BW LPG Group reported a profit attributable to equity holders of $104 million for the fourth quarter that ended on December 31, 2025. This financial result was driven by a robust performance in shipping and positive returns from the product services segment, the company stated.
The board declared a cash dividend for the period of $0.57 per share, which represents the entirety of its shipping profit. It noted that the annualised dividend yield reached 12.5 per cent.
Time charter equivalent income for the shipping division concluded at $50,300 per available day, exceeding previous guidance of $47,000. Earnings were supported by time charter coverage for 44 per cent of available days at a rate of $48,100 per day, according to the company.
Regarding the ongoing conflict involving Iran, Israel, and the US, the company observed that there has been a minimal negative financial impact so far. It currently has three vessels from its Indian-flagged fleet in the region, with two on time charter and one in dry dock.
Initial market reactions to the conflict have involved securing more cargoes from the US, causing freight rates to spike. The company confirmed it has fixed approximately 94 per cent of available fleet days for the first quarter of 2026 at an average rate of $54,000 per day.
Liquidity at the end of the year stood at $613 million, while the net leverage ratio decreased to 28.4 per cent. For the full year of 2026, the company has secured 36 per cent of its fleet capacity on fixed-rate time charters at $43,700 per day.
Exports of liquefied petroleum gas on very large gas carriers from the US increased by nearly five per cent during 2025. Although exports to China recovered from a low point in May 2025, BW LPG noted they remained well below historical peaks due to trade tensions.
Imports into India and Southeast Asia grew by 10 per cent and 11 per cent respectively during the year. The company stated that LPG export fundamentals are, “expected to remain sound with support seen from additional export capacity, new gas projects, long-haul trade patterns and recurring constraints in the Panama Canal.”
High utilisation of the Panama Canal and strong demand for pre-booked slots led to elevated transit fees during the period. These dynamics encouraged many vessels to sail via the Cape of Good Hope instead of using the canal, the company stated.
The product services segment reported a gross profit of $27 million and a net profit of $23 million for the quarter. This result included a realised gain of $12 million from a portfolio of cargo and hedging transactions.
North American LPG exports are expected to grow in the mid-single digits in the coming years, according to BW LPG. It added that exports out of the Middle East are also expected to grow in the high single digits, driven by new projects in Saudi Arabia and Qatar.
