STAMFORD, Conn., Oct. 31, 2019 /PRNewswire/ -- Dorian LPG Ltd.
(NYSE: LPG) (the "Company," "Dorian LPG," "we," and "our"), a
leading owner and operator of modern very large gas carriers
("VLGCs"), today reported its financial results for the three and
six months ended September 30, 2019.
Highlights for the Second Quarter Fiscal Year 2020
- Revenues of $91.6 million and
Time Charter Equivalent ("TCE")(1) rate for our fleet of
$47,623 for the three months ended
September 30, 2019, compared to revenues of $40.8 million and TCE rate of $20,973 for the three months ended
September 30, 2018.
- Net income of $40.7 million, or
$0.74 earnings per diluted share
("EPS"), and adjusted net income(1) of $41.4 million, or $0.75 adjusted earnings per diluted share
("adjusted EPS"),(1) for the three months ended
September 30, 2019.
- Adjusted EBITDA(1) of $67.3
million for the three months ended
September 30, 2019.
- Completed the installation of exhaust gas cleaning systems
(commonly referred to as "scrubbers") on the Comet and the
Corsair(2)
- Repurchased $6.2 million of
shares of our common stock under the $50
million stock repurchase program our Board of Directors
authorized on August 5, 2019.
(1)
|
TCE, adjusted net
income, adjusted EPS and adjusted EBITDA are non-U.S. GAAP
measures. Refer to the reconciliation of revenues to TCE, net
income to adjusted net income, EPS to adjusted EPS and net income
to adjusted EBITDA included in this press release under the heading
"Financial Information."
|
(2)
|
Comet left
drydock on October 11, 2019.
|
John C. Hadjipateras, Chairman,
President and Chief Executive Officer of the Company, commented,
"In this quarter, our EBITDA was 75% higher and our realized TCE
rate was 60% higher compared to our fiscal year 2020 first quarter.
Expansion of U.S. export capacity and increasing demand in
Asia from both the domestic and
petchem sectors continue to have a positive impact on freight
rates, and our market outlook remains positive. We now own four
scrubber-equipped ships and expect a further five within the next
three months. I am confident that the professionalism of our people
and the quality of our ships will earn good returns for our
shareholders."
Second Quarter Fiscal Year 2020 Results Summary
Net income amounted to $40.7
million, or $0.74 per diluted
share, for the three months ended September 30, 2019,
compared to a net loss of $(8.2)
million, or $(0.15) per
diluted share, for the three months ended
September 30, 2018.
Adjusted net income amounted to $41.4
million, or $0.75 per diluted
share, for the three months ended September 30, 2019,
compared to an adjusted net loss of $(9.2)
million, or $(0.17) per
diluted share, for the three months ended
September 30, 2018. Net income for the three months ended
September 30, 2019 is adjusted to exclude an unrealized
loss on derivative instruments of $0.7
million. Please refer to the reconciliation of net
income/(loss) to adjusted net income/(loss), which appears later in
this press release.
The $50.6 million increase in
adjusted net income/(loss) for the three months ended
September 30, 2019, compared to the three months ended
September 30, 2018, is primarily attributable (i) to an
increase of $50.8 million in
revenues, (ii) professional and legal fees related to the BW
Proposal (defined below) of $1.8
million that did not recur, and (iii) a decrease of
$0.9 million in interest and finance
costs partially offset by (iv) increases of $2.1 million in charter hire expenses and
$0.5 million in voyage expenses, and
(v) a decrease of $0.3 million in
other income—related parties.
The TCE rate for our fleet was $47,623 for the three months ended
September 30, 2019, a 127.1% increase from a TCE rate of
$20,973 from the same period in the
prior year, primarily driven by increased spot market rates along
with a reduction of bunker prices. Please see footnote 6 to the
table in "Financial Information" below for information related to
how we calculate TCE. Total fleet utilization (including the
utilization of our vessels deployed in the Helios Pool) decreased
from 95.8% in the quarter ended September 30, 2018 to
92.9% in the quarter ended September 30, 2019.
Vessel operating expenses per day remained relatively flat at
$8,594 for the three months ended
September 30, 2019 compared to $8,585 in the same period in the prior year.
Please see "Vessel Operating Expenses" below for more
information.
