STAMFORD, Conn., Aug. 2, 2023
/PRNewswire/ -- 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 June 30, 2023.
Key Recent Developments
- Declared an irregular cash dividend totaling $40.4 million to be paid on or about September 6, 2023.
- Time chartered-in a dual-fuel Panamax VLGC for seven years,
with two consecutive one-year charterer's option periods and
purchase options in years seven through nine.
- Fixed the interest rate on the Cougar Japanese Financing
Arrangement at 6.34% effective August
2023.
Highlights for the First Quarter Fiscal Year 2024
- Revenues of $111.6 million.
- Time Charter Equivalent ("TCE")(1) rate per
operating day for our fleet of $51,156.
- Net income of $51.7 million, or
$1.28 earnings per diluted share
("EPS"), and adjusted net income(1) of $48.9 million, or $1.21 adjusted earnings per diluted share
("adjusted EPS").(1)
- Adjusted EBITDA(1) of $74.8
million.
- Declared and paid an irregular cash dividend totaling
$40.4 million in May 2023.
(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, "The first quarter results reflected a firm
market, as strong demand continues to absorb new-building
deliveries. Our board declared an irregular dividend, once again
highlighting our commitment to disciplined capital allocation
consistent with a strong balance sheet. The addition of the
"Cristobal," one of four dual-fuel ships to join our fleet,
reflects a diligent approach to fleet renewal. It is appropriate to
acknowledge that our fine results would not have been possible
without our dedicated seafarers and our shoreside staff who strive
to provide our customers the best, safe, reliable, clean and
trouble free transportation service."
First Quarter Fiscal Year 2024 Results Summary
Net income amounted to $51.7
million, or $1.28 per diluted
share, for the three months ended June 30,
2023, compared to $24.8
million, or $0.62 per diluted
share, for the three months ended June 30,
2022.
Adjusted net income amounted to $48.9
million, or $1.21 per diluted
share, for the three months ended June 30,
2023, compared to adjusted net income of $22.4 million, or $0.56 per diluted share, for the three months
ended June 30, 2022. Adjusted net
income for the three months ended June 30,
2023 is calculated by adjusting net income for the same
period to exclude an unrealized gain on derivative instruments of
$2.9 million. Please refer to the
reconciliation of net income to adjusted net income, which appears
later in this press release.
The $26.5 million increase in
adjusted net income for the three months ended June 30, 2023, compared to the three months ended
June 30, 2022, is primarily
attributable to (1) increases of $34.8
million in revenues and $1.3
million in interest income; (2) a $1.9 million favorable change in realized
gain/(loss) on derivatives; and (3) decreases of $0.5 million in voyage expenses and $0.2 million in general and administrative
expenses; partially offset by increases of $5.1 million in
charter hire expenses, $2.7 million
in vessel operating expenses, $2.4
million in interest and finance costs, and $0.9 million in depreciation and amortization;
and a reduction of $0.9 million in
other gains, net.
The TCE rate per operating day for our fleet was $51,156 for the three months ended
June 30, 2023, a 29.2% increase from $39,608 for the same period in the prior year,
driven by higher spot rates and reduced 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) increased from 95.9% during the three months ended
June 30, 2022 to 98.0% during the
three months ended June 30, 2023.
Vessel operating expenses per day increased to $10,383 for the three months ended June 30, 2023 compared to $9,378 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 $111.6 million for the three months ended
June 30, 2023, an increase of
$34.8 million, or 45.2%, from
$76.8 million for the three months
ended June 30, 2022 primarily due to
an increase in average TCE rates, fleet utilization, and fleet
size. Average TCE rates increased by $11,548 per operating day from $39,608 for the three months ended June 30, 2022 to $51,156 for the three months ended June 30, 2023, primarily due to higher spot rates
and 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 $95.729 during the three months ended
June 30, 2023 compared to an average
of $76.175 for the three months ended
June 30, 2022. The average price of
very low sulfur fuel oil (expressed as U.S. dollars per metric ton)
from Singapore and Fujairah decreased from $955 during the three months ended June 30, 2022, to $584 during the three months ended June 30, 2023. Our fleet utilization increased
from 95.9% during the three months ended June 30, 2022 to 98.0% during the three months
ended June 30, 2023. Our available
days increased from 2,002 for the three months ended June 30, 2022 to 2,219 for the three months ended
June 30, 2023 due to three additional
vessels in our fleet.
