BW LPG Integrated Annual Report 2023
Energy for a
Changing World
We deliver cleaner burning energy to power a more sustainable future
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
About This Report 004
Energy for a Changing World 005
Year in Numbers 007
CEO’s Message 010
Organisational Structure 011
Leadership 012
Fleet and Asset List 019
Our History 020
Our Operating Context 021
Value Creation Model 024
Our Strategy 025
Approach 046
Environment 055
Social 063
Governance 068
Engagements 074
Corporate Governance Report 077
Remuneration Report 087
Board of Directors’ Report 096
Responsibility Statement 098
Financial Statements 099
Performance Metrics 181
ESG Indexes 181
Shipping 027
Trading 033
Infrastructure 035
Financial 039
Share 041
01
Introduction 003
02
Highlights 006
03
We are BW LPG 009
04
Strategy 023
06
Sustainability 045
07
Financial Report 095
08
ESG Report 180
05
Performance 026
Table of Contents
Energy for a Changing World 002Table of Contents
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
About This Report
Energy for a Changing World
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
01 Introduction
Energy for a Changing World 00301 Introduction
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
• About This Report
Energy for a Changing World
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
About This Report
Purpose, Scope and Period
Through this report, we hold ourselves to
transparent reporting standards and share how
we conduct sustainable business operations.
The scope of this report includes offices which
manage our most significant operations, namely
those based in Singapore, Norway and Spain.
Disclosures relating to vessel information
include vessels owned and operated by
BW LPG and our subsidiaries (BW LPG India
and BW Product Services).
Use of This Report
Our 2023 reporting approach reflects our
business strategy and sustainability priorities in
the short to long term. Additional details, past
disclosures and descriptions of our policies and
management systems can be found on our
website via the links contained in this report.
This report should be read in conjunction with
the disclosures on our website.
Reporting Alignment
This report is broadly aligned with the
International Integrated Reporting Council’s
(IIRC) Integrated Reporting Framework and in
accordance to the Global Reporting Initiative
(GRI) Sustainability Reporting Standards. It
includes reference to the United Nations
Sustainable Development Goals (UN SDGs),
Sustainability Accounting Standards Board
(SASB) and the Task Force on Climate-Related
Financial Disclosures (TCFD).
Publication Date
This report is published on 27 March 2024.
A copy of this report and supplementary
documents can be found on our website.
Feedback
BW LPG welcomes any questions or
feedback on this report and can be reached
at investor.relations@bwlpg.com or
esg@bwlpg.com.
Glossary
For a list of common terms used in this report,
visit our website.
Energy for a Changing World 00401 Introduction • About This Report
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
About This Report
• Energy for a Changing World
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
Energy for a Changing World
LPG as a cleaner-burning fuel has a role to play in the just,
orderly, and equitable transition of global energy systems.
BW LPG is well-positioned to uplift communities and capture
market opportunities.
The theme of this year’s report, “Energy for a
Changing World”, reflects the essence of our
commitment to navigate the challenges and
opportunities from a rapidly transforming
global energy landscape. The decarbonisation
momentum in shipping remains strong — from
biofuels and green ammonia ventures, to
ammonia and methanol propelled vessels, they
signal that shipping companies are translating
words into action.
The direction is clear, even if the pace is not.
The role of LPG should be considered within a
broader strategy that includes the adoption of
renewable energy technologies, energy
efficiency measures, and a transition to low-
carbon and zero-emission fuel alternatives.
Transforming global energy systems, especially
in fast-developing economies, can be
challenging. In alignment with the decisions
made at the 28th Conference of the Parties
(COP28) which recognises that transitional
Very Large Gas Carrier BW Leo crosses the Panama Canal.
fuels can play a role in facilitating a just, orderly,
and equitable energy transition, LPG as a
cleaner burning fuel can help ensure energy
security as communities accelerate climate
action and mitigation measures.
BW LPG is well-positioned to ensure that the
energy needs of the present are met as we find
solutions for tomorrow. Our presence across the
LPG value chain, encompassing trading, shipping,
and shore terminal infrastructure, allows us to
create value for shareholders and stakeholders.
What does it mean to deliver energy for a
changing world? At BW LPG, it means taking
concrete steps to reduce our environmental
emissions, accelerating our R&D into new
propulsion and ship technology, and ensuring
we have a corporate strategy that is in tune with
the shifting energy landscape. And most of all,
it means building a sustainable and profitable
business that will endure.
Energy for a Changing World 00501 Introduction • Energy for a Changing World
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
Year in Numbers
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
02 Highlights
Energy for a Changing World 00602 Highlights
BW LPG Integrated
Annual Report 2023
Announced Intention to Work Towards
August 2023
Dual-listing in US
Listed on the Oslo Børs
Years
10
Market Capitalisation
US$1.1 B in 2022 (As of 30 Dec 2022)
(As of 29 Dec 2023)
US$2.1 B
↑
Dividend Payments
Consecutive Quarters
19
Profit After Tax
US$239 M in 2022
US$493 M
↑
Scope 1 GHG Emissions (Whole Fleet)
From 2019 Baseline
6 %
↓
Carbon Intensity Index (Owned and India Fleet)
7.2 CII 2023 Target
6.5 gCO2 / tonne-nautical mile
↓
$
Dividend per Share
US$1.28 in 2022
US$3.46
↑
%
$
Return on Equity
16% in 2022
31 %
↑
$
$
1
*
LPG Terminal *Planned
44 VLGCs
17
Dual-fuel Propulsion Technology
14
On Compliant Fuels
13
Retrofitted with Scrubber Technology
17
Powered by LPG
2 MGCs
Year in Numbers
At BW LPG, we aim to be Best on Water with Cleaner Energy.
Over the year, we made important strides to expand our
presence along the LPG value chain.
Fleet and Assets As of February 2024
Stock Performance
Sustainability
Table of Contents
01 Introduction
02 Highlights
• Year in Numbers
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
Energy for a Changing World 00702 Highlights • Year in Numbers
BW LPG Integrated
Annual Report 2023
Physical LPG Handled
1 M MT in 2022
3.4 M MT
↑
TCE Income
US$568 M in 2022
US$797 M
Spot Exposure
63% in 2022
66 %
Total Cargoes Carried (Owned and India Fleet)
11.7 M MT in 2022
13.9 M MT
↑
Spot TCE / Day
US$46.4 K in 2022
US$73.6 K
TCE / Calendar Day
US$40.6 K in 2022
US$61.6 K
Total Vessels Chartered
26 in 2022
41
↑
Investment in LPG Import Terminal
Announced in 2023
US$10 M
Investment in Downstream Energy Player
Announced in 2023
US$30 M
LTIF
≤0.5 Target (2023)
0.16
Diversity
Nationalities
17
Crew and Onshore Employees
>1,500
Fleet Utilisation
93% in 2022
96 %
↑
Cost Savings From Using LPG as Fuel
US$8 M in 2022
US$11 M
↑
Employees
CO2e Emissions Reduction
On LPG Dual-
fueled Vessels
( )
27,000 MT in 2022
28,800 MT
↑
Year in Numbers
Shipping
Trading Infrastructure
People
Table of Contents
01 Introduction
02 Highlights
• Year in Numbers
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
Energy for a Changing World 00802 Highlights • Year in Numbers
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
CEO’s Message
Organisational Structure
Leadership
Board
Executive Management
Fleet and Asset List
Our History
Our Operating Context
LPG and LPG Value Chain
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
03 We are BW LPG
Energy for a Changing World 00903 We are BW LPG
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
• CEO’s Message
Organisational Structure
Leadership
Board
Executive Management
Fleet and Asset List
Our History
Our Operating Context
LPG and LPG Value Chain
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
CEO’s Message
BW LPG was listed on the Oslo Stock Exchange
in November 2013. In the ten years since then,
we have developed the company from a pure-
play LPG shipping company to include trading
and infrastructure solutions along the value
chain. These achievements were years in the
making, and reflect our approach to business as
a long-term industry player in the LPG sector.
After ten successful years on the Oslo Stock
Exchange, we are now setting sail towards New
York and have started the process to dual list
BW LPG on the New York Stock Exchange. This
will expand our investor base and improve our
visibility in the US capital markets.
In 2023 and early 2024, we managed a number
of smooth changes in leadership. We thank
Martha Bakkevig, Anders Onarheim, Elaine Ong
and Niels Rigault for their contributions. We
welcome Luc Gillet and Sanjiv Misra to the
board, Kristian Sørensen as CEO, and Samantha
Xu as CFO. A special thanks to Anders, who
joined BW LPG as a member of the board in
2013 and led as CEO from 2019 – 2023. The
strategic decisions made during Anders’ tenure
continue to ensure the Company’s market-
leading position.
It has been 10 years since
we listed on the Oslo Stock
Exchange. Our business has
grown and adapted to evolving
market conditions.
To be a sustainable and enduring business,
we must be a profitable one, and one which
also looks after the interests of our partners
and customers. As this year’s report will show,
the Company navigated market volatility well.
Despite global uncertainties, we successfully
maintained high standards of safety, reliability,
and environmental stewardship.
The global energy landscape is changing, and
we are adapting to new market dynamics.
Renewables and alternative clean fuels must
take hold in a significant way if we are to
succeed; and to succeed, consumers, industry
and government must collaborate. In shipping,
we will continue to find ways to reach net zero
carbon emissions by 2050.
Our teams are working hard to realise our
strategy and ambitions. On the commercial
front, we are prepared to capture opportunities
from what will likely be another volatile year
for the LPG segment. On the operational front,
we continue to work towards compliance
with current and upcoming environmental
regulations. Building on our ESG learnings so
far, we will improve our corporate reporting
approach to manage ESG issues and prepare
for future disclosure requirements. And on
the people front, we continue our focus on
Zero Harm and embracing diversity. We are
confident that we will continue to reach new
milestones together.
Kristian Sørensen
Chief Executive Officer
Energy for a Changing World 01003 We are BW LPG • CEO’s Message
BW LPG Integrated
Annual Report 2023
UAE (Dubai) Office*
India (Mumbai) Crewing Office
USA (Houston) Office
Philippines (Manila) Crewing Office
Supporting Centres
BW Product Services
BW LPG India
BW LPG
Kristian Sørensen
CEO and
Interim Head of Commercial
Samantha Xu
CFO
Finance / Investor Relations
Subsidiaries
BW Confidence
Joint Venture
Iver Baatvik
VP
Corporate Development
Prodyut Banerjee
VP
Operations
Knut-Helge Knutsen
VP
Technical
Vision
Best on Water
with Cleaner Energy
Purpose
Delivering Energy
for a Better World
Values
Collaborative Ambitious
Reliable Enduring
*Planned
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
CEO’s Message
• Organisational Structure
Leadership
Board
Executive Management
Fleet and Asset List
Our History
Our Operating Context
LPG and LPG Value Chain
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
Organisational Structure
Our organisation is structured to support execution of our
strategy. We live our values at work; empower employees to take
ownership of the business; and insist on Zero Harm to our team
members, the environment, cargo and vessels.
Energy for a Changing World 01103 We are BW LPG • Organisational Structure
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
CEO’s Message
Organisational Structure
• Leadership
• Board
Executive Management
Fleet and Asset List
Our History
Our Operating Context
LPG and LPG Value Chain
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
Leadership
Andreas Sohmen-Pao →
Chairman of the Board
Andrew E. Wolff →
Non-Executive Director
Luc Gillet →
Non-Executive Director
Board
Sonali Chandmal →
Non-Executive Director
Sanjiv Misra →
Non-Executive Director
Anne Grethe Dalane →
Non-Executive Director
Energy for a Changing World 01203 We are BW LPG • Leadership
BW LPG Integrated
Annual Report 2023
Leadership
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
CEO’s Message
Organisational Structure
• Leadership
• Board
Executive Management
Fleet and Asset List
Our History
Our Operating Context
LPG and LPG Value Chain
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
Andreas Sohmen-Pao
Chairman of the Board
Year of Appointment: 2013 Age: 52
Board Attendance: 100%
Andreas Sohmen-Pao is Chairman of the
Company and BW Group, BW Offshore, Hafnia,
BW Epic Kosan, BW Energy and Cadeler. He is
also Chairman of the Global Centre for Maritime
Decarbonisation and a trustee of the Lloyd’s
Register Foundation. Mr. Sohmen-Pao was
previously Chairman of the Singapore Maritime
Foundation and has served as a non-executive
director of The Hongkong and Shanghai Banking
Corporation Ltd, London P&I Club, Esplanade
Co Ltd, National Parks Board Singapore, Sport
Singapore and the Maritime and Port Authority
of Singapore amongst others. Mr. Sohmen-Pao
graduated from Oxford University in England
with an honours degree in Oriental Studies and
holds an MBA from Harvard Business School.
Andrew E. Wolff
Non-Executive Director
Year of Appointment: 2020 Age: 54
Board Attendance: 100%
Andrew E. Wolff has served on the Board of
Directors since 20 May 2020 as an
independent director. He was most recently
Global Co-Head of the Merchant Banking
Division (“MBD”), Head of MBD International and
Global Co-Head of Private Equity for Goldman
Sachs. He was the Co-Chief Investment Officer
of the flagship Merchant Banking private equity
funds. Mr. Wolff was a member of the European
Management Committee, Corporate
Investment Committee, Infrastructure
Investment Committee, and Co-Chairman of
the Growth Equity Investment Committee. Mr.
Wolff joined Goldman Sachs in 1998 in the
Principal Investment Area and was named
Managing Director in 2005 and Partner in 2006.
He has experience investing across global
markets and has served on the boards of
companies in the United States, Canada,
Argentina, Brazil, Japan, China, Korea, the United
Kingdom, France, Norway and Denmark. Mr.
Wolff earned a BA in Philosophy from Yale
University in 1991 and a JD and MBA from
Harvard Law School and Harvard Business
School, respectively, in 1998.
Energy for a Changing World 01303 We are BW LPG • Leadership
BW LPG Integrated
Annual Report 2023
Leadership
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
CEO’s Message
Organisational Structure
• Leadership
• Board
Executive Management
Fleet and Asset List
Our History
Our Operating Context
LPG and LPG Value Chain
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
Luc Gillet
Non-Executive Director
Year of Appointment: 2023 Age: 65
Board Attendance: 100%
Luc Gillet has served on the Board of Directors
since 15 May 2023 as an independent director.
Mr. Gillet started his career in 1982 with ETPM
and joined Bureau Veritas in 1983 where he held
various management positions. Mr. Gillet joined
TotalEnergies in 2003, he was named Senior
Vice President Shipping in 2008 and served
until 2022. Mr. Gillet currently serves as an
independent director of GTT and Orion Global
Transport France (OGTF). Mr. Gillet is a
graduated engineer from École Nationale des
Techniques avancées (1980) and holds an EMBA
from HEC (1991).
Anne Grethe Dalane
Non-Executive Director
Year of Appointment: 2013 Age: 63
Board Attendance: 100%
Anne Grethe Dalane has served on the Board of
Directors since 21 November 2013 as an
independent director. She is the Chair of the
Audit Committee. Ms. Dalane held various
senior management positions at Yara, Norsk
Hydro in the areas of human resources,
corporate strategy and finance. Her board
experience includes Arendal Fossekompani,
Hafslund, EDB Business Partners, Prosafe and
Petroleum Geo Services. Ms. Dalane is a
certified financial analyst and holds an MBA
from the Norwegian School of Economics.
Energy for a Changing World 01403 We are BW LPG • Leadership
BW LPG Integrated
Annual Report 2023
Leadership
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
CEO’s Message
Organisational Structure
• Leadership
• Board
Executive Management
Fleet and Asset List
Our History
Our Operating Context
LPG and LPG Value Chain
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
Sonali Chandmal
Non-Executive Director
Year of Appointment: 2020 Age: 55
Board Attendance: 100%
Sonali Chandmal has served on the Board
of Directors since 20 May 2020 as an
independent director. She is currently a partner
at A Lamot Incobel & Co, an advisory firm
sourcing, structuring and funding private equity
opportunities and funds in Europe, India and
America. Ms. Chandmal currently serves on the
board of directors and remuneration committee
of Ageas SA/NV, the board of directors and
remuneration committee chair of Ageas
Portugal Grupo and the board of directors, audit
and sustainability committees of Medicover AB,
and the board of directors of Ackermans & van
Haaren SA/NV. She is also on the board of
directors of the Harvard Club of Belgium and
Chapter Zero Brussels. From 1997 to 2017, she
worked at Bain & Company, a leading global
strategy and management consulting firm, at its
offices in San Francisco, London and Brussels.
Prior to that, Ms. Chandmal worked at Robertson
Stephens & Company, an investment bank
specialising in high technology IPOs and M&A.
Ms. Chandmal holds a BA in Economics from
the University of California at Berkeley, and an
MBA from the Harvard University Graduate
School of Business Administration.
Sanjiv Misra
Non-Executive Director
Year of Appointment: 2024 Age: 64
Board Attendance: 100%
Sanjiv Misra has served on the Board of Directors
since 14 February 2024. He is Chairman of
Clifford Capital Holdings and Bayfront
Infrastructure Management Pte Ltd, and is a Non-
Executive Director of Partners Capital Group
and Singapore Symphonia Company Pte Ltd. He
is also Chairman of the Asia Pacific Advisory
Board for Apollo Global Management and
President of Phoenix Advisers Pte Ltd. Mr. Misra
began his investment banking career with
Goldman Sachs & Co in 1986. In 1997, he joined
Citigroup, where he served as the Head of the
Asia Pacific Corporate Bank, CEO of Global
Corporate and Investment Banking Group
(Singapore and Brunei), and Country Officer for
Singapore. He was also the Citigroup Head of
Asia Pacific Investment Banking, and Head of
Equity Capital Markets for Asia-Pacific. Mr.
Misra was previously an independent director at
Olam International, EDBI, OUE Hospitality REIT
Management, Edelweiss Financial Services Ltd,
and the National University Health System,
amongst others. He was a board member and
trustee of the Singapore Management University.
Mr. Misra holds a Bachelor of Arts in Economics
from Delhi University, a Post-Graduate Diploma
in Management from the Indian Institute of
Management, and a Master of Management
from Kellogg School of Management at
Northwestern University.
Energy for a Changing World 01503 We are BW LPG • Leadership
BW LPG Integrated
Annual Report 2023
Leadership
Kristian Sørensen →
Chief Executive Officer and
Interim Head of Commercial
Knut-Helge Knutsen →
Vice President and
Head of Technical
Samantha Xu →
Chief Financial Officer
Iver Baatvik →
Vice President and Head
of Corporate Development
Prodyut Banerjee →
Vice President and
Head of Operations
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
CEO’s Message
Organisational Structure
• Leadership
Board
• Executive Management
Fleet and Asset List
Our History
Our Operating Context
LPG and LPG Value Chain
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
Executive Management
Energy for a Changing World 01603 We are BW LPG • Leadership
BW LPG Integrated
Annual Report 2023
Leadership
Kristian Sørensen
Chief Executive Officer and
Interim Head of Commercial
Age: 47
Kristian Sørensen has over 20 years of
experience in the LPG shipping industry where
he has held several commercial and
management positions. He started his career as
a shipbroker in Lorentzen & Stemoco in 2002
before joining Inge Steensland AS (today
Steem1960) in 2004 as a broker and later
partner and Head of Gas department. From
2010-2013, he was responsible for expanding
and heading its Singapore office. In 2016 he
became CEO of Norwegian broking house
Fearnleys, and also served as Deputy Group
CEO for the Astrup Fearnley Group until 2021,
when he joined Avance Gas as CEO. Kristian
joined BW LPG as Deputy CEO and Head of
Strategy in September 2022. Kristian spent two
years in the Royal Norwegian Navy as a graduate
of the Junior Naval Academy and holds a
“Siviløkonom” degree from the Norwegian
School of Economics (NHH).
Samantha Xu
Chief Financial Officer
Age: 43
Samantha Xu has more than 20 years of
international finance experience in the shipping
and energy sectors. Samantha started
her career with A. P. Moller-Maersk Group
as management trainee, and worked in its
headquarters in Copenhagen, Denmark as
financial controller upon graduation. She led
the expansion of Odfjell Pool expansion in the
Middle East before joining J. Lauritzen Singapore
as its CFO in 2012. In 2019, she joined Royal
Vopak, a leading independent terminal company,
as its Finance Director managing their terminal
portfolio in Asia and the Middle East. Her career
primarily focuses on board governance, risk
management, project investment and M&A.
Ms. Xu holds a Global Executive MBA and a
Corporate Governance Certificate from INSEAD,
and an Accredited Senior Director of Singapore
Institute of Directors.
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
CEO’s Message
Organisational Structure
• Leadership
Board
• Executive Management
Fleet and Asset List
Our History
Our Operating Context
LPG and LPG Value Chain
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
Energy for a Changing World 01703 We are BW LPG • Leadership
BW LPG Integrated
Annual Report 2023
Leadership
Prodyut Banerjee
Vice President and
Head of Operations
Age: 61
Captain Prodyut Banerjee has
more than 18 years of
experience in Global
Operations in the maritime
industry. He has held various
leadership positions with BW
Group since 2005. Prior to
joining BW, he worked with
ExxonMobil for over 15 years,
serving on vessels at sea and
in shore positions in the United
Kingdom. He holds an MBA
from the National University of
Singapore.
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
CEO’s Message
Organisational Structure
• Leadership
Board
• Executive Management
Fleet and Asset List
Our History
Our Operating Context
LPG and LPG Value Chain
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
Knut-Helge Knutsen
Vice President and
Head of Technical
Age: 54
Knut-Helge Knutsen has held
global leadership positions
in the maritime and shipping
industry for the past 20 years.
Before joining BW in 2013, he
was Regional Manager at
Veritas Petroleum Services for
six years, and was with DNV for
11 years where he led various
technical departments related
to ship building in Norway and
South Korea. Mr. Knutsen
currently also holds the role as
Managing Director for BW LPG
Fleet Management AS, is a
member of LIoyds Nordic
Committee and DNV Nordic
Safety Committee. He has a
Master’s degree in Marine
Engineering from the
Norwegian University of
Science and Technology and
Global Business Leadership
qualifications from the IMD
Business School in Switzerland.
Iver Baatvik
Vice President and Head of
Corporate Development
Age: 41
Iver Baatvik has 10 years
of investment banking
background before joining
BW LPG in 2018 working within
the finance and commercial
department. Mr. Baatvik
holds a Master’s Degree in
Economics from the University
of Oslo and a Bachelor’s
degree in Business and
Administration from Pacific
Lutheran University in Tacoma,
Washington.
Energy for a Changing World 01803 We are BW LPG • Leadership
BW LPG Integrated
Annual Report 2023
BW Messina 2017 DSME
BW Mindoro 2017 DSME
BW Malacca 2016 DSME
BW Magellan 2016 DSME
BW Frigg 2016 Hyundai H.I.
BW Freyja 2016 Hyundai H.I.
BW Volans 2016 Hyundai H.I.
BW Brage 2016 Hyundai H.I.
BW Tucana 2016 Hyundai H.I.
BW Var 2016 Hyundai H.I.
BW Njord 2016 Hyundai H.I.
BW Balder 2016 Hyundai H.I.
BW Orion 2015 Hyundai H.I
BW Libra 2015 Hyundai H.I
BW Leo 2015 Hyundai H.I
BW Gemini 2015 Hyundai H.I.
BW Carina 2015 Hyundai H.I.
BW Aries 2014 Hyundai H.I.
BW Kyoto 2010 Mitsubishi H.I.
Name Year Built Shipyard
19 BW LPG
100% Ownership
BW Yushi 2020 Mitsubishi H.I.
BW Kizoku 2020 Mitsubishi H.I.
Gas Zenith 2017 Mitsubishi H.I.
Oriental King 2017 Hyundai H.I.
Doraji Gas 2017 Hyundai H.I.
Berge Nantong 2006 Hyundai H.I.
Berge Ningbo 2006 Hyundai H.I.
Name Year Built Shipyard
7 BW LPG
Time Charter in
BW Pine 2011 Kawasaki S.C.
BW Lord 2008 DMSE
BW Tyr 2008 Hyundai H.I.
BW Loyalty 2008 DMSE
BW Oak 2008 Hyundai H.I.
BW Elm 2007 Hyundai H.I.
BW Birch 2007 Hyundai H.I.
BW Cedar 2007 Hyundai H.I.
Name Year Built Shipyard
8 BW LPG India
52% Ownership
Astor 2023 Hyundai H.I. Product Services
Eco Sorcerer 2023 Hyundai H.I. Product Services
Kaede 2023 Hyundai H.I. Product Services
Gas Venus 2021 Jiangnan Sinogas Maritime
Gas Gabriela 2021 Hyundai H.I. Product Services
Reference Point 2020 Jiangnan Product Services
Clipper Wilma 2019 Hyundai H.I. Product Services
Vivit Altais 2019 Hyundai H.I. Vitol
Vivit Thuban 2019 Hyundai H.I. Vitol
Vivit Fornax 2019 Hyundai H.I. Vitol
Vivit Dubhe 2019 Hyundai H.I. Vitol
BW Tokyo 2009 Mitsubishi H.I. Exmar
Name Year Built Shipyard Participant
12 Operated
As of February 2024
1
*
LPG Terminal *Planned
44 VLGCs
17
Dual-fuel Propulsion Technology
14
On Compliant Fuels
13
Retrofitted with Scrubber Technology
17
Powered by LPG
2 MGCs
Fleet and Asset List
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
CEO’s Message
Organisational Structure
Leadership
Board
Executive Management
• Fleet and Asset List
Our History
Our Operating Context
LPG and LPG Value Chain
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
Energy for a Changing World 01903 We are BW LPG • Fleet and Asset List
BW LPG Integrated
Annual Report 2023
2003
Acquired and
delisted Bergesen
1999
Acquired N&T
Argonaut
1979
Became the largest
independent ship
owner with >300
vessels
1969
Launch of first
VLGC World Chief
1955
World-Wide
Shipping founded
by Sir Y.K. Pao
2023
• Announced
intention to
have dual-listing
in the USA
• Welcomed
seven VLGCs to
the pool and
two MGCs to
the fleet
• Declared
purchase options
for VLGC
BW Messina
and BW Kyoto
• Formed JV “BW
Confidence”
with Confidence
Petroleum
in India
• Signed MOU
to develop an
LPG storage
terminal in Navi
Mumbai, India
• Divested three
VLGCs
1935
Bergesen founded
by Sigval Bergesen
1967
Entry into the dry
bulk market
1970s
Entry into gas
market
1986
Listed on the Oslo
Stock Exchange
Leading owner in LPG, LNG,
VLGC, Product Tanker and
Offshore segments
2008
Acquired APL
2007
• Listed BW Offshore
• Listed BW Gas
• Acquired Yara’s gas fleet
2006
A common identity with BW
2005
Took delivery of five
newbuildings from HHI
2015
• Acquired Aurora LPG
• Took delivery of four
newbuildings from HHI and
DSME
2016
Announced plan to retrofit
VLGCs with pioneering LPG
propulsion technology
2018
• Established BW LPG India
• Took delivery of one
newbuilding from DSME
2017
• Listed BW LPG
• Acquired Maersk Tankers’
VLGC fleet
2013
Took delivery of one
newbuilding from HHI
20142009
Privatised BW Gas
2012
Sold APL and acquired
Prosafe Production
• Launched Product Services
Division
• Took delivery of one
newbuilding from HHI
• Divested two LGCs
2021 2022
• Acquired Vilma Oil’s LPG
trading operations
• All 15 LPG-powered VLGCs
on water
• Divested four VLGCs
• World’s first LPG-powered
VLGC on water
• BW LPG India became
India’s largest VLGC owner
and operator
20202019
• 12 LPG-powered VLGCs on
water
• Signed first transition loan
revolving credit facility and
first sustainability-linked
loan
• Maas Capital acquired
minority stake in BW LPG
India
• Divested three VLGCs
Our History
In 1955, Sir Yue-Kong (Y.K.) Pao bought his first
vessel, a 27-year-old coal-powered freighter
renamed Golden Alpha and founded World-
Wide Shipping. In 2003, World-Wide Shipping
acquired Bergesen, Norway’s largest shipping
company, and in 2005, the business was
re-branded as BW. The LPG segment of the BW
business was listed in 2013. Today, BW LPG
owns and operates the world’s largest fleet of
Very Large Gas Carriers and has a presence in
LPG trading and shore LPG infrastructure.
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
CEO’s Message
Organisational Structure
Leadership
Board
Executive Management
Fleet and Asset List
• Our History
Our Operating Context
LPG and LPG Value Chain
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
Energy for a Changing World 02003 We are BW LPG • Our History
BW LPG Integrated
Annual Report 2023
Our Operating Context
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
CEO’s Message
Organisational Structure
Leadership
Board
Executive Management
Fleet and Asset List
Our History
• Our Operating Context
LPG and LPG Value Chain
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
LPG consists of propane and butane, petroleum gases which are
released during the extraction of crude oil and natural gas or
during the refining of crude oil. Despite being gaseous at ambient
pressure and temperature, propane and butane both liquefy
relatively easily under pressure, refrigeration or a combination
of the two.
LPG is a cleaner energy source compared to
many other fossil fuels and has numerous
applications. The largest consumer of LPG
globally is the retail market at about
200 million metric tonnes per annum. Around
60% of the total consumption of LPG is
represented by its use for transport, heating
or cooking by end-users such as individuals
or businesses. The remaining consumption is
absorbed by large bulk applications such as
the petrochemical industry or small bulk
applications for industrial use.
At BW LPG, we deliver LPG to world markets
with a fleet of 48 LPG carriers, 17 of which
are powered by LPG dual-fuel propulsion
technology. From spot voyages and time
charters to Contracts of Affreightment
(CoAs), our emphasis on safe, flexible, and
reliable service has earned the trust of
leading oil companies as well as trading and
utility companies.
Our touch points within the value chain
typically include export terminals (linked to
upstream pipelines and storage facilities)
and import terminals (linked to downstream
storage and transportation). These vessels are
also used in large-scale maritime storage
projects — often acting as floating terminals.
We are also expanding into downstream
terminal infrastructure.
LPG and LPG Value Chain
Very Large Gas Carrier BW Gemini loading cargo at Enterprise Terminal in Houston, Texas.
Energy for a Changing World 02103 We are BW LPG • Our Operating Context
BW LPG Integrated
Annual Report 2023
Production
Oil and gas production offshore and onshore
Natural Gas Liquids Separation
Oil Refinery Natural Gas Fractionation Plant
Pipelines Rail Gas Car Very Large Gas Carrier
Pressured LPG Storage Tanks Floating Storage Refrigerated LPG Storage Tanks
Storage Facilities Floating Storage Bottling Plant
Propane Dehydrogenation Plant Agricultural Uses Retail Consumers
LPG Bulk Bottle Distribution
Pipelines Floating Storage LPG Bulk Road Tanker
Trading
Petroleum Condensates Methane Propane Butane Ethane Pentane
Upstream Transportation
Refining and Storage
Downstream Transportation
Storage and Bottling
End Users
Distribution
LPG: Propane and butane, which comprise the majority of BW LPG’s cargoes Business sectors where BW LPG is present
Our Operating Context
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
CEO’s Message
Organisational Structure
Leadership
Board
Executive Management
Fleet and Asset List
Our History
• Our Operating Context
• LPG and LPG Value Chain
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
Energy for a Changing World 02203 We are BW LPG • Our Operating Context
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
Value Creation Model
Our Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
04 Strategy
Energy for a Changing World 02304 Strategy
BW LPG Integrated
Annual Report 2023
Business ActivitiesInput (Capital) Output
BW LPG’s core business is in LPG shipping. Our fleet
of Very Large Gas Carriers and Medium Gas Carriers
are built for high-volume long-distance transporta-
tion of LPG. These vessels can also serve as floating
terminals for large-scale maritime storage projects.
Our capabilities include LPG trading, and will also
include LPG shore terminal infrastructure.
Shipping Trading Infrastructure
(Planned)
• Low leverage
• Strong cash flow
• Ample liquidity
Financial
• 46 vessels of which 17 are
LPG-powered
• 5 offices world-wide
Physical
• Brand recognition for quality and
reliability
• Pioneering LPG propulsion
technology and operational
know-how
• Innovative capabilities
Intellectual
• 24% Return on Capital Employed
• 31% Return on Equity
• 21% Net Leverage Ratio
Financial (2023)
• 13.9 M MT cargo carried (Shipping)
• 3.4 M MT cargo handled (Trading)
• 1 LPG storage terminal*
Physical
With LPG, we uplift
communities with cleaner
burning energy. We:
• Power the global economy
and support other industries
• Provide superior shareholder
returns
• Reduce environmental impact
by replacing pollutive fuels
• Inaugural year for trading team
Intellectual
• >1,500 crew and employees
• >80 years of maritime and
shipping experience
• Commercial agility
• Skills, values and industry
insights
Human
• Positive safety record with
0.16 LTIF and 0.16 TRCF
• 11.7% employee turnover in 2023
Human
Strategic and trusted partnerships
with key stakeholders such as
customers, capital lenders,
governments and regulatory
bodies
Social and Relationship
• New JV partner Confidence
Petroleum and Ganesh
Benzoplast
Social and Relationship
As of February 2024*Planned
Value Creation Model
As we aim to grow profitably in the value chain,
we continue to remain focused on our
customers and the environment. A sustainable
business requires a sound strategy and its
focused implementation. Our strategy,
developed over the years, has guided us to
expand our presence in the value chain and
embark on disciplined fleet renewal. This has
led to a strong balance sheet, optimised fleet
profile, successful corporate expansion, and
continued investor interest.
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
• Value Creation Model
Our Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
Energy for a Changing World 02404 Strategy • Value Creation Model
BW LPG Integrated
Annual Report 2023
Corporate
Pillars
ESG
Pillars
Business
Verticals
Material
Topics
• Climate Change
• Emissions and Energy
• Protecting Biodiversity
• Working Environment
• Recruitment, Development
and Retention
• Business Conduct
• Effective Management
• Supply Chain
As we grow and protect our sustainability as a business, we will act for the environment,
uplift communities, and uphold responsible and transparent business practices.
Optimise our environmental actions
as a responsible maritime and
energy stakeholder
Environmental
Protect and advance the interests of
our workforce
Social
Uphold transparency and integrity in
all business transactions
Governance
With Zero Harm as
priority and customer
service in mind
Operational
Excellence
So that BW LPG is a great
place to work and
conduct business with
Values in Action
To ensure future access
to vital funding and
investments
Superior
Shareholder Returns
To ensure our long-term
sustainability as a
business
Profitable Growth
Along Value Chain
Leverage shipping and value chain
assets to build our trading portfolio
Our Trading Arm
Product Services
Deliver LPG to world markets safely
and sustainably, and prepare for
future ship design and technology
Our Core Business
Shipping
Capitalise on owned assets and
capture margins down the value
chain
Our Value Chain Assets
Infrastructure
Best on Water with Cleaner Energy
Vision
Delivering Energy for a Better World
Purpose
Our Strategy
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
Value Creation Model
• Our Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
As the world’s largest owner and operator of
Very Large Gas Carriers delivering LPG to world
markets, we are keenly aware of its environmental
benefits and its importance in powering a lower-
carbon future. Because LPG is cleaner-burning,
cheap and easy to transport and use, it can
play an important role in improving the lives
of people who do not have access to more
advanced grid-scale energy solutions. BW can
contribute towards meeting the energy needs
of communities in the present, even as we find
solutions for tomorrow. We will run our business
sustainably and return value to shareholders,
reduce emissions from operations, and increase
positive impact on communities.
Our strategy is to build across three business
verticals of shipping (which remains our core
business), trading, and LPG terminal infrastructure
and capture value across the value chain. We are
building on our experience and leadership
position in LPG shipping to expand our business
into trading and infrastructure and capture value
across the value chain. This will enable us to
build more stable returns for our investors and
energy for our customers — when and where it is
needed most. With growing capabilities in the
transportation, trading and distribution of this
versatile fuel, we are proud that our growth will
also help power a better tomorrow. Even as we
adapt to changing market conditions, our values
remain the same — we will be collaborative,
ambitious, reliable, and enduring in all that we do.
