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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $221.30 mln | $187.93 mln (7 Analysts) |
Q2 EPS | $4.98 | ||
Q2 Net Income | $213.90 mln | ||
Q2 Adjusted EBITDA | $242 mln |
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
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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.)