Dorian LPG Ltd. Q1 FY2026 earnings call

• Dividend: $0.60 per share, totaling $25.6 million, our 16th dividend payment, with total dividends distributed over $665 million and over $900 million in total capital returned to shareholders. - Market in Q2: Resilient, freight rates strengthened due to healthy arbitrage economics and geopolitical tensions in the Middle East, U.S. LPG exports continued growth, Middle Eastern exports also higher. - Operational: Completed 10 of 12 dry dockings planned for 2025; some VLGCs converted to facilitate ammonia carriage; scrubber vessel savings for Q1 2026 were $961,000 or $813 per calendar day; operate 16 scrubber-fitted vessels and 5 dual-fuel LPG vessels; 10 vessels had special survey combined with drydocking in 2025; 2 vessels scheduled for special survey and dry dock in Q4 2025; 4 vessels dry docked in 2024 due for special survey in 2025; 5 VLGC vessels to carry ammonia cargoes including new building VLAC vessel; fleet AR for Q2 2025 was 8.5% better than IMO 2025 target.

In the first quarter, Dorian LPG reported a TCE per available day of $39,726. Despite a heavy dry dock schedule resulting in about 195 days not available for revenue generation, June results were stronger than the previous two months and Q1 was sequentially stronger than the March 31 quarter. The Helios Pool reported spot rates for the quarter of about $37,700 and approximately $38,900. Forward bookings for the quarter ending September 30, 2025, reflect a strong increase in rates since late May into June, with an estimate that about 70% of the pool's fixable days are fixed at a TCE in excess of $67,000 per day. Daily OpEx for the quarter was $10,108 excluding drydocking related expenses, down from the March quarter's $11,001. Time charter-in expense for the 4 TCN vessels was right around $29,000 per day. Total drydocking costs for remaining dockings in the April-June quarter and 2 more vessels to be dry docked this quarter are expected to be between $6.5 million and $7 million. At June 30, 2025, there was $278 million of free cash.

• Anticipate quarterly TCN expense will be approximately $14 million to $15 million. - For the September 30 quarter, noncash compensation expense will increase by roughly $3 million over the current quarter. - Expect cash cost per day for the coming year to be approximately $26,000 per day excluding remaining capital expenditures for dry docking and progress payments on new building. - Board considers current earnings, near-term cash forecast, future investment needs and market environment in determining dividends; $0.60 per share dividend reflects constructive market view; continue to look for fleet renewal opportunities and be judicious with free cash flow balancing shareholder distributions, debt reduction and fleet investment.

• Forward-looking statements are subject to known and unknown risks and uncertainties, general economic conditions, and other factors. Should risks or uncertainties materialize or assumptions/estimates prove incorrect, actual results may vary materially from forward-looking statements.

Q: About what's driving the market to have gotten stronger, especially when comparing to last year?

A: Taro Rasmussen said the answer lies in the fundamentals primarily with the strength of the U.S.'s ability to produce NGLs and get it exported, growth and ability of industry players to adapt past learnings to realign trade flows, and Red Sea transit difficulties that helped lengthen ton miles.

Q: About why the freight part captured a wider part of the export spread compared to a year ago?

A: John C. Hadjipateras and Taro Rasmussen mentioned expansion of terminal capacity.

Q: About where ethane ships would go if ethane trade stopped?

A: John C. Hadjipateras said if ethane trade stopped, they would enter the VLGC market