Dorian LPG Ltd. (NYSE: LPG) (the “Company,” “Dorian LPG,” “we,”
“us,” and “our”), a leading owner and operator of modern very large
gas carriers (“VLGCs”), today reported its financial results for
the three months ended December 31, 2023.
Key Recent Development
- Declared an irregular cash dividend totaling $40.6 million to
be paid on or about February 27, 2024.
Highlights for the Third Quarter Fiscal Year 2024
- Revenues of $163.1 million.
- Time Charter Equivalent (“TCE”)(1) rate per operating day for
our fleet of $76,337.
- Net income of $100.0 million, or $2.47 earnings per diluted
share (“EPS”), and adjusted net income(1) of $106.0 million, or
$2.62 adjusted earnings per diluted share (“adjusted EPS”).(1)
- Adjusted EBITDA(1) of $133.0 million.
- Declared and paid an irregular cash dividend totaling $40.6
million in November 2023.
- Entered into the 2023 A&R Debt Facility (amending and
restating the 2022 Debt Facility) to upsize the revolving credit
facility amount to $50.0 million and added a new, uncommitted
accordion term loan facility, in an aggregate principal amount of
up to $100.0 million.
- Entered into an agreement for a newbuilding Very Large Gas
Carrier / Ammonia Carrier expected to be delivered in the third
calendar quarter of 2026 for which we made the first $23.8 million
installment payment in January 2024.
(1)
TCE, adjusted net income, adjusted EPS and
adjusted EBITDA are non-U.S. GAAP measures. Refer to the
reconciliation of revenues to TCE, net income to adjusted net
income, EPS to adjusted EPS and net income to adjusted EBITDA
included in this press release under the heading “Financial
Information.”
John C. Hadjipateras, Chairman, President and Chief Executive
Officer of the Company, commented, “We are reporting strong
financial results, reflecting an extremely favorable market and
great teamwork. The dividend declared last week was our tenth,
bringing our cumulative dividend payments to over $463 million. We
placed an order to build a new VLGC/AC as we believe in the
long-term fundamentals in the LPG market and the potential for
ammonia transportation. With the geopolitical environment remaining
very challenging, as highlighted by recent hostilities in the Red
Sea, we are particularly mindful of the safety of our
seafarers.”
Third Quarter Fiscal Year 2024 Results Summary
Net income amounted to $100.0 million, or $2.47 per diluted
share, for the three months ended December 31, 2023, compared to
$51.3 million, or $1.27 per diluted share, for the three months
ended December 31, 2022.
Adjusted net income amounted to $106.0 million, or $2.62 per
diluted share, for the three months ended December 31, 2023,
compared to adjusted net income of $52.0 million, or $1.29 per
diluted share, for the three months ended December 31, 2022.
Adjusted net income for the three months ended December 31, 2023 is
calculated by adjusting net income for the same period to exclude
an unrealized loss on derivative instruments of $6.1 million.
Please refer to the reconciliation of net income to adjusted net
income, which appears later in this press release.
The $54.0 million increase in adjusted net income for the three
months ended December 31, 2023, compared to the three months ended
December 31, 2022, is primarily attributable to increases of $59.8
million in revenues, $1.7 million in interest income, and $0.5 in
realized gain on derivatives; partially offset by increases of $3.2
million in charter hire expenses, $1.5 in interest and finance
costs, $1.4 million in depreciation and amortization, $1.3 million
in vessel operating expenses, $0.8 million in general and
administrative expenses, and $0.4 million in voyage expenses.
The TCE rate per operating day for our fleet was $76,337 for the
three months ended December 31, 2023, a 44.7% increase from $52,768
for the same period in the prior year, driven by higher spot rates
and moderately lower bunker prices. Please see footnote 7 to the
table in “Financial Information” below for information related to
how we calculate TCE. Total fleet utilization (including the
utilization of our vessels deployed in the Helios Pool) decreased
from 97.8% during the three months ended December 31, 2022 to 93.6%
during the three months ended December 31, 2023.
Vessel operating expenses per day increased to $9,936 for the
three months ended December 31, 2023 compared to $9,739 in the same
period in the prior year. Please see “Vessel Operating Expenses”
below for more information.