Charter Hire Expenses
Charter hire expenses for the vessels chartered in from third
parties were $10.5 million and
$5.4 million for the three months
ended June 30, 2023 and 2022,
respectively. The increase of $5.1
million, or 95.2%, was mainly caused by an increase in the
number of chartered-in days from 182 for the three months ended
June 30, 2022 to 364 for the three
months ended June 30, 2023, partially
offset by a slight decrease in the average cost per day.
Vessel Operating Expenses
Vessel operating expenses were $19.8
million during the three months ended June 30, 2023, or $10,383 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 $2.7
million, or 16.3% from $17.1
million for the three months ended June 30, 2022 was partially due an increase in
operating expenses per vessel per calendar day along with an
increase of calendar days for our fleet from 1,820 during the three
months ended June 30, 2022 to 1,911
during the three months ended June 30,
2023. The increase in calendar days resulted from the
delivery of our dual-fuel VLGC Captain Markos in
March 2023. The increase of
$1,005 per vessel per calendar day,
from $9,378 for the three months
ended June 30, 2022 to $10,383 per vessel per calendar day for the three
months ended June 30, 2023, was
primarily the result of increases of $634 per vessel per calendar day for spares and
stores and $369 per vessel per
calendar day for repairs and maintenance. Both cost categories were
driven by non-capitalizable drydock-related operating expenses
totaling $274 per vessel per calendar
day.
General and Administrative Expenses
General and administrative expenses were $9.2 million for the three months ended
June 30, 2023, a decrease of
$0.2 million, or 2.1%, from
$9.4 million for the three months
ended June 30, 2022. This reduction
was driven by a decrease of $0.9
million in cash bonuses resulting from differences in the
timing of the approvals of cash bonuses to certain employees in the
periods ended June 30, 2023 and 2022.
This decrease was partially offset by increases of $0.3 million in employee-related costs and
benefits, $0.1 million in stock-based
compensation and $0.3 million in
other general and administrative expenses for the three months
ended June 30, 2023.
Interest and Finance Costs
Interest and finance costs amounted to $10.4 million for the three months ended
June 30, 2023, an increase of
$2.4 million, or 30.7%, from
$8.0 million for the three months
ended June 30, 2022. The increase of
$2.4 million during this period was
mainly due to an increase of $3.1
million in interest incurred on our long-term debt and a
reduction of $0.2 million in
capitalized interest, partially offset by reductions of
$0.6 million in amortization of
financing costs and $0.3 million in
loan expenses. 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
$687.9 million for the three months
ended June 30, 2022 to $658.2 million for the three months ended
June 30, 2023. As of June 30, 2023, the outstanding balance of our
long-term debt, net of deferred financing fees of $5.9 million, was $644.4
million.
Unrealized Gain on Derivatives
Unrealized gain on derivatives amounted to $2.9 million for the three months ended
June 30, 2023, compared to a gain of
$2.5 million for the three months
ended June 30, 2022. The $0.4 million swing is attributable to favorable
changes in forward SOFR yield curves partially offset by reductions
in notional amounts.
Realized Gain/(Loss) on Derivatives
Realized gain on derivatives amounted to $1.8 million for the three months ended
June 30, 2023, compared to a realized
loss of $0.1 million for the three
months ended June 30, 2022. The
favorable $1.9 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 July 27,
2023.
