Summary
Today, BW LPG announced its Q4 2025 financial results.
We are pleased to report a Q4 2025 Net Profit After Tax (NPAT) of US$123 million, yielding an annualised return on equity of 26%. The Q4 profit attributable to the equity holders of the company was US$104 million, representing an earnings per share of US$0.69. The Board declared a dividend of US$0.57 per share, equivalent to 100% payout ratio of the quarterly Shipping NPAT.
For our Shipping Performance, we delivered a Time Charter Equivalent (TCE) income for Q4 2025 of US$50,300 per available day, above our guidance of US$47,000 per day and US$48,100 per calendar day. The earnings were well supported by the Company’s time charter coverage of 44% of available days at US$ 48,100 per day.
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Q4 2025 Earnings Presentation
Download our earnings presentation here.
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Q4 2025 Interim Financial Report
Download our interim financial report for the quarter here.
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Q4 2025 Earnings Presentation Recording
Watch a recording of our earnings presentation for the quarter here.
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Q4 2025 Earnings Presentation Transcript
Read the transcript of our earnings presentation for the quarter here.
Q4 2025 market update and outlook
Market Update
The LPG market in 2025 was shaped by geopolitical events, regulatory interventions and logistical bottlenecks. Trade tensions and port fee legislation created temporary inefficiencies, while congestion in the Panama Canal once again diverted vessels onto longer routes, supporting ton-mile demand. At the same time, market fundamentals remained solid, and the supply-driven trade dynamics of LPG demonstrated resilience through its “priced-to-clear” characteristics, with Asia continuing to serve as the key destination despite shifts in global trade patterns. In recent months, high US propane inventories have also contributed to a wider US – Far East price arbitrage, supporting a firm VLGC spot rate sentiment.
Cargo Movements
LPG exports carried on VLGCs out of the US increased by nearly 5% during 2025 compared to 2024. US exports bound for China have recovered from their low point in May 2025 but are still well below levels seen before trade tensions between China and the US were at their highest.
Out of the Middle East, LPG exports on VLGCs were flat in 2025 compared to 2024. OPEC+ has paused increases in oil production for the first quarter of 2026, but should the group decide to increase oil production, this could also increase the amount of LPG being brought to market.
On the importing side, LPG shipped on VLGCs from North America and the Middle East to the Far East declined by 2% in 2025 compared to the preceding year. The decline in Far East imports was largely driven by lower imports into China, which declined 3% year-by-year. This decline has occurred in tandem with lower LPG stocks, indicating that China has tapped into inventories and that downstream demand for LPG remains intact.
While Far East imports from North America and the Middle East were down in 2025, imports into other regions grew. Notably, Indian and Southeast Asian imports grew 10% and 11% respectively in 2025 from North America and the Middle East combined.
Panama Canal
Panama Canal dynamics remained an important driver of ton-mile demand in 2025. High utilisation of the new locks and strong demand for pre-booked slots led to elevated transit fees and encouraged many VLGCs to sail via the Cape of Good Hope instead of transiting the canal.
With continued fleet growth across several shipping segments, including LNG, ethane carriers and VLGCs, high utilisation of the canal’s new locks should be expected in the coming years.
Fleet Capacity
The VLGC fleet currently stands at 421 ships, with an orderbook of 105 vessels. Year to date, 8 new VLGCs have been delivered, with 30 more scheduled for the remainder of 2026. For new orders, well-established shipyards are indicating delivery slots no earlier than 2028 for VLGCs. 44 VLGCs – more than 10% of the existing fleet are 25 years or older.
Market Outlook
LPG export fundamentals are expected to remain sound with support seen from additional export capacity, new gas projects, long-haul trade patterns and recurring constraints in the Panama Canal.
North American LPG exports are expected to grow in the mid-single digits in the coming years, supported by new export infrastructure and increasingly gas-rich Permian oil production.
LPG exports out of the Middle East are expected to grow in the high single digits in the coming years, driven by new and expanding projects, especially in Saudi Arabia and in Qatar.
In China, average operating rates at PDH plants are currently below normal historical levels but are expected to increase going forward as more plants return from maintenance. LPG inventories in China have declined since mid-2025 and are now lower than normal. In addition, three more PDH plants are scheduled for start-up in 2026, with another five expected in 2027.
The Ras Tanura – Chiba FFA market for FY 2026 is currently reflecting earnings slightly above of about US$85,000 per day, albeit with limited liquidity.
