Welcome to BW LPG's First Quarter 2019 Financial Results Presentation. We will begin shortly. You will be brought through the presentation by BW LPG CEO, Martin Ackerman; 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 CEO, Martin Ackerman.

Thank you very much. Welcome to the presentation of BW LPG's results for the first quarter of 2019, the financial period ending 31st of March. I'm joined by our CFO, Elaine Ong, as always. And we appreciate your interest, and we will take the questions at the end of the call as we always do. On earnings. The Baltic Index for VLGC’s went down 13% in the first quarter of 2109 compared to the previous quarter, averaging at $29.8 per ton or $15,000 per day. The weaning of the Baltic VLGC freight rate in Q1 was mainly due to the narrowing geographical LPG price arbitrage between the US and the Far East. The underlying reason was that the U.S. seasonally consumes a higher portion of its LPGs jobs production for winter heating and gasoline blending in the winter season and hence puts upward pressure on US LPG prices. In January geographical arbitrage narrowed to US$65 per metric ton from an average of US$85 in December per metric ton ended February. The VLGC market further fell below OPECs levels at $8000 per day. Turning to slide 4, we review the highlights of the first quarter. In the first quarter we generated net revenue of $60 million based on daily rates of $15,100 for the VLGC segment, with VLGC contract coverage of 14% and total contract coverage of 14%. EBITDA came in at $21 million, a margin of 35%. Net loss for the quarter was $24 million. Earnings per share showed a loss of $0.17 per share and leverage ratio increased by 4.4% to 59.1% mainly due to the adoption of IFRS 16 which resulted in the capitalization of $167 million of our chartering expenses, as a lease liability on the balance sheet. Note that I stated in the Q4 2018 earnings…

Thanks, Martin. Starting with our income statement on slide 10. In the first quarter our revenue was flat, while voyage revenues went up to $58 million due to high bunker prices and high fleet utilization. Our net revenue and TCE income for the quarter was $60 million compared to $73 million in Q1 2018. This is mainly due to weaker VLGC freight earnings. Our EBITDA margin came in at 35% for the first quarter 2019. As Martin mentioned earlier, we adopted the new IFRS 16 on leases with effect from 1st January 2019. With this, our five charters in contracts with more than 12 months duration has been capitalized on our balance sheet, while our free charter in contracts which expire within the next 12 months will continue to be reported as charter high expenses. As such, our charter high expense for the quarter declined by $12 million to $4 million. The expenses related to the other five charter contracts with greater than 12 months expiry are now reported under other operating costs, depreciation and interest expenses. Other operating costs increased by $3 million, depreciation increase by $8 million and interest expense increased by $2 million. The net impact relating to the capitalization of these longer term charter contracts is $800,000 more in expenses compared to when these contracts were accounted for as charter high expenses. This is due to the front end loading effect from the amortization of lease liabilities. Taking all this into consideration, our net loss in the quarter was $24 million or a loss of $0.17 per share. Turning to slide 11. We provide a snapshot of our balance sheet and cash flow position. The adoption of IFRS 16 resulted in leases with greater than 12 month expiry being capitalized onto the balance sheet. The impact…

Thank you, Elaine. So if you please turn to slide 14. I will summarize our earnings presentation. We generated a loss per share on $0.17 in the quarter, on net revenues of $60 million and an EBITDA of $21 million or EBITDA margin of 35%. During the quarter, BW Helios was delivered for recycling generating $7 million in liquidity and a net gain of $2 million. And we established the Product Services Division to support the core shipping business. We would also like to highlight an important subsequent event, subject to the final documentation BW LPGs secure the new seven year senior secured $458 million facility to replace our $800 million facility maturing in the fourth quarter of 2020. The company plans to sign the new facility and draw down from the facility by the end of May 2019. The refinancing was secure on favorable terms that will lower the company's cost of debt and cash break even levels. The company's next debt maturity is a $150 million facility maturing in 2023. For 2019 in the short term we expect continued high US LPG exports to support freight rates. For 2019 we are optimistic that average VLGC rates will improve from the 2018 average of $17,300 per day to a level above our cash break even levels. This is supported by sustained US LPG exports growth and incremental volumes from key loading areas from Australia, Canada, US East Coast and the Gulf Coast. However, we also expect that increased demand for VLGCs from growing exports will in part be offset by a high level of newbuild deliveries and VLGC rates will also depend on the development of geographical LPG price albatross positioning of vessels and US terminal capacities and fees. With that, I'd like to open the call for questions.

[Operator Instructions] There are no questions from the telephone line. So we will now take questions from the webcast.

Yes, hello. Can you hear me? We have a question from Susan James who asked if – has Product Services traded any LPG cargoes since the launch in February?

Well, we can confirm that we have made our first transactions, but we do not comment specifically on transactions, neither Product Services or on our shipping business.

Okay. Then there is - we just got one more question on the webcast from Axel Styrman from Nordea. Why did import of LPG to China decline?

Hi, Axel. Thanks for your interest. I think that the main - the main answer to that is that the Chinese New Year's dampened the demand and I think the propylene margins were under pressure during this period, but otherwise if - I don't have any more info at hand right here on retail and chemical demand, apart from those two reasons. But I think that's probably exactly where we'll find the explanation. But we can take that offline again if you have - if we can, to go further into that question.

Okay. Then it looks like there is no further question on the webcast.

Okay. And no one on the line.

There are no questions registered on the lines at the moment.

Well, then we will –and we come to the end of the presentation. Thank you very much for your interest. As always in BW LPG and our presentations and if you missed your questions at this time do reach out to us through our Investor Relations center and we'll be happy to engage and otherwise we'll see you at the next quarter. Thank you very much.

We have come to the end of today's presentation. Thank you for attending. BW LPGs first quarter 2019 financial results presentation. More information on BW LPG is available online at www.bwlpg.com. Goodbye.