Dorian LPG Ltd (LPG) (Q2 2027) Earnings Call Highlights: Record TC Rates, $242 Million EBITDA ...

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Release Date: November 05, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Dorian LPG Ltd ( NYSE:LPG ) reported record quarterly earnings with TC revenue per available day just shy of $97,000, the highest in its corporate history.

• The company has a strong balance sheet with $578.8 million in free cash at quarter-end, which increased to almost $785 million post-quarter, and net cash of about $320 million.

• Dorian LPG Ltd ( NYSE:LPG ) completed a $368.4 million credit facility refinancing, reducing the margin by about 60 basis points to 140 basis points over SOFR and extending the profile to 22 years.

• The company has a balanced capital allocation strategy, returning over $1.1 billion to shareholders since its 2014 IPO, including a $1.25 per share irregular dividend declared last week.

• Dorian LPG Ltd ( NYSE:LPG ) is investing in fleet renewal with four new dual-fuel Panamax VLGCs on order, which will have improved technical and operational features, adding to earning potential.

• The company benefits from fuel efficiency initiatives, with scrubber-fitted vessels saving approximately $4,174 per calendar day per vessel in the quarter, the highest in 11 quarters.

Negative Points

• The Panama Canal congestion and restrictions have added planning uncertainty and increased costs, with record high auction prices and delays impacting vessel transits.

• Geopolitical conflicts in the Middle East, including the Iran conflict and Houthi attacks, have disrupted trade routes and created logistical inefficiencies, with Middle East export volumes currently about half of pre-conflict levels.

• The company faces potential regulatory uncertainty regarding the IMO's net zero framework, which could impact future fuel strategy and investment decisions.

• Dorian LPG Ltd ( NYSE:LPG ) expects cash cost per day to increase to approximately $27,000 for the coming year, partly due to reduced vessel days following vessel sales.

• The spot market exposure is high, with just over 73% of the Helios Pool vessels on spot charters, making earnings vulnerable to rate fluctuations.

• The company's dividend policy may be subject to volatility due to the cyclical nature of the shipping sector, and future dividends could vary based on market conditions and fleet investment needs.

Q & A Highlights

Q: With Panama Canal congestion seemingly easing over the past several weeks, are we overplaying its impact, or are spot rates structurally supported by something else? A: CEO John Hadjipateras and VP of Chartering Terrell Rasmussen explained that Panama is only one of several factors. Ballasting decisions made weeks in advance reduce immediate congestion but add ton-miles, and changing transit rules create unease since balancing decisions must be made a month ahead of laycan. Hadjipateras added that the ton-mile effect and inefficiencies from Middle East transshipmentwith volumes moving through Hormuz in a delayed, inefficient shuttle systemalso create a shortage of tonnage.

Q: How is Dorian thinking about capital allocation from herewill it continue monetizing older vessels and replacing them with newbuildings, or look for on-the-water tonnage? A: CEO John Hadjipateras noted Dorian sold five ships this year with an average age of almost 13 years at an average price of about $83 million. He said the market reflects abnormal conditions, so further sales aren't ruled out but the company isn't actively seeking them. On newbuildings, he said Dorian is content with its current position and not rushing to add to the order book, though the natural replacement cycle would require more newbuildings in the next few yearstiming remains undecided.

Q: U.S. terminals reportedly didn't run at full capacity because ships were shorthow much spare terminal capacity is there, when do new export projects come online, and is shipping now the constraint rather than terminals? A: VP of Chartering Terrell Rasmussen said the main constraint is indeed the availability of tonnage. He noted U.S. Gulf loadings are down about 10 per month versus the prior quarter, implying roughly 10% inefficiency, plus or minus, though he did not have the exact terminal utilization percentage at hand.

Q: If there is some kind of mobilization in the Middle East and Gulf cargoes return, how quickly would rates adjust? A: VP of Chartering Terrell Rasmussen said any geopolitical shift would likely come in two phasesan initial wave of sentiment, then a realignment of tradebut predicting normalization is difficult given many possible outcomes (tolls, ceasefire, or permanent peace). CEO John Hadjipateras added that the market may react very fast, but he doesn't see a net negative in the medium to long term: when the MOU was signed rates fell but bounced back within days, volumes still need shipping, and if Hormuz opens there will be more volumesit takes time for tonnage to rebalance into an efficient mode.

Q: Can you give a sense of the volumes coming out of the Middle Eastwhat portion moves via Hormuz/SDS versus the Red Sea? A: VP of Chartering Terrell Rasmussen said Dorian doesn't have the most recent figures and most in the industry are still scrambling to compile that data. He noted that for many VLGCs, cargoes loaded now won't show in the data until much later because vessels are heading north into the Mediterranean around Africa, so clarity will come later.

Q: What drove the record quarterly results and the strong TCE performance? A: CFO Theodore Young reported the Helios Pool earned a spot/COA TCE of $115,163 and an overall TCE of $99,915 for the quarter. Dorian's reported TC revenue per available day was just shy of $97,000the highest in corporate history for a third consecutive quarterwith the favorable variance versus guidance due to demurrage booked in September and favorable mark-to-market adjustments on COAs. Adjusted EBITDA was a record $242 million, including $63.6 million of gains on sales of the Corsair and Constellation.

Q: What is the status of the balance sheet, liquidity, and recent financing activities? A: CFO Theodore Young said Dorian reported $578.8 million of free cash at September 30, 2026, up $236.6 million or nearly 70% from the prior quarter, with a current cash balance of almost $785 million. The company entered a new seven-year $368.4 million credit facility in September at 140 basis points over SOFRabout 60 points better than the 2023 facilitywith a $154 million revolver and $200 million accordion. Pro forma debt was $469 million, and Dorian currently has net cash of about $320 million with an all-in debt cost of 4.94%.

Q: What is the outlook for vessel sales, newbuildings, and the dividend? A: CFO Theodore Young said October sales of the Claremont and Captain John MP generated about $167.4 million in proceeds before commissions, with expected gains in excess of $88 million to be reflected next quarter. Dorian ordered three 90,000 CBM dual-fuel Panamax VLGCs at Hanwha Ocean for delivery in 2030 at about $338 million, bringing total newbuildings to four. The $1.25 per share regular dividend is the 20th consecutive, and including the irregular dividend, total dividends paid are nearly $865 million; Young said the dividend reflects a constructive market outlook while preserving flexibility for fleet reinvestment.

Q: What is the cost guidance for the coming year? A: CFO Theodore Young guided cash cost per day of approximately $27,000 for the coming year, with the slight increase versus prior guidance largely due to fewer vessel days following vessel sales. Daily OpEx for the quarter was $10,273 excluding dry docking, and time charter-in expense is expected to decrease to about $29,954 per TC-in day, or roughly $13.8 million quarterly, after redelivering one vessel.

Q: How are fuel efficiency initiatives and scrubbers performing amid elevated bunker prices? A: Head of Energy Transition John Lycouris said 14 of the 22 commercially operated vessels are scrubber-fitted and five are dual-fuel LPG. Scrubber savings in the quarter were the highest in 11 quarters at approximately $4,174 per calendar day per vessel net of operating expenses, with the Hi-5 spread averaging $174 per metric ton and LPG versus VLSFO at about $314 per metric ton, making LPG economically attractive for dual-fuel vessels.

Q: What is the company's view on regulatory developments and future fuels? A

For the complete transcript of the earnings call, please refer to the full earnings call transcript .