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Financial performance
- Q1 2026 profit attributable to equity holders of the Company ended at US$164
million, representing an earnings per share of US$1.08, contributed by
strong shipping performance and a significant positive unrealised MtM
valuation gain in the BW Product Services trading portfolio.
Commercial performance
- TCE income - Shipping Q1 2026 concluded at US$55,500 per available day and
US$51,300 per calendar day, above our guidance of US$54,000 per day. The
earnings also reflect the Companyâs time charter coverage of 53% of
available days at US$48,200 per day.
Q2 2026 TCE guidance
- Fixed 85% of available fleet days at an average rate of ~US$81,000 per day.
Cash dividend declared
- The Company declared a Q1 2026 cash dividend of US$0.67 per share, which
consists of 100% of Shipping NPAT Q1 2026, in addition to US$0.11 per share
from BW Product Servicesâ capital return from 2025.
Subsequent events
- Signed newbuilding contract for eight 90âcbm Panamax VLGCs with expected
deliveries from start of 2029 to Q2 2030 with a total price of approximately
US$940 million.
- BW Brage and BW Gemini fixed for three- and five-year time charter out
agreements in the low US$40,000s per day.
- BW Pampero fixed for one-year time charter out at high US$60,000 per day
with delivery in August.
Financial Performance
BW LPG Limited (âBW LPGâ, the âCompanyâ, NYSE ticker code: âBWLPâ, OSE ticker
code: âBWLPG.OLâ) reported a Q1 2026 Net Profit After Tax (NPAT) of US$187
million, yielding an annualised return on equity of 38%. The Q1 profit
attributable to the equity holders of the Company was US$164 million, and
earnings per share were US$1.08.
The Company reported ample liquidity of US$618 million. The end-of-quarter net
leverage ratio was 26.3%, compared to 28.4% as of 31 December 2025.
The Board declared a cash dividend of US$0.67 per share, which consists of
100% of Shipping NPAT Q1 2026, in addition to US$0.11 per share from BW
Product Servicesâ capital return from 2025, above the dividend policy.
Commercial Performance Shipping
The Q1 2026 shipping performance resulted in US$55,500 per available day and
US$51,300 per calendar day, with 92% fleet utilisation. Time Charter
Equivalent (TCE) income was US$197.7 million for the quarter, with the BW LPG
India subsidiary contributing a TCE income of US$29 million for the quarter.
For Q2 2026, the Company has fixed ~85% of available days at an average rate
of ~US$81,000 per day.
For FY 2026, the Company has secured 39% of the fleet capacity on fixed-rate
time charters at US$44,800 per day, and an additional 3% through FFA hedges at
an average rate of US$48,100 per day.
Product Services
Product Services presents a strong quarter, reporting a gross profit of US$127
million and a net profit after tax of US$98 million for this quarter. This
gross profit comprises of a positive unrealised mark-to-market change of
US$137 million from our open cargo contracts and hedging transactions, offset
by a realised trading loss of US$10 million from our portfolio of cargo,
freight and hedging transactions.
Market Update
During Q1 2026, the VLGC market experienced one of its most disruptive events
on record. Towards the end of February, the outbreak of war in the Middle East
led to the blockade of the Strait of Hormuz, disrupting significant LPG export
volumes from the region.
Initially, spot freight rates declined as market participants anticipated an
oversupply of vessels. However, the market quickly tightened as LPG buyers
turned to the US to replace lost Middle Eastern volumes.
At the same time, fewer VLGCs than expected repositioned from the Middle East
to the US, likely reflecting expectations of a short-lived disruption and
operational constraints related to US trading requirements.
As a result, vessel availability in the US Gulf tightened rapidly, driving
spot freight rates sharply higher.
The market was further supported by increased congestion and higher transit
fees in the Panama Canal, which caused more VLGCs to sail via the Cape of Good
Hope to Asia, effectively reducing vessel supply.
Cargo Movements
LPG exports from the US carried on VLGCs increased by 5.9% in Q1 2026 compared
to Q1 2025. Following the end of the quarter, export growth accelerated as the
blockade of the Strait of Hormuz increased demand for US LPG, supported by
additional capacity from new export terminals.
In April 2026, US LPG exports to China reached their highest level since May
2025, although volumes remained below the levels seen prior to the escalation
of trade tensions between China and the US.
