DorianG (LPG) Q1 Revenue Drops 26%

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]