Brief: BW LPG Q3 net loss shrinks to $2.8 mln, cautiously optimistic for 2019

BW LPG

21/11/2018 10:58

Nov 21 (Reuters) - BW LPG Ltd  BWLPG.OL :
    * BW LPG LTD Q3 EBITDA $35.0  MILLION  VERSUS $18.1 MILLION
    * BW LPG LTD Q3 NET LOSS $2.8  MILLION  VERSUS LOSS $26.7
    * IMPROVEMENT MAINLY DUE TO THE RECOVERY IN LPG SPOT
EARNINGS,
HIGHER FLEET UTILISATION AND LOWER OPERATING EXPENSES ARISING
FROM A SMALLER FLEET SIZE
    * BW LPG SAYS WE REMAIN CAUTIOUSLY OPTIMISTIC FOR THE FULL
YEAR
2019 DUE TO SUSTAINED U.S. LPG PRODUCTION GROWTH AND INCREMENTAL
EXPORT VOLUMES BEING ADDED FROM OTHER KEY LOADING AREAS SUCH AS
AUSTRALIA AND U.S. EAST COAST
    * BW LPG SAYS CONTRACT COVERAGE IS 15% FOR Q4 2018 AND 8%
FOR 2019
    * BW LPG SAYS WE HAVE A NEUTRAL VIEW ON MIDDLE EAST EXPORTS
AS
INCREMENTAL REGIONAL GROWTH IS EXPECTED TO COMPENSATE FOR THE
EFFECTS FROM THE RE-IMPOSED SANCTIONS ON IRAN
    * BW LPG SAYS LOOKING INTO 2019 WE EXPECT FRONT END LOADED
NEWBUILD DELIVERIES TO COINCIDE WITH THE NORMAL SEASONAL
WEAKNESS, WHICH MAY IMPOSE PRESSURE ON THE GEOGRAPHICAL LPG
PRICE SPREADS
    * BW LPG SAYS LONGER TERM WE MAINTAIN OUR VIEW THAT
SUSTAINED U.S.
LPG PRODUCTION GROWTH AND NO FURTHER NEW BUILD ORDERS REMAIN KEY
TO BALANCING THE VLGC MARKET

Source text for Eikon:  urn:newsml:reuters.com:*:nNDL33L4Mb
Further company coverage:  BWLPG.OL 

 (Reporting By Ole Petter Skonnord)
 ((olepetter.skonnord@thomsonreuters.com;))