STAMFORD, Conn., Nov. 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
September 30, 2023.
Key Recent Development
- Declared an irregular cash dividend totaling $40.6 million to be paid on or about November 2, 2023.
Highlights for the Second Quarter Fiscal Year 2024
- Revenues of $144.7 million.
- Time Charter Equivalent ("TCE")(1) rate per
operating day for our fleet of $65,128.
- Net income of $76.5 million, or
$1.89 earnings per diluted share
("EPS"), and adjusted net income(1) of $75.0 million, or $1.85 adjusted earnings per diluted share
("adjusted EPS").(1)
- Adjusted EBITDA(1) of $104.6
million.
- Declared and paid an irregular cash dividend totaling
$40.6 million in September 2023.
(1)
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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, "Following record adjusted EBITDA in the
quarter, we declared our ninth dividend demonstrating our
commitment to creating shareholder value, while maintaining
sensible leverage levels and flexibility for fleet renewal. With an
increasingly uncertain world outlook we remain focused on the
safety of our dedicated seafarers, supported by our experienced
shoreside staff, as they provide a critical energy product to the
world with, a safe, reliable, clean and trouble free transportation
service."
Second Quarter Fiscal Year 2024 Results Summary
Net income amounted to $76.5
million, or $1.89 per diluted
share, for the three months ended September 30, 2023,
compared to $20.3 million, or
$0.51 per diluted share, for the
three months ended September 30, 2022.
Adjusted net income amounted to $75.0
million, or $1.85 per diluted
share, for the three months ended September 30, 2023,
compared to adjusted net income of $17.2
million, or $0.43 per diluted
share, for the three months ended September 30, 2022.
Adjusted net income for the three months ended
September 30, 2023 is calculated by adjusting net income
for the same period to exclude an unrealized gain on derivative
instruments of $1.6 million. Please
refer to the reconciliation of net income to adjusted net income,
which appears later in this press release.
The $57.8 million increase in
adjusted net income for the three months ended
September 30, 2023, compared to the three months ended
September 30, 2022, is primarily attributable to
increases of $68.7 million in
revenues, $1.3 in realized gain on
derivatives and $1.2 million in
interest income and a reduction of $1.7
million in interest and finance costs; partially offset by
increases of $6.7 million in charter
hire expenses, $5.4 million in
general and administrative expenses, $3.4
million in vessel operating expenses, and $1.1 million in depreciation and
amortization.
The TCE rate per operating day for our fleet was $65,128 for the three months ended
September 30, 2023, a 60.3% increase from $40,632 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 90.7% during the three months ended
September 30, 2022 to 96.5% during the three months ended
September 30, 2023.
Vessel operating expenses per day increased to $10,858 for the three months ended
September 30, 2023 compared to $9,541 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 $144.7 million for the three months ended
September 30, 2023, an increase of
$68.7 million, or 90.5%, from
$76.0 million for the three months
ended September 30, 2022 primarily
due to an increase in average TCE rates, fleet utilization, and
fleet size. Average TCE rates increased by $24,496 per operating day from $40,632 for the three months ended September 30, 2022 to $65,128 for the three months ended September 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 $121.007 during the three months ended
September 30, 2023 compared to an
average of $66.710 for the three
months ended September 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 $840 during the three months ended September 30, 2022, to $625 during the three months ended September 30, 2023. Our fleet utilization
increased from 90.7% during the three months ended September 30, 2022 to 96.5% during the three
months ended September 30, 2023. Our
available days increased from 2,024 for the three months ended
September 30, 2022 to 2,284 for the
three months ended September 30, 2023
due to three additional vessels in our fleet, slightly offset by
one vessel being in drydock for part of the period.
Charter Hire Expenses
Charter hire expenses for the vessels chartered in from third
parties were $12.1 million and
$5.4 million for the three months
ended September 30, 2023 and 2022,
respectively. The increase of $6.7
million, or 125.2%, was mainly caused by an increase in the
number of chartered-in days from 184 for the three months ended
September 30, 2022 to 416 for the
three months ended September 30,
2023.
