OB:BWLPG

Stock Analysis Report

Executive Summary

BW LPG Limited, an investment holding company, engages in shipowning and chartering activities worldwide.


Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

How has BWG's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BWLPG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.2%

BWLPG

12.4%

NO Oil and Gas

4.8%

NO Market


1 Year Return

-11.9%

BWLPG

-32.2%

NO Oil and Gas

-24.3%

NO Market

Return vs Industry: BWLPG exceeded the Norwegian Oil and Gas industry which returned -32.2% over the past year.

Return vs Market: BWLPG exceeded the Norwegian Market which returned -24.3% over the past year.


Shareholder returns

BWLPGIndustryMarket
7 Day11.2%12.4%4.8%
30 Day-40.2%-12.7%-17.0%
90 Day-62.4%-29.5%-25.0%
1 Year0.08%-11.9%-28.2%-32.2%-20.3%-24.3%
3 Year-17.3%-27.2%4.8%-8.4%2.0%-10.7%
5 Year-22.1%-54.3%10.3%-11.9%16.7%-9.4%

Price Volatility Vs. Market

How volatile is BWG's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BWG undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BWLPG (NOK31.18) is trading below our estimate of fair value (NOK155.45)

Significantly Below Fair Value: BWLPG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BWLPG is good value based on its PE Ratio (1.5x) compared to the Oil and Gas industry average (6x).

PE vs Market: BWLPG is good value based on its PE Ratio (1.5x) compared to the Norwegian market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: BWLPG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BWLPG is good value based on its PB Ratio (0.4x) compared to the NO Oil and Gas industry average (0.5x).


Next Steps

Future Growth

How is BWG forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-24.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BWLPG's earnings are forecast to decline over the next 3 years (-24.6% per year).

Earnings vs Market: BWLPG's earnings are forecast to decline over the next 3 years (-24.6% per year).

High Growth Earnings: BWLPG's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BWLPG's revenue is expected to decline over the next 3 years (-21.9% per year).

High Growth Revenue: BWLPG's revenue is forecast to decline over the next 3 years (-21.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BWLPG's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has BWG performed over the past 5 years?

-47.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BWLPG has a large one-off gain of $55.3M impacting its December 31 2019 financial results.

Growing Profit Margin: BWLPG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BWLPG's earnings have declined by -47% per year over the past 5 years.

Accelerating Growth: BWLPG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BWLPG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (39.2%).


Return on Equity

High ROE: BWLPG's Return on Equity (23.3%) is considered high.


Next Steps

Financial Health

How is BWG's financial position?


Financial Position Analysis

Short Term Liabilities: BWLPG's short term assets ($388.0M) exceed its short term liabilities ($270.0M).

Long Term Liabilities: BWLPG's short term assets ($388.0M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: BWLPG's debt to equity ratio (90.4%) is considered high.

Reducing Debt: BWLPG's debt to equity ratio has increased from 45.3% to 90.4% over the past 5 years.

Debt Coverage: BWLPG's debt is well covered by operating cash flow (30.3%).

Interest Coverage: BWLPG's interest payments on its debt are well covered by EBIT (5.3x coverage).


Balance Sheet

Inventory Level: BWLPG has a high level of physical assets or inventory.

Debt Coverage by Assets: BWLPG's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is BWG's current dividend yield, its reliability and sustainability?

56.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BWLPG's dividend (56.1%) is higher than the bottom 25% of dividend payers in the Norwegian market (3.78%).

High Dividend: BWLPG's dividend (56.1%) is in the top 25% of dividend payers in the Norwegian market (8.06%)


Stability and Growth of Payments

Stable Dividend: BWLPG has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: BWLPG's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.1%), BWLPG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BWLPG's dividends in 3 years are forecast to be well covered by earnings (46.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Anders Onarheim (60yo)

0.25

Tenure

Mr. Anders Onarheim serves as Interim Chief Executive Officer at BW LPG Limited since January 01, 2020. Mr. Onarheim served as Director of DHT Holdings, Inc. from October 3, 2018 to November 2019. Mr. Onar ...


Leadership Team

NamePositionTenureCompensationOwnership
Anders Onarheim
Interim CEO & Director0.25yrno datano data
Elaine Ong
Chief Financial Officer4.75yrsno datano data
Pontus Berg
Executive Vice President of Technical & Operations5yrsno datano data
Iver Baatvik
Head of Investor Relationsno datano datano data
Niels Rigault
Executive Vice President of Commercial3.83yrsno data0.069% $3.0m

4.3yrs

Average Tenure

45yo

Average Age

Experienced Management: BWLPG's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anders Onarheim
Interim CEO & Director0.25yrno datano data
Andreas Sohmen-Pao
Chairman of the Board6.58yrsno datano data
Anne Dalane
Independent Director6.42yrsno datano data
John Harrison
Vice Chairman6.42yrsno datano data
Martha Kold Bakkevig
Independent Director2.67yrsno datano data
Andreas Beroutsos
Independent Director6.42yrsno datano data

6.4yrs

Average Tenure

58yo

Average Age

Experienced Board: BWLPG's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

BW LPG Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BW LPG Limited
  • Ticker: BWLPG
  • Exchange: OB
  • Founded: 1935
  • Industry: Oil and Gas Storage and Transportation
  • Sector: Energy
  • Market Cap: kr4.312b
  • Shares outstanding: 138.28m
  • Website: https://www.bwlpg.com

Number of Employees


Location

  • BW LPG Limited
  • 10 Pasir Panjang Road
  • No. 17-02, Mapletree Business City
  • Singapore
  • 117438
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BWLPGOB (Oslo Bors)YesOrdinary SharesNONOKNov 2013
BW9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2013
0QIXLSE (London Stock Exchange)YesOrdinary SharesGBNOKNov 2013
BWLL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2013
BWLPGOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKNov 2013
BWLL.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDMay 2014

Biography

BW LPG Limited, an investment holding company, engages in shipowning and chartering activities worldwide. It operates through three segments: Very Large Gas Carriers (VLGCs), Large Gas Carriers (LGCs), and Product Services. The company is involved in the transportation of liquefied petroleum gas to oil companies, and trading and utility companies; and product trading and delivery activities. As of February 28, 2020, it had a fleet of 47 vessels, including 35 owned VLGCs, 10 chartered VLGCs, and 2 owned and operated VLGCs by a joint venture with a total carrying capacity of approximately 3 million cubic meters. The company was formerly known as BW Gas LPG Holding Limited and changed its name to BW LPG Limited in September 2013. BW LPG Limited was founded in 1935 and is headquartered in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 11:25
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.