STAMFORD, Conn. - Dorian LPG Ltd. (NYSE:LPG), a transporter of liquefied petroleum gas, declared an irregular cash dividend of $1.00 per share, totaling a capital return of $42.6 million to shareholders. The dividend is due for payment on August 21, 2024, to shareholders on record as of August 8, 2024. The company also provided a financial and operational outlook for the quarter ending June 30, 2024, with expectations of time charter equivalent revenues ranging between $112.5 million and $114.5 million.
The preliminary unaudited data indicates that vessel operating expenses, including drydock-related costs, are projected to be between $19.5 million and $21.5 million. Charter hire expenses may fall between $9.6 million and $11.6 million, with general and administrative expenses (excluding stock-based compensation and certain cash bonuses) anticipated to be between $5.5 million and $7.5 million. Stock-based compensation and certain cash bonuses are expected to range from $3.8 million to $4.2 million.
The company's operational performance showed a utilization rate of 90.4%, with 2,056 operating days out of 2,275 available days. Dorian LPG also reported cash and cash equivalents between $352.3 million and $354.3 million and long-term debt obligations before the effect of deferred financing fees ranging from $596.1 million to $598.1 million.
Dorian LPG is recognized as a leading owner and operator of modern Very Large Gas Carriers (VLGCs) and currently operates a fleet of twenty-five VLGCs.
In other recent news, Dorian LPG has announced a record net income and a robust 30% return on book equity for the financial year 2024. The company also reported a payout of over $160 million in dividends to shareholders and plans to continue this trend based on future financial performance.
In addition, Dorian LPG intends to conduct a public offering of 2 million common shares, with Jefferies LLC and SEB serving as bookrunning managers. The offering also includes a 30-day option for underwriters to purchase up to an additional 300,000 shares.
The company is expanding its fleet in response to a resilient LPG market and increased demand, with a positive outlook on the future of Very Large Gas Carriers (VLGCs) and the ammonia trade.
Dorian LPG has also shown financial strength with $282.5 million in free cash and $294 million in total liquidity, along with an improved debt-to-total book capitalization ratio of 37.4%. The company is committed to sustainability, with plans to retrofit vessels for ammonia cargo.
InvestingPro Insights
Dorian LPG Ltd. (NYSE:LPG) not only rewards its shareholders with significant dividends but also stands out with its financial robustness. According to InvestingPro data, the company has a market capitalization of approximately $1.71 billion, showcasing its substantial size in the industry. With a P/E ratio of 5.27 and an adjusted P/E ratio for the last twelve months as of Q4 2024 at 5.61, the company presents an attractive valuation relative to its earnings.
Moreover, Dorian LPG's strong performance is reflected in its impressive revenue growth of 44.3% over the last twelve months as of Q4 2024, signaling a robust expansion in its business operations. The company's dividend yield as of 2024 stands at a notable 9.96%, which is particularly appealing for income-focused investors. This is coupled with a substantial return on assets of 17.34%, indicating efficient utilization of its assets to generate earnings.
InvestingPro Tips further highlight that Dorian LPG has been profitable over the last twelve months and analysts predict profitability to continue this year. Additionally, the company has maintained a moderate level of debt, ensuring financial stability. For investors seeking more in-depth analysis, there are 7 additional tips available on InvestingPro, which can be accessed by using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
As the company prepares to share its unaudited financial results, these metrics and insights from InvestingPro provide a solid foundation for understanding Dorian LPG's financial health and future prospects.
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