Revenues
Revenues, which represent net pool revenues—related party, time
charters and other revenues earned by our vessels, were
$91.6 million for the three months
ended September 30, 2019, an increase
of $50.8 million, or 124.5%, from
$40.8 million for the three months
ended September 30, 2018. The
increase is primarily attributable to an increase in average TCE
rates, partially offset by fleet utilization. Average TCE rates
increased from $20,973 for the three
months ended September 30, 2018 to
$47,623 for the three months ended
September 30, 2019, primarily as a
result of higher spot market rates during the three months ended
September 30, 2019 as compared to the
three months ended September 30, 2018
along with a reduction in bunker prices. 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 $65.991 during the three
months ended September 30, 2019
compared to an average of $40.245 for
the three months ended September 30,
2018. The average price of heavy fuel oil (expressed as U.S.
dollars per metric tonnes) from Singapore and Fujairah decreased from $467 during the three months ended September 30, 2018 to $417 during the three months ended September 30, 2019. Our fleet utilization
decreased from 95.8% during the three months ended September 30, 2018 to 92.9% during the three
months ended September 30, 2019.
Charter Hire Expenses
Charter hire expenses for the vessel that we charter in from a
third party were $2.1 million for the
three months ended September 30,
2019. No such costs were incurred during the three months
ended September 30, 2018.
Vessel Operating Expenses
Vessel operating expenses were $17.4
million during the three months ended September 30, 2019, or $8,594 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 relatively flat when compared to the three months
ended September 30, 2018 as vessel
operating expenses per vessel per calendar day increased by
$9 from $8,585 for the three months ended September 30, 2018 to $8,594 for the three months ended September 30, 2019.
General and Administrative Expenses
General and administrative expenses were $5.9 million for the three months ended
September 30, 2019, an increase of
$0.2 million, or 3.6%, from
$5.7 million for the three months
ended September 30, 2018. This
increase was due to a shift in the timing of approvals in cash
bonuses to certain employees during the current period compared to
the prior year period and resulted in an increase of $0.9 million in cash bonuses. This increase was
partially offset by reductions of $0.4
million in stock-based compensation and $0.3 million in other general and administrative
expenses.
Professional and Legal Fees Related to the BW
Proposal
In 2018, BW LPG Limited and its affiliates ("BW") made an
unsolicited proposal to acquire all of our outstanding common
shares and, along with its affiliates, 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 (including investment
banking fees) and legal fees related to the BW Proposal were
$1.8 million for the three months
ended September 30, 2018. No such
costs were incurred during the three months ended September 30, 2019.
Interest and Finance Costs
Interest and finance costs amounted to $9.3 million for the three months ended
September 30, 2019, a decrease of
$0.9 million, or 8.4%, from
$10.2 million for the three months
ended September 30, 2018. The
decrease of $0.9 million during this
period was due to a decrease of $0.8
million in interest incurred on our long-term debt,
primarily resulting from a decrease in average indebtedness, and a
reduction of $0.1 million in
amortization of deferred financing fees. Average indebtedness,
excluding deferred financing fees, decreased from $756.1 million for the three months ended
September 30, 2018 to $692.0 million for the three months ended
September 30, 2019. As of
September 30, 2019, the outstanding
balance of our long-term debt, net of deferred financing fees of
$12.6 million, was $665.5 million.
Unrealized Gain/(Loss) on Derivatives
Unrealized loss on derivatives was approximately $0.7 million for the three months ended
September 30, 2019, compared to an
unrealized gain of $1.1 million for
the three months ended September 30,
2018. The $1.8 million
difference is attributable to a decrease of $2.7 million in the fair value of our interest
rate swaps caused by changes in forward LIBOR yield curves and
reductions in notional amounts, and is partially offset by
$0.9 million of unrealized gains on
our freight forward agreement positions.