Energy for a Changing World 02504 Strategy • Our Strategy
BW LPG Integrated
Annual Report 2023
05 Performance
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
Shipping
A Strong Year for LPG
Shipping
Record Rates for our
Optimised Fleet
2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the Shipping
Business
Infrastructure
LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge as
a Business Opportunity
Moving Downstream
Financial
Share
Market Capitalisation and
Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Energy for a Changing World 02605 Performance
BW LPG Integrated
Annual Report 2023
Shipping
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
• Shipping
• A Strong Year for LPG
Shipping
Record Rates for our
Optimised Fleet
2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the Shipping
Business
Infrastructure
LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge as
a Business Opportunity
Moving Downstream
Financial
Share
Market Capitalisation and
Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
A rapidly transforming global energy landscape requires a nimble
approach as we navigate forward. The future of LPG remains
bright. We continue to expand our presence along the value
chain, strengthening our leading position in shipping while seizing
opportunities in related upstream and downstream activities.
A Strong Year for LPG Shipping
It was generally expected that 2023 would
soften compared to 2022 due to an increased
supply of vessels and a less certain demand
outlook. However, contrary to expectations,
2023 ultimately proved to be the best year ever
recorded for the VLGC market. Strong growth
in US production and stable domestic
consumption of LPG in the US, coupled with
increased demand in the Far East and market
inefficiencies, led to the record-wide arbitrage
in pricing between the US and the Far East.
Disruption to transits through the Panama
Canal was the main driver behind market
inefficiencies, reducing the number of transits
and increasing voyage tonne-miles. As a result,
the VLGC market experienced significant
volatility, with the largest historical daily moves
on all three Baltic routes taking place in 2023.
LPG-powered Very Large Gas Carrier BW Volans.
Energy for a Changing World 02705 Performance • Shipping
BW LPG Integrated
Annual Report 2023
Shipping
Record Rates for our Optimised Fleet
Our shipping business delivered the highest
historical daily TCE on record in Q1 2023 with
US$60,900 per available day; a record which
was remade in Q4 with US$76,000 per available
day and a fleet utilisation of 97%.
Our fleet remains robust with 46 vessels
despite active sales over the year. We
welcomed seven VLGCs to the pool in 2023
and two MGCs for the Product Services team.
The close collaboration between our technical
and operations teams and crew onboard our
LPG-powered vessels allowed us to capitalise
on our retrofit programme. As the spread
between compliant fuel and LPG widened, our
cost savings over the year exceeded US$11
million. We are realising the environmental,
operational and financial benefits of LPG
propulsion, and LPG remains a cost-effective
and readily available fuel.
For 2024, 19% of our fleet has been fixed under
time-charters, with an average daily rate of
US$41,500. We have balanced our TC in and out
commitments for 2024 and secured a US$23
million profit. Additionally, 14% of our days are
hedged with derivatives at an average of
US$56,500 per day. Taking a slightly longer
view of the VLGC market, we see a significant
slowdown in fleet growth in 2024, with 21
newbuildings expected for delivery over the
year. Taking into consideration the substantial
LPG export expansions in both the US and the
Middle East, coupled with shipyards being
booked until 2027, we anticipate promising
opportunities in the LPG shipping sector.
Very Large Gas Carrier BW Balder in Sweden.
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
• Shipping
A Strong Year for
LPG Shipping
• Record Rates for our
Optimised Fleet
2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the
Shipping Business
Infrastructure
LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge
as a Business Opportunity
Moving Downstream
Financial
Share
Market Capitalisation
and Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Energy for a Changing World 02805 Performance • Shipping
BW LPG Integrated
Annual Report 2023
US$ / Day
VLGC Spot Rates (2023)
180,000
140,000
100,000
80,000
40,000
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
20,000
60,000
120,000
160,000
Ras Tanura – Chiba
Houston – Chiba
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
• Shipping
A Strong Year for LPG
Shipping
Record Rates for our
Optimised Fleet
• 2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the Shipping
Business
Infrastructure
LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge as
a Business Opportunity
Moving Downstream
Financial
Share
Market Capitalisation and
Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
2023 in 4 Charts
Shipping
VLGC spot rates have been exceptionally strong,
and despite extreme volatility, they have
remained at historical highs throughout 2023.
The market rates peaked in September,
reaching close to US$170,000/day. This surge
was primarily driven by a robust product
market, coupled with a tight supply/demand of
VLGCs, resulting in ships being fixed further out
on the curve and pushing rates up.
The Panama Canal faced challenges as the
authorities announced further restrictions to
canal transits in late October due to low water
levels in the Gatun Lake. This prompted most of
the fleet to reroute via Suez or Cape of Good
Hope, increasing voyage length by up to 50%.
The extended routes let to an increase in tonne-
miles and caused disruptions to the trading
and pricing patterns in the market, widening
the US-Far East arbitrage and pushing freight
rates further up.
US inventory levels are highly seasonal, with
inventory draws during the winter season
reducing export volumes and putting downward
pressure on LPG prices. Spot rates were at
US$120,000/day by the end of the year.
01
VLGC Spot Rates Exceptionally Strong During 2023
Energy for a Changing World 02905 Performance • Shipping
BW LPG Integrated
Annual Report 2023
1200
1000
800
600
400
200
0
16%
11%
6%
1%
-4%
Share of Voyages
through Suez / COGHNo. of Voyages
US Gulf — Far East Route Selection
2020 2021 2022 2023
Around COGH
Through Panama Canal
2.9%
3.3%
11.9%
4.0%
Through Suez Canal
COGH and Suez Canal (Share of Total)
Shipping
During 2023, the number of voyages through
the Suez Canal or around the Cape of Good
Hope increased from 32 voyages in 2022 to 135
voyages in 2023. In 2023, the share of voyages
through the Suez Canal or around Cape of
Good Hope was 11.9% of the total, representing
a significant increase from the 2022 levels
of 3.3%.
02
US Gulf — Far East Route Selection — Significant increase in alternative
voyages replacing Panama Canal (Main Route for VLGCs)
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
• Shipping
A Strong Year for
LPG Shipping
Record Rates for our
Optimised Fleet
• 2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the
Shipping Business
Infrastructure
LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge
as a Business Opportunity
Moving Downstream
Financial
Share
Market Capitalisation
and Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Energy for a Changing World 03005 Performance • Shipping
BW LPG Integrated
Annual Report 2023
6.0
4.0
2.0
1.0
0.0
3.0
5.0
Million Metric Tonnes
US LPG Exports
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2022 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
• Shipping
A Strong Year for LPG
Shipping
Record Rates for our
Optimised Fleet
• 2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the Shipping
Business
Infrastructure
LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge as
a Business Opportunity
Moving Downstream
Financial
Share
Market Capitalisation and
Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Shipping
US propane exports grew 14.8% in 2023
versus 2022.
The increased export growth was predominantly
driven by a surge in oil and gas production
in the US, coupled with consistent domestic
consumption and high inventories. Notably,
the Natural Gas Liquids (NGL) content in
gas production surpassed the previous
year, contributing to the overall increase in
export figures.
This can be explained by the increasing gas-to-
oil ratio in the Permian region. For every barrel
of oil that is produced, about half a barrel of
NGL is now produced, representing a tripling
since 2018.
US exports also benefited from a year with weak
domestic consumption due to a mild winter
and high inventories driven by a warm summer
that reduced the need for early crop drying.
03
Strong Growth in US LPG Exports
Energy for a Changing World 03105 Performance • Shipping
BW LPG Integrated
Annual Report 2023
Number of VLGCs VLGC Count at Year End
Fleet Summary
50 500
400
300
200
100
0
-100
-200
-300
40
30
20
10
-10
0
Delivered VLGCs Recycled VLGCs VLGCs on Order Book Recycling Candidates VLGC Count at Year End
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
141
3
2
13
8
35
44
21
10
17
21
18
17
40
22
13
20
29
143
156
164
199
241
260
265
282
303
321
338
378
396
404
417
440
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
• Shipping
A Strong Year for LPG
Shipping
Record Rates for our
Optimised Fleet
• 2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the Shipping
Business
Infrastructure
LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge as
a Business Opportunity
Moving Downstream
Financial
Share
Market Capitalisation and
Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Shipping
The global VLGC fleet experienced its most
substantial growth since 2016, adding 40
vessels during 2023. The fleet is quite young,
with about 60% of the VLGCs being 10 years or
younger and 15% being 20 years or older. All
newbuildings delivered since 2021 have been
delivered with dual-fuel engines that can run on
both conventional fuel as well as LPG. The
global LPG-powered VLGC fleet numbered
80 as of the writing of this report.
Despite concerns about the newbuilding order
book delivered in 2023, the increased shipping
capacity during the year was absorbed by high
LPG exports, driven by increased demand
growth in US and Middle East export volumes,
along with disruptions in the Panama Canal and
global fleet inefficiencies.
While an influx of new vessels typically exerts
downward pressure on market balance and
freight rates, the rise in tonnage will likely
be partially offset by export growth, fleet
inefficiencies, and new regulations. Additionally,
limited yard capacity is driving up newbuilding
prices, leading to prolonged yard delivery times.
Newbuilding orders are currently scheduled for
delivery from 2027.
04
2023 Fleet Overview
Energy for a Changing World 03205 Performance • Shipping
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
Shipping
A Strong Year for LPG
Shipping
Record Rates for our
Optimised Fleet
2023 in 4 Charts
• Trading
• A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the Shipping
Business
Infrastructure
LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge as
a Business Opportunity
Moving Downstream
Financial
Share
Market Capitalisation and
Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Trading
The Product Services division was established in February 2019
to offer customers a low-risk and fully integrated product
delivery service and support BW LPG’s core shipping business.
2023 was BW Product Services’ inaugural year as an expanded
trading division with the successful integration of two teams.
Product Services purchases LPG and delivers it directly to customers,
enabling customers to secure LPG supply at the final point of consumption
without the need to handle shipping and associated risks. Product Services
facilitates utilisation of the BW LPG fleet as it charters vessels to deliver
LPG to customers, and also connects the shipping business to a new pool
of customers who otherwise do not engage in transportation in their
supply chain.
Some members of the Product Services Team in the Madrid office.
A Profitable Inaugural Year as an Expanded Trading Team
As an expanded Product Services team, we
scaled our offering to provide even better
service to customers while continuing to
operate within disciplined capital requirements
and defined risk thresholds. In 2023, BW Product
Services generated a gross profit of US$26
million and handled approximately 3.4 million
metric tonnes of LPG.
Energy for a Changing World 03305 Performance • Trading
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
Shipping
A Strong Year for LPG
Shipping
Record Rates for our
Optimised Fleet
2023 in 4 Charts
• Trading
• A Profitable Inaugural Year as
an Expanded Trading Team
• Complementing the Shipping
Business
Infrastructure
LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge as
a Business Opportunity
Moving Downstream
Financial
Share
Market Capitalisation and
Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Trading
Complementing the Shipping Business
In addition to these core accomplishments,
close communication and collaboration with
colleagues in the shipping business have led to
more commercial opportunities and enhanced
fleet utilisation. The team’s extensive market
experience and relationships with LPG suppliers
and consumers adds another dimension to
BW LPG’s overall corporate evaluation of the
LPG market.
These achievements were obtained against the
backdrop of a volatile macro environment with
challenges from higher freight rates, increased
Panama Canal transit challenges and lower-
than-expected petrochemical margins and thus
demand. Value at Risk (VAR) remained relatively
stable across the year, and the portfolio was
well-balanced between cargoes, shipping, and
derivatives from a trading book perspective.
As BW Product Services focused on securing
profit and generating sustainable returns, it also
advanced plans to expand its presence in key
markets, broaden its platform and trading
portfolio. It expanded into the mid-size space
with the addition of two MGCs and secured two
time-charter contracts which allowed the team
to tap into new markets beyond the VLGC
segment. The team also renewed its US Gulf
equity commitment and secured a term
contract in the Middle East, diversifying
business exposure and mitigating Panama
Canal risks. It also opened an office in the US,
generating additional income from domestic
market trades, and improving information
flow from further up the supply chain with
insights on the upstream drivers influencing
the export market.
Throughout the year, the team also juggled the
logistics that came with integration — office
relocations, new business processes, internal
audits, and the tailoring and implementation of
a new leading-edge risk management system, a
multi-tenant SaaS solution covering physical
and trading workflows with integrated market
data, sophisticated analytics and real-time
reporting, while merging existing accounting
and invoicing platforms.
Very Large Gas Carrier BW Balder conducting ship-to-ship operations with LPG Carrier Epic St. Martin.
Energy for a Changing World 03405 Performance • Trading
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
Shipping
A Strong Year for LPG
Shipping
Record Rates for our
Optimised Fleet
2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the Shipping
Business
• Infrastructure
LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge as
a Business Opportunity
Moving Downstream
Financial
Share
Market Capitalisation and
Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Infrastructure
We have generated strong and stable returns from our Indian
subsidiary, and are ready to accelerate growth. In concurrent
strategic moves amounting to over US$40 million, we formed
a Joint Venture (JV) with Confidence Petroleum and agreed
to invest in the company; and signed an agreement to develop
and operate an LPG onshore import terminal in Mumbai.
BW LPG has been shipping LPG to world
markets, including India, for decades. In 2017,
anticipating increased demand for LPG in the
world’s most populous country, BW LPG
established a local presence, BW LPG India, in
Chennai. From modest beginnings, BW LPG has
grown to become India’s largest owner and
operator of India-flagged and India-managed
VLGCs, accounting for 30% of the supply of LPG
into India and 20% of the time-charter market.
In 2023, we laid the foundation to transform our
presence in India from a pure-play LPG shipping
company to an integrated LPG player with
portfolios in LPG trading, shipping, onshore
terminal infrastructure and downstream
distribution. BW LPG and Confidence Petroleum
established a 50/50 JV named “BW Confidence
Enterprise Private Limited” (“BW Confidence”)
in India, to explore investment opportunities
in the LPG supply chain. Based in Mumbai, the
JV intends to source and deliver LPG from the
international market to meet Confidence and
India’s growing LPG import needs.
From left to right: Shri Rishi Pilani (Chairman and Managing Director, Ganesh Benzoplast), Mr Kristian Sørensen
(CEO, BW LPG), Shri Nitin Khara (Chairman, Confidence Group).
Energy for a Changing World 03505 Performance • Infrastructure
BW LPG Integrated
Annual Report 2023
India LPG Imports Will Continue to Grow
Strong population growth, a clean energy focus and infrastructure upgrades
will continue to drive the growth in LPG imports
Access to LPG Has Increased
with Government Initiatives
LPG Demand Estimated To Grow by 28%
to Reach Over 39 Million mts by 2033
High LPG
Penetration Rate
Young and
Growing
Population
Government’s
Clean Energy
Drive
Infrastructure
Enhancements
Across Terminals,
Pipelines and
Distribution
Growing
LPG Import
Demand
LPG Demand (million mt)LPG Penetration Rate
60%
40%
20%
0%
120%
100%
80%
10
0
40
30
20
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
Shipping
A Strong Year for LPG
Shipping
Record Rates for our
Optimised Fleet
2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the Shipping
Business
• Infrastructure
• LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge as
a Business Opportunity
Moving Downstream
Financial
Share
Market Capitalisation and
Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Infrastructure
LPG: A Story of Growth Benefitting Millions
India is the second largest LPG consumer
globally. Strong government support for the use
of LPG as a cleaner source of fuel for heating
and cooking has translated into an impressive
LPG penetration rate of over 99% for its 1.4
billion people.
Long-term market trends together with
continued government support for the use of
LPG are expected to support growing domestic
demand. For example, residential sector
demand is expected to grow at a compound
annual growth rate (CAGR) of 3.3% to reach 34
million tonnes in 2030 — surpassing China to
become the world’s largest cooking gas
LPG residential sector market. Government
investments into new pipelines, port expansions
and storage facilities, the construction of
new propane dehydrogenation plants in the
petrochemical sector, as well as a nascent
industrial LPG sector also bode well for
potential LPG import demand.
With such a strong demand growth story,
investments are needed to ensure the
supply chain infrastructure can support
import volumes.
Pradhan Mantri Ujjwala Yojana (PMUY) or “Prime Minister’s Lightening
Scheme” was launched in 2016. The scheme aims to make cleaner cooking
fuels such as LPG available to rural and low-income households due to
environmental and health concerns from the use of traditional pollutive
fuels such as firewood, coal, and processed cow manure. Since its launch,
this ambitious scheme has benefitted millions of Indians.
Energy for a Changing World 03605 Performance • Infrastructure
BW LPG Integrated
Annual Report 2023
LPG End Users in India Share of LPG Industrial End Users
Retail/Domestic China Japan South KoreaTransportation Industrial
8%2% 31% 39% 54%90%
~30% of a Typical Round Voyage
is Spent Waiting at Anchor
Idle (33%)
Discharge (6%)
Sailing (56%)
Loading (5%)
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
Shipping
A Strong Year for LPG
Shipping
Record Rates for our
Optimised Fleet
2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the Shipping
Business
• Infrastructure
• LPG: A Story of Growth
Benefitting Millions
• A Supply Chain Challenge as
a Business Opportunity
Moving Downstream
Financial
Share
Market Capitalisation and
Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Infrastructure
A Supply Chain Challenge as a Business Opportunity
Developments of LPG import infrastructure
have not kept pace with the strong growth in
domestic demand for LPG.
The first investment for BW Confidence
promises to ease capacity constraints in the
LPG supply chain. BW LPG will invest
approximately US$10 million to jointly develop
and operate a new LPG onshore import terminal
at Jawaharlal Nehru Port Association Port (JNPT)
in Navi Mumbai, India. The Agreement, signed
between BW Confidence and Ganesh
Benzoplast, will fund the construction of the
largest cryogenic LPG storage terminal facility at
JNPA Port. BW Confidence will own 55% of the
JNPA terminal facility.
Sources: Anfil Gas, report issued in November 2022
India’s LPG ports are among
the world’s busiest and
most congested
Long waiting time and lack of terminal
ullage is adding to cost and delaying
supply of LPG into India
Energy for a Changing World 03705 Performance • Infrastructure
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
Shipping
A Strong Year for LPG
Shipping
Record Rates for our
Optimised Fleet
2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the Shipping
Business
• Infrastructure
LPG: A Story of Growth
Benefitting Millions
• A Supply Chain Challenge as
a Business Opportunity
• Moving Downstream
Financial
Share
Market Capitalisation and
Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Infrastructure
When completed, it will be able to fully offload
the latest fourth-generation VLGCs (93,000
cbm) in a single discharge operation. It will also
have the potential to connect to the Uran
Chakan pipeline to ensure competitive and
efficient supply of LPG into other states.
Construction work on the terminal will
commence in 2024. The terminal is expected
to be fully operational in 2027, and has the
potential to significantly ease marine traffic
into the State of Maharashtra, boosting the
competitiveness of importing LPG by
reducing costs.
Moving Downstream
Our expansion into LPG import terminal facilities
in India reflects our belief in the potential of the
domestic LPG market. To further boost our
growth trajectory, we have agreed to invest
approximately US$30 million in Confidence
Petroleum through a preferential allotment of
equity shares. These shares will constitute
8.50% of the issued and paid-up share capital
of Confidence Petroleum on a fully diluted basis,
and BW LPG has the option to increase its
shareholding. The investment will support
Confidence Petroleum as it expands its capacity
in LPG downstream assets. This transaction was
completed on 16 February 2024.
Confidence Petroleum was established in 1993 and has evolved into one of
India’s premier domestic private players. Part of the Confidence Group, it
has a large presence in the industrial, automobile, and domestic retail
spaces, including India’s largest privately held LPG bottling company which
operates ~65 bottling plants and a network of ~250 auto LPG dispensing
stations nationwide.
Energy for a Changing World 03805 Performance • Infrastructure
BW LPG Integrated
Annual Report 2023
Return on Equity
16% in 2022
31 %
↑
Total Dividends Declared
Since Listing
US$970 M in 2022
US$1.4 B
↑
Earnings per Share
US$1.68 in 2022
US$3.53
↑
Financial
2023 2022
Financial Results US$ M US$ M
Time charter equivalent income - Shipping 797 568
Gross Profit / (loss) - Product Services 26 (3.5)
Net Profit 493 239
Balance Sheet US$ M US$ M
Vessel net book value 1,457 1,520
Total assets 2,520 2,560
Total cash and cash equivalents 288 285
Total borrowings and lease liabilities 570 706
Shareholders’ equity 1,586 1,597
Cash Flows US$ M US$ M
Operating 513 505
Investing 69 113
Financing (645) (522)
Adjusted free cash flow 564 658
Available liquidity (including undrawn facility) 457 463
Share Performance US$ US$
Earnings per share 3.53 1.68
Dividends per share 3.46 1.28
Per Day Costs US$ US$
Vessel calendar days 1 12,940 13,988
OPEX per day 2 8,100 8,400
Ratios % %
Return on Equity 31 16
Return on Capital Employed 24 12
Net Leverage Ratio 21 23
1 Includes Finance leased vessel
2 Only for owned and bare-boat vessels
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
Shipping
A Strong Year for
LPG Shipping
Record Rates for our
Optimised Fleet
2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the
Shipping Business
Infrastructure
LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge
as a Business Opportunity
Moving Downstream
• Financial
Share
Market Capitalisation
and Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Energy for a Changing World 03905 Performance • Financial
BW LPG Integrated
Annual Report 2023
US$ Million
500
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
126
256
326
24
-45 -72
274
244
186
239
493
400
300
200
100
0
-100
US$ Million Percentage
500
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
400
300
200
100
0
60%
50%
40%
30%
20%
34%
30%
40%
54% 54%
55%
50%
44%
35%
23%
21%
111 70 94 81 57 50 94 56 130
221
162
150
125
143
245
210
165
200
230
323
242
295
Undrawn Facility
Cash Net Leverage Ratio
US$
3.50
3.00
2013
0.15
1.91
1.46
0.09
0.85
0.84
0.56
1.28
3.46
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
2.50
2.00
1.50
1.00
0.50
0
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
Shipping
A Strong Year for LPG
Shipping
Record Rates for our
Optimised Fleet
2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the Shipping
Business
Infrastructure
LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge as
a Business Opportunity
Moving Downstream
• Financial
Share
Market Capitalisation and
Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Financial
Net Profit After Tax
Available Liquidity and Net Leverage Ratio
Dividends per Share
Ready for all market conditions with another year of profitability and growth.
Highest liquidity and lowest net leverage ratio since listing.
Generating unprecedented dividend capacity under current market conditions.
Energy for a Changing World 04005 Performance • Financial
BW LPG Integrated
Annual Report 2023
Market Capitalisation
US$1.1 B in 2022
US$2.1 B
↑
$
Av. Shares Traded Daily
Per Day (2023)
354 K
Av. Value of Traded Shares
Per Day (2023)
US$4.1 M
$
Shares Issued
140.0 M
Shares Outstanding
131.1 M
Shares in Treasury
8.9 M
Shares Issued
Shares Outstanding
Shares in Treasury
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
Shipping
A Strong Year for LPG
Shipping
Record Rates for our
Optimised Fleet
2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the Shipping
Business
Infrastructure
LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge as
a Business Opportunity
Moving Downstream
Financial
• Share
• Market Capitalisation and
Turnover
• Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Share
In 2023, the VLGC sector generated unprecedented dividend
capacity. We are pleased to have returned more than 71% of
our earnings in dividends since our listing in 2013.
Market Capitalisation and Turnover
Shares at a Glance
BW LPG is listed on the Oslo stock exchange
under the ticker code BW LPG. As of 31
December 2023, there were 140.0 million shares
issued and 131.1 million shares outstanding with
8.9 million shares held in treasury. At the end of
As of 31 December 2023
2023, BW LPG’s market capitalisation stood at
US$2.1 billion; up from US$1.1 billion at the end of
2022. During 2023, an average of 354,000 BW
LPG shares were traded daily, equivalent to
0.3% of outstanding shares.
Energy for a Changing World 04105 Performance • Share
BW LPG Integrated
Annual Report 2023
400
350
300
250
200
150
100
50
0
US$ / Day
Share Price Development, Dividends Reinvested + OSEBX (2023)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
BW LPG
OSEBX
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
Shipping
A Strong Year for LPG
Shipping
Record Rates for our
Optimised Fleet
2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the Shipping
Business
Infrastructure
LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge as
a Business Opportunity
Moving Downstream
Financial
• Share
Market Capitalisation and
Turnover
Shares at a Glance
• Share price Development
and OSEBX (Indexed)
• Buy-back Programme
• Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Share
Share price development and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
A share buyback programme was initiated in
May 2023. The programme aimed to purchase
up to six million common shares for a maximum
of US$50 million. In June and July 2023, we
purchased 1.3 million shares at an average price
of NOK 106.90 (US$10.30) per share, amounting
to NOK 140.0 million (US$13.5 million).
In 2023, global equity markets continued to
grapple with high inflation and rising interest
rates, as well as ongoing conflicts in Ukraine and
in the Middle East. Nevertheless, inflation rates
across the developed world trended
downwards as growth remained resilient.
Europe continued to pivot its energy sources
away from Russia, and China opened additional
PDH plants, which supported continued growth
in production and exports of LPG from the
United States.
2023 was a particularly strong year for shipping
stocks, with LPG companies emerging as the
In an earlier share buyback initiative between
December 2021 and April 2023, we purchased a
total of 7.3 million shares at an average price of
NOK 59.40 (US$6.20) per share, amounting to
NOK 435.0 million (US$45.5 million).
top-performing segment. BW LPG’s total
shareholder return was 162% during the year
(assuming reinvestment of dividends). BW LPG’s
share outperformed the OSEBX significantly, the
latter returning 10%, and delivered our second-
best performance on OSEBX during 2023.
This strong market enabled BW LPG to return
significant capital to shareholders during the
year. At the start of 2023, BW LPG’s share price
stood at US$7.89. With a total of US$3.46 per
share in dividends declared during the year,
this equated to a dividend yield of 44% for
shares bought at the beginning of 2023.
Energy for a Changing World 04205 Performance • Share
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
Shipping
A Strong Year for LPG
Shipping
Record Rates for our
Optimised Fleet
2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the Shipping
Business
Infrastructure
LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge as
a Business Opportunity
Moving Downstream
Financial
• Share
Market Capitalisation and
Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
• Dividend Policy
• Dividend Payment History
• Dividend Information
Top 20 Shareholders
Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Share
Dividend Policy
Dividend Payment History
Dividend Information
The dividend policy was revised in Q3 2023
to reflect the core shipping nature of
our company.
BW LPG provides a quarterly dividend payout.
The dividend payout is based on Shipping’s Net
Profit After Tax (“Shipping NPAT”) and company
Since BW LPG’s initial public offering in 2013, we
have returned approximately US$1.4 billion to
shareholders in total dividends. This equates to
US$10.6 per share, and an accumulated payout
leverage, adjusted for Product Service’s
performance and anticipated cash and capital
requirement. The company aims for a payout
ratio of 50% of Shipping NPAT, which will be
enhanced to 75% and 100% of Shipping
NPAT when net leverage is below 30% and
20% respectively.
ratio of 71% of the total earnings per share (EPS)
since our IPO price of NOK47 (~US$7.80) per
share. Accumulated EPS excludes all vessel
impairment / write-backs to date.
Period (Impairment)
/ Writeback
(US$ ‘000)
Earnings
(US$ ‘000)
Number
of Shares
Outstanding
(‘000)
EPS
(US$)
EPS
(Adjusted)
(US$)
Dividend
per Share
(US$)
Payout
Ratio
(%)
Share Price at
End of Period
(US$)
Annualised
Dividend Yield
(%)
2023 — 469,957 133,034 3.53 3.53 3.46 98 14.83 23
2022 1,470 227,396 133,381 1.68 1.67 1.28 77 7.89 16
2021 31,901 184,821 138,951 1.33 1.10 0.56 51 5.74 10
2020 8,200 243,854 138,682 1.76 1.70 0.84 49 6.86 12
2019 37,995 273,840 138,983 1.97 1.70 0.85 50 8.41 10
2018 (33,500) (71,400) 139,697 (0.51) (0.27) — — 2.98 —
2017 (4,552) (42,688) 141,777 (0.30) (0.27) — — 4.71 —
2016 (144,147) 24,279 136,577 0.18 1.23 0.09 7 4.20 2
2015 — 323,967 133,071 2.43 2.43 1.46 60 8.30 18
2014 — 254,570 136,064 1.87 1.87 1.91 102 7.05 27
2013 56,347 124,739 136,276 0.92 0.50 0.15 30 9.51 3
Energy for a Changing World 04305 Performance • Share
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
Shipping
A Strong Year for LPG
Shipping
Record Rates for our
Optimised Fleet
2023 in 4 Charts
Trading
A Profitable Inaugural Year as
an Expanded Trading Team
Complementing the Shipping
Business
Infrastructure
LPG: A Story of Growth
Benefitting Millions
A Supply Chain Challenge as
a Business Opportunity
Moving Downstream
Financial
• Share
Market Capitalisation and
Turnover
Shares at a Glance
Share price Development
and OSEBX (Indexed)
Buy-back Programme
Share Price Performance
Dividend Policy
Dividend Payment History
Dividend Information
• Top 20 Shareholders
• Analyst Coverage
06 Sustainability
07 Financial Report
08 ESG Report
Share
Top 20 Shareholders As of 31 December 2023
Analyst Coverage
No. Name No. of Shares % of Shares Issued
1 BW Group Limited 48,407,126 34.58%
2 Folketrygdefondet 10,022,916 7.16%
3 BW LPG Ltd* 8,926,105 6.38%
4 State Street Bank and Trust Comp 3,290,036 2.35%
5 Clearstream Banking S.A. 1,927,805 1.38%
6 The Bank of New York Mellon 1,851,145 1.32%
7 JPMorgan Chase & Co 1,786,143 1.28%
8 JPMorgan Chase & Co 1,731,106 1.24%
9 Nordnet Bank AB 1,695,023 1.21%
10 Citibank, N.A. 1,684,014 1.20%
11 State Street Bank and Trust Comp 1,679,815 1.20%
12 J.P.Morgan Securities PLC 1,516,586 1.08%
13 Verdipapirfondet Alfred Berg Gamba 1,343,508 0.96%
14 State Street Bank and Trust Comp 1,308,241 0.93%
15 UBS Switzerland AG 1,287,161 0.92%
16 The Northern Trust Comp, London Br 1,124,739 0.80%
17 The Bank of New York Mellon SA/NV 1,027,819 0.73%
18 The Bank of New York Mellon SA/NV 979,795 0.70%
19 Avanza Bank AB 920,278 0.66%
20 Verdipapirfondet KLP Aksjenorge IN 828,718 0.59%
* Shares held in Treasury (Source: Euronext Securities)
No. Company Analyst Email
1 ABG Sundal Collier Petter Haugen petter.haugen@abgsc.no
2 Arctic Securities Lars Østereng lars.østereng@arctic.no
3 Clarksons Securities Frode Mørkedal frode.mørkedal@clarksons.com
4 Cleaves Securities Peter Michael Christensen pmc@cleaves.no
5 DNB Markets Jørgen Lian jor[email protected]
6 Fearnley Securities Øystein Vaagen o.vaagen@fearnleys.com
7 Kepler Cheuvreux Anders Redigh Karlsen akarlsen@keplercheuvreux.com
8 Pareto Securities Eirik Haavaldsen eirik.haavaldsen@paretosec.com
9 Skandinaviska Enskilda Banken (SEB) Frederik Ness fr[email protected]
Energy for a Changing World 04405 Performance • Share
BW LPG Integrated
Annual Report 2023
06 Sustainability
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Energy for a Changing World 04506 Sustainability
BW LPG Integrated
Annual Report 2023
Environment
Material Topic
• Climate Change
Responsible Transition
Material Topics
• Emissions and Energy
• Protecting Biodiversity
Environmental Impact
Management
Key Targets
• By 2030, we will not have any newbuilding that cannot
achieve net-zero emissions during its lifetime
• BW LPG Fleet Towards Net Zero carbon emissions by 2050
Key Targets
• All owned vessels to attain “C” or better rating under CII
• Average LPG dual fuel uptime above 85%
• Achieve overall net positive savings in fuel from weather routing
• 100% compliance with the Ballast Water Management
convention
• 100% compliance with all MARPOL conventions
• Zero oil spills at sea
• 100% of all ship recycling projects to be done with shipyards
certified to ISO 30000 and Hong Kong Convention
Optimise our
environmental actions as
a responsible maritime
and energy stakeholder
Commitment
Social
Material Topic
• Working Environment
Conducive Workplace
Material Topic
• Recruitment, Development
and Retention
Talent Management
Key Targets
• Diversity of nationalities, with ±15% variance in employee gender
• Zero cases of discrimination and harassment
• Zero crew, employee and contractor fatalities while at work
• Whole fleet LTIF ≤0.5, TRCF ≤1.5
Key Targets
• Invest in training, upgrading and upskilling programmes
• Have ≥2 interns/trainees in our industry exposure programme
• Develop opportunities to work between offices
Protect and advance the
interests of our workforce
Commitment
Governance
Material Topics
• Business Conduct
• Effective Management
• Supply Chain
Operational Excellence
Uphold transparency and
integrity in all business
transactions
Commitment
Key Targets
• Actively promote awareness at sea and in offices for zero
tolerance to bribery, facilitation payments and corruption
• Host online and onsite campaigns to promote Anti-Bribery and
Anti-Corruption (ABAC) awareness
• Reinforce compliance with all applicable regulatory frameworks
• Full compliance with international maritime regulations,
as well as international and regional laws
• Deliver new data management platform and select
strategic projects
• Expand internal IT standards, and enhance data protection
and handling capacity
• In collaboration with BW Group and BW affiliates, we will
make a combined effort to contract an ESG provider platform
for auditing of all suppliers
Approach
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
• Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
At BW LPG, we deliver energy for a changing
world, safely and sustainably. In order to do so,
we must ensure that we focus on ESG issues
that matter most to us and our stakeholders.
We conduct double materiality assessments on
a regular basis to identify these ESG issues or
material topics.
These material topics guide how we
operationalise our strategy (see page 25 and
our website here), the initiatives we organise
throughout the year, and the targets we set
ourselves. All these will help ensure that we
build a sustainable and profitable business
while ensuring energy security for communities
and facilitating a just, orderly and equitable
cleaner-energy transition.
Energy for a Changing World 04606 Sustainability • Approach
BW LPG Integrated
Annual Report 2023
Board of Directors 1
Main responsible body
Audit Committee 2
Assess and monitor
BW LPG Company 4
With in-house multi-disciplinary ESG Team
Executive Management 3
Environment Social
Material Topics
• Working Environment
• Recruitment, Development
and Retention
Governance
Material Topics
• Business Conduct
• Effective Management
• Supply Chain
Nomination
Committee
Remuneration
Committee
1. Oversees strategies, risks,
initiatives and reporting
2. Monitors strategy and
reviews ESG material topics
and initiatives at least
annually
3. Oversight of strategic
priorities, trends, regulations
and identified risks to
mitigate and secure
opportunities that support
our ESG priorities
4. Develop and execute ESG
strategy, providing periodic
progress reports to
management on E, S and G
material topics
Material Topics
• Climate Change
• Emissions and Energy
• Protecting Biodiversity
Approach
Our ESG Governance structure is embedded in
our corporate governance structure to ensure
that our organisation operates in a responsible
and sustainable manner.
The Audit Committee assesses and monitors
the Company’s ESG strategy, supervising the
initiatives taken and its effects on the business,
environment, and society. The Executive
Management Team is accountable for our
sustainability programmes. All discussions
related to our sustainability priorities and
actions are reviewed by the Board of Directors
who oversee how we manage our material
topics as defined in our sustainability strategy.
Our ESG stewardship is guided by industry
guidelines and our corporate policies that are
integrated into our everyday operations and
applies to all crew and employees, contractors,
and operating assets.
BW LPG’s ESG (Environmental, Social, and Governance)
governance structure is a robust framework that embodies the
principles of transparency, accountability, and ethical conduct.
