Dorian LPG 2025 Q4 Earnings Misses Targets as Net Income Falls 89.8%

Dorian LPG reported its fiscal 2025 Q4 earnings on May 29th, 2025. The company experienced a substantial decline in both revenue and net income, indicating challenges in the current market environment. Despite these results, Dorian LPG has maintained forward-looking guidance, projecting positive market positioning with anticipated Time Charter Equivalent rates. The company's financial performance has raised questions about its ability to adapt to changing market conditions, as it navigates geopolitical tensions and volatile trading patterns.

Revenue

Dorian LPG's total revenue fell significantly by 45.7% in the fourth quarter of fiscal 2025, reaching $77.75 million compared to $143.25 million in the same period of fiscal 2024. The decline was primarily attributed to reduced average Time Charter Equivalent rates, which were impacted by lower spot market rates.

Earnings/Net Income

The company reported a sharp decline in earnings per share (EPS), dropping 90.3% from $1.95 in fiscal 2024 Q4 to $0.19 in fiscal 2025 Q4. Net income also decreased significantly to $8.09 million, down from $79.24 million in the previous year. This steep fall in EPS reflects challenging market conditions and reduced profitability.

Post-Earnings Price Action Review

The strategy of purchasing Dorian LPG shares when revenues fall short and holding them for 30 days has yielded impressive results, delivering a 173.20% return and a Sharpe ratio of 0.49, outperforming the benchmark considerably. Despite a maximum drawdown of -62.93%, the strategy demonstrated resilience, underscoring its potential in volatile markets. With a 45.69% volatility rate, the strategy is sensitive to market movements, offering both opportunities and risks. The compound annual growth rate of 22.42% further highlights its effectiveness, suggesting a strong long-term growth trajectory. While the strategy's backtest performance is commendable, it is crucial to consider its associated risks and adjust it to align with current market conditions.

CEO Commentary

John Hadjipateras, Chairman, President, and CEO of Dorian LPG, highlighted the company's solid performance amidst a volatile geopolitical climate and a demanding drydocking schedule. He emphasized Dorian LPG's commitment to shareholder returns and its strong balance sheet, which supports investments in personnel and fleet renewal. Expressing gratitude to the staff for their dedication, Hadjipateras remains confident in the LPG market fundamentals and the team's readiness to tackle trade-related challenges.

Guidance

Dorian LPG aims for a target cash cost per day of approximately $26,000 for the upcoming year, excluding capital expenditures. The company has projected forward bookings for the next quarter at a Time Charter Equivalent of roughly $42,000 per day, indicating favorable market positioning. Moreover, the company reported an estimated free cash flow of $317 million at the end of March 2025, reinforcing its focus on operational efficiency and strategic growth.

Additional News

In recent weeks, Dorian LPG announced an irregular cash dividend of $0.50 per share, totaling approximately $21.3 million, payable on or around May 30, 2025. The company is also making strides in fleet expansion, with a new 93,000 cbm VLGC/AC vessel under construction, expected to be delivered in Q2 2026. Additionally, Dorian LPG participated in the 2nd Maritime Leaders Summit on June 2, 2025, in Oslo, Norway, where industry leaders discussed strategic initiatives and market trends. These developments highlight Dorian LPG's focus on shareholder returns, fleet growth, and industry engagement amidst challenging market conditions.