Fleet
|
|
The following table
sets forth certain information regarding our fleet as of October
25, 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capacity
|
|
|
|
Sister
|
|
|
|
ECO
|
|
|
|
Charter
|
|
|
|
(Cbm)
|
|
Shipyard
|
|
Ships
|
|
Year Built
|
|
Vessel(1)
|
|
Employment
|
|
Expiration(2)
|
|
Dorian
VLGCs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Captain Markos
NL(3)
|
|
82,000
|
|
Hyundai
|
|
A
|
|
2006
|
|
—
|
|
Time
Charter(6)
|
|
Q4 2019
|
|
Captain John
NP(3)
|
|
82,000
|
|
Hyundai
|
|
A
|
|
2007
|
|
—
|
|
Pool-TCO(7)
|
|
Q1 2020
|
|
Captain Nicholas
ML(3)
|
|
82,000
|
|
Hyundai
|
|
A
|
|
2008
|
|
—
|
|
Pool(8)
|
|
—
|
|
Comet(4)
|
|
84,000
|
|
Hyundai
|
|
B
|
|
2014
|
|
X
|
|
Pool-TCO(7)
|
|
Q4 2019
|
|
Corsair(3)(4)(5)
|
|
84,000
|
|
Hyundai
|
|
B
|
|
2014
|
|
X
|
|
Pool-TCO(7)
|
|
Q4 2019
|
|
Corvette(3)(4)
|
|
84,000
|
|
Hyundai
|
|
B
|
|
2015
|
|
X
|
|
Pool(8)
|
|
—
|
|
Cougar
|
|
84,000
|
|
Hyundai
|
|
B
|
|
2015
|
|
X
|
|
Pool(8)
|
|
—
|
|
Concorde(3)(4)
|
|
84,000
|
|
Hyundai
|
|
B
|
|
2015
|
|
X
|
|
Time
Charter(9)
|
|
Q1 2022
|
|
Cobra
|
|
84,000
|
|
Hyundai
|
|
B
|
|
2015
|
|
X
|
|
Pool(8)
|
|
—
|
|
Continental
|
|
84,000
|
|
Hyundai
|
|
B
|
|
2015
|
|
X
|
|
Time
Charter(10)
|
|
Q4 2020
|
|
Constitution
|
|
84,000
|
|
Hyundai
|
|
B
|
|
2015
|
|
X
|
|
Pool(8)
|
|
—
|
|
Commodore
|
|
84,000
|
|
Hyundai
|
|
B
|
|
2015
|
|
X
|
|
Pool(8)
|
|
—
|
|
Cresques
|
|
84,000
|
|
Daewoo
|
|
C
|
|
2015
|
|
X
|
|
Pool(8)
|
|
—
|
|
Constellation
|
|
84,000
|
|
Hyundai
|
|
B
|
|
2015
|
|
X
|
|
Pool(8)
|
|
—
|
|
Cheyenne
|
|
84,000
|
|
Hyundai
|
|
B
|
|
2015
|
|
X
|
|
Pool(8)
|
|
—
|
|
Clermont
|
|
84,000
|
|
Hyundai
|
|
B
|
|
2015
|
|
X
|
|
Pool(8)
|
|
—
|
|
Cratis
|
|
84,000
|
|
Daewoo
|
|
C
|
|
2015
|
|
X
|
|
Pool(8)
|
|
—
|
|
Chaparral
|
|
84,000
|
|
Hyundai
|
|
B
|
|
2015
|
|
X
|
|
Pool-TCO(7)
|
|
Q4 2019
|
|
Copernicus
|
|
84,000
|
|
Daewoo
|
|
C
|
|
2015
|
|
X
|
|
Pool(8)
|
|
—
|
|
Commander
|
|
84,000
|
|
Hyundai
|
|
B
|
|
2015
|
|
X
|
|
Pool(8)
|
|
—
|
|
Challenger
|
|
84,000
|
|
Hyundai
|
|
B
|
|
2015
|
|
X
|
|
Pool-TCO(7)
|
|
Q4 2020
|
|
Caravelle
|
|
84,000
|
|
Hyundai
|
|
B
|
|
2016
|
|
X
|
|
Pool(8)
|
|
—
|
|
Total
|
|
1,842,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time chartered-in
VLGC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Laurel
Prime(11)
|
|
83,305
|
|
Mitsubishi
|
|
|
|
2018
|
|
X
|
|
Pool(8)
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents vessels
with very low revolutions per minute, long‑stroke, electronically
controlled engines, larger propellers, advanced hull
design, and low friction paint.
|
(2)
|
Represents calendar
year quarters.
|
(3)
|
Operated pursuant to
a bareboat chartering agreement.
|
(4)
|
VLGC equipped with
scrubber.
|
(5)
|
Will begin a time
charter with an oil major during the three months ended December
31, 2019.
|
(6)
|
Currently on time
charter with an oil major that began in December 2014.