Revenues
Revenues, which represent net pool revenues—related party, time
charters and other revenues, net, were $163.1 million for the three
months ended December 31, 2023, an increase of $59.8 million, or
57.8%, from $103.3 million for the three months ended December 31,
2022 primarily due to an increase in average TCE rates and fleet
size, partially offset by a reduction of fleet utilization. Average
TCE rates increased by $23,569 per operating day from $52,768 for
the three months ended December 31, 2022 to $76,337 for the three
months ended December 31, 2023, primarily due to higher spot rates
and moderately lower bunker prices. The Baltic Exchange Liquid
Petroleum Gas Index, an index published daily by the Baltic
Exchange for the spot market rate for the benchmark Ras
Tanura-Chiba route (expressed as U.S. dollars per metric ton),
averaged $132.773 during the three months ended December 31, 2023
compared to an average of $119.106 for the three months ended
December 31, 2022. The average price of very low sulfur fuel oil
(expressed as U.S. dollars per metric ton) from Singapore and
Fujairah decreased slightly from $676 during the three months ended
December 31, 2022, to $653 during the three months ended December
31, 2023. Our available days increased from 1,993 for the three
months ended December 31, 2022 to 2,272 for the three months ended
December 31, 2023 due to three additional vessels in our fleet. Our
fleet utilization decreased from 97.8% during the three months
ended December 31, 2022 to 93.6% during the three months ended
December 31, 2023.
Charter Hire Expenses
Charter hire expenses for the vessels chartered in from third
parties were $8.4 million and $5.2 million for the three months
ended December 31, 2023 and 2022, respectively. The increase of
$3.2 million, or 60.3%, was mainly caused by an increase in the
number of chartered-in days from 184 for the three months ended
December 31, 2022 to 368 for the three months ended December 31,
2023, offset by certain credits claimed under the terms of the time
charters.
Vessel Operating Expenses
Vessel operating expenses were $19.2 million during the three
months ended December 31, 2023, or $9,936 per vessel per calendar
day, which is calculated by dividing vessel operating expenses by
calendar days for the relevant time-period for the
technically-managed vessels that were in our fleet. The increase of
$1.3 million, or 7.1% from $17.9 million for the three months ended
December 31, 2022 was partially due to an increase in operating
expenses per vessel per calendar day along with an increase of
calendar days for our fleet from 1,840 during the three months
ended December 31, 2022 to 1,932 during the three months ended
December 31, 2023 days resulting from the delivery of our dual-fuel
VLGC Captain Markos in March 2023. The increase of $197 per vessel
per calendar day, from $9,739 for the three months ended December
31, 2022 to $9,936 per vessel per calendar day for the three months
ended December 31, 2023 was primarily the result of increases of
$444 per vessel per calendar day for spares and stores and $120 per
vessel per calendar day for repairs and maintenance, partially
offset by decreases of $172 per vessel per calendar day for crew
wages and related costs and $176 per vessel per calendar day for
miscellaneous expenses.
General and Administrative Expenses
General and administrative expenses were $7.7 million for the
three months ended December 31, 2023, an increase of $0.8 million,
or 10.2%, from $6.9 million for the three months ended December 31,
2022 and was driven by increases of $0.3 million in stock-based
compensation, $0.2 million in cash bonuses, and $0.3 million in
other general and administrative expenses.
Interest and Finance Costs
Interest and finance costs amounted to $10.1 million for the
three months ended December 31, 2023, an increase of $1.5 million,
or 16.7%, from $8.6 million for the three months ended December 31,
2022. The increase of $1.5 million during this period was mainly
due to increases of $1.0 million in loan interest and a reduction
of $0.4 million in capitalized interest. The increase in interest
on our long-term debt was driven by an increase in average interest
rates due to rising SOFR on our floating-rate long-term debt,
partially offset by a decrease in average indebtedness, excluding
deferred financing fees, from $645.0 million for the three months
ended December 31, 2022 to $633.2 million for the three months
ended December 31, 2023. As of December 31, 2023, the outstanding
balance of our long-term debt, net of deferred financing fees of
$5.6 million, was $618.1 million.
