Core Insights - Dorian LPG is currently outperforming its peers in the Transportation sector, with a year-to-date return of 23.6% compared to an average loss of 4.1% for the sector [4] - The company holds a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook and improving analyst sentiment, with a consensus estimate for full-year earnings increasing by 83.6% over the past three months [3] Company Performance - Dorian LPG is one of 122 stocks in the Transportation sector, which is ranked 13 in the Zacks Sector Rank [2] - The company belongs to the Transportation - Shipping industry, which includes 38 stocks and is currently ranked 152 in the Zacks Industry Rank, with an average loss of 1.2% this year [5] Comparative Analysis - Another outperforming stock in the Transportation sector is SkyWest, which has a year-to-date increase of 16% and also holds a Zacks Rank of 1 (Strong Buy) [4][5] - The Transportation - Airline industry, where SkyWest operates, has 25 stocks and is ranked 98, with an overall increase of 10% since the beginning of the year [6]

Group 1 - BW LPG Limited (NYSE: BWLP) has a strong dividend policy that is expected to ensure that the high rates from Very Large Gas Carriers (VLGCs) are passed directly to shareholders, with a current leverage translating to a 75% payout [1] - The second quarter is anticipated to be weak, indicating potential challenges ahead for the company [1] - The analyst has a diverse professional background across various industries, which contributes to a comprehensive understanding of market dynamics [1] Group 2 - The analyst has been actively investing for over a decade, focusing on cyclical industries while maintaining a diversified portfolio that includes bonds, commodities, and forex [1] - There is an emphasis on the potential for significant returns in cyclical sectors during periods of economic recovery and growth [1] - The importance of balancing risk is acknowledged, leading to the incorporation of fixed-income investments [1]

[PART I. FINANCIAL INFORMATION](index=11&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=11&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Unaudited Q2 2025 financial statements reveal decreased net income, cash flow from operations, and slightly reduced total assets [Unaudited Condensed Consolidated Balance Sheets](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $1.749 billion as of June 30, 2025, with liabilities and equity also slightly reduced Condensed Consolidated Balance Sheet Data (in USD) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | **Total Current Assets** | $371,659,818 | $382,356,404 | | **Total Assets** | $1,749,083,305 | $1,778,660,280 | | **Total Current Liabilities** | $111,845,782 | $107,884,142 | | **Total Liabilities** | $714,283,780 | $732,554,095 | | **Total Shareholders' Equity** | $1,034,799,525 | $1,046,106,185 | [Unaudited Condensed Consolidated Statements of Operations](index=12&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 net income sharply declined to $10.1 million from $51.3 million, primarily due to lower revenues and higher expenses Consolidated Statements of Operations Highlights (in USD) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | **Total Revenues** | $84,211,966 | $114,353,042 | | **Total Expenses** | $69,265,521 | $59,525,460 | | **Operating Income** | $15,591,809 | $55,473,525 | | **Net Income** | $10,082,101 | $51,288,140 | | **EPS - Diluted** | $0.24 | $1.25 | [Unaudited Condensed Consolidated Statements of Shareholders' Equity](index=13&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity decreased to $1.035 billion, mainly from dividends and stock repurchases, partially offset by net income - Key changes in shareholders' equity for the quarter ended June 30, 2025 included: net income of **+$10.1 million**, dividend payment of **-$21.3 million**, and purchase of treasury stock of **-$1.8 million**[21](index=21&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly decreased to $0.8 million, with financing activities leading to a net decrease in cash Consolidated Statements of Cash Flows Highlights (in USD) | Cash Flow Activity | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $814,474 | $41,224,784 | | **Net cash used in investing activities** | ($3,056,789) | ($1,251,982) | | **Net cash provided by/(used in) financing activities** | ($36,999,660) | $30,830,300 | | **Net increase/(decrease) in cash** | ($38,950,698) | $70,778,056 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the 26-vessel VLGC fleet, newbuilding, Helios Pool JV, debt, and dividend declarations - As of June 30, 2025, the company's fleet consists of **26 VLGCs**, with one newbuilding Very Large Gas Carrier / Ammonia Carrier (VLGC/AC) of **93,000 cbm capacity** expected for delivery in the second calendar quarter of 2026[24](index=24&type=chunk) - The company holds a **50% interest** in the Helios LPG Pool, a joint venture with MOL Energia, which operated **29 VLGCs** as of June 30, 2025, including 26 from Dorian's fleet[44](index=44&type=chunk) Total Debt Obligations (in USD) | Category | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | 2023 A&R Debt Facility | $180,000,000 | $185,000,000 | | Total Japanese Financings | $307,250,806 | $314,152,330 | | BALCAP Facility | $56,202,020 | $58,266,112 | | **Total debt obligations** | **$543,452,826** | **$557,418,442** | - On August 1, 2025, the Board of Directors declared an irregular cash dividend of **$0.60 per share**, totaling approximately **$25.6 million**, payable around August 27, 2025[91](index=91&type=chunk) [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=33&type=section&id=MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management attributes 26.4% revenue decrease to lower TCE rates and fewer available fleet days, with increased operating and administrative expenses [Overview](index=33&type=section&id=Overview) Dorian LPG operates 26 VLGCs in the Helios Pool, with a newbuilding VLGC/AC on order for 2026 delivery - The company's fleet consists of **26 VLGCs** with a total capacity of **~2.2 million cbm** and an