|
(7)
|
"Pool-TCO" indicates
that the vessel is operated in the Helios Pool on a time charter
out to a third party and we receive 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.
|
(8)
|
"Pool" indicates that
the vessel operates in the Helios Pool on a voyage charter with a
third party and we receive 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.
|
(9)
|
Currently on time
charter with a major oil company that began in March
2019.
|
(10)
|
Currently on a time
charter with a major oil company that began in November
2015.
|
(11)
|
Currently time
chartered-in with an expiration during the first calendar quarter
of 2020.
|
Market Outlook & Update
A favorable commodity price environment during the quarter
supported strong liquefied petroleum gas ("LPG") demand. LPG
prices remained soft compared to the second calendar quarter of
2019, as increased supply out of the U.S. offset increased
petrochemical demand, including new plants that opened during the
quarter. Mt. Belvieu propane prices fell from approximately 40% of
WTI in the second calendar quarter of 2019 to approximately 33% of
WTI in the third calendar quarter of 2019.
The third calendar quarter of 2019 also saw the establishment of
another two propane dehydrogenation units in China: Dongguan Grand Resource &
Technology conducted trial production at its 600,000-metric ton per
year PDH plant and Hengli Petrochemical (Dalian) started its single-train
dehydrogenation unit. Furthermore, SP Chemicals put into operation
its steam cracker, which utilizes both propane and ethane as
feedstock. With the continuation of U.S.-Chinese tariffs, the
Middle East region remains the
major supplier of LPG.
Demand also increased in South
Korea as Hanwha Total and LG Chem both restarted production
at their steam crackers after they underwent maintenance. The steam
crackers have been expanded to increase their consumption of
propane.
In the western hemisphere, the U.S. continued to export high
levels of LPG at close to export capacity. Approximately 10.3
million metric tons of LPG were exported in the third calendar
quarter of 2019, similar to the level observed in the prior
calendar quarter. Monthly exports year to date are now observed
averaging over 3.2 million metric tons per month.
Furthermore, the third calendar quarter of 2019 saw LPG exports
continuing to ramp up from Australia and Canada. Australia saw an increase in LPG exports of
approximately 150,000 metric tons compared to the previous quarter,
according to ship tracking. In Canada, a full quarter of the new AltaGas
Prince Rupert terminal resulted in approximately 256,000 metric
tons added to the seaborne LPG market in the third calendar
quarter.
Overall, the third calendar quarter of 2019 saw additional LPG
demand, particularly for propane in the Far East region. The
widening spread between prices in the U.S. and prices in the Far
East region accommodated an increase in freight rates in the third
calendar quarter of 2019.
For the third calendar quarter of 2019, the Baltic Index
averaged $66 per metric ton, compared
to an average of $62 per metric ton
in the second calendar quarter. The Baltic VLGC Index began the
quarter at $79 per metric ton,
falling to $52 per metric ton in
August, before regaining strength to $69 per metric ton on the last day of the
calendar quarter. For the fourth calendar quarter of 2019 to date,
the Baltic Index has averaged $75 per
metric ton.
The VLGC orderbook stands at approximately 13% of the current
global fleet. An additional 36 VLGCs, equivalent to approximately
3.0 million cbm of carrying capacity, are expected to be added to
the global fleet by calendar year-end 2021. The average age of the
global fleet is now approximately 9.4 years old.
A continuation of the favorable commodity price environment, the
ongoing increase in secular demand for LPG as a more
environmentally friendly alternative to other forms of energy and
forecast high levels of U.S. exports as evidenced by export
capacity and pipeline investments are expected to provide support
for VLGC demand going forward.
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
|
|
|
Six months
ended
|
|
(in U.S. dollars, except fleet data)
|
|
September 30, 2019
|
|
September 30, 2018
|
|
|
September 30, 2019
|
|
September 30, 2018
|
|
Statement of
Operations Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
91,624,875
|
|
$
|
40,807,542
|
|
|
$
|
152,790,421
|
|
$
|
68,451,824
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
.
|
|
|
.
