Revenue Generation - For the fiscal years ended March 31, 2025, 2024, and 2023, approximately 97%, 95%, and 94% of total revenues were generated through the Helios Pool as net pool revenues[33]. Fleet and Capacity - As of May 23, 2025, the global VLGC fleet consists of 402 vessels with an aggregate carrying capacity of 33.6 million cbm, and 108 vessels with 9.7 million cbm of capacity are on order for delivery by the end of 2029[35]. - The average age of the company's twenty-one VLGCs is 10.0 years, compared to the global VLGC fleet's average age of 11.4 years[36]. - The top ten owners in the worldwide VLGC fleet possess 41% of the total fleet on a vessel count basis[36]. Market Conditions - The LPG shipping market is historically stronger in the spring and summer months, with demand expected to be stronger in the quarters ending June 30 and September 30[37]. Workforce and Compensation - As of March 31, 2025, the company employed 93 shore-based staff and approximately 494 seafaring staff[38]. - The company provides competitive compensation and benefits, including annual bonuses, stock-based compensation, and employer-matching retirement savings plans[39]. Environmental Compliance and Initiatives - The company maintains a pollution liability insurance coverage of $1.0 billion per vessel per incident[52]. - The company has procured loss of hire insurance to protect against loss of income for a maximum of 180 days following a deductible period of 14 days for marine risks[49]. - The company actively manages operational risks and has established key performance indicators to monitor safety and environmental impact[46]. - The company operates newer ECO vessels with advanced technology, resulting in enhanced energy efficiency and reduced greenhouse gas emissions on a ton-mile basis[57]. - The company has fitted vessels with scrubbers to comply with the IMO's new fuel regulations, which went into effect in January 2020[57]. - The company joined the Getting to Zero Coalition, a global alliance of over 140 companies committed to decarbonizing deep-sea shipping[57]. - The company successfully complied with the IMO's Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) requirements in 2023[62]. - The company became a Mission Ambassador in partnership with the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, aiming for net-zero emissions by 2050[62]. - The company is a founding member of the MIT Maritime Consortium, focused on developing innovative technologies for decarbonizing shipping[62]. - The company has established compliance programs to meet or exceed applicable maritime industry regulations[62]. - The company is subject to stringent emissions controls under the amended Annex VI of MARPOL, which limits sulfur oxide emissions from vessels[70]. - The company may incur substantial costs due to compliance with new emission regulations and potential future Environmental Control Areas (ECAs)[71]. - The company has disclosed sustainability-related information aligned with the Sustainability Accounting Standards Board (SASB) Marine Transportation standard on its website[56]. - The company may incur significant costs to comply with revised nitrogen oxide emissions standards, including modifications to vessels or engines for alternative fuels[79]. - The MEPC 79 adopted amendments to MARPOL Annex VI, which will require ships to submit attained and required CII values and EEXI to the IMO database, effective May 1, 2024[78]. - Ships above 5,000 gross tonnage must document and verify their actual annual operational CII against a determined required annual operational CII[77]. - The BWM Convention requires ships to manage ballast water to avoid the uptake or discharge of invasive aquatic organisms, with compliance costs expected to be substantial[87]. - The MEPC 80 approved a comprehensive review of the BWM Convention, with amendments expected to be developed over the next three years[90]. - The company has obtained safety management certificates for all vessels, ensuring compliance with the ISM Code requirements[82]. - The IMO has adopted cybersecurity regulations that may require additional expenses for monitoring and compliance[85]. - The company is subject to international conventions that impose liability for pollution, requiring adequate insurance coverage for incidents[94]. - Amendments to the SOLAS Convention effective January 1, 2024, include new requirements for safe mooring operations and safety of ships using LNG as fuel, potentially impacting operational costs[86]. - The company has obtained Anti-fouling System Certificates for all of its VLGCs that are subject to the Anti-fouling Convention[99]. - As of the date of the Annual Report, all vessels are ISM Code certified, but future compliance cannot be assured[100]. Liability and Insurance - The 2010 HNS Convention sets maximum liability for bulk HNS at 100 million SDR and for packaged HNS at 115 million SDR, with additional compensation from the HNS Fund up to 250 million SDR[101]. - The adjusted limits of OPA liability for tank vessels over 3,000 gross tons are now the greater of $2,500 per gross ton or $21,521,300, an increase from the previous limit of $2,300 per gross ton or $19,943,400[105]. - CERCLA limits liability for vessels carrying hazardous substances to the greater of $300 per gross ton or $5.0 million, and for other vessels to the greater of $300 per gross ton or $500,000[106]. - The company maintains pollution liability coverage insurance