Q1 2025 Dorian LPG Ltd Earnings Call

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Unknown Executive: 12 locations on hold for today's Dorian conference. We appreciate your patience, and we ask you to continue to stand by. We will be starting momentarily.

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Operator: To all locations on hold for today's Dorian conference, we appreciate your patience, and we ask that you continue to stand by; we will be starting momentarily. Please stand by; your programming is about to begin.

Please stand by, your program is about to begin.

Unknown Executive: So today, everyone, and welcome to the Dorian LPG first quarter 2025 earnings conference call. At this time, all participants are in no listen-only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference call is being recorded.

Operator: Good day everyone, and welcome to the Dorian LPG First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode.

Speaker Change: Good day everyone and welcome to the Dorian LPG First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference call is being recorded.

Operator: A brief question and answer session will follow the formal presentation. As a reminder, this conference call is being recorded. Additionally, a live audio webcast of today's conference call is available on Dorian LPG's website, which is www.dorianlpg.com. I would now like to turn the conference over to Ted Young, Chief Financial Officer. Thank you, Mr. Young. Please go ahead.

Unknown Executive: Additionally, a live audio webcast of today's conference call is available on Dorian LPG's website, which is www.dorianlpg.com.

Additionally, a live audio webcast of today's conference call is available on Dorian LPG's website, which is www.dorianlpg.com.

Nikki: I would now like to turn the conference over to Ted Young. Chief Financial Officer, thank you, Mr. Young. Please go ahead.

I would now like to turn the conference over to Ted Young, Chief Financial Officer. Thank you, Mr. Young. Please go ahead.

Ted Young: Thank you, Nikki.

Ted Young: Thank you, Nikki. Good morning, and thank you everyone for joining us for our first quarter 2025 results conference call. With me today are John Hadjipateras, Chairman, President, and CEO of Dorian LPG Ltd.; John Lycouris, Head of Energy Transition and Chief Executive Officer of Dorian LPG USA; and Tim Hansen, Chief Commercial Officer. As a reminder, this conference call webcast and replay of this call will be available through August 8, 2024. Many of our remarks today contain forward-looking statements based on current expectations.

Ted Young: Good morning, and thank you everyone for joining us for our first quarter 2025 results conference call. With me today are John Hodge-Batterist, Chairman, President and CEO of Dorian LPG Limited. John LaQuiz, Head of Energy Transition and Chief Executive Officer of Dorian LPG USA, and Tim Hansen, Chief Commercial Officer.

Ted Young: Professor. As a reminder, this conference called webcast in a replay of this call will be available through August 8, 2024. Many of our remarks today contain forward-looking statements based on current expectations. These statements may often be identified with words such as expect, anticipate, believe, or similar indications of future expectations. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct. These forward-looking statements are subject to known and unknown risks and uncertainties, and other factors, as well as general economic conditions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions or estimates prove to be incorrect, actual results may vary materially from those we expressed today.

Speaker Change: As a reminder, this conference call webcast and a replay of this call will be available through August 8, 2024.

Ted Young: These statements may often be identified with words such as expect, anticipate, believe, or similar indications of future expectations. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any such forward-looking statements will prove to be correct. These forward-looking statements are subject to known and unknown risks and uncertainties and other factors as well as general economic conditions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions or estimates prove to be incorrect, actual results may vary materially from those we express today.

Speaker Change: Many of our remarks today contain forward-looking statements based on current expectations. These statements may often be identified with words such as expect, anticipate, believe, or similar indications of future expectations.

Ted Young: Additionally, let me refer you to another results for the period ended June 30, 2024 that were published this morning on Form 10-Q. In addition, please refer to our previous filings on Form 10-K, where you'll find risk factors because actual results differ materially from those forward-looking statements. Finally, you may find it useful to refer to the investor highlights slides posted this morning on our website as we make our remarks.

Ted Young: Additionally, let me refer you to our unedited results for the period ended June 30, 2024, that were published this morning on Form 10-Q. In addition, please refer to our previous filings on Form 10-K, where you'll find risk factors that cause actual results to differ materially from those forward-looking statements. Finally, you may find it useful to refer to the investor highlights slides posted this morning on our website as we make our remarks. With that, I'll turn over the call to John Hadjipateras.

Additionally, let me refer you to our unedited results for the period ended June 30, 2024 that were published this morning on Form 10-Q . In addition, please refer to our previous filings on Form 10-K where you'll find risk factors that cause actual results to differ materially from those forward-looking statements.

Finally, you may find it useful to refer to the investor highlights slides posted this morning on our website as we make our remarks. With that, I'll turn over the call to John Hadjipateras.

