STAMFORD, Conn., May 23, 2019 /PRNewswire/ -- Dorian LPG Ltd.
(NYSE: LPG) (the "Company" or "Dorian LPG"), a leading owner and
operator of modern very large gas carriers ("VLGCs"), today
reported its financial results for the three months and fiscal year
ended March 31, 2019.
Highlights for the Fourth Quarter Ended March 31, 2019
- Revenues of $34.5 million.
- Daily Time Charter Equivalent ("TCE")(1) rate for
our fleet of $18,883.
- Adjusted EBITDA(1) of $14.1
million.
- Net loss of $(16.0) million, or
$(0.29) loss per basic and diluted
share ("EPS"), and adjusted net loss(1) of $(12.0) million, or $(0.22) adjusted diluted loss per share
("adjusted EPS")(1).
- Time chartered-in the 2018-built Laurel Prime to our fleet with an expiration
during the first calendar quarter of 2020.
Highlights for the Fiscal Year Ended
March 31, 2019
- Revenues of $158.0 million.
- TCE(1) rate for our fleet of $21,746.
- Adjusted EBITDA(1) of $64.4
million, which includes $10.0
million of expenses related to the BW LPG proposal.
- Net loss of $(50.9) million, or
$(0.93) EPS, and adjusted net
loss(1) of $(43.1)
million, or $(0.79) adjusted
EPS(1), which also includes $10.0
million of expenses related to the BW LPG proposal, or
$(0.18) per diluted share.
(1) TCE, adjusted net loss, adjusted EPS and
adjusted EBITDA are non-GAAP measures. Refer to the reconciliation
of revenues to TCE, net loss to adjusted net loss, EPS to adjusted
EPS and net loss to adjusted EBITDA included later in this press
release.
John Hadjipateras, Chairman,
President and Chief Executive Officer of the Company, commented,
"We are encouraged by market improvements over the last two months,
which resulted in rates not seen since the start of 2016, we are
cautiously optimistic about a sustained improvement in rates as
North American LPG export capacity is forecast to grow considerably
over the next two years. We already have two ships which are fitted
with exhaust equipment and plan to have more than half our fleet
take advantage of the expected fuel price differentials. Our teams
have worked diligently over the last eighteen months to prepare for
the impending IMO 2020 changes and further enhance our fleet's
competitive position."
Fourth Quarter Fiscal Year 2019 Results Summary
Our net loss amounted to $(16.0)
million, or $(0.29) per share,
for the three months ended March 31, 2019, compared to a
net loss of $(3.5) million, or
$(0.06) per share, for the three
months ended March 31, 2018.
Our adjusted net loss amounted to $(12.0)
million, or $(0.22) per share
for the three months ended March 31, 2019, compared to
adjusted net loss of $(9.8) million,
or $(0.18) per share, for the three
months ended March 31, 2018. We have adjusted our net
loss for the three months ended March 31, 2019 for an
unrealized loss on derivative instruments of $3.9 million. Please refer to the reconciliation
of net loss to adjusted net loss, which appears later in this press
release.
The $2.2 million change in
adjusted net loss for the three months ended
March 31, 2019 compared to the three months ended
March 31, 2018 is primarily attributable to a reduction
in revenues of $4.6 million, a
$0.6 million increase in voyage
expenses, and the addition of $0.2
million in charter hire expenses from our chartered-in VLGC,
partially offset by a $1.4 million
increase in realized gain on derivatives, a $1.0 million decrease in general and
administrative expenses, and a 0.8 million decrease in interest and
finance costs.
The TCE rate for our fleet was $18,883 for the three months ended
March 31, 2019, a 23.5% decrease from the $24,695 TCE rate from the same period in the
prior year, primarily driven by relatively flat spot market rates
coupled with increased bunker prices. Please see footnote 6 to the
table in "—Financial Information" below for other information
related to how we calculate TCE. Total fleet utilization (including
the utilization of our vessels deployed in the Helios Pool)
increased from 79.2% in the quarter ended March 31, 2018
to 90.2% in the quarter ended March 31, 2019.
Vessel operating expenses per day increased to $8,104 during the three months ended
March 31, 2019 from $8,027
in the same period in the prior year. Please see "Vessel Operating
Expenses" below for more information.
Revenues
Revenues of $34.5 million for the
three months ended March 31, 2019, including net pool
revenues—related party, voyage charters, time charters and other
revenues earned by our vessels, decreased $4.6 million, or 11.7%, from $39.0 million for the three months ended
March 31, 2018. The decrease is primarily attributable to
a reduction in TCE rates partially offset by an increase in
utilization from 79.2% for the three months ended March 31, 2018 to 90.2% for the three months
ended March 31, 2019. The reduction
in TCE rates from $24,695 during the
three months ended March 31, 2018 to
$18,883 during the three months ended
March 31, 2019 was primarily driven
by relatively flat spot market rates coupled with increased bunker
prices.
Voyage Expenses
Voyage expenses were $0.9 million
during the three months ended March 31, 2019, an increase
of $0.6 million, or 180.4%, from
$0.3 million for the three months
ended March 31, 2018. Voyage expenses are all expenses
unique to a particular voyage, including bunker fuel consumption,
port expenses, canal fees, charter hire commissions, war risk
insurance and security costs. Voyage expenses are typically paid by
us under voyage charters, by the charterer under time charters, and
by the pool for our vessels chartered to the Helios Pool.
