BW LPG delivers strong Q2 2025 earnings, shipping performance exceeds guidance

BW LPG Limited announced a Q2 2025 net profit after tax of $43 million, with $35 million attributable to equity holders. This resulted in earnings per share of $0.23 and an annualised return on equity of 9%. The company's TCE income for shipping reached $38,800 per available day and $37,300 per calendar day, surpassing its guidance of $35,000. This strong performance was supported by 44% time charter coverage at $43,000 per day and a 94% fleet utilisation rate.

A cash dividend of $0.22 per share was declared, representing a 110% payout of quarterly shipping NPAT and a 5% annualised dividend yield. The company maintained ample liquidity of $708 million and a stable net leverage ratio of 30.7%. Product services contributed a gross profit of $15 million, leading to a $6 million profit after tax for the segment.

The market in H1 2025 was marked by geopolitical events and trade war impacts, initially pulling down spot rates before a rebalancing of LPG trades. Panama Canal disruptions led to rerouting via the Cape of Good Hope, increasing ton-mile demand. VLGC freight rates rebounded, and the outlook for North American and Middle Eastern LPG export growth remains positive, supported by new export terminals and gas projects.