LPG - Earnings call transcript Q4 2024

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Operator

Good morning, and welcome to the Dorian LPG Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions]As a reminder, this conference is being recorded.

Additionally, a live audio webcast of today's conference call is available on Dorian LPG's website, which is www.dorianlpg.com.I'd now like to turn the conference over to Ted Young, Chief Financial Officer. Thank you, Mr.

Young. ahead. go Please

Theodore Young

and Good Executive joining Kevin. Chief conference and you as Energy Tim Chairman, thank With John as LPG Thank Head well of Lycouris, for morning, Officer. Dorian our Commercial for of President Hadjipateras, John us today and results our of fourth all Dorian me Ltd.; Chief you, Transition are everyone, CEO Officer quarter Hansen, call. USA; XXXX LPG

of conference remarks identified As These will webcast expectations. statements call this a anticipate, replay XX, our call often with available a of based this expect, future as today believe May through be reminder, such statements may expectations. be similar and or of forward-looking words on XXXX.Many current contain indications

forward-looking unknown reasonable, you are and believe and Although more These we will to of such and we any other that as conditions. statements as be that known risks or assure forward-looking to prove general one correct. statements economic forward-looking well Should uncertainties factors, subject cannot risks to are the XX, should that today.Additionally, or me be were you this prove to Form we results unaudited may underlying actual March from let or or results uncertainties estimates incorrect, express vary on morning X-K. refer assumptions period materially these ended for our materialize those filed XXXX statements

this this results we cause Also, useful actual slides Forms our XX-Q, statements. posted morning where and find our it filings differ you'll those XX-K during please factors make to addition, to on our risk that to as the may remarks In could previous refer materially we call. you find refer forward-looking to from

XXXX.With call file we expect our May later XX-K Hadjipateras. over to the please turn than I'll full Finally, that that, no John to note XX,

John Hadjipateras

today. you for Tim John, and me joining Ted, Thank

trading end as IPO since past to payment market, they capital will equity. ever continue product of to a we LPG month. benefiting the done keep of renewing sensibly we and per allocation return $XXX helping the maintaining though and chain operations, our to that in commercial by liquidity of market increasing to by Board, calls, issues the shareholders success remained quarterly contingent by more as wars now and diligent months, a out condition, are a want in It's XX payments year last consecutive newbuilding income XXXX needs.Post time and changed is eye earnings We with market deficit opportunities. company's also a our fleet total chartered-in geopolitical by consistently of was debt of climate net Returns these patterns, management, XX% and after on XXXX.Our and the of sector with good from on emphasize, the management in will the while a task last and the our spot earnings. build ton and VLGCs. critical wars, shipowner. technical a year as extraordinary expanded the dual-fuel COVID, our our our part, of our highest significantly Dorian's levels our eighth extreme the book has and well I adding right careful irregular be dividend The order resilient that as absorb the in our financial market, LPG well caused the generated Even supply of Panama needs rain often has, miles, in for navigating events for role to record financial our regular, report change, on fleet strong X and has by our to while happy be capital disruptions owned with played Ted success with demand, book very $X prospects the funding our an of as most expanding X than to dealing support million volatility the of Ukraine large and results at ships.In pandemic, declared and continuing Gaza, share meet and appear

ammonia optimistic for are and for the VLGCs, LPG transportation We for emerging trade.

We to buybacks of in investors are sheet appropriate.Back balance we continue manage to resolute as returns our value, Ted. confident our create to in our our of to strong maintain and by dividends way are skills and/or team's through cycles, and pursuit duty

Theodore Young

Thanks. not of we fourth a of liquidity. XXXX, available liquidity, At focus My $XXX cash of is results GAAP giving $XX.X and $XXX.X position, which comments available-for-sale allocation our securities on unaudited will and million, term, us capital million free million. reported today XX, March quarter and debt financial total