ESG Governance Structure
Read more →
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
• Approach
• ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Energy for a Changing World 04706 Sustainability • Approach
BW LPG Integrated
Annual Report 2023
Sustainability Standards, Frameworks and Reporting
Read more →
Approach
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
• Approach
ESG Governance Structure
• Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
BW LPG supports the United Nations’ (UN)
Sustainable Development Goals (SDGs) which
cover a wide spectrum of environment and
social issues. UN SDG considerations are
integrated into our investment and decision-
making processes. They also influence how we
respond and adapt to changes in the market
and society.
The Task Force for Climate-related Disclosures
(TCFD), Sustainability Accounting Standards
Board (SASB), and Global Reporting Framework
(GRI) form the basis of future mandatory
reporting requirements such as the IFRS —
International Sustainability Standards Board
Standards and European Union Corporate
Sustainability Reporting Directive (CSRD).
To this end, we are actively performing gap
analyses of our ESG practices and disclosures.
Our ESG Index outlines our reporting against
recognised ESG standards and frameworks that
guide our understanding and reporting of ESG
related disclosures. Content indexes related
to our disclosures for financial year ending 31
December 2023, are available in the ESG Report.
Crew posing in front of an LPG deck tank.
Energy for a Changing World 04806 Sustainability • Approach
BW LPG Integrated
Annual Report 2023
Strategic and External
Risks associated with global markets and economy,
geopolitical stability, climate, decarbonisation, cyber
and data security.
Regulatory Compliance
Risks associated with i) ethical behaviour of
employees and third parties; ii) security of sensitive
information; and iii) laws and regulations, including
climate-related regulations, sanctions and
anti-bribery laws.
Commercial and Operational
Risks related to events occurring during planning
and execution of business operations. This includes
but is not limited to cargo and asset loss or damage,
counterparty default, crew injury, or environmental
damage.
Financial
Risks relating to volatility of financial markets,
including increase in interest rates, financial stress,
counterparty risks and tax exposure.
Strategic and External
The Executive Management reviews assessment
of risks to ensure that the intended and actual
business direction are reflected in corporate strategic
planning which is presented and endorsed by the
Board of Directors.
Regulatory Compliance
Internal Audit and Compliance teams assess and
updates a quarterly compliance and internal audit
report for presentation to the Audit Committee.
Commercial and Operational
Incidents and near misses are reviewed by business
units and Management to ensure that root causes are
comprehensively analysed. Suitable corrective
actions are planned and implemented.
Financial
Executive Management actively manages risks with
guidance and input from the Board of Directors.
Strategic and External
Addressed by business strategies managed through
company’s annual strategy review.
Regulatory Compliance
Regular monitoring and mandatory awareness
training, compliance reviews, legal due diligence,
and internal audits.
Commercial and Operational
Control measures are incorporated in operations
and insurance planning, with ongoing monitoring
during execution.
Financial
Hedging exposures with financial instruments such as
forex forward contracts, freight derivatives, interest
rate and bunker swaps.
Boundary
Management
Responsibility
Approach
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
• Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
• Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Risk management is fundamental to our decision-making
process as it determines how we plan for and react to risks
related to our corporate strategy, material topics, preventable
incidents from operations, and unexpected events.
01 Identification
Risks are identified in the course of business operations and added into our risk universe.
Risk Management
Read more →
Energy for a Changing World 04906 Sustainability • Approach
BW LPG Integrated
Annual Report 2023
Approach
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
• Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
• Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
02 Assessment
Risks are assessed to understand probability of occurrence and impact to business.
03 Recording
Risks are documented, prioritised and assigned to impacted departments.
04 Mitigation
Mitigation plans are prepared, translated into strategic priorities and implemented.
05 Monitoring
Risks are monitored in the course of business and operations.
06 Reporting
Quarterly review and reporting to Board of Directors on effectiveness of risk strategies.
Every year, a comprehensive risk assessment
exercise is undertaken to assess the key risks
faced by BW LPG through discussions with key
department heads on risks that could impact
our strategic objectives. These risks are
The findings are utilised as an input in
identifying the top risks for the company, with
each risk analysed with the Executive
The adequacy of current mitigating actions are
evaluated by the various business units, where
Besides this annual process, risks are regularly
identified, and best practices are shared on our
The results of the assessment are presented
to the board as a component of the annual
strategy development process where the
Group’s risk profile is reviewed and guidance
assessed based on their potential financial
impact, likelihood of occurrence in the short
(0 – 2 years), mid (3 – 5 years) and long
(> 5 years) term, and the effectiveness of the
controls in place to mitigate them.
Management. Some of these top risks directly
or indirectly correlate with our significant
ESG topics.
gaps identified will be closed by improving
measures or implementing of new measures.
internal communications platforms for crew
and employees to reference.
is provided on mitigation plans to ensure
sufficiency of risk management actions
and controls.
Energy for a Changing World 05006 Sustainability • Approach
BW LPG Integrated
Annual Report 2023
Approach
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
• Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
• Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Top risks identified as having a potential to substantively
influence our business and operations
Category Risk Area Climate-related
Considerations
Mitigating Strategy
Macroeconomic
and Market
• Risks from geopolitical
tensions can impact trade
and supply chains.
• Challenges associated
with entering new
infrastructure markets.
• Risks from mistiming
market cycles when
buying or selling assets.
• Global clean energy
transition may impact
LPG supply chain and
LPG demand.
• Global VLGC fleet size
can fluctuate due to
regulatory changes,
shipping inefficiencies
and new build orders.
• Unprecedented weather
changes such as
unusually long droughts
can add market
volatility and increase
counterparty exposures.
• Expand into trading and
value chain assets.
• Review and optimise
contracts.
• Improve market
understanding.
• Optimise operations and
supply chain.
Regulatory
• Growing industry-
related compliances
and business regulatory
demands.
• We must address
additional compliance
requirements as we enter
new markets.
• Impact from new global
ESG regulations.
• Onerous emissions
reporting requirements.
• Additional climate-
related clauses in
charter-hire agreements.
• Increased costs from use
of fossil-based bunkers
due to levies and
limitations.
• Reduced service capacity
due to slow-steaming.
• Early retirement of older
inefficient assets.
• Increase in charter-
hire charges to cover
rising operational costs
and investments in
technology.
• Provide training and
support on compliance
requirements and
regulatory changes.
• Build IT systems that can
manage regulatory
changes.
• Ensure accountability
from all business units.
Enterprise Risk Management (ERM) Risks 2023
Energy for a Changing World 05106 Sustainability • Approach
BW LPG Integrated
Annual Report 2023
Approach
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
• Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
• Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Category Risk Area Climate-related
Considerations
Mitigating Strategy
Human Capital
• Challenges from more
complex businesses and
operations, and from
entry into new markets.
• Loss of qualified staff to
competitors.
• We need qualified staff
with specialised
competencies as shipping
technologies evolve.
• Extreme weather is a
safety concern for crew.
Failure to address
concerns can impact
operations and our licence
to operate.
• Enhance our knowledge
by working with external
experts.
• Retain talent with a
positive work
environment, by
emphasising diversity and
inclusion, and by offering
competitive
remuneration.
• Promote collaboration.
IT and Cyber
• IT infrastructure
challenges, including
adapting to evolving
technology and use of
utilise data for compliance,
risk management, and
decision-making.
• The increased use of
artificial intelligence (AI)
raises concerns about
potential security
challenges and cyber risks.
• Rapid technological
developments can
outpace our ability to
harness new information,
resulting in inefficiencies
and non-compliance with
regulations.
• Equipment may have to
be retired prematurely,
causing waste and
incurring higher capital
expenditure.
• We must be assured of
data integrity and
competence with new
reporting requirements.
• Optimise and improve
data input processes by
streamlining and
digitalising operations.
• Bolster in-house IT
expertise to improve
systems and data
management.
• Conduct routine IT
controls and security
testing, and provide
training to foster
awareness of
cybersecurity measures
and use of AI.
Financial
• Higher trading volumes
can increase earnings
volatility.
• Unpredictable market
fluctuations can impact
profitability.
• Capital lenders may
reduce financing and
investments in shipping in
favour of non-fossil based
sectors.
• Higher liquidity risk
exposure and potential of
downward asset repricing.
• Increased cost of
borrowing from declining
investor base, and failure
to comply with
sustainability benchmarks.
• Conduct daily reviews
and monitor positions to
guarantee the availability
of an adequate liquidity
buffer and compliance
with risk limits.
• Perform stress tests to
assess potential financial
impacts, considering
base and worst-case
scenarios.
Energy for a Changing World 05206 Sustainability • Approach
BW LPG Integrated
Annual Report 2023
Input
1
Stakeholder Survey and Engagement Enterprise Risk Assessment
Assessment
2
Input and feedback were collected to understand the concerns
and impacts of ESG topics from key stakeholders’ perspective:
• Investors
• Lenders
• Customers
• Crew and Employees
• Suppliers
• Other (Auditors + Marine
Community)
Environmental and Social Impact
All business units assessed the risks and opportunities faced by
BW LPG in the short, medium and long term.
Combining the annual enterprise risk management process with
the stakeholder materiality assessment ensures congruency
between business aspirations and ESG.
Business (Financial) Impact
Validation
3
Cross referenced with industry and market trends, regulations,
ESG ratings and recognised frameworks/standards.
Validation by BW LPG Executive Management.
Results — Identification of Material Issues to Prioritise
4
Importance to Stakeholders
Environmental and Social Impact
Importance to Business
Financial Impact
High
Low High
Emissions and Energy
Protecting Biodiversity
Responsible Products
and Services
Climate Change
Health and Safety
Working Environment
Recruitment,
Development
and Retention
Community Engagement and Impact
High Materiality Mid Materiality Low MaterialityEnvironment Social Governance
Anti-Bribery and Anti-Corruption
Effective Management
Corporate Governance
Business Resilience
Supply Chain
Management
IT Management
Approach
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
• Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
• Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
We prioritise our ESG topics based on a
four-step double materiality approach, and
we are guided by global reporting standards
and frameworks as well as stakeholder input.
This approach enables us to identify, address,
and report on matters where BW LPG may
significantly impact society and the
environment, and where these issues may
present risks or opportunities to our business.
Materiality
Read more →
Energy for a Changing World 05306 Sustainability • Approach
BW LPG Integrated
Annual Report 2023
Approach
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
• Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
• Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
The 2023 double materiality assessment
identified eight material topics for BW LPG.
These topics are elaborated and updated
regularly on our website.
Upon review by the Executive Management, the
material topics were presented to and endorsed
by the Audit Committee and directionally
supported by the Board of Directors.
Explanation of identified material topics and issues.
Supply Chain Management
Manage third-party sustainability
related issues and product
sourcing
Working Environment
Ensure an equitable, diverse and
inclusive workplace that respects
human rights
Anti-Bribery and Anti-Corruption
Activities that inhibit or oppose
bribery or corruption in the
operations of a company
Business Resilience
Ensure a sustainable business
model with adequate measures
to support future-proofing the
company
Climate Change
Strategy for a just transition,
innovation, and management
of climate change issues
Community Engagement
and Impact
Management of effects on local
communities
Corporate Governance
High standards of reporting and
governance structures
Emissions and Energy
Manage energy efficiency and fuel
consumption, greenhouse gas and
toxic emissions
Health and Safety
Health, safety and welfare
assurance for onshore staff, crew
and contractors
IT Management
Manage internal systems and data
Operational Excellence
Provide high levels of service and
maintain good relationship
Protecting Biodiversity
Impact of business operations
on biodiversity
Recruitment, Development
and Retention
Provide growth opportunities,
training and fair workplace
packages
Responsible Products
and Services
Alternative service offerings
that will benefit society and the
environment
ESG Topics
More details on governance over our ESG
material topics is available on sustainability
strategy and governance. For each material
topic, action plans and targets are set with
policies and clear governance structure put in
place to ensure accountability.
Energy for a Changing World 05406 Sustainability • Approach
BW LPG Integrated
Annual Report 2023
Upgraded Fleet
to LGIP Propulsion
Fleet Renewal Programme
Next Gen VLGC
Refining
Operational Excellence
BW LPG Towards
Net-Zero
Full Fleet on
Green Fuel
Introduce
Green Fuel
Energy
Reduction
Initiatives
Net CO2e Emissions
0
2020 2025 2030 2035 2040 2045 2050
Decarbonisation Roadmap
Net CO2e Emissions
(Existing Fleet)
Net CO2
e Emissions
(Next Gen VLGC)
Responsible Transition
Environment
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
• Environment
• Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
To commit to decarbonisation is to commit to a sea change
in how we operate. At BW LPG, we are walking the talk —
planning a long-term roadmap that not only protects the
interests of our shareholders, but also positions us to seize
opportunities from the global clean energy transition.
We are committed to a proactive climate
management strategy, addressing risks from
extreme weather events in our operations
and supply chain. Through advanced risk
assessments, we fortify operations, prioritise
asset resilience with sustainable practices,
integrating climate considerations into
investment decisions. With shipping at the
core of our business activities, the
Decarbonisation Roadmap sets out
milestone targets and initiatives we are
working towards for our fleet.
Material Topic
Climate Change
Read more →
UN SDG
Goal 7: Affordable and Clean Energy
Goal 13: Climate Action
Stakeholders
Crew, Employees, Customers, Suppliers,
Lenders, Government, Regulators
Energy for a Changing World 05506 Sustainability • Environment
BW LPG Integrated
Annual Report 2023
Progress
• Revised the company’s decarbonisation roadmap
to incorporate concrete milestones, aligning to the
revised IMO 2023 GHG strategy
• Established an Ammonia Task Force to explore
potential opportunities in the segment for next
generation VLGCs and commercial opportunities
• Continued to explore investment opportunities
in new technology and alternative fuels for
net-zero emissions
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
• Environment
• Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Environment
Material Topic
Climate Change
Read more →
Actions 2023 Targets
2024 Targets
• Commitment to achieve IMO’s Initial GHG emission
reduction goals
• By 2030, we will not have any newbuilding that
cannot achieve net-zero emissions during its lifetime
Decarbonisation Transition Plan
Climate Change Management
• By 2030, we will not have any newbuilding that
cannot achieve net-zero emissions during its lifetime
• BW LPG Fleet Towards Net Zero carbon emissions
by 2050
Policies and Guidelines → Sustainability Strategy and Governance → Risk Management →
Read More
Energy for a Changing World 05606 Sustainability • Environment
BW LPG Integrated
Annual Report 2023
We remain committed to our near-term emission goals. Following the sale of some vessels within our fleet, we have
updated our short-term emission goals to align with the current owned and India fleet. Further updates on our
progress will be available after verification with class is completed as part of the IMO Data Collection System (DCS)
and EU Monitoring, Reporting and Verification (MRV) process.
Short-term Emission Targets
Carbon Intensity Indicator (CII) Target*
* Aligned with IMO GHG CII Targets Against 2019 Baseline
BW LPG Fleet Towards Net-Zero Carbon Emissions
Long-term Emission Targets
2023
Carbon
5 %
↓
7.16
2024
Carbon
7 %
↓
7.01
2025
Carbon
9 %
↓
6.85
2026
Carbon
11 %
↓
6.70
UN SDG
Goal 13: Climate Action
Goal 14: Life Below Water
Goal 15: Life on Land
Stakeholders
Crew, Employees, Customers, Suppliers,
Lenders, Government, Regulators
Environment
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
• Environment
Responsible Transition
• Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
As we deliver LPG to world markets, we work hard to reduce
direct and indirect greenhouse gas emissions from
operations. This way, we are supporting the global clean-
energy transition in a way that is sustainable for the planet.
Environmental Impact Management
A responsible transition starts with our
actions now. Reducing emissions and
increasing energy efficiency of our current
business activities and assets contribute
to the success of our long-term goal
to decarbonise.
Practical and operational energy
management initiatives, combined with
investments to upgrade and digitalise our
fleet — which included the pioneering move
to retrofit 15 of our VLGCs with LPG dual-fuel
propulsion technology — are helping to
reduce our footprint in phases.
Material Topic
Emissions and Energy
Read more →
Energy for a Changing World 05706 Sustainability • Environment
BW LPG Integrated
Annual Report 2023
Progress
• Received approval for all vessel EEXI technical files
• Overall fleet carbon intensity achieved C rating
• Continued optimisation and operation of our LPG-
propulsion vessels to limit our emission footprint
• Use of LPG as bunker fuel translates into
>US$11 million in fuel savings and ~28,800 tonnes
reduction in CO2
e emissions
• LPG-dual fuel use uptime steadily increased within
the year as we increase our target by 3.2% for 2024
compared to 2023
• Enhanced IT capabilities to support new emissions
related compliance requirements (CII, EU ETS and
FuelEU Maritime)
• Achieved overall 2,535 MT of bunker savings over
278 voyages through weather routing
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
• Environment
Responsible Transition
• Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Environment
Material Topic
Emissions and Energy
Read more →
Actions 2023 Targets
• Fleet in compliance with EEXI requirements
• Fleet to have a CII rating of “C” or better
Energy Management
GHG and Toxic Emission
Management
2024 Targets
• All owned vessels to attain “C”
or better rating under CII
• Average LPG dual fuel uptime
above 85%
• Achieve overall net positive
savings in fuel from weather
routing
Policies and Guidelines → Sustainability Strategy and Governance → Risk Management →
Read More
Energy for a Changing World 05806 Sustainability • Environment
BW LPG Integrated
Annual Report 2023
Ballast Water Management (% of fleet having implemented Ballast Water Treatment)
2021
2022
2023
86%
100%
67%
Environment
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
• Environment
Responsible Transition
• Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
The oceans connect our markets. As we
deliver cleaner-burning energy around the
world, we must do so in ways that minimise
the impact of our operations on marine
biodiversity. We completed the installation of
ballast water treatment systems on our
Owned and India vessels in 2023.
Ship recycling is a fundamental part of the
shipping value chain. At the end of a vessel’s
commercially viable life, shipowners have a
responsibility to ensure that it is recycled
responsibly and in a manner that minimises
impact to human health and the environment.
Material Topic
Protecting Biodiversity
Read more →
Energy for a Changing World 05906 Sustainability • Environment
BW LPG Integrated
Annual Report 2023
Progress
• 100% of owned and operated vessels installed/
upgraded ballast water treatment systems for
treatment of invasive species during ballast
operations
• Full compliance with the Ballast Water Management
Convention and MARPOL conventions
• Zero oil spills
• No vessels were recycled in 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
• Environment
Responsible Transition
• Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Environment
Material Topic
Protecting Biodiversity
Read more →
Actions 2023 Targets
• 100% compliance with the Ballast Water
Management Convention
• Completed Ballast Water treatment system
installation / upgrade on all owned and BW LPG India
fleet by end 2023
• 100% compliance with all MARPOL conventions.
• Zero oil spills
• 100% of all ship recycling projects to be done with
shipyards that operate in compliance with the Hong
Kong Convention and certified to ISO 30000
Waste Management
Water Management
2024 Targets
• 100% compliance
with the Ballast Water
Management
convention
• 100% compliance
with all MARPOL
conventions
• Zero spills of oil at sea • 100% of all ship
recycling projects
to be done with
shipyards certified to
ISO 30000 and Hong
Kong Convention
Policies and Guidelines → Sustainability Strategy and Governance → Risk Management →
Read More
Energy for a Changing World 06006 Sustainability • Environment
BW LPG Integrated
Annual Report 2023
gCO2 / Tonne-Nautical mile
0
2021 2022 2023
Carbon Intensity Index (CII)
(Owned and India fleet)
2023 CII Target CII
7.34
7.02
6.50
7.16
2023 CII Target
Ensuring full compliance with new environmental regulatory requirements
LPG propulsion and its benefits →
Read More
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
• Environment
Responsible Transition
Environmental Impact
Management
• Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Environment
Highlights
In 2023, the team was focused on ensuring full
compliance with new regulatory requirements
related to the Carbon Intensity Indicator (CII)
and the European Union Emissions Trading
System (EU ETS).
CII is a measure of a ship’s energy efficiency
and is calculated in terms of grams of Carbon
Dioxide emitted per cargo-carrying capacity
and nautical mile. 2024 is the first year ship
owners attain annual operational CII verification
for their vessels, for operations in 2023. Based
on their 2023 performance, vessels will receive
an environmental rating ranging from A-E. These
rating thresholds will become increasingly
stringent towards 2030.
The EU ETS is a cornerstone of the EU’s policy
to combat climate change and its key tool for
reducing GHG emissions. It is an emissions
cap-and-trade system which sets a cap on
GHG emissions industries, and shipping as a
sector is included from 2024. The EU ETS will
initially cover carbon emissions and will expand
to cover methane and nitrous oxide from 2026.
BW LPG has established a task force to oversee
the implementation of internal workstreams to
prepare for EU ETS compliance including the
procurement and surrendering of allowances.
Both the CII and EU ETS have far-ranging impact
on how we conduct business. Commercial
contracts must be revisited, we must review
how we optimise voyage performance as a
balance between emissions and commercial
impact, and we must allocate resources to
ensure we have systems in place to manage
reporting requirements.
Over the year, we reduced our GHG emissions
by 6% against 2019 baseline. We reduced our
CII for our owned and India fleet, where we
have full operational and technical control.
Our indicative CII remains below our 2023 CII
target as we progress our fleet renewal
programme and energy efficiency initiatives.
Examples of such initiatives include LPG
propulsion, voyage optimisation via weather
routing, slow steaming, hull and propeller
cleaning, and Just-in-Time arrivals.
Energy for a Changing World 06106 Sustainability • Environment
BW LPG Integrated
Annual Report 2023
2022
Waste Landed Ashore (m3)
1,044
Total
1,205
Total
941
Total
20232021
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
• Environment
Responsible Transition
Environmental Impact
Management
• Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Environment
As we deliver cleaner-burning energy around
the world, we must do so in ways that minimise
the impact from operations on the environment.
Following international environment-related
treaties in our daily work ensure we manage
waste and hazardous materials onboard
appropriately.
Garbage from ships can be just as deadly to
marine life as oil or chemicals. Vessels are
instructed to strictly adhere to MARPOL
Annex V guidelines in the treatment of garbage
onboard. Our waste management policy
requires separation, collection, storage and
disposal of vessels’ waste. Bilge water, grey
water and sewage are also treated with systems
onboard before they are properly disposed.
Throughout the year, our minimising food waste
and plastics return campaign raises awareness
of the impact of excessive waste and provide
recommendations on how to further improve
practices onboard. Vessels maintain a Garbage
Management Plan and a Garbage Record Book
and crew are also encouraged to suggest ideas
on how we can reduce waste.
Since 2020, we have pledged our support for
the IMPA SAVE Council for Maritime Supply
Chain Sustainability, an international coalition
working to ensure sustainability in maritime
supply chains, to reduce the use of single-use
plastics onboard our vessels, thus reducing the
amount of garbage generated.
As a company we ensure compliance with all
environmental-related regulations. Beyond
compliance, our onboard initiatives have
proved effective as we reduced the amount of
waste disposed ashore on our owned and India
vessels between 2021 and 2023.
How to handle waste and hazardous materials
Energy for a Changing World 06206 Sustainability • Environment
BW LPG Integrated
Annual Report 2023
0.16
Target: ≤1.5
LTIF (Lost Time Injury Frequency)
0.16
TRCF (Total Recordable Case Frequency)
Shore Employee Diversity
Nationalities
Represented
1741 %
59 %
Female
Male
Target: ≤0.5
Social
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
• Social
• Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Conducive Workplace
We focus on our people as we run our business well and
reduce our impact on the environment. This is because our
dedicated and experienced colleagues are our greatest
competitive advantage. At BW LPG, we are powered by
LPG, and we are powered by people. We aim to provide a
workplace that is inclusive, safe and respectful of the diverse
backgrounds and talents that make up our workforce.
We will also continue to engage employees with internal
programmes and initiatives that is relevant and meaningful.
Our Zero Harm Programme protects the
health and safety of crew, employees and
contractors. Encouraging a culture of
continuous training and sharing of best
practices allow us to offer industry leading
services and innovative solutions for our
customers. We foster a company culture
that is inclusive and respectful of human
rights, labour rights, diversity and skills in
our workforce and supply chain.
Material Topic
Working Environment
Read more →
UN SDG
Goal 3: Good Health and Well-being
Goal 5: Gender Equality
Goal 10: Reduced Inequalities
Stakeholders
Crew, Employees, Suppliers
Energy for a Changing World 06306 Sustainability • Social
BW LPG Integrated
Annual Report 2023
Progress
• Zero employee, crew and contractor fatalities
• Lost Time Injury Frequency: 0.16
• Total Recordable Case Frequency: 0.16
• Successfully rolled out the Safer Together Programme
— a new health and safety initiative
• Continuation of HiLo analyses, trainings, audits,
safety briefings and drills
• 100% installation of Starlink on internally managed
vessels to improve ship-shore communication
• Established a Working Environment Committee in
collaboration with BW Group to assess work
environments
• Zero cases of discrimination and harassment
• Female (41%) : Male (59%) diversity ratio and
17 nationalities
• Attained 93% participation and 81% satisfaction
result on Employee Pulse survey
Social
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
• Social
• Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Material Topic
Working Environment
Read more →
Actions 2023 Targets
2024 Targets
• Zero crew and contractor fatalities at sea and on
shore while at work
• Lost Time Injury Frequency ≤0.5
• Total Recordable Case Frequency ≤1.5
• Diversity of
nationalities, with
±15% variance in
employee gender
• Zero cases of
discrimination and
harassment
• Zero crew, employee
and contractor
fatalities while at work
• Whole fleet LTIF ≤0.5
and TRCF ≤1.5
• Diversity of nationalities with ±15% variance in gender
Human and Labour Rights
Climate Change ManagementHealth and Safety
Diversity, Inclusion and Belonging
Policies and Guidelines → Sustainability Strategy and Governance → Risk Management →
Read More
Energy for a Changing World 06406 Sustainability • Social
BW LPG Integrated
Annual Report 2023
We conduct an anonymous
Employee Pulse Survey
annually. The Executive
Management identifies
areas of improvement and
discuss next steps before
communicating the results
to the company during
our town hall.
Employee Pulse Survey 2023
Favourable
Unfavourable
Inclusion
and Diversity
85%
Growth and
Development
68%
Culture
86%
Health
and Safety
91%
Social
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
• Social
Conducive Workplace
• Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Talent Management
We strive to build a culture of entrepreneurship, emphasising
a growth mindset and a trusting environment to encourage
our people to adapt to change and cultivate new skills. We
depend on their motivation to fuel innovation, enhance
productivity, and drive continuous improvement.
UN SDG
Goal 4: Quality Education
Goal 8: Decent Work and Economic Growth
Stakeholders
Crew, Employees
We engage with external institutions who
nurture the industry’s talent pipeline. We
participate in tertiary recruitment events,
offer scholarships and provide work
placement opportunities to attract and grow
our talent pool.
Material Topic
Recruitment, Development and Retention
Read more →
Recruitment
When we invest in employees, through
upskilling, opportunities for career
progression and professional development,
we see extensions of tenure. Learning
empowers employees to welcome change,
acquire new skills, and enhance overall
performance. Our development initiatives
offer avenues for both upskilling and
reskilling. Upskilling seeks to elevate
employees’ existing skills and capabilities
to progress in their current or a comparable
role, while reskilling equips them to
undertake new responsibilities within
the company.
BW LPG has in place initiatives and
programmes to promote employee work-life
balance, health and mental wellness.
Retaining employees is crucial to ensure
continuity of expertise and the company’s
long-term success and growth.
Development
Retention
Energy for a Changing World 06506 Sustainability • Social
BW LPG Integrated
Annual Report 2023
Progress
• BW recognised by Forbes in the Top 500 World’s
Best Employers 2023
• Collaborated with BW Group in a talent management
initiative to have a common platform to offer
opportunities to all BW colleagues
• Participated in school outreach programmes at
tertiary education centres and hosted a physical
engagement session with students with the larger
BW Group
• 36 shore colleagues attended training programmes
to build their soft skills
• 2 interns/trainees in our industry exposure programme
Social
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
• Social
Conducive Workplace
• Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Material Topic
Recruitment, Development and Retention
Read more →
Actions 2023 Targets
• Investment into training, upgrading and upskilling
programmes
• Have interns / trainees in our industry exposure
programme to encourage and groom maritime talent
Welfare and Benefits
Climate Change ManagementHuman Capital Management
2024 Targets
• Investment into training,
upgrading and upskilling
programmes
• Have interns/trainees in our
industry exposure programme
to encourage and groom
maritime talent
• Develop opportunities to work
between offices and enhance
collaboration
Policies and Guidelines → Sustainability Strategy and Governance → Risk Management →
Read More
Energy for a Changing World 06606 Sustainability • Social
BW LPG Integrated
Annual Report 2023
Social
Highlights
In 2023, we introduced a new safety campaign
to ensure continued focus on our safety vision
of Zero Harm. Summarised as “Safer Together”,
the campaign structured how we worked
towards our vision of Zero Harm to people, the
environment, and our vessels over the year.
Four safety topics were discussed, following a
quarterly cadence and using familiar safety
tools. We kicked off the year with discussions
around teamwork and leadership. In the second
quarter, we reminded colleagues that we care,
and showed the many ways this care is
manifested. We also focused on psychological
safety at work and emphasised that mental
health is just as important as physical health
onboard at the workplace. In the third quarter,
we learnt how to manage risks and hazards with
barriers, and reviewed strategies on how to
keep safe. In the final quarter of the campaign,
we emphasised that it is normal to make
mistakes, and a culture of transparency helps
us to learn, improve, and grow our reputation
and relationships.
With a collaborative and open environment
onboard where everyone feels safe to speak
up, we will improve our overall performance
and be safer together. We are safe because
we dare to speak about errors, not because
we do not have them. We want to talk about
work done, both good and otherwise, without
judgement. Good work allows for well-deserved
acknowledgement, and all others are
opportunities to learn and improve. In 2023,
our LTIF and TRCF were both 0.16, well within
our target of 0.5 and 1.5 respectively.
Drills are an important part of emergency preparedness onboard vessels. Image courtesy of Onboard Trainer Szymon
Sabkowski, conducting training on BW Var.
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
• Social
Conducive Workplace
Talent Management
• Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Diversity, Inclusion and Belonging →
Read More
Safer Together, Zero Harm
Safer Together Campaign →
Energy for a Changing World 06706 Sustainability • Social
BW LPG Integrated
Annual Report 2023
Governance
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
• Governance
• Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Operational Excellence
We want to be our customers’ first choice for LPG shipping
and we take pride in offering industry-leading customer
service and operational excellence. Adapting to our changing
world requires an understanding that success as a company
must be defined by more than the bottom line. By embedding
sustainability into our business strategy and operations, we
will not only achieve good financial results while incorporating
environmental and social considerations, but also ensure
long-term sustainability of our business and operations.
We are a member of the Maritime Anti-Corruption Network,
a global industry initiative aimed at eliminating bribery and
corruption in shipping.
UN SDG
Goal 8: Decent Work and Economic Growth
Goal 16: Peace, Justice and Strong
Institutions
Goal 17: Partnerships for the Goals
Stakeholders
Crew, Employees, Customers, Suppliers,
Investors, Lenders
At BW LPG, we guard the trust given to us by
our stakeholders through our corporate
governance structure that monitors our
procedures and practices. Beyond
compliance, we ensure strict internal
governance and follow established
gatekeeping procedures when we debate
strategic business decisions.
Material Topic
Business Conduct
Read more →
Energy for a Changing World 06806 Sustainability • Governance
BW LPG Integrated
Annual Report 2023
Progress
• Full compliance with laws and regulations
• Zero facilitation payments made and no monetary
loss as a result of legal proceedings
• Raised awareness through 2 Senior Officers
Conference
• MACN physical information session conducted in
Singapore for colleagues in technical and operations
• Completed installation of Starlink to enhance ship-
shore communication
• No reported cases of misconduct in 2023
• No political contributions in the past 3 years
• The Group was not involved in any legal proceedings
associated with anti-competition practices and had
no reported cases of misconduct in 2023
Governance
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
• Governance
• Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Material Topic
Business Conduct
Read more →
Actions 2023 Targets
• At least one event to raise awareness of latest
developments in areas of operation
• Continue to monitor and improve shore to ship
communications to support our crew
• Full compliance with laws and regulations
• Enhance Anti-Bribery and Anti-Corruption (ABAC)
communication to all crew and employees through
updated trainings
Anti-Bribery and Anti-Corruption
Transparent Corporate Governance
2024 Targets
• Actively promote awareness at
sea and in offices for zero
tolerance to Bribery, facilitation
and corruption
• Host online and onsite
campaigns to promote ABAC
awareness
• Full compliance with
international maritime
regulations, as well as
international and regional laws
Policies and Guidelines → Sustainability Strategy and Governance → Risk Management →
Read More
Energy for a Changing World 06906 Sustainability • Governance
BW LPG Integrated
Annual Report 2023
Governance
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
• Governance
• Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
We want to ensure our strategic investments
are effectively managed by setting up
adequate internal processes and contingency
plans, and investing in IT to maximise
efficiency in our operations. Strong core
operations and management enable us to
take advantage of business opportunities to
generate value for our shareholders,
customers, and society at large.
Material Topic
Effective Management
Read more →
Our relationships with suppliers are
fundamental to our business success. As we
conduct our business with high standards,
we also set high standards for our suppliers.
By working together with our suppliers to
improve their sustainability practices,
collectively we can play our part in
supporting the United Nations Sustainable
Development Goals.
Material Topic
Supply Chain
Read more →
Crew receiving victuals onboard.
Energy for a Changing World 07006 Sustainability • Governance
BW LPG Integrated
Annual Report 2023
Progress
• No detentions in the last 3 years
• Enhanced internal IT capabilities with two new
permanent headcount and restructuring of data and
reporting solutions
• No major cybersecurity incidents or data breaches
in 2023
• Attendance at 5 industry events
• Maintained ISO certifications
• Projects executed within timelines and budget
• 96% fleet utilisation in 2023, up from 93% in 2022
• US$61.6 K TCE per calendar day in 2023, up from
US$40.6 K in 2022
• Established a joint venture for the development of
an LPG import terminal
• Improved ESG ratings and increased communication
Governance
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
• Governance
• Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Material Topic
Effective Management
Read more →
Actions 2023 Targets
• No detentions
• Increase collaboration with industry bodies
• Maintain ISO certifications
• On-time and on budget project execution
• Continuous improvement in ESG efforts
• Efficient utilisation of available capital to generate
additional profits
• Outperform peers in TCE, OPEX and ROE
IT Management
Climate Change ManagementQuality Management
Economic Performance
2024 Targets
• Deliver new data management
platform and select strategic
projects
• Expand internal IT standards,
and enhance data protection
and handling capacity
• Reinforce compliance with
all applicable regulatory
frameworks
Policies and Guidelines → Sustainability Strategy and Governance → Risk Management →
Read More
Energy for a Changing World 07106 Sustainability • Governance
BW LPG Integrated
Annual Report 2023
Progress
• Conducted performance audit on top 40 suppliers
in 2023 through Achilles
• 100% of new suppliers engaged in 2023 made
a signed commitment to BW LPG procurement policy
• Enhanced BW LPG inventory management system
• Developed communication plan with 8 key strategic
subcontractors
Governance
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
• Governance
• Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
2024 Targets
• In collaboration with BW Group and BW affiliates,
we will make a combined effort to contract an
ESG provider platform for auditing of all suppliers
Material Topic
Supply Chain
Read more →
Actions 2023 Targets
• 100% of Top suppliers audited on ESG practices
Contractor Management
Climate Change ManagementResponsible Procurement
Policies and Guidelines → Sustainability Strategy and Governance → Risk Management →
Read More
Energy for a Changing World 07206 Sustainability • Governance
BW LPG Integrated
Annual Report 2023
Governance
Highlights
At BW LPG, our success is rooted in the ethical
conduct of each member of our team, both
seafarers and shore colleagues alike. We are
committed to fostering a work environment
that promotes honesty, integrity, and fairness.
To this end, our policies are clear and
uncompromising: there is zero tolerance for
corruption in our operations. BW LPG is a
member of the Maritime Anti-Corruption
Network (MACN)’s and every year, we organise
activities to commemorate International Anti-
Corruption Day.