of $1.0 billion per incident for each vessel[113]. - The U.S. Clean Air Act requires compliance with vapor control and recovery requirements for certain cargoes, which the company's vessels are equipped to meet[114]. - The U.S. Clean Water Act imposes strict liability for unauthorized discharges, with substantial penalties for non-compliance[115]. - The company is subject to evolving regulations regarding offshore oil and gas drilling, which may impact operational costs[111]. - Compliance with state regulations regarding oil pollution incidents may impose stricter liability than federal law[112]. - Compliance with the EPA and USCG regulations regarding ballast water treatment may require substantial costs for equipment installation or port facility disposal procedures[116]. - The EU's regulations mandate monitoring and reporting of CO2 emissions for ships over 5,000 gross tonnage, potentially incurring additional expenses[117]. - The EU Emissions Trading System will require shipowners to buy permits for greenhouse gas emissions, with obligations increasing to 100% by 2026[121]. - The FuelEU Maritime regulation sets a baseline GHG intensity of 91.16 gCO2e/MJ, requiring a 2% reduction in 2025 and escalating to an 80% reduction by 2050[122]. - The IMO's revised strategy aims for a 20-30% reduction in total annual GHG emissions from international shipping by 2030 compared to 2008 levels[126]. - As of March 31, 2025, sixteen ECO-VLGCs are equipped with scrubbers, indicating a commitment to compliance with environmental regulations[129]. - The EU's carbon market will extend to cover CO2 emissions from all large ships entering EU ports starting January 2024[127]. - Compliance with the Maritime EU ETS and FuelEU Maritime regulations will result in additional compliance and administration costs[123]. Financial and Tax Considerations - The company is not subject to tax on income or capital gains under current Marshall Islands law, and no withholding tax will be imposed on dividend payments to shareholders[137]. - The company expects to satisfy the Publicly-Traded Test for the taxable year ended March 31, 2025, and anticipates continuing to do so in subsequent years[144]. - If the Section 883 exemption is unavailable, the company's United States source shipping income would be subject to a 4% tax on a gross basis, with a maximum effective rate of 2%[152]. - The company does not intend to have any vessel sailing to or from the United States on a regularly scheduled basis, which is expected to prevent its United States source shipping income from being "effectively connected" with a United States trade or business[154]. - Any gain realized on the sale of a vessel will not be subject to United States federal income tax if the sale occurs outside of the United States[155]. - Distributions made by the company to United States Holders will generally constitute dividends to the extent of current or accumulated earnings and profits[159]. - Dividends paid on the company's common shares will generally be treated as foreign source dividend income for United States tax purposes[160]. - The company intends to take the position that it will not be classified as a Passive Foreign Investment Company (PFIC) for the taxable year ending March 31, 2025, based on its income from voyage and time charters being treated as active income[167]. - The company believes it satisfies the 75% income test for PFIC purposes for the taxable year ending March 31, 2025, due to its income from voyage charters[166]. - If classified as a PFIC, United States Holders must report their pro rata share of ordinary earnings and net capital gain for each taxable year during which the company is a PFIC[170]. - Non-United States Holders generally will not be subject to United States federal income or withholding tax on dividends received, unless engaged in a United States trade or business[175]. - Backup withholding may apply to dividend payments and sales proceeds if certain conditions are met, such as failure to provide an accurate taxpayer identification number[177]. - Individuals holding specified foreign financial assets exceeding $75,000 must file IRS Form 8938, which includes the company's common shares[181]. - The company intends to notify shareholders promptly if it determines it is a PFIC for any taxable year[168]. - The company cannot assure that its operations will not change in the future, which could affect its PFIC status[167]. Growth and Market Risks - The company generates all revenues in U.S. dollars, but incurs a portion of expenses in other currencies, which may lead to fluctuations in net income due to exchange rate risks[223]. - On November 24, 2023, the company entered into an agreement for a newbuilding VLGC/AC, expected to be delivered in Q2 2026, enhancing its capacity to carry full cargoes of LPG or ammonia[226]. - The company may face significant expenses and losses if it fails to manage growth properly, particularly in acquisitions and integration of new vessels[224]. - The company estimates that its vessels have a useful life of 25 years, and as they age, maintenance costs and risks associated with older vessels could adversely affect profitability[239]. - The company may incur increasing costs for drydocking and maintenance as vessels age, which could impact financial results[238]. - Certain shareholders hold substantial stakes, with Blackrock, Inc. owning 12.8%, which may lead to conflicts of interest affecting other