BW LPG Sees YoY Increase in Shipping Revenue

BW LPG Ltd on Tuesday reported $254.39 million in shipping revenue for the first quarter, up from $247.03 million for the same three-month period last year as time charter activity benefited from higher spot prices for liquefied petroleum gas.

The Singapore-based operator of LPG VLGCs (very large gas carriers), however, saw "product services" revenue fall to $584.5 million for Q1 2026 from $615.05 million for Q1 2025. The segment represents BW LPG's trading activities, which involve the sale of LPG cargoes including through the derivatives market.

Net profit rose to $164.3 million, or $1.08 per share, for January-March 2026 from $46.1 million for Q1 2025. Time charter equivalent (TCE) income increased to $197.7 million for Q1 2026 from $158.7 million for Q1 2025.

"The TCE income increase was primarily due to a higher LPG spot market of $63,700 per day, a 63 percent increase compared to Q1 2025 of $39,100 per day", BW LPG said. "This was partially offset by our scheduled drydocking program, which reduced available fleet days by 279 days for Q1 2026 (Q1 2025: 81 days)".

"The TCE income - shipping continues to be well supported by the increased time charter coverage of 53 percent (Q1 2025: 41 percent) of available days at $48,200 per day (Q1 2025: $40,700 per day)", it added. "Within it, our India subsidiary continued to deliver stable TCE income of $29.2 million for Q1 2026 (Q1 2025: $31.7 million), mainly from fixed-rate time charters".

Operating profit increased to $219.7 million for Q1 2026 from $79 million for Q1 2025. Profit after tax increased to $187.3 million from $66.6 million. Net cash from operating activities totaled $165.5 million for Q1 2026, compared to $166.2 million for Q1 2025.

"VLGC freight rates are expected to remain highly sensitive to geopolitical developments", BW LPG said. "Current earnings continue to be supported by trading inefficiencies and a shortage of available vessels on the US-Far East trade.

"A full reopening of the Strait of Hormuz would likely narrow the US-Far East arbitrage and could put downward pressure on US Gulf spot freight rates.

"Over the longer term, LPG exports from North America are expected to continue growing, supported by new export infrastructure and increasingly gas-rich oil production from the Permian Basin.

"Middle East LPG exports are likely to remain constrained for the duration of the conflict involving Iran, the US and Israel. While a reopening of the Strait of Hormuz would allow exports to recover from current levels, uncertainty remains regarding the timeline for repairing export infrastructure damaged during the war".

BW LPG ended Q1 2026 with $863.34 million in current assets including $273.08 million in cash and cash equivalents. Current liabilities totaled $587.12 million including $100.82 million in borrowings. Net leverage ratio stood at 26.3 percent.

To contact the author, email jov.onsat@rigzone.com