Unrealized Loss on Derivatives
Unrealized loss on derivatives amounted to $6.1 million for the
three months ended December 31, 2023, compared to a loss of $0.7
million for the three months ended December 31, 2022. The $5.4
million increase is primarily attributable to changes in forward
SOFR yield curves.
Realized Gain on Derivatives
Realized gain on derivatives amounted to $1.9 million for the
three months ended December 31, 2023, compared to a realized gain
of $1.4 million for the three months ended December 31, 2022. The
favorable $0.5 million difference is due to an increase in floating
SOFR resulting in the realized gain on our interest rate swaps.
Fleet
The following table sets forth certain information regarding our
fleet as of January 26, 2024.
Scrubber
Time
Capacity
ECO
Equipped
Charter-Out
(Cbm)
Shipyard
Year Built
Vessel(1)
or Dual-Fuel
Employment
Expiration(2)
Dorian VLGCs
Captain John NP
82,000
Hyundai
2007
—
—
Pool(4)
—
Comet
84,000
Hyundai
2014
X
S
Pool(4)
—
Corsair(3)
84,000
Hyundai
2014
X
S
Time Charter(6)
Q4 2024
Corvette
84,000
Hyundai
2015
X
S
Pool(4)
—
Cougar(3)
84,000
Hyundai
2015
X
—
Pool-TCO(5)
Q2 2025
Concorde
84,000
Hyundai
2015
X
S
Time Charter(7)
Q1 2024
Cobra
84,000
Hyundai
2015
X
—
Pool(4)
—
Continental
84,000
Hyundai
2015
X
—
Pool(4)
—
Constitution
84,000
Hyundai
2015
X
S
Pool(4)
—
Commodore
84,000
Hyundai
2015
X
—
Pool-TCO(5)
Q2 2024
Cresques(3)
84,000
Daewoo
2015
X
S
Pool-TCO(5)
Q2 2025
Constellation
84,000
Hyundai
2015
X
S
Pool(4)
—
Cheyenne
84,000
Hyundai
2015
X
S
Pool(4)
—
Clermont
84,000
Hyundai
2015
X
S
Pool(4)
—
Cratis(3)
84,000
Daewoo
2015
X
S
Pool(4)
—
Chaparral(3)
84,000
Hyundai
2015
X
—
Pool-TCO(5)
Q2 2025
Copernicus(3)
84,000
Daewoo
2015
X
S
Pool(4)
—
Commander
84,000
Hyundai
2015
X
S
Pool(4)
—
Challenger
84,000
Hyundai
2015
X
S
Pool-TCO(5)
Q3 2026
Caravelle(3)
84,000
Hyundai
2016
X
S
Pool(4)
—
Captain Markos(3)
84,000
Kawasaki
2023
X
DF
Pool(4)
—
Total
1,762,000
Time chartered-in VLGCs
Future Diamond(8)
80,876
Hyundai
2020
X
S
Pool(4)
—
HLS Citrine(9)
86,090
Hyundai
2023
X
DF
Pool(4)
—
HLS Diamond(10)
86,090
Hyundai
2023
X
DF
Pool(4)
—
Cristobal(11)
86,980
Hyundai
2023
X
DF
Pool(4)
—
_________________________________
(1)
Represents vessels with very low
revolutions per minute, long-stroke, electronically controlled
engines, larger propellers, advanced hull design, and low friction
paint.
(2)
Represents calendar year quarters.
(3)
Operated pursuant to a bareboat chartering
agreement.
(4)
“Pool” indicates that the vessel operates
in the Helios Pool on a voyage charter with a third party and we
receive a portion of the pool profits calculated according to a
formula based on the vessel’s pro rata performance in the pool.
(5)
“Pool-TCO” indicates that the vessel is
operated in the Helios Pool on a time charter out to a third party
and we receive a portion of the pool profits calculated according
to a formula based on the vessel’s pro rata performance in the
pool.
(6)
Currently on a time charter with an oil
major that began in November 2019.
(7)
Currently on time charter with a major oil
company that began in March 2019.
(8)
Currently time chartered-in to our fleet
with an expiration during the first calendar quarter of 2025.
(9)
Vessel has a Panamax beam and is currently
time chartered-in to our fleet with an expiration during the first
calendar quarter of 2030 and purchase options beginning in year
seven.
