LPG - Earnings call transcript Q3 2025

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Operator

Good day, and welcome to the Dorian LPG Third Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference call 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 would 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 Nikki. Chartering. conference and you and Energy Vice Chairman, thank With John Rasmussen, LPG Thank Head Taro of Lycouris, for morning, Dorian our for of President Hadjipateras, John us today and results of of third all Dorian me Limited; Chief you, Transition are everyone, CEO Officer quarter President call. USA; XXXX LPG

will be a replay call As this of XXXX. webcast conference through a and available reminder, call XX, February this

of current our as indications often with remarks based Many similar today contain expectations. such expectations. be statements forward-looking words expect, on or future may anticipate, believe These statements of identified

will that assumptions are risks be of and materialize from well or These forward-looking statements one correct. believe or to assure forward-looking reasonable, vary may statements express we as are you and more those factors such underlying uncertainties estimates to forward-looking conditions. and prove unknown risks Should subject materially we general be today. cannot Although or uncertainties as statements actual results known other we or these that prove economic should incorrect, any to

XX, unaudited this me to let you ended were for morning that our refer period the December on Additionally, Form XXXX, filed results XX-Q.

to to materially differ from In Form XX-K, statements. filings actual results that refer previous addition, where please factors on those our cause you'll find could risk forward-looking

posted investor slides the Finally, review this on I our would you encourage highlight morning website. to

the With call John that, to I'll turn Hadjipateras. over

John Hadjipateras

thank joining you us for today. Thank you, Ted. morning, and Good

of will $X.XX is detailed following: shareholder to on returns market outlook, provide Ted Our market I'd the policy and my like aligning with with irregular consistent financial Before dividend and John comments the colleagues, Taro, to of dividend our share passing who our and realities. with per back results highlight on you

positive saving devices our savings exceeding resulting achieving fuel than a higher outlook. our installing we're drydocking paints schedule emission in than these market paying and current reflect a dockings, our voyage of year confidence fuel silicon during improved and are underscores heavy periods saving. to less payback that the like energy and current note Our despite from and continuous EPS bookings we cost in XX% I the would a dividend dry

expect year and at and will and market growth We production ships Targa XX by future. foreseeable terminal this in healthy Nederland a half of expansions support second only deliveries XXXX the freight

environment of that We XX% XX% a to be are will but share exports in LPG political and share XX% not China's compared mindful XXXX in by of our to of to U.S. the a disrupted U.S. China imports considering XXXX in XXXX. was XX% that tit-for-tat tariffs volatile trade XXXX was hopeful we're compared possible in

as petchem well domestic pause confident of prospects its trade the existing Expected in of latter potential delivery gas with more cascades. oil production, modest percentage the evolving and industry. than a some of in to in have are growth LPG are in policies On as the U.S. the We consumption. substantially part unleash fleet, as give they and past deliveries 'XX the 'XX

many solid our and strongly may the East, maintaining on and best, Middle focus navigate trouble-free safe, this customers influence the a transportation our geopolitical front, Doing by To will while what balance in challenges environment, uncertainties know clean Iran by and excellence. serving developments We're mindful we sheet. prudent we capital of providing including posed which on allocation market. Ukraine, the operational reliable,

XXXX capable. to to and to one X to on bid fleet We build ammonia another plan of capable retrofitted We water be be We year. VLGCs have able our operations on and already our ships projects. the emerging NP ammonia the retrofit CAPTAIN preparing are JOHN fully ammonia recently

balance strong X have we being market. a is well the a sheet, leader XXXX. delivering With VLAC a to addition, in In VLGC, company VLGC, positioned continue VLAC in

And like back to you Ted. to pass now I'd

Theodore Young

will focus the previous from free down XX, which our liquidity $XXX.X to million The was from CapEx. cash My allocation, paid offset flow we quarter. $XX.X the unaudited comments million change Thanks, on in financial equity XXXX, quarter John. sequentially million capital in cash cash, regular vessel third dividends today in reported in $XX.X essentially by was $X.X results. million and quarter of position, and At December our

dividend $XXX.X As disclosed XX.X% shareholders our total and XX%. last debt -- debt capitalization end to debt net total $X.XX XX, at will a or on about quarter of in million, of balance roughly our to we book million total to debt irregular a per With total February at $XX XXXX, of at of week, X. pay share February as stood record cap

gives flexibility. and financial and current and free have well-structured debt-free debt capital attractively X.X% undrawn with million revolver one cost all-in us We measure comfortable and $XX a balance, about priced the of an coupled with strong of cash our vessel

of number the that TCE, you these all-in X.XX% expect a remarks which you for of refer per morning filings this of Looking of XXXX. SOFR the cost cost are X-month off rolling this refer I'd quarter as adjusted third also per the at quarter, include for our remind a on quarter $XX,XXX investor days may slides beginning terms The our also useful available the docking. would in discussion excluding to expenditures basis which in increase in the such result results, to end posted of I and point for will approximately website. were that it note for cost year XX our debt ahead, lowest about be Please our find our will terms. EBITDA. my at we highlight definition coming dry day to fiscal our to capital cash day, hedges, first

good TCE with quite strong the third November was level. the our though of prior chartering and available showing the monthly over at October lower per December marginally we quarter $XX,XXX the results results, Looking results, about day achieved revenue trend than improvements quarter's