John Hadjipateras: With that, I'll turn over the call to John Hadjipateras. Thanks, Ted, and thank you all for joining to discuss our first quarter, the natural 2025. We had a strong first quarter with net income of 51.3 million. During the quarter, our equity offering materialized a significant strategic objective, further enhancing the strength of our balance sheet and positioning the company for future growth and fleet renewal. As mentioned last quarter, we have one BOTC VLAC on order from Hanwa. From Hanwa Shipyard. And we are investing in some retrofits on ammonia on our existing for ammonia carriage on our existing ships.

John Hadjipateras: Thanks, Ted, and thank you all for joining us to discuss our first quarter financial 2025. We had a strong first quarter with net income of $51.3 million. During the quarter, our equity offering achieved a significant strategic objective, further enhancing the strength of our balance sheet and positioning the company for future growth and fleet renewal. As mentioned last quarter, we have one VODC-VLAC on order from Hanwha Shipyard, and we're investing in some retrofits for ammonia carriage on our existing ship. Our board declared a $1 Irregular Dividend, bringing the total capital return since our IPO to more than $777 million.

John Hadjipateras: Thanks Ted and thank you all for joining to discuss our first quarter financial 2025. We had a strong first quarter with net income of 51.3 million.

Speaker Change: As mentioned last quarter, we have one VLDC, VLAC on order from Hanwha.

John Hadjipateras: Our board declared a $1, the irregular dividend, bringing the total capital returns since our IPO to more than $777 million. We believe that our strong balance sheet and good debt profile enable us to pursue opportunities when we determine that the timing is appropriate. As you will hear from both Ted and Tim, market volatility featured again during the quarter and continued in July. We believe that these swings do not reflect any significant changes in the fundamentals of supply and demand for VLGCs. Rather, they define a near equilibrium where small changes can result in big price swings.

John Hadjipateras: Our board declared a $1

John Hadjipateras: We believe that our strong balance sheet and good debt profile enable us to pursue opportunities when we determine that the timing is appropriate. As you will hear from both Ted and Tim, market volatility featured again during the quarter and continued in July. However, we believe that these swings do not reflect any significant changes in the fundamentals of supply and demand for VLDCs.

John Hadjipateras: Rather, they define a near equilibrium where small changes can result in big prices; factors such as restrictions and restoration of Panama transit, weather events in the U.S. Gulf, and the still unresolved wars in the Middle East and the Black Sea can increase or inhibit our quarterly forecast, but the underlying fundamentals point to continued growth in the trade of LPG. 56 VLGCs have been added since the beginning of 2023, increasing the fleet by roughly 16% to 394 ships today. Meanwhile, in 2023, global listings were about 12% higher than in 2022.

John Hadjipateras: Factors such as restrictions and restoration of Panama transits, weather events in the US Gulf, and the still unresolved wars in the Middle East and the Black Sea, and the alternatively increase or inhibit our quarterly earnings. But the underlying fundamentals point to continued growth in the trade of LPG. 56 VLGCs have been added since the beginning of 2023, increasing the fleet by roughly 60% to 394 ships today. While in 2023, global listings were about 12% higher than in 2022. So clearly, the various disruptions have been contributing to profitability. Looking ahead, we expect five ships to be delivered in 2024 and 13 in 2025, increasing the fleet by 1% and 3% respectively in each of those years, before larger increases again in 20, and 27 in anticipation of potential demand for ammonia transportation.

Speaker Change: Factors such as restrictions and restoration of Panama transits, weather events in the US Gulf, and there's still unresolved wars in the Middle East and the Black Sea, alternately

John Hadjipateras: Increase or inhibit our quarterly earnings, but the underlying fundamentals point to continued growth in the trade of LPG.

John Hadjipateras: So clearly, the various disruptions have been contributing to profitability. Looking ahead, we expect five ships to be delivered in 2024 and 13 in 2025, increasing the fleet by 1% and 3%, respectively, in each of those years, before larger increases again in 26 and 27 in anticipation of potential demand for ammonia transportation. At the same time, the prospects for increased production and exports from the U.S. are favorable, as are the indicators for demand in Asia and elsewhere.

John Hadjipateras: before larger increases again in 2026 and 2027 in anticipation of potential demand for ammonia transportation.

John Hadjipateras: We have time, the prospects for increased production and exports from the U.S. are favorable, as are the indicators for demand in Asia and elsewhere. These fundamental factors underpin our cost and the market prospects for VLPs. As you will hear from John L., our teams are working on reducing emissions and fuel and operating costs for our fleet.

John Hadjipateras: Meantime, the prospects for increased production and exports from the U.S. are favorable, as are the indicators for demand in Asia and elsewhere.

