Time charter equivalent(TCE) earnings of $100.4m were nearly double those of a year ago, as VLGC TCErates averaged $32,700 pd versus $20,500 pd in the first quarter of 2013.
BW LPG said theimproved performance was helped by the full deployment in the first quarter ofthe fleet acquired from Maersk.
The increase waspartially offset by a decrease of $3.5m in TCE income from the LGC segment,resulting from technical off-hire and commercial waiting time.
BWLPG said LPG export markets have continued to develop favorably since the startof the year, driven particularly by rapidly expanding exports from the US.
“Thegrowth in LPG export tonne-miles seems set to continue, given visibility of additionalexport terminal capacity planned to come online in the US and ongoingcommissioning of new petrochemical plants in Asia,” it said.
“Inlate November 2013 it was announced that sanctions on Iranian exports ofcertain petrochemical products, including possibly LPG, would be temporarilylifted, which we estimate could see an incremental 3mtpa become available forinternational consumption.
“Thiswill be subject to the successful conclusion of ongoing negotations between theUS, EU and Iran and is unlikely to manifest until at least the end of 2014.
“Iranian cargoes are not a target market of the groupand this development is not anticipated to have a significant market impact.”
However,BW LPG warned that newbuilding orders continue to grow, and the market will see “significantdeliveries” of new tonnage, in particular in 2015 and 2016.
“While the growth in demand for tonnage isvisible in 2014 and 2015, it is more difficult to project the impact ofincremental deliveries on supply/demand balance for tonnage beyond 2015, as theoutlook for global export volumes and the destinations of cargoes togetherimpacting tonne-mile demand is less clear.”
BW LPG has 36 gascarriers in the water, all but five of which are VLGCs, and has eight more onorder at Hyundai Heavy Industries.
