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BWLPG: Dividend Payouts Will Drive Attractive Future Shareholder Returns

BWLPG: Earnings Stability And Dividend Will Support Shares In Coming Months

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BWLPG
AnalystConsensusTarget
Not Invested
Published 12 Feb 2025

Update shared on 14 Dec 2025

Fair value Decreased 11%
Previous
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AnalystConsensusTarget's Fair Value
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1Y
2.8%
7D
-2.8%

Analysts have reduced their price target for BWG by approximately $18 per share. This reflects slightly higher discount rate assumptions, a more cautious view on revenue growth, and meaningfully lower long term profit margin expectations, partly offset by a higher anticipated future P/E multiple.

What's in the News

  • Board approves a third quarter 2025 cash dividend of USD 0.40 per share for BW LPG Limited, reflecting continued strong cash generation (Key Developments)
  • For shares registered with Euronext VPS, the approved dividend corresponds to NOK 4.0474 per share, providing clarity on local currency payouts for Norwegian investors (Key Developments)
  • Key dividend dates announced, including last trading day with dividend rights on 10 December 2025, ex date on 11 December 2025, record date on 12 December 2025, and expected payment on or about 22 December 2025 (Key Developments)

Valuation Changes

  • Fair Value Estimate: reduced meaningfully from NOK 163.88 per share to NOK 146.04 per share, a decrease of roughly 11 percent.
  • Discount Rate: edged down slightly from 6.63 percent to 6.60 percent, reflecting a marginally lower required return.
  • Revenue Growth: projected decline has deepened modestly, with the long term growth rate moving from approximately minus 59.15 percent to minus 60.10 percent.
  • Net Profit Margin: lowered significantly from about 85.59 percent to 65.38 percent, indicating more conservative profitability expectations.
  • Future P/E: the expected valuation multiple has risen from 14.14x to 17.07x, which implies a higher anticipated earnings multiple despite weaker fundamentals.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.