Dorian LPG has issued another special dividend after besting analyst expectations.
The Connecticut-based LPG carrier owner announced on Wednesday a $1 per share dividend alongside a $24.8m profit for the three months ending 30 June, the first quarter of its fiscal year, good for $0.62 on a per share basis.
The performance was an improvement on the $6m profit posted for the same period last year and beat the analyst consensus of a $0.49 profit per share.
“The first quarter results reflected a good chartering market, which generated strong operating cash flow,” said chief executive John Hadjipateras.
The dividend, which will return $40m to shareholders, follows similar special payouts of $2.50 in May and $1 in January.
In February, the company also authorised a $100m share repurchase plan.
The company's fleet earned time charter equivalent rates of $39,608 per day.
Its results fall largely in line with its forecast published last week.
Revenue came in at $76.8m, near the high end of its estimated $75m to $77m estimation.
Vessel operating expenses and charter hire expenses were both at the midpoint of the estimated range.
Vessel operating expenses were $17.1m against a forecast of $16.1m to $18.1m, while charter hire expenses were $5.4m versus a $5.3m to $5.5m range.
Dorian also cut a deal for $260m in debt financing to refinance the debt on the 84,000-cbm Concorde (built 2015) and to releverage the 84,000-cbm Corvette (built 2015).
Shareholder friendly
Fearnleys Securities said Dorian has provided shareholders $4.50 per share yield, or 27%.
It said it expects more dividends to come.
“Dorian is in our view continuing to position itself as one of the most shareholder-friendly companies in the shipping space,” Fearnleys said.
“Moreover, with its pristine fleet (positioning as pure eco play) and our positive outlook for VLGCs, we expect the shareholder-friendly story to continue going forward.”
In late morning trading, Dorian’s New York Stock Exchange-listed shares were trading at $16.63, down $0.15 from the open.