May of $XXX ratios XXXX, paid cash balance million out cash As Tuesday, to an significant the to which free Again, dividends not XX, shareholders while and X stood financial we over our May does at dividend Thus, million, $XX.X measure ago. we vessel. that and shareholders a with the refinancings year XX.With book rewarding reflect a a debt XX.X% and debt still pleased until capitalization versus those stood of at net daily the day.For undrawn may calendar down in have to balance will at useful our Highlights from have that total quarter-end at the XX.X%, per for quarter to day, we total morning a our XXXX, XX.X% to day capitalization Investor definitions website. or $XX $XXX our same expect a million, million period. ample $XXX.X terms $XX,XXX that operating no net over find $XX,XXX achieve per debt-free posted of ago, cash, $XX,XXX. these of of of charter-in you XX.X% also reported approximately to OpEx, on are debt we day, is flexibility.We XX.X% the it in about TCE my free we $XX,XXX to available of fourth TCE levels slides revolver, these the year days improvement a adjusted to terms.Turning million and for The important, were operating able discussion per our refer utilization achieved to adjusted principal and this for Please filings on as year you utilization revenue also the of G&A, include fourth quarter yielding refer results, time of such in be TCE number to quarter per TCE, available we remind a total cost results, a I'd our days, remarks expense, coming interest EBITDA. our chartering

conducted its spot spot spot Pool, entire our trading best chartering for program measure performance. the As our through is the reported are Helios results

we to $XX,XXX the XX in voyages all within plus Highlights the Pool.Turning COA pool.On Helios including the Pool March the of X vessels for TCE can X in and Helios of about see Investor time June our roughly time for for spot $XX,XXX we available charter quarter quarter, booked. For earned ] you its XX% on in XX% Dorian voyages, the XX, exposure of XX charters the of [ MOL over X Helios have XXXX, currently vessels the pool, that material, a ending vessel, Energia indicating the days spot have Page

day revenue Helios a million. we This those the virtually in TCE load all day predicting have was or drydocking-related the excluding $XX,XXX remainder feel drydocking GAAP. which only a amounts. $XX.X difficulty loading obviously TCE It both for U.S. fixtures over for the in OpEx. the of a excess and for charter-in the basis, recognition, up includes X.X% including per vessels charters to effect which available time rate quarter of per TC-in to $XX,XXX which quarter, OpEx performance.Our spot in share the in is revenue in on on our only.Daily Pool excluding Sequentially, with was it's good huge discharge OpEx the time flat, days which was the more suggests X a accordance expense pool appropriate for dates was Given $XX,XXX, quarter, as

This for up fiscal to the million, going year.Our is calendar G&A quarter, We the expect history. amount which the cash quarter the million. $X.X but in has amount and from that outlay.Total and expense, due G&A, forward, was increase compensation million, cash million is our of we was is non-cash every to G&A adjusted actual quarter the $XXX to that about $X.X sequentially excluding during been range the the for reported leave quarterly EBITDA is $XX.X prior non-cash corporate for -- fourth retirement first was accruals the second quarterly make employee that which EBITDA most EBITDA quarter, quarter is statutory and highest return

$X.X nearly of $XXX of interest pricing up interest policy floating EBITDA of $XXX cost record, is our EBITDA.We year's million us benefit favorable yielded [ a cash expense continue last also our hedging quarterly Japanese hedged year, to the XX% with which financings, the For and fixed, from small a and ] a million, current the our which from X.X%, corporate piece leaving million. was of

believe, sum as Helios, statement.Although excluding cash reported swap reminder, we we we capital on a As the and our rate and derivatives, economic complete insight Thus, consolidate not order and give of it's its XX% more which or picture. some sheet, balance working do cash fees of debt hold interest interest income we currently has on additional calculate in numbers to in effect roughly interest in a expense gain/loss somewhat. as to our deferred are understating loan expense P&L useful realized expenses provide other a interest financing those our the

