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Highlights

  • Net profit reached USD 67 million with 96% fleet utilisation and strong TCE income.
  • The company agreed to Sold two VLGCs for USD 75 million each and repurchased over 316,000 shares.
  • BW LPG has exited India terminal project to prioritize core shipping and trading operations.

BW LPG (NYSE: BWLP, OSE: BWLPG.OL) is a leading LPG shipping company, operating over 50 VLGCs with 4 million CBM capacity and integrated services across the LPG value chain.

BW LPG has agreed to sell two vessels, BW Chinook and BW Pampero, to BW India for approximately USD75 million each, with delivery expected in Q3 2025. Between April 8 and 17, 2025, the company repurchased 316,437 shares at an average price of USD 8.63 under its buyback program, signaling confidence in its long-term outlook. For the 2025 calendar year, 28% of vessel operating days are secured through fixed-rate time charter contracts at USD 45,000 per day, with an additional 2% hedged via Forward Freight Agreements at USD 50,600 per day.

The company reported Q1 2025 net profit after tax of USD 67mn, with earnings per share of USD 0.30 and an annualised return on equity of 14%. Liquidity stood at USD 633 mn, while net leverage declined to 31.2%. The Board declared a USD 0.28 per share dividend, reflecting a 75% payout from shipping NPAT and a 10% annualised yield.

In Q1 2025, BW LPG achieved 96% fleet utilisation with average VLGC freight rates of USD 39,800 per available day. TCE income was USD 158.7 million, including USD 31.7 million from its India unit. For 2025, 28% of fleet days are fixed at USD 45,000/day, with 2% hedged at USD 50,600/day.

In Q1 2025, BW LPG’s Product Services segment reported US$33 million in realised gains from delivered cargo, offset by a USD 36 million mark-to-market loss on open positions, resulting in a US$4 million gross trading loss and a net loss after tax of USD 12.5 million.

In early 2025, BW LPG secured US$65 million through JOLCO financing and is finalizing a USD380 million bank facility. It also agreed to sell two VLGCs to BW India for USD 75 million each, with delivery expected in Q3 2025. The company repurchased over 316,000 shares in April, signaling long-term confidence. Additionally, BW LPG has decided to exit its planned LPG terminal project at JNPA, India, to focus on core shipping and trading operations amid global market uncertainties.

In Q1 2025, VLGC spot rates followed typical seasonal trends, averaging USD 32,000/day on the US–Far East route. Weather disruptions in the US had limited effect, but a US-China trade war and subsequent tariff rollback caused volatility in shipping economics. Despite this, VLGC earnings remained stable as the market adjusted to shifting trade dynamics.

In Q1 2025, US LPG exports via VLGCs rose nearly 10% year-over-year, despite some disruption from fog and cold weather. In contrast, Middle East exports grew by 2.8% due to ongoing OPEC production cuts.

The new Panama Canal locks are operating near full capacity, with adequate water supply. However, if transit competition increases or LPG trade routes shift due to tariffs, more VLGCs may reroute via the Cape of Good Hope. The global VLGC fleet comprises 406 vessels, with 109 more on order. Four new ships have been delivered so far in 2025, with 10 additional deliveries expected by year-end. New VLGC orders are unlikely to be fulfilled before late 2027 or early 2028, and 9% of the current fleet is 25 years or older.