|
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|
|
|
|
|
|
|
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|
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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)
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|
Q1 2025
|
|
Concorde
|
|
84,000
|
|
Hyundai
|
|
|
2015
|
|
X
|
|
S
|
|
Time
Charter(7)
|
|
Q1 2024
|
|
Cobra
|
|
84,000
|
|
Hyundai
|
|
|
2015
|
|
X
|
|
—
|
|
Pool(4)
|
|
—
|
|
Continental
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|
84,000
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|
Hyundai
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|
|
2015
|
|
X
|
|
—
|
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Pool-TCO(5)
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|
Q4 2023
|
|
Constitution
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|
84,000
|
|
Hyundai
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|
|
2015
|
|
X
|
|
S
|
|
Pool(4)
|
|
—
|
|
Commodore
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|
84,000
|
|
Hyundai
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|
|
2015
|
|
X
|
|
—
|
|
Pool-TCO(5)
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|
Q1 2024
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Cresques(3)
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84,000
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Daewoo
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|
|
2015
|
|
X
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|
S
|
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Pool-TCO(5)
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Q2 2025
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Constellation
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84,000
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Hyundai
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|
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2015
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X
|
|
S
|
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Pool(4)
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|
—
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Cheyenne
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84,000
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Hyundai
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|
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2015
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X
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S
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Pool-TCO(5)
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Q4 2023
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Clermont
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84,000
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Hyundai
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|
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2015
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X
|
|
S
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Pool-TCO(5)
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|
Q4 2023
|
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Cratis(3)
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84,000
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Daewoo
|
|
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2015
|
|
X
|
|
S
|
|
Pool(4)
|
|
—
|
|
Chaparral(3)
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|
84,000
|
|
Hyundai
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|
|
2015
|
|
X
|
|
—
|
|
Pool-TCO(5)
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|
Q2 2025
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|
Copernicus(3)
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|
84,000
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|
Daewoo
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|
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2015
|
|
X
|
|
S
|
|
Pool(4)
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|
—
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|
Commander
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|
84,000
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Hyundai
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|
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2015
|
|
X
|
|
S
|
|
Pool(4)
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|
—
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Challenger
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|
84,000
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Hyundai
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|
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2015
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|
X
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|
S
|
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Pool-TCO(5)
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Q3 2026
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Caravelle(3)
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84,000
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Hyundai
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2016
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|
X
|
|
—
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Pool(4)
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|
—
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Captain
Markos(3)
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84,000
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|
Kawasaki
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|
|
2023
|
|
X
|
|
DF
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|
Pool(4)
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|
—
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Total
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1,762,000
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Time chartered-in
VLGCs
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Future
Diamond(8)
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80,876
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Hyundai
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|
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2020
|
|
X
|
|
S
|
|
Pool(4)
|
|
—
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|
Astomos
Venus(9)
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83,309
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Mitsubishi
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|
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2016
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|
X
|
|
—
|
|
Pool(4)
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|
—
|
|
HLS
Citrine(10)
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|
86,090
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|
Hyundai
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|
|
2023
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|
X
|
|
DF
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|
Pool(4)
|
|
—
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|
HLS
Diamond(11)
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|
86,090
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|
Hyundai
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|
|
2023
|
|
X
|
|
DF
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|
Pool(4)
|
|
—
|
|
Cristobal(12)
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|
86,980
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Hyundai
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|
|
2023
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|
X
|
|
DF
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|
Pool(4)
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|
—
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_____________________________
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(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.
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(3)
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Operated pursuant to a
bareboat chartering agreement.
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(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.
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(6)
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Currently on a time
charter with an oil major that began in November
2019.
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(7)
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Currently on time
charter with a major oil company that began in March
2019.
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(8)
|
Currently time
chartered-in to our fleet with an expiration during the first
calendar quarter of 2025.
|
(9)
|
Currently time
chartered-in to our fleet with an expiration during the third
calendar quarter of 2023.
|
(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 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.
|
(12)
|
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
Despite additional announcements by OPEC+ to further cut crude
oil production, the average Brent Oil ("Brent") and West Texas
Intermediate ("WTI") price fell over the quarter, averaging around
$3-4 per barrel less in the second
calendar quarter of 2023 compared to the first calendar quarter of
2023.
Healthy LPG supply in the second calendar quarter of 2023
resulted in prices of propane dropping in all major regions. In the
U.S., exports were approximately 14.4 million metric tons during
the second calendar quarter of 2023. With adequate inventory
levels, additional production volumes have been priced to export
and propane prices fell from approximately 45% of WTI in the first
calendar quarter of 2023 to an average of 34% in June 2023. Butane has followed a similar trend
with limited upside for domestic demand in the U.S. resulting in
butane prices also falling to below 40% of WTI by the end of the
second calendar quarter of 2023.
Saudi Arabia saw exports of LPG
rise in the second calendar quarter of 2023, particularly in May,
resulting in posted contract prices dropping from an average of
$700 per metric ton in the first
calendar quarter of 2023 to $520 per
metric ton in the second calendar quarter of 2023 for propane and
from $712 per metric ton to
$513 per metric ton for butane over
the same time frame.
The lower prices of propane and butane were also observed in
major importing regions of the Far East and NW Europe. In NW
Europe, propane prices were seen to decline from an average
of 58% of Brent in the first calendar quarter of 2023 to an average
of 46% of Brent in the second calendar quarter of 2023. Eastern
propane prices saw a similar decline reaching an average of 54% of
Brent in the second calendar quarter of 2023. Butane prices saw a
larger decline after higher prices were realized in the first
calendar quarter of 2023 due to seasonal demand from gasoline
blending, and with demand deteriorating since then, prices have
also pulled back.