John Hadjipateras: These fundamental factors underpin our costs and the market prospects for VLC. As you will hear from Jon-El, our teams are working on reducing emissions and fuel and operating costs for our fleet. We have embarked on a top-down initiative to simplify and revamp on-board safety procedures. Our fully integrated structure provides a real benefit in our pursuit of these objectives. As always, I acknowledge our dedicated seafarers and shoreside staff whose hard work and dedication make our results possible.

John Hadjipateras: These fundamental factors underpin our costs and the market prospects for VLCs.

John Hadjipateras: We have embarked on a tough down initiative to simplify and revamp onboard safety procedures. Our fully integrated structure provides a real benefit in our pursuit of these objectives.

John Hadjipateras: As always, I acknowledge our dedicated seaparers and Shoreside Saat, whose hard work and dedication make our results possible.

Ted Young: Now I'll give you Ted.

John Hadjipateras: Now I'll give you Ted. Thanks, John. My comments today will focus on our recent capital allocation events, our financial position, liquidity, and our unaudited first quarter results. As of June 30, 2024, we reported $353.3 million of free cash.

Ted Young: Thanks, John. My comments will focus on our recent capital allocation events, our financial position, liquidity, and our unaudited first quarter results. At June 30, 2024, we reported $353.3 million of free cash. The significant increase to much 31 reflects the net proceeds of our equity offering and strong free cash load equity generated, less of course the dividend paid during the June 30 quarter. Also, as we previously disclosed, we'll pay another $1 per share as an irregular dividend, a roughly $43 million in total dividends on or about August 21, 2024, to shareholders of record as of August 8.

Ted Young: My comments today will focus on our recent capital allocation events, our financial position, liquidity, and our unaudited first quarter results. As of June 30, 2024, we reported $353.3 million of free cash. The significant increase from March 31 reflects the net proceeds of our equity offering and strong free cash flow to equity generated, less, of course, the dividend paid during the June 30 quarter. Also, as we previously disclosed, we'll pay another $1 per share as an irregular dividend, or roughly $43 million in total dividends on or about August 21, 2024, to shareholders of record as of August 8.

Ted Young: With a debt balance at quarter end of $597.1 million, our debt to total book capitalization stood at 34.8% and our net debt to total book capitalization stood at 14.2%, or even lower if one includes our short-term government bond holding. Our weighted average cost of debt is about 4.7%, which is actually below the current one and three month SOFR rates. Our next refinancing event is not until the end of December 2026, which is the ball cap facility.

John Hadjipateras: At June 30, 2024, we reported $353.3 million of free cash.

Ted Young: With a debt balance of quarter end of $597.1 million, our debt to total book capitalizations that at 34.8% and our net debt to total book capitalization at 14.2% or even lower if one includes our short term government bond holdings. Related average cost of debt is about 4.7%, which is actually below the current one- and three-month SOFR rates. Our next refinancing event is not until the end of December 2026, which is the bulk at facility. We amortize about 13.4 million in principal per quarter, a roughly 53.5 million for the current fiscal year, which we consider quite manageable and largely in line with our book depreciation.

Speaker Change: A weighted average cost of debt is about 4.7%, which is actually below the current one and three month SOFR rates.

John Hadjipateras: Our next refinancing event is not until the end of December 2026, which is the Ball Cap Facility.

Ted Young: We amortize about $13.4 million in principal per quarter, or roughly $53.5 million for the current fiscal year, which we consider quite manageable and largely in line with our book depreciation. With well-structured and attractively priced debt capital, an undrawn $50 million revolver, and one debt-free vessel, coupled with our strong free cash balance, we have a comfortable measure of financial flexibility. We expect our cash costs per day for the coming year to be approximately $26,000 per day, excluding capital expenditures for special surveys and upgrades.

Ted Young: With restructured and attractively priced debt capital and an undrawn 50 million revolver and one debt-free vessel coupled with our strong free cash balance, we have a comfortable measure of financial flexibility. We expect our cash cost per day for the coming year to be approximately $26,000 per day, excluding capital expenditures for special surveys and upgrades.

John Hadjipateras: With well-structured and attractively priced debt capital, an undrawn $50 million revolver, and one debt-free vessel, coupled with our strong free cash balance, we have a comfortable measure of financial flexibility.

Speaker Change: We expect our cash costs per day for the coming year to be approximately $26,000 per day excluding capital expenditures for special surveys and upgrades. I will discuss those items in just a moment.

Ted Young: I will discuss those items in just a moment. For the discussion of our first quarter results, you may find it useful to refer to the investor highlights slides posted this morning on our website. I would also remind you that my remarks will include a number of terms, such as TCE operating days, available days, and adjusted EBITDA. Please refer to our filings for the definitions of these terms.

