STAMFORD, Conn. – Dorian LPG Ltd. (NYSE:LPG), a leading operator of liquefied petroleum gas carriers, has announced its intention to conduct an underwritten public offering of 2 million common shares. The company, known for its fleet of twenty-five Very Large Gas Carriers (VLGCs), aims to use the proceeds for general corporate purposes.
In addition to the planned offering, Dorian LPG will offer the underwriters a 30-day option to purchase up to an additional 300,000 shares. Jefferies LLC is serving as the lead bookrunning manager, with SEB as a joint bookrunning manager for the offering.
The shares will be offered via a prospectus supplement and accompanying base prospectus, part of a registration statement filed with the U.S. Securities and Exchange Commission (SEC) and declared effective on August 22, 2022. Details regarding the prospectus supplement related to the offering will be available on the SEC's EDGAR website upon filing.
Dorian LPG, headquartered in Stamford, Connecticut, with additional offices in Copenhagen, Denmark, and Athens, Greece, is recognized for its modern fleet, which includes twenty ECO VLGCs and four dual-fuel ECO VLGCs.
The company's forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those projected. Investors are cautioned to consider these risks and are referred to the company's SEC filings for further information.
In other recent news, Dorian LPG has reported record net income and a robust 30% return on book equity for the financial year 2024 during its Fourth Quarter Earnings Conference Call. The company also announced a payout of over $160 million in dividends to shareholders and has plans to continue this trend based on future financial performance. In response to a resilient LPG market and increased demand, Dorian LPG is expanding its fleet and has a positive outlook on the future of Very Large Gas Carriers (VLGCs) and the ammonia trade.
The company has also shown financial strength with $282.5 million in free cash and $294 million in total liquidity, along with an improved debt-to-total book capitalization ratio of 37.4%. Dorian LPG has expressed optimism about its medium to long-term prospects and is committed to sustainability, with plans to retrofit vessels for ammonia cargo. These are recent developments for the company, as it continues to navigate the evolving LPG market and broader energy landscape.
InvestingPro Insights
As Dorian LPG Ltd. (NYSE:LPG) prepares for its public offering, investors may find the current financial health and market performance of the company to be of particular interest. With a market capitalization of $2.04 billion and a robust price-to-earnings (P/E) ratio of 6.57, the company stands as a significant player in the liquefied petroleum gas shipping sector. The P/E ratio has seen a slight increase to 6.67 over the last twelve months as of Q4 2024, which may suggest a stable earning potential.
InvestingPro Tips highlight that Dorian LPG pays a substantial dividend to its shareholders, with a dividend yield of 8.24% as of the latest data, which is attractive for income-seeking investors. Additionally, the company has been profitable over the last twelve months, and analysts predict profitability will continue this year, reinforcing the company's financial strength.
Investors considering participating in the offering might also be encouraged by the company's recent performance, with a one-month price total return of 15.98% and a one-year price total return of 133.89%, indicating a strong upward trend in its stock price. Furthermore, with the stock trading near its 52-week high at 97.35% of the peak, confidence in Dorian LPG's market position appears to be high among investors.
For those looking to delve deeper into Dorian LPG's financials and performance metrics, additional InvestingPro Tips are available, which can provide further guidance on the company's investment potential. Currently, there are 11 more InvestingPro Tips listed, which can be accessed through the InvestingPro platform for a comprehensive analysis. For a limited time, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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