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Dorian LPG(LPG) - 2020 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a sevenfold increase in EBITDA compared to the previous year, reflecting a strong increase in market conditions [5] - The time charter equivalent (TCE) reported was $29,671 per day, nearly double that of the same quarter last year [5] - Total cash interest expense for the quarter was $7.7 million, down about $100,000 from the prior quarter [13] - Adjusted EBITDA for the quarter was $38.4 million, a significant increase from the previous quarter [12] Business Line Data and Key Metrics Changes - Total utilization for the quarter was 98.4%, with a TCE revenue per available day of about $29,200 [11] - Daily operating expenses (OpEx) for the quarter were $8,052, which is an improvement from the previous quarter's $8,104 [11] - General and administrative (G&A) expenses for the quarter totaled $6.7 million, with cash G&A around $5.4 million [11] Market Data and Key Metrics Changes - U.S. LPG exports year-to-date through July grew 22% to 22.5 million tons, while Middle East exports increased by 3.5% to 22.6 million tons [17] - U.S. propane inventories reached 18 million barrels, 21.4% higher than the previous year [18] - The EIA forecasts LPG market production increases due to new pipeline capacities, with expectations for further volume increases in the third quarter of 2019 [18] Company Strategy and Development Direction - The company is expanding and accelerating its scrubber installation and dry docking program, expecting to have all 10 newly-ordered scrubbers installed by the end of 2019 [9] - The company has designed its fleet to capitalize on the IMO 2020 regulations, with plans for more than half of its vessels to be equipped with scrubbers [21] - A stock buyback program has been approved by the Board, indicating a commitment to return value to shareholders [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market fundamentals, citing record U.S. production and potential growth in markets like Vietnam, Thailand, and the Philippines [6] - The company expects to generate approximately $76 million of free cash flow for the remaining nine months of the fiscal year at a realized fleet-wide TCE rate of $40,000 per day [10] - Management noted that cash flow and liquidity remain strong, with restricted and unrestricted cash increasing by about $9 million to over $65 million [14] Other Important Information - The company has been operating scrubbers since 2015, gaining experience in real-time scrubber equipment operations [21] - The average TCE of fixtures since the end of June is about $50,000 per day, indicating stronger numbers expected in upcoming quarters [6] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any inquiries from participants [24]