During the first three months of 2026, LPG exports on VLGCs out of the Middle
East fell by 22% compared to the same period in 2025, as the outbreak of war
resulted in a blockade of the Strait of Hormuz and a severely restricted flow
of LPG volumes.
Far East LPG imports on VLGCs declined by 8% in Q1 2026 compared to the same
period in 2025. The decrease was driven primarily by lower Chinese imports,
which fell by 13% as the country continued to draw on LPG inventories.
Imports shipped on VLGCs into Southeast Asia increased by 7% during the
quarter, while India also recorded modest import growth despite the outbreak
of war in the Middle East. Both regions are, however, expected to see weaker
import volumes during Q2 2026.
Panama Canal
Even before the outbreak of war in the Middle East, the new locks of the
Panama Canal were operating at near full capacity. In the wake of the closing
of the Strait of Hormuz, demand for using the canal increased further. This
was especially visible as LPG and oil tankers drove a sharp increase in
transit auction fees, which at one point reached USD 4m for a single transit.
As a result, more VLGCs opted to sail via the Cape of Good Hope rather than
transit the canal, reducing vessel supply in the market.
In the coming years, demand for using the Panama Canal will likely continue to
grow as LNG, ethane and LPG newbuildings are delivered.
China PDH plants
In China, average operating rates at PDH plants declined sharply following the
blockade of the Strait of Hormuz. Run rates now appear to have stabilized,
albeit at below-normal levels.
At the same time, Chinese LPG inventories have fallen to the lowest level in
more than three years, suggesting the potential for pent-up demand if the
Middle East conflict is resolved.
Looking ahead, two additional PDH plants are scheduled to start up in 2026,
followed by a further six, four and two in 2027, 2028 and 2029 respectively.
Fleet Capacity
The VLGC fleet currently stands at 429 ships, with an orderbook of 130
vessels. Year to date, 18 new VLGCs have been delivered, with 20 more
scheduled for the remainder of 2026. For new orders, well-established
shipyards are indicating delivery slots no earlier than the second half of
2029 for VLGCs. More than 9% of the existing fleet are 25 years or older.
Market Outlook
VLGC freight rates are expected to remain highly sensitive to geopolitical
developments. Current earnings continue to be supported by trading
inefficiencies and a shortage of available vessels on the USâFar East trade.
A full reopening of the Strait of Hormuz would likely narrow the USâFar 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.
Q1 2026 Earnings Presentation and Interim Financial Report
Please see the attachments for the Q1 2026 Earnings Presentation and Interim
Financial Report, or download the documents here:
Financial Reports & Presentations â BW LPG
BW LPG will present its financial results at 08:00hrs EDT/ 14:00hrs CEST/
20:00hrs SGT today. The presentation will be hosted by Kristian Sørensen (CEO)
and Samantha Xu (CFO).
The presentation will be held live via Zoom. Please register at the link
below: https://bit.ly/BWLPGQ12026
Registered participants will receive a confirmation email containing access
details for the Zoom meeting. A recording of the presentation will be made
available on the Companyâs website following the event at
Financial Reports & Presentations â BW LPG
For further information, please contact:
Kristian Sørensen, CEO
Samantha Xu, CFO
E-mail: investor.relations@bwlpg.com
About BW LPG
BW LPG is the worldâs leading owner and operator of LPG vessels, with a fleet
of about 50 Very Large Gas Carriers (VLGCs), including over 20 vessels powered
by LPG dual-fuel propulsion technology. Building on over five decades of LPG
shipping experience, the company is strengthened by an in-house LPG trading
division and the commercial expertise to explore investments in value chain
assets. Together, these capabilities enable BW LPG to provide trusted and
reliable services for sourcing and delivering LPG to customers worldwide.
Delivering energy for a better world â more information about BW LPG can be
found at www.bwlpg.com
BW LPG is associated with BW Group, a leading global energy and maritime
company involved in shipping, deepwater oil & gas production, renewable energy
and digital infrastructure. BW controls a fleet of over 400 vessels
transporting oil, gas and dry commodities. In the infrastructure space, the
group operates in wind, batteries, water, subsea cable networks and data
centres. bw-group.com
This information is subject to disclosure requirements pursuant to Section
5-12 of the Norwegian Securities Trading Act.
Kilde
