Dorian LPG Ltd. (LPG) Q2 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The company's earnings call summary reflects strong financial performance with high TCE revenue and free cash flow, efficient cost management, and a solid shareholder return plan. The Q&A section supports this with management providing clear guidance and explanations. Despite some operational challenges, the overall sentiment is positive, with strategic plans for VLGC market expansion and environmental compliance. Given the market cap, the stock price is likely to react positively, within the 2% to 8% range, over the next two weeks.
Key Financial Performance
Dividend declared $0.65 per share totaling $27.8 million, reflecting a disciplined approach to returning capital to shareholders. This is the 17th dividend payment, bringing total dividends distributed to over $695 million and total capital returned to shareholders to almost $925 million.
TCE revenue per available day $53,725, reflecting a strong rate environment. Each month's TCE during the quarter was sequentially better than the prior months, underscoring favorable market dynamics.
Free cash flow to equity Over $30 million generated during the quarter, attributed to strong market conditions.
Daily OpEx $9,474, excluding dry docking-related expenses, down over 6% from the prior quarter's $10,108. Virtually all major cost categories declined, reflecting efficient cost management.
Time charter in expense $13.7 million or slightly less than $30,000 per day, reflecting the addition of the Crystal Asteria at the end of June and minimal P&L effect from the BW Tokyo entering on the last day of the quarter.
Total G&A $12 million, with cash G&A (excluding noncash compensation expense) at about $7 million. The increase in stock compensation expense noted last quarter will not recur for the rest of the year.
Adjusted EBITDA $85.7 million for the quarter, reflecting strong operational performance.
Total cash interest expense $7 million, with $600,000 capitalized. Current debt cost is about 5.1%, reflecting the heavily hedged and fixed nature of the debt.
Free cash $268.4 million as of September 30, 2025, down about $10 million from the prior quarter due to the payment of the new building installment in September.
Debt balance $530 million, with a debt to total book capitalization of 33.2% and net debt to total cap at 16.4%. The company has an undrawn $50 million revolver and a $100 million accordion feature in its existing loan agreement.
Scrubber vessel savings $1,363,000 or about $1,140 per calendar day per vessel, net of all scrubber operating expenses. Savings were affected by dry docking of several vessels and market volatility.
Fuel differentials High-sulfur fuel oil vs. very low-sulfur fuel oil averaged $74 per metric ton, while LPG as fuel vs. very low-sulfur fuel oil stood at about $132 per metric ton, making LPG economically attractive for dual-fuel vessels.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Ammonia retrofits: One vessel is being upgraded for the carriage of ammonia cargoes during its special survey and dry docking.
Dual-fuel LPG vessels: The company operates 5 dual-fuel LPG vessels, which are economically attractive due to fuel differentials.
VLGC market improvement: The VLGC market improved significantly in the third calendar quarter, with the Baltic Index averaging $68,000 per day, up from $48,000 in the second quarter.
Global seaborne LPG liftings: Reached a record high of 37.21 million tons, supported by record exports from North America and Saudi Arabia.
Panama Canal congestion: Sudden congestion in the Panama Canal led to increased auction fees and tightened vessel supply, impacting the VLGC market positively.
Dry docking program: 10 out of 12 planned dry dockings for 2025 are completed, with the program for 2015-built vessels expected to finish by year-end.
Energy efficiency: The fleet remains compliant with emission frameworks, with significant improvements in emission profiles due to energy-saving devices and premium hull coatings.
Dividend policy: Declared a $0.65 per share dividend, totaling $27.8 million, reflecting a disciplined approach to returning capital to shareholders.
Fleet modernization: Continued investment in maintaining a modern, efficient, and environmentally adaptable fleet, including ammonia retrofits and dual-fuel vessels.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Panama Canal congestion: Sudden spike in Panama Canal congestion caused increased auction fees and delays, complicating voyage spending and tightening vessel supply for loading in September and October.
U.S. port service fees: Introduction of U.S. port service fees effective October 14 led to repositioning of vessels and discounting freight, which pressured the West to East freight market and caused supply imbalances in the Middle East.
Geopolitical uncertainties: Heightened market volatility due to global tariff announcements and geopolitical uncertainties impacted operational costs and market dynamics.
Dry docking program: Unusually large number of dry dockings in 2025 due to 5- and 7.5-year docking cycles increased operational downtime and costs.
Regulatory uncertainty: Postponement of IMO's net zero framework implementation and reliance on regional schemes may heighten regulatory uncertainty and fragment the global regulatory landscape.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Future TCE Revenue Projections: For the quarter ending December 31, 2025, the company estimates fixing over 75% of the fixable days at a TCE of approximately $57,000 per day. This includes both spot fixtures and time charters in the Helios pool.
Dry Docking and Fleet Maintenance: The company plans to complete the drydocking program for its 2015-built vessels by the end of 2025. Two additional dry dockings are anticipated during November and December 2025.