shareholders[242]. - The company may face challenges in attracting and retaining skilled personnel, which is critical for operational effectiveness[231]. - The company’s strategy includes owning a fleet large enough for global coverage while avoiding overexpansion, which is influenced by the timing of investments and divestments[229]. - The company may not be able to procure adequate insurance coverage at commercially reasonable rates, which could harm its financial condition[235]. Tax Compliance and Regulatory Changes - The company expects to qualify for exemption under Section 883 for the taxable year ended March 31, 2025, but risks losing this exemption due to non-qualified shareholders[248]. - If not exempt under Section 883, the company would incur an effective 2% U.S. federal income tax on gross shipping income from U.S. transport, negatively impacting earnings[249]. - Changes in global tax laws, including OECD's two-pillar project, could increase the company's tax compliance burden and global effective tax rate, adversely affecting financial results[250][251]. Market Volatility and Economic Conditions - The cyclical nature of seaborne LPG transportation may lead to significant changes in charter rates, vessel availability, and values, adversely affecting revenues and profitability[252]. - Future growth in demand for LPG carriers will depend on global economic conditions and demand exceeding the capacity of the LPG carrier fleet, particularly in key markets like China and India[253]. - Prolonged low natural gas and LPG prices could reduce demand for LPG shipping, adversely affecting charter rates and vessel market values[258]. - A shift in consumer demand from LPG to alternative energy sources could materially impact the company's business and financial performance[262][263]. - Increased trade protectionism and tariffs could adversely affect the company's operations and financial condition due to potential disruptions in international trade[265][266]. - Increasing trade protectionism may lead to higher costs and delivery times for goods, adversely affecting global trade and the company's business operations[270]. - Fluctuations in vessel market values can result in losses on vessel sales or impairment charges, negatively impacting earnings and potentially leading to loan defaults[271]. - Vessel values are influenced by various factors, including economic conditions, competition, and supply-demand dynamics in the shipping industry[271]. - The company faces risks associated with the aging of vessels, which generally decline in value over time[271]. - Protectionist developments could significantly reduce global trade, particularly between the United States and China, impacting the company's charterers' financial health[270]. - The company may experience challenges in renewing charters and growing its business due to adverse economic conditions stemming from trade restrictions[270]. - The shipping industry is subject to cyclical and volatile market conditions, affecting charter rates and vessel capacity supply[271]. - Technological advancements and regulatory changes may necessitate upgrades to vessels, impacting operational costs and efficiency[271]. - The company’s cash flows, including dividends to stockholders, could be adversely affected by the aforementioned economic and market conditions[270]. - The overall financial condition of the company's charterers is critical for timely charter hire payments, which directly impacts the company's revenue[270].

Group 1 - The article discusses Dorian LPG's recent dividend announcement, highlighting a 30% reduction from the previous dividend, which was expected to be $0.5 but was set at $0.7 instead [1] - The author has a diverse professional background across various industries, which contributes to a comprehensive investment analysis perspective [1] - The investment strategy focuses on cyclical industries, aiming for significant returns during economic recovery while maintaining a diversified portfolio that includes bonds, commodities, and forex [1] Group 2 - The article does not provide any specific financial metrics or performance data related to Dorian LPG or the broader industry [2][3]

Financial Data and Key Metrics Changes - The company reported free cash of $317 million as of March 31, 2025, an increase from the previous quarter [10] - Cash flow from operations more than doubled from $24 million to $50.3 million quarter over quarter [10] - The reported adjusted EBITDA for the quarter was $36.6 million, with total cash interest expense down sequentially to $6.7 million [16] Business Line Data and Key Metrics Changes - The Helios Pool earned a TCE per day of $29,800 for its spot and COA voyage, reflecting a challenging LPG product environment [13] - Dorian's reported TCE revenue per available day was about $35,300, slightly lower than the prior quarter [14] - Daily operating expenses for the quarter were $11,000, excluding dry docking expenses, which was an increase from the prior quarter [15] Market Data and Key Metrics Changes - U.S. LPG production hit a quarterly record of 5 million tons, despite a drop in exports from 5.6 million tons in January to 4.9 million in February [28] - The quarterly exports were the highest on record for Q1, marking the third highest overall per quarter [28] - Freight rates experienced significant volatility, with earnings on modern non-scrubber vessels dropping from high $40,000s to low $20,000s before rebounding to