|
|
Voyage
expenses
|
|
|
855,023
|
|
|
435,224
|
|
|
|
1,194,137
|
|
|
535,397
|
|
Charter hire
expenses
|
|
|
2,055,000
|
|
|
—
|
|
|
|
4,110,000
|
|
|
—
|
|
Vessel operating
expenses
|
|
|
17,393,685
|
|
|
17,375,273
|
|
|
|
33,513,638
|
|
|
34,060,730
|
|
Depreciation and
amortization
|
|
|
16,473,418
|
|
|
16,437,653
|
|
|
|
32,739,839
|
|
|
32,702,709
|
|
General and
administrative expenses
|
|
|
5,895,406
|
|
|
5,692,137
|
|
|
|
12,631,241
|
|
|
13,612,423
|
|
Professional and legal
fees related to the
BW Proposal
|
|
|
—
|
|
|
1,770,589
|
|
|
|
—
|
|
|
2,253,589
|
|
Total
expenses
|
|
|
42,672,532
|
|
|
41,710,876
|
|
|
|
84,188,855
|
|
|
83,164,848
|
|
Other income—related
parties
|
|
|
314,084
|
|
|
584,632
|
|
|
|
937,367
|
|
|
1,229,149
|
|
Operating
income/(loss)
|
|
|
49,266,427
|
|
|
(318,702)
|
|
|
|
69,538,933
|
|
|
(13,483,875)
|
|
Other
income/(expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and finance
costs
|
|
|
(9,303,373)
|
|
|
(10,152,672)
|
|
|
|
(19,000,655)
|
|
|
(20,526,953)
|
|
Interest
income
|
|
|
344,919
|
|
|
451,923
|
|
|
|
706,955
|
|
|
912,896
|
|
Unrealized
gain/(loss) on derivatives
|
|
|
(667,110)
|
|
|
1,051,460
|
|
|
|
(6,737,899)
|
|
|
2,759,076
|
|
Realized gain on
derivatives
|
|
|
709,146
|
|
|
830,991
|
|
|
|
1,742,141
|
|
|
1,613,556
|
|
Other gain/(loss),
net
|
|
|
361,887
|
|
|
(40,120)
|
|
|
|
537,480
|
|
|
(48,378)
|
|
Total other
income/(expenses), net
|
|
|
(8,554,531)
|
|
|
(7,858,418)
|
|
|
|
(22,751,978)
|
|
|
(15,289,803)
|
|
Net
income/(loss)
|
|
$
|
40,711,896
|
|
$
|
(8,177,120)
|
|
|
$
|
46,786,955
|
|
$
|
(28,773,678)
|
|
Earnings/(loss) per
common share—basic
|
|
|
0.75
|
|
|
(0.15)
|
|
|
|
0.86
|
|
|
(0.53)
|
|
Earnings/(loss) per
common share—diluted
|
|
$
|
0.74
|
|
$
|
(0.15)
|
|
|
$
|
0.85
|
|
$
|
(0.53)
|
|
Other Financial
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
|
67,337,351
|
|
$
|
17,855,615
|
|
|
$
|
105,719,734
|
|
$
|
23,040,751
|
|
Fleet
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calendar
days(2)
|
|
|
2,024
|
|
|
2,024
|
|
|
|
4,026
|
|
|
4,026
|
|
Time chartered-in
days(3)
|
|
|
92
|
|
|
—
|
|
|
|
153
|
|
|
—
|
|
Available
days(4)
|
|
|
2,051
|
|
|
2,010
|
|
|
|
4,134
|
|
|
4,001
|
|
Operating
days(5)(8)
|
|
|
1,906
|
|
|
1,925
|
|
|
|
3,956
|
|
|
3,589
|
|
Fleet
utilization(6)(8)
|
|
|
92.9
|
%
|
|
95.8
|
%
|
|
|
95.7
|
%
|
|
89.7
|
%
|
Average Daily
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time charter
equivalent rate(7)(8)
|
|
$
|
47,623
|
|
$
|
20,973
|
|
|
$
|
38,321
|
|
$
|
18,923
|
|
Daily vessel
operating expenses(9)
|
|
$
|
8,594
|
|
$
|
8,585
|
|
|
$
|
8,324
|
|
$
|
8,460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
As of
|
|
(in U.S. dollars)
|
|
September 30, 2019
|
|
March 31, 2019
|
|
Balance Sheet
Data
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
46,419,951
|
|
$
|
30,838,684
|
|
Restricted
cash—current
|
|
|
1,215,000
|
|
|
—
|
|
Restricted
cash—non-current
|
|
|
36,033,743
|
|
|
35,633,962
|
|
Total
assets
|
|
|
1,642,210,973
|
|
|
1,625,370,017
|
|
Total debt including
current portion—net of deferred financing fees of $12.6 million and
$14.0 million
as of September 30, 2019 and March 31, 2019,
respectively.
