BW LPG’s Financial Results for Q2 2023

(29 August 2023)

Highlights and Subsequent Events
  • Achieved VLGC freight rates of USD 51,600 per calendar day with 99% commercial utilisation
  • Generated Net Profit after Tax of USD 78.2 million or an earnings per share of USD 0.59
  • Generated trading-profit-adjusted result[1] of USD 112 million and declared Q2 2023 dividend of USD 0.81
  • Concluded the sale and delivery of two vessels, generating USD 113.5 million in liquidity and a net book gain of approximately USD 26.6 million
  • Added one vessel to the pool fleet and completed purchase option of another vessel
  • Board has resolved to work towards a dual US listing[2]
Financial Performance

BW LPG Limited (“BW LPG”, the “Company”, OSE ticker code: “BWLPG.OL”) reported a Q2 2023 Net Profit After Tax of USD 78.2 million, yielding an annualised return on equity of 28% with USD 194.9 million of free cash flow. EBITDA was USD 107.6 million, and earnings per share was USD 0.59. Adjusting for trading profit, BW LPG reported a result of USD 112 million for the quarter, equivalent to USD 0.81 per share.

Net leverage ratio remained low at 19.4% in Q2 2023, mainly due to solid cash flows from operations and investing activities. Available liquidity was USD 492 million at the end of the quarter. On the back of another strong quarter, the Board has declared a cash dividend of USD 0.81 per share amounting to USD 107 million. This translates to a 100% payout ratio as a percentage of results for the quarter after adjustment for trading profits.

Commercial Performance

Q2 2023 VLGC freight rates averaged USD 51,600 per calendar day, or USD 52,500 per available day with 99% commercial utilisation. Time Charter Equivalent (“TCE”) income was USD 167.0 million for the quarter, mainly due to higher LPG spot rates and higher fleet utilisation. In addition, our India subsidiary continues to contribute stable TCE income of USD 27.9 million for Q2 2023 mainly from fixed-rate time charters.

The sale and delivery of BW Odin (2009-built, Hyundai Heavy Industries, Korea), and BW Austria (2009-built, Daewoo Shipbuilding & Marine Engineering, Korea) were concluded in Q2 2023. In a strong second-hand market, these sales generated approximately USD 113.5 million in liquidity and a net book gain of approximately USD 26.6 million. BW LPG welcomed one vessel (Vivit Dubhe) to the pool, and and took delivery of BW Messina (2017-built, Daewoo Shipbuilding & Marine Engineering Co) whose purchase option was completed in Q2 2023.

Corporate Update

The Board has resolved to work towards a dual US listing of BW LPG shares. More information will be forthcoming when available.

Market Outlook

For the remainder of 2023 and into 2024, we expect sustained high spot rates, driven by robust LPG exports from both North America and the Middle East.

For the longer term, we remain optimistic about the prospects of natural gas and LPG. Gas continues to serve as the most promising transitional fuel towards a cleaner future. Current favourable oil prices are expected to stimulate additional growth in LPG production and exports. Also, alongside an expected increase in LPG supply from increased rig productivity in the US, we anticipate growing demand such as from the addition of new PDH plants in China. While the rate of newbuilding ordering has slowed, a significant number of ships in the current orderbook remain to be delivered, and the market outlook is dependent on supply-side discipline.

Q2 2023 Earnings Presentation and Interim Financial Report

Please see attachments for the Q2 2023 Earnings Presentation and Interim Financial Report.

1. BW LPG Q2 2023 Earnings Presentation
2. BW LPG Q2 2023 Interim Financial Report

BW LPG will host an investor presentation of the financial results at 13:00hrs CET today. The presentation will be made by Anders Onarheim (CEO), Kristian Sørensen (Deputy CEO and Head of Strategy), Niels Rigault (EVP, Commercial) and Iver Baatvik (Interim CFO, Head of Investor Relations and Corporate Development).

The presentation will be held live via Zoom. Please register in advance at the link below:

A recording of the presentation will also be available after the event on the Company’s website at:

For further information, please contact:

Anders Onarheim
Chief Executive Officer

Iver Baatvik
Interim CFO, Head of Corporate Development and Investor Relations
Tel: +65 6705 5519

[1] Trading profit is a non-IFRS/non-GAAP number.

[2] This does not constitute an offer to sell or the solicitation of an offer to buy any securities of BW LPG nor shall there be any sale of any securities of BW LPG in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.


About BW LPG
BW LPG is the world’s leading owner and operator of LPG vessels, owning and operating Very Large Gas Carriers (VLGC) with a total carrying capacity of over 3 million CBM. With five decades of operating experience in LPG shipping, experienced employees and an in-house LPG trading division, BW LPG offers an integrated, flexible, and reliable service to customers. More information about BW LPG can be found at

BW LPG is associated with BW Group, a leading global maritime company involved in shipping, floating infrastructure, deepwater oil & gas production, and new sustainable technologies. Founded in 1955 by Sir YK Pao, BW controls a fleet of over 490 vessels transporting oil, gas and dry commodities, with its 200 LNG and LPG ships constituting the largest gas fleet in the world. In the renewables space, the group has investments in solar, wind, batteries, biofuels and water treatment.

This information is subject to disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.