Photo credit: BW LPG, Anders Onarheim / CEO
BW LPG, an owner and operator of LPG carriers with five decades of operating experience, expects more growth and an increased activity, as it reveals net profit of approximately USD 3 million for its BW Product Services.
BW Product Services enjoys a positive first quarter of operations, as the shipowner says.
Singapore-based VLGC owner BW LPG strikes a profit from its division in the first quarter.
The group said BW Product Services had achieved net earnings of $3m to 31 March. This included the value of cargo and derivative positions based on a 12-month forward rolling mark-to-market valuation.
The figure was adjusted for estimated costs from general and administrative expenses, taxes and depreciation.
The net profit excludes the mark-to-market (M-t-M) valuation of shipping positions as these are not accounted for on an M-t-M basis. Furthermore, the average value-at-risk (VAR) for the quarter was approximately USD 5 million.
As Anders Onarheim, BW LPG CEO, says: “We are pleased with how our first full quarter of operation after the Vilma-transaction has played out. We decided to conservatively adjust our portfolio to a Q1 market which traditionally is challenging while progressing further with the remaining parts of the company integration. Expectations are for increased activity in Q2 with an enhanced and scalable trading platform.”
Founded in 1955 by Sir YK Pao, BW controls a fleet of over 490 vessels transporting oil, gas and dry commodities, with its 200 LNG and LPG ships constituting one of the largest gas fleet in the world. In the renewables space, the group has investments in solar, wind, batteries, biofuels and water treatment.
