STAMFORD, Conn., Feb. 1, 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
December 31, 2022, and announced that its Board of
Directors has declared an irregular cash dividend of $1.00 per share of the Company's common stock,
returning over $40.3 million of
capital to shareholders. The dividend is payable on or about
February 28, 2023 to all shareholders
of record as of the close of business on February 15, 2023.
Key Recent Developments
- Declared an irregular cash dividend totaling over $40.3 million.
Highlights for the Third Quarter Fiscal Year 2023
- Revenues of $103.3 million.
- Time Charter Equivalent ("TCE")(1) rate per
operating day for our fleet of $52,768.
- Net income of $51.3 million, or
$1.27 earnings per diluted share
("EPS"), and adjusted net income(1) of $52.0 million, or $1.29 adjusted earnings per diluted share
("adjusted EPS").(1)
- Adjusted EBITDA(1) of $76.2
million.
- Paid an irregular cash dividend of $1.00 per share of our common stock to all
shareholders of record as of the close of business on November 7, 2022.
- Committed to the installation of scrubbers on three additional
vessels, which are expected to be completed during calendar year
2023.
- Exercised the option to extend the time charter-in of the
2020-built Future Diamond to our fleet with an expiration
during the first calendar quarter of 2025.
- Extended the time charter-out of the 2015-built Concorde
and the 2014-built Corsair with expirations during the first
and fourth calendar quarters of 2024, respectively.
(1)
|
TCE, adjusted net
income, adjusted EPS and adjusted EBITDA are non-U.S. GAAP
measures. Refer to the reconciliation of revenues to TCE, net
income to adjusted net income, EPS to adjusted EPS and net income
to adjusted EBITDA included in this press release under the heading
"Financial Information."
|
John C. Hadjipateras,
Chairman, President and Chief Executive Officer of the
Company, commented, "We were pleased to deliver results for the
quarter led by strong TCEs. Our chartering performance drove good
cash generation and solid forward bookings, which enabled us to pay
a dividend of $1.00 per share,
increasing our total dividends declared in the last twelve months
to $5.50 per share and cumulative
cash returns to shareholders of over $535
million since our IPO. We remain positive on our core
business and look forward to four additional VLGCs joining our
fleet during calendar year 2023 and additional earnings capacity
following scrubber installations on three additional vessels. We
closely monitor evolving technologies and opportunities in our
sector as well as potentially attractive investments in related
areas. As always, I acknowledge, with gratitude, the good work of
Dorian's people working at sea and on shore".
Third Quarter Fiscal Year 2023 Results Summary
Net income amounted to $51.3
million, or $1.27 per diluted
share, for the three months ended December 31, 2022,
compared to $16.6 million, or
$0.41 per diluted share, for the
three months ended December 31, 2021.
Adjusted net income amounted to $52.0
million, or $1.29 per diluted
share, for the three months ended December 31, 2022,
compared to adjusted net income of $13.5
million, or $0.34 per diluted
share, for the three months ended December 31, 2021.
Adjusted net income for the three months ended
December 31, 2022 is calculated by adjusting net income
for the same period to exclude an unrealized loss on derivative
instruments of $0.7 million. Please
refer to the reconciliation of net income to adjusted net income,
which appears later in this press release.
The $38.5 million increase in
adjusted net income for the three months ended
December 31, 2022, compared to the three months ended
December 31, 2021, is primarily attributable to increases
of $34.7 million in revenues and
$1.1 million in interest income, a
$2.3 million favorable change in
realized gain/(loss) on derivatives, a $1.3
million favorable change in other gain/(loss) and net
decreases of $0.9 million in
depreciation and amortization, $0.4
million in voyage expenses and $0.3
million in vessel operating expenses, partially offset by
increases of $1.2 million in interest
and finance costs, $1.0 million in
general and administrative expenses, and $0.3 million in charter hire expenses.