average age of **8.7 years**, with all vessels operating within the Helios Pool[93](index=93&type=chunk)[95](index=95&type=chunk) - A newbuilding VLGC/Ammonia Carrier (**93,000 cbm**) is scheduled for delivery in the second calendar quarter of 2026[93](index=93&type=chunk) [Our Fleet](index=34&type=section&id=Our%20Fleet) The fleet, as of July 30, 2025, consists of 21 owned and 5 time chartered-in VLGCs, mostly ECO-design, with most in the Helios Pool Fleet Composition as of July 30, 2025 | Category | Count | Total Capacity (Cbm) | | :--- | :--- | :--- | | Dorian Owned VLGCs | 21 | 1,762,000 | | Time Chartered-in VLGCs | 5 | 424,265 (approx.) | | **Total Fleet** | **26** | **~2,200,000** | [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Q2 2025 revenues decreased 26.4% to $84.2 million due to lower TCE rates, with increased operating and administrative expenses Revenue Comparison (in USD) | Revenue Type | Q1 FY2026 (ended June 30, 2025) | Q1 FY2025 (ended June 30, 2024) | Change (%) | | :--- | :--- | :--- | :--- | | Net pool revenues—related party | $83,842,752 | $109,407,054 | (23.4)% | | **Total Revenues** | **$84,211,966** | **$114,353,042** | **(26.4)%** | - The decrease in revenue was primarily due to TCE rates declining by **$10,517 per available day**, from **$50,243 to $39,726**, driven by lower spot rates[103](index=103&type=chunk) - General and administrative expenses increased by **$6.5 million (62.2%)**, mainly due to a **$5.9 million** increase in cash bonuses resulting from differences in the timing of approvals compared to the prior year[105](index=105&type=chunk) [Operating Statistics and Reconciliation of GAAP to non-GAAP Measures](index=37&type=section&id=Operating%20Statistics%20and%20Reconciliation%20of%20GAAP%20to%20non-GAAP%20Measures) Q2 2025 Adjusted EBITDA was $38.6 million, down from $78.0 million, with the TCE rate significantly declining to $39,726 per day Reconciliation of Net Income to Adjusted EBITDA (in USD) | Line Item | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | Net income | $10,082,101 | $51,288,140 | | Interest and finance costs | $7,714,797 | $9,518,430 | | Unrealized loss on derivatives | $1,183,841 | $421,627 | | Realized gain on interest rate swaps | ($539,429) | ($1,717,249) | | Stock-based compensation expense | $1,757,879 | $1,275,459 | | Depreciation and amortization | $18,379,147 | $17,170,986 | | **Adjusted EBITDA** | **$38,578,336** | **$77,957,393** | Key Operating Statistics | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | Available days | 2,086 | 2,260 | | Time charter equivalent rate (TCE) | $39,726 | $50,243 | | Daily vessel operating expenses | $11,466 | $10,717 | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company held $277.9 million in cash, with future liquidity needs including debt repayments and a newbuilding VLGC/AC commitment - As of June 30, 2025, the company held cash and cash equivalents of **$277.9 million**[120](index=120&type=chunk) - During the quarter, the company repurchased **100,000 shares** for **$1.8 million** under its 2022 Common Share Repurchase Authority[126](index=126&type=chunk) - A dividend of **$0.50 per share** (**$21.3 million** total) was paid in May 2025, and another irregular dividend of **$0.60 per share** (**$25.6 million** total) was declared in August 2025[127](index=127&type=chunk)[128](index=128&type=chunk) - The company has approximately **$86.2 million** in outstanding contractual commitments for its newbuilding VLGC/AC expected for delivery in 2026[140](index=140&type=chunk) [Critical Accounting Estimates](index=47&type=section&id=Critical%20Accounting%20Estimates) The primary critical accounting estimate is long-lived asset impairment, with no impairment charges recognized for VLGCs as of June 30, 2025 - Based on independent appraisals as of June 30, 2025, there were no indications of impairment on any of the company's VLGCs, and no impairment charges were recognized[146](index=146&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=49&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company mitigates interest rate risk on its SOFR-based debt facility using swaps, with a 20 basis point change impacting unhedged interest expense by $0.1 million annually - The company hedges its interest rate risk on the 2023 A&R Debt Facility, where a hypothetical **20 basis point change** in SOFR would result in a **$0.1 million** change in annual interest expense on the unhedged portion of its debt[151](index=151&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=49&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures are effective[152](index=152&type=chunk) - No material changes were made to the company's internal control over financial reporting during the three months ended June 30, 2025[153](index=153&type=chunk) [PART II. OTHER INFORMATION](index=50&type=section&id=PART%20II.%20OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=50&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in ordinary course legal proceedings but is unaware of any material claims requiring financial statement disclosure or provision - The company is not aware of any material legal claims that are reasonably possible or probable and would require disclosure or provision[155](index=155&type=chunk) [ITEM 1A. RISK FACTORS](index=50&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section updates risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended March 31, 2025 - This section serves as an update to the risk factors detailed in the Annual Report on Form 10-K for the year ended March 31, 2025[156](index=156&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=50&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During Q2 2025, the company repurchased 100,000 common shares for $1.8 million, with $94.4 million remaining available under the repurchase program Issuer Purchases of Equity Securities (Quarter ended June 30, 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Maximum Dollar Value Remaining for Repurchase | | :--- | :--- | :--- | :--- | | April 1-30, 2025 | 100,000 | $18.23 | $94,397,162 | | May 1-31, 2025 | 0 | N/A | $94,397,162 | | June 1-30, 2025 | 0 | N/A | $94,397,162 | | **Total** | **100,000** | **$18.23** | **$94,397,162** | [ITEM 5. OTHER INFORMATION](index=50&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025 - No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter[158](index=158&type=chunk) [ITEM 6. EXHIBITS](index=50&type=section&id=ITEM%206.%20EXHIBITS) This section refers to the Exhibit Index, listing all exhibits filed or furnished with the Form 10-Q report, including certifications and XBRL data - A list of exhibits filed with the report is provided, including CEO/CFO certifications and XBRL data[159](index=159&type=chunk)[161](index=161&type=chunk)

