BW LPG’s Financial Results for Q3 2021


  • Generated Q3 net profit after tax of USD 29.3 million
  • Achieved Q3 VLGC freight rates of USD 27,800 per calendar day, or USD 30,100 per available day
  • Retrofitted two VLGCs with LPG dual-fuel propulsion engines and installed SMARTship technology on three VLGCs in Q3
  • Concluded the sale and delivery of one vessel in July and two vessels in August, and exercised the purchase option on one time charter-in VLGC in August
  • Declared Q3 cash dividend of USD 0.10 per share amounting to USD 13.8 million

Financial Performance

BW LPG Limited (“BW LPG”, the “Company”, OSE ticker code: “BWLPG.OL”) reported a Q3 2021 net profit after tax of USD 29.3 million, yielding an annualised return on equity of 8.8% with USD 105.6 million of free cash flow. EBITDA was USD 65.5 million for Q3 2021, representing an EBITDA margin of 62.5% for the quarter. Earnings per share was USD 0.20.

Q3 2021 VLGC freight rates were USD 27,800 per calendar day, or USD 30,100 per available day with 98% commercial utilization. Time Charter Equivalent (“TCE”) income increased to USD 104.8 million for Q3 2021, mainly due to increase in LPG spot rates and partially offset by lower fleet utilisation, the latter due to our ongoing LPG retrofitting program. Two more VLGCs were retrofitted in Q3, and we now have ten LPG-powered VLGCs on water to-date, the world’s largest fleet of lower-emissions VLGCs.

During the quarter, an additional three VLGCs were fitted with SMARTship technology, bringing the total to 20 VLGCs. SMARTShip technology enables real-time data monitoring, which, together with active weather routing, has saved approximately USD 1.5 million in reduced fuel consumption year-to-date.

The sale and delivery of BW Confidence (2005-built, Mitsubishi Heavy Industries) for further trading was concluded in July. The sale and delivery of BW Boss (2002-built, Kawasaki Heavy Industries Ltd.) and BW Energy (2002 built, Kawasaki Heavy Industries Ltd.) for further trading were concluded in August. These generated USD 80.7 million in liquidity and a net gain of USD 8.7 million.

BW LPG exercised the purchase option for Yuricosmos (2010-built, Mitsubishi H.I) in August. Renamed BW Niigata, its purchase led to a gain of USD 3 million due to derecognition of right-of-use asset and is expected to generate approximately 8% in ROCE.

The Board has declared a Q3 2021 cash dividend of USD 0.10 per share amounting to USD 13.8 million. The shares will be traded ex-dividend on and from 19 November 2021. The dividend will be payable on 10 December 2021 to shareholders on record as of 22 November 2021.

Market Outlook

We remain optimistic for the rest of 2021 and expect the VLGC freight rate to average above cash breakeven. However, rising US domestic consumptions in winter and the current low US inventory will likely keep US LPG prices elevated. This could squeeze the geographical LPG US-to-Far East price arbitrage.

We believe the VLGC market in 2022 will continue to be supported by growing US LPG exports, recovering productions from the Middle East, continued strong and stable end user demand, and increasing shipping inefficiencies especially at the Panama Canal.

In the longer term, the heavy newbuilding delivery schedule for 2023 have created market uncertainty. However, the market could be supported by Panama Canal inefficiencies and the expected reduction in the speed of the global fleet to comply with the IMO Energy Efficiency Existing Ship index (EEXI). This could also lead to the recycling of older vessels in the global fleet.

Q3 2021 Quarterly Report

Please see attachments for the Q3 2021 Earnings Presentation and Interim Financial Report.

  1. BW LPG Q3 2021 Earnings Presentation
  2. BW LPG Q3 2021 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), Elaine Ong (CFO), Niels Rigault (EVP, Commercial) and Pontus Berg (EVP, Technical and Operations).

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:

Elaine Ong, CPA, CA
Chief Financial Officer
Tel: +65 6705 5506

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

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 and experienced seafarers and staff, BW LPG offers a 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. BW Group controls a fleet of over 420 ships transporting crude oil, oil products, and dry commodities, and comprises one of the largest gas fleets in the world with over 190 LNG and LPG vessels.

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