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Friday, June 21, 2024

Dorian LPG Ltd. (LPG): Analysts Adjust Rating to Hold

Dorian LPG Ltd. (NYSE: LPG), a significant player in the liquefied petroleum gas shipping sector, experienced a notable shift in its analyst sentiment as DNB Markets downgraded the company on January 26, 2024. The previous “Buy” rating has been revised to a more cautious “Hold,” accompanied by a price target of $44.

Market Response and Recent Performance

The market responded swiftly to the downgrade, with Dorian LPG’s closing price on January 26, 2024, falling to $39.33, reflecting a loss of -4.21%. The trading volume reached 2.03 million shares, indicating heightened market activity. Despite this, Dorian LPG maintains a market capitalization of $1.59 billion.

Financial and Operational Outlook Update

On January 25, 2024, Dorian LPG provided an update on its financial and operational outlook for the quarter ended December 31, 2023. The company plans to release its unaudited financial results on February 1, 2024, prior to the market open. Preliminary data for the quarter reveals:

  • Time charter equivalent revenues: $161.3M – $163.3M
  • Vessel operating expenses: $18M – $20M
  • Charter hire expenses: $8.25M – $8.45M
  • General and administrative expenses: $6.1M – $6.5M
  • Utilization rate: 93.6%
  • Cash and cash equivalents: $206.5M – $210.5M

Irregular Cash Dividend Announcement

In a surprising move, Dorian LPG’s Board of Directors declared an irregular cash dividend of $1.00 per share on January 24, 2024. The dividend, totaling approximately $40.6 million, will be paid on or about February 27, 2024, to shareholders of record as of February 5, 2024.

About Dorian LPG Ltd.

Dorian LPG is a distinguished liquefied petroleum gas shipping company, known for its ownership and operation of modern Very Large Gas Carriers (VLGCs). With offices in Stamford, Copenhagen, and Athens, the company’s fleet comprises twenty-five modern VLGCs, including four dual-fuel LPG vessels.

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Conclusion

In conclusion, Dorian LPG faces a shift in analyst sentiment from a Buy to a Hold rating, urging investors to reevaluate their positions. As the company prepares to disclose its financial results, market watchers will closely monitor Dorian LPG’s strategic moves in response to this revised outlook.

Timothy Hamilton
Timothy Hamilton
Timothy Hamilton covers business news for our site. With over 10 years of experience in financial news, he holds an MBA from the University of Alaska. He has worked as a web developer, software engineer, and product manager, and has extensive stock market knowledge.

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