Group 1 - Dorian LPG (LPG) is a strong performer in the Transportation sector, with a year-to-date return of approximately 11.1%, significantly outperforming the sector average return of -8.6% [4] - The Zacks Rank for Dorian LPG is 1 (Strong Buy), indicating a positive outlook based on earnings estimates and revisions, with a consensus estimate for full-year earnings increasing by 83.6% over the past three months [3] - Dorian LPG is part of the Transportation - Shipping industry, which has an average return of -2.7% this year, further highlighting LPG's superior performance [5] Group 2 - The Transportation group ranks 14 out of 16 in the Zacks Sector Rank, indicating a relatively lower performance compared to other sectors [2] - SkyWest (SKYW) is another Transportation stock that has outperformed the sector, with a year-to-date return of 9% and a Zacks Rank of 1 (Strong Buy) [4][5] - The Transportation - Airline industry, to which SkyWest belongs, is ranked 89 and has seen a slight increase of 0.3% this year [6]

Core Viewpoint - DorianG reported significant underperformance in Q1 FY2026, with adjusted EPS of $0.27, missing the analyst target of $0.74, and GAAP revenue of $84.2 million, down $30.1 million year-over-year, reflecting pressures from lower shipping rates, reduced vessel availability, and increased operating expenses [1][2]. Financial Performance - Adjusted EPS for Q1 FY26 was $0.27, a decline of 78.6% from $1.26 in Q1 FY25 [2] - GAAP revenue was $84.2 million, down 26.4% from the previous year [2] - Adjusted EBITDA decreased by 50.6% to $38.6 million [2] - Time Charter Equivalent (TCE) rate fell to $39,726 per day, down 20.9% from $50,243 in Q1 FY25 [2] - Available vessel days decreased by 7.7%, from 2,260 in Q1 FY25 to 2,086 in Q1 FY26 [5] Operational Challenges - Revenue decline attributed to lower TCE rates and fewer available vessel days due to a heavy drydocking schedule [5] - General and administrative expenses surged by 62.2% year-over-year, primarily due to increased employee bonuses [6] - Vessel operating expenses rose by 7.0% to $21.9 million, driven by costs associated with drydocking and maintenance [6] Market Conditions - The Baltic Exchange LPG Index averaged $63.50 per metric ton in Q1 FY26, down from $72.67 in Q1 FY25, indicating lower freight rates [7] - Freight rate volatility and rerouted LPG trade flows due to U.S.-China tariffs and Middle East conflicts contributed to uncertainty in the market [7] Strategic Focus - DorianG operates a fleet of 26 modern Very Large Gas Carriers, focusing on fleet management, environmental compliance, and strategic partnerships [3] - The company is committed to maintaining a young, fuel-efficient fleet with emission-reducing technology [4] - The Helios Pool partnership represents approximately 97% of DorianG's revenues for FY2025, central to its business model [9] Future Outlook - Management did not provide formal financial guidance for the next quarter or full year but indicated a positive outlook for bookings early in Q2 FY26 [11] - Investors should monitor the company's ability to manage costs and scheduled drydockings, which will impact vessel availability and day rates [12]

Company Participants - Dorian LPG's conference call featured key executives including John C. Hadjipateras (Chairman, President & CEO), John C. Lycouris (CEO), Taro Rasmussen (Corporate Participant), and Theodore B. Young (CFO) [1][3] Conference Call Overview - The conference call was held to discuss Dorian LPG's first quarter 2026 results, with a reminder that the call is being recorded and a live audio webcast is available on the company's website [1][3] Financial Reporting - Theodore B. Young, the CFO, initiated the discussion on the financial results for the first quarter of 2026, indicating the importance of the financial performance being reviewed [2][3]

Financial Data and Key Metrics Changes - The company reported a TCE (Time Charter Equivalent) per available day of $39,726, despite a heavy drydock schedule resulting in 195 days not available for revenue generation [11] - Adjusted EBITDA for the quarter was $38,600,000, but would have been $49,500,000 after adjustments for bonuses and dry docking expenses [14] - Free cash at the end of the quarter was reported at $278,000,000, with a debt balance of $543,500,000, resulting in a debt to total book capitalization of 34.4% [16][17] Business Line Data and Key Metrics Changes - The Helios Pool reported spot rates for the quarter of about $37,700, indicating strong performance in the charter out portfolio [11] - The company completed 10 of its 12 planned dry dockings for 2025, with two more expected in the upcoming quarter [9][15] - Daily operating expenses (OpEx) for the quarter were $10,108, down from $11,001 in the previous quarter [12] Market Data and Key Metrics Changes - U.S. LPG exports continued a multi-year growth trend, supported by expansions at U.S. fractionation plants and export terminal capacity [7] - Middle Eastern exports increased following the partial unwinding of OPEC plus quotas, contributing to a stable market environment [7][21] - The Eastern market improved by approximately 46% over the quarter, while the Western market improved nearly 16% [25] Company Strategy and Development Direction - The company is focused on returning capital to shareholders, with a dividend of $0.60 per share, totaling $25,600,000, reflecting a