Indian flag fleet. 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 how we can and where we can employ our ships most efficiently to ensure, like, you know, a solid and robust shareholder value creation. It's definitely something we are considering, but it remains to be seen if we decide to do so.

Speaker #4: Hi. Thanks for the question, Steve. The ships are BW Elm, Tier, and Loyalty, from the Indian-flagged fleet. So, when it comes to further expansion of the Indian-flagged fleet, that is something we are considering. It depends also on the employment that we see and how we can and where we can employ our ships most efficiently to ensure a solid and robust shareholder value creation.

Speaker #4: So it's definitely something we are considering, but it remains to be seen if we decide to do so.

[Analyst] (Abhishek): Okay, thanks.

Kristian Sørensen: Yeah.

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

Speaker #8: Okay. Thanks.

Speaker #4: Yeah.

Speaker #2: Thank you. So let's move on to some questions from the chat. We have a question posed by Kevin. Is there an option to delay dry docking to take advantage of current high charter rates?

Kristian Sørensen: Yeah. This is something we're always considering. It should be said that these, you know, immediate spikes that we experience now, for instance, are difficult to plan for. You know, these dry dockings, they 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. Of course, you also need to have available space at the docking yards. The question is, yes, we try to plan around this. Usually, you know, Q1 is the weakest quarter of the year. We had, if you look back in time several years, where the rates are softening considerably in January, February.

Speaker #4: Yeah. So this is something we're always considering. It should be said that this immediate spikes that we experience now, for instance, are difficult to plan for.

Speaker #4: And these dry dockings, they have to take place within a certain time. We can try to optimize depending on the market view and so on, but it also needs to fit into the commercial program.

Speaker #4: And, of course, you also need to have available space at the docking yards. So the question is, yes, we try to plan around this.

Speaker #4: Usually, the first quarter is the weakest quarter of the year. We had, if you look back in time, several years where the rates are softening considerably in January, February.

Aline Anliker: And like-

Kristian Sørensen: This was not the case this time. 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.

Speaker #4: This was not the 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.

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

Speaker #2: Thanks, Christian. Another question from the chat: Has the current war disruption led to higher long-term charter rates?

Kristian Sørensen: So far, we haven't seen that big. Again, this is, you know, very recent developments. There hasn't been any serious talks about time charters as so far.

Speaker #4: So far, we haven't seen that. And again, this is very recent developments. So there hasn't been any serious talks about time charters as so far.

Aline Anliker: Another one from Kevin: Have scrappings increased recently, and will that continue or be delayed in 2026 due to the elevated spot rates?

Speaker #2: And then another one from Kevin. Have scrapings increased recently? And will that continue, or be delayed in 2026 due to the elevated spot rates?

Kristian Sørensen: Well, scrappings is, like you allude to, very much dependent on the underlying freight market. As long as we see, you know, the freight market, operating at the current levels, we don't really see much scrapping activity, if anything at all. You know, these ships, they can technically trade for many more years, after they turn even 30 years of age. Technically, if they are well-maintained, they can still, sail, across the seven seas.

Speaker #4: Yeah. Well, scrappings is like you alluded to very much dependent on the underlying freight market. And as long as we see the freight market operating at the current levels, we don't really see much scrapping activity.

Speaker #4: If anything at all. So, these ships, they 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.

Aline Anliker: The last one from Kevin: Will the 3 ships in the Gulf region of conflict be at risk for lower revenue than currently expected?

Speaker #2: The last one from Kevin. Will the three ships in the Gulf region of conflict be at risk for lower revenue than currently expected?

Kristian Sørensen: For time being, that's not the case. Two of the ships are like mentioned, on time charter in accordance with with their time charter parties. For the ship in dry dock, we'll see when she gets out of the dry dock. We have, you know, we see there are certain needs in the region to employ ships as well. We'll see what happens. It's because the spot market and the freight market is evolving day by day here. So far, no impact as far as we can see.

Speaker #4: For the time being, that's not the case. Two of the ships are like mentioned on time charter in accordance with their time charter parties.

Speaker #4: And for the ship in dry dock, we'll see when she gets out of the dry dock. But we have we see there are certain needs in the region to employ ships as well.

Speaker #4: So, we'll see what happens. But it's because the spot market and the freight market are evolving day by day here. But so far, no impact.

Aline Anliker: Thank you, Christian. There's still some time for some more questions if you either wanna type into the chat or raise your hand. I see one hand up. Carl, if you would like to unmute yourself. Carl Heine, can you hear us?

Speaker #4: As far as we can see.

Speaker #2: Thank you, Christian. There's still some time for some more questions. If you either want to type into the chat or raise your hand. I see one hand up.

Speaker #2: Carl, if you would like to unmute yourself. Carl, Heineck, can you hear us?

Carl Heine: Yes. Yes.

Aline Anliker: Yes.

Carl Heine: Can you hear me?

Aline Anliker: Yes, we can.

Carl Heine: Could you comment a little bit about the capacity expansion in the US Energy Transfer Enterprise Products Partners? I read that it's about the 250,000 and 300,000 barrels a day in new export capacity. Probably not all of it will go on via VLGCs.

Speaker #5: Yep. Yep. Can you hear me?

