Report
Jørgen Lian
EUR 96.18 For Business Accounts Only

Dorian LPG (Buy, TP: USD51.00) - Rates primed to rebound

We believe the soft VLGC spot market will rebound, with demonstrated US terminal capacity to ramp up exports, raising vessel demand and improving the shipowner’s ability to capture more of the ~USD110k/day arbitrage. Thus, limited deliveries (4% of fleet by end-2025) should offer solid earnings potential, in our view, presented by a 12% yield for Dorian on the 1-year TC. We reiterate our BUY but have cut our target price to USD51 (52).
Underlying
Dorian LPG

Provider
DnB Markets
DnB Markets

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.

 

Analysts
Jørgen Lian

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