In 2023, crew were asked to watch videos
discussing bribery and corrupt practices in the
industry and discuss practical ways to manage
encounters. Crew were reminded that they can
politely explain BW LPG’s Anti-bribery Policy
and point to posters placed at prominent
locations onboard. Crew can also contact BW
LPG’s Anti-Bribery representatives and fleet
teams for support and guidance. When we are
coordinated and aligned in our response to
bribery and corrupt practices, we build a good
reputation in the industry.
All employees can expect full support from the
highest levels of Management as we stand firm
against bribery and corruption at the frontlines.
There are various channels to report wrongdoing
— for example, anonymous reports can be made
via EthicsPoint, a third-party hosted platform
that relays reports directly to the CEO of
BW LPG.
We share a collective responsibility to uphold
our company’s values, to report any suspected
corrupt practices, and to work in the best
interests of our company and the communities
we serve. Do not ask, we will not give.
BW Freya shows our approach to bribery and corrupt practices in the industry. Do Not Ask, We Will Not Give.
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
• Governance
Operational Excellence
• Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Do not ask, we will not give
Energy for a Changing World 07306 Sustainability • Governance
BW LPG Integrated
Annual Report 2023
Engagements
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
• Engagements
• Shipping Industry
Engagements and
Commitments
• Local Community
Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Senior management of BW LPG engages
actively with our stakeholders through
participation and presentations at industry
events, cross-industry partnerships and
coalitions. Our memberships in industry
We recognise that it is crucial to extend care to
the broader community to foster cohesiveness,
especially in challenging times. We choose to
associations facilitates our engagement with
regulatory bodies to understand and provide
our expertise on matters that can impact the
maritime industry.
support initiatives that have a lasting impact
on the communities even after the collaboration
is completed.
Membership and Association
BW LPG is a member of, or partner with, the following associations and organisations.
Shipping Industry Engagements and Commitments
Read more →
Local Community
Read more →
Devija S, BW LPG India’s pioneer graduate scholar, pictured here with schoolmates from the Indian Maritime University.
She continues her LPG story onboard BW Tyr, an India-flagged Very Large Gas Carrier.
Energy for a Changing World 07406 Sustainability • Engagements
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
• Engagements
Shipping Industry
Engagements and
Commitments
Local Community
• Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Engagements
Shareholders, regulatory bodies, and various
stakeholders are increasingly involved in
discussions related to our management,
performance, and disclosure of significant ESG
matters. We maintain open communication
with our stakeholders to understand their
key expectations through various forms of
engagement with the aim to meet all
stakeholder expectations.
Stakeholder Key Expectations Engagements in 2023
Crew
• Occupational safety
• Career development and training
• Fair compensation
• Supportive, diverse and inclusive culture
• Work-life balance
• Organised annual Senior Officers
Conferences to foster conversation and
provide comprehensive updates
• Conducted training sessions for crew on
the operation of LPG propulsion engines
• Sustained involvement on BW@work
(an internal communication platform)
to ensure crew are updated on
workplace-related guidelines, initiatives,
and knowledge-sharing of best practices
and risks
Employees
• Occupational safety
• Career development and training
• Fair compensation
• Supportive, diverse and inclusive culture
• Work-life balance
• Utilised LinkedIn Learning to offer
adaptable training and opportunities for
upskilling
• Developed Personal Development Plan in
Performance Coaching forms for
individual employees
• Arranged various initiatives for employee
engagement fostering team cohesion and
promoting a healthy work-life balance
• Encourage talent mobility and
opportunities through university
outreach and enhanced career page on
our website
Customers
• Operational excellence
• Competitive rates
• Flexible and good customer service
• Integrated service offering
• Low carbon footprint
• 24-hour customer service through our
multi-region chartering and trading desks
• Arranged in-person sharing sessions on
fleet developments, performance and
service offerings
• Enhanced our business offerings with BW
Product Services and BW LPG India
• Expanded BW LPG Pool through strategic
partnerships
Stakeholder Engagement
Read more →
Energy for a Changing World 07506 Sustainability • Engagements
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
• Engagements
Shipping Industry
Engagements and
Commitments
Local Community
• Stakeholder Engagement
Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Engagements
Stakeholder Key Expectations Engagements in 2023
Suppliers
• Sustainable supply chain
• Prompt payment
• Equal opportunities and clear
communication of deliverables
• Increased collaboration within BW Group
affiliates to synergise supplier audit and
selection processes
• Audited suppliers for compliance with
BW LPG’s Code of Ethics and Business
Conduct
• Commitment to pay suppliers within
contractually agreed period
• Continued dialogue and meetings with
existing and new suppliers on increasing
efficiency and ESG matters
Investors
• Return on investments
• Transparent and clear strategy
• Compliance with regulations
• Abreast of industry trends with sound
risk assessments
• Alignment of shareholders’ interest with
management
• Held in-person dialogue with current and
potential investors, and participated in
investor conferences
• Provided timely updates through
quarterly earnings presentations with live
Q&A sessions
• Enhanced disclosures in external reports
through best practice analysis and
feedback
• Continued participation in the Carbon
Disclosure Project (CDP) and
engagements with ESG ratings
Lenders
• Timely and reliable reporting
• Compliance with loan covenants
• Material ESG initiatives to support
sustainability strategy
• Organised in-person and online meetings
with lenders
• Held annual bankers meeting with live
Q&A session to share business updates
• Provide timely updates and clear
communication of strategic and ESG
covenants
Government
and Regulations
• Safe and reliable shipping
• Collaborate and innovate
• Abide by regulatory requirements
• Develop superior management policies
• Actively participated in industry events
to enhance visibility and share knowledge
• Increased collaboration with BW Group
Affiliates and industry peers through
working groups and partnerships
• Updated internal policies and workflows
to reflect changing regulations and
expectations
Energy for a Changing World 07606 Sustainability • Engagements
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
• Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Corporate Governance Report
BW LPG Corporate Governance Report 2023
Corporate Governance Comply or Explain Overview
With reference to the Norwegian Code of Corporate Governance
Section of the Code Deviations
01: Implementation and reporting on
corporate governance
None
02: Business The Company’s objectives are wider and more extensive.
03: Equity and dividends The Company’s issuance and purchase of its own
shares are neither limited to a specific purpose nor
to a specified period.
04: Equal treatment of shareholders None
05: Shares and Negotiability The Company may decline to register the transfer of
any share if the transfer results in the Company being
deemed a “Controlled Foreign Company” in Norway.
06: General meetings The Chairman of the Board also acts as the Chair of the
General Meetings.
07: Nomination committee None
08: Board of Directors: composition and independence None
09: The work of the Board of Directors One of the two members of the Remuneration
Committee is not independent of the Company’s
largest shareholder.
10: Risk management and internal control None
11: Remuneration of the Board of Directors None
12: Remuneration of the Executive Personnel Performance-related remuneration to Executive
Personnel is not subject to an absolute limit.
13: Information and communications None
14: Take-overs None
15: Auditor None
Table 1: Overview of deviations from the Code
Section 01
Implementing and reporting on corporate governance
BW LPG Limited (“BW LPG” or the “Company”)
is a Bermuda limited liability company listed on
the Oslo Børs (the Oslo Stock Exchange).
BW LPG is primarily governed by the Bermuda
Companies Act, its Memorandum of
Association and its Bye-laws. In addition, the
Company is required to comply with certain
aspects of the Norwegian Securities Trading
Act, the Norwegian Accounting Act and the
continuing obligations for companies listed on
the Oslo Stock Exchange.
This Report provides an overall overview of the
Energy for a Changing World 07706 Sustainability • Corporate Governance Report
BW LPG Integrated
Annual Report 2023
Company’s Corporate Governance practices
with specific reference to the Norwegian Code
of Practice for Corporate Governance (the
“Code”) dated 14 October 2021 issued by the
Norwegian Corporate Governance Board. Each
individual point of the Code is reviewed and if
the Company deviates from the Code,
explanations are provided. The Code is available
at https://www.nues.no.
The Board of Directors (the “Board”) believes
that the interests of the Company and its
shareholders are best served by the adoption
of business policies and practices which are
legal, compliant, ethical, and open in relation to
all dealings with customers, potential
customers and other third parties. These
policies are designed to be fair and in
accordance with leading market practices on
stakeholder relationships and are also sensitive
to reasonable expectations of public interest.
The Company’s Corporate Governance policy
takes into account the Code and as such,
includes self-regulatory corporate governance
practices. The Company has developed its
internal policies and practices, where
appropriate, to meet the requirements and
recommendations of the Code.
The Corporate Governance of the Company is
subject to review by the Board at least annually,
and the Company’s governance documents are
reviewed annually to ensure continued
relevance and accuracy.
The Company does not deviate from Section 1
of the Code.
Corporate Governance Report
Section 02 The Business
Section 03 Equity and Dividends
The Company’s Memorandum of Association
describes the nature of the Company’s business
and the objectives of the Company. In
accordance with common practice for Bermuda
companies, the description of the Company’s
objectives is wider and more extensive than
recommended in the Code. This represents
a deviation from Section 2 of the Code.
The Board leads the Company’s strategic
planning, makes decisions and defines clear
objectives, strategies and risk profiles that form
the basis for the Company’s Executive
Personnel to prepare and carry out investments
The Board regularly evaluates the Company’s
capital requirements to ensure that the
Company has a capital structure which is
appropriate for its objectives, strategy and
risk profile.
The Board has decided on a dividend policy for
and structural measures to create value for the
shareholders in a sustainable way. During this
work, the Board takes into account economic,
social and environmental conditions to ensure
value creation for a sustainable business. The
Company’s strategies, objectives, business
activities and risk profiles are evaluated at least
annually and are described in the Annual Report.
The Company has implemented corporate
values, ethical guidelines and guidelines for
corporate social responsibility. These values
and guidelines are described in the Company’s
Code of Ethics, Business Conduct and
internal policies.
the Company to provide a degree of
predictability and transparency on the
determination of dividend payouts to
shareholders. Details on the dividend policy
can be found on the Company’s website.
In addition to cash dividends, the Company may
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
• Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Energy for a Changing World 07806 Sustainability • Corporate Governance Report
BW LPG Integrated
Annual Report 2023
Corporate Governance Report
buy back shares as part of its total distribution
of capital to shareholders. Under the Bye-laws
of the Company, the Board of Directors may
declare dividends and distributions without the
approval of the shareholders in general
meetings. Dividend payouts which are approved
at the Board Meetings of the Company are
made in accordance with the dividend policy.
Pursuant to Bermuda law and in accordance
with common practice for Bermuda
incorporated companies, the Board has
authority to issue any authorised unissued
shares in the Company on such terms and
conditions as it may decide and may exercise
all powers of the Company to purchase the
Company’s own shares. The powers of the
Board to issue and purchase shares are neither
limited to specific purposes nor to a specified
period as recommended in the Code. This
represents a deviation from Section 3 of
the Code.
Section 04 Equal Treatment of Shareholders
Section 05 Shares and Negotiability
The Company has one class of shares. Each
share in the Company carries one vote, and all
shares carry equal rights, including the right to
participate in general meetings. All shareholders
will be treated on an equal basis, unless there is
just cause for treating them differently.
Pursuant to Bermuda law and common practice
for Bermuda incorporated companies, the
shareholders of the Company do not have pre-
emption rights in share issues unless otherwise
resolved by the Company. Any decision to issue
shares without pre-emption rights for existing
shareholders will be justified in the common
interest of the company and the shareholders.
In the event that the Company carries out a
share issue without pre-emption rights for
In general, the shares in the Company are
freely transferable.
However, the Board may decline to register the
transfer of any share, where such transfer would,
in the opinion of the Board, likely result in 50% or
more of the aggregate issued and outstanding
share capital of the Company being held or
owned directly or indirectly by individuals or
legal persons resident for tax purposes in
existing shareholders, then the justification will
be publicly disclosed in a stock exchange
announcement issued in connection with the
share issue.
Any transactions the Company carries out in
its own shares will be carried out either through
the Oslo Stock Exchange or with reference
to prevailing stock exchange prices if carried
out in another way. If there is limited liquidity
in the Company’s shares, the Company will
consider other ways to ensure equal treatment
of shareholders.
The Company does not deviate from Section 4
of the Code.
Norway, or alternatively, such shares being
effectively connected to a Norwegian business
activity, or the Company otherwise being
deemed a “Controlled Foreign Company” as
such term is defined pursuant to Norwegian tax
legislation. The purpose of this provision is to
avoid the Company being deemed a Controlled
Foreign Company pursuant to Norwegian tax
rules. This represents a deviation from Section 5
of the Code.
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
• Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Energy for a Changing World 07906 Sustainability • Corporate Governance Report
BW LPG Integrated
Annual Report 2023
Corporate Governance Report
Section 06 General Meetings
Section 07 Nomination Committee
The Annual General Meeting of the Company will
normally take place on or before 31 May each
year. The Company encourages all shareholders
to participate in and to vote at General
Meetings. In order to facilitate shareholder
participation, the Board ensures that:
• the resolutions and supporting
documentation, if any, will be sufficiently
detailed, comprehensive and specific to
allow shareholders to understand and form a
view on matters that are to be considered at
the General Meeting;
• the registration deadline, if any, for
shareholders to participate at the General
Meeting will be set as closely to the date of
the General Meeting as practically possible
and permissible under the provision in the
Bye-laws;
• the shareholders will have the opportunity to
vote on each individual matter, including on
each candidate nominated for election to
the Company’s Board and Committees (if
applicable); and
• the members of the Board, the chairman of
the nomination committee and the auditor
(where attendance is regarded as essential)
will have the opportunity to participate at
the General Meeting.
Shareholders who cannot be present at the
General Meeting will be given the opportunity
The Company has a Nomination Committee
appointed by the General Meeting with a
Chairman elected by the General Meeting. The
Nomination Committee is laid down in the
Company’s Bye-laws with guidelines approved
at the Annual General Meeting. The Nomination
Committee guidelines are made available on the
Company website.
to vote by proxy or to participate by using
electronic means. The Company will in
this respect:
• provide information on the procedure for
attending by proxy in the notice;
• nominate a person who will be available
to vote on behalf of shareholders as their
proxy; and
• prepare a proxy form which will, insofar as
this is possible, be formulated in such a
manner that the shareholder can vote on
each item that is to be addressed and vote
for each of the candidates that are
nominated for election.
Pursuant to common practice for Bermuda
incorporated companies, the Company’s Bye-
laws stipulate that the Chairman of the Board
will chair the General Meeting unless otherwise
agreed by a majority of those shares
represented at the meeting. In this respect, the
Company deviates from Section 6 of the Code.
However, there will be routines to ensure that an
independent person is available to chair the
General Meeting or a particular agenda with
regards to any matters related to the Chairman.
The minutes of the Annual General Meeting
will be published on the Company’s website no
later than 15 days after the date of the meeting,
and a printed version can be made available
upon request.
The Nomination Committee is responsible for
proposing candidates for election to the Board
and the Nomination Committee, and proposing
remuneration to be paid to members of these
bodies. As part of its work in proposing
candidates for election to the Board and the
Nomination Committee, the Nomination
Committee is available for contact with
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
• Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Energy for a Changing World 08006 Sustainability • Corporate Governance Report
BW LPG Integrated
Annual Report 2023
Corporate Governance Report
shareholders and maintains contact with the
Board and the Company’s Executive Personnel.
The Nomination Committee will justify its
recommendations for each candidate
separately and strive to consult with relevant
shareholders concerning proposals for
appointment of candidates.
The members of the Nomination Committee
have been selected to take into account a broad
range of shareholder interests. In accordance
with the recommendations of the Code, the
Nomination Committee is independent and
does not include any Executive Personnel or any
member of the Company’s Board of Directors.
An up-to-date composition of the Nomination
Committee is available on the Company’s
website and the Company will provide
shareholders with any deadlines for submitting
proposals for candidates to the Nomination
Committee.
The Company does not deviate from Section 7
of the Code.
Section 08 Board of Directors: composition and independence
Section 09 The Work of the Board of Directors
The composition of the Board represents a
broad cross-section of the Company’s
shareholders, which ensures that they can meet
the Company’s need for expertise, capacity,
diversity and independence. The Board
consists of six members, who continue to work
together as a team to exercise proper
supervision on the management of the
Company. The majority (five of the six
members) are independent of the Company’s
largest shareholder, the Executive Personnel,
and material business connections of the
Company. The Board does not include any
Executive Personnel. The general meeting
elects the chairman of the Board.
Members of the Board will serve for a term
of two years, after which they would be
re-evaluated before being considered for
The Board is ultimately responsible for the
management of the Company and for
supervising its day-to-day management. The
duties and tasks of the Board are detailed in the
Company’s Bye-laws. The Board has issued
instructions for its own work as well as for the
Executive Personnel with particular emphasis on
clear internal allocation of responsibilities and
re-election. The value of continuity will be
balanced against the need for renewal and
independence. Where a member of the Board
has served for a prolonged continuous period,
consideration will be given as to whether the
individual Board member in question is still
considered independent of the Company’s
Executive Personnel.
The information of the Board, the expertise of
the Board members and the members who are
considered independent is available on the
Company’s website and in the Annual Report.
Members of the Board are welcome to own
shares in the Company.
The Company does not deviate from Section 8
of the Code.
duties. This Report and the instructions issued
by the Board is based on the view that all
decisions of unusual character or major
importance rests with the Board, and the
authority given to the CEO and other Executive
Personnel is not considered to be of unusual
character or major importance by the Company.
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
• Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Energy for a Changing World 08106 Sustainability • Corporate Governance Report
BW LPG Integrated
Annual Report 2023
Corporate Governance Report
The Company and Board have put in place
guidelines on the handling of agreements with
related parties which require the Directors and
Officers of the Company and Executive
Personnel to notify the Board if they directly or
indirectly have a material interest in any
transaction carried out by the Company.
Members of the Board of Directors and
Executive Personnel cannot consider items in
which they have a special and prominent
interest so that such items can be considered in
an unbiased and satisfactory way. In cases of
transactions between the Company and a
shareholder, a shareholder’s parent company,
Director, Officer or Executive Personnel of the
Company or persons closely related to any such
parties, or with another company in the same
group, which are not immaterial for either the
Company or the close associate involved, the
Board will normally obtain a valuation from an
independent third party, unless the Board is
confident based on other relevant information
such as benchmarking studies that it is
unnecessary to obtain such valuation to ensure
that values are not being transferred from the
Company to related parties. Agreements with
related parties are given account for in the
Company’s Consolidated Financial Statements.
In order to conduct its work, the Board each year
fixes in advance a number of regularly
scheduled meetings for the following calendar
year, although additional meetings may be
called by the Chairman. The directors will
normally meet in person but if so allowed by the
Chairman, may participate in the meeting by
means of electronic communications. Minutes
regarding the board meetings are kept by the
Company in Bermuda.
The Board has established an Audit Committee
as a preparatory and advisory committee for
the Board, consisting of two members, both of
which are also members of the Board. Both
members of the Audit Committee are
independent. The work and responsibility of the
Audit Committee includes but is not limited to
overseeing internal controls, risk management,
internal audit and external audit activities;
assessing the performance of the external
auditors; and management of the Company’s
Environmental, Social and Governance (“ESG”)
material topics.
The Board has also established a Remuneration
Committee to ensure thorough and
independent preparation of matters relating to
compensation paid to the Executive Personnel.
The Remuneration Committee consists of two
members, both of which are also members of
the Board, and one of the two members is not
independent of the Company’s largest
shareholder. This represents a deviation from
Section 9 of the Code.
The Board carries out an annual self-evaluation
of its performance and expertise. The various
Board Committees are also reviewed for their
effectiveness in executing their responsibilities.
This evaluation aims to appraise the Board’s
performance over the year and serve as a
foundation for improving its functions. The
Nomination Committee takes into consideration
the results of the annual self-evaluation when
reviewing the composition of the Board.
Details on the various board committees and
their respective guidelines adopted at the
Company’s Annual General Meeting are
available on the Company’s website.
Section 10 Risk Management and Internal Control
The Board ensures that the Company has sound
internal control procedures and systems to
manage its exposure to risks related to the
conduct of the Company’s business, to support
the quality of its financial and non-financial
reporting, and to ensure compliance with laws
and regulations. Such procedures and systems
will contribute to securing shareholders’
investment and the Company’s assets and
creating value for stakeholders.
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
• Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Energy for a Changing World 08206 Sustainability • Corporate Governance Report
BW LPG Integrated
Annual Report 2023
Management and internal control are based on
Company-wide policies and internal guidelines
in addition to implementation and follow-up of
a risk assessment process. The Company’s risk
management system is central to the
Company’s internal controls and ensures that
the guidelines for integrating considerations
related to stakeholders into its creation of value
are known and adhered to.
The Board carries out an annual review of the
Company’s most important areas of exposure
to risk and its internal control arrangements. A
description of the annual risk review and the risks
identified are disclosed in the Annual Report.
An annual supervisory plan for internal audit
work is approved by the Audit Committee. This
audit plan includes an audit for internal controls
in processes for functions at both group and
subsidiary level. The internal auditor is
independent from the Executive Personnel
and reports directly to the Audit Committee.
The Audit Committee follows up on internal
controls and risk management in connection
with quarterly reviews of the Group’s
financial reporting.
Upon effectiveness of the registration
statement for the listing of the Company’s
securities in the U.S., the Company will be
subject to Section 404 of the Sarbanes-Oxley
Act which requires that the Company include a
report from the management on the Company’s
internal control over financial reporting in its
second annual report on Form 20-F. Thus, the
Company will be subject to a more extensive
and strict compliance and reporting regime
than the Company was prior to the
effectiveness of the registration statement. In
connection with the preparation of the
registration statement and compliance with
Section 404 of the Sarbanes-Oxley Act, the
Company and the Auditor (as defined in
Section 15) have identified material weakness in
the Company’s internal control over financial
reporting relating to not having a sufficient
number of personnel with an appropriate level
of U.S. Securities and Exchange Commission
(“SEC”) reporting knowledge, experience and
training in internal controls over financial
reporting, resulting in inadequate resources
to operate the period-end financial reporting
controls, even though the Company is of the
view that it has had sufficient internal control
over financial reporting to satisfy applicable
requirements under its current reporting
regime and has satisfied its reporting
obligations as a Oslo Stock Exchange listed
company. The work performed by the Company
and the incremental audit work performed to
prepare for the US securities filing did not
identify any material errors in the historical
financial statements of the Company as a
result of the material weakness referred to
above. Thus, the Company and the Auditor
have concluded that no restatement of
historical financial information will be required
and that any adjustments will be disclosed in
the notes to the financial statements for the
financial year 2023.
The Company is committed to improving its
financial organisation and to having effective
internal control over financial reporting in
accordance with the requirements under
Section 404 of the Sarbanes-Oxley Act and the
Company is in the process of implementing a
number of measures to address the material
weakness identified, including, among other
things, (i) hiring additional accounting and
reporting personnel with adequate SEC
knowledge, skills, experience and training; and
(ii) formalising existing and implementing
additional internal control procedures and
policies to improve the financial reporting
process in compliance with Section 404 of the
Sarbanes-Oxley Act.
The Company does not deviate from Section 10
of the Code.
Corporate Governance Report
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
• Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Energy for a Changing World 08306 Sustainability • Corporate Governance Report
BW LPG Integrated
Annual Report 2023
Corporate Governance Report
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
• Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Section 11
Remuneration of Board of Directors
Section 12 Remuneration of Executive Personnel
The Annual General Meeting of the Company
decides the remuneration of the Board. The
remuneration of the directors reflects its
competence, level of activity, responsibility, use
of resources and the complexity of the
business activities.
The remuneration of the directors is not linked to
the Company’s performance and the directors
do not receive profit-related remuneration, share
options or retirement benefits from the Company.
Directors and/or companies with whom
The Board has established guidelines that set out
the main principles applied in determining the
salary and other remuneration of the Executive
Personnel. The Guidelines for Executive
Remuneration are clear and understandable, and
contribute to the Company’s business strategy,
long-term interests and financial sustainability.
Any change in these guidelines will be formally
communicated at the Annual General Meeting
and updated on the website. Since the Guidelines
for Executive Remuneration is not a requirement
under Bermuda law, the Annual General Meeting
has not voted over the guidelines.
The remuneration of the Executive Personnel
is reviewed annually and approved by the
Board based on recommendations by the
Remuneration Committee. The Remuneration
Committee considers the performance of the
Directors are associated shall not normally
undertake special tasks for the Company in
addition to the directorship. However, if they do
so, the entire Board shall be informed, and the
fee will be approved by the Board.
Details of normal directors’ fees are disclosed in
the Minutes of the Annual General Meeting. Any
additional remuneration and benefits in are
disclosed in the Remuneration Report.
The Company does not deviate from Section 11
of the Code.
Executive Personnel and gathers information
from comparable companies before
recommending it to the Board. Such a
recommendation aims to ensure convergence
of the financial interests of the Executive
Personnel and the shareholders and is made
easily understandable. Details on remuneration
are disclosed in the Remuneration Report.
Performance-related remuneration is awarded
in relation to annual performance against pre-
determined performance targets, which includes
sustainability objectives. The aggregate bonus
pool available for payment is determined with
close reference to the Company’s profitability
and shareholder value creation. Performance-
related remuneration to Executive Personnel is
not subject to an absolute limit. This represents
a deviation from Section 12 of the Code.
Section 13 Information and Communications
The Company is committed to providing
information in a manner that contributes to
establishing and maintaining confidence with
important interest groups and stakeholders. The
information shall be based upon openness and
equal treatment of all shareholders.
A precondition for the share value to reflect the
underlying values in the Company is that all
relevant information is disclosed to the market.
Based on this and subject to applicable laws
and regulations, the Company will keep the
shareholders informed about profit
Energy for a Changing World 08406 Sustainability • Corporate Governance Report
BW LPG Integrated
Annual Report 2023
Corporate Governance Report
Section 14 Take-overs
In the event of a take-over process, which shall
be decided by the General Meeting, the Board will
act in accordance with the following principles:
• the Board will ensure that the offer is made
to all shareholders, and on the same terms;
• the Board will ensure that the shareholders
have sufficient information and time to
assess the offer;
• the Board will not undertake any actions
intended to give any shareholder or others
an unreasonable advantage at the expense
of other shareholders or the Company;
• the Board will strive to be completely open
about the take-over situation;
• the Board will not attempt to prevent or
impede the take-over bid unless this has been
decided by the shareholders in a General
Meeting in accordance with applicable law;
• the Board will not institute measures which
have the intention of protecting the personal
interests of its members at the expense of
the interests of the shareholders;
• the Board will ensure that the values and
interests of all shareholders are safeguarded
and that the Company’s activities are not
unnecessarily interrupted.
If an offer is made for the Company’s shares,
the Board will issue a statement evaluating the
offer and making a recommendation as to
whether shareholders should or should not
accept the offer. If the Board finds itself unable
to give a recommendation to the shareholders
on whether to accept the offer, it will explain
the reasons for this. The Board’s statement on a
bid will make it clear whether the views
expressed are unanimous, and if this is not the
case, it will explain the reasons why specific
members of the Board have excluded
themselves from the statement.
The Board will consider whether to arrange a
valuation from an independent expert. If any
director, or close associates of such director, or
anyone who has recently held a position but has
ceased to hold such a position as a director, is
either the bidder or has a particular personal
interest in the bid, the Board will arrange an
independent valuation. This will also apply if the
bidder is a major shareholder. Any such valuation
will either be enclosed with the Board’s statement,
reproduced or referred to in the statement.
The Company does not deviate from Section 14
of the Code.
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
• Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
developments, prospects and other relevant
factors for their analysis of the Company’s
position and value.
The Company publishes an updated financial
calendar with dates for important events such
as the Annual General Meeting, publishing of
interim reports, public presentations and
payment of dividends (if applicable) on the
Company’s website.
Public investor presentations are arranged in
connection with the submission of annual and
quarterly results for the Company. The
presentations are also available on the
Company’s website. Furthermore, continuous
dialogue is held with, and presentations are
given to analysts and investors, ensuring that at
all times, existing and prospective investors
have symmetrical access to share-price
sensitive information.
Shareholders may contact the Company’s
investor relations contact at
investor.relations@bwlpg.com.
The Company does not deviate from Section 13
of the Code.
Energy for a Changing World 08506 Sustainability • Corporate Governance Report
BW LPG Integrated
Annual Report 2023
Corporate Governance Report
Section 15 Auditor
The Company’s auditor (the “Auditor”) is
appointed by the Annual General Meeting of
the Company and is responsible for the audit
of the Consolidated Financial Statements of
the Company.
The Auditor participates in the Audit
Committee’s review and discussion of the
annual accounts and quarterly interim accounts.
In these meetings, the Audit Committee is
informed of the annual and quarterly accounts
and issues of special interest. Further, the
Auditor reviews key aspects of the audit, any
material changes in the Company’s accounting
principles, comments on any material estimated
accounting figures and reports on all material
matters on which there has been disagreement
between the Auditor and the Executive
Personnel of the Company.
The Board and the Audit Committee will at least
once a year review the Company’s internal
control procedures relating to its financial
reporting process, including weaknesses
identified by the Auditor and proposals for
improvement, together with the Auditor.
The Board holds a meeting with the Auditor at
least once a year at which no representative
of the Executive Personnel present. The Board
also determines the right of the Executive
Personnel to use the Auditor for purposes other
than auditing.
The Auditor confirms his independence in
writing to the Audit Committee annually.
The Company does not deviate from Section 15
of the Code.
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
• Corporate Governance Report
Remuneration Report
07 Financial Report
08 ESG Report
Energy for a Changing World 08606 Sustainability • Corporate Governance Report
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
• Remuneration Report
07 Financial Report
08 ESG Report
Remuneration Report
BW LPG Remuneration Report 2023
This remuneration report (“Report”) provides an
overview of the remuneration received by each
member of the Board of Directors (“Board”)
and the Executive Management (“Executive
Management”) at BW LPG Limited (the
“Company”) for the financial year ending on 31
December 2023.
The overall objective of the remuneration
structure is to attract, motivate, and retain
skilled members of the Board of Directors and
the Executive Management. This stems from
the recognition that the Company’s future
growth and success are linked to the
performance of its leadership.
The Company’s executive remuneration
approach aims to encourage a strong and
sustainable performance-based culture, which
supports growth in shareholder value and
delivery of the Company’s strategy.
The information included in this Report was
derived from the audited annual report of the
Company for the financial year ending 31
December 2023. More information on the
description of the Board of Directors and
Executive Management is available on the
Company’s website.
01 Remuneration of the Board of Directors
02 Key Changes in the Composition of the Board of Directors
In accordance with the Company’s Bye-Laws,
the remuneration of the Directors shall be
determined by the Company at the Annual
General Meeting (AGM) and shall be deemed to
accrue from day to day. The Directors may also
be paid all travel, hotel and other expenses
properly incurred by them (or in the case of a
director that is a corporation, by their
representative or representatives) in attending
and returning from the meetings of the Board,
any committee appointed by the Board, general
meetings of the Company, or in connection
with the business of the Company or their
duties as Directors generally.
The members of the Board of Directors are
remunerated for their role and responsibilities
on the board. The remuneration of the
directors is not linked to the Company’s
performance and the directors do not receive
On 15 May 2023, Martha Kold Bakkevig stepped
down from the Board, and Luc Gillet was
appointed to the Board.
profit-related remuneration, share options or
retirement benefits from the Company. The
fees are reviewed each year and approved at
the Annual General Meeting. The fees in the
table below were approved at the Annual
General Meeting on 15 May 2023.
On 14 February 2024, Sanjiv Misra was
appointed to the Board.
Role Annual Fees
Chairman US$80,000
Board Members US$65,000
Audit Committee Chair US$10,000
Audit Committee Member US$5,000
Remuneration Committee Chair US$10,000
Remuneration Committee Member US$5,000
Nomination Committee Chair and
Member
US$2,500
Table 1: Annual remuneration to Board members
Energy for a Changing World 08706 Sustainability • Remuneration Report
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
• Remuneration Report
07 Financial Report
08 ESG Report
Remuneration Report
The current Board of Directors and their roles
are set out below:
The information of the Board members is
available on the Company’s website and in the
Annual Report.
Name Gender Position Independent
Andreas Sohmen-Pao
Male Board Chairman
Remuneration Committee Chair
No
Anne Grethe Dalane
Female Board Member
Audit Committee Chair
Yes
Sonali Chandmal
Female Board Member
Audit Committee Member
Yes
Andrew E. Wolff
Male Board Member Yes
Luc Gillet
Male Board Member
Remuneration Committee Member
Yes
Sanjiv Misra
Male Board Member
Audit Committee Member
No 1
Name and Position Board Member
Since
US$’000
Annual
Fee
Committee
Fees
Total
Andreas Sohmen-Pao, Chairman
Remuneration Committee Chairman
21 November 2013 80 10 90
Anne Grethe Dalane, Board Member
Audit Committee Chairwoman
21 November 2013 65 10 75
Sonali Chandmal, Board Member
Audit Committee Member
20 May 2020 65 5 70
Andrew E. Wolff, Board Member 20 May 2020 65 — 65
Luc Gillet, Board Member
Remuneration Committee Member
1
15 May 2023 32.5 2.5 35
Martha Kold Bakkevig, Board Member
Remuneration Committee Member
²
15 August 2017 32.5 2.5 35
Sanjiv Misra, Board Member
Audit Committee Member
3
14 February 2024 — — —
03
Board Remuneration in 2023
Table 3: Breakdown of remuneration to the Board of Directors for 2023
1
Appointed to the Board on 15 May 2023; 2023 fees have been pro-rated
2
Resigned from the Board on 15 May 2023; 2023 fees have been pro-rated
3
Appointed to the Board on 14 February 2024; no 2023 fees payable
1
BW Group board director
Table 2: Board of Directors as of 27 March 2024
Energy for a Changing World 08806 Sustainability • Remuneration Report
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
• Remuneration Report
07 Financial Report
08 ESG Report
Remuneration Report
04 Directors’ Share Ownership
05 Key Changes in the Composition of the Executive Management
06 Executive Management Remuneration in 2023
None of the Company’s directors hold shares in
the Company. BW Group Limited owns
48,407,126 shares of the Company, representing
34.6% of the outstanding shares. BW Group
Anders Onarheim stepped down as Chief
Executive Officer (CEO) on 30 September 2023.
Kristian Sørensen has been Deputy CEO and
Head of Strategy since his appointment on
1 September 2022, and on 1 October 2023,
stepped into position as CEO.
Elaine Ong stepped down as Chief Financial
Officer (CFO) on 26 May 2023, with Samantha
Xu appointed as CFO on 1 September 2023.
Pontus Berg stepped down as Executive Vice
President (Technical and Operations) on
31 January 2023.
The remuneration for Executive Management is
determined in accordance with the Guidelines
on Executive Remuneration, last updated
1 December 2022 and received at the Annual
Limited is owned by a Company controlled by
corporate interests associated with the
Sohmen family. Andreas Sohmen-Pao is a
member of the Sohmen family.
Prodyut Banerjee and Knut-Helge Knutsen
stepped into positions as Vice President
and Head of Operations, and Vice President
and Head of Technical respectively on
1 January 2023.
Iver Baatvik was appointed as Vice President
and Head of Corporate Development on
1 October 2023.
Niels Rigault stepped down as Executive Vice
President, Commercial on 9 January 2024.
The current members of the Executive
Management with responsibility for day-to-day
management of the business are set out below:
General Meeting on 15 May 2023. The guidelines
are accessible on the Company’s website
(https://www.bwlpg.com).