Vessel Operating Expenses
Vessel operating expenses were $21.0
million during the three months ended September 30, 2023, or $10,858 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 $3.4
million, or 19.5% from $17.6
million for the three months ended September 30, 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 September 30,
2022 to 1,932 during the three months ended September 30, 2023 days resulting from the
delivery of our dual-fuel VLGC Captain Markos in March 2023. The increase of $1,317 per vessel per calendar day, from
$9,541 for the three months ended
September 30, 2022 to $10,858 per vessel per calendar day for the three
months ended September 30, 2023 was
primarily the result of increases of $455 per vessel per calendar day for spares and
stores, $257 per vessel per calendar
day for miscellaneous expenses excluding coolant costs, and
$206 per vessel per calendar day for
repairs and maintenance. Of the $1,317 per day increase during the three months
ended September 30, 2023,
$459 was related to non-capitalizable
drydocking-related expenses. Without the effect of those costs,
operating expenses per day increased $858.
General and Administrative Expenses
General and administrative expenses were $13.6 million for the three months ended
September 30, 2023, an increase of
$5.4 million, or 66.1%, from
$8.2 million for the three months
ended September 30, 2022 and was
driven by an increase of $2.7 million
in cash bonuses resulting from differences in the timing of the
approvals of cash bonuses to certain employees in the periods ended
September 30, 2023 and 2022 along
with increases of $2.4 million in
stock-based compensation and $0.3
million in employee-related costs and benefits for the three
months ended September 30, 2023.
Interest and Finance Costs
Interest and finance costs amounted to $10.3 million for the three months ended
September 30, 2023, a decrease of
$1.7 million, or 14.0%, from
$12.0 million for the three months
ended September 30, 2022. The
decrease of $1.7 million during this
period was mainly due to reductions of $3.7
million in amortization of financing costs (due to
accelerated amortization for the refinancing of our long-term debt
in the prior period) and $0.6 million
in loan expenses, partially offset by an increase of $1.9 million in interest incurred on our
long-term debt and a reduction of $0.7
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 Secured Overnight Financing Rate
("SOFR") on our floating-rate long-term debt, partially offset
by a decrease in average indebtedness, excluding deferred financing
fees, from $702.4 million for the
three months ended September 30, 2022
to $645.0 million for the three
months ended September 30, 2023. As
of September 30, 2023, the
outstanding balance of our long-term debt, net of deferred
financing fees of $5.6 million, was
$631.5 million.
Unrealized Gain on Derivatives
Unrealized gain on derivatives amounted to $1.6 million for the three months ended
September 30, 2023, compared to a
gain of $3.1 million for the three
months ended September 30, 2022. The
$1.5 million reduction is
attributable to changes in forward SOFR yield curves and reductions
in notional amounts.
Realized Gain on Derivatives
Realized gain on derivatives amounted to $1.9 million for the three months ended
September 30, 2023, compared to a
realized gain of $0.6 million for the
three months ended September 30,
2022. The favorable $1.3
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 October 26, 2023.
