BW LPG LimitedBWLP
▲ PositiveCapitalrelevance
Q2 results and dividend declared, with strong TCE income and trading gains despite adjustments.
Impact on stocks 1
Energy
BW LPG LimitedBW 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 LimitedQ2 results and dividend declared, with strong TCE income and trading gains despite adjustments.