The TCE rate per operating day for our fleet was $52,768 for the three months ended
December 31, 2022, a 57.5% increase from $33,508 for the same period in the prior year,
driven by higher spot rates despite higher bunker prices. Please
see footnote 7 to the table in "Financial Information" below for
information related to how we calculate TCE. Total fleet
utilization (including the utilization of our vessels deployed in
the Helios Pool) decreased from 98.5% during the three months ended
December 31, 2021 to 97.8% during the three months ended
December 31, 2022.
Vessel operating expenses per day increased to $9,739 for the three months ended
December 31, 2022 compared to $9,423 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 $103.3 million for the three months ended
December 31, 2022, an increase of $34.7 million, or 50.6%, from $68.6 million for the three months ended
December 31, 2021 primarily due to an increase in average
TCE rates, partially offset by a decrease in fleet utilization.
Average TCE rates increased by $19,260 per operating day from $33,508 for the three months ended
December 31, 2021 to $52,768 for the three months ended
December 31, 2022, primarily due to higher spot rates
despite higher 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 $119.106 during the three months ended
December 31, 2022 compared to an average of $59.252 for the three months ended
December 31, 2021. The average price of very low sulfur
fuel oil (expressed as U.S. dollars per metric ton) from
Singapore and Fujairah increased from $609 during the three months ended
December 31, 2021, to $676
during the three months ended December 31, 2022. Our
fleet utilization decreased from 98.5% during the three months
ended December 31, 2021 to 97.8% during the three months
ended December 31, 2022.
Charter Hire Expenses
Charter hire expenses for the vessels chartered in from third
parties were $5.2 million and
$4.9 million for the three months
ended December 31, 2022 and 2021, respectively. The
increase of $0.3 million, or 6.1%,
was mainly caused by an increase in the number of chartered-in days
from 169 for the three months ended December 31, 2021 to
184 for the three months ended December 31, 2022.
Vessel Operating Expenses
Vessel operating expenses were $17.9
million during the three months ended
December 31, 2022, or $9,739 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 decrease of $0.3
million, or 1.6% from $18.2
million for the three months ended
December 31, 2021 was due to a reduction of calendar days
for our fleet from 1,932 during the three months ended
December 31, 2021 to 1,840 during the three months ended
December 31, 2022, driven by the sale of Captain
Nicholas ML prior to the three
months ended December 31, 2022. The increase of
$315 per vessel per calendar day,
from $9,423 for the three months
ended December 31, 2021 to $9,739 per vessel per calendar day for the three
months ended December 31, 2022 was primarily the result
of increases of $115 per vessel per
calendar day in operating expenses related to lubricants,
$110 per vessel per calendar day in
operating expenses related to repairs and maintenance, and spares
and stores, and $65 per vessel per
calendar day in operating expenses related to crew wages and
related costs, for the three months ended December 31, 2022.
General and Administrative Expenses
General and administrative expenses were $6.9 million for the three months ended
December 31, 2022, an increase of $1.0 million, or 18.4%, from $5.9 million for the three months ended
December 31, 2021. This increase was driven by
$0.2 million in financial support for
the families of our Ukrainian and Russian seafarers affected by the
events in Ukraine and increases of
$0.4 million and $0.4 million in stock-based compensation and
other general and administrative expenses, respectively, for the
three months ended December 31, 2022.
Interest and Finance Costs
Interest and finance costs amounted to $8.6 million for the three months ended
December 31, 2022, an increase of $1.2 million, or 16.5%, from $7.4 million for the three months ended
December 31, 2021. The increase of $1.2 million during this period was mainly due to
an increase of $3.1 million in
interest incurred on our long-term debt, partially offset by a
decrease of $1.5 million in
amortization of financing costs resulting from the refinancing of
Commander and Constellation during the three months
ended December 31, 2021, and an
increase in capitalized interest of $0.3
million. 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, and an increase in average
indebtedness, excluding deferred financing fees, from $576.0 million for the three months ended
December 31, 2021 to $645.0
million for the three months ended
December 31, 2022. The increase in average indebtedness
is due to the 2022 Debt Facility refinancing prior to the three
months ended December 31, 2022. As of
December 31, 2022, the outstanding balance of our
long-term debt, net of deferred financing fees of $6.3 million, was $629.3
million.
