Analysts have reduced second-quarter earnings estimates for BW LPG Ltd, the Singapore-based liquefied petroleum gas shipping company, even as the group delivered a stronger-than-expected first quarter.
The company is scheduled to release its Q2 results before market open on Friday. Current consensus estimates point to earnings per share of $1.25 on revenue of $328.29 million. In the first quarter, BW LPG reported EPS of $1.08 on revenue of $324.51 million, alongside a net profit of $187 million. The quarter’s annualized return on equity reached 38%, supported by an average rate of $55,500 per available day and 92% fleet utilization.
A mark-to-market gain of $137 million in its product services trading portfolio contributed to the Q1 EPS beat, which exceeded the consensus forecast of $0.60 by 81%.
Over the past two months, EPS estimates have declined by 7.7%, while revenue forecasts have fallen by 3.4% in the past week. BW LPG’s market capitalization stands at $3.6 billion, with shares trading at $23.53. The stock’s 52-week range is $11.72 to $25.48, with a forward price-to-earnings ratio of 5.71 and a trailing multiple of 9.99. The company’s trailing twelve months operating leverage shows EBITDA growth of 41% and operating income growth of 45%.
Trade flow dynamics highlight a 22% year-over-year decline in Middle Eastern VLGC exports during Q1, while U.S. LPG exports carried on VLGCs rose by 5.9%. Shipments to China remained below historical averages amid ongoing trade tensions. BW LPG operates the world’s largest fleet of Very Large Gas Carriers, comprising roughly 50 vessels, including over 20 powered by LPG dual-fuel propulsion technology.
