Dorian LPG Ltd. Reports Q3 Fiscal Year 2025 Financial Results
Dorian LPG Ltd. (NYSE: LPG) (the “Company,” “Dorian LPG,” “we,” “us,” and “our”), a leading owner and operator of modern very large gas carriers (“VLGCs”), recently announced its financial results for the three months ended December 31, 2024.
Key Recent Development
One of the most notable financial actions taken by the Company was the declaration of an irregular dividend totaling approximately $30.0 million, or $0.70 per share. This dividend is scheduled for payment on or about February 27, 2025, to shareholders of record as of February 5, 2025.
Third Quarter Fiscal Year 2025 Highlights
During the third quarter of fiscal year 2025 Reports , Dorian LPG reported the following financial results:
- Revenues of $80.7 million.
- Time Charter Equivalent (“TCE”) rate per available day for its fleet was $36,071.
- Net income amounted to $21.4 million, or $0.50 per diluted share (“EPS”).
- Adjusted net income totaled $18.5 million, or $0.43 adjusted earnings per diluted share (“adjusted EPS”).
- Adjusted EBITDA stood at $45.2 million.
- The Company declared and paid an irregular cash dividend totaling $42.8 million in November 2024.
CEO Commentary
John C. Hadjipateras, Chairman, President, and CEO of Dorian LPG, commented on the results, emphasizing that the quarterly performance reflected an improving market environment. He noted the positive impact of additional export capacity in the U.S. and a modest orderbook, which contribute to a constructive market outlook.
He further stated, “Our dividend payout in excess of the quarter’s net income reflects our constructive view of the VLGC market over the coming Reports months. As always, I acknowledge our dedicated seafarers and shoreside staff, whose hard work and dedication make our results possible.”
Third Quarter Fiscal Year 2025 Results Summary
Net Income and Adjusted Net Income
For the quarter ended December 31, 2024, the Company reported net income of $21.4 million, translating to $0.50 per diluted share. This represents a significant decrease from $100.0 million, or $2.47 per diluted share, reported in the same quarter of the prior year.
Adjusted net income was $18.5 million, or $0.43 per Reports diluted share, compared to $106.0 million, or $2.62 per diluted share, for the quarter ended December 31, 2023. This decline was mainly due to a decrease in revenues and increased operational costs.
The $87.5 million reduction in adjusted net income was primarily due to:
- Revenue Decline: A decrease of $82.4 million in revenues due to lower average TCE rates.
- Increased Expenses:
- Charter hire expenses rose by $2.2 million.
- Vessel operating expenses increased by $2.2 million.
- Voyage expenses grew by $0.2 million.
- Depreciation and amortization expenses increased by $0.1 million.
- Other Financial Factors:
- A $1.1 million decrease in realized gain on derivatives.
- A $1.6 million decrease in other gain/(loss), net.
- These were partially offset by a $1.2 million decrease in interest and finance costs and a $0.2 million reduction in general and administrative expenses.
- Interest income increased by $0.9 million.
TCE Rates and Vessel Operating Expenses
The TCE rate per available day for the Company’s fleet was reported at $36,071 for the quarter, a sharp decline of 49.9% from $71,938 recorded in the prior-year period.
Vessel operating expenses per vessel per calendar day increased to $11,097 in the third quarter of fiscal year 2025, up from $9,936 in the prior-year quarter. This rise in costs was largely driven by an increase in non-capitalizable drydock-related operating expenses of $909 per vessel per calendar day.
Revenue Analysis
Dorian LPG generated revenues of $80.7 million in the third quarter of fiscal year 2025. This marks a decline of $82.4 million, or 50.5%, from $163.1 million recorded in the corresponding period of the prior year. The decline was primarily attributed to lower TCE rates, which fell by $35,867 per available day from $71,938 in Q3 FY 2024 to $36,071 in Q3 FY Reports 2025.
One of the key indicators for VLGC market performance, the Baltic Exchange Liquid Petroleum Gas Index, averaged $55.717 during the quarter, compared to an average of $132.773 in the prior-year quarter. Additionally, the average price of very low sulfur fuel oil decreased from $653 per metric ton to $570 per metric ton, partially offsetting the revenue decline.
Operating Expense Breakdown
Vessel operating expenses for the quarter totaled $21.4 million, or $11,097 per vessel per calendar day. This represents an increase Reports of $2.2 million, or 11.7%, from the $19.2 million recorded in the previous year’s third quarter.
The rise in operating costs was driven by:
- Higher Drydock-Related Expenses: Non-capitalizable drydock-related expenses contributed $909 per vessel per calendar day to the overall increase.
- Other Operating Costs: Excluding drydock-related costs, daily operating expenses increased by $252 per vessel per calendar day, driven by:
- A $181 per vessel per calendar day adjustment to an expense estimate from the prior period that did not recur.
- An $86 per vessel per calendar day increase in vessel communications expenses.
Dorian LPG faced a challenging quarter Reports marked by declining revenues and lower TCE rates, driven by softer spot market conditions. However, Reports the Company continues to generate strong earnings and Reports maintain a disciplined capital allocation strategy, as reflected in its dividend payments. The market outlook remains positive, with increased U.S. export capacity expected to provide support in the coming months.
As Dorian LPG navigates industry fluctuations, its strong balance sheet and operational efficiencies position it well to capitalize on emerging opportunities in the VLGC sector.