Dorian LPG (NYSE:LPG) used its fiscal third-quarter 2026 earnings call to highlight continued strength in the very large gas carrier (VLGC) market, a fresh shareholder payout, and progress on fleet upgrades and a forthcoming newbuilding delivery.
Dividend and shareholder returns
Chairman, President and CEO John Hadjipateras opened the call by pointing to the company’s latest dividend declaration. Dorian declared an “irregular” dividend of $0.70 per share, totaling $29.9 million, which management said will be its 18th dividend payment. Hadjipateras said total dividends distributed have surpassed $725 million, and that the company has returned $961 million of capital to shareholders since its IPO.
Quarterly financial and operating performance
Discussing results for the quarter ended December 31, 2025, Young said Dorian achieved time charter equivalent (TCE) earnings of $50,333 per available day. He noted performance was strongest in October, followed by a dip in November and early December, while the current rate environment has “substantially improved.”
The company’s spot trading exposure is primarily through the Helios Pool. Young said the Helios Pool earned a TCE of $50,500 per day during the quarter for spot and contract-of-affreightment voyages. He added that three vessels are on time charter within the pool, leaving the 29-vessel pool with about 90% spot exposure.
Young outlined several cost and cash flow items from the quarter:
- Daily operating expenses: $9,558 (excluding drydocking-related expenses), which he said was roughly flat sequentially and lower over the past two quarters excluding drydock costs.
- Time charter-in expense: $18.2 million for the company’s chartered-in tonnage, consistent with guidance and implying an average charter hire of about $33,000 per day. Young said the quarter reflected full contributions from the Crystal Asteria and BW Tokyo. He noted BW Tokyo is jointly chartered-in with MOL Energia and deployed into the Helios Pool, and Dorian accounts for 100% of revenues and time charter expense, while a new “profit sharing expense” line reflects the partner’s 50% share of net chartering results.
- Total G&A: $10.8 million, with cash G&A of about $8.7 million. Young said about $2 million of that was related to the company’s cash incentive plan, leaving core G&A at roughly $6.7 million.
- Adjusted EBITDA: $74.2 million.
- Cash interest expense: $6.8 million. Young said the company’s current debt cost is about 5%, reflecting a “heavily hedged and fixed” debt profile.
Dorian ended the quarter with $294.5 million of free cash, up about $25 million from the prior quarter, which Young described as notable given the company paid a dividend and a newbuilding installment during the period.
At quarter end, Dorian had $516 million of debt, with debt-to-total book capitalization of 32.2% and net debt-to-total capitalization of 13.8%. Young also cited an undrawn $50 million revolver and a $100 million accordion feature, plus one debt-free vessel, as sources of financial flexibility.
Looking forward, Young said the company expects cash cost per day for the coming year to be approximately $27,000 per day, excluding drydock and scrubber capex. He also guided that time charter-in expense should be about $18 million to $19 million for the quarter ending March 31.
Market conditions: record trade, volatility, and a stronger setup into 2026
Chief Commercial Officer Tim Hansen said global seaborne LPG trade reached a new quarterly record for the December 2025 quarter, reported at more than 37 million tons for the first time. He said North America contributed significantly, with exports exceeding 18.5 million tons, and that the Middle East posted the second-highest quarterly export volume on record.
Hansen said freight markets were challenged by external factors, including an unexpectedly lower Saudi Contract Price (Saudi CP) for October, which narrowed arbitrage and slowed activity, and retaliatory port service fees implemented in China that affected U.S.-related vessels beginning in mid-October. He said uncertainty around the scope and costs of the fees prompted discussions and rerouting. Hansen added that the market improved after a U.S.-China summit in Busan produced an agreement to suspend the port service fees for both countries until November 9, 2026, and as the backlog of unfixed vessels cleared through November.
While the quarter traded with a lower average Baltic Index than the prior quarter, Hansen said the market regained upward momentum heading into 2026. He said roughly 36 VLGCs (including one of Dorian’s) are expected to require absorption in 2026, and while geopolitical impacts remain possible, the “fundamental attractiveness” of LPG and the VLGC market’s ability to adjust support his view that risks can be mitigated and opportunities captured.