Ted Young: I will discuss those items in just a moment. For the discussion of our first quarter results, you may find it useful to refer to the investor highlights slides posted this morning on our website. What else reminds you that my remarks will include a number of terms such as TCE, operating days, available days, and adjusted EBITDAQ. Please refer to our filings for the definitions of these terms. I'm looking at our first quarter charting results. We achieved the total utilization of 90.4% for the quarter, with a daily TC per operating day at $55,000 to $28,000, yielding utilization adjusted TC or TC per revenue per available day, or about $49,900.

John Hadjipateras: For the discussion of our first quarter results, you may find it useful to refer to the investor highlights slides posted this morning on our website.

Tim Hansen: Looking at our first quarter charting results, we achieved a total utilization of 90.4% for the quarter, with a daily TCE per operating day of $55,228, yielding Utilization Adjusted TCE or TCE per revenue per available day of about $49,900. Though sequentially lower than last quarter's results, the TC still represents an attractive free cash flow. As our entire spot trading program is conducted through the Helios pool, their reported spot results are the best measure of our spot chartering performance.

Ted Young: Though sequentially lower than last quarter's results, the TC still represents an attractive free cash flowed equity. As our entire spot trading program is conducted through the Helios Pool, their reported spot results are the best measure of our spot chartering performance. For the June 30 quarter, the Helios Pool learned of TC at $50,000, $145 per day for its spot and COA voyages. On page four of our investor highlights material, you can see that we have five Dorian vessels on time charting within the pool, plus one MLL Energy vessel, indicating spot exposure of about 80% for the 30 vessels in the pool.

John Hadjipateras: Though sequentially lower than last quarter's results, the TC still represents an attractive free cash flow equity.

John Hadjipateras: As our entire spot trading program is conducted through the Helios Pool, their reported spot results are the best measure of our spot chartering performance. For the June 30 quarter, the Helios Pool earned a TC of $50,145 per day for its spot and COA voyages.

Tim Hansen: For the June 30 quarter, the Helios Pool earned a TC of $50,145 per day for its SPOT and COA voyages. That weight includes both spot fixtures and time charters in the Helios Pool only. Daily op-ex for the quarter was $10,618 excluding some small expenditures for dry docking-related expenses. That amount was up a bit sequentially from last quarter.

Ted Young: Turning to the quarter ending June 30, 2024, we currently have nearly 50% of the available, sorry, September 30, 2024, we currently have nearly 50% of the available days in the Helios Pool booked. Given the difficulty in predicting loading dates and their significant effect on revenue net recognition, we feel it more appropriate to share TC revenues over all available days in the pool for the quarter. On that basis, we see a TC in the range of $30,000 per day on a load-to-discharge basis in accordance with U.S. gap. That weight includes both spot fixtures and time chargers in the Helios Pool only.

John Hadjipateras: Turning to the quarter ending June 30, 2024, we currently have nearly 50% of the available, sorry, September 30, 2024, we currently have nearly 50% of the available days in the Helios pool booked.

Ted Young: The Aliyah Pexley quarter was 10,618, excluding some small expenditures for dry docking related expenses. That amount was up a bit sequentially from last quarter. Our time chartering expense for the four TC in vessels came in to a location to hold.

John Hadjipateras: Our time-shortening expense for the four T.C.N. vessels came in at $1,000,000.

John Hadjipateras: www.thevenusproject.com

Speaker Change: All locations on hold, please stand by, we're having technical difficulties, please remain on the line.

Unknown Executive: Please stand by. We're having technical difficulties. Please remain on the line.

Unknown Executive: Operator, we could move on to, we can move on to Tim Hansen and pick up Ted when he gets back online. I'm back on line now. Oh, um, okay, so do we have Ted online? We don't have that at this time.

John Hadjipateras: We can move on to Tim Hansen and pick up Ted when he gets back online.

Unknown Executive: Okay, so why don't we have Tim continue the presentation, and then we'll go back to Ted when he comes back. Tim? Okay. Yeah, look at that. Does it sound? It looks like Him is connected as well.

Tim Hansen: Tim? Okay.

Unknown Executive: Okay, then we were going to go on to Tim, but you can finish off from your end, Ted. All right, guys. This is the summertime technical issues.

Speaker Change: Alright guys, this is the summertime technical issues. How about Tim, you go ahead, please.

Unknown Executive: How about Tim?

Unknown Executive: You'll go ahead, please. Okay, just a minute. Just go for it.

Tim Hansen: Okay, just tell me when to start.

Tim Hansen: All right, good day, everyone. Tim Hansen here, Chief Commercial Officer. The quarter ending in June, the various 2020 fall, so on improving in the freight market compared to the quarter prior. The biggest improvements were seen in May when freight rates in the West were remains of those seen in early January. April and June were relatively weaker months; carrots arise mostly by external factors disrupting regular market movements, such as dynamic fixing when those sudden changes to the Panama Canal waiting time and an efficient balancing of vessels demand with the supply. Despite significant swings in the market months and months, the underlying demand for years you see shipping this firm.

