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1. Company Snapshot

1.a. Company Description

Dorian LPG Ltd., together with its subsidiaries, engages in the transportation of liquefied petroleum gas (LPG) through its LPG tankers worldwide.The company owns and operates very large gas carriers (VLGCs).As of May 27, 2022, its fleet consisted of twenty-two VLGCs. The company was incorporated in 2013 and is headquartered in Stamford, Connecticut.

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1.b. Last Insights on LPG

Dorian LPG Ltd.'s recent performance was driven by improving fundamentals, a strong financial position, and potential dividend growth. The company's substantial cash reserves and manageable debt support potential dividend growth, with a likely increase to $0.7 per share next quarter. A recovery in shipping rates and limited 2025 vessel deliveries could drive earnings and push the stock toward a $28 fair value. Additionally, the company's Q1 2025 results showcased strong operational performance, aggressive fleet expansion, and a 10% dividend yield, signaling confidence and growth.

1.c. Company Highlights

2. Dorian LPG's Q2 2026 Earnings: A Strong Performance

Dorian LPG's financial performance in Q2 2026 was robust, driven by a strong VLGC market. The company achieved TCE revenue per available day of $53,725, resulting in adjusted EBITDA of $85.7 million for the quarter. However, EPS came in at $1.31, slightly below estimates of $1.45. The company's free cash flow to equity was over $30 million, demonstrating its ability to generate cash. The VLGC market's improvement was driven by record global seaborne LPG liftings, underpinned by record quarterly exports from North America and Saudi Arabia.

Publication Date: Nov -23

📋 Highlights
  • Dividend Commitment:: Declared $0.65/share ($27.8M total), with $695M+ distributed in dividends and $925M+ total capital returned to shareholders since inception.
  • VLGC Market Recovery:: Baltic Index averaged $68,000/day (Q3), up from $48,000 (Q2) and $33,000 (Q1), driven by record global LPG liftings of 37.21M tons.
  • Financial Performance:: Achieved TCE revenue of $53,725/day, $85.7M adjusted EBITDA, and $30M+ free cash flow in Q2 2026.
  • Future Rate Guidance:: 75% of fixable days in Q4 2025 secured at ~$57,000/day TCE, with OpEx down 6% to $9,474/day (excluding dry docking).
  • Operational Efficiency:: Scrubber savings of $1.363M ($1,140/day/vessel) in Q2, operating 16 scrubber-fitted and 5 dual-fuel LPG vessels.

Market Fundamentals and Outlook

The VLGC market fundamentals remained firm through the quarter, with a high inventory build in the United States keeping Belvieu prices attractive for Far East importers and supporting the West to East arbitrage. U.S. monthly exports of LPG were in the 4.6 million to 5.1 million tons per month range, an improvement on the quarter prior. Looking ahead, the company has fixed just over 75% of the fixable days in the quarter ending December 31, 2025, at a TCE of about $57,000 per day. According to John Hadjipateras, the recent move in spot rates can be attributed to the wait-and-see approach before the U.S. and China met in Korea, and the postponement of port fees has provided some relief.

Valuation and Dividend Policy

With a P/E Ratio of 21.76 and an EV/EBITDA of 9.74, the market is pricing in a certain level of growth, which is expected to be around 19.3% in terms of revenue growth next year. The company's dividend yield is 9.83%, reflecting its commitment to returning capital to shareholders. Dorian LPG has returned approximately $695 million in dividends to shareholders and cumulatively, including share buybacks and open market tender offers, over $925 million. The company's dividend policy aims to maintain a steady balance between dividends, deleveraging, and fleet investment.

Operational Efficiency

The company's operational efficiency is reflected in its daily OpEx, which was $9,474, excluding dry docking-related expenses, down over 6% from the prior quarter's $10,108. The company's scrubber vessel savings for the second fiscal quarter of '26 amounted to $1,363,000 or about $1,140 per calendar day per vessel, net of all scrubber operating expenses. With 16 scrubber-fitted vessels and 5 dual-fuel LPG vessels, the company is well-positioned to benefit from its energy-efficient fleet.

