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Dorian LPG (LPG)
NYSE:LPG
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Dorian LPG (LPG) AI Stock Analysis

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LPG

Dorian LPG

(NYSE:LPG)

Rating:75Outperform
Price Target:
$33.00
â–²(11.49%Upside)
Dorian LPG demonstrates solid financial health with strong profitability, strategic operational initiatives, and an attractive valuation. However, challenges such as revenue decline, cash flow sustainability, and market volatility due to geopolitical tensions are areas to watch.

Dorian LPG (LPG) vs. SPDR S&P 500 ETF (SPY)

Dorian LPG Business Overview & Revenue Model

Company DescriptionDorian LPG is a leading owner and operator of modern Very Large Gas Carriers (VLGCs) that are primarily engaged in the seaborne transport of liquefied petroleum gas (LPG). The company operates in the maritime transportation sector, focusing on the safe and efficient shipment of LPG across the globe. Dorian LPG is known for its modern fleet, which is equipped with the latest technology to ensure safe and environmentally responsible operations.
How the Company Makes MoneyDorian LPG generates revenue primarily through the chartering of its VLGCs to customers in need of LPG transportation services. The company earns money by entering into time charters and voyage charters with major oil companies, commodity traders, and other entities that require the transport of LPG. Time charters involve leasing the vessels to customers for a set period, while voyage charters are contracted on a per-voyage basis. The company's earnings are influenced by factors such as charter rates, which are subject to market conditions, and operational efficiency. Strategic partnerships with major LPG producers and traders, along with the company's ability to optimize routes and manage operating expenses, also play a significant role in its profitability.

Dorian LPG Earnings Call Summary

Earnings Call Date:May 22, 2025
(Q4-2025)
|
% Change Since: 30.63%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balance between positive financial management, record LPG production, and strategic initiatives against the backdrop of market challenges due to U.S.-China trade tensions and increased operating expenses.
Q4-2025 Updates
Positive Updates
Strong Dividend Payout
Dorian LPG paid a dividend of $0.50 per share totaling $21.3 million, reflecting a commitment to returning capital to shareholders. In the past fiscal year, over $155 million in dividends were distributed.
Robust Cash Position and Liquidity
Reported $317 million in free cash at the end of March 31, 2025. Cash flow from operations more than doubled from $24 million to $50.3 million quarter-over-quarter.
Record U.S. LPG Production
U.S. LPG production hit a quarterly record in Q1 2025, producing 0.5 million tonnes above the previous quarter.
Positive Forward Bookings
Forward bookings for the quarter ending June 30, 2025, are promising, with an estimated 79% of pool’s available days fixed at a TCE of roughly $42,000 per day.
Environmental and Operational Initiatives
Investments in energy-saving devices and performance optimization are progressing. Plans to convert some VLGCs to facilitate the carriage of ammonia, with 4 vessels to have this capability by 2025.
Negative Updates
Challenging LPG Product Market
Reported TCE revenue per available day was marginally lower than the prior quarter’s results, reflecting the challenging LPG product market.
Impact of U.S.-China Trade Tensions
The trade war between the U.S. and China, including tariffs on LPG, caused volatility and disruptions in the market, leading to immediate market disruptions.
Increased Operating Expenses
Daily OpEx for the quarter was $11,000 a day, excluding dry-docking related expenses, which was up from the prior quarter due to increased crew, spare, and storage costs.
Company Guidance
During the Dorian LPG Fourth Quarter and Full Year 2025 Earnings Conference Call, several key metrics and guidance were discussed. The company declared a dividend of $0.50 per share, totaling $21.3 million, reflecting a commitment to shareholder returns. Over the fiscal year, they paid over $155 million in dividends. Dorian LPG reported $317 million in free cash at the end of March 2025, with cash flow from operations more than doubling to $50.3 million quarter-over-quarter. The debt balance stood at $557.4 million, with a net debt to total capitalization ratio of 15%. The company also disclosed a target cash cost per day of approximately $26,000 for the coming year, excluding capital expenditures. Operationally, they plan eight dry dockings in 2025. The Helios Pool achieved a Time Charter Equivalent (TCE) of $33,200 per day, with forward bookings for the following quarter estimated at $42,000 per day. These metrics illustrate the company's financial stability and strategic focus on operational efficiency and market adaptability amidst volatile conditions.