Unrealized Gain/(Loss) on Derivatives
Unrealized loss on derivatives amounted to $0.7 million for the three months ended
December 31, 2022, compared to a gain of $3.1 million for the three months ended
December 31, 2021. The $3.8
million swing is attributable to reductions in notional
amounts and an unfavorable change in forward SOFR yield curves
(forward LIBOR curves in the prior period).
Realized Gain/(Loss) on Derivatives
Realized gain on derivatives amounted to $1.4 million for the three months ended
December 31, 2022, compared to a realized loss of
$0.9 million for the three months
ended December 31, 2021. The favorable $2.3 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 January
27, 2023.
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Capacity
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Sister
|
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ECO
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Scrubber
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Charter
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(Cbm)
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Shipyard
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Ships
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Year Built
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Vessel(1)
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Equipped
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Employment
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Expiration(2)
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Dorian
VLGCs
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|
|
|
|
|
|
|
|
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|
|
|
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Captain John
NP
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82,000
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Hyundai
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A
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|
2007
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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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B
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2014
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X
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X
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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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B
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2014
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X
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|
X
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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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B
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2015
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X
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X
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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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B
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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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Concorde
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84,000
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Hyundai
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B
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2015
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X
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X
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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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B
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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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B
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2015
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X
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—
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Pool(4)
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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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B
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2015
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X
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X
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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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B
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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 2023
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Cresques(3)
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84,000
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Daewoo
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C
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2015
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X
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X
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Pool(4)
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—
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Constellation
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84,000
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Hyundai
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B
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2015
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X
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X
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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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B
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2015
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X
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X
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Pool-TCO(5)
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Q2 2023
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Clermont
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84,000
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Hyundai
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B
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2015
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X
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X
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Pool-TCO(5)
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Q1 2023
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Cratis(3)
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84,000
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Daewoo
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C
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2015
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X
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X
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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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B
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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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Copernicus(3)
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84,000
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Daewoo
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C
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2015
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X
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X
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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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B
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2015
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X
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X
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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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B
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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 2023
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Caravelle(3)
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84,000
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Hyundai
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B
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2016
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X
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—
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Pool(4)
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—
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Total
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1,678,000
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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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X
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Pool(4)
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—
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Astomos
Venus(9)
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77,367
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Mitsubishi
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2016
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X
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—
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Pool(4)
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—
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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 as of January 27, 2023.
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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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Currently time
chartered-in to our fleet with an expiration during the third
calendar quarter of 2023.
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Market Outlook & Update
The weak petrochemical market continued into the fourth calendar
quarter of 2022 from the previous quarter, with margins for
ethylene production via steam crackers declining further for
naphtha in the Far East and in Northwestern Europe. The global economic
downturn and low Chinese demand due to continued lockdown measures
were key factors for the market in the fourth calendar quarter of
2022.
Despite negative margins for steam cracking seen for propane
throughout the fourth calendar quarter of 2022 in the Far East
region, overall, they were higher than naphtha and hence, where
possible, petrochemical players with flexibility to use propane
switched to the lighter feed. Operating rates, however, declined
throughout the quarter with some ethylene production capacity
off-line. In Northwestern Europe,
margins remained positive for propane throughout the quarter with
imports for petrochemicals rising in the fourth calendar quarter of
2022 compared to the previous quarter. Overall, the propane-naphtha
spread in Northwestern Europe
widened from an average of ($50) per
metric ton in the third calendar quarter of 2022 to an average of
($83) per metric ton in the fourth
calendar quarter of 2022.
