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Highlights

  • BW LPG completed the acquisition of 12 VLGCs from Advance Gas and the latter now holds 12.11% of BW LPG’s shares
  • The company’s Q3FY24 net revenues rose 12.8% YoY to USD 805 million, driven by product services.
  • Total comprehensive income increased 19.7% YoY to USD 118.8 million in Q3FY24
  • BW LPG declared a Q3FY24 cash dividend of USD 0.42 per share

BW LPG Limited (NYSE:BWLP) is a Singapore-based company. It owns and operates liquefied petroleum gas (LPG) vessels. The company’s fleet consists of very large gas carriers (VLGCs). These vessels have a total carrying capacity of over three million CBM.

On December 31, 2024, the company confirmed the completion of its acquisition of 12 Very Large Gas Carriers (VLGCs) from Advance Gas Holdings Ltd. The final vessel, BW Avior, was delivered on the same day. Following the acquisition, Avance Gas now owns 12.11% of BW LPG’s shares.

Financials

In the third quarter of financial year 2024 (Q3FY24), BWLP’s net revenues rose 12.8% YoY to USD 805.0 million, driven by higher product services revenue, despite a decline in the shipping segment. Total comprehensive income increased 19.7% YoY to USD 118.8 million in Q3FY24, due to higher revenue and reduced shipping expenses, partially offset by higher cargo costs. During the reported period, cash inflow from operating activities grew 46.2% YoY to USD 512.9 million, supported by increased net income and favorable changes in working capital. However, in Q3FY24, cash and cash equivalents decreased 2.6% YoY to USD 157.8 million, due to outflows from investing and financing activities, offset by operating cash inflows.

BW LPG declared a cash dividend of USD 0.42 per share for Q3FY24, resulting in a net dividend of USD 0.3276 per share after a 22% withholding tax.

Company Outlook

BW LPG maintains a positive market outlook for the remainder of 2024 and into 2025, despite expected rate fluctuations. US export growth is anticipated to speed up in the second half of 2025, driven by terminal expansions, while Middle East exports are projected to increase from 2026.

Top 10 shareholders

The top 10 shareholders of BW LPG collectively hold approximately 46.89% of the company’s total shares, indicating a concentrated ownership structure. The largest shareholder, BW Group Limited, holds the biggest stake at around 30.39%.

Price Performance

BWLP's share price has declined by 18.32% over the last three months and 22.62% over the past six months. As of January 10, 2024, the stock is approaching the lower end of its 52-week range, which spans from a high of USD 22.30 to a low of USD 9.95, with the closing price recorded at USD 12.21.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 10, 2025. The reference data in this report has been partly sourced from EODHD/Others.