Dorian LPG Ltd. Announces Fourth Quarter and Fiscal Year 2026 Financial Results

STAMFORD, Conn.–(BUSINESS WIRE)–Dorian LPG Ltd. (NYSE: LPG) (the “Company,” “Dorian LPG,” “we,” and “our”), a leading owner and operator of modern very large gas carriers (“VLGCs”), today reported its financial results for the three months and fiscal year ended March 31, 2026.

Key Recent Developments

• Declared an irregular cash dividend of $1.00 per share of the Company’s common stock totaling $42.8 million to be paid on or about May 28, 2026 to all shareholders of record as of the close of business on May 18, 2026.
• Prepaid $16.5 million of the 2023 A&R Debt Facility, the proportion related to the 2016-built VLGC Cobra.
• On May 6, 2026, we completed the sale of the 2016-built VLGC Cobra, receiving proceeds net of commissions and fees of $81.9 million.

Highlights for the Fourth Quarter Ended March 31, 2026

• Revenues of $153.3 million.
• Time charter equivalent (“TCE”)⁽¹⁾ per available day rate for our fleet of $63,615.
• Net income of $81.0 million, or $1.90 earnings per diluted share (“EPS”), and adjusted net income⁽¹⁾ of $80.4 million, or $1.89 adjusted diluted earnings per share (“adjusted EPS”)⁽¹⁾.
• Adjusted EBITDA⁽¹⁾ of $106.6 million.
• Took delivery of the dual-fuel newbuilding VLGC/AC Areion in March 2026.
• Entered into a $62.9 million debt financing facility (the “Areion Facility”) to finance the final delivery payment and other fees and expenses associated with the delivery of our VLGC/AC Areion.
• Declared and paid an irregular dividend totaling $29.9 million in February 2026.

Highlights for the Fiscal Year Ended March 31, 2026

• Revenues of $481.5 million.
• TCE⁽¹⁾ per available day rate for our fleet of $52,238.
• Net income of $193.7 million, or $4.54 EPS, and adjusted net income⁽¹⁾ of $194.8 million, or $4.57 adjusted EPS⁽¹⁾.
• Adjusted EBITDA⁽¹⁾ of $305.1 million.
• Declared and paid four irregular dividends totaling $104.7 million.

John Hadjipateras, Chairman, President, and Chief Executive Officer of the Company, commented, “Our strong results for the quarter reflect a healthy freight market and the dedication of our seagoing and shore side employees. Fortunately, none of our people or ships are in the Middle East Gulf. The delivery of the Areion in late March and the sale of the 2015 built Cobra highlight our approach to fleet management. We are optimistic about the prospects of the freight market while cautious of the uncertainty posed by fast evolving geopolitical events. Our declaration of a $1.00 per share irregular dividend reflects our confidence in the long-term sustainability of LPG demand and our company’s prudent approach to capital allocation.”

Fourth Quarter Fiscal Year 2026 Results Summary

Our net income amounted to $81.0 million, or $1.90 per share, for the three months ended March 31, 2026, compared to net income of $8.1 million, or $0.19 per share, for the three months ended March 31, 2025.

Our adjusted net income amounted to $80.4 million, or $1.89 per share, for the three months ended March 31, 2026, compared to adjusted net income of $10.7 million, or $0.25 per share, for the three months ended March 31, 2025. We have adjusted our net income for the three months ended March 31, 2026 for an unrealized gain on derivative instruments of $0.6 million and we adjusted our net income for the three months ended March 31, 2025 for an unrealized loss on derivative instruments of $2.6 million. Please refer to the reconciliation of net income to adjusted net income, which appears later in this press release.

The $69.7 million increase in adjusted net income for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 is primarily attributable to (i) increases of $77.4 million in revenues, $0.8 million in other gain/(loss) net; and $0.1 million in other income related parties; (ii) decreases of $5.3 million in vessel operating expenses, $1.1 million in interest and finance costs; $0.3 million in depreciation and amortization expenses, and $0.3 million in voyage expenses; partially offset by (i) increases of $8.1 million in charter hire expenses, $5.0 million in general and administrative expenses, and $1.1 million in profit sharing expenses, and; (ii) a decreases of $0.8 million in realized gain on derivatives and $0.6 million in interest income.

