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Jun 30
Dorian LPG Q1 2026 Earnings Report
Dorian LPG reported a significant decline in net income and revenue for the first quarter of fiscal year 2026, primarily due to reduced TCE rates, increased drydocking schedules, and higher general and administrative expenses.
Key Takeaways
Dorian LPG experienced a challenging first quarter of fiscal year 2026, with revenues decreasing by 26.4% to $84.2 million and net income plummeting by 80.3% to $10.1 million compared to the prior year. The decline was largely driven by lower Time Charter Equivalent (TCE) rates and an increased number of vessels undergoing drydocking, impacting available days. Despite these headwinds, the company declared an irregular cash dividend of $0.60 per share, returning approximately $25.6 million to shareholders.
Revenues for Q1 FY2026 were $84.2 million, a 26.4% decrease from $114.3 million in the same period last year.
Net income significantly dropped to $10.1 million, or $0.24 EPS, compared to $51.3 million, or $1.25 EPS, in Q1 FY2025.
Adjusted net income was $11.3 million, or $0.27 adjusted EPS, down from $51.7 million, or $1.26 adjusted EPS, in the prior year.
The Time Charter Equivalent (TCE) rate per available day for the fleet decreased by 20.9% to $39,726, primarily due to lower spot rates and reduced available days from increased drydocking.
Dorian LPG
Dorian LPG
Forward Guidance
Dorian LPG anticipates a positive outlook for the current quarter, with bookings at strong rates, despite recent market volatility driven by geopolitical developments and economic uncertainty. The company remains confident in the resilience and fundamentals of the LPG trade.
Positive Outlook
- Bookings for the current quarter are at strong rates, supporting a positive outlook.
- Confidence in the resilience and fundamentals of the LPG trade.
- Reduced U.S. import tariffs into China helped restore normalcy in the market.
- Improvement in petrochemical economics with rising average margins for ethylene production via steam cracking for propane in Europe and the Far East.
- VLGC freight rates increased by approximately $12 per metric ton compared to the previous quarter, supported by geopolitical developments and limited fleet additions.
Challenges Ahead
- Results for the reporting quarter were impacted by a heavy drydocking schedule.
- Market volatility has been acute in reaction to recent abrupt geopolitical movements.
- Implementation of tariffs between the U.S. and China affected the start of the quarter, effectively eliminating trade movements.
- Conflict between Iran and Israel led to disruptions for oil and oil products exports, influencing pricing and shipping.
- Soft demand in Europe for ethylene and propylene continued, with capacity shutdowns and maintenance announcements.