Dorian LPG(US:LPG)2025-05-22 15:00Financial Data and Key Metrics Changes - The company reported $317 million in free cash as of March 31, 2025, an increase from the previous quarter [10] - Cash flow from operations more than doubled from $24 million to $50.3 million quarter over quarter [10] - The reported adjusted EBITDA for the quarter was $36.6 million [16] Business Line Data and Key Metrics Changes - The Helios Pool earned a TCE per day of $29,800 for its spot and COA voyage in March, reflecting a challenging LPG product environment [13] - Dorian's reported TCE revenue per available day was about $35,300, slightly lower than the prior quarter [14] - Daily operating expenses for the quarter were $11,000, excluding dry docking expenses, which was an increase from the prior quarter [15] Market Data and Key Metrics Changes - U.S. LPG production hit a quarterly record of 5 million tons, despite a drop in exports from 5.6 million tons in January to 4.9 million in February [29] - The quarterly average spot earnings settled around $30,000 per day, reflecting a balanced market [26] - The market saw a significant drop in freight rates due to tariff announcements, with rates collapsing from approximately $40,000 a day [30] Company Strategy and Development Direction - The company is focused on energy efficiency and sustainability, with plans to upgrade vessels to carry ammonia cargo [41][42] - The board is balancing shareholder distributions, debt reduction, and fleet investment in light of market conditions [20] - The company anticipates a favorable supply-demand balance due to limited newbuilding deliveries and terminal capacity expansions [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of LPG demand, driven by growing petrochemical and residential consumption, particularly in Asia [8] - The company noted that recent rate fluctuations highlight the various factors affecting the business, including weather and global trade policies [19] - Management remains optimistic about the market outlook for 2025, expecting increased production and exports supported by terminal capacity expansions [36] Other Important Information - The company declared an irregular dividend of $0.50 per share, reflecting a commitment to returning capital to shareholders [6][11] - Total cash interest expense for the quarter was $6.7 million, down sequentially from the prior quarter [16] Q&A Session Summary Question: What is driving the recent strength in the VLGC market? - Management noted that trade flows have altered due to tariffs, with cargoes now going to India and Southeast Asia, contributing to ton miles [49][51] Question: Have there been any noticeable increases in inquiries from Chinese buyers post-trade talks? - Management indicated that while there has been a shift in trade routes, there hasn't been a significant increase in inquiries from Chinese buyers, as many are content to continue selling to India [57] Question: Is there a possibility of a higher dividend given the recent rate improvements? - Management stated that the board made the dividend decision based on the best information available at the time, and future evaluations will consider the improved rate outlook [59][60]