The TCE rate for our fleet was $63,615 for the three months ended March 31, 2026, an 80.1% increase from the $35,324 TCE rate for the same period in the prior year, as further described in “Revenues” below. Please see footnote 5 to the table in “Financial Information” below for other information related to how we calculate TCE.

Vessel operating expenses per day decreased to $9,780 during the three months ended March 31, 2026 from $12,671 in the same period in the prior year. Please see “Vessel Operating Expenses” below for more information.

Revenues

Revenues, which represent net pool revenues—related party, time charters and other revenues earned by our vessels, were $153.3 million for the three months ended March 31, 2026, an increase of $77.4 million, or 102.0%, from $75.9 million for the three months ended March 31, 2025, primarily due to increased average TCE rates, which rose by $28,291 per available day from $35,324 for the three months ended March 31, 2025 to $63,615 for the three months ended March 31, 2026. This increase was primarily due to increased spot rates, partially offset by the increased bunker prices. The Baltic Exchange Liquid Petroleum Gas Index, an index published daily by the Baltic Exchange for the spot market rate for the benchmark Ras Tanura-Chiba route (expressed as U.S. dollars per metric ton), averaged $51.715 during the three months ended March 31, 2025 compared to an average of $90.453 for the three months ended March 31, 2026. The average price of very low sulfur fuel oil (expressed as U.S. dollars per metric ton) from Singapore and Fujairah increased from $564 during the three months ended March 31, 2025, to $622 during the three months ended March 31, 2026.

Charter Hire Expenses

Charter hire expenses for the vessels chartered in from third parties were $18.4 million for the three months ended March 31, 2026 compared to $10.3 million for the three months ended March 31, 2025. The increase of $8.1 million, or 78.5%, was mainly caused by an increase in time chartered-in days from 360 for the three months ended March 31, 2025 to 540 for the three months ended March 31, 2026 as our chartered-in fleet expanded from four to six vessels and an increase in the average rate per time chartered-in day.

Vessel Operating Expenses

Vessel operating expenses were $18.6 million during the three months ended March 31, 2026, or $9,780 per vessel per calendar day, which is calculated by dividing vessel operating expenses by calendar days for the relevant time period for the technically managed vessels that were in our fleet, and decreased by $5.3 million, or 22.4%, from $23.9 million, or $12,671 per vessel per calendar day, for the three months ended March 31, 2025. The decrease of $2,891 per vessel per calendar day was primarily the result of a decrease of $1,438 per vessel per calendar day of non-capitalizable drydock-related operating expenses. Excluding non-capitalizable drydock-related operating expenses, daily operating expenses decreased by $1,453 from $11,001 for the three months ended March 31, 2025 to $9,548 for the three months ended March 31, 2026, mainly as a result of decreases in spares and stores.

General and Administrative Expenses

General and administrative expenses were $13.3 million for the three months ended March 31, 2026, an increase of $5.0 million, or 60.9%, from $8.3 million for the three months ended March 31, 2025. This increase was mainly driven by increases of (i) $3.5 million in cash bonuses, including $2.8 million in accrued expenses under our Cash Incentive Plan, (ii) $0.8 million in stock-based compensation expense, (iii) $0.3 million in non-capitalizable vessel pre-delivery expenses, and $0.4 million in other general and administrative expenses for the three months ended March 31, 2026 when compared to March 31, 2025.

Interest and Finance Costs

Interest and finance costs amounted to $6.9 million for the three months ended March 31, 2026, a decrease of $1.1 million, or 13.8%, from $8.0 million for the three months ended March 31, 2025. The decrease of $1.1 million during the three months ended March 31, 2026 was mainly due to (i) a decrease of $0.9 million in interest incurred on our long-term debt and (ii) an increase of $0.3 million in capitalized interest; partially offset by an increase of $0.1 million in loan expenses and bank charges. The decrease in interest on our long-term debt was driven by a decrease in average indebtedness, excluding deferred financing fees, decreased from $566.4 million for the three months ended March 31, 2025 to $523.0 million for the three months ended March 31, 2026 as well as a lower average SOFR rate on the 2023 A&R Debt Facility during the three months ended March 31, 2026 when compared to the three months ended March 31, 2025. As of March 31, 2026, the outstanding balance of our long-term debt was $565.8 million.

