BW LPG Declares $0.57 Dividend as Q4 TCE Income Tops $50k Per Day
BW LPG Ltd delivered Q4 2025 TCE income of $50,300 per available day and declared a $0.57 per share dividend representing 100% of shipping NPAT, backed by a Product Services profit after tax of $23 million. The company holds $613 million liquidity and has fixed 94% of Q1 2026 days at $54,000 per day above its $23,400 breakeven.
1. Q4 Financial Performance
BW LPG reported Q4 2025 time charter equivalent income of $50,300 per available day and $48,100 per calendar day, exceeding guidance of $47,000. Product Services generated a gross profit of $27 million and after-tax profit of $23 million, supporting the declaration of a $0.57 per share dividend, equal to 100% of shipping NPAT.
2. Liquidity and Q1 Bookings
The company ended the quarter with $613 million of liquidity, comprising $226 million in cash and $387 million of undrawn credit facilities. For Q1 2026, BW LPG has secured fixed rates of approximately $54,000 per day for 94% of available days, well above the $23,400 all-in cash breakeven rate.
3. Operational Risks and Dry Docking
An active dry-docking program will result in 193 off-hire days in Q1 2026 across 13 vessels, potentially reducing operational availability. Additionally, high Panama Canal utilization and halted transits in the Arabian Gulf due to regional conflict may extend transit times and elevate voyage costs.
4. Fleet Order Book and Market Outlook
The order book includes 105 VLGCs under construction, raising concerns over potential market oversupply and downward pressure on freight rates. Management anticipates sustained demand driven by US propane inventories and increased east-of-Suez volumes, while monitoring volatility from geopolitical tensions.