BW LPG reports Q3 product services segment achieves $15M gain

BW LPG (BWLP) provided an update on its product services’ Q3 segment performance. In Q3, BW product services achieved a realized gain of $15M from portfolio of cargo, freight and hedging transactions. After accounting for the unrealized mark-to-market change of negative $39M from open cargo contracts and hedging transactions, the company ended the quarter with a gross trading result of approximately minus $24M. After general and administrative expenses and income taxes, BW Product Services reported an estimated result of approximately minus $30M for the quarter. The average value-at-risk for the quarter was approximately $5M. BW LPG will release its Q3 financial report on December 2. Says Kristian Sorensen, CEO, “We are pleased to report a continued strong realisation of USD 15 million from our trading activities in Q3, bringing the aggregated realised trading result year-to-date to approximately USD 54 million. Despite turbulent market conditions negatively affecting the mark-to-market valuation of our forward trading portfolio, the portfolio remains firmly net positive thanks to active risk management by the BW Product Services team. Our priority is delivering a positive realised trading result which is the driver for BW Product Services’ dividend capacity, although mark-to-market fluctuations should be anticipated amid ongoing macro uncertainties and market volatility.”