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In this piece, we will take a look at the top ten LPG shipping companies in the world. If you want to skip our industry introduction and jump ahead to the top five firms in the list, then take a look at Top 5 LPG Shipping Companies in the World.
The Russian invasion of Ukraine and the resulting crisis in energy markets have led to a shortage of oil in the market. With winters on the horizon, Europe and other regions in the world are shifting towards alternative fuel sources. Additionally, the demand for non-Russian oil has also grown, particularly from Europe which has tried to reduce its dependence on Russian products due to the ongoing war.
Against this backdrop, the shipping industry is one sector that has managed to withstand the broader market bloodbaths that have ended up decimating investment portfolios and a host of different firms. For LPG, the fuel is shipped in specialized vessels and the sector is primed for growth. These vessels are characterized as very large, large, medium, and small gas carriers, and they also come with varying levels of pressure and temperature control. A research report from Straits Research estimates that the sector was worth $182 million last year and it will grow at a compounded annual growth rate (CAGR) of 5% by the end of this year to 2030 for a final value of $286 million by the end of the forecast period.
The research firm believes that the growth in fracking and increasing partnerships between the U.S., India, and Japan will drive this growth as LPG will need to be transported over great distances. Still, Europe accounted for the largest market share of $52 million in 2021, with Asia Pacific coming in second place. In terms of capacity and ship type, the very large gas carrier is the most popular, and it is expected to grow at a 7% CAGR between 2021 and 2030, to be worth $77 million by 2030 end.
Grand View Research also has a similar 5% CAGR for the LPG tanker market for the time period between 2022 and 2030, with the estimated final value of the segment pegged at $287 million. It also outlines that the Very Large tanker segment is the largest, and Europe was the busiest region even in 2021 before the war-induced energy crises hit.
Today's piece will take a look at the top firms in the crucial industry, and it consists of names such as Qatar Gas Transport Company Limited (Nakilat) (QPSC) (QGTS.QA), Teekay Corporation (NYSE:TK), and BW LPG Limited (OTCMKTS:BWLLF). You can also check out the 10 best LNG Shipping Stocks To Buy here.
Oleksandr Kalinichenko / Shutterstock.com
Our Methodology
We took a broad look at the LPG tanker market and determined which firms have strong business models and financial performance, and are in tune with market dynamics. The companies are primarily ranked according to their revenue, however, for those important firms that do not share their financials but are a major part of the industry, other details have been considered.
Top 10 LPG Shipping Companies in the World
10. Kuwait Oil Tanker Co. S.A.K.
Revenue as of 2021: N/A
The Kuwait Oil Tanker Co. S.A.K. is a subsidiary of the Kuwait Petroleum Corporation. It is the shipping arm of its parent company and is headquartered in Kuwait City, Kuwait.
Kuwait Petroleum Corporation is one of the largest oil companies in the world, and it is responsible for 7% of the world's crude oil production. The shipping arm, Kuwait Oil Tanker Co. S.A.K., was set up in 1964, and it transports crude oil, refined petroleum products, and LPG. The company has a fleet of 31 vessels, out of which five are LPG carriers with a combined carrying capacity of 82,516 meters cube of gas. Kuwait Oil Tanker Co. S.A.K.'s newest LPG vessel is the Gas Umm Al Rowaisat, which was delivered in 2020 and has a capacity of 82,516 meters cube. Additionally, Kuwait Oil Tanker Co. S.A.K. also owns two LPG filling plants.
Kuwait Petroleum Corporation joins our list of the world's biggest LPG carriers, alongside other top players such as Teekay Corporation (NYSE:TK), Qatar Gas Transport Company Limited (Nakilat) (QPSC) (QGTS.QA), and BW LPG Limited (OTCMKTS:BWLLF).
9. Petredec Pte Limited
Revenue as of 2021: N/A
Petredec Pte Limited is one of the largest LPG shipping companies in the world. The firm has a global presence through offices in Singapore, Houston, London, South Africa, and other cities and countries.
Petredec Pte Limited has at least 38 LPG shipping vessels in its portfolio. The firm has been reorganizing its business as of late, and its Petredec Global arm commands 27 very large gas carriers (VLGCs). These are the largest LPG ships of their kind and the most popular in the market. This division is also the world's second largest LPG carrier operator, and Petredec Pte Limited is aiming to list its shares on the public stock market. Should this materialize, then Petredec Global will become the world's first pure play LPG shipper that is also publicly traded.