mid to high $40,000s by the end of the quarter [25] Company Strategy and Development Direction - The company is focused on energy efficiency and sustainability, with plans to convert some VLGCs to carry ammonia [8][40] - The board is balancing shareholder distributions, debt reduction, and fleet investment while monitoring market conditions [19] - The company anticipates a favorable supply-demand balance due to limited newbuilding deliveries and strong production [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of LPG demand, driven by growing consumption in Asia and infrastructure expansions in the U.S. [8] - The recent tariff announcements and trade dynamics have created a complex operating environment, but the company remains optimistic about market recovery [18][35] - The board considers current earnings, cash forecasts, and future investment needs when determining dividend levels [18] Other Important Information - The company declared an irregular dividend of $0.50 per share, reflecting a commitment to returning capital to shareholders [6][11] - The company has returned approximately $875 million in cash through dividends and repurchases since its IPO [11] - The company plans to drydock eight vessels in the current fiscal year, budgeting approximately $12 million for this purpose [17] Q&A Session Summary Question: What is driving the recent strength in the VLGC market? - Management noted that trade flows have shifted due to tariffs, with cargoes moving from the U.S. to India and Southeast Asia, contributing to ton miles and maintaining demand [46][48] Question: Have there been any noticeable changes in inquiries or fixtures from Chinese buyers? - Management indicated that while there has been a shift in trade routes, there hasn't been a significant increase in inquiries from Chinese buyers, as many are content with current arrangements [52][54] Question: Is there a possibility of a higher dividend given the recent rate improvements? - Management stated that the board made the dividend decision based on the best available information at the time, and future evaluations will consider the improved rate outlook [56][57]

Financial Data and Key Metrics Changes - The company reported $317 million in free cash as of March 31, 2025, an increase from the previous quarter [10] - Cash flow from operations more than doubled from $24 million to $50.3 million quarter over quarter [10] - The reported adjusted EBITDA for the quarter was $36.6 million [16] Business Line Data and Key Metrics Changes - The Helios Pool earned a TCE per day of $29,800 for its spot and COA voyage in March, reflecting a challenging LPG product environment [13] - Dorian's reported TCE revenue per available day was about $35,300, slightly lower than the prior quarter [14] - Daily operating expenses for the quarter were $11,000, excluding dry docking expenses, which was an increase from the prior quarter [15] Market Data and Key Metrics Changes - U.S. LPG production hit a quarterly record of 5 million tons, despite a drop in exports from 5.6 million tons in January to 4.9 million in February [29] - The quarterly average spot earnings settled around $30,000 per day, reflecting a balanced market [26] - The market saw a significant drop in freight rates due to tariff announcements, with rates collapsing from approximately $40,000 a day [30] Company Strategy and Development Direction - The company is focused on energy efficiency and sustainability, with plans to upgrade vessels to carry ammonia cargo [41][42] - The board is balancing shareholder distributions, debt reduction, and fleet investment in light of market conditions [20] - The company anticipates a favorable supply-demand balance due to limited newbuilding deliveries and terminal capacity expansions [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of LPG demand, driven by growing petrochemical and residential consumption, particularly in Asia [8] - The company noted that recent rate fluctuations highlight the various factors affecting the business, including weather and global trade policies [19] - Management remains optimistic about the market outlook for 2025, expecting increased production and exports supported by terminal capacity expansions [36] Other Important Information - The company declared an irregular dividend of $0.50 per share, reflecting a commitment to returning capital to shareholders [6][11] - Total cash interest expense for the quarter was $6.7 million, down sequentially from the prior quarter [16] Q&A Session Summary Question: What is driving the recent strength in the VLGC market? - Management noted that trade flows have altered due to tariffs, with cargoes now going to India and Southeast Asia, contributing to ton miles [49][51] Question: Have there been any noticeable increases in inquiries from Chinese buyers post-trade talks? - Management indicated that while there has been a shift in trade routes, there hasn't been a significant increase in inquiries from Chinese buyers, as many are content to continue selling to India [57] Question: Is there a possibility of a higher dividend given the recent rate improvements? - Management stated that the board made the dividend decision based on the best information available at the time, and future evaluations will consider the improved rate outlook [59][60]

Investor Highlights May 2025 1 Disclaimer Forward-Looking Statements This presentation 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 Compan ...