Tim Hansen: All right, good day, everyone. Tim Hansen here, Chief Commercial Officer. The quarter ending on June 30th, 2024, saw an improvement in the freight market compared to the quarter prior. The biggest improvements were seen in May, when freight rates in the West were reminiscent of those seen in early January. April and June were relatively weaker months, characterized mostly by external factors disrupting regular market moves. Following the trends of the US Gulf export market, particularly in May, it could be seen that charters reacted to the strengthening West market, paying up on freight to ensure that VLGCs would be available for loading in the Arabian Gulf. When the Western premium eroded in June, the Middle East export market duly followed suit.

Tim Hansen: Go for it.

John Hadjipateras: Alright, good day everyone. Tim Hansen here, Chief Commercial Officer.

John Hadjipateras: The quarter ending in June 30th, 2024.

John Hadjipateras: April and June were relatively weaker months, characterized mostly by external factors disrupting regular market movements.

Tim Hansen: April and it's not a month usually analyzed at first glance. The market for the months is effective of commercial fixing decisions, which was made as early as in February and as close as a few days prior to the low-end days. The snapshot therefore covers more than one bunch of market considerations. This is explained by many market players initially anticipating a weaker than usual export demand from the US Gulf. And then on short notice, correcting outputs when it became clear that expert cargo was technical. Thus, cargoes and similar laycans were seen fixed at levels over 30 dollars per metric tons apart.

John Hadjipateras: The market for the munch is reflective of commercial fiction decisions, which was made as early as in February and as close as a few days prior to the loading date.

John Hadjipateras: This is explained by many market players initially anticipating a weaker than usual export demand from the U.S. Gulf. And then, on short notice,

Tim Hansen: And it speaks to the strength and the strong fundamentals of the yield to seed markets. May build on the strong fundamentals, but hit particularly high-fade levels because of a sudden, but very brief period of congestion in the Panama Canal. Auction crisis for transit rates levels not seen since December 2023, but the bargaining net was quickly resolved. Again, two weeks of sudden delays in the Panama Canal giving the market a pump. We click positively on the fundamentals of the yield to seed markets. But we may demonstrate how external factors can start on a short-term bounce in the markets.

Tim Hansen: But we may demonstrate how external factors can start a short-term bounce in the markets.

Tim Hansen: Two months in months exposing the flip sides throughout June, it must be emphasized that the best to use arbitrage was positive. Nonetheless, rising on value prices over the months, nominantly narrowed the arbitrage, showing the markets as channels were spoken for rates to find a goal. The boundary of prices was under rise due to a reduction in available spot cargoes. The reduction has been established by market players to downtime on the Chilis and miss a heat wave in the North America and capacity reduction in the US Gulf terminals in anticipation of the hurricane barrel at the end of June.

Tim Hansen: June was the month

Speaker Change: exposing the flip sides through our tube.

Speaker Change: Nominally narrowed the arbitrage showing the market as charters was looking for rates to find a floor.

Tim Hansen: June. Meantime, it can be mentioned that in the Arabian Gulf, Far East, Margaret followed the trench of the U.S. Gulf export market. Particularly in May, it could be seen that Charles reacted to the strengthening west Margaret, paying off on freight to ensure that the USGC's would be available for loading in the Arabian Gulf. When the Western premium eroded in June, the Middle East export market should be followed down months. Though the quarter showed significant the swings in the market over the months, the underlying red threat is one of robust demand for the Aussie, the Royalty in the Far East, and an over-nowed charge.

Speaker Change: that in the Arabian Gulf, Far East market.

Speaker Change: Follow the trends of the US Gulf export market. Particularly in May, it could be seen that charters reacted to the strengthening West market, paying up on freight to ensure that VLGCs would be available for loading in the Arabian Gulf.

Tim Hansen: Though the quarter showed significant swings in the market over the months, the underlying red thread is one of robust demand for VLG.

Tim Hansen: The sensitivity to available export from North America was made clear, but it should be noted that North America could be production and export continues to grow. Meantime, most market players anticipate a gradual return to congestion of the Panama Canal. Despite healthy fundamentals to real deceit demands, driven by growing tonn miles and robust import demands, they are challenged to the market in the short term. The reduced availability of export cargo from the U.S. Gulf, seen in June, has a considerably knock on effect, delaying of export terminals due to the hurricane bell, continued into July, and the decorations are forced mature by various terminals seriously hindered the optimization of export capacity.

Tim Hansen: for LPG in the Far East and an open arbitrage. The sensitivity to available export from North America was made clear, but it should be noted

Tim Hansen: that North America LPG production and export continue to grow. Meantime, most market players anticipate a gradual return to congestion of the Panama Canal.

