STAMFORD, Conn., Feb. 4, 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
months ended December 31, 2018.
Highlights for the Third Quarter Fiscal Year 2019
- Revenues of $55.1 million and
Daily Time Charter Equivalent ("TCE")(1) rate for our
fleet of $30,108 for the three months
ended December 31, 2018, compared to revenues of
$44.5 million and TCE rate of
$22,833 for the three months ended
December 31, 2017.
- Net loss of $(6.2) million, or
$(0.11) earnings/(loss) per basic and
diluted share ("EPS"), and adjusted net income(1) of
$0.5 million, or $0.01 adjusted diluted earnings/(loss) per share
("adjusted EPS"),(1) for the three months ended
December 31, 2018.
- Adjusted EBITDA(1) of $27.2
million for the three months ended
December 31, 2018.
- Entered into a contract for three additional exhaust gas
cleaning systems (commonly referred to as "scrubbers"), increasing
our total scrubbers under contract to ten, all of which will use
hybrid technology.
(1) TCE, adjusted net
loss, adjusted EPS and adjusted EBITDA are non-U.S. 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 in this press release.
John C. Hadjipateras, Chairman,
President and Chief Executive Officer of the Company, commented,
"The average Baltic rate in the
quarter was $42.389 per metric ton
compared to $40.115 per metric ton in
the July to September quarter. In October, the Baltic peaked at a little over $48 per metric ton. The wild movements in oil
prices impacted trade in LPG. The Baltic has since dropped to nearly
$25 per metric ton as a result of a
contraction from the record-breaking volumes shipped in the July to
September quarter.
Looking ahead, we are optimistic about U.S. export capacity and
demand growth in Asia. While the
debate rages over IMO 2020, we expect to have twelve of our
twenty-two ships fitted with exhaust gas cleaning systems. We
believe this will enhance the competitive advantage we have as the
owners and operators of the most modern ECO fleet amongst our
peers."
Third Quarter Fiscal Year 2019 Results Summary
Net loss amounted to $(6.2)
million, or $(0.11) per share,
for the three months ended December 31, 2018, compared to
net income of $1.7 million, or
$0.03 per share, for the three months
ended December 31, 2017.
Adjusted net income amounted to $0.5
million, or $0.01 per share,
for the three months ended December 31, 2018, compared to
adjusted net loss of $(2.1) million,
or $(0.04) per share, for the three
months ended December 31, 2017. Net loss for the three
months ended December 31, 2018 is adjusted to exclude an
unrealized loss on derivative instruments of $6.7 million. Please refer to the reconciliation
of net loss to adjusted net loss, which appears later in this press
release.
The $2.6 million favorable change
in adjusted net income/(loss) for the three months ended
December 31, 2018, compared to the three months ended
December 31, 2017, is primarily attributable to an
increase of $10.6 million in
revenues, a favorable change of $1.3
million in realized gain on derivatives, an increase of
$0.5 million in interest income, and
decreases of $0.3 million in general
and administrative expenses and $0.1
million in voyage expenses, partially offset by professional
and legal fees related to the BW Proposal (defined below) of
$7.8 million, and increases of
$1.6 million in interest and finance
costs and $1.0 million in vessel
operating expenses.
The TCE rate for our fleet was $30,108 for the three months ended
December 31, 2018, a 31.9% increase from a TCE rate of
$22,833 from the same period in the
prior year, primarily driven by increased spot market rates,
partially offset by 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 95.6% in the quarter ended December 31, 2017 to
90.0% in the quarter ended December 31, 2018.
Vessel operating expenses per day increased to $8,287 in the three months ended
December 31, 2018 from $7,804 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, voyage charters and other revenues earned by our vessels,
were $55.1 million for the three
months ended December 31, 2018, an
increase of $10.6 million, or 23.7%,
from $44.5 million for the three
months ended December 31, 2017. The
increase is primarily attributable to an increase in average TCE
rates, partially offset by reduced fleet utilization. Average TCE
rates increased from $22,833 for the
three months ended December 31, 2017
to $30,108 for the three months ended
December 31, 2018, primarily as a
result of higher spot market rates during the three months ended
December 31, 2018 as compared to the
three months ended December 31, 2017,
partially offset by higher 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 $42.389 during the three
months ended December 31, 2018
compared to an average of $29.857 for
the three months ended December 31,
2017. The average price of heavy fuel oil (expressed as U.S.
dollars per metric tonnes) from Singapore and Fujairah increased from $362 during the three months ended December 31, 2017 to $466 during the three months ended December 31, 2018. Our fleet utilization
decreased from 95.6% during the three months ended December 31, 2017 to 90.0% during the three
months ended December 31, 2018.
