Dorian LPG Q1 Earnings Call Highlights

Dorian LPG posted record quarterly performance, with $165.4 million in adjusted EBITDA and a corporate-high TCE revenue of $75,926 per available day. The company declared a $1-per-share dividend, its 20th payout. Middle East supply disruptions significantly reshaped LPG trade flows: regional liftings fell more than 70%, while U.S. LPG exports rose 20% year over year to a record 20.8 million tons. Longer routes, Panama Canal congestion and higher fuel costs drove VLGC freight rates sharply higher. Fleet sales strengthened liquidity and supported renewal efforts. Dorian’s cash balance rose to nearly $600 million after vessel transactions, while the company continued selling older vessels, evaluating repurchases and refinancing, and ordered a dual-fuel VLGC for delivery in 2029.

Dorian 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.

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.

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 r...