|
|
|
665,545,499
|
|
|
696,090,786
|
|
Total
liabilities
|
|
|
687,839,029
|
|
|
712,687,459
|
|
Total shareholders'
equity
|
|
$
|
954,371,944
|
|
$
|
912,682,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted EBITDA is a
non-U.S. GAAP financial measure and represents net income/(loss)
before interest and finance costs, unrealized (gain)/loss on
derivatives, realized 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 income/(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 income/(loss), operating income, cash flow from
operating activities or any other measure
of financial performance presented in accordance with U.S. GAAP.
Adjusted EBITDA excludes some, but not all, items that affect net
income/(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 income/(loss) to Adjusted EBITDA
(unaudited) for the periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
(in U.S. dollars)
|
|
September 30, 2019
|
|
September 30, 2018
|
|
September 30, 2019
|
|
September 30, 2018
|
|
Net
income/(loss)
|
|
$
|
40,711,896
|
|
$
|
(8,177,120)
|
|
$
|
46,786,955
|
|
$
|
(28,773,678)
|
|
Interest and finance
costs
|
|
|
9,303,373
|
|
|
10,152,672
|
|
|
19,000,655
|
|
|
20,526,953
|
|
Unrealized
(gain)/loss on derivatives
|
|
|
667,110
|
|
|
(1,051,460)
|
|
|
6,737,899
|
|
|
(2,759,076)
|
|
Realized gain on
derivatives
|
|
|
(709,146)
|
|
|
(830,991)
|
|
|
(1,742,141)
|
|
|
(1,613,556)
|
|
Stock-based
compensation expense
|
|
|
890,700
|
|
|
1,324,861
|
|
|
2,196,527
|
|
|
2,957,399
|
|
Depreciation and
amortization
|
|
|
16,473,418
|
|
|
16,437,653
|
|
|
32,739,839
|
|
|
32,702,709
|
|
Adjusted
EBITDA
|
|
$
|
67,337,351
|
|
$
|
17,855,615
|
|
$
|
105,719,734
|
|
$
|
23,040,751
|
|
|
|
(2)
|
We define calendar
days as the total number of days in a period during which each
vessel in our fleet was owned or operated pursuant to a
bareboat
charter. 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)
|
Time charter
equivalent rate, or TCE rate, is a non-U.S. 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
|
|
|
Six months
ended
|
|
(in U.S. dollars,
except operating days)
|
|
September 30, 2019
|
|
September 30, 2018
|
|
|
September 30, 2019
|
|
September 30, 2018
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
91,624,875
|
|
$
|
40,807,542
|
|
|
$
|
152,790,421
|
|
$
|
68,451,824
|
|
Voyage
expenses
|
|
|
(855,023)
|
|
|
(435,224)
|
|
|
|
(1,194,137)
|
|
|
(535,397)
|
|
Time charter
equivalent
|
|
$
|
90,769,852
|
|
$
|
40,372,318
|
|
|
$
|
151,596,284
|
|
$
|
67,916,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
days
|
|
|
1,906
|
|
|
1,925
|
|
|
|
3,956
|
|
|
3,589
|
|
TCE
rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time charter
equivalent rate
|
|
$
|
47,623
|
|
$
|
20,973
|
|
|
$
|
38,321
|
|
$
|
18,923
|
|
|
|
(8)
|
We determine
operating days for each vessel based on the underlying vessel
employment, including our vessels in the Helios Pool (the "Company
Methodology").
