OSLO (Reuters) - Oslo-listed gas carrier BW LPG (BWLPG.OL) has no plans to list its shares on a U.S. stock market, even though analysts believe the firm’s assets could potentially obtain a higher valuation, Chief Executive Officer Nicholas Gleeson said on Thursday.
BW LPG has a fleet of 31 owned and operated very large gas carriers (VLGCs), plus 7 newbuilds under construction and 5 large gas carriers (LGCs).
“It’s an interesting question but its not on our top priority,” Gleeson said while presenting the company’s earnings for the third quarter.
“From a liquidity perspective we get access to the us market, so we don’t see it as a strong imperative now but we will keep it in mind,” he added.
BW Offshore’s results missed forecasts, sending the shares down 12.1 percent to 60.45 Norwegian by 0855 EST.
The third quarter earnings before interest, tax, depreciation and amortization (EBITDA) of $109 million were far below analysts’ average expectation for $133 million in a Reuters poll.
Lower spot exposure in a red-hot VLGC market made the big difference.
BW LPG said its VLGC time charter income per day had been at $53,600 in the third quarter while earnings in the spot market averaged around $90,000 per day.
The company said contract coverage for the fourth quarter currently stood at 27 percent for the VLGCs, dropping to 24 percent in 2015 and 16 percent in 2016.
For the 5 LGC vessels, contract coverage is 80 percent in fourth quarter, falling to 37 percent in 2015 and 20 percent in 2016.
BW LPG expects a continued strong market in the fourth quarter and into 2015 driven by high LPG export from US before a high number of newbuilds will enter the market at the end of 2015 and probably give lower rates.
Reporting by Ole Petter Skonnord, editing by Terje Solsvik