Accordingly, we mainly incur voyage expenses for voyage charters or
during repositioning voyages between time charters for which no
cargo is available or traveling to or from drydocking. The increase
in voyage expenses for the three months ended
March 31, 2019, when compared to the three months ended
March 31, 2018, was mainly attributable to an increase in
bunker expenses.
Vessel Operating Expenses
Vessel operating expenses were $16.0
million during the three months ended
March 31, 2019, or $8,104
per vessel per calendar day, which is calculated by dividing vessel
operating expenses by calendar days for the relevant time period
for the vessels that were in our fleet, increasing slightly
by $0.1 million, or 1.0%, from $15.9
million, or $8,027 per vessel
per calendar day, for the three months ended
March 31, 2018. The increase in vessel operating expenses
was primarily the result of a $0.2
million, or $124 per vessel
per calendar day, increase in spares, stores, and repairs and
maintenance costs, partially offset by a reduction of crew wages
and related costs of $0.1 million, or
$73 per vessel per calendar day.
General and Administrative Expenses
General and administrative expenses were $5.7 million for the three months ended
March 31, 2019, a decrease of $1.0
million, or 15.4%, from $6.7
million for the three months ended March 31, 2018.
The decrease was mainly due to a $0.5
million decrease in professional and legal fees unrelated to
the BW Proposal, a $0.5 million
financial advisory fee during the three months ended March 31, 2018 that did not recur during the
three months ended March 31, 2019,
and a $0.3 million decrease in
salaries, wages and benefits, partially offset by an increase of
$0.1 million in stock-based
compensation and an increase of $0.2
million in other general and administrative expenses.
Interest and Finance Costs
Interest and finance costs amounted to $10.1 million for the three months ended
March 31, 2019, a decrease of $0.8
million, or 7.1%, from $10.9
million for the three months ended March 31, 2018.
The decrease of $0.8 million during
the three months ended March 31, 2019
was mainly due to a reduction of $2.2
million in amortization of deferred financing fees primarily
resulting from the accelerated amortization of deferred financing
fees from the refinancings of the Concorde and
Corvette during the three months ended March 31, 2018, along with a decrease of
$0.1 million in loan expenses.
Partially offsetting the reductions was an increase of $1.5 million in interest incurred on our
long-term debt, primarily resulting from an increase in LIBOR,
partially offset by a decrease in average indebtedness. Average
indebtedness, excluding deferred financing fees, decreased from
$764.4 million for the three months
ended March 31, 2018 to $723.8 million for the three months ended
March 31, 2019. As of March 31, 2019, the outstanding balance of our
long-term debt, excluding deferred financing fees, was $710.1 million.
Unrealized Gain/(Loss) on Derivatives
Unrealized loss on derivatives amounted to approximately
$3.9 million for the three months
ended March 31, 2019, compared to a gain of $6.4 million for the three months ended
March 31, 2018. The unfavorable $10.3 million change is attributable to changes
in the fair value of our interest rate swaps caused by changes in
forward LIBOR yield curves and reductions in notional amounts.
Realized Gain on Derivatives
Realized gain on derivatives amounted to approximately
$1.3 million for the three months
ended March 31, 2019, compared to a realized gain on
derivatives of $0.1 million for the
three months ended March 31, 2018. The favorable
$1.2 million change is attributable
to increases in floating LIBOR resulting in realized gains on
interest rate swaps related to the $758
million debt financing facility that we entered into in
March 2015 (the "2015 Debt
Facility").
Fiscal Year 2019 Results Summary
Our net loss amounted to $(50.9)
million, or $(0.93) per share,
for the year ended March 31, 2019, compared to a net loss
of $(20.4) million, or $(0.38) per share, for the year ended
March 31, 2018.
Our adjusted net loss amounted to $(43.1)
million, or $(0.79) per share,
for the year ended March 31, 2019, compared to an
adjusted net loss of $(32.9) million,
or $(0.62) per share, for the year
ended March 31, 2018. We have adjusted our net loss for
the year ended March 31, 2019 for unrealized losses on
derivative instruments of $7.8
million. We have adjusted our net loss for the year ended
March 31, 2018 for unrealized gains on derivatives of
$8.4 million and gain on early
extinguishment of debt of $4.1
million. Please refer to the reconciliation of net loss to
adjusted net loss, which appears later in this press release.
The unfavorable change of $10.2
million in adjusted net loss for the year ended
March 31, 2019 compared to the year ended
March 31, 2018 is primarily attributable to professional
and legal fees related to the BW Proposal (defined below) of
$10.0 million, a $4.9 million increase in interest and finance
costs, a $2.6 million increase in
vessel operating expenses, and a reduction in revenues of
$1.3 million, partially offset by a
favorable $5.1 million change in
realized gain/(loss) on derivatives, a $1.8
million decrease in general and administrative expenses, a
$1.4 million increase in interest
income, and a $0.5 million decrease
in voyage expenses.
The TCE rate for our fleet was $21,746 for the year ended
March 31, 2019, a slight 1.0% decrease from the
$21,966 TCE rate from the prior year,
reflecting continued subdued market conditions. Please see footnote
6 to the table in "—Financial Information" below for other
information related to how we calculate TCE. Total fleet
utilization (including the utilization of our vessels deployed in
the Helios Pool) increased from 89.1% in the year ended
March 31, 2018 to 89.9% in the year ended
March 31, 2019.
Vessel operating expenses per day decreased to $8,329 in the year ended March 31, 2019
from $8,009 in the prior year. Please
see "Vessel Operating Expenses" below for more information.
