Dorian LPG Posts Second Consecutive Record Profit Amid Middle East Conflict

Dorian LPG, owner and operator of about 25 VLGCs, announced its second consecutive record profit, driven by the Middle East conflict, which has pushed up both freight rates and the value of the vessels the company sells.

In the second quarter of fiscal year 2027, covering the three months ended September 30, 2026, Dorian LPG posted revenue of $221.3 million and a TCE rate of $96,990 per available fleet day, up 80.5% from $53,725 in the same period a year earlier. Net income came in at $213.9 million, or $4.98 per diluted share, compared with $55.4 million, or $1.30 per share, a year earlier. Adjusted net income reached $148.5 million, and adjusted EBITDA was $242.0 million.

In October 2026, the company completed the sale of the 2007-built VLGC Captain John NP for $77.0 million net of commission, and of the 2015-built VLGC Clermont for $90.4 million. In July, it had already sold the VLGCs Corsair and Constellation, generating gains of $30.1 million and $33.5 million, respectively. Dorian LPG also declared an irregular cash dividend of $53.7 million, or $1.25 per share, payable on November 24, 2026.

Chairman and CEO John C. Hadjipateras noted that the fresh highs in the freight market, together with gains on vessel sales, are reflected in the company's record results, and said that fleet renewal and expansion remains disciplined. In August, the company signed contracts for three new dual-fuel Panamax VLGCs with Hanwha Ocean, with delivery expected from 2030. According to Lloyd's List, Hadjipateras said that a potential peace in the Middle East would not pose a threat to VLGC trade, and cited the reduction in cargoes from the United States as the most interesting development following a quarter of record spot rates.

The effective closure of the Strait of Hormuz and the loss of supply from the Middle East persisted throughout the third calendar quarter of 2026, fueling market volatility. The Baltic Exchange index for the Ras Tanura-Chiba route averaged $228,915 per metric ton in that period, compared with $81,320 a year earlier, while the price of very low sulfur fuel oil rose from $505 to $826 per metric ton over the same span.