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Scrubber
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Time
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Capacity
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ECO
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Equipped
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Charter-Out
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(Cbm)
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Shipyard
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Year Built
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Vessel(1)
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or
Dual-Fuel
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Employment
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Expiration(2)
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DorianVLGCs
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Captain John
NP
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82,000
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Hyundai
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2007
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—
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—
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Pool(4)
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—
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Comet
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84,000
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Hyundai
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2014
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X
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S
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Pool(4)
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—
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Corsair(3)
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84,000
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Hyundai
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2014
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X
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S
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Time
Charter(6)
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Q4 2024
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Corvette
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84,000
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Hyundai
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2015
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X
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S
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Pool(4)
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—
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Cougar(3)
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84,000
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Hyundai
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2015
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X
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—
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Pool-TCO(5)
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Q1 2025
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Concorde
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84,000
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Hyundai
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2015
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X
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S
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Time
Charter(7)
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Q1 2024
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Cobra
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84,000
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Hyundai
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2015
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X
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—
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Pool(4)
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—
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Continental
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84,000
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Hyundai
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2015
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X
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—
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Pool-TCO(5)
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Q4 2023
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Constitution
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84,000
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Hyundai
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2015
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X
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S
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Pool(4)
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—
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Commodore
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84,000
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Hyundai
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2015
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X
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—
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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
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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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2015
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X
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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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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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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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Cratis(3)
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84,000
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Daewoo
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2015
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X
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S
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Pool(4)
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—
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Chaparral(3)
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84,000
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Hyundai
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2015
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X
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—
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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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2015
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X
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S
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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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2015
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X
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S
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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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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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S
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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
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X
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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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2020
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X
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S
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Pool(4)
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—
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HLS
Citrine(9)
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86,090
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Hyundai
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2023
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X
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DF
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Pool(4)
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—
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HLS
Diamond(10)
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86,090
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Hyundai
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2023
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X
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DF
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Pool(4)
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—
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Cristobal(11)
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86,980
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Hyundai
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2023
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X
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DF
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Pool(4)
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—
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(1)
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Represents vessels with
very low revolutions per minute, long-stroke, electronically
controlled engines, larger propellers, advanced hull design, and
low friction paint.
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(2)
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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)
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"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.
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(5)
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"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)
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Currently time
chartered-in to our fleet with an expiration during the first
calendar quarter of 2025.
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(9)
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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.
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(10)
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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.
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(11)
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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.
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Market Outlook & Update
Both propane and butane prices increased in Northwest ("NW")
Europe and in Northeast ("NE")
Asia in the third calendar quarter
of 2023 ("Q3 2023") compared to the second calendar quarter of 2023
("Q2 2023"). Higher Brent prices
drove increased commodity prices, with propane prices in
NW Europe rising from
approximately $452 per metric ton on
average in Q2 2023 to over $520 per
metric ton in Q3 2023. Eastern propane prices saw an even larger
rise increasing from an average of $530 per metric ton in Q2 2023 to $634 per metric ton in Q3 2023. Butane prices in
NE Asia and NW Europe followed a similar trend .
Natural gas liquids production in the U.S. continued to rise and
inventory levels of both propane and butane grew during the third
quarter of 2023. U.S. exports improved sequentially to
approximately 14.7 million metric tons ("mmt") in Q3 2023 compared
to 14.6 mmt in Q2 2023. For the January – September period of 2023,
LPG exports increased to 43.5 mmts, compared to 38.6 mmt for the
same period in 2022. The increase in both production and
inventories drove a decline in LPG prices relative to West Texas
Intermediate ("WTI") during the September
30 quarter compared to the June
30 quarter. Propane Mt Belvieu prices averaged 35% of WTI in
Q3 2023 compared to 39% of WTI in Q2 2023. Butane averaged 42% of
WTI in Q3 2023 vs 44% of WTI in the previous quarter.
Saudi Arabia, deepened its
crude oil production cuts, dropping to around nine million barrels
per day ("mmb/d") of crude oil compared to an average of 10.1 mmb/d
in Q2 2023. Consequently, LPG supply and exports were reduced in
total to 1.7 mmt in Q3 2023 compared to 2.6 mmt in Q2 2023.
Overall, global LPG seaborne supply is estimated to have fallen in
Q3 2023 by approximately 1.5 mmt when compared to Q2 2023, driven
by a rise in supply seen in Q2 2023. However, global exports are up
14% to 98.5 mmt for the January – September period of 2023,
compared to 86.6 mmt for the same period in 2022.