As a result of lower feedstock costs, LPG petrochemical margins
significantly improved. PDH margins in the East were maintained at
a similar level to those seen towards the end of the first calendar
quarter of 2023 and as a consequence, Chinese imports rose
throughout the second calendar quarter and are expected to be
nearly 3 million metric tons higher than the first calendar quarter
of 2023. Not all of the increased imported volume was consumed in
petrochemical applications, with inventory and retail demand also
increasing. Two new PDH plants started operations in China during the second calendar quarter of
2023, with a further five plants potentially starting over the next
quarter, although delays are expected.
On average, the second calendar quarter of 2023 saw cracker
margins improve for utilizing LPG as a feedstock over the previous
quarter. Negative margins for naphtha in the Far East and in
NW Europe have generally
maintained LPG's advantage, although consumption has not been
maximized with operating rates reducing in some plants. Both olefin
and polyolefin prices remain somewhat under pressure due to the
continued increase in production capacity at a time of sluggish
demand. Volatility is expected to continue throughout 2023.
The Baltic VLGC index strengthened further in the second
calendar quarter of 2023 from an average of around $87.4 per metric ton in the first calendar
quarter of 2023 to approximately $96
per metric ton in the second calendar quarter of 2023. The
continuously tight VLGC supply/demand balance, the strong arbs and
logistical constraints, including delays at the Panama Canal, have
kept the freight rates consistently above the 5-year highs for the
period.
A further 13 new VLGCs were added to the worldwide fleet during
the second calendar quarter of 2023 without causing a downward
freight dynamic. Panama Canal delays for the VLGC fleet in the
second calendar quarter of 2023 remained in line with the first
calendar quarter of 2023.
Currently, the VLGC orderbook stands at approximately 18% of the
current global fleet. An additional 66 VLGCs equivalent to roughly
5.9 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 10.5 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
|
|
|
(in U.S. dollars, except fleet data)
|
|
June 30, 2023
|
|
June 30, 2022
|
|
|
Statement of
Operations Data
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
111,562,907
|
|
$
|
76,823,722
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
Voyage
expenses
|
|
|
298,383
|
|
|
775,545
|
|
|
Charter hire
expenses
|
|
|
10,546,810
|
|
|
5,402,145
|
|
|
Vessel operating
expenses
|
|
|
19,842,386
|
|
|
17,067,913
|
|
|
Depreciation and
amortization
|
|
|
16,655,317
|
|
|
15,809,778
|
|
|
General and
administrative expenses
|
|
|
9,218,137
|
|
|
9,413,139
|
|
|
Total
expenses
|
|
|
56,561,033
|
|
|
48,468,520
|
|
|
Other income—related
parties
|
|
|
620,433
|
|
|
591,802
|
|
|
Operating
income
|
|
|
55,622,307
|
|
|
28,947,004
|
|
|
Other
income/(expenses)
|
|
|
|
|
|
|
|
|
Interest and finance
costs
|
|
|
(10,403,849)
|
|
|
(7,958,554)
|
|
|
Interest
income
|
|
|
1,690,220
|
|
|
408,278
|
|
|
Unrealized gain on
derivatives
|
|
|
2,859,274
|
|
|
2,454,234
|
|
|
Realized gain/(loss) on
derivatives
|
|
|
1,847,764
|
|
|
(50,384)
|
|
|
Other gains,
net
|
|
|
105,421
|
|
|
1,047,142
|
|
|
Total other
income/(expenses), net
|
|
|
(3,901,170)
|
|
|
(4,099,284)
|
|
|
Net income
|
|
$
|
51,721,137
|
|
$
|
24,847,720
|
|
|
Earnings per common
share—basic
|
|
|
1.29
|
|
|
0.62
