LPG Stock Up 36% Since April
Strong global demand for liquified petroleum gas (LPG) make for the perfect tailwinds for Dorian LPG Ltd (NYSE:LPG), a global LPG marine shipping company.
LPG refers to hydrocarbon gases such as propane and butane, both of which are easily flammable in their liquid states. This makes them ideal for heating and cooking purposes or for motor engines and industrial uses.
From 2024 through 2030, the global LPG market is projected to grow 6.5% to more than $244.0 billion. (Source: “LPG Market Size and Growth Outlook to Reach USD 244.11 Billion by 2030,” Industry Today, February 3, 2025.)
A lot of that demand comes from countries that need to import large quantities of LPG. This includes nations in the Far East, such as China and India. To meet the growing demand for LPG, these countries need to rely heavily on marine shipping vessels.
The U.S. is the world’s largest producer of natural gas, followed by Russia, China, and Iran.
Here in the U.S., natural gas liquids (NGL) production remains resilient, and its growth prospects over the near and long terms appear strong. Thanks to infrastructure expansions, this should result in both LPG production and export growth.
And that’s what makes Dorian LPG Ltd such a compelling play.
Dorian LPG is a LPG shipping company and a leading owner and operator of 25 modern very large gas carriers (VLGCs). These large vessels are capable of carrying up to more than two million barrels of oil. (Source: “Investor Presentation May 2025,” Dorian LPG Ltd, last accessed June 9, 2025.)
The company’s current fleet includes 16-scrubber equipped vessels and four dual-fuel VLGCs. Scrubbers and dual-fuel vessels allow for better optimization, thereby lowering costs and emissions.
According to Dorian LPG, it will be upgrading its VLGCs to ship ammonia to take advantage of the expected growth in the trade of that chemical for the hydrogen economy.
The shipper’s large commercial footprint also includes being the co-manager (along with with MOL Energia Pte. Ltd) of Helios LPG Pool, which operates 28 vessels.
Dorian LPG Ltd Reports Solid 2025 Results
Dorian LPG’s fourth-quarter revenue, which represents net pool revenues (i.e. related party, time charters, and other revenues) were $75.9 million for the three months ended March 31, 2025. This is compared to $141.4 million in the fourth quarter of fiscal 2024, ended March 31, 2024. (Source: “Dorian LPG Ltd. Announces Fourth Quarter and Fiscal Year 2025 Financial Results,” Dorian LPG Ltd, May 22, 2025.)
In the fourth quarter of 2025, Dorian reported net income of $8.1 million, or $0.19 per share, compared to $79.2 million, or $1.96 per share, for the three months ended March 31, 2024.
Adjusted net income came in at $10.7 million, or $0.25 per share, compared to $77.6 million, or $1.91 per share, for the fourth quarter of 2024.
The time charter equivalent rate (TCE) for Dorian LPG’s fleet was $35,324, compared to $63,375 for the same prior-year period.
For fiscal 2025, the company’s revenue was $353.3 million, down from $560.7 million in fiscal 2024. Its net income slipped to $90.2 million, or $2.14 per share, while adjusted net income was $96.0 million, or $2.27 per share, down from $7.60 per share in 2024.
The TCE rate was $39,778 for the year ended March 31, 2025, down from $62,129 in the prior year.
Commenting on the results, John Hadjipateras, Dorian’s chairman, president, and chief executive officer, said, “Despite 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.”
Irregular Quarterly Dividend of $0.50/Share Declared
Returning value to shareholders is an important part of Dorian LPG’s business. Since its 2014 initial public offering, LPG stock has returned over $875.0 million in cash to shareholders through dividends and buybacks.
In fiscal 2025, the company paid four irregular dividends totaling $156.2 million. Most recently, Dorian paid a dividend of $0.50 per share at the end of May. This works out to an annual payout of $3.20 per share, for a forward yield of 14.22%. (Source: “Dorian LPG Ltd. Declares Irregular Cash Dividend of $0.50 Per Share,” Dorian LPG Ltd, May 2, 2025.)
Since September 2021, Dorian LPG has cumulatively paid $15.70 per share in irregular dividends, totaling more than $641.0 million.
In addition to dividends, the company has also repurchased approximately 33% of its own outstanding shares since 2015. In February 2022, the board authorized the repurchase of up to $100.0 million worth of common shares.
In June 2024, it issued two million shares at $44.50 per share, raising net proceeds of $84.4 million.
LPG Stock Has 55% Upside Potential
This year has been a tough one for investors with the stock market experiencing big one-day drops and gains. Until it’s clear what kind of impact tariffs will have on the economy, the markets will continue to experience volatility.
At the same time, it’s important to remember that the stock market is forward-looking. A company can report great results, but weak guidance can hit a stock hard regardless. The share price for LPG has been trending higher since hitting a 52-week low in early April. That’s when President Donald Trump unveiled his global tariffs.
Since then, Dorian LPG has announced “good” fiscal 2025 results, with revenue and earnings being hampered by a heavy but temporary drydocking schedule. This and the company’s fundamentals should help it weather any near-term economic and geopolitical challenges.
This has helped LPG stock rally an impressive 36% since early April.
These issues, combined with strong outlook for NGL demand, bode well for LPG stock, with Wall Street analysts providing a 12-month share price target range of $31.00 to $35.00 per share. This points to potential upside of approximately 37% to 55%.
Chart courtesy of StockCharts.com
The Lowdown on Dorian LPG Ltd
Dorian is an LPG marine shipping company and leading owner and operator of VLGCs. While the company reported good fiscal 2025 results, they were not as impressive as its record fiscal 2024 results.
Moreover, its results were hit by a volatile geopolitical and economic environment and heavy drydocking schedule. All of these are temporary, though. As a result, the outlook for LPG stock remains robust.
That’s why 303 institutional holders are bullish on the stock and its dividend. Some of the biggest institutional holders include BlackRock Inc, The Vanguard Group, Inc., and Charles Schwab Investment Management, Inc. (Source: “Dorian LPG Ltd. (LPG),” Yahoo! Finance, last accessed June 9, 2025.)