BW LPG provided an update on its Product Services’ (“BW Product Services”) Q2 2026 segment performance.
Q2 2026 highlights:
- Gross trading result: – USD 19 million
- This includes:
- USD 127 million realised trading gain
- – USD 146 million unrealised mark-to-market change
- Net result after general and administrative expenses and income taxes: – USD 31 million
- Average Value-At-Risk (VAR): USD 17 million
- The trading result will form part of the BW LPG Q2 2026 results, which will be released on 28 August 2026
Performance overview:
For the quarter ended 30 June 2026, BW Product Services achieved a realised trading gain of USD 127 million from our portfolio of cargo, freight and hedging transactions. After accounting for the negative change of unrealised mark-to-market valuation of USD 146 million from our open cargo contracts and hedging transactions, BW Product Services reported a gross trading result of approximately minus USD 19 million for the quarter.
After general and administrative expenses and income taxes, BW Product Services reported an estimated net result of approximately minus USD 31 million for the quarter.
The average Value-At-Risk (VAR) for the quarter was approximately USD 17 million. The increase in VAR is primarily driven by a surge in market volatility across our core product exposures.
Says Kristian Sørensen, Chief Executive Officer, “The Q2 trading environment was significantly impacted by continued geopolitical turbulence in the Middle East and considerable fluctuations in the LPG prices. Hence, I am very pleased to report a strong realisation of USD 127 million from our trading activities in Q2, which brings the combined Q1 and Q2 realised trading result to about USD 117 million. Since we ended Q1 with a record high valuation of our forward trading portfolio, a negative mark-to-market adjustment was expected as the US/ Asia LPG arbitrage narrowed towards the end of Q2. We remain committed to maintaining a well-balanced trading portfolio which remains firmly net positive thanks to active risk management by the BW Product Services team.”