Name Position
Kristian Sørensen
Chief Executive Officer and Interim Head of Commercial
Samantha Xu
Chief Financial Officer
Prodyut Banerjee
Vice President and Head of Operations
Knut-Helge Knutsen
Vice President and Head of Technical
Iver Baatvik
Vice President and Head of Corporate Development
Table 4: Executive Management as at 27 March 2024
Energy for a Changing World 08906 Sustainability • Remuneration Report
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
• Remuneration Report
07 Financial Report
08 ESG Report
Remuneration Report
CEO 2023 (US$’000) 2022 (US$’000)
Fixed remuneration
• Base salary and allowances 766 729
• Pension contribution 20 14
Variable remuneration
• Annual performance bonus 699 553
• Long-term incentive 1,149 579
Total remuneration 2,634 1,875
Rest of Executive Management
(excluding CEO) 2023 (US$’000) 2022 (US$’000)
Fixed remuneration
• Base salary and allowances 1,399 1,324
• Pension contribution 66 33
Variable remuneration
• Annual performance bonus 470 585
• Long-term incentive 624 640
Total remuneration 2,559 2,582
Table 5: Breakdown of remuneration to the Executive Management
07
Fixed Remuneration
A) Base Salaries and Allowances
Base salaries are designed to compensate
employees for the roles, responsibilities that
they undertake, and the required competencies.
Therefore, base salary is set with the intention
to be competitive in the markets in which the
company operates (geographical and industry-
wise) in relation to each individual’s role and
capabilities. Base salaries are normally reviewed
once a year.
Fixed allowances designed to cover housing
and transportation costs are paid to eligible
members of the Executive Management.
B) Pension Contribution
Pension contributions commensurate with local
practice in the location of employment, namely
Singapore and Norway, on standard terms. No
additional pension contributions are provided.
Energy for a Changing World 09006 Sustainability • Remuneration Report
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
• Remuneration Report
07 Financial Report
08 ESG Report
Remuneration Report
08 Variable Remuneration
A) Annual Performance Bonus
The aggregate bonus pool available for payment
is determined with close reference to the
agreed Company targets and shareholder value
creation. The allocation of bonuses from the
bonus pool is closely related to the
performance of the employee against pre-
determined performance targets. Performance
targets for Executive Management are
determined and reviewed by the Remuneration
Committee in consultation with the full Board
of Directors.
Performance targets include both financial and
non-financial KPIs which are aligned with the
Company’s strategic objectives and approved
by the Board of Directors.
The 2023 Company strategic objectives and
KPIs are as follows:
Targets Weightage KPIs Rationale
Financial
Performance
55%
TCE (US$/day) Part of our strategy to secure long-term value for our
stakeholder involves making significant investments to
maximise returns on our current assets and to enable
savings. Achieving this requires successful execution of
our commercial and finance strategy.
ROCE
G&A
Fleet
Performance
30%
Vessel OPEX We continuously strive for operational excellence and an
energy efficient fleet as we transition and prepare for our
next-generation VLGCs. Compliance with long-term
emissions regulations must be business-sustainable as
we optimise our vessel performance in a safe manner
Speed and
Consumption
LTIF and TRCF
Sustainability 15%
Strategy Sustainability is incorporated into our corporate strategy.
We must engage in sustainable initiatives by assessing
both the internal and external ESG priorities, concerns,
and drivers of multiple stakeholders; identify where
critical risk areas and opportunities require attention;
and ascertain industry position and alignment within
broader market frameworks.
ESG Ratings
Table 6: 2023 Company Performance Targets
Energy for a Changing World 09106 Sustainability • Remuneration Report
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
• Remuneration Report
07 Financial Report
08 ESG Report
Remuneration Report
B) Long-Term Incentive Plan (LTIP)
The Board of Directors has established an
equity-settled, share-based compensation
plan for the Executive Management and other
key leading employees. The purpose of the
LTIP is to attract and retain a strong team,
and to align the interests of the team with
the shareholders.
The Executive Management is entitled to share
options, awarded each year in connection with
the publication of the quarterly report for Q4 of
the preceding year. The strike price for the
options shall be equal to the sum of (i) the
volume weighted average share price quoted
on the Oslo Stock Exchange in the first five
trading days following the announcement
of such quarterly report (VWAP), and (ii) 16%
of the VWAP.
The options will have a vesting period of three
years from being awarded and may then be
exercised in a period of three additional years.
The options are non-tradable and conditional
upon the option holder being employed by the
Company or its subsidiaries and not having
resigned or having been terminated for cause
prior to the vesting date.
Grants made under the LTIP are subject to BW
LPG’s Recoupment Policy. BW LPG may request
recoupment of the full amount awarded or paid
for, if within two years from the grant or
payment date of such incentive, the option
holder is found to have engaged in fraudulent,
intentional or gross negligent misconduct.
No grants have been reclaimed for the financial
year 2023.
The following options granted to the Executive
Management pursuant to the share-based
compensation plans and exercised during the
year 2023 is set out in the following table.
Executive
Management
Plan Award
Date
Vesting
Date
No. of Share Options
Exercised
Strike Price Per Share
(NOK)
Anders Onarheim 1
LTIP 2017 26.05.2020 26.05.2023 186,304 98.8964
Elaine Ong 2
LTIP 2017 28.02.2020 08.03.2023 85,200 32.5779
Niels Rigault 3
LTIP 2017 28.02.2020 08.03.2023 113,600 32.5779
Prodyut Banerjee
LTIP 2017 28.02.2020 08.03.2023 22,720 32.5779
Knut-Helge
Knutsen
LTIP 2017 28.02.2020 08.03.2023 22,720 32.5779
Table 7: Share Options exercised by Executive Management during year 2023
1
Stepped down as CEO on 30 September 2023
2
Stepped down as CFO on 26 May 2023
3
Stepped down as Executive Vice President, Commercial on 9 January 2024
Energy for a Changing World 09206 Sustainability • Remuneration Report
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
• Remuneration Report
07 Financial Report
08 ESG Report
Remuneration Report
Executive
Management
Plan Award
Date
Vesting
Date
Exercise
Period
No. of
Share
Options
Awarded
Strike
Price Per
Share on
Award
(NOK)
No. of
Shares
Held
Kristian Sørensen
LTIP 2022 28.02.2023 28.02.2026 28.02.2026 –
28.02.2029
120,647 109.7758 5,000
LTIP 2022 01.10.2023 28.02.2026 01.10.2026 –
01.10.2029
100,000 139.0949
Samantha Xu
— — — — — — —
Prodyut Banerjee
LTIP 2017 01.03.2021 01.03.2024 01.03.2024 –
01.03.2027
22,720 56.9800 —
LTIP 2022 01.03.2022 01.03.2025 01.03.2025 –
01.03.2028
24,840 63.1540
LTIP 2022 28.02.2023 28.02.2026 28.02.2026 –
28.02.2029
50,812 109.7758
Knut-Helge
Knutsen
LTIP 2017 01.03.2021 01.03.2024 01.03.2024 –
01.03.2027
22,720 56.9800 —
LTIP 2022 01.03.2022 01.03.2025 01.03.2025 –
01.03.2028
24,840 63.1540
LTIP 2022 28.02.2023 28.02.2026 28.02.2026 –
28.02.2029
50,812 109.7758
Iver Baatvik
LTIP 2022 01.03.2022 01.03.2025 01.03.2025 –
01.03.2028
24,840 63.1540 —
LTIP 2022 28.02.2023 28.02.2026 28.02.2026 –
28.02.2029
24,840 109.7758
Table 8: Share Options due to the Executive Management as of 31 December 2023
As of 31 December 2023, the number of options granted to the Executive Management pursuant to
the share-based compensation plans, and not yet exercised is set out in the following table.
Energy for a Changing World 09306 Sustainability • Remuneration Report
BW LPG Integrated
Annual Report 2023
09 Other benefits
10 Termination
The Executive Management are offered
customary employee benefits such as mobile
phone, internet, parking, medical and business
travel insurance. These benefits are not
significant in relation to the remuneration set
out in this Report.
Members of the Executive Management are
employed on individual contracts which are
generally entered into on an indefinite term
with a mutual right of termination. There are no
enhanced termination payment provisions
The Executive Management are also protected
by Directors’ and Officers’ insurance in relation
to their roles and their service on the subsidiary
boards of the BW LPG Group.
except for payments that are required to be
paid in accordance with local laws and
regulations. Severance payments will deviate by
position on a case-by-case basis.
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
Approach
ESG Governance Structure
Sustainability Standards,
Frameworks and Reporting
Risk Management
Enterprise Risk Management
(ERM) Risks 2023
Materiality
Environment
Responsible Transition
Environmental Impact
Management
Highlights
Social
Conducive Workplace
Talent Management
Highlights
Governance
Operational Excellence
Highlights
Engagements
Shipping Industry
Engagements and
Commitments
Local Community
Stakeholder Engagement
Corporate Governance Report
• Remuneration Report
07 Financial Report
08 ESG Report
Remuneration Report
Energy for a Changing World 09406 Sustainability • Remuneration Report
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
Board of Directors’ Report
Responsibility Statement
Financial Statements
Consolidated Financial
Statements
Parent Company Financial
Statements
08 ESG Report
07 Financial Report
Energy for a Changing World 09507 Financial Report
BW LPG Integrated
Annual Report 2023
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
• Board of Directors’ Report
Responsibility Statement
Financial Statements
Consolidated Financial
Statements
Parent Company Financial
Statements
08 ESG Report
Board of Directors’ Report
Financial Performance
2023 was a good year for the LPG market,
with BW LPG delivering historic returns for
some quarters. While spot rates corrected
down sharply in early 2024, the underlying
fundamentals for LPG remain sound due to
strong underlying drivers mentioned earlier
in this report.
On the shipping side, we are pleased to report
an increase in our Time-Charter Equivalent
(TCE) income, from US$568 million in 2022 to
US$797 million in 2023. Average VLGC TCE
earnings was US$61,600 per calendar day in
2023 versus US$40,600 per calendar day in
2022. BW LPG’s net profit after tax (NPAT) was
US$493 million in 2023 versus US$239 million
in 2022, with an increase in ROCE and ROE to
24% and 31% in 2023 from 12% and 16%
respectively in 2022. The increase in NPAT and
returns from 2023 were mainly driven by our
higher TCE income. We continued to divest our
older fleet at attractive prices and recognised
a US$42 million gain on disposal.
Our trading business also returned good results
during its inaugural expanded year, handling 3.4
million metric tonnes of LPG. This generated a
gross profit of US$26 million and net profit after
tax of US$1 million. We added two medium gas
carriers (MGCs) to the fleet, allowing us to tap
into new markets beyond the VLGC segment.
Beyond commercial benefits such as expanded
business opportunities and enhanced fleet
utilisation, our presence in trading has allowed a
more nuanced understanding of the LPG
market dynamics.
Our infrastructure business made significant
progress in 2023, with concurrent strategic
moves valued at over US$40 million. We formed
a Joint Venture with Confidence Petroleum,
a premier private energy player in India, and as
its first project, we announced plans to build a
state-of-the-art LPG storage terminal together
with Ganesh Benzoplast outside Mumbai, India.
We also agreed to invest in Confidence
Petroleum to boost its downstream business
expansion. This is the company’s first foray into
shore-based infrastructure, and is a testament
to the company’s corporate agility and
capability to seize new business opportunities.
In August, we announced plans for a dual-listing
in the US. As of the writing of this report, the
Company is making good progress towards a
listing in early 2024. With our strong expected
financial returns and an attractive dividend
policy, we anticipate good interest from a
broader group of US investors.
Safety
Safety is a fundamental priority at BW LPG,
and the Board is conscious that safety
performance is a continuous process. BW LPG
has programmes to cultivate and emphasise
a “Zero Harm” safety culture on shore and
at sea. In 2023, our LTIF (Lost Time Injury
Frequency) and TRCF (Total Recordable Case
Frequency) were both 0.16. There were zero
fatalities and zero port state detentions. We
thank all crew and onshore employees for their
continued focus on keeping team members
safe at work.
Andrew E. Wolff
Director
Sonali Chandmal
Director
Andreas Sohmen
-
Pao
Chairman
Sanjiv Misra
Director
Luc Gillet
Director
Anne Grethe Dalane
Director
Energy for a Changing World 09607 Financial Report • Board of Directors’ Report
BW LPG Integrated
Annual Report 2023
Sustainability
This year, we continue with our Integrated
Annual Report which combines the Company’s
Annual Report and Sustainability Report to
provide key highlights and updates on financial
and non-financial performance. This report
broadly aligns itself with major international
reporting frameworks and includes progress
and performance in the context of activities
relating to environmental, social and
governance considerations for the financial year
ended 31 December 2023.
We continue to play our part to support global
energy security and the global clean energy
transition. In 2023, we owned and operated 17
LPG-powered VLGCs, and they deliver LPG with
the lowest emissions profile for long haul
voyages. LPG propulsion is a key part of our
decarbonisation roadmap and represents our
conviction that LPG is part of the solution for
the transition towards a low carbon future.
Corporate Governance
BW LPG’s commitment to good governance
takes in to account standards of Corporate
Governance in the Norwegian Code of Practice
for Corporate Governance (the “Code”).
Deviations from the Code are addressed in the
corporate governance section of this Annual
Report. The Board held four meetings in 2023.
Risk
BW LPG is exposed to various market,
operational, financial and climate-related risks.
The most significant risks are set out in the IPO
(Initial Public Offering) prospectus issued in
November 2013. That document and other
information on risks are available on the
Company’s website at https://www.bwlpg.com.
BW LPG employs an enterprise-wide risk
assessment process to analyse and evaluate
risk exposures and to allocate appropriate
resources to risk mitigation activities.
BW LPG’s risk mitigation activities consider
the unpredictability of shipping and financial
markets, and the growing demand for climate
action. BW LPG’s main risks relate to the
inherently cyclical nature of the shipping
industry and the consequent inherent volatility
of financial performance; the potential for
oversupply of shipping capacity to negatively
impact freight rates and asset values; the
dependence on continued export volumes
of relevant hydrocarbons to maintain demand
for shipping; and the rapidly developing
regulatory controls and technology to meet
the industry’s decarbonisation targets.
BW LPG has also purchased and maintains
a Directors and Officers Liability Insurance
issued by a reputable, specialised insurer
with appropriate rating.
Parent Company Accounts
Vessels and related assets, as well as external
debt financing, are held in subsidiary
companies within BW LPG Limited. The
investment holding company reported a profit
of US$431 million for 2023, compared to a profit
of US$190 million in 2022. The variance is
primarily related to higher dividend income in
2023, offset by foreign currency exchange loss
mainly attributable to foreign currency
denominated intercompany balances with a
Company’s subsidiary. Total assets were
US$1,148 million as of 31 December 2023
compared to US$1,186 million in 2022. Total
shareholders’ equity in BW LPG Limited as of
31 December 2023, was US$1,144 million.
Going Concern
In light of BW LPG’s liquidity position, balance
sheet strength, assets, employment, and
continuing cash flow from operations, the Board
confirms that the going concern assumption,
upon which BW LPG’s accounts are prepared,
continues to apply.
Board of Directors’ Report
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
• Board of Directors’ Report
Responsibility Statement
Financial Statements
Consolidated Financial
Statements
Parent Company Financial
Statements
08 ESG Report
Energy for a Changing World 09707 Financial Report • Board of Directors’ Report
BW LPG Integrated
Annual Report 2023
Responsibility Statement
We confirm that, to the best of our knowledge, the financial statements for the year 1 January to 31
December 2023 have been prepared in accordance with current applicable accounting standards,
and give a true and fair view of the assets, liabilities, financial position and profit or loss of the
Group and the Company taken as a whole. We also confirm that the Board of Directors’ Report
includes a true and fair view of the development and performance of the business and the position
of the Group and the Company, together with a description of the principal risks and uncertainties
facing the Group and the Company.
Andrew E. Wolff
Director
Sanjiv Misra
Director
Andreas Sohmen-Pao
Chairman
Luc Gillet
Director
Sonali Chandmal
Director
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
Board of Directors’ Report
• Responsibility Statement
Financial Statements
Consolidated Financial
Statements
Parent Company Financial
Statements
08 ESG Report
Anne Grethe Dalane
Director
Energy for a Changing World 09807 Financial Report • Responsibility Statement
BW LPG Integrated
Annual Report 2023
Independent Auditors’ Report 100
Consolidated Statement of Comprehensive Income 105
Consolidated Balance Sheet 107
Consolidated Statement of Changes in Equity 108
Consolidated Statement of Cash Flows 110
Notes to the Consolidated Financial Statements 113
Consolidated Financial Statements (For The Financial Year Ended 31 December 2023)
Financial Statements
BW LPG Limited (Incorporated in Bermuda) and its Subsidiaries
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
Board of Directors’ Report
Responsibility Statement
• Financial Statements
• Consolidated Financial
Statements
Parent Company Financial
Statements
08 ESG Report
Energy for a Changing World 09907 Financial Report • Financial Statements
BW LPG Integrated
Annual Report 2023
KPMGLLP
12MarinaView#15‐01
AsiaSquareTower2
Singapore018961
Telephone+6562133388
Fax+6562250984
Internetwww.kpmg.com.sg
100
KPMG LLP (Registration No. T08LL1267L), an accounting limited
liability partnership registered in Singapore under the Limited
LiabilityPartnershipsAct 2005 and a member firmof the KPMG
global organization ofindependentmember firms affiliatedwith
KPMGInternationalLimited,aprivateEnglishcompanylimitedby
guarantee.
INDEPENDENT AUDITORS’ REPORT
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF BW LPG LIMITED
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of BW LPG Limited (“the Company”) and its subsidiaries (“the
Group”). The financial statements comprise:
The balance sheet of the Company as at 31 December 2023, the statements of comprehensive income,
changes in equity and cash flows for the year then ended, and notes, comprising material accounting
policies and other explanatory information.
The consolidated balance sheet of the Group as at 31 December 2023, the consolidated statements of
comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising
material accounting policies and other explanatory information.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial
position of the Company and the Group as of 31 December 2023, and their financial performance and cash
flows for the year then ended in accordance with IFRS Accounting Standards as issued by the International
Accounting Standards Board (IFRS Accounting Standards).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our responsibilities
under those standards are further described in the
Auditors’ Responsibilities for the Audit of the Financial
Statements
section of our report. We are independent of the Company and the Group in accordance with the
International Ethics Standards Board for Accountants
International Code of Ethics for Professional Accountants
(including International Independence Standards)
(“IESBA Code”) and the Accounting and Corporate
Regulatory Authority
Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities
(“ACRA Code”) together with the ethical requirements that are relevant to our audit of the financial statements
in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements,
the IESBA Code and the ACRA code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Key Audit Matter
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
INDEPENDENT AUDITORS’ REPORT
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF BW LPG LIMITED (continued)
101
Sufficiency of audit evidence on determining the timing of cargo sales revenue recognition
As discussed in Notes 2(b)(2) and 3 to the consolidated financial statements, the Company reported revenue
from cargo sales of $1,728,894 (US$'000) for the year ended 31 December 2023. The Company recognises
revenue from cargo sales at the point in time when the performance obligations have been satisfied, which
is when control of the cargo is transferred to the customer.
We identified the sufficiency of audit evidence on determining the timing of cargo sales revenue recognition
as a key audit matter. This matter requires significant auditors’ judgement to determine the nature and extent
of procedures to perform on cargo sales to evaluate the indicators of when the transfer of control to the
customer occurs that impact the timing of revenue recognition.
The following are the primary procedures we performed to address this key audit matter. For a selection of
cargo sale transactions, we assessed the timing of revenue recognition by (1) examining the contracts to
evaluate the impact of the terms and conditions on the timing of revenue recognition; (2) comparing the
timing of transfer of control from the terms and conditions in the contracts with the underlying original
documents including invoices; (3) developing expectations of the revenue recognized based on the underlying
original documents and compared them to the amounts recorded by the Company. In addition, we evaluated
the sufficiency of audit evidence obtained by assessing the results of procedures performed. No significant
matters were noted from our procedures.
Other Information
Management is responsible for the other information. The other information comprises all information
included in the annual report, but does not include the financial statements and our auditors’ report thereon.
We have obtained all other information prior to the date of this auditors’ report.
Our opinion on the financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based
on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with IFRS Accounting Standards, and for such internal control as Management determines is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, Management is responsible for assessing the Company’s and the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless Management either intends to liquidate the Company or the
Group or to cease operations, or has no realistic alternative but to do so.
INDEPENDENT AUDITORS’ REPORT
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF BW LPG LIMITED (continued)
102
Responsibilities of Management and Those Charged with Governance for the Financial Statements
(continued)
Those charged with governance are responsible for overseeing the Company’s and the Group’s financial
reporting process.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional
skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s or the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by Management.
Conclude on the appropriateness of Management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s or the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditors’ report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditors’ report. However, future events or conditions may cause the Company or the Group
to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements. We
are responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal controls
that we identify during our audit.
INDEPENDENT AUDITORS’ REPORT
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF BW LPG LIMITED (continued)
103
Auditors’ Responsibilities for the Audit of the Financial Statements
(continued)
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate
threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
INDEPENDENT AUDITORS’ REPORT
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF BW LPG LIMITED (continued)
104
Report on Other Legal and Regulatory Requirements
Report on Compliance with Regulation on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of BW LPG Limited we have performed an assurance
engagement to obtain reasonable assurance about whether the financial statements included in the annual
report, with the file name “5493006WBEME88YFDW23-2023-12-31-en” (the “ESEF file”) , have been prepared,
in all material respects, in compliance with the requirements of the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5
of the Norwegian Securities Trading Act, which includes requirements related to the preparation of the annual
report in XHTML format, and iXBRL tagging of the consolidated financial statements.
In our opinion, the financial statements, included in the annual report, have been prepared, in all material
respects, in compliance with the ESEF regulation.
Management’s Responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF regulation.
This responsibility comprises an adequate process and such internal control as Management determines is
necessary.
Auditors’ Responsibilities
Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all material
respects, the financial statements included in the annual report have been prepared in compliance with ESEF.
We conduct our work in compliance with the International Standard for Assurance Engagements (ISAE) 3000
– “Assurance engagements other than audits or reviews of historical financial information”. The standard
requires us to plan and perform procedures to obtain reasonable assurance about whether the financial
statements included in the annual report have been prepared in compliance with the ESEF Regulation.
As part of our work, we have performed procedures to obtain an understanding of the Company’s processes
for preparing the financial statements in compliance with the ESEF Regulation. We examine whether the
financial statements are presented in XHTML-format. We evaluate the completeness and accuracy of the iXBRL
tagging of the consolidated financial statements and assess Management’s use of judgement. Our procedures
include reconciliation of the iXBRL tagged data with the audited financial statements in human-readable
format. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
The engagement partner on the audit resulting in this independent auditors’ report is Ong Li Qin.
KPMG LLP
Public Accountants and
Chartered Accountants
Singapore
27 March 2024
BW LPG LIMITED
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the financial year ended 31 December 2023
The accompanying notes form an integral part of these consolidated financial statements.
105
2023
2022
Note
US$’000
US$’000
Revenue - Shipping
3
Revenue - Product Services
3
Cost of cargo and delivery expenses - Product Services
4
(1,547,059 )
(640,554 )
Voyage expenses - Shipping
4
(509,340 )
(350,016 )
Vessel operating expenses
4
(82,192 )
(93,428 )
Time charter contracts (non-lease components)
4
(20,350 )
(19,506 )
General and administrative expenses
4
(56,773 )
(31,916 )
Charter hire expenses
4
(30,712 )
(16,427 )
Finance lease income
Other operating (expense)/income - net
(993 )
Depreciation
8
(217,121 )
(158,815 )
Amortisation of intangible assets
(762 )
(610 )
Gain on disposal of vessels
Loss on derecognition of right-of-use assets (vessels)
(961 )
Write-back of impairment charge on vessels
8
Operating profit
Foreign currency exchange loss net
(345 )
(814 )
Interest income
Interest expense
(27,304 )
(29,773 )
Other finance expenses
(2,237 )
(2,538 )
Finance expenses - net
(19,765 )
(31,184 )
Profit before tax
Income tax expense
7(a)
(10,965 )
(1,071 )
Profit after tax
BW LPG LIMITED
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (continued)
For the financial year ended 31 December 2023
The accompanying notes form an integral part of these consolidated financial statements.
106
2023
2022
Note
US$’000
US$’000
Other comprehensive (loss)/income:
Items that may be reclassified subsequently to profit or loss:
Cash flow hedges
- fair value (loss)/gain
(102,297 )
- reclassification to profit or loss
(3,248 )
Currency translation reserve
Other comprehensive (loss)/income, net of tax
(49,985 )
Total comprehensive income
Profit attributable to:
Equity holders of the Company
Non-controlling interests
Total comprehensive income:
Equity holders of the Company
Non-controlling interests
Earnings per share attributable to the equity holders of the
Company:
(expressed in US$ per share)
Basic/Diluted earnings per share
6
BW LPG LIMITED
AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
As at 31 December 2023
The accompanying notes form an integral part of these consolidated financial statements.
107
2023
2022
Note
US$’000
US$’000
Intangible assets
Investment in joint venture
Derivative financial instruments
13
Finance lease receivables
9
Other receivables
11
Deferred tax assets
7(c)
Total other non-current assets
Vessels and dry docking
8
Right-of-use assets (vessels)
8
Other property, plant and equipment
8
Property, plant and equipment
Total non-current assets
Inventories
10
Trade and other receivables
11
Equity financial assets, at fair value
Derivative financial instruments
13
Finance lease receivables
9
Assets held-for-sale
12
Cash and cash equivalents
14
Total current assets
Total assets
Share capital
15
Share premium
15
Treasury shares
15
(56,438 )
(47,631 )
Contributed surplus
Other reserves
(56,494 )
(9,777 )
Retained earnings
Non-controlling interests
Total shareholders’ equity
Borrowings
16
Lease liabilities
17
Derivative financial instruments
13
Total non-current liabilities
Borrowings
16
Lease liabilities
17
Derivative financial instruments
13
Current income tax liabilities
7(b)
Trade and other payables
18
Total current liabilities
Total liabilities
Total equity and liabilities
BW LPG LIMITED
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the financial year ended 31 December 2023
The accompanying notes form an integral part of these consolidated financial statements.
108
Attributable to equity holders of the Company
Note
Share
capital
Share
premium
Treasury
shares
Contributed
surplus
Capital
reserve
Hedging
reserve
Share-
based
payment
reserve
Currency
translation
reserve
Other
reserves
Retained
earnings
Total
Non-
controlling
interest
Total
equity
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
Balance at 1 January 2023
(47,631 )
(36,259 )
(761 )
Profit after tax
Other comprehensive(loss)/
income
(52,319 )
(51,139 )
(49,985 )
Total comprehensive
(loss)/income
(52,319 )
Share-based payment reserve
- Value of employee services
Purchases of treasury shares
15
(23,698 )
(23,698 )
(23,698 )
Share options exercised
15
(2,919 )
Shares cancellation
15
(19 )
(3,959 )
(8,237 )
Dividends paid
23
(405,493 )
(405,493 )
(27,607 )
(433,100 )
Others
(825 )
Total transactions with owners,
recognised directly in equity
(19 )
(3,959 )
(8,807 )
(417,474 )
(425,837 )
(27,607 )
(453,444 )
Balance at 31 December 2023
(56,438 )
(36,259 )
(27,542 )
BW LPG LIMITED
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (continued)
For the financial year ended 31 December 2023
The accompanying notes form an integral part of these consolidated financial statements.
109
Attributable to equity holders of the Company
Note
Share
capital
Share
premium
Treasury
shares
Contributed
surplus
Capital
reserve
Hedging
reserve
Share-
based
payment
reserve
Currency
translation
reserve
Other
reserves
Retained
earnings
Total
Non-
controlling
interest
Total
equity
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
Balance at 1 January 2022
(23,294 )
(36,259 )
(6,669 )
(2,624 )
Profit after tax
Other comprehensive income
Total comprehensive income
Share-based payment reserve
- Value of employee services
Purchases of treasury shares
15
(27,661 )
(27,661 )
(27,661 )
Share options exercised
15
(153 )
(1,833 )
Dividends paid
23
(126,705 )
(126,705 )
(126,705 )
Acquisition of subsidiary with non-
controlling interests
24
Changes in non-controlling interests
arising from changes of interests
in subsidiary
25
(4,343 )
(4,343 )
Others
(36 )
(36 )
(33 )
(69 )
Total transactions with owners,
recognised directly in equity
(24,337 )
(1,869 )
(131,048 )
(156,035 )
(61,398 )
Balance at 31 December 2022
(47,631 )
(36,259 )
(761 )
BW LPG LIMITED
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASHFLOWS
For the financial year ended 31 December 2023
The accompanying notes form an integral part of these consolidated financial statements.
110
2023
2022
Note
US$’000
US$’000
Cash flows from operating activities
Profit before tax
Adjustments for:
- amortisation of intangible assets
- depreciation charge
8
- gain on disposal of vessels
8
(42,374 )
(21,110 )
- loss/(gain) on derecognition of right-of-use assets
(vessels)
- write-back of impairment charge on vessels
8
(1,470 )
- interest income
(10,121 )
(1,941 )
- interest expense
- other finance expense
- share-based payments
- finance lease income
(278 )
(585 )
Changes in working capital:
- inventories
(52,660 )
(51,210 )
- trade and other receivables
(112,648 )
- trade and other payables
- derivative financial instruments
(3,061 )
- margin account held with broker
(66,384 )
Total changes in working capital
(182,052 )
Tax paid
7(b)
(5,367 )
(730 )
Net cash from operating activities
Cash flows from investing activities
Additions in property, plant and equipment
(116,045 )
(46,192 )
Progress payments for vessel upgrades and dry
docks
1
Additions in intangible assets
(634 )
(103 )
Purchase of equity financial asset, at FVPL
(21 )
Proceeds from sale of assets held-for-sale
Proceeds from sale of vessels
Investment in joint venture
(301 )
Repayment of finance lease receivables
9
Interest received
Acquisition of subsidiary, net of cash acquired
24
(48,588 )
Net cash from investing activities
1
BW LPG LIMITED
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASHFLOWS (continued)
For the financial year ended 31 December 2023
The accompanying notes form an integral part of these consolidated financial statements.
111
2023
2022
Note
US$’000
US$’000
Cash flows from financing activities
Proceeds from bank borrowings
Payment of financing fees
(109 )
Repayments of bank borrowings
(171,659 )
(389,103 )
Payment of lease liabilities
17
(93,513 )
(54,181 )
Interest paid
(24,864 )
(24,857 )
Other finance expense paid
(1,652 )
(1,586 )
Purchase of treasury shares
(23,698 )
(26,323 )
Drawdown of trust receipts
Repayment of trust receipts
(989,884 )
(306,856 )
Dividend payment
23
(405,493 )
(126,705 )
Dividend payment to non-controlling interests
(27,607 )
Contributions from non-controlling interests
25
Net cash used in financing activities
(645,290 )
(522,100 )
Net (decrease)/increase in cash and cash equivalents
(63,359 )
Cash and cash equivalents at beginning of the financial year
Cash and cash equivalents at end of the financial year
14
Reconciliation of liabilities arising from financing activities
Borrowings
Lease
liabilities
Interest
rate
swaps
1
US$’000
US$’000
US$’000
At 1 January 2023
Cash changes:
Proceeds from bank borrowings and trust receipts
Principal and interest (payments)/receipts
(1,188,352 )
(100,610 )
(95,272 )
(100,610 )
Non-cash changes:
Interest expense/(income)
(9,042 )
Changes in fair value of interest rate swaps
Additions to lease liabilities
Lease modifications
Disposal
(41,852 )
(8,363 )
At 31 December 2023
1
BW LPG LIMITED
AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASHFLOWS (continued)
For the financial year ended 31 December 2023
The accompanying notes form an integral part of these consolidated financial statements.
112
Reconciliation of liabilities arising from financing activities (continued)
Borrowings
Lease
liabilities
Interest
rate
swaps
1
US$’000
US$’000
US$’000
At 1 January 2022
Cash changes:
Proceeds from bank borrowings and trust receipts
Principal and interest payments
(712,610 )
(59,137 )
(3,250 )
(385,099 )
(59,137 )
(3,250 )
Non-cash changes:
Interest expense
Changes in fair value of interest rate swaps
(14,142 )
Additions to lease liabilities
Lease modifications
Acquisition of subsidiary
(10,890 )
At 31 December 2022
1
Interest rate swaps are hedged against certain portions of bank borrowings.
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
113
These notes form an integral part of and should be read in conjunction with the accompanying consolidated
financial statements.
1. General information
in Bermuda . The address of its registered office is c/o Inchona Services Limited, Washington Mall
The principal activity of the Company is that of investment holding . The principal activities of its
subsidiaries are ship owning, chartering and LPG trading (note 26).
These consolidated financial statements were authorised for issue by the Board of Directors of the
Company on 27 March 2024.
2. Material accounting policies
(a) Basis of preparation
as disclosed in the accounting policies below.
The Group identified and corrected certain immaterial errors with respect to the comparative
information for the year ended 31 December 2022. See note 28 for further disclosures.
New standards, amendments to published standards and interpretations, adopted by the
Group
The Group has adopted all the relevant new standards, amendments and interpretations to
published standards as of 1 January 2023.
The adoption of these new standards, amendments, and interpretations to published
standards does not have a material impact on the consolidated financial statements.
Critical accounting estimates, assumptions and judgements
The preparation of the consolidated financial statements in conformity with IFRS requires
Management to exercise its judgement in the process of applying the Group’s accounting
policies. It also requires the use of certain critical accounting estimates and assumptions.
Estimates, assumptions and judgements are continually evaluated and are based on
historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
The following is a summary of estimates and assumptions which have a material effect.
(1) Useful life and residual value of assets
The Group reviews the useful life and residual value of its vessels at the balance
sheet date and any adjustments are made on a prospective basis. Residual value
is estimated as the lightweight tonnage (LWT) of each vessel multiplied by the
scrap steel price per LWT, referenced against historical average price. If estimates
of the residual values are revised, the amount of depreciation charge in the future
years will be changed.
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
114
2. Material accounting policies (continued)
(a) Basis of preparation (continued)
Critical accounting estimates, assumptions and judgements
(continued)
(1) Useful life and residual value of assets (continued)
The useful lives of the vessels are assessed periodically based on the condition
of the vessels, market conditions and other regulatory requirements. If the
estimates of useful lives for the vessels are revised or there is a change in useful
lives, the amount of depreciation charge recorded in future years will be
changed.
(2) Impairment
The Group assesses at the balance sheet dates whether there is any objective
evidence or indication that the values of the intangible assets, and property, plant
and equipment may be impaired. If any such indication exists, the Group will
estimate the recoverable amount of the asset, and write down the asset to the
recoverable amount. The assessment of the recoverable amounts of the vessels
is based on the higher of fair value less cost to sell and value-in-use calculations,
with each vessel being regarded as one cash generating unit. The recoverable
amount of vessels is estimated predominantly based on independent third party
broker valuations.
Changes to these brokers’ estimates may significantly impact the impairment
charges recognised and future changes may lead to reversals of currently
recognised impairment charges.
See note 8(b) for further disclosures.
(3) Revenue recognition
All voyage revenues are recognised on a percentage of completion basis. Load-
to-discharge basis is used in determining the percentage of completion for all
spot voyages (including voyages servicing contracts of affreightment). Under this
method, spot voyage revenue is recognised rateably over the period from the
point of loading of the current voyage to the point of discharge of the current
voyage.
Management uses its judgement in estimating the total number of days of a
voyage based on historical trends, the operating capability of the vessel (speed
and fuel consumption) and the distance of the trade route. Actual results may
differ from estimates.
(b) Revenue and income recognition
Revenue comprises the fair value of the consideration received or receivable for the
rendering of services in the ordinary course of the Group’s activities, net of rebates,
discounts, off-hire charges and after eliminating sales within the Group.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
115
2. Material accounting policies (continued)
(b) Revenue and income recognition (continued)
(1) Rendering of services
Revenue from time charters accounted for as operating leases is recognised in
accordance with IFRS 16 in profit or loss on a straight-line basis over the lease
term. Apart from the lease, performance obligations include non-lease
components attributable to the bareboat charter and the operation of the vessel
which are accounted for as service revenue under IFRS 15. This revenue is
recognised “over time” as the customer is simultaneously receiving and
consuming the benefits of the service. Revenues are allocated to each
performance obligation based on its relative standalone selling price, generally
determined based on prices charged to customers. Non-lease components are
not separately disclosed as they are considered not material to understand the
Group operations.
