BW Product Services makes estimated $14 million Q4 gross profit

BW LPG provided an update on its Product Services’ Q4 2024 segment performance.

For the quarter ending 31 December 2024, BW Product Services reported an estimated gross profit of approximately USD 14 million. This gross profit primarily stems from a USD 58 million gain from realised trading positions, which was partially offset by an unrealised negative movement of USD 44 million due to the change in mark-to-market value of our open cargo contracts and hedging transactions.

After general and administrative expenses and income taxes, BW Product Services reported an estimated net profit of approximately USD 3 million for the quarter. The reported net profit includes accruals for personnel costs which may change subject to board approvals.

The average Value-At-Risk (VAR) for the quarter was approximately USD 7 million.

BW LPG will release its Q4 2024 financial report on 27 February 2025.

Says Kristian Sørensen, Chief Executive Officer, “We are pleased to report a strong finish to fiscal year 2024 for our Product Services segment, highlighted by the successful realisation of USD 58 million from completed cargo deliveries and trades in the fourth quarter. This elevates our total realised gains from Product Services for the year to approximately USD 93 million, with free cash exceeding USD 100 million at year-end. As we transition into fiscal year 2025, we remain committed to maintaining a well-balanced trading portfolio and are poised to increase cargo volumes through our previously announced multi-year contract with Enterprise Products Partners.”