Dorian LPG surges 1% as net income more than doubles to $47M
Shipping company beats revenue estimates with strong VLGC freight rates and declares 17th consecutive irregular dividend
Dorian LPG Ltd shares rose 1.1% on Tuesday after the liquefied petroleum gas transporter reported quarterly results that topped analyst expectations, with net income more than doubling year-over-year on the back of surging freight rates.
The Stamford, Connecticut-based company reported revenue of $120 million for the three months ended December 31, 2025, exceeding the $112.5 million consensus estimate. Revenue surged 48.7% from $80.7 million in the same period a year earlier, driven primarily by higher charter rates and increased available days for the fleet.
Net income jumped 120% to $47.2 million, or $1.11 per diluted share, compared with $21.4 million, or $0.50 per share, in the prior year. The company's Time Charter Equivalent (TCE) rate per available day reached $50,333, up 39.5% from $36,071 a year earlier, reflecting the robust pricing environment for very large gas carriers.
"Our seafaring and shoreside team delivered a strong operating performance in the quarter," said John C. Hadjipateras, Chairman, President and Chief Executive Officer of Dorian LPG. "Demand, as well as freight rates have continued to be strong into the current quarter. We look forward to the delivery, in March, of a newbuilding dual fuel VLGC/AC."
The company declared an irregular dividend of $0.70 per share, payable on February 24, 2026, marking the 17th consecutive quarterly irregular dividend. Including share buybacks, Dorian LPG has returned more than $960 million to shareholders since its initial public offering.
The strong results come amid a favorable market for VLGC operators. Average VLGC rates for 2025 were projected at approximately $51,400 per day, up from $43,300 per day in 2024, according to shipping analysts. The Baltic Exchange Liquid Petroleum Gas Index on the Ras Tanura-Chiba route averaged $67.767 in Dorian's third fiscal quarter, compared with $55.717 in the year-earlier period.
Despite some volatility in the LPG shipping market throughout 2025, the sector has experienced a revival in rates driven by robust supply and strong Asian demand. The VLGC market reached a new export record last quarter, supporting pricing power for carriers like Dorian LPG.
Operational metrics also improved during the quarter. Vessel operating expenses decreased 7.4% to $19.9 million, or $10,275 per vessel per calendar day, down from $11,097 in the prior year. Interest and finance costs declined 20.5% to $7.1 million, reflecting the company's debt management efforts. Available days for the fleet increased from 2,210 to 2,349.
Looking ahead, analysts caution that the market balance could face pressure from 2027 onwards as new vessel deliveries accelerate. However, near-term fundamentals remain supportive, with Dorian LPG positioned to benefit from the upcoming delivery of a new dual-fuel VLGC that will enhance fleet efficiency and environmental performance.
Dorian LPG currently trades at $30.06 per share, with a market capitalization of approximately $1.28 billion. Analysts have a consensus target price of $33.75, with four firms rating the stock a buy or strong buy and none recommending a hold or sell. The stock has risen nearly 93% from its 52-week low of $15.60, reflecting strong investor confidence in the VLGC sector.