Dorian LPG(US:LPG)2023-02-01 21:18Financial Data and Key Metrics Changes - For Q3 2023, the company reported an EBITDA of $76.2 million, a significant increase from $46.2 million in the previous quarter, and net income reached $51.3 million, marking the second highest in corporate history [43][49] - The net debt-to-capitalization ratio was approximately 34% [43] - Cash balance increased from $129.8 million at December 31, 2022, to roughly $165 million by January 30, 2023 [10] Business Line Data and Key Metrics Changes - Total utilization for the quarter was 97.8%, with a daily TCE (Time Charter Equivalent) per operating day of $52,768, yielding a utilization-adjusted TCE of about $51,630 [22] - The Helios pool reported a spot TCE of approximately $57,000 per available day for the quarter [22] Market Data and Key Metrics Changes - U.S. LPG exports are projected to grow by 15.9% in 2023, up from an earlier estimate of 11.3% [9] - Global LPG exports increased by 4% in the last quarter and 6% for the year, primarily supported by North America [18] Company Strategy and Development Direction - The company is focused on capital allocation, balancing dividends and investments in scrubbers, which have shown good returns [46][65] - The company is committed to decarbonizing shipping and has invested in energy-saving devices and scrubbers to reduce emissions [19][58] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding cash flow generation in the coming months, despite external risks such as potential global recession and COVID-19 impacts in China [56][50] - The company is preparing for the 2023 IMO emission regulations and is focused on improving commercial performance [44][58] Other Important Information - The company has returned over $500 million to shareholders since its IPO, including a $1 irregular dividend announced for February 2023 [7][46] - The installed cost of new scrubbers is expected to be about two-thirds of the initial program costs, reflecting improved efficiency and installation processes [24][86] Q&A Session Summary Question: How should investors think about Dorian's use of cash in the near- to medium-term? - Management indicated that dividends and investments in scrubbers are viewed as equal priorities in capital allocation decisions [65] Question: What is driving the recent uptrend in the spot market? - The increase in demand due to cold weather in Asia and a lack of shipping length contributed to the recent market rebound [70] Question: How does the current order book compare to the existing fleet? - Management noted that while there are many new ships being delivered, the demand from the U.S. is expected to absorb a significant portion of this new capacity [100] Question: What routes are more indicative of VLGC trade? - The most active routes are U.S. Gulf to the Far East and U.S. Gulf to Europe, with the U.S. East being the most significant market [123]