capital irregular balances XX.X%, and sheet market which had subject XX, roughly of capital remind which items evaluation Tuesday, few paid shareholders' $X a million needs the of in other an XXXX year million As changes prospective payment as outlook.With and irregular shipping. global equity that, tolerance, and 'XX, be next level $XX but on prudent which the macroeconomic our I'll for business, of appropriate the and we shareholders when vigilant payments risk of IPO.The cash of the generation last the cautiously of and we've again, will needs outlined, we capital dividends $XXX dividends have the both in $XXX to corporate flow income about market Hansen. capital a over of totaling to the million will of to now underscore now Coupled return XX again with $XXX.X returned allocation, Pool our John out we our in cash aggregate. a balance quarters, monthly repurchases, $XXX.X also nearly $XXX.X for million dividend earnings sorry, per over the generated decrease conditions, XX mentioned, quarter paid share, last offer significant was of is average of hand, commitment dividend, market open our Board's the sensible with allocation to Board's with self-tender testament million over our $XX.XX management.Turning $XXX.X since the million, year, the pass in And million a policy are business, market record. operating to the and Tim in it you, another great or we our energy May distribution optimistic given is volatility remain the on that -- outlook, John and of days.Net to coming equity months, We over

Tim Hansen

and Thank good Yes. you, Ted, day, everyone.

arbitrage saw of that the a in were recovery, narrowing freight rates for the and market quarter ending reduction market short declining importing the a the newbuildings -- the most congestion the market.The and warms and cold narrowing of as gradual, of weather countries. freight during in significant January North in is seasonal as domestic the force. occurrence, astonishing container created expected, rose.The U.S. amidst Canal Canal. Panama The a year container the reduced the impacted February season XXXX drastic arbitrage reaffirmed So coming X/X how in oversupply American of -- heights reduction The uncongested exacerbated market upwards gradual January reflecting window traffic and which March. after the highlighted the snap expected degree traffic there newbuilding demand a rates in almost reflective But factors increased fundamentals the deliveries correction an during the of LPG prices situation, imbalances VLGC even the XX January in steep a this are in was West-East of in in in were Panama reduced rush and the delivering in the A XXXX the January firm in temporary January holiday Gulf, after in the freight steep declines fall of was almost unexpected. occur. February and particularly the and the but in off in can the with December U.S. March consumption The

Asia, X imbalance And of the vessels shock and sail inactive North reduce route ] or exports Lastly, -- were we are American Good of the to the for China and scheduled the forced sailing were Suez demand scheduled characterized better is will those But from the sizable of term, will an sorry.After VLGC vessels was was market, of waiting North year by reflect capacity that PDH Only plants summer. when at prospects XXXX transits to to that remain in on to congestion. for time America, with upwards preferred back positive we Far of schedule by what market was fact dry the the before pass the the Hope routes to and about markets. inaccessible, to intervals. deliver over transits seen Panama before production exports to by in In the at see we longer production.The XX advantage consider cargo that Canal vessels medium-to-long this feedstock trying to the January March Panama reverse open there Lycouris. X -- remains via unprecedented.Ultimately, LNG before I'll increase Canal. you to in [ is business.With suggested do the potential LPG East robust. scheduled upside. being fundamentals the February increased regular the the and cracking, initial Panama over that, more of to per in new Propane about the the the John the October grow increasing of Eastern more Furthermore, short-to-medium congestion to the in Panamax are Canal Cape particular, risk near firm increasing in our market steam are and vessels corrected number take container VLGCs for was the kept transits maximum Canal the term day Thus, transit Furthermore, Panama this are delivery forecast Canal it the X capacity levels start to summer. reduced. the transits was likely

John Lycouris

a Last Tim. standard to XX you, emission MEPC zero July, target instead agreed date XXXX the to the shipping IMO's Thank net XXXX. change of for

achieve What achieving decarbonization believe provide Dorian the of world. has be economies result, deliver around offer energy firmly proven the reduction, fuels, world's to and the Shipping's purpose resources clean At should has market transition commenced. building efficiency, has efficiently pathway world. purpose, are right decarbonization transformation the to significant aiming throughout adapt green vessels right in require the and in a to As energy ability the move task today designed and future and of with at challenges. efficiently changes, to Ships the optimize to Shipping's its current resources are LPG, cope we world is hand. ability of and emissions its solutions new to the to challenged viable world's in we industry's market around operations ships environmental been to challenges logistics.The part while and built value goals. that improvements have for objectives to dynamics.Shipping, now based the built moving circumstances newly been on main the to we and achieve shipbuilding scale long-term history, and

