Dorian LPG Ltd. Reports Fourth Quarter and Full-Year 2025 Financial Results
Dorian LPG Ltd a leading owner and operator of modern Very Large Gas Carriers (VLGCs), has announced its financial results for the fiscal year and fourth quarter ended March 31, 2025. The company also declared an irregular cash dividend of $0.50 per share, totaling approximately $21.3 million, to be paid on or around May 30, 2025, to shareholders of record as of May 16, 2025.
A Year Marked by Challenges and Resilience
Despite operating in a complex geopolitical and macroeconomic environment and managing a heavy drydock schedule, Dorian LPG demonstrated financial and operational resilience. Chairman, President, and CEO John Hadjipateras reflected on the year, stating, “In a volatile geopolitical and economic environment and with a heavy drydocking schedule, we achieved good results in our financial year 2025. Our capital allocation is focused on shareholder returns and preserving the strength of our balance sheet, enabling us to invest in our people and our business, as well as in fleet renewal and expansion when opportunities arise.”
He further expressed gratitude toward the company’s seafarers and staff for their dedication, emphasizing Dorian’s commitment to safety, reliability, and environmentally responsible shipping. “Though the trade and other important issues that may affect our business are not settled,” Hadjipateras added, “I am confident in the fundamentals of the LPG market and our teams’ readiness to respond constructively.”
Fourth Quarter Financial Performance
For the fourth quarter of fiscal 2025, Dorian LPG reported:
- Total revenues of $75.9 million, down from $141.4 million in Q4 2024—a 46.3% decrease.
- Time Charter Equivalent (TCE) rate of $35,324 per available day, compared to $63,375 in the same period a year ago, representing a 44.3% decline.
- Net income of $8.1 million, or $0.19 per diluted share, compared to $79.2 million, or $1.96 per share, in Q4 2024.
- Adjusted net income of $10.7 million, or $0.25 per adjusted diluted share, versus $77.6 million, or $1.91 per share, in Q4 2024.
- Adjusted EBITDA of $36.6 million.
- A previously declared irregular dividend of $30.0 million was paid in February 2025.
The dramatic year-over-year decrease in adjusted net income of $66.9 million was primarily driven by a sharp drop in revenues and increased vessel operating and voyage expenses. These were only partially offset by reductions in charter hire and finance costs.
The quarter’s operating performance was adversely impacted by lower spot market rates and a decline in the Baltic Exchange Liquid Petroleum Gas Index, which averaged $51,715 compared to $68,429 in the same period last year. On a positive note, the average price of very low sulfur fuel oil dropped from $653 to $556 per metric ton, helping to slightly mitigate cost pressures.
Fiscal Year 2025 Results
Over the full fiscal year ended March 31, 2025, the Company posted:
- Revenues of $353.3 million, a 37% decrease from $560.7 million in the prior year.
- TCE rate of $39,778 per available day, compared to $62,129 in fiscal year 2024.
- Net income of $90.2 million, or $2.14 per diluted share, down from $307.4 million, or $7.60 per share.
- Adjusted net income of $96.0 million, or $2.27 per share, compared to $307.4 million, or $7.60 per share, in FY 2024.
- Adjusted EBITDA of $206.0 million.
- Declared and paid four irregular dividends totaling $156.2 million.
- Successfully issued 2,000,000 common shares at $44.50 per share, raising capital to support strategic initiatives.
The steep $211.4 million drop in adjusted net income was primarily the result of significantly lower average TCE rates, which declined by $22,351 per day year-over-year. This was exacerbated by an increase in vessel operating and administrative expenses.
Cost Analysis and Operating Metrics
Vessel operating expenses for fiscal year 2025 totaled $96.2 million, equating to $11,143 per vessel per calendar day, up from $10,469 the prior year. The rise was largely due to increased non-capitalizable drydock-related costs, crew expenses, and spares and stores.
In the fourth quarter alone, vessel operating expenses rose to $23.9 million, or $12,671 per day, a 17.1% increase compared to Q4 2024. Notably, non-capitalizable drydock-related costs accounted for over half of this increase.
General and administrative expenses for the year were $33.2 million, up $3.6 million from the previous fiscal year. This increase stemmed mainly from higher personnel-related costs, though Q4 2025 saw a $0.2 million decrease compared to the same quarter last year, primarily due to lower stock-based compensation expenses.
Interest and finance costs decreased significantly in fiscal year 2025, totaling $32.5 million compared to $37.2 million in FY 2024. The decline was largely due to lower average outstanding debt and an increase in capitalized interest. The Company reduced its long-term debt from $619.9 million to $566.4 million during the year, with a remaining balance of $557.4 million as of March 31, 2025.
Impact of Derivative Instruments
Dorian LPG recorded an unrealized loss on derivatives of $5.8 million in FY 2025, compared to a negligible gain the year prior. This negative swing reflects shifts in forward SOFR yield curves and changes in the notional amounts of the company’s interest rate hedges. The realized gain on derivatives also declined from $6.3 million in FY 2024 to $4.1 million in FY 2025, contributing further to the decrease in adjusted earnings.
Market Outlook and Strategic Positioning
The LPG shipping market in FY 2025 was marked by weakened spot market rates and lower voyage activity compared to the prior year. However, Dorian LPG remains optimistic about the long-term fundamentals of the market. Demand for liquefied petroleum gas continues to be supported by global energy diversification efforts and the growing need for cleaner-burning fuels in developing markets.
The company’s consistent dividend payments, strong adjusted EBITDA, and continued balance sheet discipline highlight its commitment to shareholder returns and financial prudence. The recent equity raise further strengthens Dorian’s ability to capitalize on future fleet renewal and expansion opportunities, should favorable conditions emerge.
Looking ahead, Dorian LPG is well-positioned to navigate the evolving LPG landscape through its modern fleet, efficient operations, and experienced leadership team. While challenges remain in the form of geopolitical tensions, macroeconomic uncertainties, and fluctuating shipping rates, the Company’s conservative capital strategy and operational agility provide a strong foundation for sustainable long-term growth.