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BW Gas Ltd (OSL:BWGAS) (Hamilton, Bermuda, 13 November 2008) Highlights - Relatively stable TC earnings for the VLGC and LGC segments - Decreasing TC earnings for the MGC segment - LNG long-term timecharters continue to provide a reliable cash flow - One newbuilding VLGC delivered and one second-hand VLGC bought - One LGC sold - VLGC and MGC pools terminated in September - BW Gas Ltd listed on the Oslo Stock Exchange - Right-sizing effected in the shore based organization
Results BW Gas recorded a third quarter operating profit before depreciation and disposals of USD 56.9 million, compared to USD 74.4 million in the third quarter of 2007. Operating profit was USD 34.9 million in the third quarter of 2008, compared to USD 58.1 million in the same period of 2007. Gain on sale of vessels amounted to USD 5.0 million, compared to USD 10.9 million in the third quarter of 2007.
The third quarter of 2008 showed increasing freight rates for the VLGCs, fairly stable freight rates for the LGCs and decreasing freight rates for the MGCs, compared to the same period in 2007. Elevated bunker prices continued to have an adverse effect on TC earnings, particularly for the VLGCs. The operating profit in the LPG segment amounted to USD 24.4 million in the third quarter of 2008, compared to USD 36.9 million in the third quarter of 2007. The average number of LPG vessels owned and chartered-in decreased from 48.1 to 44.6.
The operating profit in the LNG segment amounted to USD 24.2 million in the third quarter of 2008, compared to USD 24.4 million in the third quarter of 2007. The average number of LNG vessels decreased from 6.5 to 5.5 as one small LNG vessel was sold in February 2008.
Operating expenses increased by USD 9.1 million from USD 52.0 million in the third quarter of 2007 to USD 61.1 million in the third quarter of 2008, mainly due to a one-off charge of USD 8.3 million related the right-sizing effected in the shore based organization in this quarter, higher manning expenses and to the effects of the weakening of USD against NOK related to the NOK denominated share of operating expenses.
The accounts show net financial income of USD 37.6 million in the third quarter of 2008 (USD - 34.2 million in 2007), of which interest expenses amounted to USD 22.2 million (USD 21.8 million in 2007). Net foreign exchange gain amounted to USD 78.2 million (USD -1.8 million in 2007), of which USD 68.6 million is an unrealised foreign exchange gain related to the NOK denominated tax liability. Other financial items amounted to USD - 21.6 million in the third quarter of 2008 (USD - 16.5 million in 2007), and consist mainly of changes in marked to market value of interest rate swaps.
Profit before tax amounted to USD 72.5 million in the third quarter of 2008, compared to USD 23.9 million in the third quarter of 2007. Net profit was USD 111.6 million (USD 0.9 per share) in the third quarter of 2008, compared to a net profit of USD 17.0 million in the third quarter of 2007 (USD 0.1 per share).
Income tax gain amounted to USD 39.1 million in the third quarter of 2008, compared to a tax expense of USD 6.9 million in the third quarter of 2007, and is mainly related to calculated changes in deferred tax in ordinary taxed companies as a result of a reversal of unrealised foreign exchange gains on internal loans.
The board of directors.
For further information The entire quarterly report and the presentation material are attached and also available on our website (www.bwgas.com >> investor relations).
A presentation will take place 09.00 CET at Bergehus and will be transferred live on the Internet (webcast) via a link on www.bwgas.com and www.oslobors.no/ob/webcast. The presentation will be held in English. The presentation will end with a Q&A session and questions can be posted through the webcast.
Contacts Jan Håkon Pettersen Managing Director and CEO Ph: + 47 22 12 06 00 E-mail: jan.hakon.pettersen@bwgas.com
Nicholas M. Gleeson Director, Finance Division and CFO Ph: +65 6337 2133 E-mail: nicholas.gleeson@bwgas.com
BW GAS - THE LEADING CLEAN ENERGY CARRIER BW Gas is a leading global provider of gas marine transportation services. The company is the largest owner and operator of LPG (liquefied petroleum gas) carriers and one of the largest independent owners and operators of LNG (liquefied natural gas) carriers. BW Gas owns, part-owns and/or operates a fleet of 69 vessels including newbuildings, of which 56 are LPG vessels transporting mainly LPG and ammonia and 13 are LNG vessels. Currently the company employs approximately 1,700 seagoing personnel and 180 onshore employees.
For more information on BW Gas visit our website: www.bwgas.com
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