In terms of seaborne supply and demand, after a decline in U.S.
exports in the third calendar quarter of 2022, levels increased by
approximately 0.6 million metric tons in the fourth calendar
quarter of 2022 to 13.5 million metric tons from the previous
quarter. Demand for liquified petroleum gas in China remained subdued even as lockdown
restrictions decreased, although additional demand was seen from
propane dehydrogenation plants (PDH) plants as propane demand for
PDH increased from 2.7 million metric tons in the third calendar
quarter of 2022 to 3.2 million metric tons in the fourth calendar
quarter of 2022. Chinese imports overall, however, did not increase
in the fourth calendar quarter of 2022. After a significant
increase in the third calendar quarter of 2022, some of the growth
in demand in the fourth calendar quarter of 2022 was met from
inventory.
Sufficient supply and tepid growth in global demand in the
fourth calendar quarter of 2022, caused prices of propane to remain
at much lower levels compared to crude oil than during the same
period in the previous year. In Northwestern Europe, propane prices averaged
approximately 50% of Brent prices in the fourth calendar quarter of
2022 compared to 76% of Brent prices in the fourth calendar quarter
of 2021. This was particularly seen in the U.S. where propane
prices continued to fall throughout the quarter reaching an average
of 38% of West Texas Intermediate (WTI) prices in December 2022, as production continued to rise
and inventory levels remain sufficient.
Another key influence in the seaborne trade market during the
fourth calendar quarter of 2022 was the increase in delays in the
Panama Canal, particularly in November. Such delays increased the
use of other routes to Asia, such
as via the Cape of Good Hope and the Suez Canal. The influence of
the delays was particularly observed in freight rates throughout
the quarter.
The Baltic VLGC index on average increased in the fourth
calendar quarter of 2022 to approximately $120 per metric ton from approximately
$67 per metric ton in the third
calendar quarter of 2022. Along with the additional inefficiencies
in the market due to the Panama Canal delays, overall healthy VLGC
supply and demand balance, port delays and strong bunker prices
provided support to continuous positive freight rates. Rates
reached the level of approximately $150 per metric ton throughout the quarter and
subsequently reduced as market inefficiencies have eased.
After a further three VLGCs were added during third calendar
quarter of 2022, another seven VLGCs were added to the fleet during
the fourth calendar quarter of 2022 with a substantial number of
additions expected by the early stage of calendar year 2023.
Currently the VLGC orderbook stands at approximately 20% of the
current global fleet. An additional 67 VLGCs equivalent to
approximately 6.0 million cbm of carrying capacity are expected to
be added to the global fleet by calendar year 2025. 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 a chemical and refinery feedstock, as a 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
the quarters ending June 30 and
September 30 and relatively weaker
during the quarters ending December
31 and March 31, although
12-month time charter rates tend to smooth these short-term
fluctuations and recent LPG shipping market activity has not
yielded the expected seasonal results. 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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Nine months
ended
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(in U.S. dollars, except fleet data)
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December 31, 2022
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December 31, 2021
|
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December 31, 2022
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December 31, 2021
|
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Statement of
Operations Data
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Revenues
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$
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103,322,256
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$
|
68,599,782
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|
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$
|
256,114,165
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|
$
|
194,637,378
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|
Expenses
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|
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.
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.
