Dorian LPG Ltd. — Second Quarter Fiscal Year 2027 Earnings Summary

Financial Performance

• Revenues reached $221.3 million for the three months ended September 30, 2026, a 78.4% increase from $124.1 million in the same period of 2025.
• Net income was $213.9 million ($4.98 per diluted share) for the quarter, compared to $55.4 million ($1.30 per diluted share) in the prior year period.
• Adjusted net income was $148.5 million ($3.46 per diluted share), compared to $55.8 million ($1.31 per diluted share) in the prior year period.
• Adjusted EBITDA totaled $242.0 million, up from $85.7 million in the prior year period.
• Time Charter Equivalent (TCE) rate per available day was $96,990, an 80.5% increase from $53,725 in the prior year period.
• Vessel operating expenses decreased to $18.3 million ($10,264 per vessel per calendar day) from $20.7 million ($10,705 per vessel per calendar day) in the prior year period.
• Charter hire expenses increased to $18.2 million from $13.7 million in the prior year period.
• General and administrative expenses were $14.0 million, an increase of $2.0 million from $12.0 million in the prior year period.
• Interest and finance costs were $8.6 million, an increase of $1.0 million from $7.6 million in the prior year period.
• Gain on disposal of vessels was $63.6 million for the quarter, compared to $0 in the prior year period.
• Interest income was $4.5 million, up from $3.0 million in the prior year period.
• Unrealized gain on derivatives was $1.7 million, compared to a loss of $0.4 million in the prior year period.
• Cash and cash equivalents were $578.8 million as of September 30, 2026, compared to $327.4 million as of March 31, 2026.
• Total assets were $2.03 billion as of September 30, 2026, compared to $1.87 billion as of March 31, 2026.
• Total liabilities were $622.2 million as of September 30, 2026, compared to $732.7 million as of March 31, 2026.
• Total shareholders' equity was $1.41 billion as of September 30, 2026, compared to $1.14 billion as of March 31, 2026.

Guidance and Future Outlook

• The company noted that the effective closure of the Strait of Hormuz and geopolitical tensions in the Middle East continued to drive market volatility and uncertainty throughout Q3 2026.
• Longer voyage times and increased reliance on U.S. supply to Asia kept freight rates elevated.
• Panama Canal delays, high transit fees, and congestion were observed during Q3 2026.
• Chinese LPG imports in Q3 2026 are estimated to have been approximately one MMT higher than in the previous quarter.
• The global VLGC fleet expanded moderately with the delivery of eight new vessels in Q3 2026.
• Approximately 160 VLGCs/VLACs (equivalent to 14.4 million cbm) are scheduled for delivery through calendar year 2030, including 19 new orders placed during the third quarter.
• The average age of the global fleet is approximately 11.7 years, and the combined VLGC/VLAC orderbook stands at around 36.4% of the existing fleet.
• The company stated that its approach to fleet renewal and expansion and new building commitments are disciplined and measured.

Business Segments and Product Lines

• The company owns and operates a fleet of 22 modern VLGCs as of October 30, 2026, with a total capacity of 1,437,000 cbm.
• The fleet includes 5 dual-fuel ECO VLGCs, 16 ECO VLGCs, and 1 modern VLGC.
• The company entered into shipbuilding contracts for three newbuilding dual-fuel Panamax VLGCs in August 2026, expected to be delivered from Hanwha Ocean Co., LTD. in the second, third, and fourth calendar quarters of 2030.
• Vessel _Areion_ is capable of carrying ammonia cargo.
• Vessels _Comet_, _Corvette_, _Commander_, and _Constellation_ are fitted to carry ammonia cargo.
• The company completed the sale of VLGC _Captain John NP_ (2007-built) and VLGC _Clermont_ (2015-built) in October 2026, receiving net proceeds of $77.0 million and $90.4 million, respectively.
• The company completed the sale of VLGC _Corsair_ (2014-built) and VLGC _Constellation_ (2015-built) in July 2026, generating net proceeds of $80.8 million and $85.6 million, respectively, and recognizing gains of $30.1 million and $33.5 million.
• The company has four time chartered-in VLGCs: _Future Diamond_, _HLS Citrine_, _HLS Diamond_, and _Cristobal_, with expiration dates ranging from Q1 2027 to Q3 2030.
• Vessel _BW Tokyo_ is time chartered-in with an expiration in Q2 2028 under a framework agreement where revenues and charter hire-in expenses are split equally with an unrelated third party.

Market and Competitive Landscape

• The Baltic Exchange Liquid Petroleum Gas Index for the Ras Tanura-Chiba route averaged $228.915 per metric ton in Q3 2026, compared to $81.320 in the prior year period.
• Average very low sulfur fuel oil prices increased from $505 per metric ton in Q3 2025 to $826 per metric ton in Q3 2026.
• Propane and butane prices declined in Q3 2026 on both an absolute and crude-relative basis.
• Naphtha margins fell from an average of $400 per metric ton in Q2 2026 to -$228 per metric ton in Q3 2026.
• Ethylene production margins declined sharply due to the strengthening of feedstock flat prices.
• Freight markets were supported by elevated war-risk insurance premiums, higher bunker prices, Panama Canal congestion, and continued reluctance among shipowners to re-enter the Persian Gulf.

Risks and Challenges

• Geopolitical tensions in the Middle East, including attacks along the west coast of Saudi Arabia and the closure of the Strait of Hormuz, have impacted exports and supply chain economics.
• Panama Canal inefficiencies, including low water levels and reduced daily transit capacity, have contributed to longer trade routes and higher costs.
• Seasonality may impact results, as demand for LPG shipping is historically stronger in autumn months, and time charters expiring during weaker quarters (December 31 and March 31) may result in lower rates or off-hire time.
• Forward-looking statements regarding market trends, freight rates, export volumes, and the VLGC orderbook involve assumptions and uncertainties and may not materialize.
• The company has not independently verified third-party information regarding market outlook and undertakes no obligation to update such information.

Management Commentary and Tone

• Chairman, President, and CEO John C. Hadjipateras commented that record earnings were driven by new highs in the freight market and gains from ship sales.
• Management highlighted a disciplined and measured approach to fleet renewal and expansion, consistent with a balanced capital structure and robust balance sheet.
• The CEO expressed relief that seafarers have been kept out of harm's way despite a turbulent geopolitical environment where ships carrying LPG have been targeted.
• Management acknowledged the contribution of their people at sea and on shore to the strong financial results.

Other Key Points

• The company declared an irregular cash dividend totaling approximately $53.7 million ($1.25 per share) to be paid on or about November 24, 2026, to shareholders of record as of November 9, 2026.
• An irregular cash dividend totaling $42.8 million was declared and paid in August 2026.
• The company entered into a new credit facility comprised of a $213.4 million term loan and a $155.1 million revolving credit facility to refinance existing indebtedness, including a $200 million accordion facility for future growth.
• The company repaid $16.0 million of the 2026 Debt Facility's revolver in October 2026.
• The company prepaid the outstanding principal of the 2023 A&R Debt Facility, Corsair Japanese Financing, Cougar Japanese Financing, and BALCAP Facility.
• A conference call to discuss results was held on November 5, 2026, at 10:00 a.m. ET.