Revenues
Revenues, which represent net pool revenues—related party, time
charters, voyage charters and other revenues earned by our vessels,
were $158.0 million for the year
ended March 31, 2019, a decrease of
$1.3 million, or 0.8%, from
$159.3 million for the year ended
March 31, 2018. TCE rates of
$21,746 for the year ended
March 31, 2019 decreased from
$21,966 for the year ended
March 31, 2018. During the year ended
March 31, 2018, the board of the
Helios Pool approved a reallocation of pool profits in accordance
with the pool participation agreements. This reallocation resulted
in a $260 increase in our fleet's
overall TCE rates for the year ended March
31, 2018 due mainly to favorable speed and consumption
performance of our VLGCs operating in the Helios Pool compared to
other VLGCs operating in the Helios Pool. Excluding this
reallocation, TCE rates increased slightly by $40 when comparing the year ended March 31, 2019 with the year ended March 31, 2018. The increased spot market rate
was partially offset by increased bunker costs and other voyage
expenses, which are deducted from gross revenues when calculating
TCE rates. The Baltic Exchange Liquid Petroleum Gas Index, an index
published daily by the Baltic Exchange for the spot market rate for
the benchmark Ras Tanura-Chiba route (expressed as U.S. dollars per
metric ton), averaged $34.702 during
the year ended March 31, 2018
compared to an average of $27.455 for
the year ended March 31, 2018. The
increase in net pool revenues—related party was primarily due to
the increased spot market rate and an additional vessel being
redelivered off time charter and into the Helios Pool in the year
ended March 31, 2019. The decrease in
time charter revenues during the year ended March 31, 2019 compared to the year ended
March 31, 2018 was primarily due to
the expiration of a time charter and subsequent redelivery into the
Helios Pool in the year ended March 31,
2019.
Voyage Expenses
Voyage expenses were $1.7 million
during the year ended March 31, 2019,
a decrease of $0.5 million, or 23.3%,
from $2.2 million for the year ended
March 31, 2018. Voyage expenses are
all expenses unique to a particular voyage, including bunker fuel
consumption, port expenses, canal fees, charter hire commissions,
war risk insurance and security costs. Voyage expenses are
typically paid by us under voyage charters, by the charterer under
time charters, and by the pool for our vessels chartered to the
Helios Pool. Accordingly, we mainly incur voyage expenses for
voyage charters or during repositioning voyages between time
charters for which no cargo is available or traveling to or from
drydocking. The decrease for the year ended March 31, 2019 when compared to the year ended
March 31, 2018 was mainly
attributable to a reduction in port charges and other related
expenses.
Vessel Operating Expenses
Vessel operating expenses were $66.9
million during the year ended March
31, 2019, or $8,329 per vessel
per calendar day, which is calculated by dividing vessel operating
expenses by calendar days for the relevant time period for the
vessels that were in our fleet. This was an increase of
$2.6 million, or 4.0%, from
$64.3 million, or $8,009 per vessel per calendar day, for the year
ended March 31, 2018. The increase in
vessel operating expenses was primarily the result of a
$3.5 million, or $431 per vessel per calendar day, increase in
spares, stores, and repairs and maintenance costs, and a
$0.3 million purchase of coolant for
one of our VLGCs coming off drydock in July
2018, resulting in an increase of $40 per vessel per calendar day. Partially
offsetting the increases was a reduction of crew wages and related
costs of $1.2 million, or
$144 per vessel per calendar day.
Professional and Legal Fees Related to the BW
Proposal
BW LPG Limited and its affiliates ("BW") made an unsolicited
proposal to acquire all of our outstanding common stock and
commenced a proxy contest to replace three members of our board of
directors with nominees proposed by BW. BW's unsolicited proposal
and proxy contest were subsequently withdrawn on October 8, 2018 (the "BW Proposal"). Professional
and legal fees related to the BW Proposal were $10.0 million for the year ended March 31, 2019.
General and Administrative Expenses
General and administrative expenses were $24.4 million for the year ended March 31, 2019, a decrease of $1.8 million, or 6.7%, from $26.2 million for the year ended March 31, 2018. The decrease was mainly due to a
$1.5 million decrease in professional
and legal fees unrelated to the BW Proposal, and a $0.6 million decrease in salaries, wages and
benefits, partially offset by an increase of $0.3 million in stock-based compensation. The
decrease in salaries, wages and benefits was primarily due to
$0.4 million decrease in cash bonuses
to various employees during the year ended March 31, 2019 compared to the year ended
March 31, 2018.
Interest and Finance Costs
Interest and finance costs amounted to $40.6 million for the year ended March 31, 2019, an increase of $4.9 million from $35.7
million for the year ended March 31,
2018. The increase of $4.9
million during the year ended March
31, 2019 was mainly due to an increase of $9.2 million in interest incurred on our
long-term debt, primarily resulting from (i) an increase in LIBOR,
(ii) an increase in margin on the $97.0
million bridge loan agreement with DNB Capital LLC (the
"2017 Bridge Loan"), that we repaid in June
2018, and (iii) the fixed interest rates on the refinancings
of the Corsair, Concorde, Corvette, Captain
John NP, Captain Markos NL, and Captain Nicholas ML, during the year ended
March 31, 2019 being higher than
floating rates on our long-term debt during the year ended
March 31, 2018, partially offset by a
decrease in average indebtedness. Average indebtedness, excluding
deferred financing fees, decreased from $754.1 million for the year ended March 31, 2018 to $747.2
million for the year ended March 31,
2019. As of March 31, 2019,
the outstanding balance of our long-term debt, excluding deferred
financing fees, was $710.1 million.
