Arctic: Shipping Daily - Tankers, WAWI, Dorian LPG

Research evidence excerpt

Arctic: Shipping Daily - Tankers, WAWI, Dorian LPG

WAWI: Extends shipping contract from mid '28

Wallenius Wilhelmsen has agreed an early three-year extension of a shipping contract with a

leading European auto manufacturer, running from mid-2028 to mid-2031. The extension has an

estimated value of around USD 420m, on top of around USD 180m of remaining initial value,

and covers continued outbound supply-chain support with potential logistics scope over time.

The award is final, but the value is based on forecast volumes, the customer is unnamed, and

geography is not specified beyond the European OEM relationship. The company describes the

contract as providing earnings visibility at sustainable rate levels for the next five years, with low-

emission fuels included. Latest reported shipping backlog was USD 7.0bn with a 3.2-year volume-

weighted duration, so the extension mainly adds long-dated revenue visibility rather than near-

term utilization support (to USD ~7.4bn). We expect a modest positive share reaction because the

extension validates long-dated OEM demand and rate sustainability into 2031, but it should not

materially change near-term estimates. The straight-line annualized revenue proxy is USD 140m,

equal to 2.8% of our 2028e group revenue and 3.7% of 2028e shipping revenue.

Dorian LPG: 1x newbuild, 3x divestments and Q2 guidance

Yesterday, Dorian announced that it has entered into an agreement with HD Hyundai for the

construction of 1x 90k cbm VLGC with delivery set for July '29 for a price of USD ~115m. The

design seems to be similar to what BW LPG ordered (8x 90k cbm with '29 and '30 delivery for

USD 117.5m apiece). Furthermore, the company is selling 3x vessels (1x '14 blt, 2x '15 blt) for

USD ~256m in total.