Dorian LPG Q2 revenue beats estimates on higher spot rates

Overview

• U.S. VLGC operator's fiscal Q2 revenue rose sharply yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q2 increased significantly yr/yr

• Company declared irregular cash dividend and completed multiple vessel sales

Outlook

• Company expects continued market volatility due to geopolitical tensions and supply chain disruptions

• Dorian LPG notes elevated freight rates supported by longer trade routes and Panama Canal congestion

• Company highlights a moderate global VLGC fleet expansion and a growing orderbook through 2030

Result Drivers

• FREIGHT RATE SURGE - Co said higher spot rates drove an 80.5% increase in TCE rates, boosting revenue and earnings

• VESSEL SALES - Gains from the sale of two VLGCs contributed $63.6 mln to net income in the quarter

• OPERATING COSTS - Lower vessel operating expenses, mainly from reduced drydock-related costs, supported results

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas transportation services peer group is "buy"

• Wall Street's median 12-month price target for Dorian LPG Ltd. is $54.00, about 9.2% above its November 4 closing price of $49.43

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)