Partially offsetting the increases was a reduction of $4.4 million in amortization of deferred
financing fees primarily resulting from the accelerated
amortization of deferred financing fees from the refinancings of
the Corsair, Concorde, and Corvette during the
year ended March 31, 2018, along with
the amortization of the 2017 Bridge Loan deferred financing fees
that did not recur during the year ended March 31, 2019.
Unrealized Gain/(Loss) on Derivatives
Unrealized loss on derivatives amounted to approximately
$7.8 million for the year ended
March 31, 2019 compared to an
unrealized gain of $8.4 million for
the year ended March 31, 2018. The
unfavorable $16.2 million change is
attributable to changes in the fair value of our interest rate
swaps caused by changes in forward LIBOR yield curves and
reductions in notional amounts.
Realized Gain/(Loss) on Derivatives
Realized gain/(loss) on derivatives amounted to a realized gain
of approximately $3.8 million for the
year ended March 31, 2019, compared
to a realized loss of $1.3 million
for the year ended March 31, 2018.
The favorable $5.1 million change is
attributable to increases in floating LIBOR resulting in realized
gains on interest rate swaps related to the 2015 Debt Facility.
Gain on early extinguishment of debt
Gain on early extinguishment of debt amounted to $4.1 million for the year ended March 31, 2018 and was attributable to the
repayment of our bank debt provided by Royal Bank of Scotland plc. associated with each of the
Captain John NP, Captain
Markos NL and the Captain
Nicholas ML. There was no gain
on early extinguishment of debt for the year ended March 31, 2019.
Fleet
The following table sets forth certain information regarding our
fleet as of May 17, 2019. We classify
vessel employment as either Time Charter, Pool or Pool-TCO.
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Capacity
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Sister
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ECO
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Charter
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(Cbm)
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Shipyard
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Ships
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Year Built
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Vessel(1)
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Employment
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Expiration(2)
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Dorian
VLGCs
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Captain Markos
NL(3)
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82,000
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Hyundai
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A
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2006
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—
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Time
Charter(5)
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Q4 2019
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Captain John
NP(3)
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82,000
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Hyundai
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A
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2007
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—
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Pool-TCO(6)
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Q1 2020
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Captain Nicholas
ML(3)
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82,000
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Hyundai
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A
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2008
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—
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Pool(7)
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—
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Comet
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84,000
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Hyundai
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B
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2014
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X
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Time
Charter(8)
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Q3 2019
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Corsair(3)
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84,000
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Hyundai
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B
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2014
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X
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Pool(7)
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—
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Corvette(3)(4)
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84,000
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Hyundai
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B
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2015
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X
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Pool(7)
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—
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Cougar
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84,000
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Hyundai
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B
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2015
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X
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Pool(7)
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—
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Concorde(3)(4)
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84,000
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Hyundai
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B
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2015
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X
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Time
Charter(9)
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Q1 2020
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Cobra
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84,000
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Hyundai
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B
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2015
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X
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Pool(7)
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—
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Continental
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84,000
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Hyundai
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B
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2015
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X
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Pool(7)
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—
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Constitution
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84,000
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Hyundai
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B
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2015
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X
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Pool(7)
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—
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Commodore
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84,000
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Hyundai
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B
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2015
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X
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Pool(7)
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—
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Cresques
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84,000
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Daewoo
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C
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2015
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X
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Pool(7)
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—
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Constellation
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84,000
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Hyundai
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B
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2015
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X
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Pool(7)
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—
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Cheyenne
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84,000
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Hyundai
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B
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2015
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X
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Pool-TCO(6)
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Q2 2019
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Clermont
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84,000
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Hyundai
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B
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2015
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X
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Pool(7)
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—
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Cratis
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84,000
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Daewoo
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C
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2015
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X
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Pool(7)
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—
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Chaparral
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84,000
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Hyundai
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B
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2015
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X
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Pool-TCO(6)
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Q4 2019
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Copernicus
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84,000
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Daewoo
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C
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2015
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X
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Pool(7)
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—
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Commander
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84,000
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Hyundai
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B
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2015
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X
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Time
Charter(10)
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Q4 2020
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Challenger
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84,000
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Hyundai
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B
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2015
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X
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Pool(7)
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—
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Caravelle
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84,000
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Hyundai
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B
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2016
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X
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Pool(7)
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—
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Total
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1,842,000
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Time chartered-in
VLGC
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Laurel
Prime(11)
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83,305
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Mitsubishi
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2018
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X
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Pool(7)
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—
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________________________
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(1)
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Represents vessels
with very low revolutions per minute, long‑stroke, electronically
controlled engines, larger propellers, advanced
hull design, and low friction paint.
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(2)
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Represents calendar
year quarters.
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(3)
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Operated pursuant to
a bareboat chartering agreement.
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(4)
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VLGC fitted with
scrubber.
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(5)
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Currently on time
charter with an oil major that began in December 2014.
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(6)
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"Pool-TCO" indicates
that the vessel is operated in the Helios Pool on a time charter
out to a third party and receives as charter hire a
portion of the net revenues of the pool calculated according to a
formula based on the vessel's pro rata performance in the
pool.
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(7)
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"Pool" indicates that
the vessel operates in the Helios Pool on voyage charters with
third parties and receives as charter hire a portion of
the net revenues of the pool calculated according to a formula
based on the vessel's pro rata performance in the pool.
