Dorian LPG NYSE: LPG reported record quarterly chartering performance for its fiscal first quarter of 2027, as disruptions to Middle East LPG supply and congestion at the Panama Canal supported elevated freight rates and longer shipping routes.
Chief Executive Officer John Hadjipateras said the company declared a $1-per-share dividend totaling $42.8 million. The payment is Dorian’s 20th dividend and brings cumulative dividends since its initial public offering to more than $810 million, while total shareholder capital returns have surpassed $1 billion.
The company reported adjusted EBITDA of $165.4 million for the quarter ended June 30, 2026, including a $30.1 million gain from the sale of the vessel Cobra. Dorian’s reported time-charter-equivalent, or TCE, revenue per available day was $75,926, the highest rate in its corporate history, according to Chief Financial Officer Ted Young.
Middle East Disruption Reshaped LPG Trade Routes
Hadjipateras said the de facto closure of the Strait of Hormuz cut off nearly all LPG supply volumes from the Middle East during the quarter. Liftings from the region fell to roughly 3.4 million tons, down more than 70% from the prior-year period, he said.
Importers including India and Indonesia, which had already begun diversifying their supply sources, were forced to procure LPG from the U.S. Gulf Coast, increasing shipping distances and ton-mile demand. U.S. LPG exports reached nearly 20.8 million tons during the quarter, up 20% year over year and a record level, according to Hadjipateras.
The U.S. now represents about 65% of global seaborne LPG exports, compared with less than 50% a year earlier, he said. Disruptions to Middle East LNG and oil cargoes also increased demand for U.S.-sourced commodities, adding pressure to Panama Canal transit capacity and prompting some vessels to travel around the Cape of Good Hope.
Taro Rasmussen, Dorian’s vice president of chartering, said the market effects included record-high VLGC freight rates, higher bunker costs and sharply higher Panama Canal auction prices. Average bunker prices across Rotterdam, Fujairah, Japan, Singapore and Houston rose approximately 36% sequentially during the quarter, he said.
Rasmussen said freight rates declined from record levels in mid-June after the announcement of a U.S.-Iran ceasefire memorandum of understanding. However, he said the market remained cautious because peace prospects and Middle East export reliability remained uncertain. The company said the Baltic LPG freight market had recently approached $175,000 per day.
Fleet Renewal, Asset Sales and Liquidity
Dorian has been active in reshaping its fleet. The company sold Cobra in May and prepaid $16.5 million of associated debt. It subsequently completed sales of the Corsair and Constellation in July, producing approximately $166.4 million in proceeds net of commissions and repaying $48.1 million of related debt.
The company has also signed an agreement to sell the Clermont and expects that transaction to close in September or October. Separately, Dorian contracted with Hyundai Heavy Industries to build a 90,000-cubic-meter dual-fuel Panamax VLGC for delivery in mid-2029.
Hadjipateras said the company intends to pursue a conservative fleet-renewal program, while not ruling out fleet expansion. He told analysts that Dorian is mindful of its concentration of vessels built around 2015 and is continuing discussions with shipyards regarding potential opportunities.
At June 30, Dorian had $342 million of cash and $512.4 million of debt. Young said the company’s cash balance had subsequently risen to almost $600 million following vessel sales and favorable market conditions. The company had an undrawn $41 million revolving credit facility and one debt-free vessel.
Dorian has also given notice to repurchase two Japanese-financed vessels, Cougar and Cresques, with expected closing by the end of the September quarter. The anticipated cash application is approximately $56 million, and the company is evaluating refinancing options for the vessels.
Young said that, on a pro forma basis for the completed Constellation sale and the expected Clermont sale, debt at June 30 would have been about $473 million. The company estimated its debt-to-total-book-capitalization ratio at 29.3% and net debt-to-total capitalization at 9.7% as of quarter-end.
Operating Costs and Energy-Efficiency Investments
The Helios Pool, through which Dorian conducts its spot trading program, generated TCE of $82,445 per day for spot and contract-of-affreightment voyages during the quarter. The pool’s overall TCE was more than $75,100 per day, supported by Dorian’s time-charter portfolio.
Daily operating expenses were $10,308, excluding dry-docking costs, with higher freight, maintenance and repair expenses contributing to the increase from the preceding quarter. Gross time-charter-in expense for six chartered-in vessels was $22.6 million, or $41,418 per vessel per day, and Young said those vessels contributed positively to quarterly profits.
John Lycouris, head of energy transition, said Dorian operates 15 scrubber-fitted vessels and six dual-fuel LPG vessels following the delivery of the Areion and the sales of Corsair and Constellation. Scrubber savings during the quarter averaged approximately $1,971 per calendar day per vessel, net of operating expenses.
The company said elevated fuel-price differentials continued to support the economics of its fuel-efficiency investments. Its new dual-fuel Panamax vessel will include a shaft generator intended to improve power efficiency and reduce emissions.
Looking ahead, Young said Dorian expects cash costs of about $26,000 to $27,000 per day for the coming year, excluding capital expenditures related to the planned fourth-quarter dry docking of the Captain John. The company said it will continue to balance shareholder distributions, debt reduction and fleet investment as it evaluates future capital allocation.
About Dorian LPG (NYSE: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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Before you consider Dorian LPG, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Dorian LPG wasn't on the list.
While Dorian LPG currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
With the proliferation of data centers and electric vehicles, the electric grid will only get more strained. Download this report to learn how energy stocks can play a role in your portfolio as the global demand for energy continues to grow.
Get This Free Report
