Dorian LPG Reports Q1 Revenue Miss Amid Drydocking, Market Volatility

Dorian LPG (LPG) reported Q1 revenue of $84.2 million, missing the $86.53 million analyst consensus. The company attributed the weaker performance to drydocking and market volatility. Despite this, LPG expressed optimism about the liquefied petroleum gas shipping sector's long-term fundamentals and robust booking rates for the current period. The company owns and operates 22 modern VLGCs and has a market capitalization of $1.23 billion. Its financial health indicators show mixed results, with strong liquidity metrics but a financial stress "grey zone" Altman Z-Score of 1.86.

Dorian LPG Ltd (LPG) reported its Q1 2025 earnings, revealing a significant miss in both earnings per share (EPS) and revenue. The company posted an EPS of $0.27, falling short of the anticipated $0.73, resulting in a 63% negative surprise. Revenue also lagged behind expectations, coming in at $84.2 million against a forecast of $88.4 million, marking a 4.75% shortfall. The stock reacted negatively, dropping 7.26% in pre-market trading, with shares priced at $26.70 [1].

The company distributed a $0.60 per share dividend, totaling $25.6 million. Operational improvements include 16 scrubber-fitted vessels and a focus on energy efficiency. The company faces geopolitical tensions impacting trade routes [1].

Dorian LPG’s overall performance in Q1 2025 was below expectations, with a notable decline in both EPS and revenue. Despite these challenges, the company maintained a strong free cash balance of $278 million and continued its commitment to shareholder returns with a substantial dividend payout. The company’s debt management remains robust, with a debt balance of $543.5 million and a debt to total book capitalization ratio of 34.4% [1].

The stock is trading at $26.70, closer to its 52-week low of $16.66 than its high of $37.99, indicating a challenging environment for the company. Looking forward, Dorian LPG remains optimistic about the market for the remainder of the year, with expectations of limited new build deliveries and continued improvements in energy efficiency [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-dorian-lpg-q1-2025-misses-earnings-expectations-93CH-4166368