commitment to prudent earnings distribution [6][18] - There is an ongoing initiative to convert some VLGCs (Very Large Gas Carriers) to facilitate the carriage of ammonia, enhancing fleet commercial optionality [9][29] - The company aims to balance shareholder distributions, debt reduction, and fleet investment while maintaining a constructive market view [18] Management's Comments on Operating Environment and Future Outlook - Management noted that the market proved resilient, with freight risk strengthening due to healthy arbitrage economics and geopolitical tensions [7] - The company expects a strong increase in rates for the upcoming quarter, with approximately 70% of the pool's fixable days estimated at a TCE in excess of $67,000 per day [12] - Management expressed confidence in the market's adaptability and the ability to recover from external shocks, such as tariffs and geopolitical events [19][23] Other Important Information - The company has returned over $900,000,000 in cash through dividends and share repurchases since inception [16] - The company operates 16 scrubber-fitted vessels and five dual-fuel LPG vessels, focusing on energy efficiency and sustainability [27][30] - The company has developed a decarbonization planning tool to model compliance costs and support long-term value creation [31] Q&A Session Summary Question: What is driving the current market strength? - Management attributed the market strength to the U.S.'s ability to produce and export NGLs, with a positive balance in the market due to incremental growth [36][38] Question: Why is the freight rate capturing a larger share of the export spread? - The increase in terminal capacity has allowed freight rates to capture a larger portion of the arbitrage compared to previous years [39][40] Question: What would happen if ethane trade were disrupted? - Management views ethane carriers as an overhang that could enter the VLGC market if ethane trade were to stop, but they are confident that this scenario is unlikely [46][48]

Financial Data and Key Metrics Changes - The company reported a TCE per available day of $39,726, despite a heavy drydock schedule resulting in 195 days not available for revenue generation [11] - Adjusted EBITDA for the quarter was $38,600,000, but would have been $49,500,000 after adjustments for bonuses and dry docking expenses [14] - Free cash at the end of the quarter was reported at $278,000,000, with a debt balance of $543,500,000, resulting in a debt to total book capitalization of 34.4% [16] Business Line Data and Key Metrics Changes - The Helios Pool reported spot rates for the quarter of about $37,700, indicating strong performance in the charter out portfolio [11] - Daily OpEx for the quarter was $10,108, down from $11,001 in the previous quarter, with spares and stores costs leading the decline [12] Market Data and Key Metrics Changes - U.S. LPG exports continued a multi-year growth trend, supported by ongoing expansion at U.S. fractionation plants and export terminal capacity [7] - The Eastern market improved by approximately 46% over the quarter, while the Western market improved nearly 16% [26] Company Strategy and Development Direction - The company is focused on enhancing energy efficiency and sustainability, with plans to upgrade vessels to carry ammonia cargoes, enhancing commercial optionality [30] - The company aims to balance shareholder distributions, debt reduction, and fleet investment while maintaining a constructive market view [19] Management's Comments on Operating Environment and Future Outlook - Management noted that geopolitical tensions and tariff escalations have created a resilient market, with freight rates strengthening despite uncertainties [7][20] - The company expects continued positive market conditions due to limited new build deliveries and capacity expansion at U.S. Gulf terminals [26] Other Important Information - The company declared a dividend of $0.60 per share, totaling $25,600,000, reflecting a commitment to returning capital to shareholders [6] - The company has completed 10 of its 12 planned dry dockings for 2025, with two more expected to be completed in the upcoming quarter [8] Q&A Session Summary Question: What is driving the current market strength compared to last year? - Management attributed the market strength to the U.S.'s ability to produce and export NGLs, along with the industry's adaptability to trade barriers [36][38] Question: Why is the freight rate capturing a larger share of the export spread? - The increase in terminal capacity has allowed freight rates to capture a larger portion of the arbitrage compared to previous years [39][40] Question: What would happen if ethane trade in the U.S. were to stop? - Management indicated that ethane carriers would likely enter the VLGC market if ethane trade were halted, but they do not foresee this happening due to strong demand from China [48][49]

Financial Performance & Fleet Statistics - Fleet TCE / Available Day 为 $39,726[6] - Fleet OpEx (reported) / Calendar Day 为 $11,466[6] - Fleet OpEx (ex drydock) / Calendar Day 为 $10,108[6] - Helios Pool TCE / Available Day 为 $38,870[9] - Helios Pool Spot + COA TCE / Available Day 为 $37,718[9] - 公司拥有现金和限制性现金总额为 $278 million[7] - 公司总债务为 $543.5 million[8] - 截至2025年6月30日，公司净收入为 $10.082101 million，去年同期为 $51.288140 million[24] Environmental & Sustainability Initiatives - 公司有16艘安装了洗涤器的船舶和5艘双燃料LPG船舶[23] - Calendar 2Q25 (公司 1Q FY26) 洗涤器船舶每日节省的 HSFO 与 LSFO 之间的差额为 $813/日，扣除所有洗涤器运营支出后[23] Global Seaborne Volumes - 全球海运量环比增长3%，同比增长8%[16]

