BW LPG Ltd, the liquefied petroleum gas shipper, has reported a second quarter net profit after tax of $85 million, yielding an annualised return on equity of 21 per cent with $53 million free cash flow generated.

The company’s Q2 operating profit was $89 million, and earnings per share was $0.58.

The board has declared a cash dividend of $0.58 per share, or a total dividend of $76.4 million. This represents a 100 per cent earnings payout ratio and an annualised dividend yield of 15 per cent.

The company, which had been registered in Bermuda since 2008, completed its re-domiciliation to Singapore on July 1, the first day of the third quarter.

Subsequent to quarter-end, BW LPG announced the transaction to acquire 12 very large gas carriers from Bermudian-based Avance Gas for a total consideration of $1.05 billion.

This acquisition increases the number of VLGCs owned and operated by BW LPG from 41 to 53, of which 22 are LPG dual-fuel.

The company said: “This transaction further solidifies BW LPG’s position as the world’s leading owner and operator of VLGCs, with the largest number of LPG dual-fuel powered VLGCs. This fleet expansion comes at an opportune time with VLGC newbuild deliveries abating and continued growth in global LPG export volumes.

“The strategic transaction will enhance BW LPG’s commercial scale and increase its operational leverage in a market expected to remain strong in the coming years, and as such solidify earnings and dividend potential.”

BW LPG is associated with BW Group, a global maritime company involved in shipping, floating infrastructure, deep water oil & gas production, and new sustainable technologies.

Founded in 1955 by Sir YK Pao, BW controls a fleet of over 450 vessels transporting oil, gas and dry commodities, with its 200 liquefied natural gas and LPG ships constituting the largest gas fleet in the world.

In the renewables space, the group has investments in solar, wind, batteries, biofuels and water treatment.