BW LPG Limited: Update on BW LPG’s Product Services Q4 2024 Segment Performance
BW LPG has reported its Product Services segment performance for Q4 2024, achieving an estimated gross profit of USD 14 million. The quarter's results include a USD 58 million gain from realized trading positions, offset by a USD 44 million unrealized negative movement from mark-to-market valuations of open cargo contracts and hedging transactions.
The segment posted an estimated net profit of USD 3 million after accounting for general and administrative expenses and income taxes. The quarter maintained an average Value-At-Risk (VAR) of approximately USD 7 million. For the full fiscal year 2024, Product Services achieved total realized gains of approximately USD 93 million, with free cash exceeding USD 100 million at year-end.
BW LPG ha riportato le performance del suo segmento di Servizi Prodotti per il quarto trimestre del 2024, registrando un utile lordo stimato di 14 milioni di USD. I risultati del trimestre includono un guadagno di 58 milioni di USD da posizioni di trading realizzate, compensato da un movimento negativo non realizzato di 44 milioni di USD a causa delle valutazioni a mercato delle contratti di carico aperti e delle transazioni di copertura.
Il segmento ha conseguito un utile netto stimato di 3 milioni di USD dopo aver contabilizzato le spese generali e amministrative e le imposte sul reddito. Il trimestre ha mantenuto un Value-At-Risk (VAR) medio di circa 7 milioni di USD. Per l'intero anno fiscale 2024, i Servizi Prodotti hanno ottenuto guadagni realizzati totali di circa 93 milioni di USD, con un flusso di cassa libero che ha superato 100 milioni di USD alla fine dell'anno.
BW LPG ha reportado el rendimiento de su segmento de Servicios de Productos para el cuarto trimestre de 2024, logrando una ganancia bruta estimada de 14 millones de USD. Los resultados del trimestre incluyen una ganancia de 58 millones de USD de posiciones de trading realizadas, compensada por un movimiento negativo no realizado de 44 millones de USD de valoraciones a valor de mercado de contratos de carga abiertos y transacciones de cobertura.
El segmento registró una ganancia neta estimada de 3 millones de USD después de contabilizar los gastos generales y administrativos y los impuestos sobre la renta. El trimestre mantuvo un Valor en Riesgo (VAR) promedio de aproximadamente 7 millones de USD. Para todo el año fiscal 2024, los Servicios de Productos alcanzaron ganancias totales realizadas de aproximadamente 93 millones de USD, con un flujo de caja libre que superó 100 millones de USD al final del año.
BW LPG는 2024년 4분기 제품 서비스 부문의 실적을 보고하며, 약 1,400만 달러의 총 이익을 달성했습니다. 이번 분기의 결과에는 실현된 거래 포지션에서의 5,800만 달러의 이익이 포함되어 있으며, 이를 개방 화물 계약 및 헤징 거래의 시장 가치 평가에서 발생한 4,400만 달러의 미실현 부정적 움직임이 상쇄했습니다.
이번 분기는 일반 관리 비용 및 소득세를 감안한 후 추정 순이익 300만 달러를 기록했습니다. 이 분기의 평균 위험 가치(Value-At-Risk, VAR)는 약 700만 달러였습니다. 2024 회계연도 전체에서 제품 서비스는 약 9,300만 달러의 총 실현 이익을 달성했으며, 연말에는 여유 현금이 1억 달러를 초과했습니다.
BW LPG a rapporté la performance de son segment de Services Produits pour le quatrième trimestre de 2024, atteignant un bénéfice brut estimé de 14 millions USD. Les résultats du trimestre incluent un bénéfice de 58 millions USD provenant de positions de trading réalisées, compensé par un mouvement négatif non réalisé de 44 millions USD dû aux évaluations à la valeur de marché des contrats de cargaison ouverts et des transactions de couverture.
Le segment a affiché un bénéfice net estimé de 3 millions USD après avoir pris en compte les frais généraux et administratifs ainsi que les impôts sur le revenu. Le trimestre a maintenu une valeur à risque (VAR) moyenne d'environ 7 millions USD. Pour l'ensemble de l'exercice fiscal 2024, les Services Produits ont réalisé des gains totaux d'environ 93 millions USD, avec un flux de trésorerie disponible dépassant 100 millions USD à la fin de l'année.
BW LPG hat die Leistung seines Segments Produktdienstleistungen für das 4. Quartal 2024 berichtet und dabei einen geschätzten Bruttogewinn von 14 Millionen USD erzielt. Die Ergebnisse des Quartals umfassen einen Gewinn von 58 Millionen USD aus realisierten Handelspositionen, der durch einen nicht realisierten negativen Bewegungsbetrag von 44 Millionen USD aus Marktbewertungen offener Frachtverträge und Hedging-Transaktionen ausgeglichen wurde.
Das Segment erzielte einen geschätzten Nettogewinn von 3 Millionen USD, nachdem allgemeine und verwaltungstechnische Ausgaben sowie Einkommenssteuern berücksichtigt wurden. Das Quartal hielt einen durchschnittlichen Value-at-Risk (VAR) von etwa 7 Millionen USD. Für das gesamte Geschäftsjahr 2024 erzielten die Produktdienstleistungen insgesamt realisierte Gewinne von etwa 93 Millionen USD, wobei der freie Cashflow zum Jahresende 100 Millionen USD überstieg.
- Realized trading gains of USD 58 million in Q4 2024
- Full-year 2024 realized gains of USD 93 million
- Free cash exceeding USD 100 million at year-end
- Secured multi-year contract with Enterprise Products Partners
- USD 44 million unrealized negative movement from mark-to-market valuations
- Net profit of only USD 3 million despite USD 58 million in realized gains
Insights
BW LPG's Product Services segment delivered a noteworthy performance in Q4 2024, with the USD 58 million in realized trading gains demonstrating strong execution capabilities in LPG cargo trading. The USD 44 million unrealized mark-to-market loss reflects paper positions that haven't matured yet and shouldn't be viewed negatively as these positions could recover or represent hedging strategies protecting physical cargo values.
The segment's USD 93 million in total realized gains for FY2024 and robust free cash position exceeding USD 100 million highlight the success of BW LPG's trading strategy. The relatively modest USD 7 million average Value-At-Risk indicates disciplined risk management practices, suggesting the company maintains controlled exposure despite handling substantial trading volumes.
The strategic partnership with Enterprise Products Partners positions BW LPG for expanded trading opportunities in 2025. This multi-year contract could provide steady cargo volumes and potentially more predictable trading margins, reducing reliance on spot market volatility. The combination of proven trading capabilities, strong cash position and secured future volumes through strategic partnerships suggests a well-structured approach to growth in the LPG trading space.
For the quarter ending 31 December 2024, BW Product Services reported an estimated gross profit of approximately
After general and administrative expenses and income taxes, BW Product Services reported an estimated net profit of approximately
The average Value-At-Risk (VAR) for the quarter was approximately
BW LPG will release its Q4 2024 financial report on 27 February 2025.
Says Kristian Sørensen, Chief Executive Officer, “We are pleased to report a strong finish to fiscal year 2024 for our Product Services segment, highlighted by the successful realisation of
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, an in-house LPG trading division and a growing presence in LPG terminal infrastructure and distribution, BW LPG offers an integrated, flexible, and reliable service to customers along the LPG value chain. More information about BW LPG can be found at https://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 450 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250121232946/en/
For further information, please contact:
Kristian Sørensen
Chief Executive Officer
Samantha Xu
Chief Financial Officer
E-mail: investor.relations@bwlpg.com
Source: BW LPG Limited
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