Investment Strategy - The investment strategy focuses on overlooked companies that offer asymmetric risk rewards and pay dividends with juicy yields [1] - The strategy requires at least two of the three criteria to be met when filtering for new investment ideas [1] - The analytical approach combines fundamental analysis with technical analysis to time the market effectively [1] Industry Focus - The analyst has a preference for shipping and mining enterprises but is open to exploring companies from other industries if they fit the investment style [1] - The fundamental analysis is heavily emphasized, leveraging the analyst's background as an accountant [1] Writing and Community Engagement - The analyst is passionate about writing and financial markets, aiming to share investment ideas through KD Research [1] - The analyst is excited to join the Seeking Alpha community and contribute to the platform's thriving investor community [1]

Income-oriented individual investor focusing on building a solid dividend portfolio within oil and gas, shipping, energy, and minerals. I am investing my own money and do not work on behalf of others or a company, such as an investment firm. My formal qualification is an MSc in Business, where I majored in Finance.Analyst’s Disclosure: I/we have a beneficial long position in the shares of LPG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own ...

Financial Data and Key Metrics Changes - For the quarter ending September 30, 2024, the company reported EBITDA of $46.2 million and net income of $9.4 million, with net debt to total capitalization remaining at approximately 14% [7][21] - The debt balance at quarter end was $583.7 million, with a debt to total book capitalization of 34.9% and net debt to total capitalization at 13.4% [15][21] - Free cash flow for the quarter was $44 million, reflecting an irregular dividend of $42.8 million [14][21] Business Line Data and Key Metrics Changes - The company achieved time charter revenue per available day of about $37,000, which was lower than the previous quarter, but still generated over $40 million in free cash flow [18] - The Helios pool reported a TCE of $38,019 per day for spot and COA voyages, with approximately 80% spot exposure across 30 vessels [18][22] Market Data and Key Metrics Changes - The VLGC freight market experienced initial strength at the beginning of the quarter but softened mid-quarter due to weather-related disruptions and limited export capacity [8][25] - Despite challenges, August saw a record high for LPG exports from the U.S. at about 6 million tons, helping to clear a backlog of VLGCs [26][29] Company Strategy and Development Direction - The company is focused on returning value to shareholders while maintaining a strong balance sheet and investing in optimization and decarbonization initiatives [6] - The company plans to retrofit existing ships to carry ammonia and has one VLGC/VLAC scheduled for delivery in 2026 [10][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about near and mid-term market prospects, particularly with upcoming terminal expansion projects expected to enhance capacity [9][38] - The company anticipates that the efficiency of canal transits will be a significant factor affecting VLGC rates, rather than terminal capacity alone [41] Other Important Information - The company has added an eighth board member, Mark Ross, who brings extensive experience in global energy and shipping markets [11] - The company has completed three dry dockings and plans to dry dock three more vessels, including upgrades for ammonia cargo capabilities [21][33] Q&A Session Summary Question: Impact of U.S. terminal capacity on VLGC spot rates - Management indicated that the efficiency of canal transits is more critical than terminal capacity restrictions in determining VLGC rates [41] Question: Expectations for U.S. LPG inventory and winter consumption - Management noted predictions of a colder winter, which could increase U.S. consumption and impact the ARB [43] Question: Current bookings and TCE for the upcoming quarter - The company has fixed just over 60% of available days for the quarter ending December 31, 2024, at a TCE in excess of $40,000 per day [46] Question: Year-to-date decline in Middle Eastern exports - Management confirmed that Middle Eastern LPG exports are correlated with OPEC output, and an increase in production would likely lead to higher exports [49] Question: Timeline for ammonia trade development - Management suggested that while the green ammonia trade is developing slowly, it could suddenly gain momentum, positively impacting VLGC trade [50]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-36437 Dorian LPG Ltd. (Exact name of registrant as specified in its charter) | --- | --- | |-- ...