(10)
Vessel has a Panamax beam and is currently
time chartered-in to our fleet with an expiration during the first
calendar quarter of 2030 and purchase options beginning in year
seven.
(11)
Vessel has a Panamax beam and shaft
generator and is currently time chartered-in to our fleet with an
expiration during the third calendar quarter of 2030 and purchase
options beginning in year seven.
Market Outlook & Update
Record exports were seen from the U.S. in the fourth quarter of
calendar year 2023 (“Q4 2023”), with nearly 5.5 million metric tons
(“mmt”) of LPG exported in December 2023, which is an increase of
approximately 0.9 mmt from the same time period in 2022. Production
growth and high inventory levels of propane and butane help sustain
seaborne exports, particularly from the U.S. Gulf. Mt Belvieu
propane prices remained at a similar level to that seen in third
quarter of calendar year 2023 (“Q3 2023”), maintaining an average
price below 40% of West Texas Intermediate (“WTI”). Butane prices
rose slightly, partly as a consequence of increased domestic
demand.
Demand in the East was subdued, particularly from the largest
importer China. Back in the second calendar quarter of 2023, LPG
imports in China surpassed 3.3 mmt per month, but have since fallen
as petrochemical economics remain challenging and additional demand
is met from inventory supply. Chinese imports in Q4 2023 totaled
7.9 mmt compared to 9.4 mmt in Q3 2023. Additional propylene
capacity continues to be added with a further three PDH plants
starting operations in Q4 2023, weighing on the overall length of
propylene capacity and maintaining negative margins for many PDH
plant operators. Propane demand for PDH plants in China totaled 3.5
mmt in Q4 2023, compared to 3.9 mmt in Q3 2023.
In Asia, propane margins for steam crackers remained negative
through Q4 2023, with the propane naphtha spread tightening to an
average of $7 per metric ton in Q4 2023, compared with an average
of ($13) per metric ton in Q3 2023. Entering 2024, propane naphtha
spreads continue to favor LPG and some feedstock switching may be
expected.
Market complications such as the longer U.S. to Asia voyages and
Panama Canal delays partly influenced the strength in Eastern
prices in Q4 2023 due to longer delivery of cargoes in certain
circumstances. On average, propane prices in the East rose from
around $634 per metric ton in Q3 2023 to $670 per metric ton in Q4
2023, an increase from 58% to nearly 63% of Brent. There was
limited change in Saudi CP prices over the quarter, averaging $607
per metric ton for propane and $618 per metric ton for butane,
which both rose from the previous quarter as supply from Saudi
Arabia dropped in Q4 2023 while overall prices in the East
strengthened.
A further 10 new VLGCs were added during Q4 2023 without causing
a downward pressure to freight rates. Currently the VLGC orderbook
stands at approximately 14% of the current global fleet. An
additional 71 VLGCs equivalent to roughly 6.4 million cbm of
carrying capacity are expected to be added to the global fleet by
calendar year 2027. The average age of the global fleet is now
approximately 10.0 years old.
The above market outlook update is based on information, data
and estimates derived from industry sources available as of the
date of this release, and there can be no assurances that such
trends will continue or that anticipated developments in freight
rates, export volumes, the VLGC orderbook or other market
indicators will materialize. This information, data and estimates
involve a number of assumptions and limitations, are subject to
risks and uncertainties, and are subject to change based on various
factors. You are cautioned not to give undue weight to such
information, data and estimates. We have not independently verified
any third-party information, verified that more recent information
is not available and undertake no obligation to update this
information unless legally obligated.
Seasonality
Liquefied gases are primarily used for industrial and domestic
heating, as chemical and refinery feedstock, as transportation fuel
and in agriculture. The LPG shipping market historically has been
stronger in the spring and summer months in anticipation of
increased consumption of propane and butane for heating during the
winter months. In addition, unpredictable weather patterns in these
months tend to disrupt vessel scheduling and the supply of certain
commodities. Demand for our vessels therefore may be stronger in
our quarters ending June 30 and September 30 and relatively weaker
during our quarters ending December 31 and March 31, although
12-month time charter rates tend to smooth out these short-term
fluctuations and recent LPG shipping market activity has not
yielded the typical seasonal results. The increase in petrochemical
industry buying has contributed to less marked seasonality than in
the past, but there can no guarantee that this trend will continue.
