Value-at-risk (VaR) estimates the largest loss an investment or portfolio is likely to suffer over a specific time frame at a given probability level — for example, the amount you would expect to lose or exceed only 5% of the time. Think of it like a weather forecast for losses: it gives a commonly agreed threshold for how bad things might get. Investors use VaR to set risk limits, compare portfolios, and decide how much capital to hold against potential losses.
mark-to-marketfinancial
"Mark-to-market" is a method of valuing assets or investments based on their current market price, rather than their original cost or value. It helps investors see the most up-to-date worth of their holdings, much like checking the latest price of a stock before deciding to buy or sell. This approach ensures that financial statements reflect real-time value, providing a clearer picture of overall financial health.
hedging transactionsfinancial
Hedging transactions are deliberate trades or contracts a company or investor uses to reduce the chance of losing money from price swings in things like stocks, currencies, commodities, or interest rates. Think of them as a form of insurance: they can limit downside risk but also cap potential gains and create costs, so investors watch hedging to understand a firm's true exposure, future cash needs, and how stable reported results may be.
arbitragefinancial
Arbitrage is the practice of buying an asset in one market where it is cheaper and simultaneously selling it in another where it is more expensive to lock in a nearly risk-free profit. Think of it like spotting a product on sale at one store and immediately selling it at full price at another — it helps correct price differences, tightens trading spreads, and can signal that markets are efficient. For investors, arbitrage opportunities can offer low-risk returns and influence short-term price moves and liquidity.
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SINGAPORE--(BUSINESS WIRE)--
BW LPG Limited (“BW LPG” or the “Company”, OSE ticker code: “BWLPG.OL”, NYSE ticker code: “BWLP”) today provides an update on its Product Services’ (“BW Product Services”) Q2 2026 segment performance.
Q2 2026 highlights:
Gross trading result: - USD 19 million
This includes:
USD 127 million realised trading gain
- USD 146 million unrealised mark-to-market change
Net result after general and administrative expenses and income taxes: - USD 31 million
Average Value-At-Risk (VAR): USD 17 million
The trading result will form part of the BW LPG Q2 2026 results, which will be released on 28 August 2026
Performance overview:
For the quarter ended 30 June 2026, BW Product Services achieved a realised trading gain of USD 127 million from our portfolio of cargo, freight and hedging transactions. After accounting for the negative change of unrealised mark-to-market valuation of USD 146 million from our open cargo contracts and hedging transactions, BW Product Services reported a gross trading result of approximately minus USD 19 million for the quarter.
After general and administrative expenses and income taxes, BW Product Services reported an estimated net result of approximately minus USD 31 million for the quarter.
The average Value-At-Risk (VAR) for the quarter was approximately USD 17 million. The increase in VAR is primarily driven by a surge in market volatility across our core product exposures.
Says Kristian Sørensen, Chief Executive Officer, “The Q2 trading environment was significantly impacted by continued geopolitical turbulence in the Middle East and considerable fluctuations in the LPG prices. Hence, I am very pleased to report a strong realisation of USD 127 million from our trading activities in Q2, which brings the combined Q1 and Q2 realised trading result to about USD 117 million. Since we ended Q1 with a record high valuation of our forward trading portfolio, a negative mark-to-market adjustment was expected as the US/ Asia LPG arbitrage narrowed towards the end of Q2. We remain committed to maintaining a well-balanced trading portfolio which remains firmly net positive thanks to active risk management by the BW Product Services team.”
About BW LPG
BW LPG is the world’s leading owner and operator of LPG vessels, with a fleet of about 50 Very Large Gas Carriers (VLGCs), including over 20 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 energy and maritime company involved in shipping, deepwater oil & gas production, renewable energy and digital infrastructure. BW controls a fleet of over 400 vessels transporting oil, gas and dry commodities. In the infrastructure space, the group operates in wind, batteries, water, subsea cable networks and data centres. www.bw-group.com