Vessel Operating Expenses
Vessel operating expenses were $16.8
million during the three months ended December 31, 2018, or $8,287 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 $1.0
million, or 6.2%, from $15.8
million for the three months ended December 31, 2017. Vessel operating expenses per
vessel per calendar day increased by $483 from $7,804
for the three months ended December 31,
2017 to $8,287 for the three
months ended December 31, 2018. The
increase in vessel operating expenses for the three months ended
December 31, 2018, when compared with
the three months ended December 31,
2017, was primarily the result of a $1.0 million, or $470 per vessel per calendar day, increase in
spares, stores, and repairs and maintenance costs largely due to
our regular preventive maintenance programs.
General and Administrative Expenses
General and administrative expenses were $5.2 million for the three months ended
December 31, 2018, a decrease of
$0.3 million, or 6.9%, from
$5.5 million for the three months
ended December 31, 2017. The decrease
was mainly due to a $0.4 million
decrease in professional and legal fees unrelated to the BW
Proposal (defined below).
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, along
with its affiliates, commenced a proxy contest to replace three
members of our board of directors with BW nominees. 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 $7.8 million for the three months ended
December 31, 2018.
Interest and Finance Costs
Interest and finance costs amounted to $10.0 million for the three months ended
December 31, 2018, an increase of
$1.3 million, or 15.2%, from
$8.7 million for the three months
ended December 31, 2017. The increase
of $1.3 million during this period
was due to an increase of $2.1
million in interest incurred on our long-term debt,
primarily resulting from an increase in LIBOR, partially offset by
a decrease in average indebtedness and a reduction of $0.8 million in amortization of deferred
financing fees and loan expenses. Average indebtedness, excluding
deferred financing fees, decreased from $751.3 million for the three months ended
December 31, 2017 to $739.9 million for the three months ended
December 31, 2018. As of December 31, 2018, the outstanding balance of our
long-term debt, net of deferred financing fees of $14.8 million, was $711.3
million.
Unrealized Gain/(Loss) on Derivatives
Unrealized loss on derivatives was approximately $6.7 million for the three months ended
December 31, 2018, compared to an
unrealized gain of $3.8 million for
the three months ended December 31,
2017. The unfavorable $10.5
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 on derivatives was approximately $0.9 million for the three months ended
December 31, 2018, compared to a
realized loss of $0.4 million for the
three months ended December 31, 2017.
The favorable $1.3 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 (as
amended) with a group of banks and financial institutions.
Fleet
The following table sets forth certain information regarding our
fleet as of January 25, 2019.
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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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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(4)
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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(5)
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—
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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(5)
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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(6)
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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(5)
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—
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Corvette(3)
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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(5)
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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(5)
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—
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Concorde(3)
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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(5)
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—
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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(5)
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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(5)
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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(5)
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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(5)
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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(5)
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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(5)
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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(7)
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Q1 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(5)
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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(5)
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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(5)
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—
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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(5)
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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(8)
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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(5)
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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(5)
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—
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Total
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1,842,000
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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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Currently on time
charter with an oil major that began in December 2014.
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(5)
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"Pool" indicates that
the vessel is operated in the Helios Pool on a voyage charter with
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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(6)
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Currently on a time
charter with an oil major that began in July 2014.
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(7)
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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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(8)
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Currently on a time
charter with a major oil company that began in November
2015.
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Market Outlook Update
The biggest market change in the fourth calendar quarter of
2018, was the decline in crude oil prices, with Brent falling from
a monthly average of nearly $82/barrel in October, finishing the year below
$51 per barrel. As a result, global
LPG prices followed the downward trend.
