Singapore VLGC owner BW LPG continues to reap big rewards from its new gas trading division.
The Oslo-listed company said BW Product Services logged a gross profit of $32m in the first quarter of 2024.
This is unchanged from the final three months of last year.
Gross profit represents actual trading earnings plus net derivative gains, while knocking off losses from open cargo contracts and hedging transactions.
Net profit was $20m for the period.
BW LPG will release its full first-quarter results on 30 May.
Fearnley Securities called the trading figure another strong performance from the division.
Over the last three quarters, net earnings have averaged $21m.
Analysts Oystein Vaagen and Fredrik Dybwad said the operation is proving a solid investment.
The division, formed by the takeover of the trading business of Spain’s Vilma Oil in 2022, buys LPG and offers to deliver directly to end-users.
The deal also brought across five VLGCs from Vilma Oil’s fleet.
Fearnley Securities had estimated earnings per share for BW LPG overall at $0.56 per share in the first quarter, below consensus at $0.64.
But this only assumed a net profit of $4m from BW Product Services.
Thursday’s figures will lift its estimate to $0.63 per share and should boost the consensus as well, the investment bank said.
TradeWinds reported on Thursday that the company expects its dual listing on the New York Stock Exchange will increase trading in its stock and lift the company’s pricing.
“It is a big milestone. It is a new chapter that begins ... with the New York listing,” chief executive Kristian Sorensen said.
The BW Group-backed owner is targeting a New York debut in the second quarter.
