BW LPG reported a net profit after tax of $187 million for the first quarter of 2026, representing an annualised return on equity of 38 per cent.
The profit attributable to equity holders ended at $164 million, yielding earnings per share of $1.08, driven by robust shipping performance and a positive unrealised mark-to-market valuation gain of $137 million in its product services trading portfolio.
Time charter equivalent income for shipping averaged $55,500 per available day and $51,300 per calendar day with a fleet utilisation rate of 92 per cent.
For the second quarter of 2026, the company secured approximately 85 per cent of its available fleet days at an average rate of around $81,000 per day. For the full year, the company has secured 39 per cent of its fleet capacity on fixed-rate time charters at $44,800 per day, and an additional three per cent through FFA hedges at an average rate of $48,100 per day.
To expand its fleet, the firm signed a contract for eight 90,000 cubic metre Panamax very large gas carriers (VLGC) for a total price of approximately $940 million, with deliveries scheduled between the start of 2029 and the second quarter of 2030.
Meanwhile, BW Brage and BW Gemini were secured for three- and five-year charter agreements in the low $40,000s per day, while BW Pampero was fixed for a one-year charter at a rate in the high $60,000s per day with delivery scheduled in August.
Middle East geopolitical disruptions heavily impacted the shipping market during the first quarter of 2026. Consequently, Middle Eastern VLGC exports fell by 22 per cent during the first three months of the year compared to the same period in 2025, which restricted regional cargo flows and drove buyers to seek US alternatives.
US exports of liquefied petroleum gas (LPG) carried on VLGCs increased by 5.9 per cent during the quarter compared to the previous year, with shipments accelerating further in April.
While exports to China reached their highest level since May 2025, volumes remained below historical averages due to ongoing trade tensions between China and the US.
Tight vessel availability in the US gulf and increased congestion in the Panama Canal pushed spot freight rates higher as more vessels sailed via the Cape of Good Hope. The canal experienced severe traffic, resulting in transit auction fees rising to $4 million for a single transit at one point during the congestion.
The company expects VLGC freight rates to remain highly sensitive to geopolitical developments, with current earnings supported by trading inefficiencies.
It also noted that the full reopening of the Strait of Hormuz is expected to narrow the US–Far East arbitrage and potentially pressure US Gulf spot rates.