|
|
|
Earnings per common
share—diluted
|
|
$
|
1.28
|
|
$
|
0.62
|
|
|
Financial
Data
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
|
74,849,872
|
|
$
|
46,871,074
|
|
|
Fleet
Data
|
|
|
|
|
|
|
|
|
Calendar
days(2)
|
|
|
1,911
|
|
|
1,820
|
|
|
Time chartered-in
days(3)
|
|
|
364
|
|
|
182
|
|
|
Available
days(4)
|
|
|
2,219
|
|
|
2,002
|
|
|
Operating
days(5)(8)
|
|
|
2,175
|
|
|
1,920
|
|
|
Fleet
utilization(6)(8)
|
|
|
98.0
|
%
|
|
95.9
|
%
|
|
Average Daily
Results
|
|
|
|
|
|
|
|
|
Time charter equivalent
rate(7)(8)
|
|
$
|
51,156
|
|
$
|
39,608
|
|
|
Daily vessel operating
expenses(9)
|
|
$
|
10,383
|
|
$
|
9,378
|
|
|
_______________________
|
(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
|
|
(in U.S. dollars)
|
|
June 30, 2023
|
|
June 30, 2022
|
|
Net income
|
|
$
|
51,721,137
|
|
$
|
24,847,720
|
|
Interest and finance
costs
|
|
|
10,403,849
|
|
|
7,958,554
|
|
Unrealized gain on
derivatives
|
|
|
(2,859,274)
|
|
|
(2,454,234)
|
|
Realized (gain)/loss on
interest rate swaps
|
|
|
(1,847,764)
|
|
|
50,384
|
|
Stock-based
compensation expense
|
|
|
776,607
|
|
|
658,872
|
|
Depreciation and
amortization
|
|
|
16,655,317
|
|
|
15,809,778
|
|
Adjusted
EBITDA
|
|
$
|
74,849,872
|
|
$
|
46,871,074
|
|
|
|
(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 revenues to TCE rate (unaudited) for
the periods presented:
|
|
|
|
Three months
ended
|
|
|
(in U.S. dollars,
except operating days)
|
|
June 30, 2023
|
|
June 30, 2022
|
|
|
Numerator:
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
111,562,907
|
|
$
|
76,823,722
|
|
|
Voyage
expenses
|
|
|
(298,383)
|
|
|
(775,545)
|
|
|
Time charter
equivalent
|
|
$
|
111,264,524
|
|
$
|
76,048,177
|
|
|
|
|
|
|
|
|
|
|
|
Pool
adjustment*
|
|
|
895,272
|
|
|
(514,015)
|
|
|
Time charter equivalent
excluding pool adjustment*
|
|
$
|
112,159,796
|
|
$
|
75,534,162
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
Operating
days
|
|
|
2,175
|
|
|
1,920
|
|
|
TCE
rate:
|
|
|
|
|
|
|
|
|
Time charter equivalent
rate
|
|
$
|
51,156
|
|
$
|
39,608
|
|
|
TCE rate excluding pool
adjustment*
|
|
$
|
51,568
|
|
$
|
39,341
|
|
|
|
|
|
* Adjusted for the
effect of reallocations of pool profits in accordance with the pool
participation agreements due to adjustments related to speed and
consumption performance of the vessels operating in the Helios
Pool.
|
|
|
(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
|
|
|
|
June 30, 2023
|
|
|
June 30, 2022
|
|
|
Company
Methodology:
|
|
|
|
|
|
|
|
|
Operating
Days
|
|
2,175
|
|
|
|
1,920
|
|
|
Fleet
Utilization
|
|
98.0
|
%
|
|
|
95.9
|
%
|
|
Time charter equivalent
rate
|
$
|
51,156
|
|
|
$
|
39,608
|
|
|
|
|
|
|
|
|
|
|
|
Alternate
Methodology:
|
|
|
|
|
|
|
|
|
Operating
Days
|
|
2,218
|
|
|
|
1,988
|
|
|
Fleet
Utilization
|
|
100.0
|
%
|
|
|
99.3
|
%
|
|
Time charter equivalent
rate
|
$
|
50,164
|
|
|
$
|
38,254
|
|
|
|
|
|
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
|
|
|
(in U.S. dollars,
except share data)
|
|
June 30, 2023
|
|
June 30, 2022
|
|
|
Net income
|
|
$
|
51,721,137
|
|
$
|
24,847,720
|
|
|
Unrealized gain on
derivatives
|
|
|
(2,859,274)
|
|
|
(2,454,234)
|
|
|
Adjusted net
income
|
|
$
|
48,861,863
|
|
$
|
22,393,486
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share—diluted
|
|
$
|
1.28
|
|
$
|
0.62
|
|
|
Unrealized gain on
derivatives
|
|
|
(0.07)
|
|
|
(0.06)
|
|
|
Adjusted earnings per
common share—diluted
|
|
$
|
1.21
|
|
$
|
0.56
|
|
|
The following table
presents our unaudited balance sheets as of the dates
