Dorian LPG Stock Nearing Buy Point Amid Strong Fundamentals

Dorian LPG (LPG) is currently approaching a buy point, showcasing resilience in the face of recent market volatility. The Connecticut-based company, known for operating a fleet of 25 very large gas carriers (VLGCs), has reported strong financials driven by robust Time Charter Equivalent (TCE) rates.

In the last quarter, Dorian LPG saw a significant 44.7% increase in TCE rates compared to the previous year, reaching $76,337 per day. This surge in rates translated to a 58% growth in revenue, totaling $163.1 million for the quarter, while earnings per share more than doubled to $2.62.

Despite a recent dip in TCE spot rates at the beginning of 2024, the company remains optimistic about the long-term outlook for the LPG market. Dorian LPG’s positive outlook is also bolstered by the expected growth in demand from Asia, particularly China and India, as well as the potential for ammonia transportation.

The company recently announced plans to produce a Very Large Gas Carrier/Ammonia Carrier set to be delivered in the fall of 2026, further highlighting its commitment to future growth opportunities.

On Thursday, Dorian LPG stock (LPG) rose 3.1% to $42.37, edging closer to a buy point. The stock has demonstrated steady performance, with a notable 131% gain last year amid rising TCE prices. While earnings per share are expected to dip in fiscal 2025, the company’s strategic initiatives and market conditions point towards a promising future.

Amidst a challenging market environment, Dorian LPG continues to navigate the waters with resilience. The stock’s steady ascent, supported by strong fundamentals and strategic investments, sets it apart in the shipping industry.

Furthermore, Dorian LPG’s consistent outperformance is reflected in its stock’s relative strength against the S&P 500, underlining its strong position in the market.