BW LPG Limited has sold the 2015-built BW Levant, a vessel acquired in the 2024 Avance Gas transaction, to realize a net book gain of approximately US$17 million. The sale is expected to generate net cash proceeds of around US$38 million, with delivery to the buyer scheduled for mid-November. This move allows the company to continue generating revenue from the asset in a strong freight market before the transfer.

Kristian Sørensen, CEO of BW LPG, stated that the sale demonstrates a disciplined approach to capital allocation. He highlighted that the company achieved a strong return just two years after purchasing the vessel through the Avance Gas transaction. The transaction aligns with BW LPG's strategy of renewing its fleet and focusing on active asset management to generate shareholder value.

Transaction Details

The sale of BW Levant involves specific financial metrics and timelines:

Company Overview

BW LPG is the world’s leading owner and operator of LPG vessels, managing a fleet of about 50 Very Large Gas Carriers (VLGCs). Over 20 of these vessels are powered by LPG dual-fuel propulsion technology. The company leverages over five decades of experience in LPG shipping, supported by an in-house trading division and commercial expertise to explore investments in value chain assets. BW LPG is associated with BW Group, a global energy and maritime company controlling a fleet of over 400 vessels.

BW LPG Limited reported a net result of minus USD 31 million for its Product Services segment in Q2 2026, impacted by a negative mark-to-market adjustment of USD 146 million. The company recorded a realised trading gain of USD 127 million from its portfolio of cargo, freight, and hedging transactions during the quarter ended 30 June 2026. The trading result will form part of the BW LPG Q2 2026 results, scheduled for release on 28 August 2026.

Performance Overview

For the quarter, BW Product Services achieved a gross trading result of approximately minus USD 19 million. This figure comprises the USD 127 million realised trading gain offset by the USD 146 million unrealised mark-to-market change from open cargo contracts and hedging transactions. The average Value-At-Risk (VAR) for the quarter was approximately USD 17 million, an increase driven primarily by a surge in market volatility across core product exposures.

Q2 2026 Highlights

Kristian Sørensen, Chief Executive Officer, stated that the Q2 trading environment was significantly impacted by geopolitical turbulence in the Middle East and considerable fluctuations in LPG prices. He noted that the strong realisation of USD 127 million brings the combined Q1 and Q2 realised trading result to about USD 117 million. Sørensen added that a negative mark-to-market adjustment was expected as the US/Asia LPG arbitrage narrowed towards the end of Q2, emphasizing the company's commitment to maintaining a well-balanced trading portfolio through active risk management.

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 over 20 vessels powered by LPG dual-fuel propulsion technology. The company is associated with BW Group, a leading global energy and maritime company involved in shipping, deepwater oil & gas production, renewable energy, and digital infrastructure.