[Executive Summary](index=1&type=section&id=Executive%20Summary) This section provides a high-level overview of Dorian LPG Ltd.'s recent dividend declaration, Q1 FY2026 financial performance, and key insights from the CEO regarding market conditions [Dividend Declaration](index=1&type=section&id=Dividend%20Declaration) Dorian LPG Ltd. declared an irregular cash dividend of $0.60 per share, totaling $25.6 million, payable in August 2025 - Declared an irregular cash dividend of **$0.60 per share**[1](index=1&type=chunk)[2](index=2&type=chunk) - Total capital returned to shareholders: approximately **$25.6 million**[1](index=1&type=chunk)[2](index=2&type=chunk) - Dividend payable on or about August 27, 2025, to shareholders of record as of August 12, 2025[1](index=1&type=chunk)[2](index=2&type=chunk) [Q1 FY2026 Financial Highlights](index=1&type=section&id=Q1%20FY2026%20Financial%20Highlights) For the first quarter of fiscal year 2026, Dorian LPG reported revenues of $84.2 million, a TCE rate of $39,726, and net income of $10.1 million, or $0.24 per diluted share Q1 FY2026 Financial Highlights | Metric | Value | | :-------------------------------- | :---------- | | Revenues | $84.2 million | | Time Charter Equivalent (TCE) rate | $39,726 | | Net income | $10.1 million | | Earnings per diluted share (EPS) | $0.24 | | Adjusted net income | $11.3 million | | Adjusted earnings per diluted share (Adjusted EPS) | $0.27 | | Adjusted EBITDA | $38.6 million | - Declared and paid an irregular cash dividend totaling **$21.3 million** in May 2025[5](index=5&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO noted that Q1 FY2026 results were impacted by a heavy drydocking schedule and market volatility, particularly due to geopolitical movements. Despite this, strong current quarter bookings support a positive outlook rooted in the resilience of the LPG trade - Results impacted by heavy drydocking schedule and market volatility[4](index=4&type=chunk) - Volatility in freight markets was acute due to recent abrupt geopolitical movements[4](index=4&type=chunk) - Bookings for the current quarter are at strong rates, supporting a positive outlook based on the resilience and fundamentals of the LPG trade[4](index=4&type=chunk) [First Quarter Fiscal Year 2026 Financial Results](index=2&type=section&id=First%20Quarter%20Fiscal%20Year%202026%20Financial%20Results) This section details Dorian LPG's Q1 FY2026 financial performance, highlighting significant declines in net income and revenues, alongside changes in operating expenses and other financial metrics [Overall Performance Summary](index=2&type=section&id=Overall%20Performance%20Summary) Net income for Q1 FY2026 significantly decreased to $10.1 million ($0.24 EPS) from $51.3 million ($1.25 EPS) in Q1 FY2025. Adjusted net income also saw a substantial decline, primarily driven by a $30.1 million decrease in revenues and increases in various operating expenses Net Income and EPS Comparison (Q1 FY2026 vs. Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | Change (YoY) | | :-------------------------- | :---------- | :---------- | :----------- | | Net income | $10.1 million | $51.3 million | -$41.2 million | | EPS (diluted) | $0.24 | $1.25 | -$1.01 | | Adjusted net income | $11.3 million | $51.7 million | -$40.4 million | | Adjusted EPS (diluted) | $0.27 | $1.26 | -$0.99 | - The **$40.4 million decrease in adjusted net income** was primarily due to a **$30.1 million decrease in revenues**, increases in general and administrative expenses ($6.5 million), vessel operating expenses ($1.4 million), and depreciation and amortization expenses ($1.2 million)[8](index=8&type=chunk) - TCE rate per available day decreased by **20.9% to $39,726** in Q1 FY2026 from $50,243 in Q1 FY2025[9](index=9&type=chunk) [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Revenues decreased by $30.1 million (26.4%) to $84.2 million in Q1 FY2026, mainly due to reduced average TCE rates and fewer available days. TCE rates declined by $10,517 per available day, influenced by lower spot rates partially offset by lower bunker prices, and available days decreased due to increased drydocking Revenue and TCE Rate Comparison (Q1 FY2026 vs. Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | Change (YoY) | | :---------------- | :---------- | :---------- | :----------- | | Revenues | $84.2 million | $114.3 million | -$30.1 million (-26.4%) | | TCE rate per available day | $39,726 | $50,243 | -$10,517 (-20.9%) | | Available days | 2,086 | 2,260 | -174 | | Baltic Exchange LPG Index (average) | $63.500 | $72.674 | -$9.174 | | Average VLSFO price (average) | $511 | $625 | -$114 | - The reduction in TCE rates was primarily due to lower spot rates, partially offset by lower bunker prices[11](index=11&type=chunk) - Available days for the fleet declined mainly due to an increase in the number of vessels drydocked[11](index=11&type=chunk) [Expense Analysis](index=2&type=section&id=Expense%20Analysis) Total expenses increased by $9.7 million to $69.3 million in Q1 FY2026, driven by higher vessel operating expenses, a significant rise in general and administrative expenses, and increased depreciation and amortization [Vessel Operating Expenses](index=2&type=section&id=Vessel%20Operating%20Expenses) Vessel operating expenses increased by $1.4 million (7.0%) to $21.9 million in Q1 FY2026, with daily expenses rising to $11,466 per vessel per calendar day, primarily due to non-capitalizable drydock-related operating expenses Vessel Operating Expenses Comparison (Q1 FY2026 vs. Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | Change (YoY) | | :-------------------------------- | :---------- | :---------- | :----------- | | Vessel operating expenses | $21.9 million | $20.5 million | +$1.4 million (+7.0%) | | Per vessel per calendar day | $11,466 | $10,717 | +$749 | | Non-capitalizable drydock-related operating expenses (per vessel per calendar day) | +$1,259 | - | +$1,259 | | Daily operating expenses (excluding drydock-related) | $10,108 | $10,617 | -$509 | - Excluding non-capitalizable drydock-related operating expenses, daily operating expenses decreased by **$509**, mainly due to decreases in spares and stores, and repairs and maintenance costs[12](index=12&type=chunk) [General and Administrative Expenses](index=3&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses surged by $6.5 million (62.2%) to $16.9 million in Q1 FY2026, primarily driven by a $5.9 million increase in cash bonuses due to timing differences in approvals General and Administrative Expenses Comparison (Q1 FY2026 vs. Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | Change (YoY) | | :-------------------------------- | :---------- | :---------- | :----------- | | General and administrative expenses | $16.9 million | $10.4 million | +$6.5 million (+62.2%) | | Increase in cash bonuses | +$5.9 million | - | +$5.9 million | | Increase in stock-based compensation | +$0.5 million | - | +$0.5 million | [Interest and Finance Costs](index=3&type=section&id=Interest%20and%20Finance%20Costs) Interest and finance costs decreased by $1.8 million (18.9%) to $7.7 million in Q1 FY2026, mainly due to a reduction in interest on long-term debt, an increase in capitalized interest, and lower loan expenses Interest and Finance Costs Comparison (Q1 FY2026 vs. Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | Change (YoY) | | :------------------------ | :---------- | :---------- | :----------- | | Interest and finance costs | $7.7 million | $9.5 million | -$1.8 million (-18.9%) | | Reduction in interest on long-term debt | -$1.2 million | - | -$1.2 million | | Increase in capitalized interest | +$0.5 million | - | +$0.5 million | - The decrease in interest on long-term debt was driven by a reduction in average indebtedness (from **$606.6 million to $553.0 million**) and a lower SOFR rate[14](index=14&type=chunk) [Other Income and Expenses](index=3&type=section&id=Other%20Income%20and%20Expenses) Other income and expenses saw a net increase in expenses, primarily due to decreased interest income, higher unrealized losses on derivatives, and lower realized gains on derivatives [Interest Income](index=3&type=section&id=Interest%20Income) Interest income decreased by $0.9 million to $2.8 million in Q1 FY2026, mainly due to reduced interest rates and moderately lower average cash balances Interest Income Comparison (Q1 FY2026 vs. Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | Change (YoY) | | :------------- | :---------- | :---------- | :----------- | | Interest income | $2.8 million | $3.7 million | -$0.9 million | - Decrease attributable to reduced interest rates and moderately lower average cash balances[15](index=15&type=chunk) [Unrealized Loss on Derivatives](index=3&type=section&id=Unrealized%20Loss%20on%20Derivatives) Unrealized loss on derivatives increased by $0.8 million to $1.2 million in Q1 FY2026, primarily due to changes in forward SOFR yield curves and notional amounts Unrealized Loss on Derivatives Comparison (Q1 FY2026 vs. Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | Change (YoY) | | :-------------------------- | :---------- | :---------- | :----------- | | Unrealized loss on derivatives | $1.2 million | $0.4 million | +$0.8 million | - Difference primarily attributable to changes in forward SOFR yield curves and changes in notional amounts[16](index=16&type=chunk) [Realized Gain on Derivatives](index=3&type=section&id=Realized%20Gain%20on%20Derivatives) Realized gain on derivatives decreased by $1.2 million to $0.5 million in Q1 FY2026, entirely due to the expiration of three interest rate swaps with lower fixed rates Realized Gain on Derivatives Comparison (Q1 FY2026 vs. Q1 FY2025) | Metric | Q1 FY2026 | Q1 FY2025 | Change (YoY) | | :------------------------ | :---------- | :---------- | :----------- | | Realized gain on derivatives | $0.5 million | $1.7 million | -$1.2 million | - The unfavorable difference is entirely due to the expiration of three interest rate swaps with a lower fixed rate[17](index=17&type=chunk) [Fleet Information](index=4&type=section&id=Fleet%20Information) This section provides an overview of Dorian LPG's current fleet composition, including owned and time-chartered VLGCs, their capacities, and operational characteristics [Current Fleet Details](index=4&type=section&id=Current%20Fleet%20Details) As of July 30, 2025, Dorian LPG's fleet consists of 21 owned VLGCs and 5 time chartered-in VLGCs, totaling 26 vessels with a combined capacity of 2,176,265 Cbm, with many being ECO-type, scrubber-equipped, or dual-fuel capable Dorian LPG Fleet as of July 30, 2025 | Category | Number of Vessels | Total Capacity (Cbm) | | :----------------- | :---------------- | :------------------- | | Dorian VLGCs (Owned) | 21 | 1,762,000 | | Time chartered-in VLGCs | 5 | 414,265 | | **Total Fleet** | **26** | **2,176,265** | - The majority of Dorian VLGCs are ECO vessels, with many equipped with scrubbers or dual-fuel capabilities[20](index=20&type=chunk) - Most vessels operate in the Helios Pool on voyage charters, with two owned vessels (Commodore, Challenger) on Pool-TCO arrangements with time charter-out expirations in Q2 2027 and Q3 2026, respectively[20](index=20&type=chunk)[22](index=22&type=chunk) [Market Outlook & Industry Trends](index=5&type=section&id=Market%20Outlook%20%26%20Industry%20Trends) This section analyzes the geopolitical, economic, and product market factors influencing the VLGC freight market, alongside global fleet developments and seasonality trends [Geopolitical and Economic Factors](index=5&type=section&id=Geopolitical%20and%20Economic%20Factors) Q2 2025 saw significant market volatility driven by geopolitical developments, including U.S.-China tariffs on LPG imports and tensions in the Middle East, which disrupted trade movements and influenced pricing - Geopolitical developments, including U.S.