LPG continued to show a strong advantage vs naphtha in
NW Europe, with the
propane-naphtha spread remaining over minus $100 per metric ton. However, global
petrochemical demand remained subdued with margins averaging
negative values both East and West for propane and butane. Naphtha
continued to show weaker margins than LPG and hence LPG's advantage
over naphtha resulted in continued consumption of LPG into steam
crackers despite the negative margins. PDH margins worsened
throughout the quarter falling from an average variable margin of
$141 per metric ton in Q2 2023 to
-$47 per metric ton in Q3 2023. As a
result, many PDH plants lowered their operating rates and overall
Chinese imports of LPG subsided in Q3 2023 compared to the previous
quarter.
The largest influence on the LPG trade in Q3 2023 was the
shipping market where the Baltic VLGC index continued to strengthen
from an average of around $95.7 per
metric ton in Q2 2023 to around $121.1 per metric ton in Q3 2023, with volatility
reaching record levels in 2023. The continuously tight VLGC
supply/demand balance, strong arbs, and logistical
constraints have kept the freight rates consistently above the
five-year highs for the period.
Approximately 12 new VLGCs were added during Q3 2023, without
causing a downward freight dynamic. High freight rates, continued
Panama Canal delays and high slot bidding seen throughout Q3 2023
led many market players to redirect vessels around the Cape of Good
Hope.
Currently the VLGC orderbook stands at approximately 18% of the
current global fleet. An additional 68 VLGCs equivalent to roughly
6.1 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 10.3 years old. The projected
delivery schedule is evenly spaced, with about 16-17 VLGCs per year
going forward. Against the backdrop of 33 VLGCs delivered year to
date with firm freight rates, and anticipated production growth in
North American Natural Gas Liquids, the absorption of the future
orderbook appears less formidable than in past industry cycles.
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:
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Three months
ended
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Six months
ended
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(in U.S. dollars, except fleet data)
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September 30, 2023
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September 30, 2022
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September 30, 2023
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September 30, 2022
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Statement of
Operations Data
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Revenues
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$
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144,698,462
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$
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75,968,187
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$
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256,261,369
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$
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152,791,909
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Expenses
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Voyage
expenses
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1,221,228