In the latest trading session, Dorian LPG (LPG) closed at $30.37, marking a +0.5% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.22%. Meanwhile, the Dow experienced a drop of 0.33%, and the technology-dominated Nasdaq saw an increase of 0.76%.Shares of the liquified petroleum gas shipping company witnessed a loss of 8.56% over the previous month, trailing the performance of the Transportation sector with its loss of 0.81% and the S&P 500's gain of 1.47%.The invest ...

In the latest trading session, Dorian LPG (LPG) closed at $32.76, marking a -0.67% move from the previous day. This move lagged the S&P 500's daily gain of 0.4%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.63%. Coming into today, shares of the liquified petroleum gas shipping company had lost 6.81% in the past month. In that same time, the Transportation sector gained 0.9%, while the S&P 500 gained 3.76%. Analysts and investors alike will be keeping a close eye o ...

Core Viewpoint - Dorian LPG Limited (LPG) is facing multiple challenges that render it an unattractive investment option [1] Earnings Estimates - The Zacks Consensus Estimate for third-quarter 2024 earnings has been revised downward by 77.2% in the past 60 days [2] - For 2024 and 2025, the consensus earnings estimates have decreased by 12.5% and 32.5%, respectively, indicating a decline in broker confidence [2] - Dorian LPG currently holds a Zacks Rank of 5 (Strong Sell) [2] Price Performance - Year-to-date, LPG has lost 21.6%, contrasting with the industry's growth of 24.5% [3] Valuation - Dorian LPG shares are trading at a forward price/earnings ratio of 3.47x, which is higher than the industry average of 2.23x and above its five-year low of 2.82x [6] - The company has a Value Score of C, indicating unattractive valuation [6] Market Conditions - The Very Large Gas Carrier (VLGC) market is currently unfavorable, with a 32% order book and 14% of vessels being over 20 years old, suggesting a potential supply glut [7] - The resolution of the Red-Sea crisis is expected to negatively impact VLGC ton miles, leading to lower day rates [7]

AleksandarGeorgiev/E+ via Getty Images Note: Investors should view this article as an update to my previous coverage of BW LPG, where I commented on their Q3 2023 report. Investment Thesis BW LPG Limited (NYSE:BWLP) (OTCPK:BWLLY) just reported Q2 earnings: EPS of $0.58 ($0.59 in Q2 last year, -1.6%). TCE per available day was $49,660 ($52,500, -5.4%). it declared a $0.58 quarterly dividend ($0.81, -28%). The market responded by adjusting BW's stock price down by 1.8%. BWLP made waves recently by acquiring p ...

Investors in Dorian LPG Ltd. (LPG) need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 20, 2024 $23 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also me ...

