Dorian LPG(US:LPG)2022-08-03 19:10Financial Data and Key Metrics Changes - As of June 30, 2022, the company reported $155.5 million in free cash and a debt balance of $663.7 million, with a debt-to-total book capitalization of 44% and a net debt to net total capitalization of 34% [19][26]. - The company achieved total utilization of 95.9% with a daily Time Charter Equivalent (TCE) revenue of $39,608, yielding a utilization-adjusted TCE of about $37,986 [27]. - The reported adjusted EBITDA for the quarter was $46.9 million, with total cash interest expense for the quarter at $6.5 million [30][31]. Business Line Data and Key Metrics Changes - The Helios Pool reported a spot TCE of approximately $40,165 per available day for the quarter, reflecting strong performance in the LPG transport sector [28]. - Daily operating expenses (OpEx) were $9,378, remaining virtually flat compared to the previous quarter, with crew costs trending downward [29]. Market Data and Key Metrics Changes - Global LPG exports increased by 2.6 million tons, or about 5%, in the first six months of 2022 compared to the same period last year, with the Middle East contributing significantly to this growth [10]. - North American LPG exports continued to rise, supported by record-setting production levels, while Middle East export volumes also showed growth [35]. Company Strategy and Development Direction - The company is focused on optimizing fleet performance through in-house expertise and has invested in scrubbers to improve fuel efficiency and reduce emissions [13][14][51]. - A $1 per share dividend was declared, reflecting the company's commitment to shareholder returns while balancing capital allocation strategies [17][33]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from the war in Ukraine and COVID-19-related port closures but emphasized effective interdepartmental coordination to manage these issues [9]. - The company remains cautiously optimistic about cash flow generation in the coming months, supported by a solid freight market backdrop [33]. Other Important Information - The company has concluded a new $260 million loan agreement to refinance existing debt, which is expected to enhance financial flexibility [21][24]. - The average bunker fuel spread reached almost $400 per metric ton, providing significant savings for the company [46]. Q&A Session Summary Question: Thoughts on capital allocation and potential for regular dividends - Management discussed the current approach to dividends, emphasizing a focus on total shareholder return rather than a fixed payout ratio due to the volatility in shipping [62][66]. Question: Company's positioning in the market over the next 18 months - Management highlighted the expected supply growth from the U.S. and the Middle East, indicating that these factors would support the market despite the influx of new vessels [68][70].