Welcome to BW LPG’s Second Quarter 2018 Financial Results Presentation. You will be brought through the presentation by BW LPG’s CEO, Martin Ackermann; and CFO, Elaine Ong. They will be pleased to address any questions after the presentation. [Operator Instructions]. Certain statements in this conference call may constitute forward-looking statements based upon management’s current expectations and include known and unknown risks, uncertainties, and other factors, many of which BW LPG is unable to predict or control, that may cause BW LPG’s actual results, performance or plans to differ materially from any future results, performance or plans expressed or implied by such forward-looking statements. In addition, nothing in this conference call constitutes an offer to purchase or sell or a solicitation of an offer to purchase or sell any securities. With that, I am now pleased to turn the call over to BW LPG’s CEO, Martin Ackermann. Please go ahead sir.

Thank you very much Anna. Welcome to the presentation of BW LPG's results for the second quarter of 2018, the financial period ending 30th of June. I am as always joined by our CFO, Elaine Ong. We appreciate your interest and we will take questions at the end of the call. Before we get into the discussion of the company's financials and operational results, I want to briefly address where we stand regarding our proposed combination will Dorian LPG. On July 9th we increased our all stock proposal, the revised proposal represent the value of 8.73 per share of Dorian LPG common stock. Based on our closing share price on 29th August yesterday, [indiscernible] 34.37. The Dorian LPG Board has not yet formally responded to this increased proposal we submitted more than eight weeks ago. We continue to believe that the proposed combination of BW LPG and Dorian LPG is a unique opportunity to maximize value for all shareholders and would deliver compelling benefits to the stakeholders of both companies. Together the company -- the combined company would have a larger fleet with better geographical coverage, improved utilization, scheduling, and positioning. It would also have a significantly strengthened credit profile which would provide greater financial flexibility to invest for the future and realize substantial financial and operational synergies. We believe the power of this combination would directly benefit customers as we advance our vision as a premier shipping company. There is strong support from Dorian LPG shareholders for the proposed combination and we look forward to a response from the Dorian LPG and them showing a willingness to constructively engage with us in the weeks ahead to discuss the merits of the combination. As such we announced our intent to nominate three independent highly qualified candidates to stand for election…

Thanks Martin. Starting with our income statement on slide 12, our net revenue for the quarter was $61 million compared to $91 million in the same quarter last year. This is mostly due to lower spot rates and smaller fleet size. Charter high expenses for the quarter decreased mainly due to lower hire rates for our charter in vessels. We generated EBITDA of $8 million in the quarter compared to $40 million in the same quarter last year. We reported a net loss of $27 million or $0.20 per share in the quarter. Turning to slide 13, we provide a snapshot of our balance sheet and cash flow position. We continue to maintain our leverage ratio at 55% and we ended the quarter with cash and cash equivalents of $40 million. On slide 14 you'll see our net debt positions at $1.2 billion at the end of the quarter. Total liquidity consisting of available cash and undrawn facilities was $255 million. We currently have five debt facilities and $800 million facility with $316 million outstanding and $215 million of undrawn credit. A $400 million ECA facility with $335 million outstanding. A $221 million ECA facility with $187 million outstanding, a third ECA financing at $290 million with $254 million outstanding. And finally a $150 million term loan with $145 million outstanding. With that I would like to hand it back to Martin to conclude our presentation.

Thank you Elaine. So if you please turn to slide 15 I will summarize our earnings presentation. We netted a loss per share of $0.20 in the quarter on net revenues of $61 million. BW Denise was sold and BW Havis was recycled. Together these generate additional liquidity of $30 million and a book gain of $2 million. We propose to combine with Dorian LPG in an all stock transaction and an exchange ratio of 2.05 and later to 2.12. On 19th of July we filed a preliminary proxy statement with the SEC relating to our proposal to nominate three independent directors at Dorian LPG's Annual General Meeting. On 30 August, 2018 BW LPG has entered into contracts to retrofit dual-fuel LPG propulsion engines on four VLGC's including future options. With the world's first LPG fuel engines BW LPG continues its emphasis on reducing global emissions and promoting a fuel efficient alternative for the shipping industry. Looking ahead we expect total contract coverage of 15% for the remainder of the year. While there has been a recent uptick in freight rates, our short-term outlook remains cautious as we enter the second half of the year due to the last fleets supply growth, unfavorable geographical LPG price spreads, and high VLGC utilization of the Panama Canal and global geopolitical tensions. As winter approaches we expect further rebuilding of U.S. LPG inventories and we maintain our view that sustained U.S. LPG production growth and no further fleet supply growth is the key to reopening global price spreads and a rebound in freight levels. Looking forward the following factors should help rebalance the VLGC market including continued U.S. export growth, new wave of PDH facilities, and expansion of existing plants in Asia as well as a healthy growth in Asian retail demand. With that we would like to open up the call for questions.

Thank you Martin. [Operator Instructions]. Our first question comes from Peder from Fearnley Securities. Your line is now open. Please go ahead.

Hi guys, just two quick questions for me. First of all on the contract book, obviously there hasn’t been much happening on that scene for the past year but with rates now above cash breakeven levels do you have any indications or are there more interest out there now and can you potentially give some indications at what levels you would be interested in concluding business at?

