On Sept. 2, BW LPG placed $300 million in 2.25% convertible bonds to help fund eight new very large gas carriers on order; conversion could dilute existing shareholders if shares rise above the $30.4870 conversion price. The bonds mature in 2031.
In Q2 2026, BW LPG reported $120 million in profit attributable to shareholders. Shipping rates averaged $74,000 per available day, and 92% of Q3 fleet days were locked in at about $88,000 a day. At quarter-end, liquidity was $773 million and net leverage 23.5%; the board paid out all shipping profit as a $0.95-per-share dividend. Panama Canal restrictions have sent more VLGCs around the Cape of Good Hope, tying up ships longer, while US LPG exports rose 16% in H1 amid buyers' shift away from the conflict-disrupted Middle East.
BW LPG set the conversion price 40% above the stock's recent placement level. Certain bond buyers arranged a concurrent short sale of existing shares to hedge; the company was not involved and received no proceeds. Its Product Services arm booked a $127 million realized gain but still reported a $31 million after-tax loss after a $145 million non-cash mark-to-market swing. The VLGC orderbook totals 155 vessels, 35% of the existing fleet, with deliveries through 2030; BW LPG says a full Strait of Hormuz reopening could narrow the US–Far East LPG price gap and reduce ton-mile demand.
