BW LPG provides update on Q4 Product Services segment performance

BW LPG (BWLP) provided an update on its Product Services’ Q4 segment performance. For the quarter, BW Product Services reported an estimated gross profit of approximately $14M. This gross profit primarily stems from a $58M gain from realized trading positions, which was partially offset by an unrealized negative movement of $44M due to the change in mark-to-market value of its open cargo contracts and hedging transactions. After general and administrative expenses and income taxes, BW Product Services reported an estimated net profit of approximately $3M for the quarter. The reported net profit includes accruals for personnel costs which may change subject to board approvals. The average value-at-risk for the quarter was approximately $7M. Kristian Sorensen, CEO, said, “We are pleased to report a strong finish to fiscal year 2024 for our Product Services segment, highlighted by the successful realisation of USD 58 million from completed cargo deliveries and trades in the fourth quarter. This elevates our total realised gains from Product Services for the year to approximately USD 93 million, with free cash exceeding USD 100 million at year-end. As we transition into fiscal year 2025, we remain committed to maintaining a well-balanced trading portfolio and are poised to increase cargo volumes through our previously announced multi-year contract with Enterprise Products Partners.”