Revenue from spot voyages is recognised rateably over the estimated length of
the voyage on a load-to-discharge basis within the respective reporting period.
Voyage expenses are capitalized between the discharge port of the immediately
previous cargo, or contract date if later, and the load port of the cargo to be
chartered if they qualify as fulfilment costs. The performance obligations for
voyage revenue are satisfied over time from when the vessel is ready at the
load port to the point of cargo delivery at the discharge port. No additional
disclosures in relation to the incremental cost of obtaining the contract and the
remaining performance obligation with an original duration of one year or less
are made as the Group has applied the practical expedients available in the
standard. Additionally, as the Group typically receives payments within one year
from the start of the voyage, there are no additional disclosures made.
Demurrage revenue represents a variable consideration and is recognised as
revenue from spot voyages based on percentage of completion, consistent with
the basis of recognising voyage freight revenue and is assessed at a percentage
of the total estimated claims issued to customers. The estimation of this rate is
based on the historical actual demurrage recovered over the total estimated
claims issued to customers.
(2) Product Services – cargo sales
Revenue from the sale of goods is recognised at the point in time when the
performance obligations have been satisfied, which is when control of the cargo
is transferred to the customer. Revenue is measured based on consideration
specified in the contract with a customer, which also includes the provision of
services (shipping and insurance) when goods are sold on a CFR or CIF basis,
which means that the Group is responsible (acts as principal) for providing
shipping services, and in some instances, insurance after the date at which
control of goods passes to the customer at the loading port. The Group, therefore,
has separate performance obligations for freight and insurance services that are
provided to facilitate the sale of commodities. The Group does not disclose sales
revenue from freight and insurance services separately as these are not
considered necessary in order to understand the economic impact on the Group
and are analysed by the chief operation decision maker within the “Product
Services” segment. The same recognition and presentation principles apply to
revenues arising from physical settlement of forward sale contracts that do not
meet the own use exemption. See note 2(y).
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
116
2. Material accounting policies (continued)
(b) Revenue and income recognition (continued)
(3) Interest income
Interest income is recognised on a time proportion basis using the effective
interest method.
(c) Group accounting
(1) Subsidiaries
(i) Consolidation
Subsidiaries are entities (including special purpose entities) over which
the Group has control. The Group controls an entity when the Group is
exposed to, or has rights to, variable returns from its involvement with
the entity and has the ability to affect those returns through its power
over the entity. Subsidiaries are fully consolidated from the date on which
control is transferred to the Group. They are de-consolidated from the date
on which control ceases.
In preparing the consolidated financial statements, transactions, balances
and unrealised gains on transactions between group companies are
eliminated. Unrealised losses are also eliminated but are considered an
impairment indicator of the asset transferred. Where necessary,
adjustments are made to the financial statements of subsidiaries to
ensure the consistency of accounting policies with those of the Group.
Non-controlling interests are part of the net results of operations and of
net assets of a subsidiary attributable to the interests which are not owned
directly or indirectly by the equity holders of the Company. They are
shown separately in the consolidated statement of comprehensive
income, statement of changes in equity and balance sheet. Total
comprehensive income is attributed to the non-controlling interests based
on their respective interests in a subsidiary, even if this results in the non-
controlling interests having a deficit balance.
(ii) Acquisitions
The Group uses the acquisition method of accounting to account for
business combinations.
The consideration transferred for the acquisition of a subsidiary or business
comprises the fair value of the assets transferred, the liabilities incurred,
and the equity interests issued by the Group.
The consideration transferred also includes any contingent consideration
arrangement and any pre-existing equity interest in the subsidiary
measured at their fair value at the acquisition date.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
117
2. Material accounting policies (continued)
(c) Group accounting (continued)
(1) Subsidiaries (continued)
(ii) Acquisitions
(continued)
If the business combination is achieved in stages, the acquisition date
carrying value of the acquirer’s previously held equity interest in the
acquiree is re-measured to fair value at the acquisition date, and any gains
or losses arising from such re-measurement are recognised in profit or
loss.
Acquisition-related costs are expensed as incurred.
Identifiable assets acquired and liabilities and contingent liabilities
assumed in a business combination are, with limited exceptions,
measured initially at their fair values at the acquisition date.
On an acquisition-by-acquisition basis, the Group recognises any non-
controlling interest in the acquiree at the date of acquisition either at fair
value or at the non-controlling interest’s proportionate share of the
acquiree’s net identifiable assets.
The excess of (i) the consideration transferred, the amount of any non-
controlling interest in the acquiree, and the acquisition-date fair value of
any previous equity interest in the acquiree over (ii) the fair values of the
identifiable net assets acquired, is recorded as goodwill.
The excess of: (i) fair value of the net identifiable assets acquired over
the (ii) consideration transferred; the amount of any non-controlling
interest in the acquiree; and the acquisition-date fair value of any
previous equity interest in the acquiree; is recorded in the profit or loss
during the period when it occurs.
The Group has an option to apply a “concentration test” that permits a
simplified assessment of whether an acquired set of activities and assets
is not a business. The optional concentration test is met if substantially all
of the fair value of the gross assets acquired is concentrated in a single
identifiable asset or group of similar identifiable assets.
(iii) Disposals
When a change in the Group’s ownership interest in a subsidiary results
in a loss of control over the subsidiary, the assets and liabilities of the
subsidiary including any goodwill are derecognised. Amounts previously
recognised in other comprehensive income in respect of that entity are
also reclassified to profit or loss or transferred directly to retained
earnings if required by a specific standard.
Any retained equity interest in the entity is remeasured at fair value. The
difference between the carrying amount of the retained interest at the
date when control is lost and its fair value is recognised in profit or loss.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
118
2. Material accounting policies (continued)
(c) Group accounting (continued)
(2) Transactions with non-controlling interests
Changes in the Group’s ownership interest in a subsidiary that do not result in a
loss of control over the subsidiary are accounted for as transactions with equity
owners of the Company. Any difference between the change in the carrying
amounts of the non-controlling interest and the fair value of the consideration
paid or received is recognised in a separate reserve within equity attributable to
the equity holders of the Company.
(3) Joint venture
A joint venture is an entity over which the Group has joint control as a result of
contractual arrangements and rights to the net assets of the entity.
Investment in joint ventures is accounted for in the consolidated financial
statements using the equity method of accounting less impairment losses, if any.
(i) Acquisitions
Investment in a joint venture is initially recognised at cost. The cost of an
acquisition is measured at the fair value of the assets given, equity
instruments issued or liabilities incurred or assumed at the date of
exchange, plus costs directly attributable to the acquisition. Goodwill on
joint venture represents the excess of the cost of acquisition of the joint
venture over the Group’s share of the fair value of the identifiable net
assets of the joint venture and is included in the carrying amount of the
investment.
(ii) Equity method of accounting
Under the equity method of accounting, the investment is initially
recognised at cost and adjusted thereafter to recognise the Group’s share
of its joint venture’s post-acquisition profits or losses in the Group’s profit
or loss and its share of the joint venture’s other comprehensive income in
the Group’s other comprehensive income. Dividend received or receivable
from the joint venture is recognised as a reduction of the carrying amount
of the investment. When the Group’s share of losses in a joint venture
equals to or exceeds its interest in the joint venture, the Group does not
recognise further losses, unless it has incurred legal or constructive
obligations to make, or has made, payments on behalf of the joint
venture. If the joint venture subsequently reports profits, the Group
resumes recognising its share of those profits only after its share of the
profits equals the share of losses not recognised.
Unrealised gains on transactions between the Group and its joint venture
are eliminated to the extent of the Group's interest in the joint venture.
Unrealised losses are also eliminated unless the transactions provide
evidence of impairment of the assets transferred. The accounting policies
of a joint venture are changed where necessary to ensure consistency
with the accounting policies adopted by the Group.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
119
2. Material accounting policies (continued)
(c) Group accounting (continued)
(3) Joint venture (continued)
(iii) Disposals
Investment in joint venture is derecognised when the Group loses joint
control. If the retained equity interest in the former joint venture is a
financial asset, the retained equity interest is remeasured at fair value.
The difference between the carrying amount of the retained interest at
the date when joint control is lost, and its fair value and any proceeds on
partial disposal, is recognised in profit or loss.
(d) Intangible assets
Computer software
Acquired computer software are initially capitalised at cost which includes the purchase
price (net of any discounts and rebates) and other directly attributable costs of preparing
the assets for its intended use. They are subsequently carried at cost less accumulated
amortisation and impairment losses. These costs are amortised to profit or loss using the
straight-line method over their estimated remaining useful lives of 5 years.
The useful lives are reviewed, and adjusted as appropriate, at least annually. The effects of
any revision in estimate are recognised in profit or loss when the changes arise.
(e) Property, plant and equipment
(1) Measurement
(i)
Property, plant and equipment are initially recognised at cost and
subsequently carried at cost less accumulated depreciation and
accumulated impairment losses (note 2(f)).
(ii)
The cost of an item of property, plant and equipment initially recognised
includes expenditure that is directly attributable to the acquisition of the
items. Dismantlement, removal or restoration costs are included as part
of the cost of property, plant and equipment if the obligation for
dismantlement, removal or restoration is incurred as a consequence of
acquiring or using the asset.
(iii)
If significant parts of an item of property, plant and equipment have
different useful lives, they are accounted for as separate components of
property, plant and equipment.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
120
2. Material accounting policies (continued)
(e) Property, plant and equipment (continued)
(2) Depreciation
(i)
Depreciation on property, plant and equipment is calculated using a
straight-line method to allocate their depreciable amounts over their
estimated useful lives as follows:
Vessels 25 years
Dry docking/Scrubbers 2.5 - 5 years
Furniture and fixtures 3 - 5 years
The residual values, estimated useful lives and depreciation method of
property, plant and equipment are reviewed, and adjusted as appropriate,
at least annually. The effects of any revision in estimate are recognised in
profit or loss when the changes arise.
(ii)
Significant components of individual assets are assessed and if a
component has a useful life that is different from the remainder of that
asset, that component is depreciated separately. The remaining carrying
amount of the old component as a result of a replacement will be written
off to profit or loss.
(3) Subsequent expenditure
Subsequent expenditure relating to property, plant and equipment, including
drydocking and replacing a significant component, that has already been
recognised, is added to the carrying amount of the asset only when it is probable
that future economic benefits associated with the item will flow to the Group
and the cost of the item can be measured reliably. All other repair and
maintenance expenses are recognised in profit or loss when incurred.
(4) Disposal
On disposal of an item of property, plant and equipment, the difference between
the net disposal proceeds and its carrying amount is recognised in profit or loss.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
121
2. Material accounting policies (continued)
(f) Impairment of non-financial assets
Intangible assets with finite lives, property, plant and equipment and investment in a joint
venture are tested for impairment whenever there is any objective evidence or an
indication that these assets may be impaired.
For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair
value less cost to sell and value-in-use) is determined on an individual asset basis unless
the asset does not generate cash flows that are largely independent of those from other
assets. If this is the case, the recoverable amount is determined for the cash-generating
unit (“CGU”) to which the asset belongs.
If the recoverable amount of the asset is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference
between the carrying amount and recoverable amount is recognised as an impairment loss
in profit or loss.
An impairment loss for an asset (or CGU) is reversed if, and only if, there has been a change
in the estimates used to determine the asset’s (or CGU’s) recoverable amount since the last
impairment loss was recognised. The carrying amount of this asset (or CGU) is increased to
its revised recoverable amount, provided that this amount does not exceed the carrying
amount that would have been determined (net of accumulated depreciation) had no
impairment loss been recognised for the asset (or CGU) in prior years. A reversal of
impairment loss for an asset (or CGU) is recognised in profit or loss.
(g) Derivative financial instruments and hedging activities
A derivative financial instrument is initially recognised at its fair value on the date the
contract is entered into and is subsequently carried at its fair value. The method of
recognising the resulting gain or loss depends on whether the derivative is designated as a
hedge instrument, and if so, the nature of the item being hedged. The Group designates
each hedge as either: (a) fair value hedge or (b) cash flow hedge.
For derivative financial instruments that are not designated or do not qualify for hedge
accounting, any fair value gains or losses are recognised in profit or loss as derivative
gain/(loss) when the change arises.
At the inception of the transaction, the Group documents the relationship between the
hedging instruments and hedged items as well as, the risk management objective and
strategies for undertaking various hedging transactions. The Group also documents its
assessment, both at hedge inception and on an ongoing basis, of whether the derivatives
designated as hedging instruments are highly effective in offsetting changes in fair value
or cash flows of the hedged items.
Hedge effectiveness is determined at the inception of the hedging relationship, and through
periodic prospective effectiveness assessments to ensure that an economic relationship
exists between the hedged item and hedging instrument.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
122
2. Material accounting policies (continued)
(g) Derivative financial instruments and hedging activities (continued)
The Group enters into hedge relationships where the critical terms of the hedging
instrument match exactly with the terms of the hedged item, and so a qualitative
assessment of effectiveness is performed. If changes in circumstances affect the terms of
the hedged item such that the critical terms no longer match exactly with the critical terms
of the hedging instrument, the Group uses the hypothetical derivative method to assess
effectiveness.
The carrying amount of a derivative designated as a hedge is presented as a non-current
asset or liability if the remaining expected life of the hedged item is more than 12 months,
and as a current asset or liability if the remaining expected life of the hedged item is less
than 12 months. The fair value of a trading derivative is classified as a current asset or
liability.
The fair value of derivative financial instruments represents the amount estimated by banks
or brokers that the Group will receive or pay to terminate the derivatives at the balance
sheet date.
Hedges directly affected by interest rate benchmark reform
Phase 2 amendments: Replacement of benchmark interest rates – when there is no longer
uncertainty arising from interest rate benchmark reform
The Group amends the description of the hedging instrument only if the following conditions
are met:
- it makes a change required by interest rate benchmark reform by changing the basis
for determining the contractual cash flows of the hedging instrument or using
another approach that is economically equivalent to changing the basis for
determining the contractual cash flows of the original hedging instrument; and
- the original hedging instrument is not derecognised.
These amendments in the formal hedge documentation do not constitute the
discontinuation of the hedging relationship or the designation of a new hedging
relationship.
If other changes are made in addition to those changes required by the interest rate
benchmark reform described above, then the Group first considers whether those additional
changes result in the discontinuation of the hedge accounting relationship. If the additional
changes do not result in discontinuation of the hedge accounting relationship, then the
Group amends the formal hedge documentation for changes required by interest rate
benchmark reform as mentioned above.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
123
2. Material accounting policies (continued)
(g) Derivative financial instruments and hedging activities (continued)
(1) Interest rate swaps
The Group has entered into interest rate swaps that are cash flow hedges for the
Group’s exposure to interest rate risk on its borrowings. These contracts entitle
the Group to receive interest at floating rates on notional principal amounts and
oblige the Group to pay interest at fixed rates on the same notional principal
amounts, thus allowing the Group to raise borrowings at floating rates and swap
them into fixed rates. The Group hedges up to 75% of its floating rate borrowings
and the hedged item is identified as a proportion of the outstanding amount of
the borrowings. As all critical terms matched during the year, the economic
relationship was assessed to be 100% effective.
The fair value changes on the effective portion of interest rate swaps designated
as cash flow hedges are recognised in other comprehensive income,
accumulated in the fair value reserve, and reclassified to profit or loss when the
hedged interest expense on the borrowings is recognised in profit or loss. The
fair value changes on the ineffective portion of interest swaps are recognised
immediately in profit or loss.
(2) Forward bunker swaps
The Group has entered into forward bunker swaps that are cash flow hedges for
the Group’s exposure to cash flow variability for its forecasted bunker purchases.
These contracts entitle the Group to receive bunker at floating rates and oblige
the Group to pay for bunker at fixed prices, or in some contracts to pay a fixed
incremental spread (between high and low sulphur fuel oil) for low sulphur fuel
oil. It was assessed that the economic relationship between the forward bunker
swaps and the hedged item was effective as the critical terms match.
The fair value changes on the effective portion of the forward bunker swaps
designated as cash flow hedges are recognised in other comprehensive income.
Amounts accumulated in equity are reclassified in the periods when the hedged
item affects profit or loss.
(3) Forward freight agreements (FFAs)
The Group has entered into FFAs that are cash flow hedges for the Group’s
exposure to cash flow variability, for its forecasted freight earnings. These
contracts entitle the Group to receive fixed freight rates and oblige the Group to
pay floating freight rates for the volumes transacted. This effectively hedges the
forecasted freight revenue contracted at future market freight rates. It was
assessed that the economic relationship between the FFAs and the hedged item
was effective as the critical terms match.
The fair value changes on the effective portion of the FFAs designated as cash
flow hedges are recognised in other comprehensive income. Amounts
accumulated in equity are reclassified in the periods when the hedged item
affects profit or loss.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
124
2. Material accounting policies (continued)
(g) Derivative financial instruments and hedging activities (continued)
(4) Non-derivative financial asset
The Group has designated the foreign currency risk component of a foreign
denominated cash balance as a cash flow hedge against the Group’s
commitment for the exercise of a purchase option on its time charter in lease
contract which is denominated in the same foreign currency. This effectively
hedges the forecasted purchase price at a fixed USD amount from the date of
designation of the hedge. It was assessed that the economic relationship
between the hedging instrument and the hedged item was effective as the
critical terms match.
The fair value changes on the effective portion of the foreign currency risk
component of the foreign denominated cash balance designated as cash flow
hedges are recognised in other comprehensive income. Amounts accumulated
in equity are reclassified into the cost of the asset upon payment of the purchase
option.
(h) Financial assets
(1) Financial assets at amortised cost
A financial asset is measured at amortised cost if it meets both of the following
conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to
collect contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount
outstanding.
The Group’s financial assets at amortised costs, are presented as “finance lease
receivables” (note 9) “trade and other receivables” (note 11) and “cash and cash
equivalents” (note 14) in the consolidated balance sheet.
These financial assets are initially recognised at their fair values plus transaction
costs and subsequently carried at amortised cost using the effective interest
method, less accumulated impairment losses.
The Group managed these groups of financial assets by collecting the contractual
cash flow and these cash flows represent solely payment of principal and
interest. Accordingly, these groups of financial assets are measured at amortised
cost subsequent to initial recognition.
The Group assesses on a forward-looking basis the expected credit losses (ECLs)
associated with these groups of financial assets.
For trade receivables, finance lease receivables and other receivables – related
party, the Group applied the simplified approach permitted by IFRS 9, which
requires expected lifetime losses to be recognised from initial recognition of the
receivables.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
125
2. Material accounting policies (continued)
(h) Financial assets (continued)
(1) Financial assets at amortised cost (continued)
For cash and cash equivalents, the general 3 stage approach is applied. Credit
loss allowance is based on 12-month ECL if there is no significant increase in
credit risk since the initial recognition of the assets. If there is a significant
increase in credit risk since initial recognition, lifetime ECL will be calculated and
recognised.
When determining whether the credit risk of a financial instrument has increased
significantly since initial recognition and when estimating ECLs, the Group
considers reasonable and supportable information that is relevant and available
without undue cost or effort. This includes both quantitative and qualitative
information analysis, based on the Group’s historical experience and informed
credit assessment and includes forward-looking information.
The Group considers a financial asset to be in default when:
- the borrower is unlikely to pay its credit obligations to the Group in full,
without recourse by the Group to actions such as realising security (if any
is held); or
- the financial asset is more than 90 days past due.
When the asset becomes uncollectible, it is written off against the allowance
amount. Subsequent recoveries of amounts previously written off are recognised
against the same line item in profit or loss.
The impairment allowance is reduced through profit or loss in a subsequent
period by the amount of ECL reversal that is required to adjust the loss allowance
to the amount that is required to be recognised at the reporting date.
These assets are presented as current assets except for those that are expected
to be realised later than 12 months after the balance sheet date, which are
presented as non-current assets.
The Group derecognises a financial asset when the contractual rights to the cash
flows from the financial asset expire, or it transfers the rights to receive the
contractual cash flows in a transaction in which substantially all of the risks and
rewards of ownership of the financial asset are transferred or in which the Group
neither transfers nor retains substantially all of the risks and rewards of
ownership and it does not retain control of the financial asset.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
126
2. Material accounting policies (continued)
(h) Financial assets (continued)
(2) Equity Investments
Equity investments are initially recognised at its fair value. Transaction costs are
expensed in profit or loss.
(i)
The Group subsequently measures all its equity investments at their fair
values. Equity investments are classified as fair value through profit or loss
(“FVTPL”) with movements in their fair values recognised in profit or loss
in the period in which the changes arise. Dividends from equity
investments are recognised in profit or loss as “dividend income”.
(ii)
On disposal of an equity investment, the difference between the carrying
amount and sales proceed is recognised in profit or loss.
(i) Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred, and
subsequently stated at amortised cost. Any difference between the proceeds (net of
transaction costs) and the redemption value is taken to profit or loss over the period of the
borrowings using the effective interest method.
Borrowings are presented as current liabilities in the consolidated balance sheet unless the
Group has an unconditional right to defer settlement of the liability for at least 12 months
after the balance sheet date, in which case they are presented as non-current liabilities.
(j) Borrowing costs
Borrowing costs are recognised in the profit and loss using the effective interest method
except for those costs that are directly attributable to the construction of vessels. This
includes those costs on borrowings acquired specifically for the construction of vessels, as
well as those in relation to general borrowings used to finance the construction of vessels.
Borrowing costs on borrowings acquired specifically for the construction of vessels are
capitalised in the cost of the vessel under construction during the period of construction
until the Group takes delivery of the vessels. Borrowing costs on general borrowings are
capitalised by applying a capitalisation rate to the construction expenditures that are
financed by general borrowings.
The basis for determining the contractual cash flows of the borrowing may be modified as
required by the IBOR reform. A change in the basis for determining the contractual cash
flows is required by interest rate benchmark reform if the following conditions are met:
- the change is necessary as a direct consequence of the reform; and
- the new basis for determining the contractual cash flows is economically
equivalent to the previous basis – i.e. the basis immediately before the change.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
127
2. Material accounting policies (continued)
(j) Borrowing costs (continued)
For this purpose, the Group updated the effective interest rate of the borrowing to reflect
the change that is required.
If other changes are made in addition to those changes required by interest rate benchmark
reform described above, then the Group first updated the effective interest rate of the
borrowing to reflect the change that is required by interest rate benchmark reform. Then
the Group applied the policies on accounting for modification to the additional changes.
(k) Trade and other payables
Trade and other payables represent liabilities to pay for goods or services provided to the
Group prior to the end of the financial year which are unpaid. Trade and other payables are
classified as current liabilities if payment is due within one year or less. If not, they are
presented as non-current liabilities.
Trade and other payables are initially recognised at fair value, and subsequently carried at
amortised cost using the effective interest method and are derecognised when the Group’s
obligation has been discharged or cancelled or expired.
(l) Leases
(1) As a lessee:
At the inception of the contract, the Group assesses if the contract contains a
lease. A contract contains a lease if the contract conveys the right to control the
use of an identified asset for a period of time in exchange for consideration.
Reassessment is only required when the terms and conditions of the contract are
changed.
The Group recognises a right-of-use asset and lease liability at the lease
commencement date. Right-of-use assets are measured at cost which comprises
the initial measurement of lease liabilities adjusted for any lease payments made
at or before the commencement date and lease incentive received. Any initial
direct costs that would not have been incurred if the lease had not been obtained
are added to the carrying amount of the right-of-use assets.
The right-of-use assets are subsequently carried at cost less accumulated
depreciation and accumulated impairment losses (note 2(f)). Depreciation is
calculated on straight-line method from the commencement date to the end of
the lease term, unless the lease transfers ownership of the underlying asset to
the Group by the end of the lease term or it is reasonably certain that the Group
will exercise a purchase option. In that case, the right-of-use asset will be
depreciated over the useful life of the underlying asset, which is determined on
the same basis as those of property and equipment.
Right-of-use assets are presented within “Right-of-use assets (vessels)”.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
128
2. Material accounting policies (continued)
(l) Leases (continued)
(1) As a lessee (continued):
The lease liability is initially measured at the present value of the lease payments
that are not paid at the commencement date, discounted using the interest rate
implicit in the lease, or if that rate cannot be readily determined, the Group’s
incremental borrowing rate. Generally, the Group uses its incremental borrowing
rate as the discount rate. From 1 January 2021, where the basis for determining
future lease payments changes as required by interest rate benchmark reform,
the Group remeasures the lease liability by discounting the revised lease
payments using the revised discount rate that reflects the change to an
alternative benchmark interest rate.
Lease payments included in the measurement of the lease liability comprise the
following:
- fixed payments, including in-substance fixed payments;
- variable lease payments that depend on an index or a rate, initially
measured using the index or rate as at the commencement date;
- amounts expected to be payable under a residual value guarantee; and
- the exercise price under a purchase option that the Group is reasonably
certain to exercise, lease payments in an optional renewal period if the
Group is reasonably certain to exercise an extension option, and penalties
for early termination of a lease unless the Group is reasonably certain not
to terminate early.
The lease liability is measured at amortised cost using the effective interest
method. It is remeasured when there is a change in future lease payments arising
from a change in an index or rate, if there is a change in the Group’s estimate of
the amount expected to be payable under a residual value guarantee, if the
Group changes its assessment of whether it will exercise a purchase, extension,
or termination option or if there is a revised in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment
is made to the carrying amount of the right-of-use asset, or is recorded in profit
or loss if the carrying amount of the right-of-use asset has been reduced to zero.
Variable lease payments not dependent on an index or rate and lease payments
arising from leases with lease terms less than 12 months are recognised as an
expense as incurred, or on a straight-line basis over the lease term and presented
within “charter hire expenses”.
Payments made in relation to the non-lease components of the leases are
recognised as an expense on a straight-line basis over the lease term.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
129
2. Material accounting policies (continued)
(l) Leases (continued)
(2) As a lessor:
The Group time charters vessels to non-related parties under lease agreements.
The leases have varying terms.
Lessor – Finance leases
Leases where the Group has transferred substantially all risks and rewards
incidental to ownership of the leased assets to the lessees, are classified as
finance leases. The leased asset is derecognised and the present value of the
lease receivable is recognised on the balance sheet. Each lease payment
received is applied against the gross investment in the finance lease receivable
to reduce both the principal and the unearned finance income. The finance
income is recognised in profit or loss on a basis that reflects a constant periodic
rate of return on the net investment in the finance lease receivable. The Group
applies the derecognition and impairment requirements in IFRS 9 to the net
investment in the lease (see note 2(h)).
Initial direct costs incurred by the Group in negotiating and arranging finance
leases are added to finance lease receivables and reduce the amount of income
recognised over the lease term.
Lessor – Operating leases
Leases, where the Group retains substantially all risks and rewards incidental to
ownership are classified as operating leases. Rental income from operating
leases (net of any incentives given to the lessees) is recognised in profit or loss
on a straight-line basis over the lease term.
(3) As an intermediate lessor:
In classifying a sublease, the Group as an intermediate lessor classifies the
sublease as a finance or an operating lease with reference to the right-of-use
asset arising from the head lease, rather than the underlying asset.
When the sublease is assessed as a finance lease, the Group derecognises the
right-of-use asset relating to the head lease that it transfers to the sublessee and
recognises the net investment in the sublease within “Finance lease receivables”.
Any differences between the right-of-use asset derecognised and the net
investment in sublease is recognised in the statement of comprehensive income.
Lease liability relating to the head lease is retained on the balance sheet, which
represents the lease payments owed to the head lessor.
When the sublease is assessed as an operating lease, the Group recognises lease
income from sublease in profit or loss within “Revenue from time charter
voyages”. The right-of-use asset relating to the head lease is not derecognised.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
130
2. Material accounting policies (continued)
(m) Fair value estimation of financial assets and liabilities
The fair values of financial instruments traded in active markets (such as exchange-traded
and over-the-counter securities and derivatives) are based on quoted market prices at the
balance sheet date. The quoted market prices for financial assets are the current bid prices;
the appropriate market prices used for financial liabilities are the current asking prices.
The fair values of financial instruments that are not traded in an active market are
determined by using valuation techniques. The Group uses a variety of methods and makes
assumptions that are based on market conditions existing at each balance sheet date.
Where appropriate, quoted market prices or dealer quotes for similar instruments are used.
(n) Inventories
Inventories comprise fuel oil and liquefied petroleum gas (“LPG)” remaining on board and
LPG held for trading purposes.
Fuel oil and LPG remaining on board is measured at the lower of cost (on a first-in, first-out
basis) and net realisable value.
LPG held for trading purposes are measured at fair value less costs to sell. Any change in
fair value is recognised in profit or loss for the period in which it arose.
(o) Provisions for other liabilities and charges
Provisions are recognised when the Group has a present legal or constructive obligation
where as a result of past events, it is more likely than not that an outflow of resources will
be required to settle the obligation and a reliable estimate of the amount can be made.
When the Group expects a provision to be reimbursed, the reimbursement is recognised as
a separate asset but only when the reimbursement is virtually certain. Provisions are not
recognised for future operating losses.
Provisions are measured at the present value of the expenditure expected to be required
to settle the obligation using a pre-tax discount rate that reflects the current market
assessment of the time value of money and the risks specific to the obligation. The increase
in the provision due to the passage of time is recognised in profit or loss as finance expense.
Changes in the estimated timing or amount of the expenditure or discount rate are
recognised in profit or loss when the changes arise.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
131
2. Material accounting policies (continued)
(p) Foreign currency translation
(1) Functional and presentation currency
Items included in the financial statements of each entity in the Group are
measured using the currency of the primary economic environment in which the
entity operates (the “functional currency”). The consolidated financial statements
of the Group are presented in United States Dollars (“US$”), which is the
functional currency of the Company.
(2) Transactions and balances
Transactions in a currency other than the functional currency (“foreign currency”)
are translated into the functional currency using the exchange rates prevailing at
the dates of the transactions. Foreign currency exchange gains and losses
resulting from the settlement of such transactions and from the translation of
monetary assets and liabilities denominated in foreign currencies at the closing
rates at the balance sheet date are recognised in profit or loss within “finance
expense – net”.
(3) Translation of Group entities’ financial statements
The results and financial position of all the Group entities (none of which has the
currency of a hyperinflationary economy) that have a functional currency
different from United States Dollars are translated into United States Dollars as
follows:
(i)
Assets and liabilities are translated at the closing rate at the reporting
date;
(ii)
Income and expenses are translated at average exchange rates (unless
this average is not a reasonable approximation of the cumulative effect
of the rates prevailing on the transaction dates, in which case income and
expenses are translated using the exchange rates at the dates on the
transactions); and
(iii)
All resulting currency translation differences are recognised in other
comprehensive income and accumulated in the currency translation
reserve. These currency translation differences are reclassified to profit or
loss on disposal or partial disposal of the entity giving rise to such reserve.
(q) Employee benefits
Employee benefits are recognised as an expense unless the cost qualifies to be classified
as an asset.
(1) Employee leave entitlement
Employee entitlements to annual leave are recognised when they accrue to
employees. An accrual is made for the estimated liability for annual leave as a
result of services rendered by employees up to the balance sheet date.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
132
2. Material accounting policies (continued)
(q) Employee benefits (continued)
(2) Defined contribution plans
Defined contribution plans are post-employment benefit plans under which the
Group pays fixed contributions into separate entities on a mandatory, contractual
or voluntary basis. The Group has no further payment obligations once the
contributions have been paid.
(3) Share-based compensation
The Group operates an equity-settled, share-based compensation plan. The value
of the employee services received in exchange for the grant of options is
recognised as an expense with a corresponding increase in the share-based
payment reserve over the vesting period. The total amount to be recognised over
the vesting period is determined by reference to the fair value of the share
options granted on grant date. Non-market vesting conditions are included in the
estimation of the number of shares under options that are expected to become
exercisable on the vesting date. At each balance sheet date, the Group revises
its estimates of the number of shares under options that are expected to become
exercisable on the vesting date and recognises the impact of the revision of the
estimates in profit or loss, with a corresponding adjustment to the share-based
payment reserve over the remaining vesting period.
When the share options are exercised, the proceeds received (net of transaction
costs) and the related balance previously recognised in the share-based payment
reserve are credited to share capital (nominal value) and share premium, when
new ordinary shares are issued, or to the “treasury shares” account, when
treasury shares are reissued to the employees.
(r) Offsetting financial instruments
Financial assets and liabilities are offset, and the net amount reported in the balance sheet
when there is a legally enforceable right to offset and there is an intention to settle on a
net basis or realise the asset and settle the liability simultaneously.
(s) Cash and cash equivalents
For the purpose of presentation in the consolidated statement of cash flows, cash and cash
equivalents include cash on hand and short-term bank deposits less restricted cash, related
to margin accounts held with brokers, which are subject to an insignificant risk of change
in value.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
133
2. Material accounting policies (continued)
(t) Share capital and treasury shares
Common shares are classified as equity. Incremental costs directly attributable to the
issuance of new common shares are deducted against share premium, a component of the
share capital account.
When any entity within the Group purchases the Company’s common shares (“treasury
shares”), the carrying amount which includes the consideration paid and any directly
attributable transaction cost is presented as a component within equity attributable to the
Company’s equity holders, until they are cancelled, sold, or reissued.
When treasury shares are subsequently sold or reissued pursuant to an employee share
option scheme, the cost of treasury shares is reversed from the treasury share account and
the realised gain or loss on sale or reissue, net of any directly attributable incremental
transaction costs and related income tax, is recognised in the capital reserve.
(u) Income tax
The income tax expense or credit for the period is the tax payable on the current period’s
taxable income, based on the applicable income tax rate for each jurisdiction.
The current income tax charge is calculated on the basis of the tax laws enacted or
substantively enacted at the end of the reporting period in the countries where the
company and its subsidiaries operate and generate taxable income. Management
periodically evaluates positions taken in tax returns with respect to situations in which
applicable tax regulation is subject to interpretation. It establishes provisions, where
appropriate, on the basis of amounts expected to be paid to the tax authorities.
Deferred tax is recognised in respect of temporary differences between the carrying
amounts
of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is measured at the tax rates that are expected to be applied to
temporary differences when they reverse, based on tax rates and tax laws that have been
enacted or substantively enacted by the reporting date, and reflects uncertainty related to
income taxes, if any.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset
current tax liabilities and assets, and they relate to taxes levied by the same tax authority
on the same taxable entity, or on different tax entities, but they intend to settle current tax
liabilities and assets on a net basis or their tax assets and liabilities will be realised
simultaneously.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible
temporary differences to the extent that it is probable that future taxable profits will be
available against which they can be used. Future taxable profits are determined based on
the reversal of relevant taxable temporary differences. If the amount of taxable temporary
differences is insufficient to recognise a deferred tax asset in full, then future taxable profits,
adjusted for reversals of existing temporary differences, are considered, based on the
business plans for individual subsidiaries in the Group. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that it is no longer probable that the
related tax benefit will be realised; such reductions are reversed when the probability of
future taxable profits improves.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
134
2. Material accounting policies (continued)
(v) Dividend to Company’s shareholders
Dividend to the Company’s shareholders is recognised when the dividend is approved.
(w) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting
provided to Management whose members are responsible for allocating resources and
assessing the performance of the operating segments.
(x) Non–current assets (or disposal groups) held-for-sale
Non-current assets (or disposal groups) are classified as assets held-for-sale and carried at
the lower of carrying amount and fair value less costs to sell if its carrying amount is
recovered principally through a sale transaction rather than through continuing use. The
asset is not depreciated or amortised while it is classified as held-for-sale. Any impairment
loss on initial classification and subsequent measurement is recognised as an expense. Any
subsequent increase in fair value less costs to sell (not exceeding the accumulated
impairment loss that has been previously recognised) is recognised in profit or loss.