Without the additional LPG cargoes out of Marcus Hook from Mariner East 2, which started
operations in January 2019, U.S.
exports remained similar to the third calendar quarter of 2018, if
not slightly lower. Total LPG exports from the U.S. are estimated
at 32.8 million metric tons for the full year, up nearly 10%
year-over-year. Middle Eastern volumes were also relatively
unchanged quarter on quarter at around 10 million metric tons, with
Asia remaining the key outlet.
In terms of direction of trade, one of the major changes we
observed in the fourth calendar quarter, was an increase VLGC
cargoes from the U.S. Gulf Coast to NW
Europe and the Mediterranean compared to the previous
quarter, with less volume heading East as a result. Economics for
utilizing propane in steam crackers within the European landscape
were favorable with the propane-naphtha spread widening from an
average of approximately $72 per
metric ton in the third calendar quarter 2018 to approximately
$86 per metric ton in the fourth
calendar quarter of 2018.
After a relatively strong third calendar quarter of 2018,
Chinese demand dipped towards the end of the year, albeit still
showing an increase of nearly 1 million metric tons for the entire
calendar year of 2018 versus 2017. Propane dehydrogenation ("PDH")
margins have remained favorable in 2018 in Asia resulting in good operating rates and
continued demand into this sector. PDH demand is expected to grow
further in 2019 with increased propane demand from new PDH
facilities in China. Other Far
Eastern importers showed strong demand in the fourth calendar
quarter of 2018, but a mild winter thus far has recently limited
import demand.
The Baltic VLGC Index peaked in the fourth calendar quarter,
averaging $46 per metric ton on
average in October 2018, The Baltic
Index subsided in the remainder of the fourth calendar quarter
ending December at an average of just over $38 per metric ton. This overall gives an average
of around $34.5 per metric ton for
2018, stronger than the sub $28 per
metric ton on average in 2017.
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:
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Three months
ended
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Nine months
ended
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(in U.S. dollars, except fleet data)
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December 31, 2018
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December 31, 2017
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December 31, 2018
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December 31, 2017
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Statement of
Operations Data
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Revenues
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$
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55,113,295
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$
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44,545,589
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$
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123,565,119
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$
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120,300,082
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Expenses
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.
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.
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Voyage
expenses
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287,221
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386,637
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822,618
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1,901,603
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Vessel operating
expenses
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16,773,634
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15,794,381
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50,834,364
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48,420,108
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Depreciation and
amortization
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16,430,363
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16,466,322
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49,133,072
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49,224,187
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General and
administrative expenses
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5,156,573
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5,536,028
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18,768,996
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19,492,082
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Professional and legal
fees related to the BW
Proposal
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7,766,847
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—
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10,020,436
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—
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Total
expenses
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46,414,638
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38,183,368
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129,579,486
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119,037,980
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Other income—related
parties
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614,633
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633,883
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1,843,782
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|
1,905,836
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Operating
income/(loss)
|
|
|
9,313,290