Financial Projections - For the quarter ended March 31, 2025, the Company expects Time Charter Equivalent (TCE) revenues to be between $73,100,000 and $75,100,000[4] - The Company anticipates operating vessel expenses to be between $22,900,000 and $24,900,000[4] - General and administrative expenses (excluding stock-based compensation) are expected to be between $7,800,000 and $11,300,000[4] - Stock-based compensation is projected to be between $1,350,000 and $1,550,000[4] - Long-term debt obligations are estimated to be between $317,900,000 and $558,400,000[4] Financial Results - Revenues for the three months ended March 31, 2025, are reported at $75,900,000, with voyage expenses of $1,800,000, resulting in TCE revenues of $74,100,000[9] - The Company reported cash and cash equivalents of $315,900,000 as of March 31, 2025[4] Company Operations - The Company operates a fleet of twenty-five Very Large Gas Carriers (VLGCs), including twenty ECO VLGCs and four dual-fuel ECO VLGCs[10] Conference Call - The earnings conference call to discuss the results is scheduled for May 22, 2025, at 10:00 a.m. ET[2] Financial Data Disclaimer - The Company emphasizes that the provided financial data is preliminary and subject to adjustments that may be material[5]

Company Overview - BW LPG Limited operates in the niche market of Very Large Gas Carriers (VLGCs), specializing in the transportation of liquefied petroleum gas (LPG) globally [1] - The company is headquartered in Singapore and owns more VLGCs than any other entity in the market [1] Investment Focus - The analysis primarily targets small- to mid-cap companies, which are often overlooked by investors, while also occasionally reviewing large-cap companies to provide a broader market perspective [1]

Group 1 - Dorian LPG has an average brokerage recommendation (ABR) of 1.00, indicating a Strong Buy based on recommendations from three brokerage firms, all of which are Strong Buy [2][5] - Despite the Strong Buy recommendation, reliance solely on brokerage recommendations may not be prudent, as studies show limited success in guiding investors to stocks with the best price increase potential [5][10] - Brokerage analysts often exhibit a positive bias in their ratings due to vested interests, leading to a higher frequency of Strong Buy recommendations compared to Strong Sell [6][10] Group 2 - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, which correlate strongly with near-term stock price movements [8][11] - The Zacks Rank is distinct from the ABR, as it is a quantitative model that reflects timely earnings estimate revisions, while the ABR may not be up-to-date [9][12] - For Dorian LPG, the Zacks Consensus Estimate for the current year has declined by 10.9% to $2.43, indicating growing pessimism among analysts regarding the company's earnings prospects [13][14] Group 3 - The recent decline in the consensus estimate and other related factors have resulted in a Zacks Rank of 4 (Sell) for Dorian LPG, suggesting caution despite the ABR indicating a Buy [14]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Dorian LPG, and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][5][10]. Group 1: Brokerage Recommendations - Dorian LPG has an average brokerage recommendation (ABR) of 1.00, indicating a Strong Buy, based on recommendations from three brokerage firms, all of which are Strong Buy [2][5]. - Despite the Strong Buy recommendation, relying solely on this information for investment decisions may not be advisable, as studies show brokerage recommendations often fail to guide investors effectively [5][10]. - Brokerage analysts tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" [6][10]. Group 2: Zacks Rank Comparison - Zacks Rank categorizes stocks into five groups, from Strong Buy to Strong Sell, and is based on earnings estimate revisions, which correlate strongly with near-term stock price movements [8][11]. - The Zacks Rank is distinct from the ABR, as it is a quantitative model that reflects timely earnings estimate revisions, while the ABR may not be up-to-date [9][12]. - Dorian LPG's Zacks Consensus Estimate for the current year has declined by 10.9% to $2.43, indicating growing pessimism among analysts regarding the company's earnings prospects [13]. Group 3: Investment Implications - The recent decline in the consensus estimate and other factors have resulted in a Zacks Rank of 4 (Sell) for Dorian LPG, suggesting caution despite the ABR indicating a Buy [14].

Group 1 - Dorian LPG is perceived as a value buy due to its attractive dividend payout history and recent cyclical correction [1] - There are growth concerns for Dorian LPG, particularly related to the outcome of tariff details [1]