(y) Commodity contracts
The Product Services division transacts in exchange traded derivatives, and enters into
physical contracts to buy and sell commodities. Derivative instruments, which include
physical commodity contracts that do not meet the own use exemption, are accounted for
as derivatives at fair value through profit or loss. The Group accounts for these physical
commodity contracts under IFRS 9 before physical delivery, and excludes changes in the fair
value of derivative assets and liabilities prior to physical delivery from revenue from
contracts with customers. Derivative gains or losses are presented separately as “derivative
gain/(loss)” within Revenue – Product Services.
The Group treats the counterparties to these physical commodity contracts as a customer
under IFRS 15 when the physical delivery of commodities occurs and measures revenue
from these contracts at the contractual transaction price. At delivery of the commodity, the
sale of the commodity is recognised as revenue under IFRS 15. See note 2(b)(2).
(z) Contingent liabilities
Where it is not probable that an outflow of economic benefits will be required, or the
amount cannot be estimated reliably, the obligation is disclosed as a contingent liability,
unless the probability of outflow of economic benefits is remote. Possible obligations,
whose existence will only be confirmed by the occurrence or non-occurrence of one or
more future events, are also disclosed as contingent liabilities unless the probability of
outflow of economic benefits is remote.
The Group is involved in certain claims, litigations, and disputes. Due to the nature of these
disputes and matters, and the uncertainty of the outcome, the Group believes that possible
obligations arising are remote and the amount of exposure cannot currently be determined.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
135
3. Revenue
2023
2022
US$’000
US$’000
(a) Revenue – Shipping
- spot voyages
1,059,024
699,028
- time charter
165,496
134,304
1,224,520
833,332
(b) Revenue – Product Services
- cargo sales
1,728,894
724,416
- spot voyages
36,177
-
- derivative (loss)/gain
(42,251)
376
1,722,820
724,792
4. Expenses by nature
2023
2022
US$’000
US$’000
Fuel oil consumed
204,863
221,436
Port charges
132,047
80,338
Pool distribution expenses
130,308
14,529
Other voyage expenses
42,122
33,713
Voyage expenses
509,340
350,016
Cost of cargo and delivery expenses – Product Services
1,547,059
640,554
Manning costs
42,883
46,878
Maintenance and repair expenses
26,438
32,172
Insurance expenses
4,694
4,146
Other vessel operating expenses
8,177
10,232
Vessel operating expenses
82,192
93,428
Employee compensation (note 5)
27,541
17,647
Directors’ fees
378
378
Fees to auditors of Company and other firms affiliated with KPMG
International Limited:
- Audit
- Other services
1,954
30
289
48
Other general and administrative expenses
26,870
13,554
General and administrative expenses
56,773
31,916
Time charter-in expenses (short-term)
7,942
8,060
Time charter-in expenses (variable payments)
22,770
8,367
Charter hire expenses
30,712
16,427
Time charter contracts (non-lease components)
20,350
19,506
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
136
5. Employee compensation
2023
2022
US$’000
US$’000
Wages and salaries
24,910
15,857
Share-based payments - equity settled
1,900
1,372
Post-employment benefits - contributions to defined contribution
plans
731
418
27,541
17,647
6. Basic and diluted earnings per share
Basic earnings per share is calculated by dividing the net profit or loss attributable to equity holders
of the Company by the weighted average number of common shares outstanding during the financial
year.
Diluted earnings per share is calculated by dividing the net profit or loss attributable to equity holders
of the Company by the weighted average number of common shares outstanding during the financial
year, after adjusting for all dilutive potential ordinary shares. The potential common shares arising
from the Company’s equity-settled, share-based compensation plan does not have a material impact
on the computation of basic earnings per share.
2023
2022
Net profit attributable to equity holders of the Company
(US$’000)
469,957
227,396
Weighted average number of common shares outstanding (‘000)
1
133,034
135,416
Basic and diluted earnings per share (US$ per share)
3.53
1.68
1
Includes dilutive shares from share options of 1,274,180 (2022: 664,756)
7. Income tax expense
(a) Income tax expense
2023
2022
US$’000
US$’000
Tax expense attributable to profit is made up of:
- profit for the financial year:
current income tax
10,461
1,315
- under/(over) provision in prior financial years:
current income tax
250
349
- reversal/(recognition) of deferred tax assets
current income tax
254
(593)
10,965
1,071
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
137
7. Income tax expense (continued)
(b) Movement in current income tax liabilities
2023
2022
US$’000
US$’000
At beginning of the financial year
2,489
1,231
Income tax expense
10,711
1,664
Income tax paid
(5,367)
(730)
Acquisition of subsidiary (note 24)
-
66
Currency effects
288
258
At end of the financial year
8,121
2,489
(c) Movement in deferred tax assets
2023
2022
US$’000
US$’000
At beginning of the financial year
6,720
-
Tax (charged)/credited to profit for the financial year
(254)
593
Acquisition of subsidiary (note 24)
-
5,919
Currency effects
389
208
At end of the financial year
6,855
6,720
Deferred tax assets are recognised for tax losses carried forward for the Group’s Spanish
subsidiary, Vilma Oil Trading, S.L., to the extent that realisation of the related tax benefits
through future taxable profits is probable. The Group has concluded that the deferred tax
assets will be recoverable from the estimated future taxable income of the subsidiary within
the next five years.
There is no income, withholding, capital gains or capital transfer taxes payable in Bermuda . Income
tax expense reconciliation is as follows:
2023
2022
US$’000
US$’000
Profit before tax
503,964
239,648
Tax calculated at a tax rate of 0% (2022: 0%)
-
-
Effects of different tax rates in other countries
10,711
1,664
Utilisation of tax losses
254
-
Recognition of unutilised tax losses
-
(593)
Income tax expense
10,965
1,071
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
138
8. Property, plant and equipment
Vessels
Dry docking
Furniture
and
fixtures
Right-of-use
assets
(Vessels)
Total
US$’000
US$’000
US$’000
US$’000
US$’000
Cost
At 1 January 2023
1,953,789
55,121
817
364,156
2,373,883
Additions
102,021
13,931
93
16,095
132,140
Lease modifications
-
-
-
49,625
49,625
Disposals
-
-
-
(98,493)
(98,493)
Reclassification
1
5,500
-
-
(5,500)
-
Reclassified to assets held-
for-sale (note 12)
(128,897)
(6,106)
-
-
(135,003)
Write off on completion of
dry docking costs
-
(10,872)
-
-
(10,872)
At 31 December 2023
1,932,413
52,074
910
325,883
2,311,280
Accumulated depreciation
and impairment charge
At 1 January 2023
465,559
23,179
510
114,679
603,927
Depreciation charge
88,724
13,173
123
115,101
217,121
Disposals
-
-
-
(55,681)
(55,681)
Reclassified to assets held-
for-sale (note 12)
(50,543)
(1,819)
-
-
(52,362)
Write off on completion of
dry docking costs
-
(10,872)
-
-
(10,872)
At 31 December 2023
503,740
23,661
633
174,099
702,133
Net book value
At 31 December 2023
1,428,673
28,413
277
151,784
1,609,147
1
Pertains to a reclassification of associated payments made in relation to the exercising of purchase option
upon the delivery to vessel cost
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
139
8. Property, plant and equipment (continued)
Vessels
Dry docking
Furniture
and
fixtures
Right-of-use
assets
(Vessels)
Total
US$’000
US$’000
US$’000
US$’000
US$’000
Cost
At 1 January 2022
2,267,087
63,614
555
176,659
2,507,915
Additions
33,734
12,347
111
16,016
62,208
Acquisition of subsidiary
(note 25)
-
-
151
123,336
123,487
Lease modifications
-
-
-
48,145
48,145
Disposals
(141,530)
(5,418)
-
-
(146,948)
Reclassified to assets held-
for-sale (note 12)
(209,049)
(5,356)
-
-
(214,405)
Write off on completion of
dry docking costs
-
(10,180)
-
-
(10,180)
Currency effects
3,547
114
-
-
3,661
At 31 December 2022
1,953,789
55,121
817
364,156
2,373,883
Accumulated depreciation
and impairment charge
At 1 January 2022
510,553
28,463
478
68,923
608,417
Depreciation charge
99,590
11,967
32
47,226
158,815
Disposals
(63,118)
(2,909)
-
-
(66,027)
Write-back of impairment
charge
-
-
-
(1,470)
(1,470)
Reclassified to assets held-
for-sale (note 12)
(81,590)
(4,205)
-
-
(85,795)
Write off on completion of
dry docking costs
-
(10,180)
-
-
(10,180)
Currency effects
124
43
-
-
167
At 31 December 2022
465,559
23,179
510
114,679
603,927
Net book value
At 31 December 2022
1,488,230
31,942
307
249,477
1,769,956
(a) Vessels with an aggregate carrying amount of US$1,000 million as at 31 December 2023
(2022: US$974.5 million) are pledged as security on borrowings (note 16).
(b) As at 31 December 2023, the Group has no impairment charge on right-of-use vessel (2022:
wrote-back an impairment charge of US$1.5 million on a right-of-use vessel) to their
recoverable amounts following the recovery of the freight market and asset prices from
when the impairment losses were recognised.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
140
9. Finance lease receivables
In 2019, back-to-back time charter contracts were entered into and the subleases were accounted for
as finance leases under IFRS 16. The adoption of IFRS 16 resulted in the recognition of net investment
in subleases as finance lease receivables. The movements are as follows:
2023
2022
US$’000
US$’000
At beginning of the financial year
10,526
18,061
Repayments
(7,842)
(7,535)
At end of the financial year
2,684
10,526
The table below sets out a maturity analysis of lease receivables, showing the undiscounted lease
payments to be received after the reporting date.
Less than
1 year
Between 1
and 2 years
Between 2
and 3 years
Total
US$’000
US$’000
US$’000
US$’000
At 31 December 2023
Undiscounted lease receivables
2,707
-
-
2,707
Less: Unearned finance income
(23)
-
-
(23)
2,684
-
-
2,684
At 31 December 2022
Undiscounted lease receivables
8,120
2,707
-
10,827
Less: Unearned finance income
(278)
(23)
-
(301)
7,842
2,684
-
10,526
10. Inventories
2023
2022
US$’000
US$’000
Fuel oil and LPG, at cost
39,192
39,887
LPG, held for trading
149,400
96,045
188,592
135,932
The cost of fuel oil recognised as an expense and included in voyage expenses amounted to US$204.9
million (2022: US$221.4 million).
The cost of LPG recognised as an expense and included in “cost of cargo and delivery expenses –
Product Services” amounted to US$1,547.1 million (2022: US$640.6 million)
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
141
11. Trade and other receivables
2023
2022
US$’000
US$’000
Trade receivables - non-related parties
286,474
176,511
Other receivables - non-related parties
24,560
24,144
Other receivables - related parties
1
2,176
1,614
313,210
202,269
Prepayments
15,234
11,193
328,444
213,462
Non-current
13,206
15,869
Current
315,238
197,593
328,444
213,462
1
Related parties refer to corporations controlled by a shareholder of the Company.
Contract assets – accrued revenue of US$103.3 million (2022: US$59.1 million) had been presented
within “Trade receivables – non-related parties”. These relate to the Group’s rights to consideration for
proportional performance from spot voyages that are in-progress at the balance sheet date, and which
shall be recognised as revenue in the subsequent year. The Group will invoice the customers when the
rights become unconditional which typically occurs in the next financial year.
Other receivables due from non-related parties include GST paid to India’s Government in advance.
After taking into account the present value of other receivables (non-current), the carrying amounts
approximate their fair value.
Other receivables due from related parties comprise mainly advances for vessel operating expenses.
They are unsecured, interest-free and repayable on demand. The carrying amounts of trade receivables
and prepayments, principally denominated in US$, approximate their fair values due to the short-term
nature of these balances.
12. Assets held-for-sale
2023
2022
US$’000
US$’000
At beginning of the financial year
86,869
39,027
Reclassified from property, plant and equipment (note 8)
82,641
128,610
Disposals
(125,214)
(80,768)
At end of the financial year
44,296
86,869
As at 31 December 2023, assets held-for-sale comprised one VLGC (2022: two VLGCs) that has been
committed for sale to a non-related party.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
142
13. Derivative financial instruments
2023
2022
Assets
Liabilities
Assets
Liabilities
US$’000
US$’000
US$’000
US$’000
Interest rate swaps
11,002
-
23,806
-
Forward freight agreements and
related bunker swaps
2,188
(46,391)
5,790
(8,942)
Commodity contracts and
derivatives
34,821
(44,234)
17,684
(32,061)
Forward foreign exchange contracts
and foreign exchange
74
(268)
-
(77)
48,085
(90,893)
47,280
(41,080)
Non-current
11,002
(679)
23,806
(929)
Current
37,083
(90,214)
23,474
(40,151)
48,085
(90,893)
47,280
(41,080)
As at 31 December 2023, the Group has interest rate swaps with total notional principal amounting to
US$218.1 million (2022: US$358.6 million). The Group’s interest rate swaps mature between 2024 to
2029.
Interest rate swaps were transacted to hedge the interest rate risk on bank borrowings. After taking
into account the effects of these contracts, for part of the bank borrowings, the Group would effectively
pay fixed interest rates ranging from 1.8% per annum to 2.9% per annum and would receive a variable
rate equal to US$ SOFR. Hedge accounting was adopted for these contracts.
Forward freight agreements and related bunker swaps were transacted to hedge freight rates and
bunker price risks. Hedge accounting was adopted for these contracts.
Commodity contract derivatives comprise physical buy and sell commodity contracts measured at fair
value through profit or loss, and commodity derivative contracts. The Group did not adopt hedge
accounting for these contracts.
Forward foreign exchange contracts and foreign exchange were transacted to hedge foreign exchange
risks. The Group did not adopt hedge accounting for these contracts.
14. Cash and cash equivalents
For the purpose of presenting the consolidated statement of cash flows, cash and cash equivalents
comprise the following:
2023
2022
US$’000
US$’000
Cash and cash equivalents per consolidated balance sheet
287,545
284,516
Less: Margin accounts held with brokers
1
(125,508)
(59,120)
Cash and cash equivalents per consolidated statement of
cash flows
162,037
225,396
1
Margin accounts held with brokers are collateral for open derivative financial instruments.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
143
15. Share capital and other reserves
(a) Issued and fully paid share capital
(i) As at 31 December 2023, the Company’s authorised share capital is US$1,620,000
divided into 162,000,000 common shares of US$0.01 each, with 140,000,000
issued and fully paid shares.
As at 31 December 2022, the Company’s authorised share capital is US$1,620,000
divided into 162,000,000 common shares of US$0.01 each with 141,939,998
issued and fully paid shares.
Fully paid common shares carry one vote per share and carry a right to dividend
as and when declared by the Company.
(ii) The Company operates two equity-settled, share-based compensation plans. The
2017 Long-Term Incentive Plan (“LTIP 2017”) was fully awarded in 2021. At the
end of the vesting periods between February 2020 and February 2024, common
shares of 2,043,784 may be acquired by certain employees, from the Company
at a predetermined strike price. Under the 2022 Long-Term Incentive Plan (“LTIP
2022”), at the end of the vesting periods between February 2025 and February
2029, common shares of 3,463,336 may be acquired by certain employees from
the Company at a predetermined strike price.
(b) Share premium
The differences between the consideration for common shares issued and their par value
are recognised as share premium.
(c) Capital reserve
As at 31 December 2023 and 2022, negative capital reserve amounted to US$36.3 million,
which comprises negative reserve arising from the business acquisition of entities under
common control using the pooling-of-interest method of accounting of US$41.5 million and
a gain on disposal of treasury shares of US$5.2 million in December 2015.
(d) Other reserve
Other reserve includes US$4.0 million of tonnage tax reserves of the Group’s Indian
subsidiary, BW Global United LPG India Private Limited. This amount is computed based on
the subsidiary’s profits pursuant to Section 115 JB to Tonnage tax reserve.
(e) Share-based payment reserve
Certain employees are entitled to receive common shares in the Company. This award is
recognised as an expense in the consolidated profit or loss with a corresponding increase in
the share-based payment reserve over the vesting periods. For the year ended 31 December
2023, an expense of US$1.7 million (2022: US$1.4 million) was recognised in the
consolidated profit or loss with a corresponding increase (2022: increase) recognised in the
share-based payment reserve.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
144
15. Share capital and other reserves (continued)
(f) Treasury shares
Number of shares
Amount
2023
2022
2023
2022
’000
’000
US$’000
US$’000
Balance as at 1 January
8,558
5,001
47,631
23,294
Transfer of treasury shares
(470)
(923)
(2,676)
(3,324)
Purchases of treasury shares
2,777
4,480
23,698
27,661
Cancellation of treasury shares
(1,939)
-
(12,215)
-
Balance as at 31 December
8,926
8,558
56,438
47,631
In 2023, 470,000 shares (2022: 923,000 shares) were transferred to certain members in
settlement of their exercising of certain vested options granted under LTIP 2017.
On 8 December 2021, the Company announced a share buy-back programme, under which
the Company will purchase up to 10 million common shares for a maximum amount of
US$50 million, to be held as treasury shares. In FY 2023, the Company purchased a total of
2,777,784 (2022: 4,480,086; 2021: 1,371,192) of its own common shares at an average
price of US$8.53 (NOK88.59) (2022: US$6.18 (NOK58.75); 2021: US$5.33 (NOK47.96)) per
share for an aggregate consideration of US$23.7 million (NOK246.1 million) (2022: US$27.7
million (NOK263.2 million); 2021: US$7.3 million (NOK65.8 million)). In FY2023, the
Company further resolved to cancel 1,938,998 treasury shares following which, the Company
has 140,000,000 shares outstanding.
16. Borrowings
2023
2022
US$’000
US$’000
Bank borrowings
324,902
421,325
Trust receipts
84,263
53,138
Interest payable
3,184
3,910
412,349
478,373
Non-current
199,917
362,220
Current
212,432
116,153
412,349
478,373
originally interest bearing at three-month US$ LIBOR plus a margin. Following the IBOR reform, the
Group transitioned these borrowings into US$ SOFR benchmark with all other terms unchanged as at
31 December 2023. The carrying amounts of non-current and current borrowings approximate their fair
values because interest rates are repriced on a regular basis.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
145
17. Lease liabilities
2023
2022
US$’000
US$’000
At beginning of financial year
227,483
132,540
Additions
16,095
16,016
Acquisition of subsidiary (note 24)
-
90,463
Lease modifications
49,625
42,645
Disposals
(41,851)
-
Repayments
(93,513)
(54,181)
At end of financial year
157,839
227,483
Non-current
78,363
106,281
Current
79,476
121,202
157,839
227,483
18. Trade and other payables
2023
2022
US$’000
US$’000
Trade payables - non-related parties
222,005
165,859
Other payables - non-related parties
246
196
Other payables - related parties
1
264
409
Charter hire received in advance
3,846
2,825
Other accrued operating expenses
38,739
44,598
265,100
213,887
1
Related parties refer to corporations controlled by a shareholder of the Company.
The carrying amounts of trade and other payables, principally denominated in US$, approximate their
fair values due to the short-term nature of these balances.
Other payables due to related parties are unsecured, interest-free and are payable on demand.
19. Related party transactions
In addition to the information disclosed elsewhere in the consolidated financial statements, the
following transactions took place between the Group and related parties during the financial year at
terms agreed between the parties:
(a) Services
2023
2022
US$’000
US$’000
Charter hire expense charged by related party
1
-
2,808
Corporate service fees charged by related parties
1
6,615
6,865
Ship management fees charged by related parties
1
1,272
1,258
Corporate service fees charged to related parties
1
-
242
1
Related parties refer to corporations controlled by a shareholder of the Company.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
146
19. Related party transactions (continued)
(b) Key management’s remuneration
2023
2022
US$’000
US$’000
Salaries and other short-term employee benefits
3,333
3,191
Post-employment benefits - contributions to defined contribution
plans and share-based payment
1,859
1,237
Directors’ fees
376
376
5,568
4,804
20. Commitments
(a) Commitments – as a lessor
The Group time charters vessels to non-related parties under operating lease agreements.
The leases have varying terms.
The future minimum lease payments receivable under non-cancellable operating leases
contracted for at the balance sheet date but not recognised as receivables, are as follows:
2023
2022
US$’000
US$’000
Less than one year
81,375
138,567
Two to five years
69,259
6,176
150,634
144,743
(b) Sub-leasing – as a lessor
Included within “Revenue from time charter voyages” was income from sub-leasing of right-
of-use assets of US$nil million (2022: US$nil million).
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
147
21. Financial risk management
The Group’s activities expose it to a variety of financial risks. The Group’s overall risk management
programme focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on financial performance of the Group. Where applicable, the Group uses financial
instruments such as interest rate swaps, forward freight agreements, bunker swaps, and commodity
contracts to hedge certain financial risk exposures.
The Board of Directors is responsible for setting the objectives and underlying principles of financial risk
management for the Group.
(a) Market risk
(i) Fuel price risk
The Group is exposed to the risk of variations in fuel oil costs, which are affected
by the global political and economic environment. In 2023, fuel oil costs comprised
27% (2022: 45%) of the Group’s total operating expenses (excluding cost of cargo
and delivery expenses – Product Services, charter hire expenses, depreciation, and
amortisation).
(ii) Currency risk
The Group’s business operations are not exposed to significant foreign exchange
risk as it has no significant regular transactions denominated in foreign currencies.
(iii) Equity price risk
The Group is exposed to equity securities price risk arising from the investments
held by the Group which are classified as equity financial assets, at FVPL. These
securities are unquoted. If prices for these equity securities increase/decrease by
20% with other variables including tax rate being held constant, the profit after tax
will be higher/lower by approximately US$0.7 million (2022: US$0.7 million).
(iv) Commodity price risk
Commodity price risk results primarily from exposures to fluctuations in spot prices
and forward prices of LPG and LPG freight indexes due to the Group’s LPG trading
operations. The Group holds positions to meet physical supply commitments to its
customers and to leverage on physical arbitrage opportunities between the key LPG
markets. The value of these positions is accounted for at fair value and are therefore
impacted by changes in market prices. A large majority of price risks arising from
the LPG trading activities are hedged to the corresponding commodity price
exposures.
The Group monitors the market risk arising from commodity price risk using Daily
Value at Risk (VaR) calculated at a 95 percent confidence level, which is a statistical
estimate of the potential decline in value of the Group’s positions due to market
movements.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
148
21. Financial risk management (continued)
(a) Market risk (continued)
(v) Interest rate risk
The Group’s income and operating cash flows are substantially independent of
changes in market interest rates.
The Group’s bank borrowings are at variable rates. The Group has entered into
interest rate swaps to swap floating interest rates to fixed interest rates for certain
portions of the bank borrowings (note 16). If the US$ interest rates
increase/decrease by 50 basis points (2022: 50 basis points) with all other
variables including tax rate being held constant, the profit after tax will be
lower/higher by approximately US$0.2 million (2022 profit after tax will be
lower/higher by approximately US$0.2 million) as a result of higher/lower
interest expense on these borrowings; the other comprehensive loss will be
lower/higher by approximately US$4.2 million (2022: other comprehensive loss
will be lower/higher by approximately US$5.2 million).
A fundamental reform of major interest rate benchmarks is being undertaken
globally, including the replacement of some interbank offered rates (IBORs) with
alternative nearly risk-free rates (referred to as ‘IBOR reform’). The Group has
exposure to IBORs on its financial instruments that were reformed as part of these
market-wide initiatives. The Group’s main IBOR exposure at 31 December 2022
was indexed to US$ LIBOR. The alternative reference rate for the US$ LIBOR is the
Secured Overnight Financing Rate (SOFR). In 2023, the Group completed the
process of amending its financial instruments from US$ LIBOR to US$ SOFR.
The Group holds interest rate swaps for risk management purposes which are
designated in cash flow hedging relationships. The interest rate swaps have
floating legs that are indexed to various IBORs. The Group’s derivative instruments
are governed by contracts based on the International Swaps and Derivatives
Association (ISDA) master agreements.
The Group replaced its LIBOR interest rate derivatives used in cash flow hedging
relationships with economically equivalent interest rate derivatives referencing
SOFR in 2023. Therefore, there is no longer uncertainty about when and how
replacement may occur with respect to the relevant hedged items and hedging
instruments. As a result, the Group no longer applies the Phase 1 Amendments
to IFRS 9 on Interest Rate Benchmark Reform to those hedging relationships.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
149
21. Financial risk management (continued)
(b) Credit risk
Credit risk is diversified over a range of counterparties including several key charterers. The
Group performs ongoing credit evaluation of its charterers and has policies in place to ensure
that credit is extended only to charterers with appropriate credit histories or financial
resources. In this regard, the Group is of the opinion that the credit risk of counterparty
default is appropriately mitigated. In addition, although the trade and other receivables
consist of a small number of customers, the Group has policies in place for the control and
monitoring of the concentration of credit risk. The Group has implemented policies to ensure
cash is only deposited with internationally recognised financial institutions with good credit
ratings.
The Group‘s credit risk is primarily attributable to trade and other receivables, finance lease
receivables, amounts due from related parties and cash and cash equivalents. The Group
has assessed the ECL as at 31 December 2023 and 31 December 2022 based on past events,
current conditions and forecasts of future economic conditions:
(i) General approach
- bank deposits are not impaired and are mainly deposits with banks with
credit-ratings assigned by international credit-rating agencies; and
(ii) Simplified approach
- trade receivables are neither past due nor impaired and are substantially
from companies with a good collection track record with the Group;
- finance lease receivables are due from customers with good credit
standing, and in the event of default, the Group would be entitled to
repossess the vessels chartered; and
- other receivables from related parties are not past due.
Based on the assessment of the qualitative factors that are indicative of the risk of default,
there have been no significant increases in the credit risk since the initial recognition of
these financial assets, as such, the expected credit losses based on the 12-month ECLs has
been assessed to be insignificant.
There is no significant balance as at the balance sheet date that is past due as substantial
portions of the trade and other receivables represent accrued revenue for spot voyages that
are in progress, unbilled receivables from time charters and unbilled demurrage receivables
at the balance sheet date. The maximum exposure is represented by the carrying value of
each financial asset on the consolidated balance sheet before taking into account any
collateral held.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
150
21. Financial risk management (continued)
(c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash, the availability of
funding through an adequate amount of committed credit facilities and the ability to close
out market positions. Due to the dynamic nature of the underlying businesses, the Group
maintains sufficient cash for its daily operations via short-term cash deposit at banks and
has access to unutilised portions of revolving facilities offered by financial institutions.
The table below analyses non-derivative financial liabilities of the Group into relevant
maturity groupings based on the remaining period from the balance sheet date to the
contractual maturity date on an undiscounted basis.
Less than
1 year
Between 1
and 2 years
Between 2
and 5 years
Over 5 years
US$’000
US$’000
US$’000
US$’000
At 31 December 2023
Trade and other payables
261,254
-
-
-
Bank borrowings
118,800
61,554
164,471
718
Trust receipts
84,263
-
-
-
Lease liabilities
84,662
42,263
34,784
6,103
548,979
103,817
199,255
6,821
At 31 December 2022
Trade and other payables
211,062
-
-
-
Bank borrowings
79,684
77,964
325,360
27,134
Trust receipts
53,138
-
-
-
Lease liabilities
127,825
45,676
54,869
13,664
471,709
123,640
380,229
40,798
(d) Capital risk
The Group’s objectives when managing capital are to safeguard the Group’s ability to
continue as a going concern and to maintain an optimal capital structure so as to maximise
shareholder value. In order to maintain or achieve an optimal capital structure, the Group
may adjust the amount of dividend paid, return capital to shareholders, obtain new
borrowings or sell assets to reduce borrowings.
The Group monitors capital based on a book leverage ratio (defined as total borrowings to
total equity and borrowings). The Group pursues a policy aiming to achieve a target book
leverage ratio of below 60%. If the book leverage ratio is higher than 60%, the Group will
seek to return to a conservative financial level by disposing assets, deleveraging the balance
sheet; and/or increasing fixed income coverage within a reasonable period of time.
The Group’s leverage ratio net of cash at 31 December 2023 is 21% (2022: 23%).
The Group is in compliance with all other externally imposed capital requirements for the
financial year ended 31 December 2023 and 31 December 2022.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
151
21. Financial risk management (continued)
(e) Financial instruments by category
The aggregate carrying amounts of the Group’s financial instruments are as follows:
2023
2022
US$’000
US$’000
Equity financial assets, at FVPL
3,271
3,271
Derivative assets measured at fair value
48,085
47,280
Derivative liabilities measured at fair value
(90,893)
(41,080)
Financial assets at amortised cost
497,401
427,637
Financial liabilities at amortised cost
(663,609)
(677,292)
(f) Estimation of fair value
IFRS 13 established a fair value hierarchy that prioritises inputs used to measure fair value.
The three levels of the fair value input hierarchy defined by IFRS 13 are as follows:
(i) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level
1);
(ii) inputs other than quoted prices included within Level 1 that are observable for
the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices) (Level 2); and
(iii) inputs for the asset or liability that are not based on observable market data
(unobservable inputs) (Level 3).
Level 1
Level 2
Level 3
Total
US$’000
US$’000
US$’000
US$’000
2023
Assets
Equity financial assets, at FVPL
-
-
3,271
3,271
Derivative financial instruments
-
48,085
-
48,085
Total assets
-
48,085
3,271
51,356
Liabilities
Derivative financial instruments
-
90,893
-
90,893
Total liabilities
-
90,893
-
90,893
2022
Assets
Equity financial assets, at FVPL
-
-
3,271
3,271
Derivative financial instruments
-
47,280
-
47,280
Total assets
-
47,280
3,271
50,551
Liabilities
Derivative financial instruments
-
41,080
-
41,080
Total liabilities
-
41,080
-
41,080
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
152
21. Financial risk management (continued)
(f) Estimation of fair value (continued)
Derivative financial assets and liabilities
The Group’s financial derivative instruments primarily relate to interest rate swaps, forward
freight agreements, bunker swaps and commodity contracts (note 13) measured at fair
value.
Level 2 classifications primarily include exchange-traded futures including interest rate
swaps, forward freight agreements, bunker swaps and commodity contracts. The fair values
of interest rate swaps are calculated at the present value of estimated future cash flows
based on observable yield curves. The fair values of forward freight agreements, bunker
swaps and commodity contracts measured at fair value are determined using forward
commodity indices at the balance sheet date. Level 3 classifications primarily include
unlisted equity investment which was valued using Market approach based on Enterprise
Value to Revenue multiple of comparable companies.
Non-derivative non-current financial assets and liabilities
The carrying amount of non-derivative non-current financial assets and liabilities which bear
floating interest rates are assumed to approximate their fair value because of the short
repricing period. There are no non-current financial assets and liabilities which do not bear
floating interest rates.
Non-derivative current financial assets and liabilities
The carrying amounts of financial assets and liabilities with a maturity of less than one year
are assumed to approximate their fair value because of the short period to maturity.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
153
21. Financial risk management (continued)
(g) Offsetting financial assets and financial liabilities
The Group has the following financial instruments subject to enforceable master netting
arrangements or other similar agreements as follows:
Gross
amounts of
recognised
financial
instruments
Gross
amounts of
recognised
financial
instruments
offset in
the balance
sheet
Net
amounts of
financial
instruments
included in
the balance
sheet
Related
financial
instruments
that are not
offset
Net
amount
US$’000
US$’000
US$’000
US$’000
US$’000
2023
Derivative financial
assets
Forward freight
agreements and
related bunker
swaps (note 13)
4,168
(1,980)
2,188
-
2,188
Commodity contracts
(note 13)
34,821
-
34,821
-
34,821
Derivative financial
liabilities
Forward freight
agreements and
related bunker
swaps (note 13)
(59,447)
13,056
(46,391)
-
(46,391)
Commodity contracts
(note 13)
(135,716)
91,482
(44,234)
-
(44,234)
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
154
21. Financial risk management (continued)
(g) Offsetting financial assets and financial liabilities (continued)
Gross
amounts of
recognised
financial
instruments
Gross
amounts of
recognised
financial
instruments
offset in
the balance
sheet
Net
amounts of
financial
instruments
included in
the balance
sheet
Related
financial
instruments
that are not
offset
Net
amount
US$’000
US$’000
US$’000
US$’000
US$’000
2022
Derivative financial
assets
Forward freight
agreements and
related bunker swaps
(note 13)
17,705
(11,915)
5,790
-
5,790
Commodity contracts
(note 13)
32,399
(14,715)
17,684
-
17,684
Derivative financial
liabilities
Forward freight
agreements and
related bunker swaps
(note 13)
(34,922)
25,980
(8,942)
-
(8,942)
Commodity contracts
(note 13)
(47,935)
15,874
(32,061)
-
(32,061)
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
155
22. Segment information
The executive management team (“EMT”) is the Group’s chief operating decision-maker. The Group
identifies segments on the basis of those components of the Group that the EMT regularly reviews. The
Group considers the business from each individual business segment perspective which comprise the
Shipping and Product Services segments.
The reported measures of segment performance is gross profit, which the EMT uses to assess the
performance of the operating segments. For the Shipping segment, gross profit is reflected as TCE
income. Operating segment disclosures are consistent with the information reviewed by the
Management.
Geographical information
Non-current assets comprise mainly vessels, operating on an international platform with individual
vessels calling at various ports across the globe. The Group does not consider the domicile of its
customers as a relevant decision making guideline and hence does not consider it meaningful to
allocate vessels and revenue to specific geographical locations.
Segment performance is presented below:
Shipping
Product
Services
Inter-
segment
elimination
Total
US$’000
US$’000
US$’000
US$’000
2023
Revenue from spot voyages
1,059,024
-
-
1,059,024
Inter-segment revenue
175,528
-
(175,528)
-
Voyage expenses
(509,340)
-
-
(509,340)
Inter-segment expense
(112,211)
-
112,211
-
Net income from spot voyages
613,001
-
(63,317)
549,684
Revenue from time charter voyages
184,494
-
(18,998)
165,496
TCE income – Shipping
1
797,495
-
(82,315)
715,180
Revenue from Product Services
-
1,722,820
-
1,722,820
Inter-segment revenue
-
112,211
(112,211)
-
Cost of cargo and delivery expenses
-
(1,547,059)
-
(1,547,059)
Inter-segment expense
-
(194,526)
194,526
-
Depreciation
-
(67,609)
-
(67,609)
Gross profit – Product Services
2
-
25,837
82,315
108,152
Segment results
797,495
25,837
-
823,332
Depreciation
(149,512)
-
Amortisation
(699)
(63)
Loss on derecognition of right-of-use
assets (vessels)
(961)
-
Gain on disposal of assets
42,374
-
1
“TCE income” denotes “time charter equivalent income” which represents revenue from time
charters and voyage charters less voyage expenses comprising primarily fuel oil, port charges
and commission.
2
Gross profit from Product Services represents the net trading results which comprise revenue
and cost of LPG cargo, derivative gains and losses, and other trading attributable costs,
including depreciation from Product Services’ leased in vessels
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
156
22. Segment information (continued)
Shipping
Product
Services
Inter-
segment
elimination
Total
US$’000
US$’000
US$’000
US$’000
2022
Revenue from spot voyages
699,028
-
-
699,028
Inter-segment revenue
87,328
-
(87,328)
-
Voyage expenses
(350,016)
-
-
(350,016)
Inter-segment expense
(2,983)
-
2,983
-
Net income from spot voyages
433,357
-
(84,345)
349,012
Revenue from time charter voyages
134,304
-
-
134,304
TCE income – Shipping
1
567,661
-
(84,345)
483,316
Revenue from Product Services
-
724,792
-
724,792
Inter-segment revenue
-
2,983
(2,983)
-
Cost of cargo and delivery expenses
-
(640,554)
-
(640,554)
Inter-segment expense
-
(87,328)
87,328
-
Depreciation
-
(3,414)
-
(3,414)
Gross (loss)/profit – Product Services
2
-
(3,521)
84,345
80,824
Segment results
567,661
(3,521)
-
564,140
Depreciation
(155,401)
-
Amortisation
(610)
-
Write-back of impairment
1,470
-
Gain on disposal of assets
21,110
-
1
“TCE income” denotes “time charter equivalent income” which represents revenue from time
charters and voyage charters less voyage expenses comprising primarily fuel oil, port charges
and commission.
