Dorian LPG (LPG) Stock Forecast & Price Target

Dorian LPG benefits from a positive outlook supported by robust growth in liquefied petroleum gas (LPG) exports, with U.S. VLGC exports increasing by 8.3% year-over-year to 28.0 million tons in the first half of 2025, alongside a 4.9% year-over-year increase in Middle Eastern exports reaching 20.7 million tons. The sector has effectively absorbed the influx of capacity resulting from shorter-haul voyages, leading to heightened forward expectations for trade growth. Strong demand for LPG transportation, fueled by substantial increases in exports from both the U.S. and Middle East, underpins a favorable environment for Dorian LPG's operations.

Dorian LPG's outlook is negatively impacted by the anticipated decline in average spot charter rates for its VLGCs, which are expected to decrease from an average of $50,000 per day to closer to $30,000 per day. The company's financial performance is further threatened by the limited growth in the global VLGC fleet, which is projected to expand by only 3.0% this year, a significant decrease from previous years' growth rates of 7.0% in 2024 and 12.5% in 2023. Additionally, fluctuating charter rates influenced by regional price disparities and competition from naphtha feedstock may erode Dorian LPG’s market position, compounding the challenges posed by rising shipyard construction costs and labor expenses linked to newbuilding and secondhand vessel prices.