Dorian LPG(LPG)2025-01-30 23:31Revenue Performance - Total revenues for the three months ended December 31, 2024, were 82.4 million, or 50.5%, from 277.5 million, a decrease of 419.3 million for the same period in 2023[117]. TCE Rates - Average TCE rates declined by 71,938 in Q4 2023 to 20,541 per available day, from 41,178 in 2024[117]. Market Conditions - The Baltic Exchange Liquid Petroleum Gas Index averaged 132.773 in Q4 2023, indicating a significant drop in spot market rates[110]. Operating Expenses - Vessel operating expenses increased by 21.4 million in Q4 2024, resulting in an average of 1.5 million or 2.4% to 10,392 to 7.5 million for Q4 2024, a decrease of 7.7 million in Q4 2023[112]. - General and administrative expenses rose by 34.3 million for the nine months ended December 31, 2024, driven by increases in stock-based compensation and cash bonuses[119]. Financial Costs - Interest and finance costs decreased by 8.9 million in Q4 2024, primarily due to a reduction in average indebtedness[113]. - Interest and finance costs decreased by 27.8 million for the nine months ended December 31, 2024, due to a reduction in average indebtedness[120]. - Interest income increased to 2.9 million in Q4 2023, attributed to higher average cash balances[114]. - Interest income increased by 12.0 million for the nine months ended December 31, 2024, attributed to higher average cash balances[121]. Derivatives and Unrealized Gains/Losses - Unrealized gain on derivatives amounted to 6.1 million in Q4 2023, reflecting a favorable change in the fair value of interest rate swaps[115]. - Unrealized loss on derivatives increased by 3.1 million for the nine months ended December 31, 2024, primarily due to unfavorable changes in interest rate swaps[122]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2024, were 122.8 million in cash from operations, a decrease of 234.2 million for the same period in 2023[146]. - Net cash used in financing activities for the nine months ended December 31, 2024, was 164.5 million in the same period in 2023[149]. - The company anticipates satisfying its liquidity needs for at least the next twelve months through cash on hand, cash from operations, and potential drawdowns on its revolving credit facility[135]. Debt and Financing - The outstanding balance of long-term debt as of December 31, 2024, was 53.9 million scheduled for repayment within the next twelve months[134]. - The company issued 2 million shares at 84.4 million after underwriting discounts and commissions[139]. - The company expects to finance future acquisitions through internally generated funds, public or private debt financings, or equity securities[145]. Future Commitments and Investments - The company has approximately 11.9 million made in January 2025[103]. Industry Context - The LPG shipping industry is capital intensive, requiring significant investments in vessels, upgrades, and maintenance[166]. Hedging and Interest Rate Exposure - As of December 31, 2024, the company has hedged 152.0 million of amortizing principal under the 2023 A&R Debt Facility, representing 80% of the outstanding indebtedness[166]. - A hypothetical increase or decrease of 20 basis points in SOFR rates would result in a change of 0.1 million in interest expense on all non-hedged interest-bearing debt[166]. - The company has entered into interest rate swap agreements to hedge exposure to fluctuations in interest rates associated with its debt financing[166]. - Increased interest rates could adversely impact future earnings due to additional interest expense on the unhedged portion of the debt[166]. Environmental Compliance - The company has installed scrubbers on fifteen vessels to comply with emissions regulations, with ongoing costs included in drydocking and survey expenses[154].