2
Gross profit from Product Services represents the net trading results which comprise revenue and
cost of LPG cargo, derivative gains and losses, and other trading attributable costs, including
depreciation from Product Services’ leased in vessels
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
157
22.
Segment information (continued)
(a)
Reconciliation of segment results:
2023
2022
US$’000
US$’000
Total segment results for reportable segments
823,332 564,140
Ves
sel operating expenses
(
82,192
)
(
93,428
)
Time charter contracts (non-lease components)
(20,350) (19,506)
General and administrative expenses
(56,773) (31,916)
Charter hire expenses
(30,712) (16,427)
Finance lease income
278 585
Other operating income - net
(993
) 815
Depreciation – Shipping segment
(149,512) (
155,401)
Amortisa
tion
(762
) (610)
Wr
ite-back of impairment charge
- 1,470
Gain on disposal of assets
42,374
21,110
Loss on derecognition of right-of-use assets (vessels) (961
) -
Finance expenses - net
(19,765) (
31,184)
Income tax expense
(10,965) (1
,071)
Profit after tax
49
2,999 238,577
(b)
Customer concentration
Revenues from external customers are derived mainly from spot voyages, time charter voyage
and sale of LPG cargo. Revenues from one customer of the Product Services segment
represented approximately US$306 million (2022: US$175 million) of the Group’s total
revenues.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
158
23. Dividends paid
2023
2022
US$’000
US$’000
Final dividend paid in respect of FY 2022 of US$0.52
(2022: in respect of FY 2021 of US$0.18) per share
68,731
24,182
Interim dividend paid in respect of Q1 2023 of US$0.95
(2022: in respect of Q1 2022 of US$0.31) per share
125,734
42,072
Interim dividend paid in respect of Q2 2023 of US$0.81
(2022: in respect of Q2 2022 of US$0.20) per share
106,127
26,528
Interim dividend paid in respect of Q3 2023 of US$0.80
(2022: in respect of Q3 2022 of US$0.25) per share
104,901
33,923
405,493
126,705
The Board has declared a final cash dividend of US$0.90 per share for 2023, amounting to US$118.0
million. Together with the interim dividend paid for Q1 2023 of US$0.95 per share, Q2 2023 of US$0.81
per share and Q3 2023 of US$0.80 per share, the total dividend payout for FY 2023 will amount to
US$3.46 per share or US$454.8 million. The shares will be traded ex-dividend on and after 5 March
2024. The dividend will be payable on or about 22 March 2024 to shareholders of record as at 6 March
2024.
24. Business combinations
FY2022
The Group acquired 85.0% equity interest in Vilma Oil (“Vilma”)’s LPG trading operations resulting in
the Group obtaining control of the LPG trading operations. From 30 November 2022, the Group
accounted for Vilma’s LPG trading operations as its subsidiary.
The principal activity of Vilma’s LPG trading operations is that of LPG trading operations. As a result of
the acquisition, the Group is expected to increase its market presence in LPG trading market.
Details of the consideration paid, the assets acquired and liabilities assumed, the non-controlling
interest recognised and the effects on the cash flows of the Group, at the acquisition date, were as
follows. These were determined on a provisional basis as at 31 December 2022 and were finalized as
at 31 December 2023 with no significant adjustments required.
(a) Details of the acquisition
US$’000
Purchase consideration
53,438
Non-controlling interest
1
10,327
Less: Fair value of identifiable net assets acquired
(63,765)
Goodwill
-
1
Non-controlling interest was measured based on their proportionate share of interest in the
fair value of identifiable net assets acquired.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
159
24. Business combinations (continued)
(b) Effect on cash flows of the Group
US$’000
Cash paid
51,138
Less: cash and cash equivalents in subsidiary acquired net of restricted cash
(2,550)
Cash outflow on acquisition
48,588
(c) Identifiable assets acquired and liabilities assumed
US$’000
Cash and cash equivalents
61,464
Right-of-use assets (vessels)
123,336
Derivatives financial instruments
683
Derivatives financial instruments (commodity contracts)
16,303
Inventories
30,138
Trade and other receivables
150,812
Deferred tax assets
5,919
Other assets
94
Total assets
388,749
Trade and other payables
(94,987)
Borrowings
(99,618)
Lease liabilities
(90,463)
Derivative financial instruments
(39,850)
Current income tax
(66)
Total liabilities
(324,984)
Total identifiable net assets
63,765
Less: Non-controlling interest
(10,327)
53,438
Cash and cash equivalents comprise mainly margin cash held with brokers amounting to
US$58,914,000 which is deemed as restricted. Net of restricted cash, cash and cash equivalents
acquired amounted to US$2,550,000.
Right-of-use assets (vessels) comprise the contractual lease payments for the remaining lease
term, recalculated on the date of acquisition plus the fair value uplift for those identified as
favorable lease contracts. The fair value determined is a Level 2 fair value measurement using
observable market prices obtained from exchanges, and derived based on the comparison of
forward freight rates against actual freight rates.
Derivatives financial instruments comprise exchange traded futures and swaps which are
recognised at fair value, derived using exchange traded price indexes.
Derivative financial instruments (commodity contracts) is a Level 2 fair value measurement
using observable market prices obtained from exchanges, or traded reference indices adjusted
for relevant location differentials. These were recognised at fair value on the date of acquisition,
derived based on forward commodity rates.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
160
24. Business combinations (continued)
(c) Identifiable assets acquired and liabilities assumed (continued)
Some provisional amounts have been revised based on subsequently available documentation
compared to the amounts in the previously issued 2022 consolidated financial statements of
the Group. The revisions relate primarily to the net presentation of derivative balances and cash
balances held with brokers within Trade and other payables and Derivative financial instruments.
The effects of these revisions are reflected retrospectively in the consolidated balance sheet as
at 31 December 2022, and the consolidated statement of cash flows for the financial year ended
31 December 2022.
The carrying amounts of borrowings approximate their fair values because they are short-term
in nature. The carrying amounts of trade and other receivables, trade and other payables
approximate their fair value due to the short-term nature of these balances and are expected
to be collectible or paid in full at the date of acquisition.
For the one month ended 31 December 2022, Vilma LPG trading operations contributed revenue
of US$217.0 million and a net loss of US$3.7 million to the Group’s results. If the acquisition had
occurred on 1 January 2022, Management estimates that the consolidated revenue would have
been higher by approximately US$1,825.0 million and consolidated profit for the period would
have been lower by approximately US$2.5 million.
25. Investment in subsidiaries with material non-controlling interests
In January 2022 and May 2022, an external investor subscribed for US$50 million and US$30 million of
new shares in BW LPG India Pte. Ltd. (“BW India”), representing 31.9% and 9.2% equity interest
respectively. Following these transactions, the Group’s ownership percentage in BW India was diluted
from 88.4% to 52.4%. This change in ownership interest does not result in a change of control and is
considered an equity transaction which resulted in an increase in non-controlling interest of US$84.3
million and a decrease in equity attributable to shareholders of the Group of US$4.3 million. The effect
of changes in the ownership interest of BW India on the equity attributable to shareholders of the
Group has been reflected in the consolidated statement of changes in equity.
In November 2022, the Group’s subsidiary, BW LPG Product Services Pte. Ltd. (“BW Product Services”),
completed the acquisition of Vilma’s LPG trading operations. From 30 November 2022, the Group
accounted for Vilma’s LPG’s trading operations as its subsidiary.
Set out below are the summarised financial information for BW LPG India Pte. Ltd. (“BW India”) and
BW LPG Product Services Pte. Ltd. (“BW Product Services”), that has non-controlling interests that are
material to the Group. These are presented before inter-company eliminations.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
161
25. Investment in subsidiaries with material non-controlling interests (continued)
Summarised balance sheet:
BW India
BW Product Services
2023
2022
2023
2022
US$’000
US$’000
US$’000
US$’000
Assets
Current assets
27,935
36,874
431,420
329,485
Includes
Cash and cash equivalents
15,882
12,216
77,980
77,829
Non-current assets
347,933
337,868
75,727
120,085
Liabilities
Current liabilities
33,901
33,861
402,789
326,246
Includes
Borrowings
27,929
27,957
138,380
110,260
Non-current liabilities (Borrowings)
112,473
139,007
40,815
62,231
Net assets
229,494
201,874
63,543
61,093
Summarised statement of comprehensive income:
BW India
BW Product Services
2023
2022
2023
2022
US$’000
US$’000
US$’000
US$’000
TCE income
118,999
92,561
-
-
Revenue – Product Services
-
-
1,835,031
727,775
Cost of cargo and delivery expenses
-
-
(1,741,585)
(727,882)
Gain on disposal of assets held-
for-sale
-
-
-
-
Vessel operating expense
(21,503)
(22,885)
-
-
Depreciation and amortisation
(33,950)
(32,154)
(67,609)
(3,414)
Finance expense
(9,510)
(7,453)
(4,426)
(1,755)
Other expenses
(6,045)
(2,004)
(20,033)
3,139
Net profit/(loss) after tax
47,991
28,065
1,378
(2,137)
Other comprehensive income
(currency translation effects)
416
2,961
1,918
(895)
Total comprehensive income/(loss)
48,407
31,026
3,296
(3,032)
Total comprehensive income/(loss) allocated
to non-controlling interests
23,716
12,701
480
(1,317)
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
162
26. Listing of companies in the Group
Name of companies
Principal
activities
Country of
incorporation
Effective
equity
holding
2023
Effective
equity
holding
2022
(i)
Subsidiaries held by the Company
BW LPG Holding Pte. Ltd.
(a)
Investment
holding
Singapore
100%
100%
BW LPG Product Services Limited
(b)
Investment
holding
Bermuda
-
100%
(ii) Subsidiaries held by BW LPG Holding
Pte. Ltd.
BW LPG Technologies Pte. Ltd.
Investment
holding
Singapore
100%
100%
BW LPG Investments Limited
(b)
Investment
holding
Bermuda
-
100%
BW LPG LLC
Management
United States
100%
100%
BW Gas LPG Chartering Pte. Ltd
Chartering
Singapore
100%
100%
BW LPG Pool Pte. Ltd.
Chartering
Singapore
100%
100%
BW Constellation I Pte. Ltd.
Ship owning
Singapore
100%
100%
BW Constellation II Pte. Ltd.
Ship owning
Singapore
100%
100%
BW Seoul Pte. Ltd.
Ship owning
Singapore
100%
100%
BW Okpo Pte. Ltd.
Ship owning
Singapore
100%
100%
BW VLGC Pte. Ltd
Ship owning
Singapore
100%
100%
BW LPG Partners Pte Ltd
Dormant
Singapore
100%
100%
LPG Kenya Pte. Ltd.
Investment
holding
Singapore
100%
100%
BW LPG India Pte. Ltd.
Management
Singapore
52%
52%
Aurora LPG Holding AS
Management
Norway
100%
100%
BW LPG AS
Management
Norway
100%
100%
BW LPG Product Services Pte. Ltd.
LPG Trading
Singapore
85%
85%
(iii) Subsidiaries held by BW LPG Product
Services Pte. Ltd.
BW LPG Product Services S.L. (formerly
known as Vilma Oil Trading, S.L.)
LPG Trading
Spain
85%
85%
Vilma Oil Singapore Pte. Ltd.
LPG Trading
Singapore
85%
85%
BW LPG Product Services (Norway) AS
(c)
Management
Norway
85%
-
BW LPG Product Services USA LLC
(c)
LPG Trading
United States
85%
-
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
163
26. Listing of companies in the Group (continued)
Name of companies
Principal
activities
Country of
incorporation
Effective
equity
holding
2023
Effective
equity
holding
2022
(iv) Subsidiary held by BW LPG AS
BW LPG Fleet Management AS
(c)
Management
Norway
100%
-
(v) Subsidiary held by BW LPG India Pte. Ltd.
BW Global United LPG India Private
Limited
Ship owning
India
52%
52%
(vi) Joint venture held by BW VLGC Pte. Ltd.
BW Confidence Enterprise Private
Limited
(c)
LPG
wholesaler
India
50%
-
(a) “BW LPG Holding Pte. Ltd” was formerly known as “BW LPG Holding Limited”, which re-domiciled
from Bermuda to Singapore. During the financial year, there was an amalgamation between
“BW LPG Pte. Ltd. and BW LPG Holding Pte. Ltd.”, following the amalgamation, the surviving
company is known as BW LPG Holding Pte. Ltd.
(b) Companies were liquidated during the financial year
(c) Companies were newly incorporated during the financial year
27. Subsequent events
Completed the investment of US$30 million in Confidence Petroleum India Limited (“Confidence”)
through a preferential allotment of equity shares in February 2024. The shares constitute 8.5% of the
issued and paid-up share capital of Confidence on a fully diluted basis.
Concluded the sale of one VLGC in October 2023, which was delivered for further trading in February
2024. The sale generated liquidity of US$64.7 million and a net gain of US$20.4 million.
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
164
28. Comparative information
The Group identified and corrected certain immaterial errors with respect to the comparative
information for the year ended 31 December 2022. The identified errors were with respect to the
determination of functional currency with respect to a subsidiary, remeasurement of leases, and the
determination of transfer of control for certain revenue transactions. Management has evaluated the
materiality of the errors from quantitative and qualitative perspectives and concluded that the errors
were immaterial to the Group’s 2022 previously issued audited financial statements, as they were not
quantitatively significant, and did not materially impact financial metrics that the Group’s management
primarily focused on in evaluating the performance of the Group. Consequently, the Group has
corrected these immaterial errors by revising the comparative information for the year ended 31
December 2022 presented herein.
The tables below present the effect of the adjustments as of and for the period ended 31 December
2022. These adjustments exclude those related to revisions of the Vilma purchase price allocation (note
25 (c)). The effect of the immaterial correction of errors in our previously issued consolidated financial
statements as of 31 December 2022 and for the year then ended is as follows, and all applicable note
disclosures have been updated to reflected the corrections described above.
31 December 2022
As reported
Adjustment
As adjusted
US$’000
US$’000
US$’000
Consolidated statement of comprehensive income
Revenue - Product Services
730,231
(5,439)
724,792
Cost of goods sold - Product Services
(645,993)
5,439
(640,554)
Consolidated statements of financial position
Trade and other receivables
203,179
(5,586)
197,593
Derivative financial instruments - current asset
89,346
7,120
96,466
Inventories
113,945
21,987
135,932
Total current assets
740,603
23,521
764,124
Vessels and drydocking
1,484,489
35,683
1,520,172
Right-of-use assets (vessels)
264,666
(15,189)
249,477
Total non-current assets
1,799,911
20,494
1,820,405
Trade and other payables
223,923
14,071
237,994
Derivative financial instruments - current liability
33,006
7,665
40,671
Lease liabilities
136,391
(15,189)
121,202
Total current liabilities
511,962
6,547
518,509
Other reserves
(30,554)
20,777
(9,777)
Non-controlling interests
103,167
16,691
119,858
Consolidated statement of cash flows
Cash flows from operating activities
Inventories
(29,223)
(21,987)
(51,210)
Trade and other receivables
106,400
5,586
111,986
Trade and other payables
4,049
15,856
19,905
Derivative financial instruments
25,956
545
26,501
BW LPG LIMITED
AND ITS SUBSIDIARIES
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
165
29. New or revised accounting standards and interpretations
A number of new standards, interpretations and amendments to standards are effective for annual
periods beginning after 1 January 2024 and earlier application is permitted. However, the Group has
not early adopted the new or amended standards and interpretations in preparing these financial
statements. The Group does not expect any significant impact arising from applying the new IFRS
standards, interpretation and amendments to standards.
Statement of Comprehensive Income 167
Balance Sheet 168
Statement of Changes in Equity 169
Statement of Cash Flows 171
Notes to the Financial Statements 172
Parent Company Financial Statements (For The Financial Year Ended 31 December 2023)
Financial Statements
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
Board of Directors’ Report
Responsibility Statement
• Financial Statements
Consolidated Financial
Statements
• Parent Company Financial
Statements
08 ESG Report
Energy for a Changing World 16607 Financial Report • Financial Statements
BW LPG Integrated
Annual Report 2023
BW LPG LIMITED
PARENT COMPANY FINANCIAL STATEMENTS
STATEMENT OF COMPREHENSIVE INCOME
For the financial year ended 31 December 2023
The accompanying notes form an integral part of these financial statements.
167
2023
2022
Note
US$‘000
US$’000
Dividend from a subsidiary
450,000
180,000
Other operating expenses
3
(9,766)
(4,725)
440,234
175,275
Foreign currency exchange (loss)/gain - net
3
(9,734)
14,641
Profit before tax for the financial year
430,500
189,916
Income tax expense
4
-
-
Profit after tax and total comprehensive income for the
financial year
430,500
189,916
BW LPG LIMITED
PARENT COMPANY FINANCIAL STATEMENTS
BALANCE SHEET
For the financial year ended 31 December 2023
The accompanying notes form an integral part of these financial statements.
168
2023
2022
Note
US$’000
US$’000
Subsidiaries
5
1,147,954
1,185,671
Total non-current assets
1,147,954
1,185,671
Other receivables
6
180
180
Cash and cash equivalents
157
-*
Total current assets
337
180
Total assets
1,148,291
1,185,851
Share capital
7
1,400
1,419
Share premium
7
285,853
289,812
Treasury shares
7
(56,438)
-
Contributed surplus
685,913
685,913
Share-based payment reserve
7
3,905
2,141
Retained earnings
223,019
206,249
Total shareholder’s equity
1,143,652
1,185,534
Trade and other payables
8
4,639
317
Total liabilities
4,639
317
Total equity and liabilities
1,148,291
1,185,851
* Amount less than US$1,000
BW LPG LIMITED
PARENT COMPANY FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN EQUITY
For the financial year ended 31 December 2023
The accompanying notes form an integral part of these financial statements.
169
Note
Share
capital
Share
premium
Treasury
shares
Contributed
surplus
Share-based
payment
reserve
Retained
earnings
Total
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
Balance at 1 January 2023
1,419
289,812
-
685,913
2,141
206,249
1,185,534
Profit for the financial year
-
-
-
-
-
430,500
430,500
Total comprehensive income for the financial
year
-
-
-
-
-
430,500
430,500
Share-based payment reserve - Value of
employee services
7
-
-
-
-
1,696
-
1,696
Purchase of treasury shares
7
-
-
(68,653)
-
-
-
(68,653)
Shares options exercised
-
-
-
-
68
-
68
Dividends paid
11
-
-
-
-
-
(405,493)
(405,493)
Shares cancellation
(19)
(3,959)
12,215
-
-
(8,237)
-
Total transactions with owners, recognised
directly in equity
(19)
(3,959)
(56,438)
-
1,764
(413,730)
(472,382)
Balance at 31 December 2023
1,400
285,853
(56,438)
685,913
3,905
223,019
1,143,652
BW LPG LIMITED
PARENT COMPANY FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN EQUITY (continued)
For the financial year ended 31 December 2023
The accompanying notes form an integral part of these financial statements.
170
Note
Share
capital
Share
premium
Contributed
surplus
Share-based
payment
reserve
Retained
earnings
Total
US$’000
US$’000
US$’000
US$’000
US$’000
US$’000
Balance at 1 January 2022
1,419
289,812
685,913
922
143,038
1,121,104
Profit for the financial year
-
-
-
-
189,916
189,916
Total comprehensive income for the financial year
-
-
-
-
189,916
189,916
Share-based payment reserve - Value of employee
services
7
-
-
-
1,219
-
1,219
Dividends paid
11
-
-
-
-
(126,705)
(126,705)
Total transactions with owners, recognised directly in
equity
-
-
-
1,219
(126,705)
(125,486)
Balance at 31 December 2022
1,419
289,812
685,913
2,141
206,249
1,185,534
BW LPG LIMITED
PARENT COMPANY FINANCIAL STATEMENTS
STATEMENT OF CASH FLOWS
For the financial year ended 31 December 2023
The accompanying notes form an integral part of these financial statements.
171
Note
2023
2022
US$’000
US$’000
Cash flows from operating activities
Profit before tax for the financial year
430,500
189,916
Adjustments for:
- share-based payment
1,696
1,219
- non-cash dividend income
(450,000)
(180,000)
Operating cash flow before working capital changes
(17,804)
11,135
Changes in working capital:
- trade and other payables
4,389
10
Net cash (used in)/provided by operating activities
(13,415)
11,145
Cash flow from investing activities
Dividends received on behalf by a subsidiary
1
450,000
180,000
Receivables from subsidiaries
2
(17,648)
(64,440)
Net cash provided by investing activities
432,352
115,560
Cash flow from financing activity
Purchase of treasury shares
(13,287)
-
Dividends paid on behalf by a subsidiary
1
(405,493)
(126,705)
Net cash used in financing activity
(418,780)
(126,705)
Net increase in cash and cash equivalents
157
-
Cash and cash equivalents at beginning of the financial year
-
-
Cash and cash equivalents at end of the financial year
157
-
1
Non-cash transactions with a subsidiary
2
Non-cash advances to subsidiaries
* Amount less than US$1,000
BW LPG LIMITED
PARENT COMPANY FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
172
These notes form an integral part of and should be read in conjunction with the accompanying financial
statements.
1. General information
BW LPG Limited (the “Company”) is listed on the Oslo Stock Exchange and incorporated and domiciled
in Bermuda. The address of its registered office is c/o Inchona Services Limited, Washington Mall
Phase 2, 4th Floor, Suite 400, 22 Church Street, HM 1189, Hamilton HM EX, Bermuda .
The principal activity of the Company is that of investment holding.
These financial statements were authorised for issue by the Board of Directors of BW LPG Limited on
27 March 2024.
2. Material accounting policies
(a) Basis of preparation
The financial statements have been prepared in accordance with IFRS Accounting Standards,
and have been prepared under the historical cost convention, except as disclosed in the
accounting policies below.
New standards, amendments to published standards and interpretations
The Company has adopted the new standards and amendments to published standards as at
1 January 2023. Changes in the Company’s accounting policies have been made as required,
in accordance with the transitional provisions in the respective standards and amendments.
The adoption of these new or amended standards and amendments did not result in
substantial changes in the Group’s accounting policies and had no material effect on the
amounts reported for the current or prior financial years.
Critical accounting estimates, assumptions and judgements
The preparation of the financial statements in conformity with IFRS requires Management to
exercise its judgement in the process of applying the Company’s accounting policies. It also
requires the use of certain critical accounting estimates and assumptions. Estimates,
assumptions and judgements are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are believed to be
reasonable under the circumstances. There are no estimates and assumptions which have a
material effect on the financial statements.
(b) Revenue and income recognition
Dividend income
Dividend income is recognised when the right to receive payment is established.
BW LPG LIMITED
PARENT COMPANY FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
173
2. Material accounting policies (continued)
(c) Interest in subsidiaries
Investments in subsidiaries are carried at cost less accumulated impairment losses in the
Company’s balance sheet. On disposal of such investments, the difference between disposal
proceeds and the carrying amounts of the investments are recognised in profit or loss.
Receivables from subsidiaries where settlement is neither planned nor likely in the
foreseeable future, are classified as non-current. These receivables are measured at
amortised cost subsequent to initial measurement. In assessing an impairment allowance,
the Company uses the accounting policy described in note 2(d).
(d) Impairment of non-financial assets
For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair
value less cost to sell and value-in-use) is determined on an individual asset basis unless the
asset does not generate cash flows that are largely independent of those from other assets.
If this is the case, the recoverable amount is determined for the cash-generating unit (“CGU”)
to which the asset belongs.
If the recoverable amount of the asset is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable amount. The difference
between the carrying amount and recoverable amount is recognised as an impairment loss
in profit or loss.
An impairment loss for an asset (or CGU) is reversed if, and only if, there has been a change
in the estimates used to determine the asset’s (or CGU’s) recoverable amount since the last
impairment loss was recognised. The carrying amount of this asset (or CGU) is increased to
its revised recoverable amount, provided that this amount does not exceed the carrying
amount that would have been determined (net of accumulated depreciation) had no
impairment loss been recognised for the asset (or CGU) in prior years. A reversal of
impairment loss for an asset (or CGU) is recognised in profit or loss.
(e) Fair value estimation of financial assets and liabilities
The carrying amounts of current financial assets and liabilities carried at amortised costs
approximate their fair values due to the short-term nature of the balances.
(f) Foreign currency translation
(1) Functional currency
The financial statements of the Company are presented in United States Dollar (“US$”),
which is the functional currency.
(2) Transactions and balances
Transactions in a currency other than the functional currency (“foreign currency”) are
translated into the functional currency using the exchange rates prevailing at the dates
of the transactions. Foreign currency exchange gains and losses resulting from the
settlement of such transactions and from the translation of monetary assets and
liabilities denominated in foreign currencies at the closing rates at the balance sheet
date are recognised in profit or loss.
BW LPG LIMITED
PARENT COMPANY FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
174
2. Material accounting policies (continued)
(g) Share capital
Common shares are classified as equity. Incremental costs directly attributable to the issuance
of new common shares are deducted against share premium, a component of the share
capital account.
(h) Dividend to Company’s shareholders
Dividends to Company’s shareholders are recognised when the dividends are approved for
payment.
3. Expenses by nature
2023
2022
US$’000
US$’000
Directors’ fees
376
376
Share-based payments - equity settled
1,696
1,219
Fees to auditors of Company and other firms affiliated with KPMG
International Limited:
- Audit
- Other services
1,787
49
200
-
Legal and professional fees
2,484
26
Support service fees charged by subsidiaries
2,931
2,506
Other expenses
443
398
Total other operating expenses
9,766
4,725
Foreign currency exchange (loss)/gain - net
1
(9,734)
14,641
1
Mainly attributable to currency exchange movement on foreign currency denominated intercompany
balances with a Company’s subsidiary which are eliminated on consolidation.
4. Income tax
No provision for tax has been made for the year ended 31 December 2023 and 2022 as the Company
does not have any income that is subject to income tax based on the tax legislation applicable to the
Company.
There is no income, withholding, capital gains or capital transfer taxes payable in Bermuda.
5. Subsidiaries
2023
2022
US$’000
US$’000
Equity investments at cost
685,910
685,920
Receivables from subsidiaries
462,044
499,751
1,147,954
1,185,671
The receivables from subsidiaries are classified as financial assets at amortised cost. Allowance for
impairment on these receivables is insignificant. The receivables are unsecured, interest-free and have
no fixed terms of repayment. The settlement of these receivables is neither planned nor likely in the
foreseeable future. Accordingly, the receivables are classified as non-current.
BW LPG LIMITED
PARENT COMPANY FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
175
5. Subsidiaries (continued)
Details of the subsidiaries held directly by the Company are as follows:
Name of company
Principal
activity
Country of
incorporation
Equity
holding
2023
Equity
holding
2022
BW LPG Holding Pte. Ltd.
Investment
holding
Singapore
100%
100%
BW LPG Product Services Limited
Investment
holding
Bermuda
-*
100%
*Company was liquidated during the financial year
6. Other receivables
2023
2022
US$’000
US$’000
Other receivables - related parties ^
6
6
Other receivables - non-related parties
174
174
180
180
^ Related parties refer to corporations controlled by a shareholder of the Company.
The carrying amounts of other receivables, principally denominated in US$, approximate their fair
values due to the short-term nature of these balances.
Other receivables due from related parties are unsecured, interest-free and are repayable on
demand.
7. Share capital and other reserves
(a) Issued and fully paid share capital
(i) As at 31 December 2023, the Company’s authorised share capital is
US$1,620,000 divided into 162,000,000 common shares of US$0.01 each, with
140,000,000 issued and fully paid shares.
As at 31 December 2022, the Company’s authorised share capital is
US$1,620,000 divided into 162,000,000 common shares of US$0.01 each with
141,939,998 issued and fully paid shares.
Fully paid common shares carry one vote per share and carry a right to dividend
as and when declared by the Company.
(ii) The Company operates two equity-settled, share-based compensation plans. The
2017 Long-Term Incentive Plan (“LTIP 2017”) was fully awarded in 2021. At the
end of the vesting periods between February 2020 and February 2024, common
shares of 2,043,784 may be acquired by certain employees, from the Company
at a predetermined strike price. Under the 2022 Long-Term Incentive Plan (“LTIP
2022”), at the end of the vesting periods between February 2025 and February
2029, common shares of 3,463,336 may be acquired by certain employees from
the Company at a predetermined strike price.
BW LPG LIMITED
PARENT COMPANY FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
176
7. Share capital and other reserves (continued)
(b) Share premium
The difference between the consideration for common shares issued and their par value are
recognised as share premium.
(c) Share-based payment reserve
Certain employees are entitled to receive common shares in the Company. This award is
recognised as an expense in the consolidated profit or loss with a corresponding increase in
the share-based payment reserve over the vesting periods. For the year ended
31 December 2023, an expense of US$1.7 million (2022: US$1.4 million) was recognised in
the profit or loss with a corresponding increase (2022: increase) recognised in the share-
based payment reserve.
(d) Treasury shares
Number of shares
Amount
2023
2023
’000
US$’000
Balance as at 1 January
-
-
Transfer of treasury shares
9,554
55,366
Purchases of treasury shares
1,311
13,287
Cancellation of treasury shares
(1,939)
(12,215)
Balance as at 31 December
8,926
56,438
In FY2023, a wholly owned subsidiary of the Company transferred its holding of 9,554,003
shares in the Company to the Company as part of an internal reorganization, following which,
the Company further resolved to cancel 1,938,998 treasury shares in the Company. The
Company also purchased a total of 1,311,100 of its own common shares at an average price
of US$10.14 (NOK106.90) per share for an aggregate consideration of US$13.3 million
(NOK140.2 million).
8. Trade and other payables
2023
2022
US$’000
US$’000
Trade payables - non-related parties
6
48
Other accrued operating expenses
4,633
269
4,639
317
The carrying amounts of trade and other payables, principally denominated in US$, approximate their
fair values due to the short-term nature of these balances.
BW LPG LIMITED
PARENT COMPANY FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
177
9. Related party transactions
In addition to the information disclosed elsewhere in the financial statements, the following
transactions took place between the Company and related parties during the financial year at terms
agreed between the parties:
(a) Services
2023
2022
US$’000
US$’000
Corporate service fees charged by subsidiaries
2,931
2,506
(b) Key management’s remuneration
2023
2022
US$’000
US$’000
Directors’ fees
376
376
10. Financial risk management
The Company’s activities expose it to a variety of financial risks. The Company’s overall risk
management programme focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on financial performance of the Company.
The Board of Directors is responsible for setting the objectives and underlying principles of financial
risk management for the Company.
(a) Market risk – Currency risk
The Company is exposed to currency risk arising from payables to a subsidiary that are
denominated in a currency other than the Company’s functional currency. The currency in
which these payables are denominated are in Norwegian Krone (“NOK”) of US$ 432.0 million
(2022: US$171.2 million). A reasonable possible strengthening of the USD against NOK by 3%
would have increased profit before tax by US$12.9 million (2022: US$5.1 million). This
analysis assumes all other variables remain constant.
(b) Credit risk
The Company‘s exposure to credit risk is primarily attributable to receivables from subsidiaries,
other receivables and cash and cash equivalents. Bank deposits are not impaired and are
mainly deposits with banks with credit-ratings assigned by international credit-rating
agencies. Receivables from subsidiaries and other receivables are neither past due nor
impaired. The maximum exposure is represented by the carrying value of each financial asset
on the balance sheet.
BW LPG LIMITED
PARENT COMPANY FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
178
10. Financial risk management (continued)
(c) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash, the availability of
funding through an adequate amount of committed credit facilities and the ability to close
out market positions. The Company maintains sufficient cash for its daily operations via short-
term cash deposits at banks and funding from a subsidiary.
The table below analyses non-derivative financial liabilities of the Company into relevant
maturity groupings based on the remaining period from the balance sheet date to the
contractual maturity date on an undiscounted basis.
Less than
1 year
US$’000
At 31 December 2023
Trade and other payables
4,639
At 31 December 2022
Trade and other payables
317
(d) Capital risk
The Company’s objectives when managing capital are to safeguard the Company’s ability to
continue as a going concern and to maintain an optimal capital structure so as to maximise
shareholder value. In order to maintain or achieve an optimal capital structure, the Company
may adjust the amount of dividend paid, return capital to shareholders, or collect dividend
from the subsidiary.
The Company is not subject to any externally imposed capital requirements for the financial
years ended 31 December 2023 and 31 December 2022.
(e) Financial instruments by category
The aggregate carrying amounts of the Company’s financial instruments are as follows:
2023
2022
US$’000
US$’000
Financial assets at amortised cost
462,224
499,931
Financial liabilities at amortised cost
4,639
317
BW LPG LIMITED
PARENT COMPANY FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2023
179
11. Dividends paid
2023
2022
US$’000
US$’000
Final dividend paid in respect of FY 2022 of US$0.52
(2022: in respect of FY 2021 of US$0.18) per share
68,731
24,182
Interim dividend paid in respect of Q1 2023 of US$0.95
(2022: in respect of Q1 2022 of US$0.31) per share
125,734
42,072
Interim dividend paid in respect of Q2 2023 of US$0.81
(2022: in respect of Q2 2022 of US$0.20) per share
106,127
26,528
Interim dividend paid in respect of Q3 2023 of US$0.80
(2022: in respect of Q3 2022 of US$0.25) per share
104,901
33,923
405,493
126,705
The Board has declared a final cash dividend of US$0.90 per share for 2023, amounting to US$118.0
million. Together with the interim dividend paid for Q1 2023 of US$0.95 per share, Q2 2023 of US$0.81
per share and Q3 2023 of US$0.80 per share, the total dividend payout for FY 2023 will amount to
US$3.46 per share or US$454.8 million. The shares will be traded ex-dividend on and after 5 March
2024. The dividend will be payable on or about 22 March 2024 to shareholders of record as at 6 March
2024.
12. New or revised accounting standards and interpretations
A number of new standards, interpretations and amendments to standards are effective for annual
periods beginning after 1 January 2024 and earlier application is permitted. However, the Company
has not early adopted the new or amended standards and interpretations in preparing these financial
statements.
There are no other IFRS or IFRIC interpretations that are not yet effective that would be expected to
have a material impact on the Company.
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
Performance Metrics
ESG Indexes
08 ESG Report
Energy for a Changing World 18008 ESG Report
BW LPG Integrated
Annual Report 2023
ESG Report
Table of Contents
01 Introduction
02 Highlights
03 We are BW LPG
04 Strategy
05 Performance
06 Sustainability
07 Financial Report
08 ESG Report
• Performance Metrics
• ESG Indexes
Information on the Group’s non-financial
performance can be found at the links below.
Unless otherwise stated, the ESG performance
data is reported on the basis of the same
principles as the financial statements.
Guidance on how BW LPG covers reporting of ESG-related matters is based on the following
reporting standards. Links to the ESG indexes are provided below for reference.
Certain prior year data has been restated based
on improvements made to reporting processes
and data quality within the reporting year.
Performance Metrics
ESG Indexes
SASB Alignment → TCFD Alignment → GRI Content Index →
ESG Pillar Material Topics Performance Data
Environment
• Climate Change → Emissions
→ Carbon Intensity
→ Energy
→ Comments on
Environment Data
• Emissions and Energy
• Protecting Biodiversity → Ship Recycling and Ecological Impacts
Social
• Working Environment → Health and Safety
→ Training
→ Crew and Employee
→ Comments on
Social Data
• Recruitment, Development
and Retention
Governance
• Business Conduct → Board Diversity
→ Anti-Corruption Risks and Incidents
→ Comments on
Governance Data
• Effective Management → Activity Metrics
→ Economic Performance and
Contributions
• Supply Chain → Supply Chain
Energy for a Changing World 18108 ESG Report
BW LPG Integrated
Annual Report 2023
Copyright © 2024 BW LPG Limited.
All rights reserved.
Singapore Office
10 Pasir Panjang Road
Mapletree Business City #17-02
Singapore 117438
Tel: +65 6705 5588
Website:
https://www.bwlpg.com
Investor Relations:
investor.relations@bwlpg.com
BW LPG Integrated Annual Report 2023
Energy for a Changing World