BW Product Services’ profit fell in the second quarter.
The gas trading division reported an estimated gross profit of about $26m for the second quarter, BW LPG said in a statement.
The gross profit was $32m in the first quarter of this year.
The gross profit represents the realised trading profit, plus net derivative gains and losses from open cargo contracts and hedging transactions.
After general and administrative expenses and income taxes, BW Product Services made an estimated net profit of about $16m for the second quarter compared with $20m for the first quarter.
In the first quarter, the board of BW Product Services approved a $30m share capital reduction which was finalised during the second quarter.
Post capital reduction, BW Product Services reported a book equity of about $68m for the quarter ended 30 June.
The average value-at-risk for the quarter was unchanged at about $5m.
Shares of the Oslo-listed VLGC owner have fallen in the past months.
The stock has dropped more than 20% since reaching a peak at the beginning of June.
Last week, Pareto Securities downgraded the stock to “hold” from “buy”.
According to Pareto, the second-quarter results will be “solid” but the “focus must be on a disappointing start” to the third quarter.
The target price was cut to NOK 185 ($17.17) per share from NOK 230. Shares closed at NOK 173 on Tuesday in Oslo.
“And now, VLGC rates are less than half the level we enjoyed a year ago. This despite a theoretical sufficient arbitrage, increasing US inventories, and few newbuild delivered this year,” Eirik Haavaldsen, head of research at Pareto, said in a note.
BW LPG will release its full second-quarter financial report on 22 August.
