Dorian ‘open’ to M&A
Dorian LPG chief executive John Hadjipateras appeared to leave the door open for potential merger and acquisition activity as he addressed analysts and investors this week.
John Hadjipateras and Arrow Sale & Purchase director Patrick Morrison
New York-listed Dorian was a target for rival Avance Gas last year after an initial bid was rejected in January.
Avance President Christian Andersen has since cooled his interest after growing frustrated with the lack of progress and has said he is content to enjoy the strong VLGC market with the ships he has.
But, as Dorian reported its results for its fiscal 2015 third quarter, Hadjipateras said consolidation was a possibility.
Pressed on the potential for merger and acquisition activity by Erik Nikolai Stavseth of Arctic Securities, Hadjipateras said: “We haven’t had any discussions lately within.
“We’re open, as we’ve said before, to talk to people and in the meantime we’re just focusing on the build out of our business and delivery of our shares concluding the financing and the chartering.”
Hadjipateras also raised the prospect of a dividend on the horizon, stating the issue would be floated at the next board meeting.
“We have shareholders who I know are interested in us having a dividend policy and starting a dividend,” he said. “And I think that we wouldn’t have to wait until we have delivery of all our ships.”
Dorian yesterday booked a gain of $9.0m in the three months to the end of December, beating the $5.8m seen at the same stage a year ago.
Hadjipateras, according to a transcript of the conference call distributed by Seeking Alpha, says the owner will begin operating its pool planned with Mitsui OSK Lines this month.
Omar Nokta of Clarksons Capital Markets said: “We believe the formation of this pool is key as the changing landscape, in which the Atlantic Basin is becoming a major point of origin for VLGC cargoes, requires more sophisticated trading from shipowners.”
Eco newbuilds shine
The delivery of newbuildings helped Dorian more than double its quarterly revenue.
John Lycouris, chief executive of division Dorian LPG USA, said its third eco VLCG, the 84,000-cmb Corvette, arrived at the start of this year.
The first two ships in the series, the Comet and Corsair (both built 2014) burn around eight tonnes tell fuel per day than its earlier vessels, Lycouris said. This amounts to a saving of around $2,400 per day, the executive said.
source:www.tradewindsnews.com
