2H 2 0 1 9 BL Editorial Publisher For further information, BW Group please contact: Responsible Editor BW Group Nick Fell 10 Pasir Panjang Road #18-01 Mapletree Business City Managing Editor Singapore 117438 Lisa Lim + 65 6434 5871 [email protected] Editorial Team Christina Chu Julia Moreau Nadia van Dam Una Holmen Zachary Mahon Contributions From Abuhasan Sahibjan Alexis Wong Anders Bohm Bradley Pereira Charles Maltby Francis P. Marañon Geoff Pearson Ivy Yap Kamilla Moestue Røsted Michael Rasmussen Michael Smyth Mikael Smyth Miriam Basco Perry van Echtelt Seah Zhi Hui Thomas Andersen Uta Urbaniak Design & Production Simple Reels Genesis Pte Ltd Contents 2H/2019 02 CHAIRMAN’S MESSAGE 13 IN THE SPOTLIGHT 26 COOKING FOR LIFE World Horizon speaks with BW LPG supports the World Charles Maltby, CEO of Epic Gas LPG Association’s push to improve the lives of billions of people though use of cleaner-burning fuels such 15 as LPG for cooking 04 28 04 RINGING THE BELL Hafnia successfully lists as one of the largest shipping companies 15 NAVIGATING THE AMAZON RIVER on the Oslo Stock Exchange World Horizon explores the unique challenges of delivering energy via one of the world’s most 07 ALL OARS IN THE WATER famous rivers ENERGY DELIVERED World Horizon speaks with 28 Michael Rasmussen, BW thanks the British Navy and General Manager of Hafnia Pools, international coalition forces on fleet reorganization efforts 20 for supporting the global at Hafnia transportation of energy during troubled times 30 EVALUATING A CARBON LEVY 09 Could a carbon levy in shipping be an effective way to help reach the IMO greenhouse gas reduction 20 RUNNING THE goals? - A White Paper produced SUSTAINABILITY MARATHON by BHP, BW, DNB and DNV GL for BW takes steps across Affiliates the 2019 Global Maritime Forum to reduce our impact on the environment 38 AROUND THE WORLD 09 DIGITAL LIGHTHOUSE Taking small, cumulative steps 43 SPECIAL THANKS TO ... to harness technology and bridge the onshore/offshore divide 2 World Horizon Issue 2H/2019 World Horizon Issue 2H/2019 3 Chairman’s eflecting back on 2019, one cannot Amidst all the justified concern on the one extreme may be risking the welfare but think of the wave of protests topic, we must also acknowledge the either of their peers or of their children. sweeping Hong Kong, Chile and realities. In November 2019, the US began Rnumerous other countries, and what the formal process of withdrawing from Finally, we advocate a carbon levy that portends. But the largest momentum the Paris Agreement. COP25 in Madrid for shipping that puts a price on the Message shift may have been on the topic of in December 2019 failed to achieve any environmental cost of fossil fuels. There is climate change – what a sea change meaningful progress. While parts of the same tension in this – that increases in we have seen in the space of a year. the world (especially Northern Europe) the price of energy may result in a burden worry about the environmental effects of on some who can ill-afford the additional Environmental awareness is of course greenhouse gases, many people around cost – but the burden can be spread over not new. The Rio Earth Summit in 1992 the world have more basic needs to worry time to achieve the right balance between established the UN Framework Convention about such as food, shelter and security. current and future needs. As the UN on Climate Change (UNFCCC), the Kyoto Energy is a critical enabler to lift people Secretary General framed it: “To put a price Protocol was signed in 1997, and the Paris out of poverty. Construction contributed on carbon is vital if we are to have any Agreement was signed in 2015, not to some 11% of global carbon emissions chance of limiting global temperature rise mention numerous other COP (Conference (shipping is estimated at 2%); according and avoiding runaway climate change.” of Parties) meetings along the way. to the International Energy Agency, almost 8 billion tons of CO2 in 2017 As we approach a new decade, we should What has changed is the intensity of came from buildings, steel and cement remain hopeful that diverse opinions discourse and the level of urgency. From compared to 2.6 billion tons from oil and combined with human ingenuity will lead the protests of Extinction Rebellion to gas. We have to balance the needs of us to solve the defining issues of our time. the advocacy of Greta Thunberg, public human beings today - affordable shelter, I am grateful to our seafarers, shore staff, consciousness is rising. In the words of food, heating, mobility - with concerns directors and team members around the UN Secretary General António Guterres: about our environment tomorrow. world for enabling BW to play its part in “Climate change is the defining issue of our this. I wish all of you, and our customers time”. As the UN Intergovernmental Panel