BW LPG Limited – Update on BW LPG’s Product Services Q1 2026 Segment Performance

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Key Terms

value-at-risk financial

Value-at-risk (VaR) estimates the largest loss an investment or portfolio is likely to suffer over a specific time frame at a given probability level — for example, the amount you would expect to lose or exceed only 5% of the time. Think of it like a weather forecast for losses: it gives a commonly agreed threshold for how bad things might get. Investors use VaR to set risk limits, compare portfolios, and decide how much capital to hold against potential losses.

mark-to-market financial

"Mark-to-market" is a method of valuing assets or investments based on their current market price, rather than their original cost or value. It helps investors see the most up-to-date worth of their holdings, much like checking the latest price of a stock before deciding to buy or sell. This approach ensures that financial statements reflect real-time value, providing a clearer picture of overall financial health.

hedging transactions financial

Hedging transactions are deliberate trades or contracts a company or investor uses to reduce the chance of losing money from price swings in things like stocks, currencies, commodities, or interest rates. Think of them as a form of insurance: they can limit downside risk but also cap potential gains and create costs, so investors watch hedging to understand a firm's true exposure, future cash needs, and how stable reported results may be.

04/16/2026 - 01:01 AM

SINGAPORE--(BUSINESS WIRE)-- BW LPG Limited (“BW LPG” or the “Company”, OSE ticker code: “BWLPG.OL”, NYSE ticker code: “BWLP”) today provides an update on its Product Services’ (“BW Product Services”) Q1 2026 segment performance.

For the quarter ended 31 March 2026, BW Product Services achieved a gross profit of approximately USD 127 million. This gross profit comprises of a positive unrealised mark-to-market change of USD 137 million from our open cargo contracts and hedging transactions, offset by a realised trading loss of USD 10 million from our portfolio of cargo, freight and hedging transactions.

After general and administrative expenses and income taxes, BW Product Services reported a net profit of approximately USD 98 million for the quarter.

The average Value-At-Risk (VAR) for the quarter was approximately USD 6 million.

BW LPG will release its Q1 2026 financial report on 2 June 2026.

Says Kristian Sørensen, Chief Executive Officer, “In a period of significant market volatility, I am very pleased with BW Product Services’ portfolio performance and risk management. The first quarter results were strongly influenced by the US/Israel-Iran conflict, as reduced export volumes from the Middle East increased the value of BW Product Services’ US cargoes. Although the realised trading results showed a loss due to hedging activities and portfolio timing effects, we expect the unrealised mark-to-market gains to be gradually realised as physical cargo deliveries take place over the coming quarters.

As previously mentioned, it is important to note that the high accounting profit does not represent an immediate uplift to the Company’s dividend capacity, as it primarily reflects the mark-to-market valuation of unrealised positions.”

About BW LPG

BW LPG is the world’s leading owner and operator of LPG vessels, with a fleet of about 50 Very Large Gas Carriers (VLGCs), including 22 vessels powered by LPG dual-fuel propulsion technology. Building on over five decades of LPG shipping experience, the company is strengthened by an in-house LPG trading division and the commercial expertise to explore investments in value chain assets. Together, these capabilities enable BW LPG to provide trusted and reliable services for sourcing and delivering LPG to customers worldwide. Delivering energy for a better world – more information about BW LPG can be found at www.bwlpg.com.

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 400 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, and water treatment.