BW LPG reported second quarter 2026 shipping revenue of $340.8 million, outperforming estimates, though earnings per share of $0.79 fell short of expectations due to significant unrealized mark-to-market losses in its trading division. Shipping operations were exceptionally strong, with spot TCE rates averaging $85,200 per day amid geopolitical volatility and Panama Canal restrictions. Despite trading volatility, the company declared a $0.95 dividend, equivalent to 100% of shipping-specific net profit.
Key Highlights
- Shipping revenue of $340.8 million beat the $328.3 million estimate, supported by spot performance that rose 139% year-over-year.
- Product Services recorded a $30.9 million loss after tax, as $127.4 million in realized trading gains were offset by $145.5 million in unrealized non-cash mark-to-market losses.
- Net profit attributable to equity holders was $120.1 million, down from the projected $1.25 EPS due to the negative impact of trading hedges and IFRS 15 adjustments.
- Agreed vessel sales (BW Elm, BW Birch, and BW Levant) are expected to generate total net book gains of approximately $90 million and $166 million in net cash proceeds.
- Net leverage ratio decreased to 23.5% from 28.4% at year-end, while liquidity remains high at $773 million.