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Voyage
expenses
|
|
|
424,343
|
|
|
779,746
|
|
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2,567,506
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|
|
3,200,751
|
|
Charter hire
expenses
|
|
|
5,215,144
|
|
|
4,917,012
|
|
|
|
15,975,622
|
|
|
10,829,050
|
|
Vessel operating
expenses
|
|
|
17,919,058
|
|
|
18,205,762
|
|
|
|
52,541,678
|
|
|
56,916,054
|
|
Depreciation and
amortization
|
|
|
15,959,727
|
|
|
16,859,224
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|
|
|
47,706,925
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|
|
50,771,237
|
|
General and
administrative expenses
|
|
|
6,947,964
|
|
|
5,867,454
|
|
|
|
24,537,134
|
|
|
23,257,989
|
|
Total
expenses
|
|
|
46,466,236
|
|
|
46,629,198
|
|
|
|
143,328,865
|
|
|
144,975,081
|
|
Gain on disposal of
vessels
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
3,466,210
|
|
Other income—related
parties
|
|
|
638,055
|
|
|
580,388
|
|
|
|
1,793,595
|
|
|
1,793,663
|
|
Operating
income
|
|
|
57,494,075
|
|
|
22,550,972
|
|
|
|
114,578,895
|
|
|
54,922,170
|
|
Other
income/(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and finance
costs
|
|
|
(8,636,387)
|
|
|
(7,412,231)
|
|
|
|
(28,592,104)
|
|
|
(18,619,712)
|
|
Interest
income
|
|
|
1,165,596
|
|
|
53,792
|
|
|
|
2,341,085
|
|
|
279,195
|
|
Unrealized gain/(loss)
on derivatives
|
|
|
(700,015)
|
|
|
3,056,741
|
|
|
|
4,847,064
|
|
|
4,205,465
|
|
Realized gain/(loss) on
derivatives
|
|
|
1,404,004
|
|
|
(895,782)
|
|
|
|
1,997,815
|
|
|
(2,714,337)
|
|
Other gain/(loss),
net
|
|
|
536,437
|
|
|
(772,607)
|
|
|
|
1,250,140
|
|
|
(1,520,993)
|
|
Total other
income/(expenses), net
|
|
|
(6,230,365)
|
|
|
(5,970,087)
|
|
|
|
(18,156,000)
|
|
|
(18,370,382)
|
|
Net income
|
|
$
|
51,263,710
|
|
$
|
16,580,885
|
|
|
$
|
96,422,895
|
|
$
|
36,551,788
|
|
Earnings per common
share—basic
|
|
|
1.28
|
|
|
0.42
|
|
|
|
2.41
|
|
|
0.91
|
|
Earnings per common
share—diluted
|
|
$
|
1.27
|
|
$
|
0.41
|
|
|
$
|
2.40
|
|
|
0.90
|
|
Financial
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
|
76,200,480
|
|
$
|
39,370,204
|
|
|
$
|
169,320,890
|
|
$
|
107,067,810
|
|
Fleet
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calendar
days(2)
|
|
|
1,840
|
|
|
1,932
|
|
|
|
5,500
|
|
|
5,935
|
|
Time chartered-in
days(3)
|
|
|
184
|
|
|
169
|
|
|
|
550
|
|
|
399
|
|
Available
days(4)
|
|
|
1,993
|
|
|
2,054
|
|
|
|
6,019
|
|
|
6,176
|
|
Operating
days(5)(8)
|
|
|
1,950
|
|
|
2,024
|
|
|
|
5,706
|
|
|
5,976
|
|
Fleet
utilization(6)(8)
|
|
|
97.8
|
%
|
|
98.5
|
%
|
|
|
94.8
|
%
|
|
96.8
|
%
|
Average Daily
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time charter equivalent
rate(7)(8)
|
|
$
|
52,768
|
|
$
|
33,508
|
|
|
$
|
44,435
|
|
$
|
32,034
|
|
Daily vessel operating
expenses(9)
|
|
$
|
9,739
|
|
$
|
9,423
|
|
|
$
|
9,553
|
|
$
|
9,590
|
|
______________________
|
(1)
|
Adjusted EBITDA is an
unaudited non-U.S. GAAP measure and represents net income/(loss)
before interest and finance costs, unrealized (gain)/loss on
derivatives, realized (gain)/loss on interest rate swaps,
stock-based compensation expense, impairment, and depreciation and
amortization and is used as a supplemental financial measure by
management to assess our financial and operating performance. We
believe that adjusted EBITDA assists our management and investors
by increasing the comparability of our performance from period to
period and management makes business and resource-allocation
decisions based on such comparisons. This increased comparability
is achieved by excluding the potentially disparate effects between
periods of derivatives, interest and finance costs, stock-based
compensation expense, impairment, and depreciation and amortization
expense, which items are affected by various and possibly changing
financing methods, capital structure and historical cost basis and
which items may significantly affect net income/(loss) between
periods. We believe that including adjusted EBITDA as a financial
and operating measure benefits investors in selecting between
investing in us and other investment alternatives.