To the extent any of our time charters expire during the typically
weaker fiscal quarters ending December 31 and March 31, it may not
be possible to re-charter our vessels at similar rates. As a
result, we may have to accept lower rates or experience off-hire
time for our vessels, which may adversely impact our business,
financial condition and operating results.
Financial Information
The following table presents our selected financial data and
other information for the periods presented:
Three months ended
Nine months ended
(in U.S. dollars, except fleet
data)
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Statement of Operations Data
Revenues
$
163,064,503
$
103,322,256
$
419,325,872
$
256,114,165
Expenses
Voyage expenses
772,879
424,343
2,292,490
2,567,506
Charter hire expenses
8,359,808
5,215,144
30,975,037
15,975,622
Vessel operating expenses
19,196,097
17,919,058
60,015,602
52,541,678
Depreciation and amortization
17,380,846
15,959,727
51,082,082
47,706,925
General and administrative expenses
7,659,466
6,947,964
30,456,251
24,537,134
Total expenses
53,369,096
46,466,236
174,821,462
143,328,865
Other income—related parties
645,454
638,055
1,946,837
1,793,595
Operating income
110,340,861
57,494,075
246,451,247
114,578,895
Other income/(expenses)
Interest and finance costs
(10,076,638)
(8,636,387)
(30,795,368)
(28,592,104)
Interest income
2,903,622
1,165,596
6,624,594
2,341,085
Unrealized gain/(loss) on derivatives
(6,070,320)
(700,015)
(1,650,452)
4,847,064
Realized gain on derivatives
1,916,347
1,404,004
5,692,328
1,997,815
Other gain/(loss), net
959,041
536,437
1,884,366
1,250,140
Total other income/(expenses), net
(10,367,948)
(6,230,365)
(18,244,532)
(18,156,000)
Net income
$
99,972,913
$
51,263,710
$
228,206,715
$
96,422,895
Earnings per common share—basic
2.48
1.28
5.68
2.41
Earnings per common share—diluted
$
2.47
$
1.27
$
5.65
2.40
Financial Data
Adjusted EBITDA(1)
$
132,968,450
$
76,200,480
$
312,382,774
$
169,320,890
Fleet Data
Calendar days(2)
1,932
1,840
5,775
5,500
Time chartered-in days(3)
368
184
1,148
550
Available days(4)
2,272
1,993
6,775
6,019
Operating days(5)(8)
2,126
1,950
6,504
5,706
Fleet utilization(6)(8)
93.6
%
97.8
%
96.0
%
94.8
%
Average Daily Results
Time charter equivalent rate(7)(8)
$
76,337
$
52,768
$
64,120
$
44,435
Daily vessel operating expenses(9)
$
9,936
$
9,739
$
10,392
$
9,553
_____________________________
(1)
Adjusted EBITDA is an unaudited non-U.S. GAAP measure and
represents net income/(loss) before interest and finance costs,
unrealized (gain)/loss on derivatives, realized (gain)/loss on
interest rate swaps, stock-based compensation expense, impairment,
and depreciation and amortization and is used as a supplemental
financial measure by management to assess our financial and
operating performance. We believe that adjusted EBITDA assists our
management and investors by increasing the comparability of our
performance from period to period and management makes business and
resource-allocation decisions based on such comparisons. This
increased comparability is achieved by excluding the potentially
disparate effects between periods of derivatives, interest and
finance costs, stock-based compensation expense, impairment, and
depreciation and amortization expense, which items are affected by
various and possibly changing financing methods, capital structure
and historical cost basis and which items may significantly affect
net income/(loss) between periods. We believe that including
adjusted EBITDA as a financial and operating measure benefits
investors in selecting between investing in us and other investment
alternatives.
Adjusted EBITDA has certain limitations in use and should not be
considered an alternative to net income/(loss), operating income,
cash flow from operating activities or any other measure of
financial performance presented in accordance with U.S. GAAP.
Adjusted EBITDA excludes some, but not all, items that affect net
income/(loss). Adjusted EBITDA as presented below may not be
computed consistently with similarly titled measures of other
companies and, therefore, might not be comparable with other
companies.