presented:
|
|
|
|
As of
|
|
As of
|
|
|
|
June 30, 2023
|
|
March 31, 2023
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
155,548,745
|
|
$
|
148,797,232
|
|
Trade receivables, net
and accrued revenues
|
|
|
4,373,141
|
|
|
3,282,256
|
|
Due from related
parties
|
|
|
67,737,508
|
|
|
73,070,095
|
|
Inventories
|
|
|
2,377,543
|
|
|
2,642,395
|
|
Prepaid expenses and
other current assets
|
|
|
11,425,045
|
|
|
8,507,007
|
|
Total current
assets
|
|
|
241,461,982
|
|
|
236,298,985
|
|
Fixed
assets
|
|
|
|
|
|
|
|
Vessels, net
|
|
|
1,250,577,538
|
|
|
1,263,928,605
|
|
Other fixed assets,
net
|
|
|
48,213
|
|
|
48,213
|
|
Total fixed
assets
|
|
|
1,250,625,751
|
|
|
1,263,976,818
|
|
Other non-current
assets
|
|
|
|
|
|
|
|
Deferred charges,
net
|
|
|
11,196,123
|
|
|
8,367,301
|
|
Derivative
instruments
|
|
|
12,137,819
|
|
|
9,278,544
|
|
Due from related
parties—non-current
|
|
|
24,200,000
|
|
|
20,900,000
|
|
Restricted
cash—non-current
|
|
|
76,220
|
|
|
76,418
|
|
Operating lease
right-of-use assets
|
|
|
152,309,717
|
|
|
158,179,398
|
|
Available-for-sale
securities
|
|
|
11,307,104
|
|
|
11,366,838
|
|
Other non-current
assets
|
|
|
364,483
|
|
|
469,227
|
|
Total
assets
|
|
$
|
1,703,679,199
|
|
$
|
1,708,913,529
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
|
11,267,768
|
|
$
|
10,807,376
|
|
Accrued
expenses
|
|
|
6,916,466
|
|
|
5,637,725
|
|
Due to related
parties
|
|
|
242,778
|
|
|
168,793
|
|
Deferred
income
|
|
|
278,128
|
|
|
208,558
|
|
Current portion of
long-term operating lease liabilities
|
|
|
23,562,139
|
|
|
23,407,555
|
|
Current portion of
long-term debt
|
|
|
53,217,116
|
|
|
53,110,676
|
|
Dividends
payable
|
|
|
1,146,934
|
|
|
1,255,861
|
|
Total current
liabilities
|
|
|
96,631,329
|
|
|
94,596,544
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
Long-term debt—net of
current portion and deferred financing fees
|
|
|
591,226,676
|
|
|
604,256,670
|
|
Long-term operating
lease liabilities
|
|
|
128,760,545
|
|
|
134,782,483
|
|
Other long-term
liabilities
|
|
|
1,451,940
|
|
|
1,431,510
|
|
Total long-term
liabilities
|
|
|
721,439,161
|
|
|
740,470,663
|
|
Total
liabilities
|
|
|
818,070,490
|
|
|
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, 51,654,343 and 51,630,593
shares issued, 40,392,282 and 40,382,730 shares outstanding (net of
treasury stock), as of
June 30, 2023 and March 31, 2023,
respectively
|
|
|
516,544
|
|
|
516,306
|
|
Additional
paid-in-capital
|
|
|
765,159,661
|
|
|
764,383,292
|
|
Treasury stock, at
cost; 11,262,061 and 11,247,863 shares as of
June 30, 2023 and
March 31, 2023, respectively
|
|
|
(123,249,465)
|
|
|
(122,896,838)
|
|
Retained
earnings
|
|
|
243,181,969
|
|
|
231,843,562
|
|
Total shareholders'
equity
|
|
|
885,608,709
|
|
|
873,846,322
|
|
Total liabilities
and shareholders' equity
|
|
$
|
1,703,679,199
|
|
$
|
1,708,913,529
|
|
Conference Call
A conference call to discuss the results will be held on
Wednesday, August 2, 2023 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 13740308. The replay
will be available until August 9,
2023, 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-six 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 dividend referenced in this release is an irregular
dividend. 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.
Contact Information
Ted Young; Chief Financial
Officer: Tel.: +1 (203) 674-9900 or IR@dorianlpg.com
Source: Dorian LPG Ltd.
View original
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SOURCE Dorian LPG Ltd.