|
|
|
|
Adjusted EBITDA has
certain limitations in use and should not be considered an
alternative to net income/(loss), operating income, cash flow from
operating activities or any other measure of financial performance
presented in accordance with U.S. GAAP. Adjusted EBITDA excludes
some, but not all, items that affect net income/(loss). Adjusted
EBITDA as presented below may not be computed consistently with
similarly titled measures of other companies and, therefore, might
not be comparable with other companies.
|
The following table
sets forth a reconciliation of net income to Adjusted EBITDA
(unaudited) for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
(in U.S. dollars)
|
|
December 31, 2022
|
|
December 31, 2021
|
|
December 31, 2022
|
|
December 31, 2021
|
|
Net income
|
|
$
|
51,263,710
|
|
$
|
16,580,885
|
|
$
|
96,422,895
|
|
$
|
36,551,788
|
|
Interest and finance
costs
|
|
|
8,636,387
|
|
|
7,412,231
|
|
|
28,592,104
|
|
|
18,619,712
|
|
Unrealized (gain)/loss
on derivatives
|
|
|
700,015
|
|
|
(3,056,741)
|
|
|
(4,847,064)
|
|
|
(4,205,465)
|
|
Realized (gain)/loss on
interest rate swaps
|
|
|
(1,404,004)
|
|
|
895,782
|
|
|
(1,997,815)
|
|
|
2,714,337
|
|
Stock-based
compensation expense
|
|
|
1,044,645
|
|
|
678,823
|
|
|
3,443,845
|
|
|
2,616,201
|
|
Depreciation and
amortization
|
|
|
15,959,727
|
|
|
16,859,224
|
|
|
47,706,925
|
|
|
50,771,237
|
|
Adjusted
EBITDA
|
|
$
|
76,200,480
|
|
$
|
39,370,204
|
|
$
|
169,320,890
|
|
$
|
107,067,810
|
|
(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., repositioning
following drydocking, commercial waiting, 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. 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
|
|
|
Nine months
ended
|
|
(in U.S. dollars,
except operating days)
|
|
December 31, 2022
|
|
December 31, 2021
|
|
|
December 31, 2022
|
|
December 31, 2021
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
103,322,256
|
|
$
|
68,599,782
|
|
|
$
|
256,114,165
|
|
$
|
194,637,378
|
|
Voyage
expenses
|
|
|
(424,343)
|
|
|
(779,746)
|
|
|
|
(2,567,506)
|
|
|
(3,200,751)
|
|
Time charter
equivalent
|
|
$
|
102,897,913
|
|
$
|
67,820,036
|
|
|
$
|
253,546,659
|
|
$
|
191,436,627
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pool
adjustment*
|
|
|
(99,984)
|
|
|
—
|
|
|
|
(514,015)
|
|
|
(2,978)
|
|
Time charter equivalent
excluding pool adjustment*
|
|
$
|
102,797,929
|
|
$
|
67,820,036
|
|
|
$
|
253,032,644
|
|
$
|
191,433,649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
days
|
|
|
1,950
|
|
|
2,024
|
|
|
|
5,706
|
|
|
5,976
|
|
TCE
rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time charter equivalent
rate
|
|
$
|
52,768
|
|
$
|
33,508
|
|
|
$
|
44,435
|
|
$
|
32,034
|
|
TCE rate excluding pool
adjustment*
|
|
$
|
52,717
|
|
$
|
33,508
|
|
|
$
|
44,345
|
|
$
|
32,034
|
|
*
|
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
|
|
|
Nine months
ended
|
|
|
December 31, 2022
|
|
|
December 31, 2021
|
|
|
December 31, 2022
|
|
|
December 31, 2021
|
|
Company
Methodology:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Days
|
|
1,950
|
|
|
|
2,024
|
|
|
|
5,706
|
|
|
|
5,976
|
|
Fleet
Utilization
|
|
97.8
|
%
|
|
|
98.5
|
%
|
|
|
94.8
|
%
|
|
|
96.8
|
%
|
Time charter equivalent
rate
|
$
|
52,768
|
|
|
$
|
33,508
|
|
|
$
|
44,435
|
|
|
$
|
32,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alternate
Methodology:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Days
|
|
1,993
|
|
|
|
2,054
|
|
|
|
6,002
|
|
|
|
6,173
|
|
Fleet
Utilization
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
99.7
|
%
|
|
|
100.0
|
%
|
Time charter equivalent
rate
|
$
|
51,630
|
|
|
$
|
33,019
|
|
|
$
|
42,244
|
|
|
$
|
31,012
|
|
|
We believe that the
Company Methodology using the underlying vessel employment provides
more meaningful insight into market conditions and the performance
of our vessels.
