Dorian LPG Ltd. Announces First Quarter Fiscal Year 2025 Financial Results

STAMFORD, Conn.–(BUSINESS WIRE)– Dorian LPG Ltd. (NYSE: LPG) (the “Company,” “Dorian LPG,” “we,” “us,” and “our”), a leading owner and operator of modern very large gas carriers (“VLGCs”), today reported its financial results for the three months ended June 30, 2024.

Key Recent Development

Declared an irregular dividend totaling $42.6 million to be paid on or about August 21, 2024 to shareholders of record as of August 8, 2024.
Highlights for the First Quarter Fiscal Year 2025

Revenues of $114.4 million.
Time Charter Equivalent (“TCE”) (1) rate per operating day for our fleet of $55,228.
Net income of $51.3 million, or $1.25 earnings per diluted share (“EPS”), and adjusted net income (1) of $51.7 million, or $1.26 adjusted earnings per diluted share (“adjusted EPS”). (1)
Adjusted EBITDA (1) of $78.0 million.
Declared and paid an irregular cash dividend totaling $40.6 million in May 2024.
Issued 2,000,000 common shares at a price of $44.50 per share less underwriting discounts and commissions of $2.225 per share.
(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, “During the quarter, we paid a dividend to our shareholders based on strong earnings and cash flow generation, and completed a significant strategic objective with a successful equity offering that positions us well for future fleet growth and renewal. Demand for LPG remains strong, as its availability, cost effectiveness, and environmental footprint make it a fuel of choice for many applications. As always, I acknowledge our dedicated seafarers and shoreside staff, whose hard work and dedication make our results possible.”

First Quarter Fiscal Year 2025 Results Summary

Net income amounted to $51.3 million, or $1.25 per diluted share, for the three months ended June 30, 2024, compared to $51.7 million, or $1.28 per diluted share, for the three months ended June 30, 2023.

Adjusted net income amounted to $51.7 million, or $1.26 per diluted share, for the three months ended June 30, 2024, compared to adjusted net income of $48.9 million, or $1.21 per diluted share, for the three months ended June 30, 2023. Adjusted net income for the three months ended June 30, 2024 is calculated by adjusting net income for the same period to exclude an unrealized loss on derivative instruments of $0.4 million. Please refer to the reconciliation of net income to adjusted net income, which appears later in this press release.

The $2.8 million increase in adjusted net income for the three months ended June 30, 2024, compared to the three months ended June 30, 2023, is primarily attributable to (i) increases of $2.8 million in revenues and $2.0 million in interest income and (ii) a reduction of $0.9 million in interest and finance costs; partially offset by increases of $1.2 million in general and administrative expenses, $0.7 million in vessel operating expenses, $0.5 million in depreciation and amortization, and $0.5 million in voyage expenses.

The TCE rate per operating day for our fleet was $55,228 for the three months ended June 30, 2024, an 8.0% increase from $51,156 for the same period in the prior year. 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 98.0% during the three months ended June 30, 2023 to 90.4% during the three months ended June 30, 2024.

Vessel operating expenses per vessel per calendar day increased to $10,717 for the three months ended June 30, 2024 compared to $10,383 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 $114.4 million for the three months ended June 30, 2024, an increase of $2.8 million, or 2.5%, from $111.6 million for the three months ended June 30, 2023 primarily due to an increase in fleet size, partially offset by a reduction of fleet utilization. Our available days increased from 2,219 for the three months ended June 30, 2023 to 2,275 for the three months ended June 30, 2024. Our fleet utilization decreased from 98.0% during the three months ended June 30, 2023 to 90.4% during the three months ended June 30, 2024. Average TCE rates increased by $4,072 per operating day from $51,156 for the three months ended June 30, 2023 to $55,228 for the three months ended June 30, 2024, but was relatively flat when comparing TCE rates per available day with a slight decrease from $50,164 for the three months ended June 30, 2023 to $49,911 for the three months ended June 30, 2024.

Vessel Operating Expenses

Vessel operating expenses were $20.5 million during the three months ended June 30, 2024, or $10,717 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 and increased by $0.7 million, or 3.2% from $19.8 million for the three months ended June 30, 2023. The increase of $334 per vessel per calendar day, from $10,383 for the three months ended June 30, 2023 to $10,717 per vessel per calendar day for the three months ended June 30, 2024 was primarily the result of increases of $159 per vessel per calendar day for spares and stores and $102 per vessel per calendar day for crew wages and related costs. Excluding non-capitalizable drydock-related operating expenses, daily operating expenses increased by $523 from $10.094 for the three months ended June 30, 2023 to $10.617 for the three months ended June 30, 2024.

General and Administrative Expenses

General and administrative expenses were $10.4 million for the three months ended June 30, 2024, an increase of $1.2 million, or 13.1%, from $9.2 million for the three months ended June 30, 2023 and was driven by increases of $0.5 million in stock-based compensation, $0.5 million in cash bonuses, and $0.2 million in other general and administrative expenses.

Interest and Finance Costs

Interest and finance costs amounted to $9.5 million for the three months ended June 30, 2024, a decrease of $0.9 million, or 8.5%, from $10.4 million for the three months ended June 30, 2023. The decrease of $0.9 million during this period was mainly due to a decrease of $0.9 million in loan interest on our long-term debt, which was driven by a decrease in average indebtedness, excluding deferred financing fees, from $658.2 million for the three months ended June 30, 2023 to $606.6 million for the three months ended June 30, 2024.

Interest Income

Interest income amounted to $3.7 million for the three months ended June 30, 2024, compared to $1.7 million for the three months ended June 30, 2023. The increase of $2.0 million is mainly attributable to (i) higher average cash balances for the three months ended June 30, 2024 when compared to the three months ended June 30, 2023, and (ii) an increase in interest rates over the periods presented.

Unrealized Gain/(Loss) on Derivatives

Unrealized loss on derivatives amounted to $0.4 million for the three months ended June 30, 2024, compared to a gain of $2.9 million for the three months ended June 30, 2023. The $3.3 million unfavorable change is primarily attributable to changes in forward SOFR yield curves and reduced notional amounts.

Fleet

The following table sets forth certain information regarding our fleet as of July 25, 2024.

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