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(8)
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Currently on a time
charter with an oil major that began in July 2014.
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(9)
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Currently on a time
charter with a major oil company that began in March
2019.
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(10)
|
Currently on a time
charter with a major oil company that began in November
2015.
|
(11)
|
Currently time
chartered-in to our fleet with an expiration during the first
calendar quarter of 2020.
|
Market Outlook Update
Bolstered by additional volumes out of Marcus Hook in the northeast U.S. due to the
startup of the Mariner East 2 pipeline, U.S. exports reached their
highest levels for the first calendar quarter of 2019 in January
with over 3 million metric tons of LPG exported during the month.
However, significant reductions in U.S. exports were seen during
the rest of the first calendar quarter of 2019 due to closure
events in the Houston ship
channel. Additionally, there was tightness in the East due to a
reduction in Middle Eastern supply related to OPEC production cuts
and U.S. sanctions on Iran. This
created a strong arbitrage between the West and East, particularly
towards the end of the first calendar quarter of 2019. Despite
continued U.S.-China tariffs being
in place for LPG, the Far East remained the primary destination for
U.S. exports.
On the demand side, a new PDH facility started in China (Zhejiang Satellite No. 2), which
created additional propane demand in the East. PDH margins in the
Far East came under pressure in the first calendar quarter of 2019,
however, with propylene prices falling and feedstock price
remaining strong due to supply issues in Middle East and U.S. during parts of the
quarter. This trend was most notable in March 2019 and early April. In Europe and Asia, propane and butane have generally been
more economical feedstocks than naphtha so far this year. However,
cracker shutdowns and U.S. supply constraints have limited imports
for steam cracking somewhat. Overall, as the first quarter
progressed, additional western supply helped widen the
propane-naphtha spread in NW
Europe from approximately $49/metric ton in January to $95/metric ton in March. In the East, this
difference was less pronounced with many of the cargoes exported at
the end of the quarter out of the U.S. not arriving until the
second calendar quarter of 2019.
Elsewhere in Asia, India saw a strong first quarter of 2019 in
terms of imports with levels hitting 1.4 million metric tons in
February. It has been suggested that with upcoming elections and
the end of the Indian financial year, many importers were
increasing their volumes to the domestic subsidized market.
For the first calendar quarter, the Baltic Index averaged
$30 per metric ton. The Baltic VLGC
Index declined from $36 per metric
ton in the fourth calendar quarter of 2018, stabilizing at near
$25 per metric ton in February before
rising in March to end the month at $41 per metric ton, representing the high for the
quarter. For the second calendar quarter to date, the Baltic Index
has averaged $56 per metric ton.
The VLGC orderbook stands at around 14% of the current global
fleet. An additional 38 VLGCs, equivalent to around 3.1 million cbm
of carrying capacity, will be added to the global fleet by calendar
year-end 2021. The average age of the global fleet is now
approximately nine years old.
The above summary is based on data derived from industry
sources, and there can be no assurances that such trends will
continue or that anticipated developments in freight rates, export
volumes, the VLGC orderbook or other market indicators will
materialize.
Seasonality
Liquefied gases are primarily used for industrial and domestic
heating, as a chemical and refinery feedstock, as a transportation
fuel and in agriculture. The LPG shipping market historically has
been stronger in the spring and summer months in anticipation of
increased consumption of propane and butane for heating during the
winter months. In addition, unpredictable weather patterns in these
months tend to disrupt vessel scheduling and the supply of certain
commodities. Demand for our vessels therefore may be stronger in
the quarters ending June 30 and
September 30 and relatively weaker
during the quarters ending December
31 and March 31, although
12-month time charter rates tend to smooth these short-term
fluctuations and recent LPG shipping market activity has not
yielded the expected seasonal results. To the extent any of our
time charters expire during the typically weaker fiscal quarters
ending December 31 and March 31, it may not be possible to re-charter
our vessels at similar rates. As a result, we may have to accept
lower rates or experience off-hire time for our vessels, which may
adversely impact our business, financial condition and operating
results.
Financial Information
The following table presents our selected financial data and
other information for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Year
ended
|
|
(in U.S. dollars, except fleet data)
|
|
March 31, 2019
|
|
March 31, 2018
|
|
|
March 31, 2019
|
|
March 31, 2018
|
|
Statement of
Operations Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
34,467,366
|
|
$
|
39,034,678
|
|
|
$
|
158,032,485
|
|
$
|
159,334,760
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
.
|
|
|
.
