Dorian LPG reported strong second quarter fiscal year 2027 results, significantly exceeding analyst expectations on both top and bottom lines. The performance was driven by record freight rates and substantial gains from vessel sales, enabling the company to declare an irregular cash dividend of $1.25 per share.
Key Highlights
- Record Charter Performance: The Time Charter Equivalent (TCE) rate per available day surged 80.5% year-over-year to $96,990, well above the anticipated $88,000 level.
- Fleet Optimization Gains: The company recognized $63.6 million in gains from the sale of the VLGCs Corsair and Constellation during the quarter, with two additional vessel sales completed in October 2026 for $167.4 million in net proceeds.
- Modernization Commitment: Dorian entered shipbuilding contracts for three new dual-fuel Panamax VLGCs slated for 2030 delivery, while simultaneously refinancing debt with a new $368.5 million credit facility including a $200 million accordion feature.
- Operational Efficiency: Vessel operating expenses per day decreased to $10,264 from $10,705 in the prior year, primarily due to lower non-capitalizable drydocking costs.