New York-listed Dorian LPG is rewarding investors once again in what remains an active VLGC market.
The company said it will hand out an “irregular” cash dividend of $1 per share on 30 May, equating to $40.6m.
Fearnley Securities said this was “yet another” one-off hand-out, leaving the stock yielding 10% per year.
It is the seventh consecutive $1 quarterly dividend.
The investment bank noted that with $208m in cash on the balance sheet, as well as solid earnings ahead for the first three months of 2023, the move should come as no surprise.
Fearnley estimates Ebitda for the company’s fourth quarter ending 31 March at $127m, with the analyst consensus at $115m.
The same $1 per share amount was paid out to investors in January.
The shipowner’s cumulative handouts have amounted to more than $600m since its listing in New York 10 years ago.
Dorian LPG posted net earnings of $100m in its third quarter ended 31 December, up from $51.3m a year earlier.
In February, the owner had booked more than 60% of days in the current quarter at solid rates exceeding $100,000 per day, but the numbers do not reflect lower rates since.
Rates down 10%
The Baltic Exchange assesses spot rates from the Middle East to Asia at $37,500 per day, down 10% in a week.
In the west, earnings were up 6% week-on-week to $55,600 per day.
Sister shipbroker Fearnleys said there were questions in the market over whether freight has come off too much in Asia.
And Western cargoes are not attractive as they appear at first sight for owners with ships in Asia, due to the longer route around South Africa needed to make it back there.
The Western market is active, with 31 fixtures completed out of the US Gulf for May so far.
Three or four ships remain open, including a relet.
June fixing is also well underway, the broker reported.