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|
6,996,104
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|
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|
(4,170,585)
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|
|
3,167,938
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Other
income/(expenses)
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|
|
|
|
|
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|
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|
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Interest and finance
costs
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|
|
(10,000,018)
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|
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(8,683,257)
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(30,526,971)
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|
|
(24,763,421)
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Interest
income
|
|
|
413,546
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|
|
103,446
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|
|
|
1,326,442
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|
|
147,488
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|
Unrealized
gain/(loss) on derivatives
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|
|
(6,669,266)
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|
|
3,771,160
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|
|
|
(3,910,190)
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|
|
2,053,129
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|
Realized gain/(loss)
on derivatives
|
|
|
881,276
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|
(369,941)
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|
|
|
2,494,832
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|
|
(1,418,724)
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Gain on early
extinguishment of debt
|
|
|
—
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|
|
—
|
|
|
|
—
|
|
|
4,117,364
|
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Other gain/(loss),
net
|
|
|
(157,480)
|
|
|
(147,097)
|
|
|
|
(205,858)
|
|
|
(238,465)
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Total other
income/(expenses), net
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|
|
(15,531,942)
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|
|
(5,325,689)
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|
|
|
(30,821,745)
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|
|
(20,102,629)
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Net
income/(loss)
|
|
$
|
(6,218,652)
|
|
$
|
1,670,415
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|
$
|
(34,992,330)
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|
$
|
(16,934,691)
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Earnings/(loss) per
common share—basic
|
|
|
(0.11)
|
|
|
0.03
|
|
|
|
(0.64)
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|
|
(0.31)
|
|
Earnings/(loss) per
common share—diluted
|
|
$
|
(0.11)
|
|
$
|
0.03
|
|
|
$
|
(0.64)
|
|
$
|
(0.31)
|
|
Other Financial
Data
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|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
|
$
|
27,230,044
|
|
$
|
24,696,206
|
|
|
$
|
50,270,795
|
|
$
|
56,278,367
|
|
Fleet
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calendar
days(2)
|
|
|
2,024
|
|
|
2,024
|
|
|
|
6,050
|
|
|
6,050
|
|
Available
days(3)
|
|
|
2,024
|
|
|
2,023
|
|
|
|
6,025
|
|
|
6,048
|
|
Operating
days(4)(7)
|
|
|
1,821
|
|
|
1,934
|
|
|
|
5,410
|
|
|
5,585
|
|
Fleet
utilization(5)(7)
|
|
|
90.0
|
%
|
|
95.6
|
%
|
|
|
89.8
|
%
|
|
92.3
|
%
|
Average Daily
Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time charter
equivalent rate(6)(7)
|
|
$
|
30,108
|
|
$
|
22,833
|
|
|
$
|
22,688
|
|
$
|
21,199
|
|
Daily vessel
operating expenses(8)
|
|
$
|
8,287
|
|
$
|
7,804
|
|
|
$
|
8,402
|
|
$
|
8,003
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
As of
|
|
(in U.S. dollars)
|
|
December 31, 2018
|
|
March 31, 2018
|
|
Balance Sheet
Data
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
34,947,580
|
|
$
|
103,505,676
|
|
Restricted
cash—non-current
|
|
|
35,635,252
|
|
|
25,862,704
|
|
Total
assets
|
|
|
1,659,567,083
|
|
|
1,736,110,156
|
|
Total debt including
current portion—net of deferred financing fees of $14.8 million and
$16.1 million
as of December 31, 2018 and March 31, 2018,
respectively.
|
|
|
711,330,757
|
|
|
759,103,152
|
|
Total
liabilities
|
|
|
732,091,345
|
|
|
776,696,794
|
|
Total shareholders'
equity
|
|
$
|
927,475,738
|
|
$
|
959,413,362
|
|
__________________
|
(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
|
|
Nine months
ended
|
|
(in U.S. dollars)
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2018
|
|
December 31, 2017
|
|
Net
income/(loss)
|
|
$
|
(6,218,652)
|
|
$
|
1,670,415
|
|
$
|
(34,992,330)
|
|
$
|
(16,934,691)
|
|
Interest and finance
costs
|
|
|
10,000,018
|
|
|
8,683,257
|
|
|
30,526,971
|
|
|
24,763,421
|
|
Unrealized gain on
derivatives
|
|
|
6,669,266
|
|
|
(3,771,160)
|
|
|
3,910,190
|
|
|
(2,053,129)
|
|
Realized (gain)/loss
on derivatives
|
|
|
(881,276)
|
|
|
369,941
|
|
|
(2,494,832)
|
|
|
1,418,724
|
|
Gain on early
extinguishment of debt
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,117,364)
|
|
Stock-based
compensation expense
|
|
|
1,230,325
|
|
|
1,277,431
|
|
|
4,187,724
|
|
|
3,977,219
|
|
Depreciation and
amortization
|
|
|
16,430,363
|
|
|
16,466,322
|
|
|
49,133,072
|
|
|
49,224,187
|
|
Adjusted
EBITDA
|
|
$
|
27,230,044
|
|
$
|
24,696,206
|
|
$
|
50,270,795
|
|
$
|
56,278,367
|
|
|
|
(2)
|
We define calendar
days as the total number of days in a period during which each
vessel in our fleet was owned. 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 available
days as calendar days 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.