In the Q&A, Hansen attributed the recent “counterseasonal” strength in spot rates to spillover from reduced activity and uncertainty in late 2025—along with issues such as fog in the U.S. Gulf—followed by a resumption of cargo liftings as conditions cleared and market participants adjusted. He said production levels have been increasing and “surprising to the upside,” and added that Dorian is “pretty positive for 2026.”
Young said the company plans to provide forward-booking information later in the quarter, arguing it is more useful once more of the quarter is booked, given the sector’s volatility.
Fleet upgrades, efficiency efforts, and a newbuilding delivery
On operations, Hadjipateras said Dorian completed 12 drydockings over the past year, with one more scheduled for the current month to complete the fleet’s drydocking cycle. He said most vessels have been fitted with energy-saving devices and silicone paint, which he expects will deliver meaningful cost savings and emissions reductions.
Head of Energy Transition John Lycouris said Dorian operates 16 scrubber-fitted vessels and five dual-fuel LPG vessels. For the fiscal third quarter of 2026, he said vessel savings from scrubbers totaled $1,116,000, or about $933 per calendar day, net of scrubber operating expenses. Lycouris said lower oil prices and a lack of geopolitical events reduced bunker prices and contributed to lower scrubber savings during the period.
Lycouris also provided fuel differential figures cited on the call: high sulfur fuel oil versus very low sulfur fuel oil averaged a differential of $57 per metric ton, while the differential of LPG as fuel versus very low sulfur fuel oil was about $104 per metric ton, which he said made LPG economically attractive for dual-fuel vessels.
During the quarter, three vessels completed special survey and drydocking, including one upgraded for the carriage of ammonia cargo. Lycouris said that with the final special survey and drydock of the last “C-type” vessel this month, Dorian will have completed the entire drydocking cycle for its 2014- and 2016-built ships.
The company also discussed a newbuilding scheduled for delivery. Management said Dorian expects to take delivery at the end of March 2026 of a 93,000 cubic meter vessel from Hanwha Ocean in South Korea, describing it as a VLGC/VLAC combined ship. Lycouris said it is an LPG dual-fuel vessel fitted with a hybrid scrubber and alternative marine power. Young said Dorian expects to pay about $62 million in cash at closing and expects to enter into a loan facility to finance the payment; in the Q&A he reiterated that the company plans to finance the remaining payment and will provide more detail closer to delivery.
On emissions performance, Lycouris said the company’s average fleet annual efficiency ratio (AER) for full-year 2025 was 6.24, which he said was 10.4% better than the IMO’s required target for 2025 of 6.96. He also noted that in late 2025 the IMO’s Marine Environment Protection Committee delayed approval of MARPOL Annex VI changes by one year, which Dorian views positively as it allows more time for technical review and implementation planning. He said MEPC 84 is scheduled for spring 2026 and is expected to focus on implementation guidelines for the Net Zero Framework.
In response to a question about efficiency investments, Lycouris said energy-saving devices generally provide around a 5% improvement, with silicone paints providing a similar figure. He said the payback for many of these low-cost measures is generally within a year, while scrubber payback is longer.
About Dorian LPG (NYSE:LPG)
Dorian LPG Ltd., incorporated in Bermuda and headquartered in Greenwich, Connecticut, is a leading owner and operator of modern very large gas carriers (VLGCs). The company specializes in the maritime transportation of liquefied petroleum gas (LPG), primarily propane and butane, for energy producers, commodity traders and trading houses around the world.
Dorian LPG’s fleet comprises over 30 state-of-the-art VLGCs, each designed for fuel efficiency and environmental performance. These vessels operate under medium- and long-term time charter agreements, providing predictable employment and supporting a stable charter revenue profile through contracts with major international energy companies.
The company serves global energy markets by transporting LPG cargoes along major trade routes linking production centers in the Middle East, U.S.
