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    Is BWG (OB:BWLPG) A Bargain Following The BW Levant Sale?

    Simply Wall St·07/22/2026 05:23:45
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    BWG (OB:BWLPG) has drawn fresh attention after BW LPG Limited announced the sale of the 2015 built BW Levant vessel. The deal is expected to generate a net book gain and additional net cash proceeds.

    See our latest analysis for BWG.

    Set against this vessel sale, BWG's recent momentum has been strong, with a 30 day share price return of 17.32% and year to date share price return of 64.45%. The 1 year total shareholder return sits at 76.02%, alongside a very large 5 year total shareholder return.

    If this kind of move has you looking at the wider energy shipping space, it could be a good moment to scan other opportunities across LPG, gas and related carriers using the 35 power grid technology and infrastructure stocks

    After BWG's sharp share price move and the BW Levant sale, the next step is to weigh whether that combination of cash generation and recent gains still leaves enough upside to justify the risk from here.

    Most Popular Narrative: 3% Undervalued

    On the latest figures, BWG last closed at NOK210, compared with a widely followed fair value estimate of NOK216.13. This puts the valuation slightly below that reference point and frames the recent share price strength against a modest discount.

    The company's recent acquisition of Avance Gas vessels has enhanced its position as a leading VLGC operator, which could improve fleet synergies, reduce costs, and positively impact net margins. The introduction of LPG dual fuel propulsion technology on a significant portion of the fleet may lead to cost savings and efficiency improvements, thereby enhancing net margins.

    Read the complete narrative.

    Want to see what kind of revenue reset, margin profile and future earnings multiple need to line up for that fair value to hold? The narrative lays out a detailed path, with specific assumptions on how BWG's earnings power could look several years from now and what that might justify in terms of valuation.

    Result: Fair Value of NOK216.13 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, BWG investors still need to watch for weaker VLGC spot rates and higher leverage, as either could pressure earnings and challenge this underpriced narrative.

    Find out about the key risks to this BWG narrative.

    Next Steps

    With mixed signals around BWG's upside and the risks flagged in the underpriced narrative, it makes sense to check the data directly and move quickly to form your own judgment. To see both sides in one place, review the 2 key rewards and 2 important warning signs

    Looking for more investment ideas beyond BWG?

    If you are serious about improving your portfolio, do not stop with BWG. Use focused stock lists to uncover opportunities that match your goals and risk tolerance.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.