Dorian LPG Reports First Quarter Fiscal 2026 Financial Results and Declares $0.60 Irregular Dividend, Returning $25.6 Million to Shareholders
Dorian LPG Ltd., a leading owner and operator of modern very large gas carriers (VLGCs), today announced its financial results for the first quarter of fiscal year 2026, which ended on June 30, 2025. As part of its ongoing strategy to deliver value to shareholders, the Company also declared an irregular cash dividend of $0.60 per share, representing a capital return of approximately $25.6 million.
The dividend will be payable on or around August 27, 2025, to all shareholders of record as of the close of business on August 12, 2025. This latest dividend follows a prior irregular cash dividend of $21.3 million paid in May 2025, reinforcing the Company’s focus on balancing capital discipline with shareholder returns.
Key Financial and Operational Highlights for Q1 FY2026
- Total Revenues: $84.2 million
- Net Income: $10.1 million or $0.24 per diluted share
- Adjusted Net Income: $11.3 million or $0.27 per diluted share*
- Adjusted EBITDA: $38.6 million*
- Fleet Time Charter Equivalent (TCE) Rate: $39,726 per available day
- Dividend Announced: $0.60 per share, approximately $25.6 million to be paid in August 2025
*Non-GAAP measures. Please refer to the “Financial Information” section of the original press release for detailed reconciliations.
Market Commentary and Outlook
Commenting on the Company’s performance and market conditions, John C. Hadjipateras, Chairman, President, and CEO of Dorian LPG, noted:
“Our first-quarter results reflect the cyclical and often unpredictable nature of the global shipping market. This quarter was affected by a concentrated drydocking schedule and the broader volatility triggered by geopolitical tensions. Despite these challenges, our underlying confidence in the fundamentals of the LPG shipping market remains strong. Our recent charter bookings have been encouraging, and we continue to focus on providing safe, clean, and efficient transportation solutions.”
He continued:
“I would like to express my appreciation for our seafarers and shore-based employees. Their ongoing dedication and professionalism make it possible for Dorian LPG to maintain high service standards through every market cycle.”
Detailed Financial Performance
Dorian LPG reported net income of $10.1 million for the three months ended June 30, 2025, a significant decrease from $51.3 million in the same period the previous year. Earnings per diluted share for Q1 FY2026 stood at $0.24, compared to $1.25 in Q1 FY2025.
When adjusted for non-cash items—primarily a $1.2 million unrealized gain on derivative instruments—adjusted net income totaled $11.3 million, or $0.27 per diluted share, versus $51.7 million or $1.26 per share in the prior year’s first quarter.
The decline in net and adjusted earnings was primarily attributable to:
- A $30.1 million decrease in revenues, driven by lower TCE rates.
- Increased costs, including:
- $6.5 million rise in general and administrative expenses,
- $1.4 million in vessel operating costs,
- $1.2 million in depreciation and amortization,
- $0.5 million in voyage-related expenses, and
- $0.1 million in charter hire expenses.
- Decreases in:
- Realized gains on derivatives by $1.2 million,
- Interest income by $0.9 million, and
- Other gains by $0.3 million.
These were partially offset by a $1.8 million reduction in interest and finance costs.
Time Charter Equivalent and Operating Metrics
The Company’s fleet achieved a TCE rate of $39,726 per available day during the first quarter, a decline of 20.9% compared to $50,243 in the same period last year. This reduction reflects softer market conditions and scheduled vessel downtime due to drydockings.
Meanwhile, vessel operating expenses increased to $11,466 per vessel per calendar day, up from $10,717 during Q1 FY2025. The increase is mainly due to inflationary pressures and higher maintenance activity during the quarter.
Dorian continues to maintain a modern and efficient fleet, and its proactive approach to drydocking ensures long-term reliability and regulatory compliance. However, the temporary concentration of these dockings did impact fleet utilization and profitability for the quarter.
Liquidity and Capital Allocation
The Company ended the quarter with a strong balance sheet and continued to prioritize capital allocation that supports both growth and shareholder returns. With the declaration of another irregular dividend, Dorian LPG has now returned a total of approximately $46.9 million to shareholders through irregular dividends in calendar year 2025 alone.
Dorian has shown flexibility in its dividend approach, choosing to distribute capital based on market performance and operational visibility rather than adhering to a fixed dividend policy. This strategy allows the Company to preserve balance sheet strength while still delivering shareholder value when conditions permit.
Strategic Outlook and Industry Fundamentals
Despite short-term softness, the Company remains optimistic about the medium- to long-term prospects of the liquefied petroleum gas (LPG) shipping market. Rising global demand for cleaner-burning fuels, ongoing U.S. LPG exports, and infrastructure expansion in Asia are expected to continue driving trade flows and vessel demand.
CEO Hadjipateras emphasized:
“We believe that our disciplined approach to growth, modern fleet profile, and ability to adapt quickly to market changes position us well for continued success. Our goal remains clear: to provide high-quality transportation services while delivering long-term value to our shareholders.”
Dorian LPG’s performance in the first quarter of fiscal year 2026 reflects the complex interplay of scheduled operational downtime, fluctuating freight markets, and macroeconomic factors. However, the Company’s decision to return over $25 million to shareholders in the form of a cash dividend highlights its financial stability and confidence in the underlying business.
Looking ahead, Dorian LPG remains focused on maintaining operational excellence, managing costs efficiently, and seizing strategic opportunities in the evolving global LPG transportation market.
Dividend Summary
- Amount: $0.60 per share
- Total Distribution: Approximately $25.6 million
- Record Date: August 12, 2025
- Payment Date: On or about August 27, 2025
For further financial details, including reconciliations of non-GAAP financial measures, please refer to the full press release on Dorian LPG’s Investor Relations website.