PART I. FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=10&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) The unaudited condensed consolidated financial statements for the three months ended June 30, 2024, show total revenues of $114.4 million and net income of $51.3 million. Total assets decreased to $1.91 billion from $1.84 billion at March 31, 2024, primarily due to a decrease in cash and cash equivalents. Total liabilities increased slightly to $791.9 million. The company generated $41.2 million in cash from operations and paid $40.4 million in dividends [Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Condensed Consolidated Statements of Operations (Three months ended June 30) | Financial Metric | 2024 | 2023 | | :--- | :--- | :--- | | **Total Revenues** | $114,353,042 | $111,562,907 | | **Operating Income** | $55,473,525 | $55,622,307 | | **Net Income** | $51,288,140 | $51,721,137 | | **Earnings Per Share (Basic)** | $1.25 | $1.29 | | **Earnings Per Share (Diluted)** | $1.25 | $1.28 | Condensed Consolidated Balance Sheet Highlights | Balance Sheet Item | June 30, 2024 | March 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $353,286,506 | $282,507,971 | | **Total Assets** | $1,911,790,897 | $1,837,650,165 | | **Total Liabilities** | $791,925,962 | $814,117,082 | | **Total Shareholders' Equity** | $1,119,864,935 | $1,023,533,083 | Condensed Consolidated Statements of Cash Flows (Three months ended June 30) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $41,224,784 | $63,265,349 | | **Net cash used in investing activities** | ($1,251,982) | ($2,344,946) | | **Net cash provided by/(used in) financing activities** | $30,830,300 | ($54,052,986) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) - As of June 30, 2024, the company's fleet consists of **twenty-five VLGCs**. The company is also constructing a new **93,000 cbm VLGC/Ammonia Carrier** expected for delivery in **Q2 2026**[24](index=24&type=chunk) - The company holds a **50% interest** in the Helios LPG Pool LLC, a joint venture with MOL Energia. As of June 30, 2024, the Helios Pool operated **thirty VLGCs**, including **twenty-four** from Dorian's fleet. Net receivables from the Helios Pool were **$104.5 million**[40](index=40&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) Total Debt Obligations | Date | Total Debt Obligations | Debt Obligations (Net of deferred fees) | | :--- | :--- | :--- | | **June 30, 2024** | $597,107,209 | $592,065,493 | | **March 31, 2024** | $610,451,757 | $605,092,530 | - On June 7, 2024, the company issued **2 million shares** at **$44.50 per share**, generating gross proceeds of **$89.0 million**[69](index=69&type=chunk) - The Board of Directors declared an irregular cash dividend of **$1.00 per share** on April 25, 2024, totaling **$40.6 million**, which was paid on May 29, 2024[67](index=67&type=chunk) - As of June 30, 2024, the company has a commitment of **$98.4 million** for the construction of a newbuilding VLGC/AC and **$2.5 million** for scrubbers and other vessel upgrades[85](index=85&type=chunk)[86](index=86&type=chunk) - Subsequent to the quarter end, on July 24, 2024, the Board declared another irregular cash dividend of **$1.00 per share**, totaling **$42.6 million**, payable in August 2024[90](index=90&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=31&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management reports a 2.5% increase in total revenues to $114.4 million for the quarter ended June 30, 2024, compared to the prior year, driven by a larger fleet size, although this was partially offset by lower fleet utilization (90.4% vs 98.0%). Average Time Charter Equivalent (TCE) rates per operating day increased to $55,228. Net income remained stable at $51.3 million. The company strengthened its liquidity with $84.5 million net proceeds from a common stock issuance and ended the quarter with $353.3 million in cash [Overview](index=31&type=section&id=Overview) - As of July 25, 2024, Dorian's fleet consists of **25 VLGCs** with an aggregate capacity of approximately **2.1 million cbm** and an average age of **7.9 years**[92](index=92&type=chunk) - The company is constructing a new **93,000 cbm VLGC/Ammonia Carrier**, expected for delivery in the **second calendar quarter of 2026**[92](index=92&type=chunk) - **Fifteen** of the company's ECO VLGCs are fitted with **scrubbers**, allowing them to burn less refined, cheaper fuel and potentially earn higher TCE rates[93](index=93&type=chunk) - As of July 25, 2024, **twenty-four** of the **twenty-five VLGCs** were employed in the Helios Pool, a commercial pool operated as a joint venture with MOL Energia[94](index=94&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Revenue Comparison (Three months ended June 30) | Revenue Type | 2024 | 2023 | Change (%) | | :--- | :--- | :--- | :--- | | **Net pool revenues—related party** | $109,407,054 | $104,386,551 | 4.8% | | **Time charter revenues** | $3,414,351 | $6,423,472 | (46.8)% | | **Total Revenues** | $114,353,042 | $111,562,907 | 2.5% | - The **2.5% increase in revenue** was primarily due to an increase