Dorian LPG Ltd. Declares Irregular Cash Dividend of $1.00 Per Share and Announces Third Quarter Fiscal Year 2023 Financial Results
Dorian LPG Ltd. (NYSE: LPG) reported strong financial results for Q3 FY2023, with revenues of $103.3 million, a 50.6% increase from the previous year. The company declared an irregular cash dividend of $1.00 per share, totaling over $40.3 million returned to shareholders. Net income reached $51.3 million ($1.27 EPS), up from $16.6 million ($0.41 EPS) a year earlier. Adjusted EBITDA was $76.2 million, driven by a 57.5% increase in Time Charter Equivalent (TCE) rates to $52,768 per day despite slight declines in fleet utilization and increased operating expenses. The company maintains a positive outlook with plans to add four VLGCs to its fleet in 2023.
- Declared an irregular cash dividend of $1.00 per share, totaling over $40.3 million.
- Revenues increased by 50.6% to $103.3 million compared to the previous year.
- Net income rose to $51.3 million or $1.27 EPS, significantly up from $16.6 million or $0.41 EPS in the previous year.
- Adjusted EBITDA reached $76.2 million, reflecting strong cash generation.
- TCE rates improved by 57.5% to $52,768 per day.
- Fleet utilization decreased from 98.5% to 97.8% year-over-year.
- Operating expenses slightly increased, with vessel operating expenses per day rising to $9,739.
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 $1.27 $52.0 million $1.29 - Adjusted EBITDA(1) of
$76.2 million - Paid an irregular cash dividend of
$1.00 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- |
Third Quarter Fiscal Year 2023 Results Summary
Net income amounted to
Adjusted net income amounted to
The
The TCE rate per operating day for our fleet was
Vessel operating expenses per day increased to
Revenues
Revenues, which represent net pool revenues—related party, time charters and other revenues, net, were
Charter Hire Expenses
Charter hire expenses for the vessels chartered in from third parties were
Vessel Operating Expenses
Vessel operating expenses were
General and Administrative Expenses
General and administrative expenses were
Interest and Finance Costs
Interest and finance costs amounted to
Unrealized Gain/(Loss) on Derivatives
Unrealized loss on derivatives amounted to
Realized Gain/(Loss) on Derivatives
Realized gain on derivatives amounted to
Fleet
The following table sets forth certain information regarding our fleet as of | |||||||||||||||||
Capacity | Sister | ECO | Scrubber | Charter | |||||||||||||
(Cbm) | Shipyard | Ships | Year Built | Vessel(1) | Equipped | Employment | Expiration(2) | ||||||||||
Dorian VLGCs | |||||||||||||||||
Captain John NP | 82,000 | Hyundai | A | 2007 | — | — | Pool(4) | — | |||||||||
Comet | 84,000 | Hyundai | B | 2014 | X | X | Pool(4) | — | |||||||||
Corsair(3) | 84,000 | Hyundai | B | 2014 | X | X | Time Charter(6) | Q4 2024 | |||||||||
Corvette | 84,000 | Hyundai | B | 2015 | X | X | Pool(4) | — | |||||||||
Cougar(3) | 84,000 | Hyundai | B | 2015 | X | — | Pool(4) | — | |||||||||
Concorde | 84,000 | Hyundai | B | 2015 | X | X | Time Charter(7) | Q1 2024 | |||||||||
Cobra | 84,000 | Hyundai | B | 2015 | X | — | Pool(4) | — | |||||||||
Continental | 84,000 | Hyundai | B | 2015 | X | — | Pool(4) | Q4 2023 | |||||||||
84,000 | Hyundai | B | 2015 | X | X | Pool(4) | — | ||||||||||
Commodore | 84,000 | Hyundai | B | 2015 | X | — | Pool-TCO(5) | Q1 2023 | |||||||||
Cresques(3) | 84,000 | Daewoo | C | 2015 | X | X | Pool(4) | — | |||||||||
Constellation | 84,000 | Hyundai | B | 2015 | X | X | Pool(4) | — | |||||||||
Cheyenne | 84,000 | Hyundai | B | 2015 | X | X | Pool-TCO(5) | Q2 2023 | |||||||||
Clermont | 84,000 | Hyundai | B | 2015 | X | X | Pool-TCO(5) | Q1 2023 | |||||||||
Cratis(3) | 84,000 | Daewoo | C | 2015 | X | X | Pool(4) | — | |||||||||
Chaparral(3) | 84,000 | Hyundai | B | 2015 | X | — | Pool(4) | — | |||||||||
Copernicus(3) | 84,000 | Daewoo | C | 2015 | X | X | Pool(4) | — | |||||||||
Commander | 84,000 | Hyundai | B | 2015 | X | X | Pool(4) | — | |||||||||
Challenger | 84,000 | Hyundai | B | 2015 | X | — | Pool-TCO(5) | Q2 2023 | |||||||||
84,000 | Hyundai | B | 2016 | X | — | Pool(4) | — | ||||||||||
Total | 1,678,000 | ||||||||||||||||
Time chartered-in VLGCs | |||||||||||||||||
Future Diamond(8) | 80,876 | Hyundai | 2020 | X | X | Pool(4) | — | ||||||||||
Astomos Venus(9) | 77,367 | Mitsubishi | 2016 | X | — | Pool(4) | — | ||||||||||
_________________________ | |
(1) | Represents vessels with very low revolutions per minute, long-stroke, electronically controlled engines, larger propellers, advanced hull design, and low friction paint. |
(2) | Represents calendar year quarters. |
(3) | Operated pursuant to a bareboat chartering agreement as of |
(4) | "Pool" indicates that the vessel operates in the |
(5) | "Pool-TCO" indicates that the vessel is operated in the |
(6) | Currently on a time charter with an oil major that began in |
(7) | Currently on time charter with a major oil company that began in |
(8) | Currently time chartered-in to our fleet with an expiration during the first calendar quarter of 2025. |
(9) | Currently time chartered-in to our fleet with an expiration during the third calendar quarter of 2023. |
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
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
In terms of seaborne supply and demand, after a decline in
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
Another key influence in the seaborne trade market during the fourth calendar quarter of 2022 was the increase in delays in the
The Baltic VLGC index on average increased in the fourth calendar quarter of 2022 to approximately
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
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
Financial Information
The following table presents our selected financial data and other information for the periods presented: | ||||||||||||||
Three months ended | Nine months ended | |||||||||||||
(in U.S. dollars, except fleet data) | ||||||||||||||
Statement of Operations Data | ||||||||||||||
Revenues | $ | 103,322,256 | $ | 68,599,782 | $ | 256,114,165 | $ | 194,637,378 | ||||||
Expenses | . | . | ||||||||||||
Voyage expenses | 424,343 | 779,746 | 2,567,506 | 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 | 47,706,925 | 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- |
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 | |
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) | |||||||||||||
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- |
The following table sets forth a reconciliation of revenues to TCE rate (unaudited) for the periods presented: | ||||||||||||||
Three months ended | Nine months ended | |||||||||||||
(in | ||||||||||||||
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 |
(8) | We determine operating days for each vessel based on the underlying vessel employment, including our vessels in the |
Three months ended | Nine months ended | ||||||||||||||
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
Three months ended | Nine months ended | |||||||||||||
(in | ||||||||||||||
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 | ||||||
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, | — | — | |||||
Common stock, | 515,960 | 513,217 | |||||
Additional paid-in-capital | 763,547,096 | 760,105,994 | |||||
(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,
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
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
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
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FAQ
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