Raising PT to $55 on Strong LPG Fundamentals and Opportunistic Vessel Sales

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Raising PT to $55 on Strong LPG Fundamentals and Opportunistic Vessel Sales

USA | Maritime Group

Dorian EquityMayResearch22, 2026

TARGET | ESTIMATE CHANGERaising PT to $55 on Strong LPG Fundamentals

RATING BUYand Opportunistic Vessel Sales

PRICE $45.83^

Dorian's fiscal 4Q26 earnings beat was driven by stronger VLGC rates, with TCE

at $63,615/day and utilization at 97.8% supporting outsized EBITDA and cash PRICE TARGET | % TO PT $55.00 ($42.00) | +20%

flow. We remain constructive on longer-haul demand and tight vessel supply, 52W HIGH-LOW $48.12 - $20.03

though Panama costs weigh on realized rates. Management emphasized FLOAT (%) | ADV MM (USD) 85.5% | 24.34

balanced capital allocation across dividends, deleveraging, and fleet renewal MARKET CAP $2.0B

with opportunistic vessel sales an option given high residual values. Reit Buy. TICKER LPG ^Prior trading day's closing price unless otherwise

noted.

Earnings beat expectations on higher revenues: For F4Q, LPG reported adjusted EPS of $1.89 and

adjusted EBITDA of $106.6mm, above our estimates of $1.55 and $88.8mm and the consensus

FY (Mar) CHANGE TO JEFe JEF vs CONS

estimates of $1.41 and $84mm, respectively. The reason for the beat was stronger revenues than

2027 2028 2027 2028

modeled. Its fleet averaged a TCE rate of $63,615/day coming in higher than our modeled $58,000/

day. Mgmt noted longer ton-miles and Middle East disruptions as main drivers of higher spot rates. EBITDA +22% +68% NA NA

The revenue beat was paired with lower operating expenses of $9,780/day, down from last quarter's EPS +31% +148% NA NA

$10,275/day. Dorian completed the sale of the 2016-built VLGC Cobra in May 2026 for ~$81.9mm

of net proceeds, using ~$16.5mm to prepay related debt and taking advantage of elevated vessel 2027 ($) Q1 Q2 Q3 Q4 FY