BW LPG (NYSE:BWLP), the world’s leading owner and operator of Very Large Gas Carriers (VLGCs), provided an operational update today regarding the first-quarter performance of its trading arm, BW Product Services.
For the quarter ended March 31, 2026, the segment achieved a gross profit of approximately $127 million, a result heavily influenced by market volatility and shifting trade patterns.
The reported gross profit includes a positive unrealized mark-to-market change of $137 million, primarily stemming from open cargo contracts and hedging transactions.
This was slightly offset by a realized trading loss of $10 million from the portfolio’s cargo, freight, and hedging activities.
After accounting for general and administrative expenses and income taxes, BW Product Services delivered a net profit of approximately $98 million for the period.
CEO Kristian Sørensen noted that the quarter’s performance was significantly shaped by the ongoing conflict in the Middle East.
Reduced export volumes from that region have increased the value of the company’s U.S.-sourced cargoes.
While the high accounting profit reflects the current valuation of unrealized positions, Sørensen clarified that these gains will be realized gradually as physical deliveries occur in the coming quarters.
Meanwhile, risk management remained a priority during the volatile period, with the average Value-at-Risk (VAR) for the quarter maintained at approximately $6 million.