Dorian LPG Q2 Net Income Rises to $213.9 Million

Dorian LPG reported sharply higher fiscal second-quarter earnings and operating cash flow, while vessel disposals helped lift its cash balance above total debt. The liquefied petroleum gas carrier operator also recorded strong charter rates, though global seaborne LPG volumes remained below year-earlier levels.

Net income for the three months ended September 30, 2026, rose to $213.9 million from $55.4 million a year earlier. The latest result included a $63.6 million gain on vessel disposals. Net cash provided by operating activities increased to $204.9 million from $46.4 million.

The company ended the quarter with $578.9 million of cash and restricted cash, up from $342.2 million at the beginning of the period. Cash would total $746.3 million on a pro forma basis after vessel-sale proceeds, according to the presentation. Total debt obligations stood at $484.8 million, or $468.8 million pro forma for vessel sales.

Investing activities generated $109.4 million of net cash as $166.4 million in vessel-disposal proceeds more than offset $57.1 million of payments for vessels under construction and other vessel capital expenditures. Financing activities used $77.6 million, including $256.9 million of debt repayments, $43.4 million of dividends and $2.4 million of share repurchases, partly offset by $229.3 million of new long-term borrowings.

Charter rates and fleet operations

Dorian LPG’s fleet generated time-charter-equivalent revenue of $96,990 per available day during the quarter. The Helios LPG Pool produced TCE of $99,915 per available day, while its spot and contract-of-affreightment business generated $115,163 per available day.

Reported fleet operating expenses were $10,264 per calendar day, compared with $10,273 excluding drydock expenses. Helios currently comprises 26 vessels, including 22 operated by Dorian LPG. Seven of the company’s very large gas carriers are operating in the pool under time-charter-out arrangements that provide Dorian LPG with a formula-based share of pool profits.

The broader shipping-volume picture was mixed. Global LPG liftings increased 1% from the previous calendar quarter but fell 13% year over year. U.S. waterborne exports declined 7% sequentially and rose 10% from a year earlier, while Middle East exports climbed 50% quarter over quarter but remained 58% below the prior-year period.

Fuel economics and operating priorities

Fuel-price differentials continued to support the economics of Dorian LPG’s scrubber-equipped and dual-fuel ships. Scrubber vessels generated estimated net savings of $4,174 per calendar day during calendar third-quarter 2026, corresponding to the company’s fiscal second quarter, compared with $1,971 per day in calendar second-quarter 2026.

The average price difference between high-sulfur and low-sulfur fuel oil was about $174 per metric ton. LPG used as fuel was about $314 per metric ton cheaper than low-sulfur fuel oil, making it economically attractive for the company’s dual-fuel vessels. Dorian LPG said each scrubber-equipped ship had achieved average year-to-date net savings of approximately $850,000.

Of the 22 ships operated by the company, 14 are fitted with scrubbers and five are dual-fuel LPG vessels. Management’s longer-term priorities include improving onboard energy efficiency, evaluating technologies that could reduce fuel consumption and emissions, considering lower-carbon and green-fuel alternatives, and monitoring the development of onboard carbon-capture systems.

The company cautioned that forward-looking expectations are subject to operational, financial and other uncertainties. It also noted that its cash dividends are irregular and remain at the board’s discretion based on operating results, financial condition, debt, capital requirements, contractual restrictions and business prospects.