Dorian LPG Ltd. (NYSE:LPG) reported second-quarter fiscal 2027 earnings and revenue above analysts’ expectations on Thursday, supported by higher liquefied petroleum gas shipping rates and gains from vessel sales.
The shipping company recorded adjusted earnings of $3.46 per share, exceeding the consensus estimate of $2.72 by $0.74. Revenue increased 78.4% year over year to $221.3 million, compared with $124.1 million in the corresponding period last year and analysts’ expectations of $187.72 million.
Despite the results, Dorian LPG shares were marginally lower in premarket trading, declining 0.02% following the announcement.
Second-Quarter Revenue Increases 78.4%
Dorian LPG generated revenue of $221.3 million during the second quarter of fiscal 2027, representing an increase of 78.4% from the previous year.
The result exceeded analysts’ revenue forecast of $187.72 million by approximately $33.6 million.
Adjusted earnings per share reached $3.46, compared with the consensus estimate of $2.72.
The company’s quarterly performance reflected higher freight rates for liquefied petroleum gas transportation, alongside gains recognized from the disposal of two vessels.
Freight market conditions were influenced by geopolitical developments in the Middle East, which contributed to elevated shipping rates during the period.
Freight Rates Climb More Than 80%
Dorian LPG reported a time charter equivalent (TCE) rate per available day of $96,990, representing an 80.5% increase from $53,725 in the corresponding quarter of fiscal 2026.
The TCE rate is a measure used by shipping companies to assess revenue performance across vessel operations.
The increase reflected higher freight rates in the liquefied petroleum gas shipping market during the quarter.
Ongoing geopolitical tensions in the Middle East contributed to freight market conditions, supporting the rates earned by the company’s fleet.
Higher TCE rates were a principal factor behind the increase in quarterly revenue and operating profitability.
The company did not provide a forecast for freight rates in subsequent quarters in the information released.
Net Income Rises to $213.9 Million
Dorian LPG reported net income of $213.9 million, equivalent to $4.98 per diluted share.
This compared with net income of $55.4 million, or $1.30 per diluted share, in the second quarter of fiscal 2026.
Adjusted EBITDA increased to $242.0 million from $85.7 million in the prior-year period.
The results included $63.6 million in gains recognized from the sale of two vessels.
These gains contributed to reported profitability alongside the increase in freight revenue.
The company’s adjusted earnings per share of $3.46 exceeded analysts’ expectations, while reported diluted earnings of $4.98 reflected the broader quarterly net income result.
Vessel Sales Generate $166.4 Million in Proceeds
During the quarter, Dorian LPG completed the sale of two very large gas carriers (VLGCs).
The transactions generated combined proceeds of $166.4 million.
The company recognized gains of $63.6 million from the disposals during the reporting period.
The sales formed part of the company’s fleet-related activity during the quarter, alongside new vessel construction commitments.
Dorian LPG did not provide further details in the announcement about the identities or specifications of the vessels sold.
Company Orders Three Dual-Fuel Panamax VLGCs
Dorian LPG also entered into shipbuilding contracts for three new dual-fuel Panamax very large gas carriers during the quarter.
The vessels are expected to be delivered in 2030.
The contracts represent additions to the company’s future fleet development programme.
The dual-fuel specification allows vessels to operate using more than one type of fuel, providing flexibility in their propulsion systems.
The company did not disclose the total value of the shipbuilding contracts or provide additional details about financing arrangements in the reported information.
The planned deliveries extend the company’s fleet investment commitments into 2030.
Vessel Operating Expenses Decline
Dorian LPG reported lower vessel operating expenses on a per-vessel basis during the second quarter.
Operating expenses averaged $10,264 per vessel per calendar day, compared with $10,705 in the corresponding period last year.
The decrease represented a reduction of $441 per vessel per day, or approximately 4.1%.
Lower daily operating expenses accompanied the increase in freight rates and contributed to the company’s quarterly operating performance.
The combination of higher shipping revenue and lower per-vessel operating costs was reflected in the increase in adjusted EBITDA.
Dorian LPG Declares $1.25 Irregular Dividend
The company declared an irregular cash dividend of $1.25 per share.
The distribution is expected to total approximately $53.7 million.
Dorian LPG said the dividend is payable on or about November 24, 2026.
The payment follows the company’s quarterly financial performance, which included higher freight earnings and proceeds from vessel disposals.
The announcement did not establish a recurring dividend rate or provide guidance for future irregular distributions.
Management Comments on Freight Market Performance
John C. Hadjipateras, Chairman, President and Chief Executive Officer of Dorian LPG, commented on the company’s quarterly results.
“The new highs in the freight market, together with gains from ship sales, are reflected in our record earnings again this quarter,” Hadjipateras said.
The statement highlighted the two principal contributors to the company’s reported earnings: higher freight rates and gains from vessel sales.
The company’s results reflected an 80.5% increase in its average TCE rate per available day, alongside $63.6 million in gains from vessel disposals.
Dorian LPG Outlook
Dorian LPG’s second-quarter fiscal 2027 results showed a 78.4% increase in revenue to $221.3 million and adjusted earnings of $3.46 per share, both exceeding analysts’ forecasts.
Net income reached $213.9 million, while adjusted EBITDA increased to $242.0 million, supported by higher freight rates and vessel sale gains.
The company also completed two vessel disposals for combined proceeds of $166.4 million and entered into contracts for three dual-fuel Panamax VLGCs scheduled for delivery in 2030.
Dorian LPG declared an irregular dividend of $1.25 per share, payable on or about November 24, 2026.
Future financial performance will remain influenced by freight market conditions, vessel operating costs and the company’s fleet management activities.