BW LPG Reports $15M Realised Gain in Q3 2025 Amid Mark-to-Market Losses—Net Trading Results Remain Resilient

Realised Trading Gains Highlight BW LPG’s Disciplined Execution in Q3 2025

BW LPG Limited (“BW LPG”, NYSE: BWLP, OSE: BWLPG.OL) has provided an update on its Product Services division’s performance for the third quarter ending September 30, 2025. The headline figure: a realised gain of $15 million, attributed to its portfolio of cargo, freight, and hedging transactions. While this shows the company’s operational agility in choppy waters, investors should note that it comes in the context of a more complex mark-to-market landscape.

Mark-to-Market Headwinds Result in Negative Gross Trading Result

While BW Product Services booked strong realised profits, mark-to-market movements worked against the quarter’s net headline. Unrealised mark-to-market changes from open cargo contracts and hedges amounted to negative $39 million. As a result, the division ended the quarter with a gross trading result of roughly minus $24 million. After factoring in general and administrative expenses as well as taxes, the estimated net segment result for Q3 was a loss of $30 million.

Risk Controls Keep YTD Realised Gains Positive Despite Volatility

According to CEO Kristian Sørensen, year-to-date realised trading gains stand at an impressive $54 million, underlining a strong performance even as mark-to-market swings impact open contracts. He stressed that “the portfolio remains firmly net positive thanks to active risk management by the BW Product Services team.” Notably, the division maintained an average value-at-risk of $5 million for the quarter—a clear sign that risk exposure is being carefully calibrated relative to the overall portfolio.

Outlook: Focus on Realised Gains to Support Dividend Potential

Despite headwinds from negative mark-to-market valuations, management is doubling down on the importance of delivering realised profits, which underpin BW Product Services’ ability to support dividend distributions. Sørensen highlights that while ongoing macro uncertainties may introduce short-term volatility, disciplined execution and proactive hedging remain central pillars of BW LPG’s strategy.

Takeaway: Strong Core Execution but Volatility May Persist

The numbers from Q3 2025 reinforce that BW LPG’s core trading engine is producing value—even if the quarterly snapshot includes some turbulence from market-driven contract revaluations. Investors may want to keep an eye on the Q3 financial report set for release on December 2, 2025, for more details on how the realised gains are trending versus market volatility. For now, risk management discipline and focus on tangible gains remain the story’s throughline, making BW LPG’s trading model a case study in weathering shipping sector uncertainty.

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