Petredec Pte Limited's other shipping division, Fortitude Shipping Ltd is based in London. This arm owns 11 handy LPG carriers for 22,500 cubic meters of capacity. Out of these, three are semi refrigerated vessels.
8. EXMAR Shipping
Revenue as of 2021: $138 million
EXMAR Shipping is a Belgian shipping company that was set up in 1991. It is a wholly owned associate of Exmar NV (EXM.BR), which is a global energy and supply chain solutions provider. The firm provides shipping, infrastructure, and ship management services.
Exmar NV (EXM.BR) earned $138 million in revenue in 2021 from its shipping division. This division operates through a large fleet of vessels, which are dedicated solely to shipping LPG. The ships range from a capacity of 3,500 meters cube to 88,000 meters cube, and Exmar NV (EXM.BR) is one of the world's largest midsize LPG and ammonia shipment companies. Its vessel fleet is made up of three very large gas carriers (VLGCs), 19 midsized LPG carriers, and 10 fully pressurized carriers. The VLGCs were fully booked as of May 2022, while the others had an average charter coverage of 78%. More importantly, two out of the three VLGCs are new vessels, which leads to greater fuel efficiency and a longer turnover time for the vessels and lower capital and maintenance expenditure in the near term.
Exmar NV (EXM.BR)'s combined revenue for 2021 stood at $247 million, which marked a drop over 2020. The firm has also undertaken different projects to make its operations more climate friendly. It is aiming to reduce its average carbon dioxide emissions per transport by 40% 2030 and by 70% by 2050.
7. StealthGas Inc. (NASDAQ:GASS)
Revenue as of 2021: $150 million
StealthGas Inc. (NASDAQ:GASS) is a maritime shipping company that focuses its attention on the energy sector. The firm transports refined petroleum products such as diesel, petroleum, jet fuel, and fuel oil. Additionally, it is also a specialty LPG carrier, as its ships are capable of transporting a host of LPG gasses such as butane, propane, propylene, and isopropane. StealthGas Inc. (NASDAQ:GASS)'s fleet consists of 44 LPG carriers, making it one of the largest of its kind in the world. These have a capacity of 389,426 cubic meters. The firm is headquartered in Athens, Greece.
StealthGas Inc. (NASDAQ:GASS)'s fiscal year 2021 revenues stood at $150 million. These marked a $5 million growth over 2020, and the firm's net income was a loss last year as its dry docking costs and operational costs both jumped. However, the firm reversed this during the first half of this year, with its June 2022 financial results showing a net income of $19.8 million - marking a 900% annual jump. This has been aided by StealthGas Inc. (NASDAQ:GASS) being a LPG carrier, and the firm is further expected to post 100% net income growth by the end of this year.
Matthew Barrett's Glendon Capital Management is StealthGas Inc. (NASDAQ:GASS)'s largest investor. It has an $18.9 million stake that comes courtesy of 5.9 million shares.
6. SOLVANG ASA (SOLV-DNM.OL)
Revenue as of 2021: $231 million
SOLVANG ASA (SOLV-DNM.OL) is one of the oldest LPG shipping companies in the world. The firm was set up in 1936 and it is headquartered in Stavanger, Rogaland, Norway. Its ships serve ports located all over the globe, from Europe to Asia, and North and South America.
SOLVANG ASA (SOLV-DNM.OL) has a fleet of 26 vessels, out of which seven are very large gas carriers, nine are large gas carriers, one is a mid sized carrier, and eight are temperature-controlled carriers. Cumulatively, these give the firm a 953,998 DWT of tonnage, and its ships traveled 99 times around the world in 2021. SOLVANG ASA (SOLV-DNM.OL) 2021 revenue was $231 million, which marked a small annual drop due to rising costs.
Additionally, SOLVANG ASA (SOLV-DNM.OL) is also one of the few LPG carriers in the world that is testing solutions to replace traditional fuel oils with green fuels for its fleet. The firm aims to install a carbon recapturing system on its ship engine exhausts, which will be the first time that such a system will be used with a ship engine.
Qatar Gas Transport Company Limited (Nakilat) (QPSC) (QGTS.QA), Teekay Corporation (NYSE:TK), and BW LPG Limited (OTCMKTS:BWLLF) are met by SOLVANG ASA (SOLV-DNM.OL) in the list of the top LPG shipping companies in the world.
Click to continue reading and see Top 5 LPG Shipping Companies in the World.
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Disclosure: None. Top 10 LPG Shipping Companies in the World is originally published on Insider Monkey.