to $X,XXX We all very as stood averaged $XXX versus differential and for sulfur have found about million, metric pricing about low per low sulfur savings expenses, these ton, $XXX first each of while very both oil metric the oil XXXX differentials scrubber Fuel scrubber per be ton. between as amounted the economical.Our ecological, fuel LPG initiatives high at ship. fuel fuel per of sulfur or oil vessel to quarter for net $X.X day operating well for

newbuilding with depend reduction in The engine scrubber of Dorian's Ocean, built in can handle to for commitment units some be transportation emissions John of our performance VLGC plan are on energy-saving vessel, we earliest originally to and Hanwha future you. number quarter at fleet provide coatings energy of continuation ratings. newbuilding for which will the and follow the operating Hadjipateras In fuel vessels a the tonnage.In large Thank vessels for vessels like of we VLGC/VLAC our ammonia, to LPG.The innovations to another outfit vessels upgrade VLGC/VLAC improvements the future strive of Captain as able XX, of his next COX vessel vessel was fleet with when focus hydrogen's and -- with that adding drydocking efficiency that our our continuing cargo economy a to as to this vessel. savings, Besides to now of our more while vessels silicone hull improved the quantities and the operational regular in sustainability, technological LPG helpful NP, and to devices over we ensuring are will continue in we likely the become improve as we on ammonia's fitted at mature in board total fact, significant John vessel Dorian I retrofit they viable XX,XXX cargo.Green provide dual-fuel of our was during and closing vessels. time without CII And it calendar our installation the to pass possible fleet's ready they most that would the are sector.And on performance, marine commercially for as remarks.

John Hadjipateras

take John. you, to ready Kevin, Thank questions. we're

Operator

from question Instructions] [Operator Our today is Nokta from Jefferies. first coming Omar

Omar Nokta

several months, climbing, lifted Canal at couple January, the coming A this seen were high. the X-month going than you yet that being market. a Panama on through are are bottom ships quite The spot More in rates -- past bit since fact for a early questions the been have despite comments. touching that's restrictions lifted. are Rates we've the of opening the and clearly for late in regarding just me in here obviously, the February. And markets

strength driving from in the the spot seeing of perspective, the we're fact what's got kind your loosening in that you've rates despite Canal? Just

John Hadjipateras

in bounce give -- you Tim, can who made maybe. more on expand color Tim? in color, answer is a give short back a short you lot is a the Tim, give a it bit. But markets I'll equilibrium can the Well, that I'll what and positive little in you, fundamentals my has short way. the then healthy supply-demand more answer, But a or

Tim Hansen

Yes.

the see partly, call, lot balancing Panama market in was the right extent, that And also especially owners projected. come a was around, higher has the we point drop It of delays, do bit lowest in long go still the the to in the [ we last mentioned The and the when the still is. Canal. also we congestion as You're of there to was back Canal due to auction some the as risk ] lower. way facing a still fees through huge

auction again. to gone the $X fees around So million have up

congestion come the Canal. So back in has Panama the

would fundamentals So I still Cape that also course, is, as coming into expected ships of think, Part as says, the strong really lot going still. year, this be is what see via we a of John and we that's that now. the it's that of

Omar Nokta

you how missed quarter any comments. far, up -- your can't remember the Is in And market of kind given on averages if been an you've thus able maybe I thus in color you I the you opening have the of shaping and sometimes what far, Okay. know, it terms past, I is just indication, then, can quarter? in current Ted, achieve, give to there

Theodore Young

Yes, [indiscernible]. Omar

give [indiscernible]. Okay, yes. you Yes. just I'll

rate days So, it for the those days. the and historically of we fixed Omar, percentage have given

we're to little a -- bit. going we're modifying So that

voyages ending team XX. the on of a for day the or TCE those statistics June as the So load-to-discharge has basis, days basis. that $XX,XXX available the those the are, XX% a vessels on booked of is in And quarter pool in the excess for days the those denominator, relevant

Omar Nokta

Okay.

of pool is including that... XX% the the So pool TCOs, days,

Theodore Young

Correct.

