Presentation

Dorian LPG is the second largest listed VLGC owner and operator, and the only pure-play listed in the US. The company has been around since 2002 but became what we know today when it acquired Scorpio Tankers’ VLGC newbuilds in 2013. Dorian is listed on the New York Stock Exchange and has a market capitalization of USD 420m with net debt of USD 510m as of Q2’20.

The current fleet consists of 22 vessels, 19 of them modern ships built between 2014 and 2016, and the final three are 82k cbm built around a decade ago. Average fleet age is currently just above six years, making it one of the youngest fleets in the LPG shipping transportation market. About half of the modern ECO vessels are fitted with scrubbers.

Spot rates took a dive in Q2 following the collapse in oil prices but have since rebounded and are now around USD 40,000/day. While we do not expect much stronger figures for the remainder of the year, this still implies solid equity returns against what has been relatively depressed share prices in our view. We estimate the NAV in Dorian to USD 14-15 and continue to believe that the steep discount allows for opportunities for accretive share repurchases going forward.