Tim Hansen: Despite healthy fundamentals to VLTC demand, driven by growing ton-miles and robust import demands, there are challenges to the market in the short term. The reduced availability of spot cargoes from the US Gulf Sea in June has a considerably knock-on effect.

Tim Hansen: I missed a wide open Panama Canal with full utilisation, close to full utilisation, enabling China's circumversion against the USGC and increase the backlog of vessels. Delays at the terminals was an on-road complication.

Tim Hansen: amidst a wide-open Panama Canal with close to full utilization, enabling Chinese to converse near to the U.S. Gulf and increase the backlog of vessels.

Tim Hansen: Lastly, the tragic events from 10 days ago when I capsized talkboats and who choose to ship channel limited the market's corrective movements to normalise the export levels. Finally, returning to the demand side for via DC shipping, we're eager to see the effect of the seven odd opening of PDH plans in China. North American exports external factors are sized after the most powerful cost to grow, as is the congestion of the Panama Canal.

Speaker Change: Lastly, the tragic events from 10 days ago when I capsized tugboats in the Houston Ship Channel limited the market's corrective movements to normalize the export levels.

Tim Hansen: Finally, returning to the demand side for VLT...

Speaker Change: North American exports, external factors aside, are for the most part forecasted to grow, as is the congestion of the Panama Canal, thus we do remain positive on the medium to long-term prospects for our business.

Tim Hansen: Thus, we do remain positive on the medium to long-term prospects for our business.

Unknown Executive: With that, I will pass you back to check, Megan.

Speaker Change: With that, I will ask you to think back to checkmate.

John Lycouris: I think we'll go to Boris, and then Ted will come back. He's back online, but we'll have him wrap up at the after-John licorice. Thank you. Thank you, John, and thank you, Tim.

Unknown Executive: Thank you, John, and thank you, Tim. Our scrubber vessel savings for the second quarter of 2024. The objective is to propose process improvements and carbon reduction targets for the next phase, which begins in 2026. Recently, wind-assisted ship propulsion system technologies have attracted considerable interest in the maritime industry to potentially reduce fuel consumption and emissions from vessels. Its technology has a different method of harnessing the wind and producing thrust, necessitating a thorough analysis investigation to assess its potential and implications for safe operation and trade if installed. We will continue to monitor developments and results of this technology in the future. And now I pass it back to John Hadjipateras and to Ted Young.

John Lycouris: In continuation of our commitment to sustainability, Dorian LPG strives to improve the energy efficiency of its vessels with a focus on operational and technical performance, while continuing to follow and employ technological advances in innovations as they become commercially available to the marine sector. Our scrubber vessel savings for the second quarter of 2024 amounted to $2.8 million, or about $2,561 per day, metal wall scrubber operating expenses. A few differentials between a high shelf of fuel oil and a very low shelf of fuel oil average $136 per metric ton, while the differential of LPG as fuel versus VLSF oil very low shelf of fuel oil stood at about $217 per metric ton, which is quite advantageous for the dual fuel LPG engine vessels.

Speaker Change: Our scrubber vessel savings for the second quarter of 2024 amounted to $2.8 million or about $2,561 per day net of all scrubber operating expenses.

Speaker Change: [inaudible]

Speaker Change: versus VLSFO, very low sulfur fuel oil, stood at about $217 per metric ton, which is quite advantageous for the dual fuel LPG engine vessels.

John Lycouris: The total number of vessels fitted with proper unit in our fleet is 14, and we're about to retrofit another vessel in the current calendar quarter during the VLSF regular dry docking window.

John Lycouris: The CII project initiated by the MERSMAKINI Molly Center for Zero Carbon Shipping focuses on engaging with the IMO for a review process of the Carbon Intensity Indicator. The objective is to propose process improvements and carbon reduction targets for the next phase, which begins in 2026. The project group's goal is to provide clear recommendations to the IMO on necessary amendments and updates to the CII regulation for greater effectiveness in the next phase. The center presented the project's findings at the last MEPC meeting in March 2024 and anticipates preparing two papers for presentation at the next MEPC session in October, where it is hoped they are agreed for revising the CII regulation ahead of its 2026 amendment window.

Speaker Change: The objective is to propose process improvements and carbon reduction targets for the next phase which begins in 2026.

Speaker Change: The project group's goal is to provide clear recommendations to the IMO on necessary amendments and updates to the CII regulation for greater effectiveness in the next phase.

Speaker Change: for revising the CII regulation ahead of its 2026 amendment window.

John Lycouris: Dorin OPG is a mission ambassador to the center and has actively contributed to this project.

