Dorian LPG: Massive Discount To NAV And Double-Digit Yield; Rating Upgrade
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Dorian LPG has been upgraded due to its massive discount to NAV and double-digit yield, despite ongoing day rate weakness. The company reported a significant drop in revenue for 2Q25 compared to 2Q24. Dorian holds $349 million in cash, $142 million in long-term leases, and $525 million in long-term debt. The fleet's higher daily OPEX and breakeven costs are offset by potential savings from scrubbers and ammonia upgrades.
November 21, 2024 | 4:00 am
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Dorian LPG has been upgraded due to its massive discount to NAV and double-digit yield, despite ongoing day rate weakness. The company reported a significant drop in revenue for 2Q25 compared to 2Q24. Dorian holds $349 million in cash, $142 million in long-term leases, and $525 million in long-term debt. The fleet's higher daily OPEX and breakeven costs are offset by potential savings from scrubbers and ammonia upgrades.
The upgrade in rating due to the massive discount to NAV and double-digit yield is a positive indicator for Dorian LPG's stock. Although there is a significant drop in revenue, the potential savings from scrubbers and ammonia upgrades could improve financial performance. The company's strong cash position also provides a buffer against its high debt levels.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100