Dorian LPG Financial Statement Overview

Summary
Dorian LPG demonstrates solid financial health with strong profitability and efficient operational management. There are concerns regarding revenue decline and free cash flow reduction, but the company maintains a robust balance sheet with manageable leverage and strong return on equity.
Income Statement
77
Positive
Dorian LPG shows a strong gross profit margin and consistent net profit margins in the latest year. However, revenue has significantly decreased compared to the previous year, indicating volatility. Margins such as EBIT and EBITDA have remained robust, suggesting operational efficiency despite revenue fluctuations.
Balance Sheet
80
Positive
The company's balance sheet reflects a healthy equity ratio with stockholders' equity consistently exceeding total liabilities. The debt-to-equity ratio is moderate, indicating manageable leverage levels. Return on equity is strong, which is a positive indicator of profitability.
Cash Flow
72
Positive
Operating cash flow is strong relative to net income, indicating effective cash management. However, free cash flow has decreased compared to the previous year, which could suggest potential challenges in sustaining cash flow growth. The company maintains a positive free cash flow to net income ratio, reflecting efficient cash utilization.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue353.34M560.72M389.75M274.22M315.94M
Gross Profit152.69M365.24M228.05M112.99M147.71M
EBITDA192.98M397.50M261.76M151.57M197.84M
Net Income90.17M307.45M172.44M71.94M92.56M
Balance Sheet
Total Assets1.78B1.84B1.61B1.58B1.67B
Cash, Cash Equivalents and Short-Term Investments316.88M294.04M236.76M79.33M63.31M
Total Debt712.98M797.34M670.84M609.14M661.84M
Total Liabilities732.55M814.12M687.21M634.79M694.91M
Stockholders Equity1.05B1.02B920.15M946.83M977.05M
Cash Flow
Free Cash Flow154.06M355.59M95.51M161.09M149.01M
Operating Cash Flow173.01M388.45M118.70M170.60M169.04M
Investing Cash Flow-7.36M-34.80M68.77M1.02M-33.14M
Financing Cash Flow-131.29M-219.72M-35.18M-174.48M-114.65M

Dorian LPG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price29.60
Price Trends
50DMA
24.78
Positive
100DMA
22.76
Positive
200DMA
23.75
Positive
Market Momentum
MACD
1.33
Negative
RSI
70.86
Negative
STOCH
87.51
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPG, the sentiment is Positive. The current price of 29.6 is above the 20-day moving average (MA) of 27.21, above the 50-day MA of 24.78, and above the 200-day MA of 23.75, indicating a bullish trend. The MACD of 1.33 indicates Negative momentum. The RSI at 70.86 is Negative, neither overbought nor oversold. The STOCH value of 87.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LPG.

Dorian LPG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$1.15B13.097.38%1.22%6.38%9.47%
78
Outperform
$1.56B4.8518.57%4.42%-21.27%-34.25%
75
Outperform
$1.26B13.718.71%10.81%-36.98%-71.55%
74
Outperform
$1.79B10.0317.04%7.28%-5.32%5.51%
72
Outperform
$1.23B12.1412.69%13.02%-3.95%-2.25%
52
Neutral
C$2.96B-1.55-3.48%6.54%3.13%-49.39%
40
Underperform
$112.09M33.55-6.93%0.70%-1.06%-340.61%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LPG
Dorian LPG
29.53
-7.51
-20.28%
DHT
DHT Holdings
11.12
0.41
3.83%
MMLP
Martin Midstream
2.80
-0.69
-19.77%
TNK
Teekay Tankers
44.87
-15.06
-25.13%
NVGS
Navigator Holdings
16.41
0.39
2.43%
FLNG
FLEX LNG
23.04
-0.55
-2.33%

Dorian LPG Corporate Events

Executive/Board Changes
Dorian LPG Updates Executive Compensation Program
Neutral
May 15, 2025

Dorian LPG‘s Compensation Committee has revised its executive compensation program to align more closely with industry peers and best practices. The new structure uses pre-established performance criteria to enhance transparency and align executive pay with company performance, promoting long-term strategy and reducing excessive risk-taking.

The most recent analyst rating on (LPG) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Dorian LPG stock, see the LPG Stock Forecast page.

DividendsBusiness Operations and Strategy
Dorian LPG Announces Irregular Cash Dividend Declaration
Neutral
May 2, 2025

On May 2, 2025, Dorian LPG Ltd. announced that its Board of Directors declared an irregular cash dividend of $0.50 per share, totaling approximately $21.3 million, payable on May 30, 2025, to shareholders of record as of May 16, 2025. This decision reflects the company’s financial strategy and operational considerations, impacting stakeholders by providing a direct return on investment, while highlighting the company’s discretion in future dividend declarations based on various financial and operational factors.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 24, 2025