Similarly, the firm’s net revenue decreased to USD 407 million in 2016 from a net revenue of USD 626.5 million seen in 2015.
The decline in the firm’s net revenue was attributed to voyage expenses losses.
Very large gas carrier (VLGC) time charter equivalent (TCE) daily earnings stood at USD 27,100, while liquefied gas carrier (LGC) TCE earnings amounted to USD 23,400.
In addition, the gas carrier owner recorded a contract coverage of 50%.
In December 2016, the BW LPG completed the acquisition of Aurora LPG, adding nine VLGCs with an average age of three years to its fleet.
Additionally, the firm took delivery of six newbuildings and sold three vessels last year.
In its outlook for 2017, BW LPG expects VLGC contract coverage to be 24%-31%, depending on contracts of affreightment (CoA) uptake.
Furthermore, the firm has forecast that freight rates will remain at low levels. However, BW LPG said that freight rates are still responsive to improvements in geographic LPG price spreads and will be supported by minimal fleet growth and recovering US LPG production post-2017.
As of February 2017, the company’s fleet is comprised of 40 owned and 9 chartered VLGCs as well as of 4 owned LGCs. In addition, BW LPG has 2 VLGC newbuildings on order.