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

day TCE its I in COA the strong mentioned. from the per pool. the benefited For the portfolio of Pool time the just trend and December results reflecting for XX monthly out charter The $XX,XXX improving overall quarter, under spot Helios voyages

note our Page XX material, On vessels pool. the of charter that I'd have exposure Helios for outside slightly see the in investor you Helios the within pool, -- like been Corsair, the now XX% over can on X the a charter the long-term entered to on highlights the had which vessels pool of has in Pool. time time that Dorian indicating spot we pool X

ending pool. the estimate currently of can have during in in this and Helios charters spot quote we the vary. priced rates some options we given the time COAs fixtures in TCE just charters that quarter yield Please a and ahead XX, in $XX,XXX huge the the the that March on in rate our estimates calls predicting note on day. that estimate and which revenue fact dates, for includes loading rates, recognition realize Baltic fixed both difficulty these the a Looking obviously days we actually the and put XXXX, excess of effect we will had quarter average quarter, were to available That the that XX% over per

drydocking expenses, $X,XXX. quarter's OpEx from up related which the was Daily prior marginally the for $XX,XXX at quarter excluding came in

quarter the our OpEx drydocking excludes OpEx amounts includes nearly preferred a of difference This reported those between measure day that that saw costs. expense $X,XXX and

was was with at vessels rate level those our or than that's G&A noncash slightly positively contributed charter $XX,XXX be a expectations. which is consistent $X.X Thus $XX.X quarterly Total excluding million we X $X.X million. time G&A, about in to our less reflects Those adjusted reported compensation Our at expense for cash amounts million consider for core per which our vessels quarter G&A profits. expense, day. the TCN of EBITDA and the came quarter the G&A $XX.X for a million netted what to

Total the of reflecting again was interest debt. million, expense X.X% cash cost for quarter all-in our $X.X

June bit quarter X% will roll to April in quarter, those XXXX, our of the reminder, about that's fiscal total following a I the As of cost mentioned. the a first hedges increase interest to off XXXX

docks, completed before includes of disclosures. dock X coming to have be the payments $X which and we upgrades. in the X roughly March, year-end, outlays for some including docks dry consistent fiscal both our million dry million related drydocking Year-to-date, dry we incurred already completed dockings about with vessels through of additional $XX.X we Days anticipate an more for previous year, should For end cash have be those in current advanced our payments the dry and and docks. will dry

results we is our market quarter XX, our $XXX million dividend paid The declared of dividends $XX.XX to a XXXX. that The reduction the modest $X.XX discussions previous dividend last need brings no week It the per irregular between utility, reflects in and share topic. have means long-term balanced of share by The our September is business. since and of we irregular consistent mix prospects the with the of VLGC a around business current which offer dividend open to and the favorably month, million. million repurchases of dividend immediately either. the compare Including $XXX is paid to returned prior our our self-tender approximately income be since net in $XXX $XXX to should and irregular million policy dividends. we've first XXXX, June be think dividend next through don't in Those dividends cash. in

the in our earnings, overall forecast, appropriate future environment our among of said, in a needs Board we've near-term level, factors market determination As making investment $X.XX dock our and current view dry number for cash of the quarter's earnings when per our its weighs share constructive cash considering this year. Thus, a reflects the flow and last any, market heavy if schedule dividends. dividend

renewal reduction to investment. judicious for free fleet to fleet cash shareholder be our be balance the distributions, working on flow, continue debt We'll lookout We with in opportunities.

With to Taro that, over Rasmussen. I'll it pass

Taro Rasmussen

booms Gulf for October. levels The market demand without as from for challenges regions conditions from exports in major quarter The a majeure the high were the high Ted. for from United winter and terminals you, East October. thank Nederland through as years. tepid U.S. spike winter high. But record recovery in warm production you knock-on had a at hampered levels everyone, halted the X favorable inventory previous at Far December and market but seen witnessed day, petrochemicals dialing Thank any States freight emerging. a Extra in force terminal export and physical remained prior, created effects from saw but quarter and XX, been the volumes in. Good liftings XXXX, ending the during

limited export into which east potential on west the in constraint Far any to capacity the The priced arbitrage, speculative buying East. for was snaps cold

demand were premium to continued elusive, VLGC the the export quarter. stable the and of Although Western duration ensured October inventory through for at the fundamentals east volumes in a of production and spikes levels high traded fixing high market the

