BW LPG Posts Wider Loss, Remains Cautiously Optimistic

Provider of maritime gas transportation services BW LPG delivered a wider loss in the fourth quarter and full year 2018.

Loss after tax was USD 34.1 million in the fourth quarter ended December 31, 2018, compared to a loss of USD 19 million reported in the same period a year earlier. Yearly loss also widened to reach USD 72.4 million for 2018, compared to a loss of USD 44.7 million reported in 2017.

Operating revenue for the quarter increased to USD 154.3 million from USD 122 million in the same three-month period in 2017.

The company’s Time Charter Equivalent income increased to USD 84.6 million in the fourth quarter of 2018, compared to USD 79.3 million reported in the same period a year earlier, mainly attributable to higher LPG spot rates.

TCE income for the full year was lower in 2018 at USD 300.9 million, against USD 335.4 million seen in 2017.

“With strengthening fundamentals, we expect the freight market to continue to improve going forward. We remain cautiously optimistic for the full year due to sustained U.S. LPG production growth and incremental export volumes being added from other key loading areas such as Australia and Canada,” according to BW LPG.

“However, increased demand for VLGC’s from growing U.S. exports will in part be offset by a high level of newbuild deliveries. We maintain our neutral view on Middle Eastern VLGC exports as incremental regional growth is expected to compensate the effects from the re-imposed sanctions on Iran.”