Capital Allocation and Liquidity: The company has a strong financial position with $268.4 million in free cash as of September 30, 2025, and plans to make an additional $12 million payment for newbuilding during the quarter ending December 31, 2025. It also has an undrawn $50 million revolver and a $100 million accordion feature in its loan agreement.
VLGC Market Outlook: The VLGC market fundamentals are expected to remain strong, supported by high U.S. LPG exports and a diverse range of import countries. The delivery schedule of newbuildings remains limited for the rest of 2025, and the relaxation in U.S.-China trade tensions is expected to support market fundamentals.
Environmental and Regulatory Compliance: The company forecasts compliance with IMO's revised CII reduction targets through 2030. It is investing in energy-saving devices, premium hull coatings, and operational enhancements to maintain strong environmental performance.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Dividend Declared: $0.65 per share totaling $27.8 million, reflecting a commitment to returning capital to shareholders. This is the 17th dividend payment, bringing total dividends distributed to over $695 million.
Cumulative Dividends: Since September 2021, $16.95 per share in dividends have been paid, totaling approximately $695 million.
Total Capital Returned: Including share buybacks and open market tender offers, over $925 million has been returned to shareholders.
Dividend Policy: Dividends are irregular and subject to the discretion of the Board, reflecting the irregular nature of VLGC rates and the geopolitical environment.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:What caused the final realized rate to be lower than expected despite strong VLGC spot rates?
A:The discrepancy was due to timing issues, including more off-hire days, later loadings, and slippage from one quarter to the next. Additionally, load-to-discharge accounting and dry docking days affected the revenue and TCE rate.
Q:Is the guidance of $57,000 a reliable barometer for the current quarter?
A:Yes, management believes the guidance of $57,000 should be a reliable barometer for the current quarter, especially with the end of the dry docking program.
Q:What is driving the recent momentum in spot rates despite seasonal downward pressure?
A:The recent momentum in spot rates is attributed to a wait-and-see approach before the U.S. and China meeting in Korea, relief from the postponement of port fees, and the onset of winter, which helped kickstart activity.
Q:Review of Unclear Management Responses
A:Management provided clear answers to all questions and did not avoid giving direct responses.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AER
Accounting Officer
BW Tokyo
CFO Treasurer
Canal congestion
Crystal Asteria
Financial Accounting
GA
Gulf vessel
Hansen
Helios Pool
Index
Principal Financial
TCN
Treasurer Principal
United States
West
agility
ballast
challenge
commitment
contribution
docking program
fee
fleet compliance
gas emission
importer
market fundamental
newbuilding
owner operator
payment dividend
program vessel
rate environment
ship
spike Panama
survey docking
vessel survey
voyage
LPG Transcript
Dorian LPG Ltd. (LPG) Q2 2026 Earnings Call Transcript
Positive11-6
The company's earnings call summary reflects strong financial performance with high TCE revenue and free cash flow, efficient cost management, and a solid shareholder return plan. The Q&A section supports this with management providing clear guidance and explanations. Despite some operational challenges, the overall sentiment is positive, with strategic plans for VLGC market expansion and environmental compliance. Given the market cap, the stock price is likely to react positively, within the 2% to 8% range, over the next two weeks.
Dorian LPG Ltd. (LPG) Q1 2026 Earnings Conference Call Transcript
Unknown8-1
The earnings call reveals mixed signals: strong dividend distribution and a healthy financial position, but challenges from geopolitical tensions and dry docking impacts. The Q&A highlights uncertainties in freight rate dynamics and market volatility. Despite positive revenue expectations and shareholder returns, risks like tariff escalations and regulatory costs persist. The market cap suggests moderate sensitivity, leading to a neutral stock price prediction, as positive and negative factors balance each other out.
Dorian LPG Ltd. (NYSE:LPG) Q4 2025 Earnings Call Transcript
Unknown5-23
The earnings call reveals a mix of challenging factors: missed EPS expectations, significant freight rate volatility, and trade tensions impacting the LPG market. Despite some positive elements, such as improved cash flow and consistent dividends, the negative aspects outweigh them. The Q&A section indicates management's reluctance to provide clear guidance on dividends, adding to uncertainty. With a market cap of $1.78 billion, the stock is likely to react negatively, potentially falling between -2% to -8% over the next two weeks.
Dorian LPG Ltd. (LPG) Q4 2025 Earnings Call Transcript
Unknown5-22
The earnings call highlights strong cash flow, operational efficiency, and shareholder returns, but also points to challenges like rising operational costs and market uncertainties. The Q&A section reveals cautious optimism, with management avoiding clear guidance on dividend increases. The company's market cap suggests moderate sensitivity to these factors. Overall, the mixed signals of strong financials but market challenges and cautious management lead to a neutral sentiment, predicting a stock price movement between -2% and 2%.
LPG Slides
LPG Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