|
|
Voyage
expenses
|
|
|
875,265
|
|
|
312,170
|
|
|
|
1,697,883
|
|
|
2,213,773
|
|
Charter hire
expenses
|
|
|
237,525
|
|
|
—
|
|
|
|
237,525
|
|
|
—
|
|
Vessel operating
expenses
|
|
|
16,046,204
|
|
|
15,892,536
|
|
|
|
66,880,568
|
|
|
64,312,644
|
|
Depreciation and
amortization
|
|
|
16,068,079
|
|
|
16,105,764
|
|
|
|
65,201,151
|
|
|
65,329,951
|
|
General and
administrative expenses
|
|
|
5,665,250
|
|
|
6,694,250
|
|
|
|
24,434,246
|
|
|
26,186,332
|
|
Professional and legal
fees related to the
BW Proposal
|
|
|
2,311
|
|
|
—
|
|
|
|
10,022,747
|
|
|
—
|
|
Total
expenses
|
|
|
38,894,634
|
|
|
39,004,720
|
|
|
|
168,474,120
|
|
|
158,042,700
|
|
Other income—related
parties
|
|
|
635,817
|
|
|
643,489
|
|
|
|
2,479,599
|
|
|
2,549,325
|
|
Operating
income/(loss)
|
|
|
(3,791,451)
|
|
|
673,447
|
|
|
|
(7,962,036)
|
|
|
3,841,385
|
|
Other
income/(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and finance
costs
|
|
|
(10,122,260)
|
|
|
(10,894,624)
|
|
|
|
(40,649,231)
|
|
|
(35,658,045)
|
|
Interest
income
|
|
|
428,817
|
|
|
292,571
|
|
|
|
1,755,259
|
|
|
440,059
|
|
Unrealized
gain/(loss) on derivatives
|
|
|
(3,906,211)
|
|
|
6,368,402
|
|
|
|
(7,816,401)
|
|
|
8,421,531
|
|
Realized gain/(loss)
on derivatives
|
|
|
1,293,291
|
|
|
89,838
|
|
|
|
3,788,123
|
|
|
(1,328,886)
|
|
Gain on early
extinguishment of debt
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
4,117,364
|
|
Other loss,
net
|
|
|
144,239
|
|
|
4,371
|
|
|
|
(61,619)
|
|
|
(234,094)
|
|
Total other
income/(expenses), net
|
|
|
(12,162,124)
|
|
|
(4,139,442)
|
|
|
|
(42,983,869)
|
|
|
(24,242,071)
|
|
Net loss
|
|
$
|
(15,953,575)
|
|
$
|
(3,465,995)
|
|
|
$
|
(50,945,905)
|
|
$
|
(20,400,686)
|
|
Loss per common
share—basic and diluted
|
|
|
(0.29)
|
|
|
(0.06)
|
|
|
|
(0.93)
|
|
|
(0.38)
|
|
Other Financial
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
|
14,138,194
|
|
$
|
18,237,423
|
|
|
$
|
64,408,989
|
|
$
|
74,515,790
|
|
Fleet
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calendar
days(2)
|
|
|
1,980
|
|
|
1,980
|
|
|
|
8,030
|
|
|
8,030
|
|
Time chartered-in
days(3)
|
|
|
10
|
|
|
—
|
|
|
|
10
|
|
|
—
|
|
Available
days(4)
|
|
|
1,972
|
|
|
1,980
|
|
|
|
7,997
|
|
|
8,028
|
|
Operating
days(5)(8)
|
|
|
1,779
|
|
|
1,568
|
|
|
|
7,189
|
|
|
7,153
|
|
Fleet
utilization(6)(8)
|
|
|
90.2
|
%
|
|
79.2
|
%
|
|
|
89.9
|
%
|
|
89.1
|
%
|
Average Daily
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time charter
equivalent rate(7)(8)
|
|
$
|
18,883
|
|
$
|
24,695
|
|
|
$
|
21,746
|
|
$
|
21,966
|
|
Daily vessel
operating expenses(9)
|
|
$
|
8,104
|
|
$
|
8,027
|
|
|
$
|
8,329
|
|
$
|
8,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
As of
|
|
(in U.S. dollars)
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
March 31, 2018
|
|
Balance Sheet
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
|
|
|
$
|
30,838,684
|
|
$
|
103,505,676
|
|
Restricted
cash—non-current
|
|
|
|
|
|
|
|
|
|
35,633,962
|
|
|
25,862,704
|
|
Total
assets
|
|
|
|
|
|
|
|
|
|
1,625,370,017
|
|
|
1,736,110,156
|
|
Total debt including
current portion—net of deferred financing fees of $14.0 million and
$16.1 million as of March 31, 2019 and
March 31, 2018, respectively.
|
|
|
696,090,786
|
|
|
759,103,152
|
|
Total
liabilities
|
|
|
|
|
|
|
|
|
|
712,687,459
|
|
|
776,696,794
|
|
Total shareholders'
equity
|
|
|
|
|
|
|
|
|
$
|
912,682,558
|
|
$
|
959,413,362
|
|
_______________________
|
(1)
|
Adjusted EBITDA is an
unaudited non-GAAP financial measure and represents net loss before
interest and finance costs, unrealized (gain)/loss on derivatives,
realized gain/(loss) on derivatives, gain on early extinguishment
of debt, stock-based compensation expense, impairment, and
depreciation and amortization and is used as a supplemental
financial measure by management to assess our financial and
operating performance. We believe that adjusted EBITDA assists our
management and investors by increasing the comparability of our
performance from period to period. This increased comparability is
achieved by excluding the potentially disparate effects between
periods of derivatives, interest and finance costs, gain on early
extinguishment of debt, stock-based compensation expense,
impairment, and depreciation and amortization expense, which items
are affected by various and possibly changing financing methods,
capital structure and historical cost basis and which items may
significantly affect net loss between periods. We believe that
including adjusted EBITDA as a financial and operating measure
benefits investors in selecting between investing in us and other
investment alternatives.
|
|
|
|
Adjusted EBITDA has
certain limitations in use and should not be considered an
alternative to net loss, operating loss, cash flow from operating
activities or any other measure of financial performance presented
in accordance with GAAP. Adjusted EBITDA excludes some, but not
all, items that affect net loss. Adjusted EBITDA as presented below
may not be computed consistently with similarly titled measures of
other companies and, therefore, might not be comparable with other
companies.