Interest Income

Interest income amounted to $11.1 million for the year ended March 31, 2026, compared to $15.2 million for the year ended March 31, 2025. The decrease of $4.1 million is mainly attributable to (i) reduced interest rates over the periods presented, and (ii) lower average cash balances for the year ended March 31, 2026 when compared to the year ended March 31, 2025.

Unrealized Gain/(Loss) on Derivatives

Unrealized gain on derivatives amounted to approximately $0.6 million for the three months ended March 31, 2026, compared to loss of $2.6 million for the three months ended March 31, 2025. The $3.2 million favorable change is primarily attributable to changes in forward SOFR yield curves and changes in notional amounts.

Realized Gain on Derivatives

Realized gain on derivatives was $0.3 million for the three months ended March 31, 2026 compared to $1.1 million for the three months ended March 31, 2025. The unfavorable $0.8 million difference is due to a reduction in SOFR rates and notional amounts.

Fiscal Year 2026 Results Summary

Our net income amounted to $193.7 million, or $4.54 per share, for the year ended March 31, 2026, compared to net income of $90.2 million, or $2.14 per share, for the year ended March 31, 2025.

Our adjusted net income amounted to $194.8 million, or $4.57 per share, for the year ended March 31, 2026, compared to adjusted net income of $96.0 million, or $2.27 per share, for the year ended March 31, 2025. We have adjusted our net income for the year ended March 31, 2026 for an unrealized loss on derivatives of $1.2 million and we have adjusted our net income for the year ended March 31, 2025 for an unrealized loss on derivative instruments of $5.8 million. Please refer to the reconciliation of net income to adjusted net income, which appears later in this press release.

The favorable change of $98.8 million in adjusted net income for the year ended March 31, 2026 compared to the year ended March 31, 2025 is primarily attributable to (i) increases in revenues of $128.2 million, $2.4 million in other gain/(loss), net; and $0.1 million in other income related parties; and (ii) decreases of $6.6 million in interest and finance costs, and $4.4 million in vessel operating expenses; partially offset by (i) increases of $19.6 million in charter hire expenses, $10.4 million in general and administrative expenses, $2.1 million in depreciation and amortization expenses, $1.7 million in profit sharing expenses, and $1.2 million in voyage expenses; and (ii) decreases of $4.1 million in interest income; and $3.5 million in realized gain on derivatives.

The TCE rate for our fleet was $52,238 for the year ended March 31, 2026, a 31.3% increase from the $39,778 TCE rate from the prior year, as further described in “Revenues” below. Please see footnote 5 to the table in “Financial Information” below for other information related to how we calculate TCE.

Vessel operating expenses per day decreased to $10,557 in the year ended March 31, 2026 from $11,143 in the prior year. Please see “Vessel Operating Expenses” below for more information.

Revenues

Revenues, which represent net pool revenues—related party, time charters and other revenues, net, were $481.5 million for the year ended March 31, 2026, an increase of $128.2 million, or 36.3%, from $353.3 million for the year ended March 31, 2025, primarily due to higher average TCE rates and increased available days for our fleet. TCE rates rose by $12,460 per available day from $39,778 for the year ended March 31, 2025 to $52,238 for the year ended March 31, 2026, primarily due to higher spot rates and lower bunker prices. The Baltic Exchange Liquid Petroleum Gas Index, an index published daily by the Baltic Exchange for the spot market rate for the benchmark Ras Tanura-Chiba route (expressed as U.S. dollars per metric ton), averaged $57.951 during the year ended March 31, 2025 compared to an average of $74.940 for the year ended March 31, 2026. The average price of very low sulfur fuel oil (expressed as U.S. dollars per metric ton) from Singapore and Fujairah decreased from $591 during the year ended March 31, 2025, to $523 during the year ended March 31, 2026. Additionally, available days for our fleet increased from 8,776 for the year ended March 31, 2025 to 9,113 for the year ended March 31, 2026, mainly driven by an increase in the number of vessels in our fleet, partially offset by higher off-hire days due to drydocking.

Charter Hire Expenses

Charter hire expenses for the vessels chartered in from third parties were $61.0 million for the year ended March 31, 2026 compared to $41.4 million for the year ended March 31, 2025. The increase of $19.6 million, or 47.4%, was mainly caused by an increase in time chartered-in days from 1,460 for the year ended March 31, 2025 to 1,923 for the year ended March 31, 2026 as our chartered-in fleet expanded from four to six vessels and an increase in the average rate per time chartered-in day.

