BW LPG Ltd (BWLP)

Price$25.84Cached quoteAs of 2026-09-17 11:03 UTC

AI: Fair-priced

Price checkThe valuation looks reasonable, not cheap enough to ignore unusually strong current freight markets.

At the latest close, the shares trade at roughly 15 times FY2025 diluted earnings and about ten times FY2025 free cash flow, defined here as operating cash flow minus capital spending. Strong first-half 2026 profit compresses the multiple to roughly seven times if annualized, but that assumes unusually high freight rates persist. Because both upside and normalization risk are visible, the current price looks closer to fair value than a clear bargain. BW LPG+3Investing.com+3SEC+3

Big pictureCash generation has stayed solid, but reported profit swings sharply with shipping rates and trading valuations.

Net income fell from $493 million in 2023 to $395 million in 2024 and $290 million in 2025, while operating cash flow remained above $500 million each year. Cash left after capital spending was about $397 million in 2023, $147 million in 2024, and $385 million in 2025. That shows useful cash durability, but 2026 highlights volatility: Product Services moved from a large unrealized gain in Q1 to a $31 million Q2 loss after a $145 million non-cash revaluation of open positions. Pasted text BW LPG+1

Business strengthLiquidity is comfortable, but fleet renewal is becoming more debt-funded and could dilute shareholders.

At year-end 2025, BW LPG held $242 million of cash against $990 million of debt and $1.83 billion of equity; current assets exceeded current liabilities by more than $220 million. By Q2 2026, management reported $773 million of liquidity and a 23.5% net leverage ratio. Shares outstanding rose about 8% in 2024, then stayed roughly flat in 2025. The new $300 million convertible bond could add about 6.5% to the share count if fully converted at its initial terms, before later adjustments. Pasted text BW LPG+1

What could change the storyThe stock works if strong freight lasts, but fleet growth and new spending can erase the bargain.

The bull case is near-term: Q3 2026 had 92% of fleet days fixed at about $88,000 per day, North American export growth was strong, and recent vessel sales are crystallizing gains and cash. The bear case is structural: the global very large gas carrier orderbook equals 35% of the existing fleet, while BW LPG has committed roughly $940 million to eight new Panamax ships. A reopening of the Strait of Hormuz could also shorten routes and weaken freight demand. Fair value therefore assumes some normalization, not peak conditions forever. BW LPG+2BW LPG+2

AI: News

Strong Q2, larger dividendSecond-quarter shipping earnings strengthened, near-term rate visibility improved, and the board declared a larger dividend.

On August 28, BW LPG reported $120 million of profit attributable to shareholders and $0.79 of earnings per share for Q2. Shipping earned about $74,000 per available day, while 92% of Q3 fleet days were already fixed near $88,000 per day. The board declared a $0.95 dividend, equal to 100% of shipping profit after tax. NYSE shares closed about 2% lower that session; timing alone does not establish that the results caused the move. BW LPG+1

Convertible funds fleet renewalA low-coupon convertible bond funds fleet expansion cheaply, but creates a real path to future dilution.

On September 2, the company placed $300 million of convertible bonds due 2031 with a 2.25% coupon. Proceeds will partly finance eight Panamax gas carriers. The initial conversion terms represented a 40% premium to the reference share price, yet full conversion would add roughly 9.8 million shares, about 6.5% of the year-end 2025 count before later adjustments. NYSE shares opened roughly 5% below the prior close that day before recovering; the concurrent hedge placement makes the opening weakness understandable, but causation remains uncertain. BW LPG+1

Older vessels soldThree vessel sales recycle older assets into cash while locking in accounting gains for fleet renewal.

From July 10 through August 25, BW LPG announced sales of BW Elm, BW Levant, and BW Birch. The disclosed net cash proceeds total about $166 million on the stated bases, with expected book gains totaling about $90 million. Elm and Birch are older 2007-built ships; Levant was acquired in the 2024 Avance Gas transaction. These sales reduce older capacity and help fund renewal, although some figures are stated on a 100% subsidiary basis and therefore are not all directly attributable to BW LPG shareholders. BW LPG+2BW LPG+2

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Revenue

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2025

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Total cash / debt

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Financial statements

	2025	2024	2023	2022
Revenue	$3.58B	$3.56B	$2.95B	$1.56B
Operating expenses	$42.9M	$28.8M	$32.9M	$15.2M
Operating income	$348.0M	$433.7M	$523.7M	$270.8M
Operating margin	9.72%	12.17%	17.77%	17.38%
EBITDA	$603.6M	$635.0M	$740.9M	$429.6M
EBITDA margin	16.85%	17.82%	25.14%	27.57%
Net income	$289.7M	$394.9M	$493.0M	$238.6M
Net profit margin	8.09%	11.08%	16.73%	15.31%
Basic EPSper basic share	$1.60	$2.65	$3.57	$1.69
Diluted EPSper diluted share	$1.60	$2.64	$3.53	$1.68

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

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Top 20 reported holders of BWLP
Holder	Shares held
Sohmen-Pao Andreas	48.41M
VANGUARD CAPITAL MANAGEMENT LLC	2.83M
ACADIAN ASSET MANAGEMENT LLC	2.59M
VICTORY CAPITAL MANAGEMENT INC	2.27M
JPMORGAN CHASE & CO	1.92M
AMERIPRISE FINANCIAL INC	1.91M
BARCLAYS PLC	1.77M
VANGUARD FIDUCIARY TRUST CO	798.98K
UBS Group AG	668.02K
GOLDMAN SACHS GROUP INC	625.32K
DZ BANK AG Deutsche Zentral Genossenschafts Bank, Frankfurt am Main	574.27K
MILLENNIUM MANAGEMENT LLC	571.31K
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP	562.27K
CITIGROUP INC	524.31K
JANE STREET GROUP, LLC	486.06K
TWO SIGMA INVESTMENTS, LP	481.37K
CAUSEWAY CAPITAL MANAGEMENT LLC	457.05K
BANK OF AMERICA CORP /DE/	356.76K
MANUFACTURERS LIFE INSURANCE COMPANY, THE	349.6K
MORGAN STANLEY	345.6K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 3 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)0$0.00 disclosed value

No insider transactions transactions were reported in the stored SEC coverage.

Review ownership filings at SEC.gov ↗

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