|
The following table
sets forth a reconciliation of net loss to Adjusted EBITDA
(unaudited) for the periods presented:
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
(in U.S. dollars)
|
|
March 31, 2019
|
|
March 31, 2018
|
|
March 31, 2019
|
|
March 31, 2018
|
|
Net loss
|
|
$
|
(15,953,575)
|
|
$
|
(3,465,995)
|
|
$
|
(50,945,905)
|
|
$
|
(20,400,686)
|
|
Interest and finance
costs
|
|
|
10,122,260
|
|
|
10,894,624
|
|
|
40,649,231
|
|
|
35,658,045
|
|
Unrealized
(gain)/loss on derivatives
|
|
|
3,906,211
|
|
|
(6,368,402)
|
|
|
7,816,401
|
|
|
(8,421,531)
|
|
Realized (gain)/loss
on derivatives
|
|
|
(1,293,291)
|
|
|
(89,838)
|
|
|
(3,788,123)
|
|
|
1,328,886
|
|
Gain on early
extinguishment of debt
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,117,364)
|
|
Stock-based
compensation expense
|
|
|
1,288,510
|
|
|
1,161,270
|
|
|
5,476,234
|
|
|
5,138,489
|
|
Depreciation and
amortization
|
|
|
16,068,079
|
|
|
16,105,764
|
|
|
65,201,151
|
|
|
65,329,951
|
|
Adjusted
EBITDA
|
|
$
|
14,138,194
|
|
$
|
18,237,423
|
|
$
|
64,408,989
|
|
$
|
74,515,790
|
|
|
(2)
|
We define calendar
days as the total number of days in a period during which vessels
that were both commercially and technically managed were in our
fleet. Calendar days are an indicator of the size of the fleet over
a period and affect both the amount of revenues and the amount of
expenses that are recorded during that period.
|
|
|
(3)
|
We define time
chartered-in days as the aggregate number of days in a period
during which we time chartered-in vessels.
|
|
|
(4)
|
We define available
days as the sum of calendar days and time chartered-in days
(collectively representing our commercially-managed vessels) less
aggregate off hire days associated with scheduled maintenance,
which include major repairs, drydockings, vessel upgrades or
special or intermediate surveys. We use available days to measure
the aggregate number of days in a period that our vessels should be
capable of generating revenues.
|
|
|
(5)
|
We define operating
days as available days less the aggregate number of days that the
commercially-managed vessels in our fleet are off‑hire for any
reason other than scheduled maintenance. We use operating days to
measure the number of days in a period that our operating vessels
are on hire (refer to 8 below).
|
|
|
(6)
|
We calculate fleet
utilization by dividing the number of operating days during a
period by the number of available days during that period. An
increase in non-scheduled off hire days would reduce our operating
days, and, therefore, our fleet utilization. We use fleet
utilization to measure our ability to efficiently find suitable
employment for our vessels.
|
|
|
(7)
|
TCE rate is a
non-GAAP measure of the average daily revenue performance of a
vessel. TCE rate is a shipping industry performance measure used
primarily to compare period‑to‑period changes in a shipping
company's performance despite changes in the mix of charter types
(such as time charters, voyage charters) under which the vessels
may be employed between the periods. Our method of calculating TCE
rate is to divide revenue net of voyage expenses by operating days
for the relevant time period, which may not be calculated the same
by other companies.
|
The following table
sets forth a reconciliation of revenues to TCE rate (unaudited) for
the periods presented:
|
|
|
|
Three months
ended
|
|
|
Year
ended
|
|
(in U.S. dollars,
except operating days)
|
|
March 31, 2019
|
|
March 31, 2018
|
|
|
March 31, 2019
|
|
March 31, 2018
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
34,467,366
|
|
$
|
39,034,678
|
|
|
$
|
158,032,485
|
|
$
|
159,334,760
|
|
Voyage
expenses
|
|
|
(875,265)
|
|
|
(312,170)
|
|
|
|
(1,697,883)
|
|
|
(2,213,773)
|
|
Time charter
equivalent
|
|
$
|
33,592,101
|
|
$
|
38,722,508
|
|
|
$
|
156,334,602
|
|
$
|
157,120,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pool
adjustment*
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(1,857,575)
|
|
Time charter
equivalent excluding pool
adjustment*
|
|
$
|
33,592,101
|
|
$
|
38,722,508
|
|
|
$
|
156,334,602
|
|
$
|
155,263,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
days
|
|
|
1,779
|
|
|
1,568
|
|
|
|
7,189
|
|
|
7,153
|
|
TCE
rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time charter
equivalent rate
|
|
$
|
18,883
|
|
$
|
24,695
|
|
|
$
|
21,746
|
|
$
|
21,966
|
|
TCE rate excluding
pool adjustment*
|
|
$
|
18,883
|
|
$
|
24,695
|
|
|
$
|
21,746
|
|
$
|
21,706
|
|
|
|
|
|
|
* TCE rate adjusted
for the effect of a reallocation of pool profits in accordance with
the pool participation agreement due to favorable
speed and consumption performance for our vessels operating in the
Helios Pool.
|
|
|
(8)
|
We determine
operating days for each vessel based on the underlying vessel
employment, including our vessels in the Helios Pool, or
Our Methodology. If we were to calculate operating days for each
vessel within the Helios Pool as a variable rate time charter,
or
Alternate Methodology, our operating days and fleet utilization
would be increased with a corresponding reduction to our TCE
rate.
