Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 8 Jan, 26 | BWLP | Buy | USD 13.63 | USD 14.4 | USD 15.2 | 19 days | Closed |
11.96%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
BW LPG Limited, an investment holding company, engages in ship owning and chartering activities worldwide. It operates through Shipping and Product Services segments. The company engages in the transportation of liquefied petroleum gas (LPG); provision of integrated LPG delivery services, as well as management services; wholesale and trade of LPG; and investment in commercial enterprises. As of December 31, 2025, it owned and operated a fleet of 54 vessels, including 28 very large gas carriers, 7 large gas carriers time chartered in by product services, and 8 VLGCs owned by BW LPG India Pte. Ltd. BW LPG Limited was formerly known as BW Gas LPG Holding Limited and changed its name to BW LPG Limited in September 2013. The company was founded in 1935 and is headquartered in Singapore.
Strengthening Balance Sheet and Lower Leverage: Between end-FY2024 and Q3 FY2025, BW LPG reduced its net leverage ratio from 32.7% (FY2024) to 29.7% (Q3 FY2025)
Structural Improvement in Cash Breakeven: From FY2024 to FY2025, the company improved its operating cash breakeven for the total fleet from USD 22,200 per day (FY2024) to USD 21,300 per day (FY2025)
Product Services Loss Impacting Earnings: In Q3 FY2025, BW LPG’s Product Services segment reported a net loss after tax of USD 29 million
Increased Operational Downtime from Dry Docking: During Q3 FY2025, the company recorded 168 off-hire days due to an intensive dry-docking schedule
BW LPG remains exposed to earnings volatility from freight rate cyclicality and mark-to-market losses in its Product Services trading division, particularly during periods of geopolitical disruption and commodity price dislocations
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 13.63 | 12.2 | 14.4 | 15.2 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
Resilient Shipping Earnings Amid Market Volatility: BW LPG delivered resilient financial performance in Q3 FY2025 despite heightened volatility driven by geopolitical disruptions and trade-related dislocations in global LPG markets. The company reported a net profit after tax of USD 57 million for the quarter, translating into earnings per share of USD 0.38, supported primarily by strong shipping earnings and disciplined cost management. Fleet utilisation remained solid at 92%, reflecting effective operational execution even amid increased waiting time and repositioning inefficiencies.
Stable Time Charter Coverage Supporting Cash Flows: The company’s shipping segment generated a TCE income of USD 51,300 per available day and USD 48,700 per calendar day, supported by a balanced chartering strategy. Approximately 44% of available days were covered under time charters during the quarter, providing earnings stability as spot market activity weakened temporarily. This strategy helped cushion the impact of limited fixing activity observed during parts of the quarter.
Product Services Impacted by Mark-to-Market Losses: BW LPG’s Product Services division recorded a gross loss of USD 23 million and a net loss after tax of USD 29 million in Q3 FY2025, driven primarily by negative mark-to-market adjustments on cargo and paper positions following a sharp decline in Middle Eastern LPG contract prices. Importantly, the division still generated USD 15 million in realised trading gains, underscoring the distinction between accounting volatility and underlying cash generation.
Dividend Distribution Reflecting Earnings Strength: In line with its shareholder return policy, the Board declared a cash dividend of USD 0.40 per share, representing 75% of shipping net profit after tax for the quarter. The dividend equates to an annualised dividend yield of approximately 13%, highlighting BW LPG’s strong cash flow generation and commitment to capital returns.
Improved Cost Structure and Cash Breakeven: Operational efficiency continued to improve, with FY2025 operating cash breakeven for the total fleet reduced to USD 21,300 per day, compared with USD 22,200 per day in 2024, reflecting disciplined financing, fewer time-charter-in vessels, and lower G&A costs. Including dry-docking, all-in cash breakeven stood at USD 24,600 per day, well below prevailing charter rates
Strengthened Balance Sheet and Liquidity Position: BW LPG ended Q3 FY2025 with a robust liquidity position of USD 855 million, comprising USD 276 million in cash and USD 579 million in undrawn revolving credit facilities. Net leverage declined to 29.7%, down from 32.7% at end-2024, supported by lower lease liabilities and proactive refinancing actions, including the voluntary termination of two financing facilities.
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on BW LPG Limited (NYSE: BWLP) at the current market price of USD 13.63, as on Jan 08,2026 at 7:16 am PST.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industrials Industry: Marine Shipping
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| BWLP BW LPG Limited |
-0.66 3.52% | 18.10 | 11.36 | 6.37 | 0.77 | 1.54 | 0.98 | 5.74 |
| AMKAF AP Moeller - Maersk A/S A |
0.001 -% | 2382.79 | 13.59 | 2500.00 | 0.66 | 0.63 | 0.79 | 3.81 |
| AMKBY AP Moeller-Maersk AS |
- -% | 11.72 | 13.25 | 2500.00 | 0.65 | 0.63 | 0.80 | 3.88 |
| AMKBF A.P. Møller - Mærsk A/S |
- -% | 2676.05 | 12.94 | 2500.00 | 0.63 | 0.60 | 0.79 | 3.81 |
| CICOY COSCO SHIPPING Holdings Co Ltd ADR |
-0.002 0.02% | 8.55 | 6.61 | 5.81 | 0.15 | 0.85 | 0.65 | 3.18 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels as on January 8, 2026. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned has been achieved and is subject to the factors discussed above.
Note 4: StockNextt reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
This report has been issued by StockNextt which has an Ontario Business Identification Number 1000958347 and British Columbia registration Number FM1051529 is a trade name under Kalkine Canada Advisory Services Inc. having Business Number 761925130BC0001. Kalkine Canada Advisory Services Inc. and StockNextt are collectively referred to as “StockNextt”, “we”, “us”, and “our”. The website https://stocknextt.com and associated pages are published by StockNextt. The information in this report and on the StockNextt website has been prepared from a wide variety of sources, which StockNextt, to the best of its knowledge and belief, considers accurate. StcokNextt has made every effort to ensure the reliability of information contained in its reports, newsletters, and websites. All information represents our views at the date of publication and may change without notice. The information in this report does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products. Our reports contain general recommendations for investing in securities and other financial products. StockNextt does not offer financial advice based upon your personal financial situation or goals, and we shall not be held liable for any investment or trading losses you may incur by using the opinions expressed in our reports, publications, market updates, news alerts and corporate profiles. StockNextt does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. StockNextt’s general advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested. Please also read our Terms and conditions for further information. Employees and/or associates of StockNextt and its related entities may hold an interest in the securities or other financial products covered in this report or on the StockNextt website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.
Copyright © 2026 Krish Capital Pty Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.
Australia