BW LPG posts $164M Q1 profit, signals massive Q2 rate surge

BW LPG (NYSE:BWLP) reported a net profit of $164 million for the first quarter of 2026, driven by robust shipping operations and substantial trading gains.

The performance paved the way for a strong dividend payout and a highly optimistic outlook for the second quarter, where the company has locked in significantly higher freight rates across its fleet.

The first-quarter profit translated to earnings per share of $1.08.

Results were bolstered by strong utilization within the core shipping segment alongside unrealized mark-to-market valuation gains within the BW Product Services trading portfolio.

In response to the strong quarter, the company’s board declared a cash dividend of $0.67 per share.

This distribution represents the entirety of the shipping division's net profit after tax for the quarter, supplemented by an additional $0.11 per share stemming from capital returns from the product services unit in 2025.

On the operational side, BW LPG outperformed its own projections.

First-quarter time charter equivalent (TCE) income for shipping reached $55,500 per available day and $51,300 per calendar day, surpassing prior company guidance of $54,000 per day.

The company maintained steady coverage during the quarter, protecting 53 percent of its available days via time charters at an average rate of $48,200 per day.

Looking ahead to the second quarter of 2026, the company expects a significant step up in revenue, having already secured 85 percent of its available fleet days at an average rate of approximately $81,000 per day.

Capitalizing on market momentum, BW LPG also announced a major long-term fleet expansion and several subsequent charter agreements. The company signed a contract valued at approximately $940 million for the construction of eight newbuilding 90,000 cbm Panamax Very Large Gas Carriers (VLGCs), with deliveries scheduled to begin in early 2029 and run through the second quarter of 2030. In the immediate charter market, the company fixed the BW Brage and BW Gemini for three- and five-year terms, respectively, at daily rates in the low $40,000s. Furthermore, the BW Pampero was secured for a one-year time charter out at a rate in the high $60,000s per day, with delivery set for August.