Gas operator Dorian's LPG Q1 revenue misses expectations, drops 26.4% yr/yr

Overview

• Dorian LPG fiscal Q1 revenue misses analyst expectations, declining 26.4% yr/yr

• Adjusted EPS for fiscal Q1 misses consensus, impacted by market volatility and expenses

• Company declares irregular cash dividend of $0.60 per share, totaling $25.6 mln

Outlook

• Dorian LPG cites positive outlook despite market volatility

Result Drivers

• DRYDOCKING IMPACT - Heavy drydocking schedule contributed to reduced available days and increased operating expenses, per CEO John C. Hadjipateras

• MARKET VOLATILITY - Geopolitical movements led to acute volatility in freight markets, impacting TCE rates, per CEO John C. Hadjipateras

• EXPENSE INCREASES - General and administrative expenses rose due to increased cash bonuses and stock-based compensation

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the oil & gas transportation services peer group is "buy"

• Wall Street's median 12-month price target for Dorian LPG Ltd is $31.00, about 7.1% above its July 31 closing price of $28.79

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBw7y4Mfpa