VLGC significant month drew The of relative East the then a market supported November. to areas record attractiveness from U.S. for export in Western the loading supply VLGCs the to and States United

rates to for fewer exported about and reported were rates terms export. on the levels, December the previous to supply from high negligible than tons laid many XXXX. to vessels average record but programmed, was VLGCs, prior slightly the was month mostly In market Western production November owing of November, the of held the available and in The X.XX continued positive was in at the about X.XX And route vessels in of effectively freight November, million situation higher of August fundamentals far on reflecting east inventory in tons. exports sideways. delays Canal the were vessel Panama With million

was by difficult The limited to Arabian the Arabian Gulf subject assessment pure pool and Indian mostly to market during characterized availability loading for for Far sector to fixtures west rates with undertakings. public the the the the Gulf. of The of freight market spot made by of in number the East previous to brokers Far vessels reduced inquiries East as quarter,

market, were Although running cover new it reported sudden inquiry periods to often export with for catering rather vessels fixing tons. than late the to in there was

come Despite shipping. the competitive the expectations a The quarter to by fourth freight petrochemical recovery firmer due from demand. East freight Far players to in in most. increasing welcomed analysts VLGC propane if on was the calendar a market propane market to our was quarter remain the through remain for market continue positive anticipated XXXX XXXX oversupply, for China, some stream market even in third cracking. likely feedstock calendar steam all Nonetheless, by continues PDH seeing overall the challenged plants

positive the second factors Also, during limited maximum reached the moving Gulf efficiency if from are of upside XXXX new expected during Moreover, XX% high and congestion at creating XXXX the export North Panama of half Canal's schedule has supply forward. America in terminals XXXX, capacity increases. utilization potential expansion delivery roughly U.S. builds

Thank you. Lycouris. over I will to Mr. now John pass

John Lycouris

The energy a strive At advances the and of Taro. on performance exceeds you, to we Dorian vessels real-time operational mid to employment by fleet continue optimization. and Thank innovations intensity commercially requirements Dorian sector. and available the CII our technical and carbon of improve follow currently technological LPG or to marine operational determine the data index, voyage focus using IMO with monitoring efficiency LPG, to technical

costs. performance B. intensity COX grades AI of of software engine from XXXX E the systems monitoring being engine Our annual advanced fleet AER, in and the employment advanced emissions improved vessels a resulted devices, The software CIA and or and which and modification, energy-saving metric of of routing A IMO ratio implementation emissions industry reduction the A in have bunker than the fleet rating and vessel better target, with is XX.X% efficiency with was best, a for to grades

scrubber million scrubber about $X,XXX oil day metric net oil fourth fuel XXXX calendar for the calendar savings between to low expense. high Fuel or very Our sulfur all of $XX ton. quarter per of vessel sulfur per $X.X averaged fuel and differentials amounted operating

differential LPG at X stood fuel as ton, and our vessels. $XXX oil quite about dual fuel vessels. metric scrubber-fitted advantageous of XX vessels fuel, fuel LPG making low for LPG a fuel economically the versus dual While operate sulfur We fuel very as per

vessel call, a upgrade a drydocking XXXX of the for upgrade completion year. for Dorian for There for extensive ammonia is these ammonia and dry LPG established. special projects, vessel later cargo and X completion, cargo cargo for our in in upgrades currently the fleet the survey plan requirements. cargoes when cargo is this the during cargoes earlier undergoing employment first window will mentioned cargo commercial develop of built ammonia -- another As the dock readiness vessel ammonia and second have X building projects fleet's Upon VLAC-VLGC the and an markets regulatory doing LPG We ammonia increase water are in believe large capable optionality capability, delivering vessels new ammonia XXXX. system of for this the that

the and focus with MEPC towards to expect which gas is and technical the onwards. the the the code from nitrous oxide reduction CII for meet also further for greenhouse amendments gas a finalizing likely effect of approval technical MARPOL life cycle of are a global we meeting. measures updates. may XX XXXX and expected VI Annex We to the review of The focus progress is progression adoption XXXX from and make is scheduled on emerge to measures proposal economic codify assessment MEPC measures, the including of adoption EEXI on carbon tax, take decarbonization regulations to this establishment the and with the midterm IMO in the April of see greenhouse framework. to The emission

wind-assisted As current regulatory mentioned, benefits offer the previously propulsion frameworks. under systems and upcoming

factors of analysis Selecting that an and and cost-effective can conditions systems in routes, to hydrodynamic is that pivotal identify We our suitable delivering efficient propulsion voyage of technology the and typical and towards aerodynamic straightforward fleet. weather compliance. our the evaluation so seamless regulatory during reduced assisted we a step operate wind wind a encountered have and undertaken patterns and install can our emissions for path be energy the both solutions transition, vessels

the for and shareholders We sense our continue business focus savings makes emission on environment. and good believe for energy our that to

comments. Now Thank John over I would his to you. like to Hadjipateras pass for it closing

