Dorian LPG Extends Record Earnings on Higher Freight

The Tip Desk · November 11, 2026 · 4 min read

Second-quarter fiscal 2027 net income was $213.9 million, or $4.98 a share, as TCE per available day reached $96,990.

Dorian LPG Ltd. (LPG), a leading owner and operator of modern very large gas carriers, reported net income of $213.9 million, or $4.98 a share, for the three months ended September 30, 2026, compared with $55.4 million, or $1.30 a share, a year earlier.

The VLGC operator said the increase in adjusted net income of $92.7 million, to $148.5 million, or $3.46 a share, from $55.8 million, or $1.31 a share, was primarily attributable to $97.2 million higher revenues and $1.5 million higher interest income, partly offset by higher charter hire, profit sharing, general and administrative and interest costs. Adjusted net income excludes a $63.6 million gain on disposal of vessels and a $1.7 million unrealized gain on derivatives.

Revenues were $221.3 million, up 78.4% from $124.1 million a year earlier, primarily due to higher average TCE rates. The TCE rate per available day was $96,990, an 80.5% increase from $53,725 a year earlier. The company said the TCE increase was primarily due to higher spot rates, partially offset by higher bunker prices. The Baltic Exchange LPG Index averaged $228.915 a metric ton in the quarter, versus $81.320 a year earlier.

Sequentially, revenues rose from $187.9 million in the three months ended June 30, 2026, and TCE per available day rose from $75,926. Adjusted EBITDA was $242.0 million, versus $85.7 million a year earlier. Chairman, President and Chief Executive Officer John C. Hadjipateras said new highs in the freight market, together with gains from ship sales, were reflected in record earnings again this quarter.

Available days slightly decreased to 2,272 from 2,290 a year earlier, mainly from fewer vessels, partly offset by fewer off-hire days due to drydocking. Vessel operating expenses were $18.3 million, or $10,264 per vessel per calendar day, down 11.6% from $20.7 million, or $10,705, a year earlier, mainly due to lower non-capitalizable drydock-related operating expenses. Excluding those drydock costs, daily operating expenses rose 8.4% to $10,273 from $9,474, mainly from crew wages and repairs and maintenance.

Charter hire expenses were $18.2 million, up 33.0% from $13.7 million a year earlier, on higher average time-chartered-in rates and more time chartered-in days, 498 versus 461. General and administrative expenses were $14.0 million, up 16.8% from $12.0 million, driven by bonuses, stock-based compensation and employee costs. Interest and finance costs were $8.6 million, up 13.1% from $7.6 million, mainly from higher amortization of deferred financing fees and loan expenses from debt prepayments, partly offset by lower interest on long-term debt as average indebtedness fell to $486.2 million from $539.9 million. Interest income was $4.5 million versus $3.0 million a year earlier, mainly from higher average cash balances.

The company completed the sale of the 2014-built VLGC Corsair in July 2026 for $80.8 million net of commission, recognizing a $30.1 million gain, and the sale of the 2015-built VLGC Constellation for $85.6 million net of commission, recognizing a $33.5 million gain. Gain on disposal of vessels was $63.6 million in the quarter; there was no such gain a year earlier.

In October 2026 the company sold the 2007-built VLGC Captain John NP for $77.0 million net of commission and the 2015-built VLGC Clermont for $90.4 million net of commission, and repaid $16.0 million of the 2026 Debt Facility’s revolver. It entered a new credit facility of a $213.4 million term loan and a $155.1 million revolving credit facility, with a $200 million accordion, to refinance existing indebtedness, and prepaid the 2023 A&R Debt Facility, Corsair and Cougar Japanese financings and the BALCAP Facility.

The company declared an irregular cash dividend of about $53.7 million, or $1.25 a share, to be paid on or about November 24, 2026, versus $42.8 million, or $1.00 a share, declared in the prior quarter. In August 2026 it entered shipbuilding contracts for three newbuilding dual-fuel Panamax VLGCs from Hanwha Ocean, expected in the second, third and fourth calendar quarters of 2030, after one newbuilding order in June 2026.

The company said the effective closure of the Strait of Hormuz continued through the third calendar quarter of 2026, with longer voyage times and increased reliance on U.S. supply to Asia keeping freight rates elevated. VLGC freight rates increased sharply again in that period, with the Baltic Index averaging around $229 a metric ton, up from approximately $190 in the second calendar quarter of 2026 and $95 in the first calendar quarter of 2026.