in fleet size, partially offset by a reduction in fleet utilization from **98.0% in Q2 2023 to 90.4% in Q2 2024**[103](index=103&type=chunk) - Average TCE rates per operating day increased by **$4,072 to $55,228**, but TCE rates per available day slightly decreased to **$49,911 from $50,164** year-over-year[103](index=103&type=chunk) - Vessel operating expenses increased by **3.2% to $20.5 million**, or **$10,717 per vessel per calendar day**, mainly due to higher costs for spares, stores, and crew wages[104](index=104&type=chunk) - General and administrative expenses rose **13.1% to $10.4 million**, driven by increases in stock-based compensation and cash bonuses[105](index=105&type=chunk) [Operating Statistics and Reconciliation of GAAP to non-GAAP Measures](index=36&type=section&id=Operating%20Statistics%20and%20Reconciliation%20of%20GAAP%20to%20non-GAAP%20Measures) Key Operating Statistics (Three months ended June 30) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | **Available days** | 2,275 | 2,219 | | **Operating days** | 2,056 | 2,175 | | **Fleet utilization** | 90.4% | 98.0% | | **Time charter equivalent rate** | $55,228 | $51,156 | Reconciliation of Net Income to Adjusted EBITDA | (in U.S. dollars) | Three months ended June 30, 2024 | Three months ended June 30, 2023 | | :--- | :--- | :--- | | **Net income** | $51,288,140 | $51,721,137 | | Interest and finance costs | $9,518,430 | $10,403,849 | | Unrealized (gain)/loss on derivatives | $421,627 | ($2,859,274) | | Realized gain on interest rate swaps | ($1,717,249) | ($1,847,764) | | Stock-based compensation expense | $1,275,459 | $776,607 | | Depreciation and amortization | $17,170,986 | $16,655,317 | | **Adjusted EBITDA** | **$77,957,393** | **$74,849,872** | [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2024, the company had cash and cash equivalents of **$353.3 million**[117](index=117&type=chunk) - Primary sources of capital during the quarter were **$84.5 million in net proceeds** from a common stock issuance and **$41.2 million in cash from operations**[118](index=118&type=chunk)[121](index=121&type=chunk) - Total long-term debt, net of deferred financing fees, was **$592.1 million** as of June 30, 2024, with **$53.7 million** scheduled for repayment within the next twelve months[118](index=118&type=chunk) - The company paid an irregular cash dividend of **$1.00 per share**, totaling **$40.4 million**, on May 29, 2024[123](index=123&type=chunk) - As of June 30, 2024, the company had approximately **$98.4 million** in outstanding commitments for its newbuilding VLGC/AC[135](index=135&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company is exposed to interest rate risk from its long-term debt, a portion of which is tied to the Secured Overnight Financing Rate (SOFR). To mitigate this, the company has hedged $160 million of amortizing principal, representing 80% of the outstanding debt under its 2023 A&R Debt Facility. A hypothetical 20 basis point change in SOFR would impact annual interest expense on the unhedged portion by approximately $0.1 million - The company has hedged **$160 million** of amortizing principal under the 2023 A&R Debt Facility, covering **80%** of its outstanding balance, to mitigate interest rate risk from fluctuating SOFR[144](index=144&type=chunk) - A hypothetical **20 basis point (0.20%)** increase or decrease in SOFR would change the company's annual interest expense on its unhedged debt by approximately **$0.1 million**[144](index=144&type=chunk) [Controls and Procedures](index=46&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures as of June 30, 2024, concluding they are effective with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2024[145](index=145&type=chunk) - **No changes** were made during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[146](index=146&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=47&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is subject to legal proceedings and claims in the ordinary course of business but is not aware of any material claims that would require disclosure or provision in the financial statements - The company is **not aware of any material legal claims** that would require disclosure or the establishment of a provision in its financial statements[148](index=148&type=chunk) [Risk Factors](index=47&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section updates risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended March 31, 2024, with no new specific risks detailed in this quarterly report - The report refers to the risk factors detailed in the Annual Report on Form 10-K for the year ended March 31, 2024, indicating **no new material risk factors** are being introduced in this quarterly report[149](index=149&type=chunk) [Other Information](index=47&type=section&id=ITEM%205.%20OTHER%20INFORMATION) During the three months ended June 30, 2024, no director or officer of the company adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement - **No directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements** during the quarter[150](index=150&type=chunk)