Dorian LPG (Buy, TP: USD26.10) - Markets still churning out cash
VLGC spot rates are off their winter highs, but remain in the mid-50s, well in excess of owners’ cash costs. With sound inventory levels in the US and a global energy market that continues to look tight into next winter, we remain bullish. The current FFA curve indicates USD40k+/day for the remainder of 2023 and beyond – broadly in line with our estimates, supporting our 2024e 14% dividend yield. We reiterate our BUY and have raised our target price to USD26.1 (25.5).
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.
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