DORIAN LPG LTD. Q3 FY2025 earnings call

• Dividend of $0.70 per share is consistent with the irregular dividend policy, aligning shareholder returns with market realities.
• Achieved fuel savings higher than 10% from energy saving devices and silicon paints during dry dockings, with payback periods less than a year.
• Expect production growth and terminal expansions at Targa and Nederland by second half 2025.
• Preparing operations and fleet for ammonia projects, with vessels like Captain John NP and retrofitted VLGCs.
• Debt balance at quarter end was $570.3 million, with debt-to-total book capitalization at 34.8% and net debt to total cap at 15%.
• Completed 3 drydockings year-to-date, with 4 more scheduled by end of March, incurring ~$12.5 million in cash outlays YTD.

In the third quarter, TCE revenue per available day was approximately $36,100, though marginally lower than the prior quarter. The monthly trend improved with November and December showing stronger results. Daily OpEx excluding drydocking was $10,161, marginally up from the prior quarter. Time charter vessels contributed positively, with the four TCN vessels having a time charter rate expense of $10.6 million. Adjusted EBITDA for the quarter was $45.2 million. Revenue contribution details by product segment weren't explicitly broken down in terms of percentage, but the focus was on the LPG shipping segment's financials.

• Expect cash cost per day for 2025 to be approximately $26,000 per day excluding capital expenditures for dry docking.
• Estimate TCE in excess of $37,000 per day for Q1 2025, having fixed just over 53% of available days.
• Dividend of $0.70 per share paid on or about February 27, 2025 to shareholders of record as of February 5.
• Deliveries in latter part of 2026 and 2027 are substantial but more modest than past delivery cascades as a percentage of the existing fleet.

• Volatile political environment, including uncertainties in Ukraine, Iran, and the Middle East, which may strongly influence the market.
• Potential trade disruptions and tariffs tit for tat that could affect LPG trade.
• Evolving U.S. policies regarding the oil and gas industry pose uncertainties that may impact the market.

Q: On capital allocation and demand for new vessels.

A: John Hadjipateras stated the market is constructive, trade growth has absorbed significant deliveries in the past, and optimism remains for trade absorbing future deliveries.

Q: On VLECs.

A: John Hadjipateras said trade growth will absorb VLECs, and they don't think they'll significantly impact the VLGC market.

Q: On Q1 booking and capital allocation.

A: Ted Young reiterated ~53% of available days booked in Q1 with TCE expected over $37,000 per day; John Hadjipateras mentioned share repurchase authority is being watched, and it's not off the table to accelerate repurchases