Dorian LPG(LPG)2025-05-22 15:02Financial Data and Key Metrics Changes - The company reported free cash of $317 million 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, with total cash interest expense down sequentially to $6.7 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, 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 [28] - The quarterly exports were the highest on record for Q1, marking the third highest overall per quarter [28] - Freight rates experienced significant volatility, with earnings on modern non-scrubber vessels dropping from high $40,000s to low $20,000s before rebounding to mid to high $40,000s by the end of the quarter [25] Company Strategy and Development Direction - The company is focused on energy efficiency and sustainability, with plans to convert some VLGCs to carry ammonia [8][40] - The board is balancing shareholder distributions, debt reduction, and fleet investment while monitoring market conditions [19] - The company anticipates a favorable supply-demand balance due to limited newbuilding deliveries and strong production [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of LPG demand, driven by growing consumption in Asia and infrastructure expansions in the U.S. [8] - The recent tariff announcements and trade dynamics have created a complex operating environment, but the company remains optimistic about market recovery [18][35] - The board considers current earnings, cash forecasts, and future investment needs when determining dividend levels [18] Other Important Information - The company declared an irregular dividend of $0.50 per share, reflecting a commitment to returning capital to shareholders [6][11] - The company has returned approximately $875 million in cash through dividends and repurchases since its IPO [11] - The company plans to drydock eight vessels in the current fiscal year, budgeting approximately $12 million for this purpose [17] Q&A Session Summary Question: What is driving the recent strength in the VLGC market? - Management noted that trade flows have shifted due to tariffs, with cargoes moving from the U.S. to India and Southeast Asia, contributing to ton miles and maintaining demand [46][48] Question: Have there been any noticeable changes in inquiries or fixtures from Chinese buyers? - 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 with current arrangements [52][54] 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 available information at the time, and future evaluations will consider the improved rate outlook [56][57]