Dorian LPG(LPG) - 2023 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS Presents unaudited condensed consolidated financial statements and detailed notes, covering balance sheets, statements of operations, shareholders' equity, and cash flows Unaudited Condensed Consolidated Balance Sheets Total assets decreased from $1,607.4 million to $1,488.5 million, primarily due to reduced cash and cash equivalents, with corresponding decreases in liabilities and shareholders' equity Balance Sheet Metrics | Metric | September 30, 2022 | March 31, 2022 | | :--------------------------------- | :------------------- | :------------------- | | Cash and cash equivalents | $141,286,758 | $236,758,927 | | Total current assets | $208,248,057 | $307,893,252 | | Total assets | $1,488,464,327 | $1,607,362,093 | | Total current liabilities | $70,997,268 | $94,837,094 | | Total liabilities | $663,094,867 | $687,210,678 | | Total shareholders' equity | $825,369,460 | $920,151,415 | Unaudited Condensed Consolidated Statements of Operations Net income significantly increased for both the three and six months ended September 30, 2022, driven by higher revenues and improved derivative performance Statements of Operations (USD) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 6 Months Ended Sep 30, 2022 | 6 Months Ended Sep 30, 2021 | | :----------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total revenues | $75,968,187 | $63,086,858 | $152,791,909 | $126,037,596 | | Total expenses | $48,394,109 | $48,018,145 | $96,862,629 | $98,345,883 | | Operating income | $28,137,816 | $19,115,310 | $57,084,820 | $32,371,198 | | Net income | $20,311,465 | $14,101,803 | $45,159,185 | $19,970,903 | | EPS—basic | $0.51 | $0.35 | $1.13 | $0.49 | Unaudited Condensed Consolidated Statements of Shareholders' Equity Shareholders' equity decreased from $920.2 million to $825.4 million, primarily due to significant dividend payments, partially offset by net income and stock-based compensation Statements of Shareholders' Equity (USD) | Metric | Balance, April 1, 2022 | Balance, September 30, 2022 | | :-------------------------- | :--------------------- | :-------------------------- | | Common stock | $513,217 | $515,783 | | Additional paid-in-capital | $760,105,994 | $762,502,628 | | Treasury stock | $(121,226,936) | $(122,896,838) | | Retained earnings | $280,759,140 | $185,247,887 | | Total shareholders' equity | $920,151,415 | $825,369,460 | | Net income for the period | $24,847,720 | $20,311,465 | | Dividend | $(100,337,605) | $(40,332,833) | | Stock-based compensation | $658,872 | $1,740,328 | | Purchase of treasury stock | $(971,067) | $(698,835) | Unaudited Condensed Consolidated Statements of Cash Flows Operating cash flow increased, while investing activities shifted to a net use, and financing activities saw a substantial increase in cash used due to debt repayments and dividend distributions Statements of Cash Flows (USD) | Metric | 6 Months Ended Sep 30, 2022 | 6 Months Ended Sep 30, 2021 | | :------------------------------------------ | :-------------------------- | :-------------------------- | | Net cash provided by operating activities | $83,273,877 | $73,690,163 | | Net cash provided by/(used in) investing activities | $(9,073,359) | $32,202,436 | | Net cash used in financing activities | $(169,130,423) | $(87,054,846) | | Net increase/(decrease) in cash, cash equivalents, and restricted cash | $(95,480,303) | $18,774,638 | Notes to Unaudited Condensed Consolidated Financial Statements The notes provide detailed disclosures on the company's operations, financial instruments, debt, leases, and other significant accounting matters 1. Basis of Presentation and General Information Dorian LPG Ltd. operates 22 VLGCs, including 19 ECO-design vessels, with in-house management and Helios Pool participation - Dorian LPG Ltd. operates 22 VLGCs, including 19 fuel-efficient 84,000 cbm ECO-design VLGCs, one 82,000 cbm VLGC, and two time chartered-in ECO-VLGCs as of September 30, 2022[27] - Thirteen of the ECO-VLGCs, including one time chartered-in vessel, are equipped with exhaust gas cleaning systems (scrubbers) to reduce sulfur emissions[27] - The company provides in-house commercial management for all vessels and technical management for owned vessels, including those in the Helios Pool[27] 2. Significant Accounting Policies The company's interim financial statements adhere to the same accounting policies as its audited consolidated financial statements for the year ended March 31, 2022 - The company's interim financial statements adhere to the same accounting policies as its audited consolidated financial statements for the year ended March 31, 2022[37] - The adoption of ASU No. 2020-04, 'Reference Rate Reform (Topic 848),' is expected to have an immaterial effect on the financial statements[38] 3. Transactions with Related Parties The company engages in transactions with DHSA and is a 50% joint venture partner in the Helios LPG Pool, with net receivables of $74.4 million from the pool - Dorian LPG (USA) LLC and its subsidiaries earned less than $0.1 million in 'Other income-related parties' from DHSA for chartering and marine operation services for both the three and six months ended September 30, 2022 and 2021[40] - As of September 30, 2022, Dorian had net receivables from the Helios Pool of $74.4 million, including $22.0 million of working capital[44] - The Helios Pool operated 23 VLGCs as of September 30, 2022, comprising 20 vessels from Dorian's fleet (including two time chartered-in) and three Phoenix vessels[43] 4. Deferred Charges, Net Deferred charges, primarily drydocking costs, decreased from $9.8 million to $8.5 million due to amortization exceeding new additions Deferred Charges, Net | Metric | April 1, 2022 | September 30, 2022 | | :----------- | :------------ | :----------------- | | Balance | $9,839,000 | $8,451,664 | | Additions | | $18,719 | | Amortization | | $(1,406,055) | 5. Vessels, Net The net book value of vessels decreased to $1,208.1 million due to depreciation, with most vessels mortgaged as collateral for long-term debt Vessels, Net | Metric | April 1, 2022 | September 30, 2022 | | :------------------- | :------------ | :----------------- | | Cost | $1,638,075,4