Vessel Operating Expenses

Vessel operating expenses were $81.0 million during the year ended March 31, 2026, or $10,557 per vessel per calendar day, which is calculated by dividing vessel operating expenses by calendar days for the relevant time period for the technically managed vessels that were in our fleet and decreased by $4.4 million, or 5.1%, from $85.4 million, or $11,143 per vessel per calendar day, for the year ended March 31, 2025. The decrease of $586 per vessel per calendar day, from $11,143 for the year ended March 31, 2025 to $10,557 per vessel per calendar day for the year ended March 31, 2026 was mainly as a result of decreases in (i) spares and stores and (ii) repairs and maintenance costs, partially offset by an increase in non-capitalizable drydock-related operating expenses. Excluding non-capitalizable drydock-related operating expenses, daily operating expenses decreased by $712 from $10,383 for the year ended March 31, 2025 to $9,671 for the year ended March 31, 2026, mainly as a result of decreases in (i) spares and stores and (ii) repairs and maintenance costs.

General and Administrative Expenses

General and administrative expenses were $53.0 million for the year ended March 31, 2026, an increase of $10.4 million, or 24.4%, from $42.6 million for the year ended March 31, 2025. The increase was primarily driven by increases of (i) $7.7 million in cash bonuses, including $5.4 million in accrued expenses under our Cash Incentive Plan, (ii) $1.4 million in employee related costs and benefits, (iii) $0.6 million in stock-based compensation expense, (iv) $0.4 million in other general and administrative expenses, and (v) $0.3 million in non-capitalizable vessel pre-delivery expenses.

Interest and Finance Costs

Interest and finance costs amounted to $29.2 million for the year ended March 31, 2026, a decrease of $6.6 million from $35.8 million for the year ended March 31, 2025. The decrease of $6.6 million during the year ended March 31, 2026 was mainly due to (i) a reduction of $4.4 million in interest incurred on our long-term debt , (ii) an increase of $2.1 million in capitalized interest and (iii) a decrease of $0.1 million in amortization of deferred financing fees. The decrease in interest on our long-term debt was driven by a reduction of average indebtedness, excluding deferred financing fees, from $586.6 million for the year ended March 31, 2025 to $535.5 million for the year ended March 31, 2026, as well as a lower average annual SOFR rate on the 2023 A&R Debt Facility during the year ended March 31, 2026 when compared to the year ended March 31, 2025. As of March 31, 2026, the outstanding balance of our long-term debt, excluding deferred financing fees, was $565.8 million.

Interest Income

Interest income amounted to $11.1 million for the year ended March 31, 2026, compared to $15.2 million for the year ended March 31, 2025. The decrease of $4.1 million is mainly attributable to (i) reduced interest rates over the periods presented, and (ii) lower average cash balances for the year ended March 31, 2026 when compared to the year ended March 31, 2025.

Unrealized Loss on Derivatives

Unrealized loss on derivatives amounted to $1.2 million for the year ended March 31, 2026 compared to a loss of $5.8 million for the year ended March 31, 2025. The $4.6 million difference is primarily attributable to changes in forward SOFR yield curves and changes in notional amounts.

Realized Gain on Derivatives

Realized gain on derivatives was $1.8 million for the year ended March 31, 2026, compared to $5.3 million for the year ended March 31, 2025. The unfavorable $3.5 million change is primarily attributable to a $4.0 million reduction of realized gains on our interest rate swaps, partially offset by reduced realized losses on our FFAs of $0.5 million.

Market Outlook Update

The first quarter of 2026 was marked by significant disruption across global LPG and energy markets, driven primarily by escalating geopolitical tensions in the Middle East. The U.S./Israel-Iran conflict effectively disrupted transit through the Strait of Hormuz for much of March 2026, while attacks on regional infrastructure curtailed production and exports of oil, gas, LPG, and petrochemical products.

This disruption followed an advisory of halted exports by Saudi Aramco from its Juaymah NGL facility following damage to a pipe-support trestle announced in late February 2026. The Juaymah/Ras Tanura export terminal typically handles approximately 0.8 million metric tons (“MMT”) of LPG exports per month. At the time of writing, export activity from the region remains limited and the timing for a full restoration of capacity remains uncertain.

