Dorian LPG and StealthGas, two major Greek LPG shipping companies listed in New York, have seen their stock rise markedly amid favourable market conditions that boosted their earnings.
Their share price had been gaining throughout the year but the pace accelerated dramatically since 31 October, when the Panama Canal Authority slashed daily transits amid falling water levels, which led to a squeeze-out of ships — VLGCs in particular.
Dorian LPG, which owns and operates such large carriers, saw its share rise by nearly 40% just over the following 20 days, to $43.09 on 21 November.
This was the highest ever since the John Hadjipateras-led company was listed in New York in 2014. They closed just a shade below that, at $42.30 apiece on 22 November.
The stock likely received an additional boost from the company reporting a record quarterly net profit of $76.5m on 2 November.
The appreciation of its shares has lifted Dorian LPG above a ratio that most shipping companies fail to clear — that of market capitalisation exceeding net asset value.
Dorian LPG was worth $1.72bn in New York on Wednesday, compared with the $1.24bn its 21 VLGCs were worth at the end of September, according to the company’s latest balance sheet.
The positive LPG market has also benefited owners of smaller LPG carriers like StealthGas.
The Athens-based company saw its shares close at an 8.5-year-high in New York on Wednesday at $6.69 apiece.
StealthGas stock climbed by 22% in a single week in the run-up to, and immediately after, releasing financial results on 20 November that showed the company notching up a record nine-month net income of $43.1m — up 62% year on year.
Despite soaring market capitalisation, StealthGas is still trading below net asset value.
The company was worth $260.3m in New York as of 22 November, compared with the $510m net book value of its 27 ships at the end of September.
