Dorian LPG Ltd

Dorian LPG reported record quarterly performance for its fiscal first quarter of 2027, with adjusted EBITDA of $165.4 million and a corporate-high time-charter-equivalent revenue of $75,926 per available day. The company declared a $1-per-share dividend, its 20th payout, bringing cumulative dividends since its initial public offering to more than $810 million. Middle East supply disruptions reshaped LPG trade flows, as regional liftings fell more than 70% while U.S. LPG exports rose 20% year over year to a record 20.8 million tons, and the U.S. now represents about 65% of global seaborne LPG exports. Longer routes, Panama Canal congestion, and higher fuel costs drove VLGC freight rates sharply higher, with the Baltic LPG freight market recently approaching $175,000 per day. Dorian's cash balance rose to nearly $600 million after vessel sales, and the company ordered a dual-fuel VLGC for delivery in 2029 while continuing to sell older vessels and evaluate repurchases and refinancing.

President Trump declared the U.S. would act as the 'Guardian of the Hormuz Strait' and charge a 20% fee on all transiting cargo to cover security costs, prompting the International Maritime Organization to state there is no legal basis for mandatory tolls to transit a strait. The announcement follows escalating clashes in which Iran has targeted commercial vessels and vowed to impose its own fees for passage, while the U.S. has conducted airstrikes against Iranian installations. The IMO, the U.N. body overseeing global shipping safety, clarified that freedom of navigation is guaranteed under customary international law, which the U.S. has historically recognized. The proposed fee marks a shift toward transactional foreign policy, raising concerns that allies may seek alternative security arrangements and that other powers could assert similar claims in contested waterways.

A bullish thesis on Dorian LPG Ltd. posted on r/ValueInvesting highlights the company's strong cyclical recovery, with fiscal 2026 revenue up 36.3% to $481.5 million and net income more than doubling to $193.7 million. The stock trades at 11.35 times earnings, below the broader energy sector median, and offers a 7.34% dividend yield. CEO John C. Hadjipateras made two open-market purchases totaling approximately $942,000, adding to insider confidence. The company operates a modern fleet of Very Large Gas Carriers and generates nearly all revenue through the Helios LPG Pool, serving blue-chip energy clients worldwide.

Dorian LPG has ordered a new very large gas carrier from HD Hyundai for approximately $115 million, with delivery expected in 2029, while separately agreeing to sell three VLGCs to unnamed purchasers for $256 million. The newbuilding will be a dual-fuel panamax unit designed to transit the older locks of the Panama Canal. The vessels being sold include the 2014-built Corsair and two 2015-built VLGCs, with the transactions expected to close by the fourth quarter. The company also reported that it had fixed 99% of its available days for the quarter ending June 30 at more than $68,000 per day, and for July it had fixed 34% of its days at more than $100,000 per day.