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1,367,618
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1,519,611
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2,143,163
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Charter hire
expenses
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12,068,419
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5,358,333
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|
|
22,615,229
|
|
|
10,760,478
|
|
Vessel operating
expenses
|
|
|
20,977,119
|
|
|
17,554,707
|
|
|
|
40,819,505
|
|
|
34,622,620
|
|
Depreciation and
amortization
|
|
|
17,045,919
|
|
|
15,937,420
|
|
|
|
33,701,236
|
|
|
31,747,198
|
|
General and
administrative expenses
|
|
|
13,578,648
|
|
|
8,176,031
|
|
|
|
22,796,785
|
|
|
17,589,170
|
|
Total
expenses
|
|
|
64,891,333
|
|
|
48,394,109
|
|
|
|
121,452,366
|
|
|
96,862,629
|
|
Other income—related
parties
|
|
|
680,950
|
|
|
563,738
|
|
|
|
1,301,383
|
|
|
1,155,540
|
|
Operating
income
|
|
|
80,488,079
|
|
|
28,137,816
|
|
|
|
136,110,386
|
|
|
57,084,820
|
|
Other
income/(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and finance
costs
|
|
|
(10,314,881)
|
|
|
(11,997,163)
|
|
|
|
(20,718,730)
|
|
|
(19,955,717)
|
|
Interest
income
|
|
|
2,030,752
|
|
|
767,211
|
|
|
|
3,720,972
|
|
|
1,175,489
|
|
Unrealized gain on
derivatives
|
|
|
1,560,594
|
|
|
3,092,845
|
|
|
|
4,419,868
|
|
|
5,547,079
|
|
Realized gain on
derivatives
|
|
|
1,928,217
|
|
|
644,195
|
|
|
|
3,775,981
|
|
|
593,811
|
|
Other gain/(loss),
net
|
|
|
819,904
|
|
|
(333,439)
|
|
|
|
925,325
|
|
|
713,703
|
|
Total other
income/(expenses), net
|
|
|
(3,975,414)
|
|
|
(7,826,351)
|
|
|
|
(7,876,584)
|
|
|
(11,925,635)
|
|
Net income
|
|
$
|
76,512,665
|
|
$
|
20,311,465
|
|
|
$
|
128,233,802
|
|
$
|
45,159,185
|
|
Earnings per common
share—basic
|
|
|
1.90
|
|
|
0.51
|
|
|
|
3.19
|
|
|
1.13
|
|
Earnings per common
share—diluted
|
|
$
|
1.89
|
|
$
|
0.51
|
|
|
$
|
3.18
|
|
|
1.12
|
|
Financial
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
|
104,564,452
|
|
$
|
46,249,336
|
|
|
$
|
179,414,324
|
|
$
|
93,120,410
|
|
Fleet
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calendar
days(2)
|
|
|
1,932
|
|
|
1,840
|
|
|
|
3,843
|
|
|
3,660
|
|
Time chartered-in
days(3)
|
|
|
416
|
|
|
184
|
|
|
|
780
|
|
|
366
|
|
Available
days(4)
|
|
|
2,284
|
|
|
2,024
|
|
|
|
4,503
|
|
|
4,026
|
|
Operating
days(5)(8)
|
|
|
2,203
|
|
|
1,836
|
|
|
|
4,378
|
|
|
3,756
|
|
Fleet
utilization(6)(8)
|
|
|
96.5
|
%
|
|
90.7
|
%
|
|
|
97.2
|
%
|
|
93.3
|
%
|
Average Daily
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time charter equivalent
rate(7)(8)
|
|
$
|
65,128
|
|
$
|
40,632
|
|
|
$
|
58,187
|
|
$
|
40,109
|
|
Daily vessel operating
expenses(9)
|
|
$
|
10,858
|
|
$
|
9,541
|
|
|
$
|
10,622
|
|
$
|
9,460
|
|
(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
|
|
Six months
ended
|
|
(in U.S. dollars)
|
|
September 30, 2023
|
|
September 30, 2022
|
|
September 30, 2023
|
|
September 30, 2022
|
|
Net income
|
|
$
|
76,512,665
|
|
$
|
20,311,465
|
|
$
|
128,233,802
|
|
$
|
45,159,185
|
|
Interest and finance
costs
|
|
|
10,314,881
|
|
|
11,997,163
|
|
|
20,718,730
|
|
|
19,955,717
|
|
Unrealized gain on
derivatives
|
|
|
(1,560,594)
|
|
|
(3,092,845)
|
|
|
(4,419,868)
|
|
|
(5,547,079)
|
|
Realized gain on
interest rate swaps
|
|
|
(1,928,217)
|
|
|
(644,195)
|
|
|