The following table sets forth a
reconciliation of net income to Adjusted EBITDA (unaudited) for the
periods presented:
Three months ended
Nine months ended
(in U.S. dollars)
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Net income
$
99,972,913
$
51,263,710
$
228,206,715
$
96,422,895
Interest and finance costs
10,076,638
8,636,387
30,795,368
28,592,104
Unrealized (gain)/loss on derivatives
6,070,320
700,015
1,650,452
(4,847,064)
Realized gain on interest rate swaps
(1,916,347)
(1,404,004)
(5,692,328)
(1,997,815)
Stock-based compensation expense
1,384,080
1,044,645
6,340,485
3,443,845
Depreciation and amortization
17,380,846
15,959,727
51,082,082
47,706,925
Adjusted EBITDA
$
132,968,450
$
76,200,480
$
312,382,774
$
169,320,890
(2)
We define calendar days as the total
number of days in a period during which each vessel in our fleet
was owned or operated pursuant to a bareboat charter. Calendar days
are an indicator of the size of the fleet over a period and affect
both the amount of revenues and the amount of expenses that are
recorded during that period.
(3)
We define time chartered-in days as the
aggregate number of days in a period during which we time
chartered-in vessels from third parties. Time chartered-in days are
an indicator of the size of the fleet over a period and affect both
the amount of revenues and the amount of charter hire expenses that
are recorded during that period.
(4)
We define available days as the sum of
calendar days and time chartered-in days (collectively representing
our commercially-managed vessels) less aggregate off hire days
associated with scheduled maintenance, which include major repairs,
drydockings, vessel upgrades or special or intermediate surveys. We
use available days to measure the aggregate number of days in a
period that our vessels should be capable of generating
revenues.
(5)
We define operating days as available days
less the aggregate number of days that the commercially-managed
vessels in our fleet are off‑hire for any reason other than
scheduled maintenance (e.g., commercial waiting, repositioning
following drydocking, etc.). We use operating days to measure the
number of days in a period that our operating vessels are on hire
(refer to 8 below).
(6)
We calculate fleet utilization by dividing
the number of operating days during a period by the number of
available days during that period. An increase in non-scheduled off
hire days would reduce our operating days, and, therefore, our
fleet utilization. We use fleet utilization to measure our ability
to efficiently find suitable employment for our vessels.
(7)
Time charter equivalent rate, or TCE rate,
is a non-U.S. GAAP measure of the average daily revenue performance
of a vessel. TCE rate is a shipping industry performance measure
used primarily to compare period‑to‑period changes in a shipping
company’s performance despite changes in the mix of charter types
(such as time charters, voyage charters) under which the vessels
may be employed between the periods and is a factor in management’s
business decisions and is useful to investors in understanding our
underlying performance and business trends. Our method of
calculating TCE rate is to divide revenue net of voyage expenses by
operating days for the relevant time period, which may not be
calculated the same by other companies. Note that our calculation
of TCE includes our portion of the net profit of the Helios Pool,
which may also cause our calculation to differ from that of
companies which do not account for pooling arrangements as we
do.
The following table sets forth a
reconciliation of net income to Adjusted EBITDA (unaudited) for the
periods presented:
Three months ended
Nine months ended
(in U.S. dollars, except operating
days)
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Numerator:
Revenues
$
163,064,503
$
103,322,256
$
419,325,872
$
256,114,165
Voyage expenses
(772,879)
(424,343)
(2,292,490)
(2,567,506)
Time charter equivalent
$
162,291,624
$
102,897,913
$
417,033,382
$
253,546,659
Pool adjustment*
1,301,452
(99,984)
895,272
(514,015)
Time charter equivalent excluding pool
adjustment*
$
163,593,076
$
102,797,929
$
417,928,654
$
253,032,644
Denominator:
Operating days
2,126
1,950
6,504
5,706
TCE rate:
Time charter equivalent rate
$
76,337
$
52,768
$
64,120
$
44,435
TCE rate excluding pool adjustment*
$
76,949
$
52,717
$
64,257
$
44,345
* Adjusted for the effects of
reallocations of pool profits in accordance with the pool
participation agreements primarily resulting from the actual speed
and consumption performance of the vessels operating in the Helios
Pool exceeding the originally estimated speed and consumption
levels.
