BW LPG (BWLPG) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw extreme VLGC market volatility due to geopolitical disruptions, notably the closure of the Strait of Hormuz, which shifted global LPG trade flows and vessel supply.

• Shipping TCE income was $74,030 per available day, with profit after minority interest of $120 million and EPS of $0.79.

• Product Services realized a trading gain of $127 million but reported a net loss after tax of $31 million due to a $145 million negative mark-to-market adjustment.

• Dividend of $0.95 per share declared, representing 100% of shipping NPAT, with payout ratio reaching 120% for the quarter.

• Agreements to sell three vessels expected to generate net book gains of $36M, $37M, and $17M, and net cash proceeds of $64M, $64M, and $38M, respectively.

Financial highlights

• Q2 2026 net profit after tax was $138 million; profit attributable to equity holders was $120 million (EPS $0.79), with annualized earnings yield of 18%.

• Net leverage ratio reduced to 23.5% as of June 30, 2026.

• Annualized return on equity and capital employed were 27% and 19%, respectively.

• Q2 OpEx was $8,800 per day; all-in cash break-even estimated at $24,900 per day.

• Liquidity at quarter-end was $773 million, including $303.9 million cash and $471 million undrawn credit.

Outlook and guidance

• Q3 2026 guidance: 92% of available days fixed at $88,000 per day; 41% of days at $44,300 per day.

• For H2 2026, 45% of portfolio secured via fixed rate time charters and FFA hedges at $44,100 and $48,000 per day.

• North American LPG exports forecasted to grow 18% in 2026; Middle East exports expected to recover over 12–36 months post-conflict.

• Spot VLGC earnings expected to remain highly sensitive to geopolitical events and trade disruptions.

• Additional U.S. and Canadian LPG export capacity expected in 2027–2028.