John Lycouris: The new bio-foundling management plans, which were adopted by the IMO by an IMO resolution last year, are currently being developed for the entire Dorin OPG fleet. The key points of these new bio-foundling management plans comprise of monitoring how and fuel performance caused by a fouling, taking actions to alleviate by a fouling, and finally logging the actions taken. This entails sure and crude training and familiarization of the bio-filing risk parameters and the actions which must be taken proactively and or reactively to mitigate adverse performance results. We expect to complete the bio-filing management plans for the whole fleet by the end of August 2024.

Speaker Change: The new biofouling management plans, which were adopted by the IMO, by an IMO resolution last year, are currently being developed for the entire Dorian LPG fleet.

Speaker Change: The key points of these new biofouling management plans comprise of monitoring how and fuel performance caused by biofouling, taking actions to alleviate biofouling, and finally logging the actions taken.

John Lycouris: The European Union has adopted fuel-review maritime regulation to promote the use of renewable fuel and low carbon fuels in maritime transport. This regulation aims to reduce greenhouse gas emissions by providing a clear legal framework for ship operators and fuel suppliers, thereby increasing the demand for and considering use of cleaner fuels in the maritime sector. The regulation sets targets for the greenhouse gas intensity of energy, use, and vessels. Companies are required to submit electronic monitoring plans that document the methods of monitoring and over-porting, which will be subject to third-party verification by a credit independent entity to ensure their accuracy.

Speaker Change: The European Union has adapted fuel EU maritime regulation to promote the use of renewable fuel and low carbon fuels in maritime transport.

Speaker Change: The regulation sets targets for the greenhouse gas intensity of energy used on vessels.

John Lycouris: Recently, wind-assisted ship propulsion system technologies have attracted considerable interest in the maritime industry to potentially reduce the fuel consumption and emissions from vessels. These systems use wind-powered to supplement vessel propulsion by creating our dynamic forces. by tapping into an unlimited free and zero carbon energy source, Wasp, as it is called, can significantly improve the efficiency of my time operations and support the industries decarbonisation goals. Various sailing technology concepts are being developed or have been developed, such as water sails, wing sails, hard sails, and suction sails. Its technology has a different method of harnessing the wind and producing thrust, and necessitating a thorough analysis investigation to assess their potential and implications to save operation and trade, if installed.

Speaker Change: These systems use wind power to supplement vessel propulsion by creating aerodynamic forces.

Speaker Change: Various sailing technology concepts are being developed, or have been developed, such as water sails, wing sails, hodge sails, and suction sails.

Speaker Change: Its technology has a different method of harnessing the wind and producing thrust, necessitating a thorough analysis and investigation to assess their potential and implications to safe operation and trade, if installed.

John Lycouris: We will continue to monitor developments and result of this technology in the future.

Speaker Change: We will continue to monitor developments and results of this technology in the future. And now I pass it back to John Hadjipateras and to Ted Young.

Ted Young: And now I pass it back to John Hadjipateras and to Ted Young. Thank you, John. I will quickly finish off my remarks with apologies for the technical issue. We'll be sure to pay our phone until next quarter.

Unknown Executive: Yeah, I'll quickly finish off my remarks with apologies for the technical issue. We'll be sure to pay our phone bill next quarter.

Ted Young: Thanks John , I will quit.

Ted Young: So very quickly, just to summarize, I believe I was cut off just talking about the Helios pool. The pool had roughly $11 million of cash on hand at the end of July, reflecting the dividend just paid. At a recap, we've now paid $13.50 per share in dividends since September 2021. Again, we want to remind you that these dividends are irregular. Our market in our business is not regular, and therefore our dividend policy is not either. Our total capital returned from dividends, open market repurchases, and our self-tender now totals $777 million gross. I'd like to note that the dividend payment reflected our strong earnings and cash flow generation, and at the same time, we were able to accomplish a strategic objective of raising additional equity capital to increase our financial flexibility as we look at fleet renewal and expansion.

Speaker Change: So very quickly, just to summarize, I believe I was cut off just talking about the Helios pool. The pool had roughly $11 million of cash on hand at the end of July, reflecting the dividend just paid.

Unknown Executive: To recap, we've now paid $13.50 per share in dividends since September 2021. Again, we want to remind you that these dividends are irregular. Our market and our business are not regular, and therefore, our dividend policy is not either.

Speaker Change: To recap, we've now paid $13.50 per share in dividends since September 2021. Again, we want to remind you that these dividends are irregular. Our market and our business is not regular and therefore our dividend policy is not either.

Speaker Change: Our total capital returned from dividends, open market repurchases, and our self-pender now totals $777 million gross.

Speaker Change: I'd probably like to note that the dividend payment

Ted Young: I think that underscores our board's commitment to balancing returns to shareholders with growth in the business.

John Hadjipateras: Again, we remain optimistic about the prospects for our businesses. My colleagues have outlined, and with that, I'll turn the call back to John Hadjipateras. Thank you, Ted, and apologies again to everyone who joined us. I hope we didn't distract too much from the very three, I think, very interesting presentations by my three colleagues with lots of material for you to hopefully digest.

