As BW LPG (BWLP) is my second largest shipping position (by value), I take a little more interest in company developments. BW LPG has a collaborative venture with one of more partners in India. The major initiative of this venture was to build an LPG import terminal in India. When BWLP management announced their Q1 results, the CEO mentioned the company was going to not be continuing with the activity.
In the scheme of things, at this stage, BW LPG’s investment was on the smaller side i.e. $10M - $15M (a lot lower than I first thought), so it isn’t that big a deal.
BWLP mgmt is happy with the performance of the time-charter TC coverage. They would like to increase the coverage, but the company does not just rush in to get the coverage. Currently, TC avg is @ $45K, which seems quite strong (Prior to the Avance Gas fleet acquisition, their break-even was around $20K daily). Company would be happy getting back to the 40% level on TC coverage.
The main shareholder provided a loan to help cover the financing of the Avance Gas fleet. The company is working to get this switched over to a bank financing facility on reasonable terms. They arranged a sale & leaseback financing for a recent vessel acquisition.
https://seekingalpha.com/article/4788586-bw-lpg-limited-bwlp-q1-2025-earnings-call-transcript
For the LPG shipping segment, the first half of the year is typically slower than the second half. I’m comfortable with the 28c/sh payout for Q1. I had modeled for 20c - 30c in the slower quarters, 30c - 45c in the stronger quarters. There is a share buyback program in place. However, I don’t think they will initiate purchases unless the price falls below $9.