Key Points – BW LPG posted strong Q1 results, with time charter equivalent income of $55,500 per day and profit after minority interests of $164 million, helped by historically high VLGC freight rates driven by Middle East disruptions and longer LPG trade routes. – The board…
clared a $0.67 per share dividend, and the company ended the quarter with lower leverage, healthy liquidity of $680 million, and a strong outlook for Q2 with guidance of about $81,000 per day. – BW LPG announced a major fleet renewal plan, ordering eight Panamax newbuildings at about $117.5 million each, with deliveries starting in 2029; management said the move will reduce the fleet’s average age and “future-proof” its composition. BW LPG (NYSE:BWLP) reported sharply higher first-quarter earnings and announced a major fleet renewal program, as management said geopolitical disruptions in the Middle East and shifting LPG trade flows have pushed very large gas carrier freight rates to historically elevated levels
Chief Executive Officer Kristian Sørensen said the first quarter was marked by “significant geopolitical volatility,” with the Middle East conflict and the continued closure of the Strait of Hormuz creating inefficiencies that drove more LPG cargoes toward the U.S. Gulf and supported higher shipping demand. The company reported time charter equivalent income of $55,500 per available day, above its guidance of $54,000 per day, and $51,300 per calendar day.
Profit after minority interests was $164 million, or $1.08 per share. BW Product Services, the company’s trading arm, reported gross profit of $127 million and profit after tax of $98 million, driven largely by unrealized mark-to-market gains on its portfolio. For the second quarter, BW LPG guided for approximately $81,000 per day, with 85% of available days fixed.