(8)
We determine operating days for each
vessel based on the underlying vessel employment, including our
vessels in the Helios Pool, or the Company Methodology. If we were
to calculate operating days for each vessel within the Helios Pool
as a variable rate time charter, or the Alternate Methodology, our
operating days and fleet utilization would be increased with a
corresponding reduction to our TCE rate. Operating data using both
methodologies is as follows:
Three months ended
Nine months ended
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Company Methodology:
Operating Days
2,126
1,950
6,504
5,706
Fleet Utilization
93.6
%
97.8
%
96.0
%
94.8
%
Time charter equivalent rate
$
76,337
$
52,768
$
64,120
$
44,435
Alternate Methodology:
Operating Days
2,272
1,993
6,774
6,002
Fleet Utilization
100.0
%
100.0
%
100.0
%
99.7
%
Time charter equivalent rate
$
71,431
$
51,630
$
61,564
$
42,244
We believe that the Company Methodology
using the underlying vessel employment provides more meaningful
insight into market conditions and the performance of our
vessels.
(9)
Daily vessel operating expenses are
calculated by dividing vessel operating expenses by calendar days
for the relevant time period.
In addition to the results of operations presented in accordance
with U.S. GAAP, we provide adjusted net income and adjusted EPS. We
believe that adjusted net income and adjusted EPS are useful to
investors in understanding our underlying performance and business
trends. Adjusted net income and adjusted EPS are not a measurement
of financial performance or liquidity under U.S. GAAP; therefore,
these non-U.S. GAAP measures should not be considered as an
alternative or substitute for U.S. GAAP. The following table
reconciles net income and EPS to adjusted net income and adjusted
EPS, respectively, for the periods presented:
Three months ended
Nine months ended
(in U.S. dollars, except share
data)
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Net income
$
99,972,913
$
51,263,710
$
228,206,715
$
96,422,895
Unrealized (gain)/loss on derivatives
6,070,320
700,015
1,650,452
(4,847,064)
Adjusted net income
$
106,043,233
$
51,963,725
$
229,857,167
$
91,575,831
Earnings per common share—diluted
$
2.47
$
1.27
$
5.65
$
2.40
Unrealized (gain)/loss on derivatives
0.15
0.02
0.04
(0.12)
Adjusted earnings per common
share—diluted
$
2.62
$
1.29
$
5.69
$
2.28
The following table presents our unaudited balance sheets as of
the dates presented:
As of
As of
December 31, 2023
March 31, 2023
Assets
Current assets
Cash and cash equivalents
$
208,460,209
$
148,797,232
Trade receivables, net and accrued
revenues
2,782,267
3,282,256
Due from related parties
110,558,735
73,070,095
Inventories
2,573,110
2,642,395
Prepaid expenses and other current
assets
14,955,165
8,507,007
Total current assets
339,329,486
236,298,985
Fixed assets
Vessels, net
1,224,003,052
1,263,928,605
Vessel under construction
26,346
—
Other fixed assets, net
—
48,213
Total fixed assets
1,224,029,398
1,263,976,818
Other non-current assets
Deferred charges, net
12,162,891
8,367,301
Derivative instruments
7,628,093
9,278,544
Due from related parties—non-current
25,300,000
20,900,000
Restricted cash—non-current
77,327
76,418
Operating lease right-of-use assets
199,554,138
158,179,398
Available-for-sale securities
9,717,520
11,366,838
Other non-current assets
2,536,765
469,227
Total assets
$
1,820,335,618
$
1,708,913,529
Liabilities and shareholders’
equity
Current liabilities
Trade accounts payable
$
11,435,017
$
10,807,376
Accrued expenses
4,170,170
5,637,725
Due to related parties
159,748
168,793
Deferred income
417,408
208,558
Current portion of long-term operating
lease liabilities
31,942,176
23,407,555
Current portion of long-term debt
53,433,423
53,110,676
Dividends payable
893,155
1,255,861
Total current liabilities
102,451,097
94,596,544
Long-term liabilities
Long-term debt—net of current portion and
deferred financing fees
564,686,247
604,256,670
Long-term operating lease liabilities
167,628,339
134,782,483
Other long-term liabilities
1,511,619
1,431,510
Total long-term liabilities
733,826,205
740,470,663
Total liabilities
836,277,302
835,067,207
Commitments and contingencies
—
—
Shareholders’ equity
Preferred stock, $0.01 par value,
50,000,000 shares authorized, none issued nor outstanding
—
—
Common stock, $0.01 par value, 450,000,000
