BW LPG Limited Secures Three-Year Time Charter-Out Contracts for Two VLGCs

Key Terms

time charter-out financial

A time charter-out is a contract in which a shipowner leases a vessel to another party for a fixed period, while the owner continues to operate and crew the ship. Like renting a car for a set number of months, the charterer pays a regular fee and controls where the ship goes, giving the owner steady income and predictable utilization; for investors this affects revenue visibility, exposure to spot market swings, and fleet cash flow.

fleet capacity technical

Total fleet capacity is the number and combined carrying or operational ability of a company’s vehicles, ships, aircraft, or other transport assets that it can deploy to move goods, people, or provide services. Investors care because it limits how much business the company can do, affects revenue potential and costs, and signals growth or constraint—like how the number of tables in a restaurant sets how many customers it can serve each night.

SINGAPORE--(BUSINESS WIRE)-- BW LPG Limited (“BW LPG” or the “Company”, OSE ticker code: “BWLPG.OL”, NYSE ticker code: “BWLP”) is pleased to announce that it has entered into three-year time charter-out contracts for two of its VLGCs, BW Tucana and BW Yushi. The period charters commenced in January 2026, increasing the fixed-rate time charter-out coverage to approximately 35% of the fleet capacity with an average rate of about USD 43,500 per day for 2026. Due to ongoing negotiations regarding the renewal of current time charters, the coverage level and average hire rates are subject to change prior to the Q4 2025 earnings release.

Kristian Sørensen, Chief Executive Officer, commented: “We are pleased to have secured two additional three-year time charters at solid levels, consistent with our communicated strategy of increasing coverage to approximately 40% of our fleet capacity through period charters and/or FFAs. BW LPG continues to strengthen its commercial platform with improved earnings visibility and robust downside protection while maintaining considerable spot exposure to a growing VLGC market.”

About BW LPG

BW LPG is the world’s leading owner and operator of LPG vessels, with a fleet of more than 50 Very Large Gas Carriers (VLGCs), including 22 vessels powered by LPG dual-fuel propulsion technology. Building on over five decades of LPG shipping experience, the company is strengthened by an in-house LPG trading division and the commercial expertise to explore investments in value chain assets. Together, these capabilities enable BW LPG to provide trusted and reliable services for sourcing and delivering LPG to customers worldwide.

Delivering energy for a better world – more information about BW LPG can be found at www.bwlpg.com

BW LPG is associated with BW Group, a leading global maritime company involved in shipping, floating infrastructure, deepwater oil & gas production, and new sustainable technologies. Founded in 1955 by Sir YK Pao, BW controls a fleet of over 450 vessels transporting oil, gas and dry commodities, with its 200 LNG and LPG ships constituting the largest gas fleet in the world. In the renewables space, the group has investments in solar, wind, batteries, and water treatment.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260208658037/en/

For further information, please contact:

Kristian Sørensen

Chief Executive Officer

Samantha Xu

Chief Financial Officer

E-mail: investor.relations@bwlpg.com

Source: BW LPG Limited