(3,775,981)
|
|
|
(593,811)
|
|
Stock-based
compensation expense
|
|
|
4,179,798
|
|
|
1,740,328
|
|
|
4,956,405
|
|
|
2,399,200
|
|
Depreciation and
amortization
|
|
|
17,045,919
|
|
|
15,937,420
|
|
|
33,701,236
|
|
|
31,747,198
|
|
Adjusted
EBITDA
|
|
$
|
104,564,452
|
|
$
|
46,249,336
|
|
$
|
179,414,324
|
|
$
|
93,120,410
|
|
(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
|
|
|
Six months ended
|
|
(in U.S. dollars, except operating
days)
|
|
September 30, 2023
|
|
September 30, 2022
|
|
|
September 30, 2023
|
|
September 30, 2022
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
144,698,462
|
|
$
|
75,968,187
|
|
|
$
|
256,261,369
|
|
$
|
152,791,909
|
|
Voyage
expenses
|
|
|
(1,221,228)
|
|
|
(1,367,618)
|
|
|
|
(1,519,611)
|
|
|
(2,143,163)
|
|
Time charter
equivalent
|
|
$
|
143,477,234
|
|
$
|
74,600,569
|
|
|
$
|
254,741,758
|
|
$
|
150,648,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pool
adjustment*
|
|
|
—
|
|
|
—
|
|
|
|
895,272
|
|
|
(514,015)
|
|
Time charter equivalent
excluding pool adjustment*
|
|
$
|
143,477,234
|
|
$
|
74,600,569
|
|
|
$
|
255,637,030
|
|
$
|
150,134,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
days
|
|
|
2,203
|
|
|
1,836
|
|
|
|
4,378
|
|
|
3,756
|
|
TCE rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time charter equivalent
rate
|
|
$
|
65,128
|
|
$
|
40,632
|
|
|
$
|
58,187
|
|
$
|
40,109
|
|
TCE rate excluding pool
adjustment*
|
|
$
|
65,128
|
|
$
|
40,632
|
|
|
$
|
58,391
|
|
$
|
39,972
|
|
|
* 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
|
|
|
Six months ended
|
|
|
September 30, 2023
|
|
|
September 30, 2022
|
|
|
September 30, 2023
|
|
|
September 30, 2022
|
|
Company Methodology:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Days
|
|
2,203
|
|
|
|
1,836
|
|
|
|
4,378
|
|
|
|
3,756
|
|
Fleet
Utilization
|
|
96.5
|
%
|
|
|
90.7
|
%
|
|
|
97.2
|
%
|
|
|
93.3
|
%
|
Time charter equivalent
rate
|
$
|
65,128
|
|
|
$
|
40,632
|
|
|
$
|
58,187
|
|
|
$
|
40,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alternate Methodology:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Days
|
|
2,284
|
|
|
|
2,021
|
|
|
|
4,502
|
|
|
|
4,009
|
|
Fleet
Utilization
|
|
100.0
|
%
|
|
|
99.9
|
%
|
|
|
100.0
|
%
|
|
|
99.6
|
%
|
Time charter equivalent
rate
|
$
|
62,818
|
|
|
$
|
36,913
|
|
|
$
|
56,584
|
|
|
$
|
37,578
|
|
|
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
|
|
|
Six months
ended
|
|
(in U.S. dollars,
except share data)
|
|
September 30, 2023
|
|
September 30, 2022
|
|
|
September 30, 2023
|
|
September 30, 2022
|
|
Net income
|
|
$
|
76,512,665
|
|
$
|
20,311,465
|
|
|
$
|
128,233,802
|
|
$
|
45,159,185
|
|
Unrealized gain on
derivatives
|
|
|
(1,560,594)
|
|
|
(3,092,845)
|
|
|
|
(4,419,868)
|
|
|
(5,547,079)
|
|
Adjusted net
income
|
|
$
|
74,952,071
|
|
$
|
17,218,620
|
|
|
$
|
123,813,934
|
|
$
|
39,612,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share—diluted
|
|
$
|
1.89
|
|
$
|
0.51
|
|
|
$
|
3.18
|
|
$
|
1.12
|
|
Unrealized gain on
derivatives
|
|
|
(0.04)
|
|
|
(0.08)
|
|
|
|
(0.11)
|
|
|
(0.13)
|
|
Adjusted earnings per
common share—diluted
|
|
$
|
1.85
|
|
$
|
0.43
|
|
|
$
|
3.07
|
|
$
|
0.99
|
|
The following table presents our unaudited balance sheets as of
the dates presented:
|
|
|
|
|
|
|
|
|
|
As of
|
|
As of
|
|
|
|
September 30, 2023
|
|
March 31, 2023
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
192,044,128
|