|
|
|
(4)
|
We define operating
days as available days less the aggregate number of days that our
vessels 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 7
below).
|
|
|
(5)
|
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.
|
|
|
(6)
|
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
|
|
|
Nine months
ended
|
|
(in U.S. dollars,
except operating days)
|
|
December 31, 2018
|
|
December 31, 2017
|
|
|
December 31, 2018
|
|
December 31, 2017
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
55,113,295
|
|
$
|
44,545,589
|
|
|
$
|
123,565,119
|
|
$
|
120,300,082
|
|
Voyage
expenses
|
|
|
(287,221)
|
|
|
(386,637)
|
|
|
|
(822,618)
|
|
|
(1,901,603)
|
|
Time charter
equivalent
|
|
$
|
54,826,074
|
|
$
|
44,158,952
|
|
|
$
|
122,742,501
|
|
$
|
118,398,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
days
|
|
|
1,821
|
|
|
1,934
|
|
|
|
5,410
|
|
|
5,585
|
|
TCE
rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time charter
equivalent rate
|
|
$
|
30,108
|
|
$
|
22,833
|
|
|
$
|
22,688
|
|
$
|
21,199
|
|
|
|
(7)
|
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
|
|
|
Nine months
ended
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
|
Company
Methodology:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Days
|
|
1,821
|
|
|
|
1,934
|
|
|
|
5,410
|
|
|
|
5,585
|
|
|
Fleet
Utilization
|
|
90.0
|
%
|
|
|
95.6
|
%
|
|
|
89.8
|
%
|
|
|
92.3
|
%
|
|
Time charter
equivalent
|
$
|
30,108
|
|
|
$
|
22,833
|
|
|
$
|
22,688
|
|
|
$
|
21,199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alternate
Methodology:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Days
|
|
2,023
|
|
|
|
2,023
|
|
|
|
6,023
|
|
|
|
6,048
|
|
|
Fleet
Utilization
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
|
100.0
|
%
|
|
Time charter
equivalent
|
$
|
27,101
|
|
|
$
|
21,828
|
|
|
$
|
20,379
|
|
|
$
|
19,576
|
|
|
|
|
We believe that the
Company Methodology using the underlying vessel employment provides
more meaningful insight into market conditions and the performance
of our vessels.
|
|
|
(8)
|
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 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 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 loss and adjusted EPS, respectively, for the periods
presented:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Nine months
ended
|
|
(in U.S. dollars,
except share data)
|
|
December 31, 2018
|
|
December 31, 2017
|
|
|
December 31, 2018
|
|
December 31, 2017
|
|
Net
income/(loss)
|
|
$
|
(6,218,652)
|
|
$
|
1,670,415
|
|
|
$
|
(34,992,330)
|
|
$
|
(16,934,691)
|
|
Unrealized
(gain)/loss on derivatives
|
|
|
6,669,266
|
|
|
(3,771,160)
|
|
|
|
3,910,190
|
|
|
(2,053,129)
|
|
Gain on early
extinguishment of debt
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(4,117,364)
|
|
Adjusted net
income/(loss)
|
|
$
|
450,614
|
|
$
|
(2,100,745)
|
|
|
$
|
(31,082,140)
|
|
$
|
(23,105,184)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per
common share—diluted
|
|
$
|
(0.11)
|
|
$
|
0.03
|
|
|
$
|
(0.64)
|
|
$
|
(0.31)
|
|
Unrealized
(gain)/loss on derivatives
|
|
|
0.12
|
|
|
(0.07)
|
|
|
|
0.07
|
|
|
(0.04)
|
|
Gain on early
extinguishment of debt
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
(0.08)
|
|
Adjusted
earnings/(loss) per common share—diluted
|
|
$
|
0.01
|
|
$
|
(0.04)
|
|
|
$
|
(0.57)
|
|
$
|
(0.43)
|
|
Conference Call
A conference call to discuss the results will be held today,
February 4, 2019 at 10:00 a.m. EST. 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. EST 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 13687131. The
replay will be available until February 11,
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-two 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
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SOURCE Dorian LPG Ltd.