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    Eirik Haavaldsen • Pareto Securities

    Eirik Haavaldsen's questions to BW LPG Ltd (BWLP) leadership

    Eirik Haavaldsen's questions to BW LPG Ltd (BWLP) leadership • Q2 2024

    Question

    Eirik Haavaldsen of Pareto Securities asked if the company plans to increase its time charter coverage for 2025/2026 to de-risk its position following the increased financial leverage from the Avance Gas fleet acquisition. He also questioned the potential impact on G&A expenses.

    Answer

    Executive Kristian Sørensen responded that while not guaranteed, the company has historically been comfortable with a charter coverage level in the 30-40% range to balance market exposure with downside protection. He also confirmed that the current organization can absorb the 12 new vessels without any planned increase in G&A expenses.

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    Eirik Haavaldsen's questions to BW LPG Ltd (BWLP) leadership • Q2 2024

    Question

    Eirik Haavaldsen of Pareto Securities asked if the increased fleet size and financial leverage would lead to a more aggressive time charter strategy for 2025-2026, and questioned the impact of the acquisition on G&A expenses.

    Answer

    Executive Kristian Sørensen indicated that while not guaranteed, the company is comfortable with its historical charter coverage of 35-40% for downside protection and will likely maintain a similar strategy. He also confirmed that the current organization can absorb the 12 new vessels without increasing G&A expenses, suggesting potential for improved efficiency.

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