BWLLF - Dorian LPG: Inelastic Supply Side And High Order Book As Constrains; Rating Unchanged
2024-03-31 08:50:34 ET
Summary
- VLGC segment is in the last innings of its expansion phase. The percentage of VLGCs older than 20Y is 14%, while the order book is 30%.
- Dorian has maintained competitive profit margins due to its higher spot exposure and its large percentage of scrubber-equipped vessels. LPG score robust liquidity and solvency metrics, too.
- Dorian is a good company with healthy financials and attractive dividend yields. Nevertheless, I prefer to park my cash in opportunities with favorable risk-reward.
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Dorian LPG: Inelastic Supply Side And High Order Book As Constrains; Rating Unchanged