In the pages of this magazine you will and stakeholders, a successful year ahead. on Climate Change (IPCC) put it: “There is find stories about the transport of carbon- alarming evidence that important tipping based energy alongside stories about points, leading to irreversible changes cleaner fuels, batteries, and technologies in major ecosystems and the planetary to help alleviate our footprint. This reflects climate system, may already have been our dual mission “to provide energy reached or passed.” European Commission for the world today, and find solutions President von der Leyen recently presented for tomorrow”. Urgency to create a Sincerely, her plan to make the EU the world’s first better world must be matched with Andreas Sohmen-Pao “climate-neutral” continent by 2050. pragmatism; those who argue for only Chairman 4 World Horizon Issue 2H/2019 World Horizon Issue 2H/2019 5 Ringing the Bell Hafnia successfully lists as one of the largest shipping companies on the Oslo Stock Exchange ears of strengthening the business and preparing for the Merger and Reorganization capital markets culminated in the successful listing of Hafnia In November 2015, BW Group’s product tanker arm, then (Above) Mikael Skov rings the bell at the Oslo Stock Exchange on 8 November. This is the beginning of an exciting new named BW Pacific and managed by CEO Tina Revsbech, decided Ychapter in the company’s history, and provides a new platform against a listing on the Oslo Stock Exchange due to challenging navigating the fleet and business efficiently through a difficult Private Placement before Listing for growth following the recent merger of Hafnia and BW Tankers. market conditions. Instead, the team dedicated its focus to market cycle. Two and a half years later in July 2018, BW Group The Oslo Stock Exchange offers an efficient route to the public was presented with an opportunity to purchase shares in markets, and it has a long-standing history of shipping-related Hafnia Tankers, a company with similar values and ambitions. IPOs and listings which international investors are familiar with. BW Group purchased 43.5% of Hafnia from Blackstone. Both BW Group had previously used the exchange to list a number of companies operated side-by-side for about six months until its companies, so it viewed this as a natural step for developing they were successfully merged in January 2019 to form Hafnia, Hafnia into a leading product tanker company and to provide with Mikael Skov taking the reins as CEO of the unified entity. liquidity for some of its longstanding private equity shareholders. (Above) All smiles after Hafnia’s listing on the Oslo Stock Exchange. From L-R: Thomas Andersen (EVP, Investor Relations); Erik Bartnes (Board Member); (Above) Singapore and Copenhagen offices celebrating with their own simultaneous bell ringing ceremonies using an old ship’s bell Mikael Skov (CEO); Perry van Echtelt (CFO) 6 World Horizon Issue 2H/2019 World Horizon Issue 2H/2019 7 On 5 November 2019, Hafnia announced the successful completion Norwegian capital markets since 2013. We have communicated of a pre-listing private placement of USD 230 million which was our compelling story to investors and we are well positioned deemed to be a favourable fast-track path to a direct listing. The to capture the upside of the market going into 2020. We look transaction garnered significant interest from high-quality investors forward to this journey and are eager to start working as a worldwide. On 8 November 2019, Hafnia was listed on Oslo Axess listed company that creates value for our shareholders.” with a share price of NOK 25.45. Pareto Securities and Skandinaviska Enskilda Banken (Oslo Branch) acted as joint global coordinators in Leading the Competition All oars in both the pre-listing private placement and the Oslo Axess listing. Hafnia is one of the world’s leading oil product tanker owners and operators, operating a fleet of over 180 vessels in pools CEO Mikael Skov says, “this all started with a vision of creating including newbuilds. With an average age of approximately a great workplace that puts people first as we build the best 6.4 years, most are of modern eco-design which incorporates product tanker company in the world together. It has been the latest technological improvements designed to optimize the water quite the adventure, especially in the past eleven months since speed, fuel consumption and reduce emissions. A young the successful completion of the merger of Hafnia Tankers and and well-maintained fleet reduces operating costs, improves BW Tankers, and I thank all our colleagues for working hard on safety, vessel utilization and quality of service delivered World Horizon speaks with Michael Rasmussen, General Manager of Hafnia Pools, the listing process, while ensuring our ships continued to sail to customers.