BWLP shares sliding a bit today. Have taken a quick glance at the Q3 report, and don’t understand the negative reaction.
- TCE avg (per calendar day) $48700 and Q3 div of 40c/sh
Trading side is negative. But, generally that segment has plus or minus aspect that gets recognized over time. Q4 numbers playing out slightly lower. But, I would be happy with anything over $40K daily, so ~$47K for 91% done is very good for me. If there was something else as a negative, I missed it.
Will poke at again. Maybe if there is a Call transcript for additional color.
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The BWLP transcript did have additional color, including a plausible explanation for the price dip. While the shipping revenue was higher than Q3 2024, I guess it was lower than BWLP mgmt had been expecting. Several reasons for this, but generally market related. My puzzlement on BW Lord is also explained. Vessel has indeed been sold, but delivers to new owners in late Q4 2025. I suppose it could be as late as Dec 31, 2025? The fleet time coverage is lower going into 2026, and BWLP would be comfortable increasing TC coverage. But, at the right level. Vessel breakeven is $24600 daily - so my earlier point is still valid. Still very good margins if TCE avg comes in around $40K daily. BWLP mgmt mentioned the company would be open to taking vessels in. Not entirely sure if that refers to the “Charter-in” category or the “Operated” category (involved on the trading side). Probably either, but likely more on the “Charter-in” side. CFO did try to explain the “black box” side a little. Not sure if many were paying attention. Mgmt did also mention dry dock schedule for both Q4 2025, and for 2026.
I like the company, and its management team. While likely bouncy, I think BWLP will have a good 2026 (at this time, my expectatiom, div payout in the $1 - $1.20 per share level).
https://seekingalpha.com/article/4849275-bw-lpg-limited-bwlp-q3-2025-earnings-call-transcript
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