Shareholder Information

2016 Performance of share on relative and absolute values

BW LPG’s shares traded down in early 2016, closely tracking falling energy prices. Lingering concerns over excess oil and gas supplies and the resilience of U.S. production weakened crude oil prices in the third quarter, and by extension Asian naphtha and propane prices. This resulted in fewer arbitrage opportunities and a fall in freight rates, causing the shares to continue under performing through the third quarter. After bottoming in September, the shares recovered through the end of the year. The share price recovery was led by an uptick in the physical freight market and an improvement in the energy market sentiment on the back of the OPEC production cut.

Indexed BW LPG Share Price Performance Relative to Norway-Listed VLGC Peers
(01 January 2016 - 31 December 2016)

Note: Share price not adjusted for
dividends, buybacks or share issuance.

2016 Total Shareholder Return (NOK Million)

The shares started the year at NOK 71.75 before falling to the high-teens in the third quarter, and then experiencing a strong counter-seasonal rally to end the year at NOK 36.33. On a full year basis, the shares depreciated by 48%, which was offset by a dividend on 9%, resulting in a total shareholder return of -39% for the calendar year .

BW LPG outperforms peer group on both cash flows and shareholder returns since IPO

Dividends at Stated Policy of 50% of profits

The Company paid a final dividend of USD 0.68 (NOK 5.65) per share in May 2016 for the second half of 2015. The Company paid USD 0.09 (NOK 0.7382) per share in September 2016 as an interim dividend for the first half of 2016. Both dividend payments are at our stated policy of 50%. Of the 141,938,998 shares in issue, 69,294 are treasury shares acquired through a share buy-back programme and are not entitled to dividends.

  Earnings Per Share Dividend Per Share Payout Ratio Share Price at Period End (USD) Annualized Earnings Yield Annualized Dividend Yield
H1 2015 $1.03 $0.78 75% $8.54 24% 18%
H2 2015 $1.41 $0.68 50% $8.30 34% 16%
H1 2016 $0.04 $0.09 50% $3.79 2% 5%
H2 2016 $0.14 $0.00 50% $4.20 7% 0%

Accumulated dividend yield of 58%

Since listing in 2013, we have paid out dividends of USD 3.61 (NOK 27.15) per share, USD 485 million in total as of 30 December 2016, with an accumulated dividend yield of 58% on the IPO price of NOK 47 per share.

Investor Relations Policy

We always:

  1. Annual and quarterly reports and press releases,
  2. Annual General Meetings, Investor & Analyst presentations and information sessions,
  3. Industry seminars and events where industry participants and investors are represented.

Diverse Shareholder Base

BW LPG gained many new shareholders in 2016 and there were a total of 4,168 shareholders at 31st December 2016, a 40% increase from 2015. Of the total shareholders, the ten largest shareholders (including the BW Group), held 66.15% of the shares outstanding. Apart from BW Group, the largest geographical shareholding of the Company was in Norway, with other major shareholdings in the United States, Luxembourg and Sweden.

Top 20 BW LPG Shareholders Shares % Ownership
BW Group 63,035,3401 44.41
JP Morgan Chase Bank London 11,638,313 8.20
Sundt As 6,793,682 4.79
Folketrygdfondet 2,895,077 2.04
KLP Aksjenorge 1,940,776 1.37
JP Morgan Bank Luxembourg S.A. 1,913,885 1.35
Capital International Fund 1,862,025 1.31
Deutsche Bank AG 1,481,246 1.04
Swedbank Generator 1,233,703 0.87
Verdipapirfondet Pareto Investment 1,100,000 0.77
State Street Bank and Trust Company 982,591 0.69
Credit Suisse Securities (USA) LLC 947,349 0.67
Transpetrol Shipping Ltd 926,990 0.65
Clearstream Banking S.A. 898,571 0.63
Nordnet Bank AB 829,776 0.58
VPF Nordea Norge Verdi 824,622 0.58
Reliability LLC 819,169 0.58
State Street Bank and Trust Company 803,100 0.57
Fidelity Puritan Trust 802,929 0.57
State Street Bank and Trust Company 798,535 0.56
Total remaining shareholders 39,411,319 27.77
Total 141,938,998 100.00

1 In aggregate BW Group Limited holds 63,693,439 shares. The balance of shares disclosed above, 63,035,340 is distributed among nominee accounts.

Geographical distribution of shareholders