Singapore-headquartered gas shipping company BW LPG ended the third quarter of 2015 with USD 106.2 million net profit, a 21.4% increase compared to USD 87.5 million reported for the same period a year earlier, driven mainly by improved time charter equivalent (TCE) earnings and a bigger operating fleet.
Operating revenue for the quarter ended September 30 was USD 223.8 million, 5.9% better compared to USD 211.4 million recorded in Q3 2014.
TCE income increased by 15.1%, to USD 181.7 million from USD 159.2 million, mainly attributable to improved TCE earnings, increased fleet size, especially in the VLGC segment, and lower bunker costs. These factors resulted in an increase in TCE income of USD 13.6 million and USD 8.9 million in the VLGC and LGC segments, respectively.
The newbuilding BW Libra was deployed in the company’s contract portfolio upon her delivery on August 31, while the newbuilding carrier BW Leo, delivered in April 2015, started to generate full quarter earnings in Q3 2015.
In the first nine months of 2015, the company’s net profit stood at USD 244.1 million, 28% up on USD 190.7 million for the first three quarters of 2014. The overall increase in net profit was again attributed to improved TCE earnings, the addition of four new LPG carriers, and lower bunker costs.
Looking ahead, BW LPG ”expects heightened volatility in 2016 due to the combined effects of a heavier vessel delivery schedule, sharp growth in export capacity, and the more pronounced interrelationship of energy prices, production and demand growth.”