Dorian LPG(US:LPG)2024-02-01 19:17Financial Data and Key Metrics Changes - The company reported a record average TCE of $76,337 per operating day with a total utilization of 93.6%, yielding an adjusted TCE of about $71,431, marking the best result in the company's history [50][86] - The trailing 12-month net income was approximately $304 million, resulting in a 33.4% return on shareholders' equity, reflecting strong profitability [53] - The company declared a $1 per share dividend, bringing total dividends paid to $11.50 per share or nearly $465 million in aggregate since the IPO [87] Business Line Data and Key Metrics Changes - The Helios Pool achieved a spot TCE of $91,417 per day, the highest spot rate the pool has ever earned for a quarter [84] - The company has 5 vessels on time charter within the pool, indicating spot exposure of about 75% to 80% for the 27 vessels in the Helios Pool [66] Market Data and Key Metrics Changes - The company noted that U.S. inventory levels remain very high, which is expected to stabilize pricing as the worst coal season passes [11] - The market has seen a significant increase in LPG supply due to warm winter conditions, impacting U.S. export prices [70] Company Strategy and Development Direction - The company is focused on long-term solutions for decarbonization and has invested in scrubbers, with average daily net savings of about $3,000 per day from scrubber-fitted vessels [96] - The company is evaluating opportunities to upgrade existing ships to carry ammonia, with costs expected to be significantly less than $5 million when amortized over multiple ships [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the medium- to long-term prospects for the business despite acknowledging short-term volatility [76] - The company anticipates that the congestion in the Panama Canal will return to normal levels, which will positively impact operations [76] Other Important Information - The company has a strong cash position with an unrestricted cash balance of $215 million as of January 31, 2024 [82] - The company is committed to sustainability and has invested in technologies aimed at reducing carbon and methane emissions [99][100] Q&A Session Summary Question: Guidance on bookings to date - Management confirmed bookings in excess of 100,000 for over 60% of the quarter [2] Question: Factors driving the pullback in rates - Management noted that the market is currently at a lower point than last year, with expectations for a turnaround as the market stabilizes [6][23] Question: Impact of Red Sea tensions on VLGC trade - Management indicated that the impact is complex and difficult to predict due to ongoing geopolitical tensions [26] Question: Cost of upgrading vessels for ammonia - Management stated that the cost is expected to be significantly less than $5 million when amortized over multiple ships [30] Question: Current spot rates and cash breakeven levels - Management acknowledged that current spot rates are below cash breakeven levels, reflecting the volatility in the market [34]