DORIAN LPG LTD. Q2 FY2025 earnings call

• Board committed to returning value to shareholders with a strong balance sheet and capital allocation policy, having returned over $820 million to shareholders since IPO. - Solid quarter despite freight market disruptions; EBITDA $46.2M, net income $9.4M. Net debt to cap at 14%. - Optimistic about near and mid-term market prospects, especially ahead of winter season. Canal likely to gain more traffic from other ships in coming months, and terminal expansion projects (first finishing in second half of 2026) to accommodate growth. - Helios LPG pool performing well; vessels mix enables flexibility. One VLGC/VLAC delivering in 2026, and some ships retrofitted for ammonia, with Captain John NP already ammonia capable. - Added eighth board member, Mark Ross, with his expertise in global energy and shipping markets.

For the quarter ending September 30, 2024, EBITDA was $46.2 million and net income was $9.4 million. Net debt to total capitalization remained at about 14%. The Helios LPG pool performed well. The fleet mix includes scrubber LPG dual fuel and Panama VLGCs, allowing flexibility. Revenue contribution details weren't explicitly broken down by product segment beyond overall financials.

• Estimated fixed just over 60% of available days in Q4 2024 at a TC in excess of $40,000 per day. - Optimistic about near and mid-term market prospects ahead of seasonally strong winter period. - Terminal expansion projects to provide ample capacity for production and export growth in the mid-term.

• Forward-looking statements subject to known and unknown risks, uncertainties, and general economic conditions which could cause actual results to differ materially. - Market disruptions like weather-related events (e.g., hurricanes, storms) impacted VLGC freight rates. - Uncertainties in the development of the green ammonia trade, which could affect vessel ordering needs until the trade matures.

Q: About VLGC spot rates, terminal capacity, and seasonality. Omar Nokta asked about whether soft VLGC rates are due to terminal capacity and seasonality impact. John Hadjipateras responded that factors like canal inefficiencies related to LNG and container demand were more prominent than terminal capacity restrictions, and weather predictions of a colder winter could put pressure on the ARB.

Q: Regarding Middle East exports and ammonia trade timeline. Clement Mullins asked about year-to-date decline in Middle East exports and ammonia trade timeline. John Hadjipateras stated Middle East LPG exports are correlated with OPEC+ production, and ammonia trade is long-term with prospects but currently not seeing as much development as expected, but could have a positive effect quickly when it matures