Operating data using both methodologies since the inception of the
Helios Pool is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Year
ended
|
|
|
|
March 31, 2019
|
|
|
March 31, 2018
|
|
|
March 31, 2019
|
|
|
March 31, 2018
|
|
|
Company
Methodology:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Days
|
|
1,779
|
|
|
|
1,568
|
|
|
|
7,189
|
|
|
|
7,153
|
|
|
Fleet
Utilization
|
|
90.2
|
%
|
|
|
79.2
|
%
|
|
|
89.9
|
%
|
|
|
89.1
|
%
|
|
Time charter
equivalent
|
$
|
18,883
|
|
|
$
|
24,695
|
|
|
$
|
21,746
|
|
|
$
|
21,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alternate
Methodology:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Days
|
|
1,968
|
|
|
|
1,980
|
|
|
|
7,991
|
|
|
|
8,028
|
|
|
Fleet
Utilization
|
|
99.8
|
%
|
|
|
100.0
|
%
|
|
|
99.9
|
%
|
|
|
100.0
|
%
|
|
Time charter
equivalent
|
$
|
17,069
|
|
|
$
|
22,303
|
|
|
$
|
19,564
|
|
|
$
|
19,572
|
|
|
|
|
|
|
|
We believe that our
methodology using the underlying vessel employment provides more
meaningful insight into market
conditions and the performance of our vessels.
|
|
|
(9)
|
Daily vessel
operating expenses are calculated by dividing vessel operating
expenses by calendar days for the relevant time period.
|
In addition to the results of operations presented in accordance
with GAAP, we provide adjusted net loss and adjusted EPS. We
believe that adjusted net loss and adjusted EPS are useful to
investors in understanding our underlying performance and business
trends. Adjusted net loss and adjusted EPS are not a
measurement of financial performance or liquidity under GAAP;
therefore, these non-GAAP financial measures should not be
considered as an alternative or substitute for GAAP. The following
table reconciles net loss and EPS to adjusted net loss and adjusted
EPS, respectively, for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Year
ended
|
|
(in U.S. dollars,
except share data)
|
|
March 31, 2019
|
|
March 31, 2018
|
|
|
March 31, 2019
|
|
March 31, 2018
|
|
Net loss
|
|
$
|
(15,953,575)
|
|
$
|
(3,465,995)
|
|
|
$
|
(50,945,905)
|
|
$
|
(20,400,686)
|
|
Unrealized
(gain)/loss on derivatives
|
|
|
3,906,211
|
|
|
(6,368,402)
|
|
|
|
7,816,401
|
|
|
(8,421,531)
|
|
Gain on early
extinguishment of debt
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(4,117,364)
|
|
Adjusted net
loss
|
|
$
|
(12,047,364)
|
|
$
|
(9,834,397)
|
|
|
$
|
(43,129,504)
|
|
$
|
(32,939,581)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common
share—diluted
|
|
$
|
(0.29)
|
|
$
|
(0.06)
|
|
|
$
|
(0.93)
|
|
$
|
(0.38)
|
|
Unrealized
(gain)/loss on derivatives
|
|
|
0.07
|
|
|
(0.12)
|
|
|
|
0.14
|
|
|
(0.16)
|
|
Gain on early
extinguishment of debt
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(0.08)
|
|
Adjusted loss per
common share—diluted
|
|
$
|
(0.22)
|
|
$
|
(0.18)
|
|
|
$
|
(0.79)
|
|
$
|
(0.62)
|
|
Conference Call
A conference call to discuss the results will be held today,
May 23, 2019 at 10:00 a.m. ET. The conference call can be
accessed live by dialing 1-877-407-9716, or for international
callers, 1-201-493-6779, and request to be joined into the Dorian
LPG call. A replay will be available at 1:00
p.m. ET the same day and can be accessed by dialing
1-844-512-2921, or for international callers, 1-412-317-6671. The
pass code for the replay is 13691099. The replay will be available
until May 30, 2019, at 11:59 p.m. ET.
A live webcast of the conference call will also be available
under the investor relations section at www.dorianlpg.com.
About Dorian LPG Ltd.
Dorian LPG is a liquefied petroleum gas shipping company and a
leading owner and operator of modern VLGCs. Dorian LPG's fleet
currently consists of twenty-three modern VLGCs. Dorian LPG has
offices in Stamford, Connecticut,
USA; London, United Kingdom;
Copenhagen, Denmark; and
Athens, Greece.
Forward-Looking Statements
This press release contains "forward-looking statements."
Statements that are predictive in nature, that depend upon or refer
to future events or conditions, or that include words such as
"expects," "anticipates," "intends," "plans," "believes,"
"estimates," "projects," "forecasts," "may," "will," "should" and
similar expressions are forward-looking statements. These
statements are not historical facts but instead represent only the
Company's belief regarding future results, many of which, by their
nature are inherently uncertain and outside of the Company's
control. Actual results may differ, possibly materially, from those
anticipated in these forward-looking statements. For more
information about risks and uncertainties associated with Dorian
LPG's business, please refer to the "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and
"Risk Factors" sections of Dorian LPG's SEC filings, including, but
not limited to, its annual report on Form 10-K and quarterly
reports on Form 10-Q. The Company does not assume any obligation to
update the information contained in this press release.
Contact Information
Ted Young; Chief Financial
Officer: Tel.: +1 (203) 674-9900 or IR@dorianlpg.com
Source: Dorian LPG Ltd.
View original
content:http://www.prnewswire.com/news-releases/dorian-lpg-ltd-announces-fourth-quarter-and-full-fiscal-year-2019-financial-results-300855562.html
SOURCE Dorian LPG Ltd.