Omar Nokta

Just over $XX,XXX.

Okay.

Theodore Young

tricky somewhat Yes, $XX,XXX. the reason awfully is to -- the revenue with is that Anyway, doing things. -- It over reason thank the just recognition these you. we're gets

Omar Nokta

ammonia VLAC the broader the the future But order -- one. we from year. developing, to It VLECs. this big about and and in VLECs, noticed, I this for do VLGCs similar and a order delivery future? this Maybe do -- next. a that you it's just of like you separated and how way the think Do book is becomes think that mentioned more the -- not the And think you trade? year you see. you impactful book do -- the kind you've for been VLGC opportunity was VLGCs the of necessarily project-based think starts last to I maybe that? year What and think final that market of asset, a of to VLACs Is a abating should

John Hadjipateras

-- the ammonia at them Omar, great in VLGC. order, is a are ammonia And And answer I absorb it that's of then, trade, of hopeful quite trade, and we're be when of true as And XX and I on 'XX, nearly up it the is you as it, ships with much And beyond at which of timing fact look we order a pretty I that like restricted large kind I going this optimistic think, that. ammonia the looked it's are right? to deliveries. that the ramping should is expansion VLGC the the VLACs, look question. play, that's that be -- I the we the optimistic the VLAC still hopefully, in look now, the the But the are on hopefully, the at 'XX is we'll fleet spite know, and extent order. order, ships on as VLACs. of the said, book, And still trade, on at and

Operator

next The Edge. Value from is Molins Investor's coming from question Climent

Climent Molins

newbuild to recent forward? about you do see wanted you some by Could continue start even And delever where is asking to color to plan forma levels, manageable financial very on organically going for sweet the your pro provide profile. order. spot? you sitting I Leverage the at secondly,

John Hadjipateras

I spot, a our I the sweet that ratio. And would moving I business. say talking in leverage asking you're think about imagine if you're target it's the about

on have or you to XX% it that where or at spot the the depends XX% point want less. market you at -- are But the more that. You -- for in because cannot than say

you So a with targeting. have We're I now. can't that right happy that we really we we're where are tell sweet spot

Climent Molins

That's helpful.

You out asset a any overall some additionally, but is and additional be also medium-term underlying there conjunction maybe equal finally, to almost of whole pursue [ considered? would something in and would could color is fleet, the appetite fleet own And your modern is ]. fleet But go renewal? a or transport view this, helpful. And values on this in is COX question, with that more be

John Hadjipateras

I'll let about transport. John Lycouris you talk to COX

Regarding add don't to additional ships, we book. think need order newbuildings the we to

we said, of as have to consider in we So -- -- modern do fleet a are have we the renewal. process you And we but have fleet.

opportunities but may of on be depending So is purchases the secondhand which remarks market.But be have a few to that. on COX may question it interesting great a transport, forward, on in also the John going question, could newbuildings make

John Lycouris

COX COX location be something it Yes. future to have do carbon like and with you purpose-built vessels, carbon COX because need John. would meaning another shipping, because capture a Thank capture transport -- the vessel. to What de-bunkering of part to and transport you, of may to we or may on parcel

the to would that on either existing end. next going be it's the to items adding stored. So special looked That's carry COX location that tanks vessels can will the be with that or to be to able where be sequestered COX, we with at think transport or ships COX

Climent Molins

And quarter. the for all me. from That's congratulations

Operator

like for floor have session. comments. any We over turn of our back question-and-answer further I'd the the to end reached closing

John Hadjipateras

summer, you joining of our I And Well, your and at Bye-bye. us, very forward we quarter. thank happy the for next you all for you. again end interesting much and Thank to a wish you everybody, questions. talking with look

Operator

That teleconference. you. Thank conclude does today's

at your you time, and your disconnect thank for participation wonderful may this line a We have day. You today.

Dorian LPG (LPG) 22 May 242024 Q4 Earnings call transcript