Dorian LPG (NYSE:LPG) Issues Quarterly Earnings Results

Key Points

• Dorian LPG reported $2.52 in quarterly EPS, exceeding analysts’ $2.22 estimate by $0.30. Revenue surged 123.1% year over year, while net margin reached 40.22%.
• Strong VLGC market conditions drove record time charter equivalent revenue of $75,926 per available day and adjusted EBITDA of $165.4 million. The company’s balance sheet also improved, with cash nearing $600 million and net debt-to-total capitalization at 9.7%.
• Dorian declared a $1-per-share special dividend, but management cautioned that a growing VLGC order book and increased newbuilding activity could pressure future freight-market returns.

Dorian LPG (NYSE:LPG - Get Free Report) posted its earnings results on Wednesday. The shipping company reported $2.52 EPS for the quarter, beating analysts' consensus estimates of $2.22 by $0.30, Briefing.com reports. Dorian LPG had a net margin of 40.22% and a return on equity of 18.01%. During the same period in the prior year, the business posted $0.27 EPS. Dorian LPG's revenue was up 123.1% on a year-over-year basis.

Here are the key takeaways from Dorian LPG's conference call:

• Dorian reported its highest-ever TCE revenue per available day at $75,926, while adjusted EBITDA reached $165.4 million, including a $30.1 million gain on the Cobra sale.
• VLGC market conditions remained strong as Middle East disruptions redirected LPG trade toward the U.S. Gulf, which posted record exports of nearly 20.8 million tons and increased ton-mile demand. Management said rates have remained healthy despite some Panama Canal-related cost pressure.
• The company’s balance sheet has strengthened following vessel sales and debt repayments, with cash approaching $600 million, debt-to-total capitalization of 29.3%, and net debt-to-total capitalization of 9.7%. Dorian also expects lower interest and principal-amortization costs after approximately $80.6 million of debt reductions.
• Dorian declared a $1-per-share dividend, its 20th dividend payment, while emphasizing that future capital allocation will balance shareholder returns, debt reduction, and conservative fleet renewal. The company has ordered one dual-fuel 90,000-cubic-meter VLGC for mid-2029 delivery and is evaluating additional renewal opportunities without excluding measured fleet expansion.
• Management noted that the VLGC order book is increasing and expressed concern about excess newbuilding activity, which could pressure future returns. Freight markets also corrected from record highs after the June ceasefire memorandum, although management believes a lasting peace would not necessarily be negative for the sector.

Dorian LPG Stock Performance

Shares of Dorian LPG stock traded down $0.23 during trading hours on Wednesday, hitting $43.29. 457,058 shares of the company were exchanged, compared to its average volume of 613,444. The company has a current ratio of 2.67, a quick ratio of 2.65 and a debt-to-equity ratio of 0.40. The business has a 50-day moving average of $41.30 and a 200-day moving average of $37.18. Dorian LPG has a 1 year low of $23.76 and a 1 year high of $48.12. The stock has a market capitalization of $1.85 billion, a price-to-earnings ratio of 9.49 and a beta of 0.65.

Dorian LPG Announces Dividend

The business also recently announced a special dividend, which will be paid on Wednesday, August 12th. Stockholders of record on Monday, July 27th will be issued a $1.00 dividend. The ex-dividend date of this dividend is Monday, July 27th. Dorian LPG's payout ratio is presently 21.98%.

Insider Buying and Selling at Dorian LPG

In related news, Director Ted Kalborg sold 15,373 shares of the firm's stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $45.06, for a total value of $692,707.38. Following the completion of the sale, the director owned 66,348 shares in the company, valued at $2,989,640.88. This trade represents a 18.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Tim Truels Hansen sold 20,000 shares of Dorian LPG stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $35.38, for a total value of $707,600.00. Following the completion of the sale, the insider directly owned 157,842 shares in the company, valued at $5,584,449.96. This represents a 11.25% decrease in their position. The SEC filing for this sale provides additional information. 13.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of LPG. Sunbelt Securities Inc. acquired a new stake in Dorian LPG in the third quarter valued at $41,000. NewEdge Advisors LLC boosted its holdings in Dorian LPG by 1,003.8% during the first quarter. NewEdge Advisors LLC now owns 1,446 shares of the shipping company's stock worth $32,000 after buying an additional 1,315 shares in the last quarter. EverSource Wealth Advisors LLC boosted its holdings in Dorian LPG by 429.5% during the second quarter. EverSource Wealth Advisors LLC now owns 1,652 shares of the shipping company's stock worth $40,000 after buying an additional 1,340 shares in the last quarter. Los Angeles Capital Management LLC purchased a new position in Dorian LPG in the fourth quarter valued at about $49,000. Finally, Aster Capital Management DIFC Ltd increased its holdings in Dorian LPG by 47.8% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 2,017 shares of the shipping company's stock valued at $49,000 after buying an additional 652 shares in the last quarter. Institutional investors and hedge funds own 62.50% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on LPG shares. Weiss Ratings raised Dorian LPG from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, May 28th. Dnb Carnegie upgraded Dorian LPG from a "strong sell" rating to a "hold" rating in a research note on Monday, May 18th. Pareto Securities restated a "buy" rating on shares of Dorian LPG in a research report on Thursday, May 21st. Freedom Capital cut shares of Dorian LPG from a "strong-buy" rating to a "hold" rating in a report on Friday, May 22nd. Finally, Wall Street Zen upgraded shares of Dorian LPG from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 25th. Three investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $55.00.

About Dorian LPG

Dorian LPG Ltd., incorporated in Bermuda and headquartered in Greenwich, Connecticut, is a leading owner and operator of modern very large gas carriers (VLGCs). The company specializes in the maritime transportation of liquefied petroleum gas (LPG), primarily propane and butane, for energy producers, commodity traders and trading houses around the world.

Dorian LPG's fleet comprises over 30 state-of-the-art VLGCs, each designed for fuel efficiency and environmental performance. These vessels operate under medium- and long-term time charter agreements, providing predictable employment and supporting a stable charter revenue profile through contracts with major international energy companies.

The company serves global energy markets by transporting LPG cargoes along major trade routes linking production centers in the Middle East, U.S.

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