3. NewsRoom

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BW LPG Limited – Financial Results for Q3 2025

Dec -02

Source: businesswire.com

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Geode Capital Management LLC Has $27.12 Million Stock Holdings in Dorian LPG Ltd. $LPG

Nov -29

Source: defenseworld.net

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Dorian LPG Ltd. (LPG) Q2 2026 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Vopak reports strong performance, driven by a resilient portfolio

Nov -05

Source: globenewswire.com

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BW LPG Could Support A Double-Digit Yield Even With Rates Under Pressure

Oct -10

Source: seekingalpha.com

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Dorian LPG (LPG) Stock Drops Despite Market Gains: Important Facts to Note

Oct -06

Source: zacks.com

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Dorian LPG: Strong Balance Sheet, Variable Dividends, Undervalued NAV

Oct -01

Source: seekingalpha.com

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Dorian LPG (LPG) Stock Drops Despite Market Gains: Important Facts to Note

Sep -29

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Net Pool

Expected Growth: 4.5%

Growing demand for LPG as a cleaner energy source, increasing global trade, and the need for efficient logistics solutions drive the growth of the spot market-based freight trading platform.

Time Charter

Expected Growth: 4.5%

The time charter market is driven by increasing demand for liquefied petroleum gas (LPG) transportation, growth in the global energy market, and a rise in the number of long-term charter agreements. Additionally, Dorian LPG Ltd.'s modern fleet and operational efficiency will support the growth of the time charter segment.

Other

Expected Growth: 4.5%

The 'Other' segment of Dorian LPG Ltd. is expected to grow driven by increasing operating and management fees, and other income streams. The growth is also attributed to the company's diversified revenue streams and cost-saving initiatives.

7. Detailed Products

LPG Shipping

Dorian LPG Ltd. provides LPG shipping services, transporting liquefied petroleum gas (LPG) globally, connecting producers and consumers.

LPG Trading

The company engages in the trading of LPG, sourcing from refineries and selling to customers, including wholesalers, distributors, and end-users.

Vessel Management

Dorian LPG Ltd. offers vessel management services, overseeing the operation and maintenance of its fleet of LPG carriers.

Chartering

The company provides chartering services, leasing its vessels to third-party customers for the transportation of LPG.

8. Dorian LPG Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Dorian LPG Ltd. is medium due to the availability of alternative energy sources such as wind and solar power.

Bargaining Power Of Customers

The bargaining power of customers for Dorian LPG Ltd. is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Dorian LPG Ltd. is medium due to the presence of multiple suppliers and moderate switching costs.

Threat Of New Entrants

The threat of new entrants for Dorian LPG Ltd. is low due to the high barriers to entry in the liquefied petroleum gas shipping industry.

Intensity Of Rivalry

The intensity of rivalry for Dorian LPG Ltd. is high due to the competitive nature of the industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.38%
Debt Cost 3.95%
Equity Weight 61.62%
Equity Cost 9.90%
WACC 7.61%
Leverage 62.29%

11. Quality Control: Dorian LPG Ltd. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Delek Logistics Partners

A-Score: 6.4/10

Value: 4.9

Growth: 3.0

Quality: 4.6

Yield: 10.0

Momentum: 7.5

Volatility: 8.7

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Global Partners

A-Score: 6.0/10

Value: 6.9

Growth: 3.9

Quality: 3.1

Yield: 10.0

Momentum: 5.0

Volatility: 7.0

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Genesis Energy

A-Score: 5.8/10

Value: 7.0

Growth: 3.4

Quality: 1.5

Yield: 9.0

Momentum: 7.5

Volatility: 6.3

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Dorian LPG

A-Score: 5.7/10

Value: 5.2

Growth: 6.8

Quality: 5.5

Yield: 10.0

Momentum: 2.5

Volatility: 4.3

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NGL Energy Partners

A-Score: 4.7/10

Value: 7.6

Growth: 3.6

Quality: 5.0

Yield: 0.0

Momentum: 9.0

Volatility: 3.0

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Overseas Shipholding Group

A-Score: 4.2/10

Value: 6.6

Growth: 5.9

Quality: 5.3

Yield: 0.0

Momentum: 5.0

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.96$

Current Price

24.96$

Potential

-0.00%

Expected Cash-Flows