Dorian LPG (Buy, TP: USD21.00) - Favourable scrubber economics
Following the fiscal Q4 2022 results, we have revised our near-term rates, prompting us to raise our 2023e adj. EBITDA by 9%. In our view, the favourable environment for scrubber-fitted vessels could potentially see scrubber benefits of cUSD4,400/day for 2023, equalling cUSD21m for the company’s 12 scrubber-fitted vessels. We also believe delays in the Panama Canal due to the new booking system could lead to added VLGC demand, with more vessels sailing the longer route to Asia via the Cape, and tightening supply. We reiterate our BUY and have raised our target price to USD21 (19).
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.