BW Gas Reports Drop in Q1 Operating Profit

Norwegian gas shipping firm BW Gas reported an operating profit of $31 million in the first quarter of 2008, compared to $46.4 million in the same period of 2007.

BW Gas’s first-quarter operating profit, before depreciation and disposals, of $45.1 million for 2008, compared to $66.4 million in the first quarter of 2007. Gain on the sale of vessels amounted to $12.6 million, compared to $6.5 million in the first quarter of 2007.

The gas shipping company noted that the first quarter of 2008 showed declining freight rates for all liquefied petroleum gas (LPG) segments, in particular the very large gas carrier (VLGC) segment. The operating profit in the LPG segment amounted to $10.7 million in the first quarter of 2008, compared to $27.7 million in the first quarter of 2007.

Operating expenses increased by $4.5 million from $54.1 in the first quarter of 2007 to $58.6 million in the first quarter of 2008, mainly due to the effects of the depreciation of the dollar against the Norwegian krone (NOK), higher manning expenses and unscheduled repairs being carried out on one VLGC.

Loss before tax amounted to $47.8 million in the first quarter of 2008, compared to a profit of $28.3 million in the first quarter of 2007. Net loss was $66.9 million in the first quarter of 2008, compared to a net profit of $20.7 million in the first quarter of 2007.