-China tariffs and Middle East tensions, drove market volatility in Q2 2025[26](index=26&type=chunk) - China initially imposed **125% tariffs** on U.S. LPG imports, effectively halting trade, but a 90-day truce reduced tariffs to **10%** in May, restoring market normalcy[26](index=26&type=chunk) - Economic uncertainty led to lower crude oil prices throughout Q2 2025[27](index=27&type=chunk) [LPG Product Market](index=5&type=section&id=LPG%20Product%20Market) Propane and butane prices declined across major regions in Q2 2025 due to falling crude oil prices. Reduced import demand, influenced by tariffs and petrochemical capacity shutdowns in Europe and the Far East, impacted the market, though petrochemical margins generally improved Average Propane Prices (Q2 2025 vs. Q1 2025) | Region | Q2 2025 (Avg $/MT) | Q1 2025 (Avg $/MT) | Change | | :--------------- | :----------------- | :----------------- | :----- | | Northern Europe | $465 | $566 | -$101 | | Far East | $533 | $616 | -$83 | | U.S. Gulf | $408 | $469 | -$61 | - Reduced **10% import tariffs** continued to pressure petrochemical margins and kept overall import demand in check[28](index=28&type=chunk) - Petrochemical capacity shutdowns included Dow's Terneuzen No. 3 cracker (**90,000 tons/month LPG demand loss**) and Wanhua's Yantai facility switching feedstock from propane to ethane[28](index=28&type=chunk) - Petrochemical economics improved in Q2 2025, with average margins for ethylene production via steam cracking for propane rising in Europe and the Far East[29](index=29&type=chunk) [VLGC Freight Market](index=5&type=section&id=VLGC%20Freight%20Market) VLGC freight rates were volatile in Q2 2025, averaging around $63 per metric ton on the Ras Tanura–Chiba route but fluctuating significantly. Geopolitical disruptions and limited fleet additions supported rates despite moderate import demand, leading to an overall increase of approximately $12 per metric ton compared to the previous quarter - VLGC freight rates were volatile in Q2 2025, with the Baltic Index on the Ras Tanura–Chiba route averaging around **$63 per metric ton** but fluctuating between **$30 and $90 per metric ton**[31](index=31&type=chunk) - Geopolitical developments led to multiple vessel redirections and increased idle time, supporting freight rates[31](index=31&type=chunk) - Overall, rates increased by approximately **$12 per metric ton** compared to the previous quarter[31](index=31&type=chunk) [Global VLGC Fleet Development](index=5&type=section&id=Global%20VLGC%20Fleet%20Development) The global VLGC fleet saw a modest expansion with two new vessel deliveries in Q2 2025. An additional 114 VLGCs/VLACs are expected by 2029, representing 28.2% of the current global fleet, with the average age of the fleet now at 10.9 years - Two new vessels were delivered to the global VLGC fleet in Q2 2025[32](index=32&type=chunk) - An additional **114 VLGCs/VLACs (10.2 million cbm)** are expected by calendar year 2029[32](index=32&type=chunk) - The VLGC/VLAC orderbook stands at approximately **28.2% of the global fleet**, and the average age of the global fleet is **10.9 years**[32](index=32&type=chunk) [Seasonality](index=7&type=section&id=Seasonality) Historically, the LPG shipping market is stronger in spring and summer due to anticipated winter heating demand, but recent petrochemical industry buying has smoothed out typical seasonal fluctuations. There is no guarantee this trend will continue, and expiring time charters during weaker fiscal quarters could lead to lower rates or off-hire time - LPG shipping market historically stronger in spring and summer (quarters ending June 30 and September 30) due to increased consumption for heating[34](index=34&type=chunk) - Increased petrochemical industry buying has contributed to less marked seasonality than in the past, but this trend is not guaranteed to continue[34](index=34&type=chunk) - Expiration of time charters during typically weaker fiscal quarters (ending December 31 and March 31) may result in lower re-charter rates or off-hire time[34](index=34&type=chunk) [Detailed Financial Statements and Non-GAAP Reconciliations](index=7&type=section&id=Detailed%20Financial%20Statements%20and%20Non-GAAP%20Reconciliations) This section provides detailed financial statements, including the Statement of Operations and Balance Sheets, along with reconciliations for non-GAAP measures like Adjusted EBITDA, TCE Rate, and Adjusted Net Income/EPS [Statement of Operations](index=7&type=section&id=Statement%20of%20Operations) The Statement of Operations shows a significant decline in net income for the three months ended June 30, 2025, compared to the prior year, driven by lower revenues and increased expenses across several categories Statement of Operations Data (Three months ended June 30) | (in U.S. dollars) | 2025 | 2024 | | :-------------------------------- | :----------- | :----------- | | Revenues | $84,211,966 | $114,353,042 | | Voyage expenses | $1,342,756 | $804,985 | | Charter hire expenses | $10,721,911 | $10,645,140 | | Vessel operating expenses | $21,911,606 | $20,480,279 | | Depreciation and amortization | $18,379,147 | $17,170,986 | | General and administrative expenses | $16,910,101 | $10,424,070 | | Total expenses | $69,265,521 | $59,525,460 | | Operating income | $15,591,809 | $55,473,525 | | Interest and finance costs | $(7,714,797) | $(9,518,430) | | Interest income | $2,843,446 | $3,728,507 | | Unrealized loss on derivatives | $(1,183,841) | $(421,627) | | Realized gain on derivatives | $539,429 | $1,717,249 | | Net income | $10,082,101 | $51,288,140 | | Earnings per common share—diluted | $0.24 | $1.25 | [Adjusted EBITDA Reconciliation](index=7&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA, a non-GAAP measure used to assess financial and operating performance, decreased significantly to $38.6 million in Q1 FY2026 from $78.0 million in Q1 FY2025. The reconciliation adjusts net income for interest, derivatives, stock-based compensation, and depreciation/amortization - Adjusted EBITDA is a non-U.S. GAAP measure used by management and investors to assess financial and operating performance by increasing comparability between periods[35](index=35&type=chunk)[36](index=36&type=chunk) Adjusted EBITDA Reconciliation (Three months ended June 30) | (in U.S. dollars) | 2025 | 2024 | | :-------------------------------- | :----------- | :----------- | | Net income | $10,082,101 | $51,288,140 | | Interest and finance costs | $7,714,797 | $9,518,430 | | Unrealized (gain)/loss on derivatives | $1,183,841 | $421,627 | | Realized gain on interest rate swaps | $(539,429) | $(1,717,249) | | Stock-based compensation expense | $1,757,879 | $1,275,459 | | Depreciation and amortization | $18,379,147 | $17,170,986 | | **Adjusted EBITDA** | **$38,578,336** | **$77,957,393** | [Time Charter Equivalent (TCE) Rate Reconciliation](index=8&type=section&id=Time%20Charter%20Equivalent%20(TCE)%20Rate%20Reconciliation) The TCE rate, a non-GAAP measure of daily revenue