|
|
|
(9)
|
Daily vessel operating
expenses are calculated by dividing vessel operating expenses by
calendar days for the relevant time period.
|
In addition to the results of operations presented in accordance
with U.S. GAAP, we provide adjusted net income and adjusted EPS. We
believe that adjusted net income and adjusted EPS are useful to
investors in understanding our underlying performance and business
trends. Adjusted net income and adjusted EPS are not a measurement
of financial performance or liquidity under U.S. GAAP; therefore,
these non-U.S. GAAP measures should not be considered as an
alternative or substitute for U.S. GAAP. The following table
reconciles net income and EPS to adjusted net income and adjusted
EPS, respectively, for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Nine months
ended
|
|
(in U.S. dollars,
except share data)
|
|
December 31, 2022
|
|
December 31, 2021
|
|
|
December 31, 2022
|
|
December 31, 2021
|
|
Net income
|
|
$
|
51,263,710
|
|
$
|
16,580,885
|
|
|
$
|
96,422,895
|
|
$
|
36,551,788
|
|
Unrealized (gain)/loss
on derivatives
|
|
|
700,015
|
|
|
(3,056,741)
|
|
|
|
(4,847,064)
|
|
|
(4,205,465)
|
|
Gain on disposal of
vessels
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(3,466,210)
|
|
Adjusted net
income
|
|
$
|
51,963,725
|
|
$
|
13,524,144
|
|
|
$
|
91,575,831
|
|
$
|
28,880,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share—diluted
|
|
$
|
1.27
|
|
$
|
0.41
|
|
|
$
|
2.40
|
|
$
|
0.90
|
|
Unrealized (gain)/loss
on derivatives
|
|
|
0.02
|
|
|
(0.07)
|
|
|
|
(0.12)
|
|
|
(0.10)
|
|
Gain on disposal of
vessels
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(0.09)
|
|
Adjusted earnings per
common share—diluted
|
|
$
|
1.29
|
|
$
|
0.34
|
|
|
$
|
2.28
|
|
$
|
0.71
|
|
The following table
presents our unaudited balance sheets as of the dates
presented:
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
As of
|
|
|
|
December 31, 2022
|
|
March 31, 2022
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
129,816,670
|
|
$
|
236,758,927
|
|
Trade receivables, net
and accrued revenues
|
|
|
8,290,143
|
|
|
853,060
|
|
Due from related
parties
|
|
|
77,922,053
|
|
|
57,782,831
|
|
Inventories
|
|
|
2,612,904
|
|
|
2,266,351
|
|
Prepaid expenses and
other current assets
|
|
|
9,415,894
|
|
|
10,232,083
|
|
Total current
assets
|
|
|
228,057,664
|
|
|
307,893,252
|
|
Fixed
assets
|
|
|
|
|
|
|
|
Vessels, net
|
|
|
1,193,974,225
|
|
|
1,238,061,690
|
|
Vessel under
construction
|
|
|
26,045,036
|
|
|
16,401,532
|
|
Other fixed assets,
net
|
|
|
37,241
|
|
|
54,101
|
|
Total fixed
assets
|
|
|
1,220,056,502
|
|
|
1,254,517,323
|
|
Other non-current
assets
|
|
|
|
|
|
|
|
Deferred charges,
net
|
|
|
8,945,598
|
|
|
9,839,000
|
|
Derivative
instruments
|
|
|
11,359,543
|
|
|
6,512,479
|
|
Due from related
parties—non-current
|
|
|
20,900,000
|
|
|
19,800,000
|
|
Restricted
cash—non-current
|
|
|
75,360
|
|
|
77,987
|
|
Operating lease
right-of-use assets