Speaker #2: Yes, we can.

Speaker #5: Could you comment a little bit about the capacity expansion in the US energy transfer enterprise product partners? How I read that is about the 250 and 300 thousand barrels a day in new export capacity, probably not all of it will go on via VGA.

Kristian Sørensen: Carl, we can't really hear you that well, to be honest.

Carl Heine: You cannot hear me? Hello?

Speaker #4: Carl, we can't really hear you that well to be honest.

Aline Anliker: If you just speak up a bit louder, if that's possible.

Speaker #5: You cannot hear me? Hello?

Carl Heine: 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.

Speaker #2: If you could just speak up a bit louder, if that's possible.

Speaker #5: 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?

Kristian Sørensen: Yeah. 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. Because it's 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 Southeast Asia, which is absorbing more shipping capacity actually than if you sail the milk route from the US through Panama to Northeast Asia, a quick turnaround and back again. I think it's hard on the spot to simulate that exactly, but we can.

Speaker #4: Yeah. This depends on the trade pattern. Like I also mentioned in the presentation, so it's and also how the Panama Canal is congested or not congested in the time ahead.

Speaker #4: So because it's 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 Southeast Asia, which is absorbing more shipping capacity actually than if you sail the Milk Route from the US through Panama to Northeast Asia, a quick turnaround and back again.

Speaker #4: So I think it's hard on the spot to simulate that exactly. But we can sorry, how many ships?

Carl Heine: A high, low number.

Kristian Sørensen: Sorry, how many ships?

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

Speaker #5: No, I said you can just provide a high and a low.

Kristian Sørensen: Sorry, a high number of ships needed for the exports. Is that what you're asking for?

Speaker #4: Sorry, a high number of ships needed for the exports. Is that what you're asking for?

Carl Heine: Yeah, you can just give a spec from low to high.

Kristian Sørensen: Yeah. Are you talking up until 2028, or is it within this year?

Speaker #5: Yeah. You can just give a spec.

Speaker #4: Are you low to high? Yeah. So are you talking up until 2028 or is it within this year?

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

Speaker #5: I was thinking first and foremost this year. But I could get both answers, please.

Kristian Sørensen: Yeah. I need to get back to you on that, exactly, to be honest, because I don't have that number in front of me. I'll get back to you on that when I, when I have looked at the numbers.

Speaker #4: Yeah, I need to get back to you on that, to be honest, because I don't have that number in front of me. So I'll get back to you on that when I have looked at the numbers.

Carl Heine: These two projects, when do you think they will come online in 2026?

Speaker #5: But these two projects, when do you think they will come online in 2026?

Kristian Sørensen: You mean Enterprise, the 2 Enterprise expansions, right?

Carl Heine: Yes, Energy Transfer.

Speaker #4: You mean enterprise the two enterprise expansions, right?

Kristian Sørensen: Yes. Energy Transfer is already ramping up as of 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, it's stacked up on slide number six, isn't it? Yeah.

Speaker #5: Yes. And energy transfer.

Speaker #4: Yes. Energy transfer is already ramping up. As of the beginning of this year, end of last year, beginning of this year, enterprise is expanding.

Speaker #4: The flex capacity first. And then secondly, the LPG-specific capacity, which is later this year. So you will see in our previous investor presentation, we have it stacked up on slide number six, isn't it?

Speaker #4: Yeah.

Aline Anliker: All right. Thank you. Any more questions before we round up? If not, thank you, Christian. Thank you, Samantha. Hold on. I just see another hand. Okay. Well, okay, Let me check. Okay, we have a couple of minutes. Troy, if you would like to unmute yourself, please.

Speaker #2: All right. Thank you. Any more questions before we round up? If not, thank you, Christian. Thank you, Samantha. Hold on. I just see another hand.

Speaker #2: Okay. Well, okay. We have let me check. Okay. We have a couple of minutes. So Troy, if you would like to unmute yourself, please.

Joy Wu: Yes, thanks very much. I make this quick. Going back to the three vessels, Indian flag in the risky zone, can I get the names? I think I heard two names. One is BW Elm, one is BW Loyalty, and what is the dry docking vessel's name?

Speaker #6: Yes. Thanks very much. I make this quick. So going back to the three vessels: Indian flag in the risky zone, can't get the names.

Speaker #6: I think I heard two names. One is Amelia. One is Loyalty. And what is the dry docking vessel's name?

Kristian Sørensen: Yeah. Element Tier and the Loyalty are the ships' names.

Speaker #5: Yeah. So Elementier and the Loyalty are the ships' names.

Joy Wu: Sorry, BW Tyr, BW Loyalty, and one more?

Kristian Sørensen: No, that's the 3 name vessel names.

Speaker #6: Sorry. Elementier, Loyalty, and one more?

Joy Wu: Okay. Okay, thanks.

Speaker #5: No, that's the three vessel names.

Kristian Sørensen: Okay. Thank you.

Speaker #6: Okay. Okay. Thanks.

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

Speaker #4: Okay. Thank you.

Speaker #2: Well, thanks a lot to all our key stakeholders for joining us for today's call. Thank you, Christian. Thank you, Samantha. This will conclude BW LPG's quarter four 2025 earnings presentation.

Speaker #2: 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.