Summary
- Dorian LPG benefited recently as the global energy shortage lifted demand for LPG and thus their VLGC vessels.
- Due to warmer-than-expected weather, natural gas prices have now plummeted across the globe.
- Despite providing short-term relief to Europe, structural shortages remain and thus going forward, there should still be more good days for LPG.
- Even if wrong, their lowest free cash flow in recent history still sees a very high circa 10%+ yield on current cost that limits downside risk.
- Despite possible bumps in the road, I still expect their share price to keep an upwards trajectory across the coming years, and thus, I believe that my strong buy rating is appropriate.
For further details see:
Dorian LPG: Fear Not The Warm Winter