|
|
|
38,877,468
|
|
|
8,087,014
|
|
Other non-current
assets
|
|
|
2,134,886
|
|
|
635,038
|
|
Total
assets
|
|
$
|
1,530,407,021
|
|
$
|
1,607,362,093
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
|
9,965,969
|
|
$
|
9,541,131
|
|
Accrued
expenses
|
|
|
6,201,359
|
|
|
3,801,448
|
|
Due to related
parties
|
|
|
6,041,597
|
|
|
37,433
|
|
Deferred
income
|
|
|
117,410
|
|
|
813,967
|
|
Current portion of
long-term operating lease liabilities
|
|
|
8,396,020
|
|
|
8,073,364
|
|
Current portion of
long-term debt
|
|
|
52,136,738
|
|
|
72,075,571
|
|
Dividends
payable
|
|
|
1,011,126
|
|
|
494,180
|
|
Total current
liabilities
|
|
|
83,870,219
|
|
|
94,837,094
|
|
Long-term
liabilities
|
|
|
|
|
|
|
|
Long-term debt—net of
current portion and deferred financing fees
|
|
|
577,202,083
|
|
|
590,687,387
|
|
Long-term operating
lease liabilities
|
|
|
30,488,622
|
|
|
—
|
|
Other long-term
liabilities
|
|
|
1,518,817
|
|
|
1,686,197
|
|
Total long-term
liabilities
|
|
|
609,209,522
|
|
|
592,373,584
|
|
Total
liabilities
|
|
|
693,079,741
|
|
|
687,210,678
|
|
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, 51,595,898 and 51,321,695
shares issued, 40,350,535 and 40,185,042 shares outstanding (net of
treasury stock), as of December 31, 2022 and
March 31, 2022, respectively
|
|
|
515,960
|
|
|
513,217
|
|
Additional
paid-in-capital
|
|
|
763,547,096
|
|
|
760,105,994
|
|
Treasury stock, at
cost; 11,245,363 and 11,136,653 shares as of
December 31, 2022 and March 31, 2022,
respectively
|
|
|
(122,896,838)
|
|
|
(121,226,936)
|
|
Retained
earnings
|
|
|
196,161,062
|
|
|
280,759,140
|
|
Total shareholders'
equity
|
|
|
837,327,280
|
|
|
920,151,415
|
|
Total liabilities
and shareholders' equity
|
|
$
|
1,530,407,021
|
|
$
|
1,607,362,093
|
|
Conference Call
A conference call to discuss the results will be held today,
February 1, 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 13736015. The replay
will be available until February 8,
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-two modern VLGCs. 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.
Under the common share repurchase authority referenced in this
release, (the "2022 Common Share Repurchase Authority"), purchases
may be made at the Company's discretion in the form of open market
repurchase programs, privately negotiated transactions, accelerated
share repurchase programs or a combination of these methods. The
actual amount and timing of share repurchases are subject to
capital availability, our determination that share repurchases are
in the best interest of the Company's shareholders, and market
conditions. The Company is not obligated to make any common share
repurchases under the 2022 Common Share Repurchase Authority and
may suspend or discontinue the 2022 Common Share Repurchase
Authority at any time.
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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SOURCE Dorian LPG Ltd.