Dorian LPG(US:LPG)2025-11-05 22:34Revenue and Earnings - For the three months ended September 30, 2025, total revenues increased by 50.5% to $124.1 million from $82.4 million in the same period of 2024, primarily due to higher average TCE rates rising by $16,715 per available day[106]. - Total revenues for the six months ended September 30, 2025, were $208.3 million, an increase of $11.5 million or 5.8% from $196.8 million in 2024, driven by higher average TCE rates[114]. TCE Rates - The average TCE rate for the three months ended September 30, 2025, was $53,725, compared to $37,010 for the same period in 2024, driven by higher spot rates and lower bunker prices[106]. - Average TCE rates rose by $3,347 per available day, from $43,705 in 2024 to $47,052 in 2025, attributed to higher spot rates and lower bunker prices[114]. Expenses - Vessel operating expenses increased by 5.8% to $20.7 million for the three months ended September 30, 2025, with a per vessel cost of $10,705 per calendar day[107]. - Vessel operating expenses increased to $42.6 million for the six months ended September 30, 2025, up 6.4% from $40.0 million in 2024, resulting in an increase of $670 per vessel per calendar day[117]. - General and administrative expenses decreased by 27.0% to $12.0 million for the three months ended September 30, 2025, down from $16.5 million in the same period of 2024[108]. - General and administrative expenses rose to $28.9 million for the six months ended September 30, 2025, a 7.6% increase from $26.9 million in 2024, primarily due to higher cash bonuses[118]. - Interest and finance costs decreased by 19.5% to $7.6 million for the three months ended September 30, 2025, compared to $9.4 million in the same period of 2024[110]. - Interest and finance costs decreased to $15.3 million for the six months ended September 30, 2025, down 19.2% from $19.0 million in 2024, mainly due to reduced interest on long-term debt[119]. Cash Flow and Liquidity - Net cash provided by operating activities for the six months ended September 30, 2025 was $47.2 million, a decrease of $51.4 million compared to $98.6 million for the same period in 2024[144]. - Net cash used in investing activities was $16.3 million for the six months ended September 30, 2025, compared to $1.0 million for the same period in 2024, primarily for vessel construction[146]. - Net cash used in financing activities was $79.7 million for the six months ended September 30, 2025, which included dividend payments of $47.6 million and long-term debt repayments of $27.4 million[148]. - The company anticipates satisfying its liquidity needs for at least the next twelve months with cash on hand and cash from operations, and may seek additional liquidity through debt or equity financing[136]. Dividends and Share Repurchase - An irregular cash dividend of $0.65 per share was declared, totaling $27.8 million, payable on or about December 2, 2025[102]. - The company declared an irregular cash dividend of $0.65 per share totaling $27.8 million, payable on or about December 2, 2025[140]. - The company repurchased 261,500 shares for an aggregate consideration of $5.6 million under the 2022 Common Share Repurchase Authority as of September 30, 2025[137]. Fleet and Operations - The fleet consists of 27 VLGCs with an aggregate carrying capacity of approximately 2.3 million cbm and an average age of 9.0 years as of October 31, 2025[97]. - Available days for the fleet increased from 2,207 for the three months ended September 30, 2024, to 2,290 for the same period in 2025[106]. - Available days for the fleet declined from 4,467 in 2024 to 4,376 in 2025, primarily due to an increase in the number of vessels drydocked[116]. - The company has a contractual commitment to install a scrubber on a newbuilding VLGC/AC, expected to be completed during fiscal year 2026[98]. - The company has installed scrubbers on fifteen vessels to comply with emissions regulations, with ongoing costs included in drydocking expenses[152]. - The company plans to continue considering strategic opportunities for growth, including the acquisition or charter-in of additional vessels[143]. Financial Position - As of September 30, 2025, the company had cash and cash equivalents of $268.3 million and long-term debt of $526.4 million, with $54.2 million due within the next twelve months[134][135]. - The company has commitments of approximately $74.4 million under newbuilding contracts for a VLGC/AC expected to be delivered in the second quarter of 2026[153]. Market and Industry - The Baltic Exchange Liquid Petroleum Gas Index averaged $81.320 during the three months ended September 30, 2025, compared to $52.049 in the same period of 2024[106]. - The LPG shipping industry is capital intensive, requiring significant investments primarily through long-term debt[162]. - As of September 30, 2025, the company has hedged $140.0 million of amortizing principal under the 2023 A&R Debt Facility, representing 80% of the outstanding indebtedness[162]. - 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[162]. Derivatives and Unrealized Loss - Interest income decreased to $3.0 million for the three months ended September 30, 2025, down from $4.5 million for the same period in 2024, a decline of 33.3%[111]. - Unrealized loss on derivatives improved to $0.4 million for the three months ended September 30, 2025, compared to a loss of $5.6 million for the same period in 2024, a difference of $5.2 million[112]. - Adjusted EBITDA for the six months ended September 30, 2025, was $124.3 million, slightly up from $124.1 million in 2024[126].