As a result of these supply disruptions, energy and LPG prices moved sharply higher during the quarter. Average crude oil prices increased from approximately $64 per barrel in December 2025 to $106 per barrel in March 2026. CFR Japan propane prices rose from $489 per metric ton in January 2026 to more than $730 per metric ton in March 2026, while butane prices increased from $475 per metric ton to over $784 per metric ton during the same period. Similar pricing trends were observed in Northern Europe, with butane demonstrating particular strength due to limited replacement supply into Asia.

In contrast, U.S. Gulf LPG prices increased more moderately, particularly for propane, as higher oil and gas prices incentivized incremental U.S. production. Strong production growth, combined with elevated inventories and terminal constraints, caused propane prices as a percentage of WTI crude to decline from 43% at the beginning of the quarter to approximately 35% in March 2026. However, butane prices strengthened amid rising demand for split cargoes destined for Asian importers seeking alternatives to Middle Eastern supply.

The shift in global trade flows significantly increased pressure on U.S. export infrastructure. Spot terminal fees at the U.S. Gulf Coast rose dramatically from approximately 8.6 cents per gallon (“cpg”) during the first week of January 2026 to nearly 44 cpg by the end of the quarter, reflecting tightening terminal availability and growing export demand.

Global LPG trade patterns shifted materially during the quarter. U.S. LPG exports increased from approximately 5.5 MMT in February 2026 to nearly 6.3 MMT in March 2026, partially offsetting the decline in Middle Eastern exports, which fell from roughly 4 MMT in January 2026 to approximately 1.3 MMT in March 2026. Major importers, particularly India and China, experienced meaningful reductions in import volumes due to the regional supply disruption. India’s LPG imports declined from approximately 2.2 MMT in January 2026 to below 0.5 MMT in March 2026.

Higher feedstock costs and supply dislocations also pressured global petrochemical margins. Naphtha margins in Asia deteriorated sharply, declining from approximately negative $122 per metric ton in January 2026 to below negative $410 per metric ton in March 2026. In Northwest Europe, propane steam cracking margins for ethylene production also turned negative during March 2026. Despite these challenges, propane maintained a substantial cost advantage over naphtha in Asian petrochemical markets, supporting relative demand resilience.

Margins for propane dehydrogenation (“PDH”) producers remained under pressure throughout the quarter. PDH margins declined by more than $100 per metric ton during Q1 2026, ending March at approximately negative $155 per metric ton. As a result, several facilities reportedly reduced operating rates or entered maintenance periods.

VLGC freight markets strengthened considerably during the quarter. The Baltic VLGC Index averaged approximately $95 per metric ton in Q1 2026, compared to approximately $68 per metric ton during Q4 2025. Initial strength was driven by weather-related disruptions in the United States, Panama Canal transit limitations, and broader logistical inefficiencies. Freight markets accelerated further from mid-February onward as geopolitical developments in the Middle East led to vessel rerouting, fleet repositioning, increased ton-mile demand on U.S.–Asia routes, and higher operating costs, including elevated bunker prices, war risk insurance premiums, and congestion-related expenses.

Fleet growth also continued during the quarter, with twelve new VLGCs delivered globally in Q1 2026. Looking ahead, an additional 116 VLGCs/VLACs, representing approximately 10.4 million cubic meters of carrying capacity, are scheduled for delivery through calendar year 2029. The global VLGC fleet currently has an average age of approximately 11.8 years, while the orderbook represents roughly 27.5% of the existing fleet.

The above market outlook update is based on information, data and estimates derived from industry sources available as of the date of this release, and there can be no assurances that such trends will continue or that anticipated developments in freight rates, export volumes, the VLGC orderbook or other market indicators will materialize. This information, data and estimates involve a number of assumptions and limitations, are subject to risks and uncertainties, and are subject to change based on various factors. You are cautioned not to give undue weight to such information, data and estimates.

Contacts

Investor Contact Information
Ted Young

Chief Financial Officer

+1 (203) 674-9900

IR@dorianlpg.com

Media Contact Information
Melissa Daly

MFD Communications

+1 (646) 322-9192

melissa@mfdcommunications.com

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