shares authorized, 51,955,408 and 51,630,593 shares issued,
40,607,892 and 40,382,730 shares outstanding (net of treasury
stock), as of December 31, 2023 and March 31, 2023,
respectively
519,554
516,306
Additional paid-in-capital
770,720,529
764,383,292
Treasury stock, at cost; 11,347,516 and
11,247,863 shares as of December 31, 2023 and March 31, 2023,
respectively
(125,670,534)
(122,896,838)
Retained earnings
338,488,767
231,843,562
Total shareholders’ equity
984,058,316
873,846,322
Total liabilities and shareholders’
equity
$
1,820,335,618
$
1,708,913,529
Conference Call
A conference call to discuss the results will be held on
Thursday, February 1, 2024 at 10:00 a.m. ET. The conference call
can be accessed live by dialing 1- 877-407-9716, or for
international callers, 1- 201-493-6779, and requesting to be joined
into the Dorian LPG call. A replay will be available at 1:00 p.m.
ET the same day and can be accessed by dialing 1-844-512-2921, or
for international callers, 1-412-317-6671. The passcode for the
replay is 13744082. The replay will be available until February 8,
2024, at 11:59 p.m. ET.
A live webcast of the conference call will also be available
under the investor relations section at www.dorianlpg.com. The
information on our website does not form a part of and is not
incorporated by reference into this release.
About Dorian LPG Ltd.
Dorian LPG is a liquefied petroleum gas shipping company and a
leading owner and operator of modern VLGCs. Dorian LPG's fleet
currently consists of twenty-five modern VLGCs, including four
dual-fuel LPG vessels. Dorian LPG has offices in Stamford,
Connecticut, USA; Copenhagen, Denmark; and Athens, Greece.
Forward-Looking and Other Cautionary Statements
The cash dividends referenced in this release are irregular
dividends. All declarations of dividends are subject to the
determination and discretion of our Board of Directors based on its
consideration of various factors, including the Company’s results
of operations, financial condition, level of indebtedness,
anticipated capital requirements, contractual restrictions,
restrictions in its debt agreements, restrictions under applicable
law, its business prospects and other factors that our Board of
Directors may deem relevant.
This press release contains "forward-looking statements."
Statements that are predictive in nature, that depend upon or refer
to future events or conditions, or that include words such as
"expects," "anticipates," "intends," "plans," "believes,"
"estimates," "projects," "forecasts," "may," "will," "should" and
similar expressions are forward-looking statements. These
statements are not historical facts but instead represent only the
Company's current expectations and observations regarding future
results, many of which, by their nature are inherently uncertain
and outside of the Company's control. Where the Company expresses
an expectation or belief as to future events or results, such
expectation or belief is expressed in good faith and believed to
have a reasonable basis. However, the Company’s forward-looking
statements are subject to risks, uncertainties, and other factors,
which could cause actual results to differ materially from future
results expressed, projected, or implied by those forward-looking
statements. The Company’s actual results may differ, possibly
materially, from those anticipated in these forward-looking
statements as a result of certain factors, including changes in the
Company’s financial resources and operational capabilities and as a
result of certain other factors listed from time to time in the
Company's filings with the U.S. Securities and Exchange Commission.
For more information about risks and uncertainties associated with
Dorian LPG’s business, please refer to the “Management’s Discussion
and Analysis of Financial Condition and Results of Operations” and
“Risk Factors” sections of Dorian LPG’s SEC filings, including, but
not limited to, its annual report on Form 10-K and quarterly
reports on Form 10-Q. The Company does not assume any obligation to
update the information contained in this press release.
Source: Dorian LPG Ltd.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240201139092/en/
Ted Young; Chief Financial Officer: Tel.: +1 (203) 674-9900 or
IR@dorianlpg.com
Dorian LPG (NYSE:LPG)
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