BW LPG Limited is an investment holding company engaged in ship owning and chartering activities worldwide. It operates through the Shipping and Product Services segments, transporting liquefied petroleum gas (LPG) and providing integrated LPG delivery and management services, as well as LPG wholesale and trading and investments in commercial enterprises. As of December 31, 2025, it owned and operated a fleet of 54 vessels, including 28 very large gas carriers, 7 large gas carriers time chartered in by Product Services, and 8 VLGCs owned by BW LPG India Pte. Ltd. Formerly known as BW Gas LPG Holding Limited, it changed its name to BW LPG Limited in September 2013; the company was founded in 1935 and is headquartered in Singapore.
BW LPG Posts Strong Q2 as Hormuz Closure Boosts Rates
BW LPG reported second-quarter profit of $120 million, or $0.79 per share, as the closure of the Strait of Hormuz reshaped global LPG trade. The company guided to its best quarter yet, locking in $88,000 per available day for 92% of third-quarter fleet days, over three times its $24,900 daily breakeven. Middle East LPG exports fell 46% in the first half of 2026, while US exports rose 16%, with shipments to India jumping 212%. Shipping income missed its $81,000 target, coming in at $74,000 per day, due to $16.4 million in IFRS 15 adjustments and $12 million in Forward Freight Agreement losses. The trading arm posted a $31 million net loss after a $145 million swing in unrealized position values. Net leverage fell to 23.5%, liquidity stood at $773 million, and the board declared a $0.95 per share dividend. CEO Kristian Sorensen warned that a reopened Strait could pressure spot rates, with any recovery in Middle East exports taking 12 to 36 months. The global VLGC orderbook has grown to 155 vessels, about 35% of the current fleet.
Shipping stocks hit decade-plus highs as Hormuz turmoil tightens capacity
A basket of 35 U.S.- and European-listed shipping stocks tracked by Lloyd's List Intelligence has climbed about 68% this year, more than five times the S&P 500's gain, and 82% over the past 12 months. Crude-tanker stocks have led the rally, up 120% year-to-date, followed by car carriers, gas carriers and dry-bulk shippers. Andreas Povlsen, managing director at Hayfin Capital Management, said shipping provides a hedge to geopolitical instability, noting that freight markets have benefited from volatility, including the Covid-19 pandemic, Houthi attacks in the Red Sea, and Russia's invasion of Ukraine. Danaos shares are trading at their highest level since 2008 after a 60% surge this year, while Frontline and Teekay Tankers haven't been this expensive since 2011, BW LPG is at a record, and International Seaways hit an all-time high last week. The Breakwave Tanker Shipping ETF, which trades near-dated crude-tanker forward freight contracts, has surged 650% since the Middle East war began in February and more than 2,300% this year. Nicolas Tirogalas, CEO of Tufton Investment Management, added that shipping now has to go further, and tonne-miles have increased, boosting demand for oil and chemical tankers, dry-cargo bulkers and gas carriers.
BW LPG Places USD 300 Million Convertible Bond Offering
BW LPG Limited, the world's leading owner and operator of LPG vessels, has successfully placed an offering of USD 300 million senior unsecured convertible bonds due 2031, convertible into new shares of the Company. The net proceeds will partly finance the newbuild program with Hyundai Heavy Industries for eight Panamax VLGCs, and for general corporate purposes. The bonds carry a fixed coupon of 2.25% per annum, payable semi-annually, with an initial conversion price of USD 30.4870 per share, representing a 40% premium over the reference share price. Concurrently, a placement of existing shares was conducted to hedge market risk for certain bond subscribers, from which the Company received no proceeds. Settlement is expected on or around 9 September 2026.
BW LPG Limited reported Q2 2026 earnings, highlighting a strategic shift in global LPG trade flows due to the Strait of Hormuz closure, with a 46% decline in Middle Eastern volumes offset by U.S. Gulf exports. Shipping TCE income was $74,000 per available day, impacted by $16.4 million in IFRS 15 adjustments and $12 million in FFA adjustments, while Product Services realized a trading gain of $127 million, masked by a $145 million unrealized mark-to-market loss. The company maintained 96% fleet utilization despite heavy dry-docking, and sold older vessels like BW Elm and BW Birch, with the latter expected to generate net proceeds of approximately $64 million. Q3 guidance is set at approximately $88,000 per day for 92% of available days, with a cash breakeven of $24,900 per day, and the Board declared a $0.95 per share dividend, representing 100% of shipping NPAT. Management expects a full recovery of Middle Eastern exports to take 12 to 36 months, and plans to increase time charter coverage for 2027 beyond the current 36% if attractive rates are available.
BW LPG sells 2015-built BW Levant for $38 million net cash proceeds
BW LPG Limited has announced the sale of the 2015-built vessel BW Levant, which it acquired in the 2024 Avance Gas transaction. The sale is expected to generate a net book gain of approximately US$17 million and net cash proceeds of around US$38 million. The vessel is scheduled for delivery to the buyer at the latest by mid-November, allowing BW LPG to continue earning revenue from the asset in a strong freight market. CEO Kristian Sørensen said the sale demonstrates disciplined capital allocation, realizing a strong return just two years after the purchase.
Trump proposes 20% fee on Hormuz transit, drawing IMO rebuke
President Trump declared the U.S. would act as the 'Guardian of the Hormuz Strait' and charge a 20% fee on all transiting cargo to cover security costs, prompting the International Maritime Organization to state there is no legal basis for mandatory tolls to transit a strait. The announcement follows escalating clashes in which Iran has targeted commercial vessels and vowed to impose its own fees for passage, while the U.S. has conducted airstrikes against Iranian installations. The IMO, the U.N. body overseeing global shipping safety, clarified that freedom of navigation is guaranteed under customary international law, which the U.S. has historically recognized. The proposed fee marks a shift toward transactional foreign policy, raising concerns that allies may seek alternative security arrangements and that other powers could assert similar claims in contested waterways.
BW LPG unit sells BW Elm for $64 million net cash proceeds
BW LPG's 52%-owned subsidiary BW LPG India has agreed to sell the 2007-built vessel BW Elm. On a 100% basis, the transaction is expected to generate a net book gain of about $36 million and net cash proceeds of around $64 million. CEO Kristian Sørensen said the sale allows the company to capitalize on strong second-hand values for older vessels, noting the 2007-built asset was sold at a level equivalent to a newbuilding price of about $248 million.
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