John Hadjipateras

Thank you we questions very much. Nikki, is open have. there

Operator

Nokta We'll Jefferies. from [Operator first question Instructions] our take Omar with

Omar Nokta

a the guess with update dividend you good the your on usual. question remarks. amount for Good I into Thanks as get everything. of to detailed answered the

to going couple as But forward about past think of kind The that. advantage leave years, taken on probably I'll things. wanted allocation strong maybe it ask you've a we capital first of So of just at very market.

and you There's uncertainty. -- a down and we rates debt, Obviously, into big uses what's good previously. going built your ships do of through think paid the freight be dividends to rank forward are moderating How amount of cash, paid XXXX? what a of how that think move a way. here would up You from do some capital as important some How amount maybe we good acquired there's here? or from clearly along you you about sense moving saw

John Hadjipateras

Thanks for Omar. that question,

You deep questions. a always and ask pertinent very

we mean -- is think same. don't remain it we same. priorities -- the the I continue So I our

we may our -- -- for cash be I I are think that structure our as expansion. we debt for the -- the the the And market that position and cash have we There market, cash that -- the think see as I seen. prudent is and with may same we being are or said comments, constructive. will management, for opportunities more and my There we've in positioned we've for there so well that opportunities be think that market had that which providing mentality far, can less we're same dividends. level, the hopeful continue prudent that that debt surpluses we continue on -- position

Omar Nokta

on. And talking maybe amount of of the about supply coming kind guess just I

You the to order about XXX the XX% VLGCs mentioned release in the equaling on fleet. of

the coming strong the that the you maybe that, like Looking the of supply-demand these think think how you without trade and balance. that good just in or has part the the going about and to can talk Can could in impact easily XX few question capacity. vessels forward? forward? also that been over trade a maybe amount a VLECs affect growth can demand the of Maybe trade see very growth going Do back X first there's market. significant to that's then XX those still do pull we have you amount about past of How absorbed years,

John Hadjipateras

have more -- optimism here ammonia back. currently, -- that think of we the certainly, that there's bit a discounted. pull And been feeling I discounted. from it's caused ordering absorbed think about -- developing significant like it. on forward, the The trade. by few in last And the people greater ship boom But is so possibility than are a cautious the years, I Omar, delays And deliveries. of upside been just amount was

the going and I -- the trade, enough the 'XX in ammonia my the to be trade the think in and we in increase is potential deliveries of to that is -- absorb it's the both absorb coming going of feeling LPG, see 'XX. to own

Omar Nokta

of those ethane? And into oncoming is going maybe are most how just something in terms -- design contracted that well? and on Or -- do part touching consider just potential for those by we you VLECs the mind that as the should supply fully as

John Hadjipateras

talking you the ethane VLEC, about the... or Are

Omar Nokta

that's I what Yes, Yes said. the VLEC. Yes, ethane.

John Hadjipateras

No, no.

I is increasing think trade that, its on that own.

is will but absorbed they market. think think expansion because I happen market, there ships know and -- in significant. that that be drop have will potential be the that into to will I market VLGC those I then the that down the of the exports don't

Operator

we move with with Value And next will Molins Investor's Climent Edge.

Climent Molins

talk fixed at I bookings wanted what far percentage asking in rates? and so your so of what start QX. about days by to far about you Could you

John Hadjipateras

of yes. Ted like that? which take or Ted, would Taro, you to

Theodore Young

what call. that the quarter. reiterate in just said said We XX% a the earlier in we we and a achieve just estimate we $XX,XXX I'll the of that day excess will for of over we've days TCE available booked

Climent Molins

I to you ask the exercisable? those That's also are missed provide purchase commentary some helpful. price I on Could time about the had vessels chartering with wanted options. it.

Theodore Young

that. disclose don't we No,

Climent Molins

final then And me. for question

a discount repurchases Omar's And between is the distributions? NAV. substantial question but you on a on share up more trading could view back and to for comment how capital allocation, this dividend decision now on at trade-off Board, the Following you you're

John Hadjipateras

obviously. table perhaps a are accelerate not stock, sort definitely and We share for of us authority, our off the repurchase we to repurchase. the the share of And watching it's have price

Operator

turn Q&A closing conclude will I the for now management call session. over this remarks. And will our to

John Hadjipateras

to Well, you you. good very forward have much, our thank In you Thank Bye-bye. meantime, everyone. talking time. the next at look We to call. a

Operator

you And participation. for your today's Thank this does conclude program.

time. may at disconnect any You

Dorian LPG (LPG) 31 Jan 252025 Q3 Earnings call transcript