Could 10%-Yielding Dorian LPG Ltd Stock Soar 40%?
December 7, 2025
Dorian LPG Ltd Stock Up 20% in 2025
Ongoing strong demand for liquified petroleum gas (LPG) continues to make Dorian LPG Ltd (NYSE:LPG) a global LPG marine shipping company and a great option for energy bulls.
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 use in motor engines, as well as for industrial uses.
From 2025 through 2034, the global LPG market is projected to grow at a compound annual growth rate of 3.8% to more than $278.0 billion. (Source: “Liquefied Petroleum Gas (LPG) Market Size, Share, Growth, and Industry Analysis, By Type, By Application, Regional Insights and Forecast to 2034,” Industry Today, November 10, 2025.)
And that’s what makes Dorian LPG Ltd such a compelling play.
Dorian 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 just over two million barrels of oil. (Source: “Investor Presentation November 2025,” Dorian LPG Ltd., last accessed December 1, 2025.)
The company actually said 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.
Dorian’s large commercial footprint also includes being the co-manager of Helios LPG Pool, which operates 30 vessels and is jointly owned with MOL Energia Pte. Ltd.
Solid Q2 Results for Dorian LPG Ltd
Second-quarter revenue, which represents net pool revenues – related party, time charters, and other revenues, increased 50% to $124.1 million. The big increase for the company was primarily a result of higher average time charter equivalent (TCE) rates, which rose 45.2% from $37,010 per day last year to $53,725 during the three months ended September 30, 2025. (Source: “Dorian LPG Ltd. Declares Irregular Cash Dividend of $0.65 Per Share And Announces Second Quarter Fiscal Year 2026 Financial Results,” Dorian LPG Ltd, November 6, 2025.)
Dorian reported second-quarter net income of $55.4 million, or $1.30 per diluted share, a big improvement over second-quarter 2024 net income of $9.4 million, or $0.22 per diluted share.
Adjusted net income came in at $55.8 million, or $1.31 per diluted share, compared to $15.0 million, or $0.35 per diluted share, for the three months ended September 30, 2024.
Irregular Quarterly Dividend of $0.65/Share Declared
Returning value to shareholders is an important part of Dorian’s business. Since its 2014 initial public offering, LPG stock has returned over $875.0 million in cash to shareholders through dividends and buybacks.
Most recently, it paid a dividend of $0.65 per share in early December. This works out to an annual payout of $2.45 per share, for a forward yield of approximately 10%.
Commenting on the dividend, John Hadjipateras, Dorian LPG Ltd’s chairman, president, and chief executive officer, said, “Our Board declared an irregular dividend of $0.65 cents per share reflecting our commitment to delivering value to shareholders, maintaining a solid balance sheet, and our confidence in the fundamentals of the LPG market.”
40% Upside Potential with LPG Stock?
Despite fears of a recession and global trade war, LPG stock has done well on the heels of strong LPG demand. On September 15, the stock hit a fresh 52-week high of $31.99. It has given up some short term ground to profit-taking, but is still trading up roughly 20% year to date and 19% on an annual basis.
Despite the solid S&P 500-thumping gains, the outlook for LPG stock remains bullish, with Wall Street analysts providing a 12-month share price target of $35.00. This points to potential upside of approximately 40%.
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. It reported solid second-quarter financial results, which included earnings of $55.4 million, or $1.30 per diluted share, and daily TCE rates of $53,725.
The outlook for Dorian LPG remains robust. Global Seaborne LPG volumes set a record last quarter, and the freight market improved, supported by record exports from the U.S. and the Middle East.