|
$
|
148,797,232
|
|
Trade receivables, net
and accrued revenues
|
|
|
1,010,622
|
|
|
3,282,256
|
|
Due from related
parties
|
|
|
65,985,317
|
|
|
73,070,095
|
|
Inventories
|
|
|
2,684,640
|
|
|
2,642,395
|
|
Prepaid expenses and
other current assets
|
|
|
15,684,776
|
|
|
8,507,007
|
|
Total current
assets
|
|
|
277,409,483
|
|
|
236,298,985
|
|
Fixed
assets
|
|
|
|
|
|
|
|
Vessels, net
|
|
|
1,238,427,422
|
|
|
1,263,928,605
|
|
Other fixed assets,
net
|
|
|
—
|
|
|
48,213
|
|
Total fixed
assets
|
|
|
1,238,427,422
|
|
|
1,263,976,818
|
|
Other non-current
assets
|
|
|
|
|
|
|
|
Deferred charges,
net
|
|
|
12,278,747
|
|
|
8,367,301
|
|
Derivative
instruments
|
|
|
13,698,413
|
|
|
9,278,544
|
|
Due from related
parties—non-current
|
|
|
25,300,000
|
|
|
20,900,000
|
|
Restricted
cash—non-current
|
|
|
74,519
|
|
|
76,418
|
|
Operating lease
right-of-use assets
|
|
|
207,234,723
|
|
|
158,179,398
|
|
Available-for-sale
securities
|
|
|
9,518,211
|
|
|
11,366,838
|
|
Other non-current
assets
|
|
|
83,418
|
|
|
469,227
|
|
Total
assets
|
|
$
|
1,784,024,936
|
|
$
|
1,708,913,529
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
|
12,451,265
|
|
$
|
10,807,376
|
|
Accrued
expenses
|
|
|
5,095,067
|
|
|
5,637,725
|
|
Due to related
parties
|
|
|
17,397
|
|
|
168,793
|
|
Deferred
income
|
|
|
2,316,452
|
|
|
208,558
|
|
Current portion of
long-term operating lease liabilities
|
|
|
31,471,560
|
|
|
23,407,555
|
|
Current portion of
long-term debt
|
|
|
53,324,694
|
|
|
53,110,676
|
|
Dividends
payable
|
|
|
640,770
|
|
|
1,255,861
|
|
Total current
liabilities
|
|
|
105,317,205
|
|
|
94,596,544
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
Long-term debt—net of
current portion and deferred financing fees
|
|
|
578,167,289
|
|
|
604,256,670
|
|
Long-term operating
lease liabilities
|
|
|
175,777,685
|
|
|
134,782,483
|
|
Other long-term
liabilities
|
|
|
1,453,542
|
|
|
1,431,510
|
|
Total long-term
liabilities
|
|
|
755,398,516
|
|
|
740,470,663
|
|
Total
liabilities
|
|
|
860,715,721
|
|
|
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
September 30, 2023 and March 31, 2023, respectively
|
|
|
519,554
|
|
|
516,306
|
|
Additional
paid-in-capital
|
|
|
769,336,449
|
|
|
764,383,292
|
|
Treasury stock, at
cost; 11,347,516 and 11,247,863 shares as of September 30, 2023
and
March 31, 2023, respectively
|
|
|
(125,670,534)
|
|
|
(122,896,838)
|
|
Retained
earnings
|
|
|
279,123,746
|
|
|
231,843,562
|
|
Total shareholders'
equity
|
|
|
923,309,215
|
|
|
873,846,322
|
|
Total liabilities
and shareholders' equity
|
|
$
|
1,784,024,936
|
|
$
|
1,708,913,529
|
|
Conference Call
A conference call to discuss the results will be held on
Thursday, November 2, 2023 at
10:00 a.m. ET. The conference call
can be accessed live by dialing 1-855-327-6837, or for
international callers, 1-631-891-4304, 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 10022682. The replay
will be available until November 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-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.
Contact Information
Ted Young; Chief Financial
Officer: Tel.: +1 (203) 674-9900 or IR@dorianlpg.com
Source: Dorian LPG Ltd.
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content:https://www.prnewswire.com/news-releases/dorian-lpg-ltd-announces-second-quarter-fiscal-year-2024-financial-results-301975165.html
SOURCE Dorian LPG Ltd.