performance, decreased to $39,726 in Q1 FY2026. The calculation method has been updated to include unscheduled maintenance in available days, aligning with industry practice and the Helios Pool, which accounts for over 95% of revenue - TCE rate is a non-U.S. GAAP measure of average daily revenue performance, used to compare period-to-period changes despite varying charter types[40](index=40&type=chunk) - The definition of available days has been updated to include unscheduled maintenance, reflecting industry practice and consistency with the Helios Pool[39](index=39&type=chunk)[40](index=40&type=chunk) TCE Rate Reconciliation (Three months ended June 30) | (in U.S. dollars, except available days) | 2025 | 2024 | | :--------------------------------------- | :----------- | :----------- | | Revenues | $84,211,966 | $114,353,042 | | Voyage expenses | $(1,342,756) | $(804,985) | | Time charter equivalent | $82,869,210 | $113,548,057 | | Pool adjustment | $895,366 | $(2,050) | | Time charter equivalent excluding pool adjustment | $83,764,576 | $113,546,007 | | Available days | 2,086 | 2,260 | | **TCE rate** | **$39,726** | **$50,243** | | TCE rate excluding pool adjustment | $40,156 | $50,242 | [Adjusted Net Income and EPS Reconciliation](index=9&type=section&id=Adjusted%20Net%20Income%20and%20EPS%20Reconciliation) Adjusted net income and adjusted EPS, non-GAAP measures, are presented to provide insight into underlying performance. For Q1 FY2026, adjusted net income was $11.3 million ($0.27 adjusted EPS), down from $51.7 million ($1.26 adjusted EPS) in Q1 FY2025, primarily by excluding unrealized loss on derivatives - Adjusted net income and adjusted EPS are non-U.S. GAAP measures useful for understanding underlying performance and business trends[42](index=42&type=chunk) Adjusted Net Income and EPS Reconciliation (Three months ended June 30) | (in U.S. dollars, except share data) | 2025 | 2024 | | :----------------------------------- | :----------- | :----------- | | Net income | $10,082,101 | $51,288,140 | | Unrealized loss on derivatives | $1,183,841 | $421,627 | | **Adjusted net income** | **$11,265,942** | **$51,709,767** | | Earnings per common share—diluted | $0.24 | $1.25 | | Unrealized loss on derivatives (per share) | $0.03 | $0.01 | | **Adjusted earnings per common share—diluted** | **$0.27** | **$1.26** | [Balance Sheets](index=10&type=section&id=Balance%20Sheets) The unaudited balance sheets show a decrease in total assets from $1,778.7 million as of March 31, 2025, to $1,749.1 million as of June 30, 2025, primarily driven by a reduction in cash and cash equivalents and net vessels. Total liabilities also decreased, leading to a slight reduction in total shareholders' equity Unaudited Balance Sheets (As of June 30, 2025, and March 31, 2025) | (in U.S. dollars) | June 30, 2025 | March 31, 2025 | | :------------------------------------------------ | :------------ | :------------- | | Cash and cash equivalents | $277,921,450 | $316,877,584 | | Total current assets | $371,659,818 | $382,356,404 | | Vessels, net | $1,134,400,127 | $1,149,806,782 | | Total assets | $1,749,083,305 | $1,778,660,280 | | Total current liabilities | $111,845,782 | $107,884,142 | | Long-term debt—net | $485,497,697 | $498,773,969 | | Total liabilities | $714,283,780 | $732,554,095 | | Total shareholders' equity | $1,034,799,525 | $1,046,106,185 | [Company Information & Disclosures](index=11&type=section&id=Company%20Information%20%26%20Disclosures) This section provides an overview of Dorian LPG Ltd., including its fleet and global operations, along with important cautionary notes regarding forward-looking statements and dividend declarations [About Dorian LPG Ltd.](index=11&type=section&id=About%20Dorian%20LPG%20Ltd.) Dorian LPG Ltd. is a leading owner and operator of modern Very Large Gas Carriers (VLGCs), with a current fleet of twenty-six vessels, including ECO and dual-fuel VLGCs, operating globally from offices in Stamford, Copenhagen, and Athens - Dorian LPG is a leading owner and operator of modern Very Large Gas Carriers (VLGCs) for global liquefied petroleum gas transport[46](index=46&type=chunk) - Current fleet comprises **twenty-six modern VLGCs**, including twenty ECO VLGCs, five dual-fuel ECO VLGCs, and one modern VLGC[46](index=46&type=chunk) - The company has offices in Stamford, CT, USA; Copenhagen, Denmark; and Athens, Greece[46](index=46&type=chunk) [Forward-Looking Statements and Cautionary Notes](index=11&type=section&id=Forward-Looking%20Statements%20and%20Cautionary%20Notes) This section provides standard disclaimers regarding irregular dividends, which are subject to Board discretion and various factors, and forward-looking statements, which are inherently uncertain and subject to risks that could cause actual results to differ materially - All dividend declarations are subject to the Board of Directors' determination and discretion, based on various factors including financial condition, capital requirements, and contractual restrictions[47](index=47&type=chunk) - Forward-looking statements are predictive in nature and represent current expectations, but are subject to inherent uncertainties, risks, and other factors that could cause actual results to differ materially[48](index=48&type=chunk) - The Company does not assume any obligation to update the information contained in this press release[48](index=48&type=chunk) [Conference Call & Contact Information](index=11&type=section&id=Conference%20Call%20%26%20Contact%20Information) Details for the Q1 FY2026 earnings conference call, including dial-in and webcast access, are provided. Contact information for investor relations is also included - A conference call to discuss results was held on Friday, August 1, 2025, at 10:00 a.m. ET, with replay available until August 8, 2025[44](index=44&type=chunk) - A live webcast of the conference call was available under the investor relations section at www.dorianlpg.com[45](index=45&type=chunk) - Contact for investor relations is Ted Young, Chief Financial Officer, at +1 (203) 674-9900 or IR@dorianlpg.com[49](index=49&type=chunk)