BW LPG Q2 Earnings Call Highlights

BW LPG reported $120 million in second-quarter profit , or $0.79 per share, and declared a $0.95 quarterly dividend—equal to 100% of shipping net profit after tax. Underlying VLGC shipping performance was strong despite accounting adjustments: spot TCE reached up to $87,600 per available day, while 92% of third-quarter fleet days were fixed at approximately $88,000 per day. Trade disruptions remain the key market driver, with Middle Eastern LPG exports down 46% and U.S. exports to India up 212% year over year; BW LPG also strengthened its balance sheet, ending the quarter with $773 million in liquidity and 23.5% net leverage.

BW LPG NYSE: BWLP reported second-quarter profit attributable to equity holders of $120 million, or $0.79 per share, as elevated VLGC freight markets supported its shipping operations amid disruptions to LPG trade flows. The company declared a quarterly dividend of $0.95 per share, representing 100% of shipping net profit after tax and above the minimum 75% payout outlined in its dividend policy. CEO Kristian Sørensen said the first half of 2026 was among the most volatile periods on record for the VLGC market. The closure of the Strait of Hormuz following the U.S.-Iran war disrupted Middle Eastern LPG exports and shifted more supply responsibility to the U.S. Gulf Coast. At the same time, Panama Canal congestion and water-related transit restrictions have encouraged vessels to take the longer route around the Cape of Good Hope, reducing effective vessel availability.

BW LPG reported shipping time-charter-equivalent income of $74,000 per available day during the second quarter, below its prior guidance of $81,000 per day. Sørensen said the difference was primarily attributable to negative IFRS 15 and freight-forward agreement adjustments totaling $28.4 million, or approximately $7,500 per available day. CFO Samantha Xu said the shipping business generated TCE income of $71,600 per calendar day and $74,000 per available day, while underlying spot performance was stronger. Spot TCE was $85,200 per available day including waiting time and FFA effects, and $87,600 per day excluding those items. Fleet utilization was 96% during the quarter. For the third quarter, the company said it had fixed about 92% of available fleet days at an average rate of approximately $88,000 per day. That figure includes indexed time-charter agreements, meaning the final rate may still vary with the spot market. BW LPG’s all-in cash breakeven was $24,900 per day, including capital-expenditure needs. The company said 41% of third-quarter fleet capacity was fixed under time-charter agreements at $44,300 per day. For the second half of 2026, BW LPG had secured 45% of its portfolio through fixed-rate time charters and FFA hedges at $44,100 and $48,000 per day, respectively. The remaining fixed-rate time-charter portfolio is expected to produce about $249 million of second-half revenue.

BW Product Services generated a realized trading gain of $127 million in the second quarter, but reported a loss after tax of $31 million. Xu said the loss primarily reflected non-cash mark-to-market movements, including a $190 million decrease in cargo-position valuations that was partly offset by a $45 million increase in paper-position valuations. The division ended the quarter with net asset value of $119 million. Xu said the reported net asset value did not include an internally valued $70 million unrealized physical shipping position. Average value at risk increased to $70 million, driven by higher market volatility and additional cargo ex...