Hi Peder, good to hear from you and thanks for calling in. Yes, you're absolutely right that there has been an increase in freight levels and as you said yourself current spot rates are above breakeven or at least our breakeven. And I think that's however where the spot market is right now. I think there's still a bit of a bid ask spreads between what we want and what the charters are willing to pay. But we are seeing that narrowing and has been stumped period charters entered here over the last six months but those rates have been I would say in the high teens. And we probably feel we need a little bit more for that to become interesting given our outlook.

Okay, thanks and just on the order book and looking at the order book next year there's a bit more vessels coming in and there's quite a bit of trade or controlled tonnage, do you think that will affect the market differently than if those vessels are owned by just the traditional owner operators?

Well, I mean for sure there's trader controlled tonnage but the fleet is also much larger than it was in the past. So, of course sometimes we see that trader relets are diving in a little bit more aggressively than traditional owner operators. But it has to be an open and live market so we're not very nervous about that.

Okay, thanks, that's all for me.

Thank you Peder.

[Operator Instructions]. The next question comes from Anders from Danske Bank. Your line is now open. Please go ahead.

Hi, this is Anders. Quick question on CAPEX on the Amgen [ph] modification or on the retrofit second, can you elaborate a bit more on your pre delivery schedule for chartering ships and did it deliver one this quarter, is that correct?

Hi Anders, good to hear from you and thanks for calling in. I think we like to hold the cards a little bit towards our chest in terms of the CAPEX commitments but I think I have previously been out saying numbers in the range of $79 million for the complete retrofit of the engine and of course that involves everything from the engine upgrade it sells, from the gas supply systems to tanks, etc.

Okay, on the redelivery of the ships, are you planning to redeliver chartering ships?

Well I think we're not disclosing in detail when our ships trail off, but on page 19 you can see exactly what ships are -- when they come on and off up until 2021. So there you can see the details of entries and exits on the fleet.

Okay.

So the two ships that left the fleet was Denise and Havis during the quarter and then Berge Ningbo is coming here in the third quarter.

Alright, thank you.

Thank you. Your next question comes from Lukas from ABG, your line is now open. Please go ahead.

Thank you. Good afternoon Martin and Elaine. Martin you seem still a bit cautious on the near-term market outlook even though we have seen their rates popping up. Can you see -- can you talk about little bit what you see in the market right now and what do you think we are going to have a seasonally weaker Q4 which used to be the case until two years ago or how are things shaping up?

I think it is difficult to be much more specific than I just was in the call. But I mean we are -- I would say we are more positive than we have been and as I also said we think the worst is behind us and that's probably as close I will come in terms of guiding.

And looking into 2019 then, and the delivery schedule that we are facing there, you say the worst is behind us, that means you seem to be a bit more optimistic on that being absorbed without hitting the earnings the same way it did this year, is that how we should interpret it or…?

Yeah, I mean the order book is still out there and we are still -- we're coming through a quarter with depressed levels so it's difficult to be super optimistic. I mean we're definitely seeing the -- we're seeing supply demand balancing out when we look ahead at least to more normalized levels and that gives us some fair amount of optimism when looking ahead. But, we don't want to be too forward leaning on this year. There is still -- we certainly don't need any additional supply growth and we mentioned also a number of factors which creates some concern out there with of course the demand picture especially in Asia is very promising looking ahead.

Okay, and given the demolitions that we have seen so far this year, have you sort of have any -- do you have any updated thoughts on that, has the pool of potential demolition combinations may be increased a little bit going forward, what do you think?

I don't think we have changed our view very much on that. We hope that stable orders will be prudent and disciplined. And we definitely as I've also said I think the 2020 regulations are factors that people -- that will make ship owners think twice before conducting life extension surveys for older ships. So of course if you're faced with the ballast [ph] water treatment system upgrade and potentially increase fuel costs post 2020 maybe that's the time to say goodbye to your older ships.

Alright, thank you.

Thank you very much.

Thank you. Your next question -- sorry, we have to have one more question on the audio sir, it is from Lars [ph] who is from Arctic Securities. Please go ahead. Lars, your line is now open. Please go ahead. If you can hear me, your line is now open, please ask your question. As we're not hearing any response I believe we have a question on the web. Please go ahead sir.

Okay, there's a question from Maurice Lee [ph] and he's asking what is the cost of retrofitting LPG propulsion per vessel. I think Martin answered that earlier. He also asked what is the LPG consumption per day on a latent VLGC at normal speed?

Thanks for that question and your interest Maurice. I think we can give you some detailed assumptions for remodeling afterwards but as we said mentioning there is 11% more efficiency in an LPG burning engine than compared to a normal fuel. So I think that would be the number I would use in the model. And then you need to put in whatever you expect the price spread or the prices will be on LPG propane versus combined fuel. So I think that covers that question. Is there any more online.

There's no more questions on the webcast.

Okay, any more questions on the audio cast.

There are no more questions in queue sir.

Alright, well thank you everybody for dialing in and your attention to our quarterly release.