If we were to calculate operating days for each vessel within the
Helios Pool as a variable rate time charter (the "Alternate
Methodology"), our operating days and
fleet utilization would be increased with a corresponding reduction
to our TCE rate. Operating data using both methodologies is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Six months
ended
|
|
|
|
September 30, 2019
|
|
|
September 30, 2018
|
|
|
September 30, 2019
|
|
|
September 30, 2018
|
|
|
Company
Methodology:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Days
|
|
1,906
|
|
|
|
1,925
|
|
|
|
3,956
|
|
|
|
3,589
|
|
|
Fleet
Utilization
|
|
92.9
|
%
|
|
|
95.8
|
%
|
|
|
95.7
|
%
|
|
|
89.7
|
%
|
|
Time charter
equivalent rate
|
$
|
47,623
|
|
|
$
|
20,973
|
|
|
$
|
38,321
|
|
|
$
|
18,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alternate
Methodology:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Days
|
|
2,051
|
|
|
|
2,010
|
|
|
|
4,134
|
|
|
|
4,000
|
|
|
Fleet
Utilization
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
Time charter
equivalent rate
|
$
|
44,256
|
|
|
$
|
20,086
|
|
|
$
|
36,671
|
|
|
$
|
16,979
|
|
|
|
|
|
We believe that the
Company 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 U.S. GAAP, we provide adjusted net income/(loss) and adjusted
EPS. We believe that adjusted net oncome/(loss) and adjusted EPS
are useful to investors in understanding our underlying performance
and business trends. Adjusted net income/(loss) and adjusted
EPS are not a measurement of financial performance or liquidity
under U.S. GAAP; therefore, these non-U.S. GAAP financial measures
should not be considered as an alternative or substitute for U.S.
GAAP. The following table reconciles net income/(loss) and EPS to
adjusted net income/(loss) and adjusted EPS, respectively, for the
periods presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Six months
ended
|
|
(in U.S. dollars,
except share data)
|
|
September 30, 2019
|
|
September 30, 2018
|
|
|
September 30, 2019
|
|
September 30, 2018
|
|
Net
income/(loss)
|
|
$
|
40,711,896
|
|
$
|
(8,177,120)
|
|
|
$
|
46,786,955
|
|
$
|
(28,773,678)
|
|
Unrealized
(gain)/loss on derivatives
|
|
|
667,110
|
|
|
(1,051,460)
|
|
|
|
6,737,899
|
|
|
(2,759,076)
|
|
Adjusted net
income/(loss)
|
|
$
|
41,379,006
|
|
$
|
(9,228,580)
|
|
|
$
|
53,524,854
|
|
$
|
(31,532,754)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per
common share—diluted
|
|
$
|
0.74
|
|
$
|
(0.15)
|
|
|
$
|
0.85
|
|
$
|
(0.53)
|
|
Unrealized
(gain)/loss on derivatives
|
|
|
0.01
|
|
|
(0.02)
|
|
|
|
0.12
|
|
|
(0.05)
|
|
Adjusted
earnings/(loss) per common share—diluted
|
|
$
|
0.75
|
|
$
|
(0.17)
|
|
|
$
|
0.97
|
|
$
|
(0.58)
|
|
TCE, adjusted net income, adjusted EPS and adjusted EBITDA are
not recognized measures under U.S. GAAP and should not be regarded
as substitutes for revenues, net income and earnings per share. Our
presentation of TCE, adjusted net income, adjusted EPS and adjusted
EBITDA does not imply, and should not be construed as an inference,
that its future results will be unaffected by unusual or
non-recurring items and should not be considered in isolation or as
a substitute for a measure of performance prepared in accordance
with U.S. GAAP.
Conference Call
A conference call to discuss the results will be held today,
October 31, 2019 at 10:00 a.m. EDT. The conference call can be
accessed live by dialing 1-877-407-9716, or for international
callers, 1-201-493-6779, and requesting to be joined into the
Dorian LPG call. A replay will be available at 1:00 p.m. EDT 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 13696130. The
replay will be available until November 7,
2019, at 11:59 p.m. EST.
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 current expectations and observations regarding future
results, many of which, by their nature are inherently uncertain
and outside of the Company's control. Where the Company expresses
an expectation or belief as to future events or results, such
expectation or belief is expressed in good faith and believed to
have a reasonable basis. However, the Company's
forward-looking statements are subject to risks, uncertainties, and
other factors, which could cause actual results to differ
materially from future results expressed, projected, or implied by
those forward-looking statements. The Company's actual results may
differ, possibly materially, from those anticipated in these
forward-looking statements as a result of certain factors,
including changes in the Company's financial resources and
operational capabilities and as a result of certain other factors
listed from time to time in the Company's filings with the U.S.
Securities and Exchange Commission. 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-second-quarter-fiscal-year-2020-financial-results-300948936.html
SOURCE Dorian LPG Ltd.