Dorian LPG shares rise after beating Street's revenue and profit estimates for fiscal 3Q

Dorian LPG Ltd (NYSE:LPG), a liquified petroleum gas shipping company, beat Wall Street’s revenue and profit estimates for the fiscal third quarter as it entered into a contract for three more exhaust gas cleaning systems.

Looking ahead, CEO John Hadjipateras is optimistic about growth in demand from Asia and expects that 12 of the company’s 22 ships will be fitted with exhaust gas cleaning systems, commonly referred to as scrubbers, in the near-term. “We believe this will enhance the competitive advantage we have as the owners and operators of the most modern ECO fleet amongst our peers,” he said.

READ: Dorian LPG’s fleet to command premium once new regulations kick in to reduce sulphur emissions

The company’s revenue – which includes all sales earned by vessels – came to $55.1 million in the quarter, which beat the consensus of $47.83 million analysts had expected. Its net loss was $6.2 million, or $0.11 per share compared with net income of $1.7 million, or $0.03 per share, in the year-ago quarter.

On an adjusted basis, its net income of $0.05 million, or $0.01 per share, just beat the consensus of a break-even level analysts had predicted.

Investors applauded the results, sending Dorian shares up 2.4% to $5.66 before the opening bell on Monday.

A big market change in the fourth calendar quarter of last year was the decline in crude oil prices with Brent, the international benchmark, finishing the year below $51 per barrel. As a result, global liquified petroleum gas followed the downward trend.

The liquified petroleum gas shipping market historically has been stronger in the spring and summer months in anticipation of increased consumption of propane and butane for heating during the winter months. So, demand for Dorian’s vessels tend to be stronger in the quarters ending June 30 and September 30 and relatively weaker during the quarters ending December 31 and March 31.

Based in Stamford, Connecticut, Dorian LPG is a liquefied petroleum gas shipping company and an operator of very large gas carriers (VLGCs). Dorian LPG’s fleet consists of 22 modern VLGCs and the company also has offices in London, Copenhagen and Athens.

Contact Ellen Kelleher at [email protected]

Story by ProactiveInvestors