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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 Amidst a Recovering VLGC Market

Dorian LPG reported a robust financial performance in the second quarter of 2026, with TCE revenue per available day reaching $53,725 and free cash flow to equity exceeding $30 million. The company's adjusted EBITDA for the quarter was $85.7 million, while total cash interest expense was $7 million. Earnings per share (EPS) came in at $1.31, slightly below estimates of $1.45. The company's operating expenses were well-managed, with daily OpEx decreasing by over 6% from the prior quarter to $9,474.

Publication Date: Dec -21

📋 Highlights
  • Dividend & Capital Return:: Declared $0.65/share dividend ($27.8M total), with 17th payment and $695M+ distributed, totaling $925M in shareholder returns.
  • VLGC Market Recovery:: TCE revenue per day rose to $53,725, while free cash flow to equity exceeded $30M amid improved Baltic Index to $68,000/day in Q3.
  • Adjusted EBITDA & OpEx:: Reported $85.7M adjusted EBITDA with daily OpEx down 6% to $9,474, reflecting cost optimization.
  • Scrubber Savings & Emission Efficiency:: Generated $1.36M in scrubber savings, with fleet AER 9.3% below IMO’s 2025 target, enhancing CII compliance.
  • Forward Guidance:: 75% of fixable days in Q4 2025 estimated at $57,000 TCE/day, supported by seasonally strong spot rates and port fee relief.

VLGC Market Recovery and Its Impact on Revenue

The VLGC market showed significant improvement in the third calendar quarter, with the Baltic Index averaging $68,000 per day, up from $48,000 in the second quarter and $33,000 in the first quarter. This recovery had a positive impact on Dorian LPG's revenue, with the Helios Pool earning a TCE of $53,500 per day for its spot and COA voyages. For the quarter ending December 31, 2025, the company estimates that 75% of fixable days are fixed at a TCE of about $57,000 per day, providing a good barometer for future expectations.

Operational Efficiency and Environmental Performance

Dorian LPG's fleet remains well within compliance limits for CII ratings, and the installation of energy-saving devices and application of premium hull coatings have significantly improved the emission profile of the fleet. The company's fleet performance team works closely with chartering to optimize fuel consumption during voyages, resulting in an average fleet AER for the third quarter of 2025 that was 9.3% lower than the IMO required target for 2025. The company generated $1,363,000 in scrubber vessel savings for the second fiscal quarter of '26.

Dividend and Valuation

The company's dividend was declared at $0.65 per share, totaling $27.8 million, marking the 17th dividend payment and bringing total dividends distributed to over $695 million. With a dividend yield of 9.98%, Dorian LPG offers an attractive return to shareholders. The stock's current P/E Ratio is 21.42, while the EV/EBITDA ratio is 9.63, indicating a reasonable valuation. Analysts estimate next year's revenue growth at 22.0%, which could potentially drive the stock's performance.

Outlook and Momentum

Regarding spot rates, momentum has picked up, which is unusual given the time of year, as rates typically come under downward pressure seasonally. The recent move is attributed to a wait-and-see approach before the U.S. and China met in Korea, which led to a hold on fixing activity and a subsequent catch-up. Additionally, the postponement of port fees provided market relief, allowing people to make decisions and take action, which helped kickstart activity going into winter. The company's guidance for the current quarter should be more on target after the dry docking program largely ended.

3. NewsRoom

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BW LPG Limited Secures Three-Year Time Charter-Out Contracts for Two VLGCs

Feb -09

Source: businesswire.com

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Dorian LPG Q3 Earnings Call Highlights

Feb -08

Source: defenseworld.net

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Dorian LPG Ltd. (LPG) Q3 2026 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

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Dorian LPG Ltd. Declares Irregular Cash Dividend of $0.70 Per Share, Provides Market and Financial Update and Announces Third Quarter 2026 Earnings Conference Call Date

Jan -30

Source: businesswire.com

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Tim Truels Hansen Sells 25,000 Shares of Dorian LPG (NYSE:LPG) Stock

Jan -24

Source: defenseworld.net

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BW LPG Limited – Regulatory Decision on Norwegian Takeover Rules and Singapore Takeover Code Waiver

Jan -23

Source: businesswire.com

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Dorian LPG: Accumulating A Small Holding

Jan -22

Source: seekingalpha.com

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John Hadjipateras Acquires 15,000 Shares of Dorian LPG (NYSE:LPG) Stock

Jan -11

Source: defenseworld.net

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

Stock-Card
Dorian LPG

A-Score: 6.7/10

Value: 5.7

Growth: 6.8

Quality: 5.5

Yield: 10.0

Momentum: 7.0

Volatility: 5.3

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Delek Logistics Partners

A-Score: 6.7/10

Value: 4.0

Growth: 3.0

Quality: 6.0

Yield: 10.0

Momentum: 8.5

Volatility: 8.7

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Global Partners

A-Score: 5.8/10

Value: 7.5

Growth: 3.9

Quality: 3.1

Yield: 10.0

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

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Genesis Energy

A-Score: 5.7/10

Value: 4.9

Growth: 3.4

Quality: 1.5

Yield: 9.0

Momentum: 9.0

Volatility: 6.3

1-Year Total Return ->

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NGL Energy Partners

A-Score: 4.9/10

Value: 7.2

Growth: 3.6

Quality: 5.8

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

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Overseas Shipholding Group

A-Score: 4.5/10

Value: 7.2

Growth: 5.9

Quality: 5.4

Yield: 0.0

Momentum: 6.0

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

35.52$

Current Price

35.52$

Potential

-0.00%

Expected Cash-Flows