Nikki: And Nicky, we're happy to take questions now if anyone has any.

Nikki: Thank you, and with the prepared remarks completed, we will now open the live for questions. If you would like to ask a question, please press the star and one on your telephone keypad. And we draw your question by pressing star two. Once again, to ask a question, please press the star and one on your telephone keypad.

Speaker Change: And we draw your question by pressing star 2. Once again, to ask a question, please press star and 1 on your telephone keypad. I will take our first question from Omar Nokta with Jeffries. Please go ahead.

Omar Nokta: I will take your first question from Omar Nocta with Jeffries. Please go ahead. Thank you. Hey guys, good morning. Just out of handful, hopefully not too many, but just at least a couple questions for you, you know, John, John H. You talked a bit about the swings we've seen in the VLGC market, especially in July. And just kind of wanted to touch a bit on that and get a sense of what's been driving it. I know Tim; you mentioned a variety of things. There's obviously the Panama Canal returning a bit to normal, that hurricane barrel and the Gulf, Middle East volumes.

Unknown Executive: Just to add a handful, hopefully not too many, but just at least a couple of questions for you. You know, John H., you talked a bit about the swings we've seen in the BLGC market, especially in July, and I just kind of wanted to touch on that and get a sense of what's been driving it. I know, Tim, you mentioned a variety of things. There's obviously the Panama Canal returning a bit to normal.

Omar Nokta: Thank you. Hey guys, good morning.

Omar Nokta: Just to add a handful, hopefully not too many, but just at least a couple of questions for you. You know, John H., you talked a bit about the swings we've seen in the BLGC market, especially in July , and just kind of wanted to touch a bit on that and get a sense of what's been driving it. I know, Tim, you mentioned a variety of things.

Unknown Executive: You've got Hurricane Beryl in the Gulf, and Middle East volumes. I guess I just wanted to ask if you could rank, maybe or highlight, you know, which of these issues would you say is the biggest, has had the biggest impact on the market, and what can you see kind of coming on the horizon that would alleviate it?

Tim Hansen: There's obviously the Panama Canal returning a bit to normal, you've got Hurricane Beryl in the Gulf.

John Hadjipateras: I guess I just wanted to ask if you could rank maybe or highlight, you know, which of these issues would you say is like the biggest has had the biggest impact on the market and what can you see kind of coming on the horizon that would alleviate that?

Speaker Change: Middle East Volumes. I guess I just wanted to ask if you could rank maybe or highlight...

Speaker Change: Which of these issues would you say has had the biggest impact on the market, and what can you see coming on the horizon that would alleviate that?

Tim Hansen: A million dollar question. Tim, I think you are the best of us to answer that one. Yeah, I think what, but the biggest factor is really the US Gulf production, which in June was hampered by these delays with the, with the killer problems and some portion of sure so. So we saw less exports, and because it's terminus is really running very close to full capacity. Once they have a problem, it takes them a long time to catch up again. So you can see that, basically, that you still have the cultural months after these events; you still have a backup of three to five days in most of the terminals, even though they're running on full capacity.

Speaker Change: $1,000,000 question. Tim?

Speaker Change: I think you are the best of us to answer that one.

Tim Hansen: Yeah, I think what...

Tim Hansen: The biggest factor is really the US Gulf production, which in June was hampered by these delays with the chiller problems and some force majeure.

Speaker Change: So we saw less exports, and because the terminal is really running very close to full capacity, once they have a problem, it takes them a long time to catch up again.

Speaker Change: Yeah, so basically that that you still have the

Speaker Change: Closer to a month after these events you still have a backlog of three to five days on most of the terminals. Even though they're running on full capacity now, it still takes them a long time to clear the backlog of ships and then catch up on the exports.

Tim Hansen: Now this is going to take some a long time to clear the backlog of ships and then catch up on the exports. And then this coincided in tune with, as I mentioned, the Panama Canal. From the delays are described in may suddenly coming back fully open and and everybody turning the ships around and hitting straight to the canal instead of via the capes, of course, gave a number of more. Ships in the in the US calls available in into lies. So that there was basically no overhang of ships from June into July, but the effects of what happened in June and then the barrel and the capesized.

Unknown Executive: And then this coincided in June with, as I mentioned, the Panama Canal, which had been delayed by the delays I described in May, suddenly coming back fully open, and everybody turning their ships around and heading straight for the canal instead of via the Cape, so that, of course, gave a number of more.

Speaker Change: And then this coincided in June with, as I mentioned, the Panama Canal.

Tim Hansen: from the delays I described in May suddenly.

Tim Hansen: Coming back fully open and everybody turning their ships around and heading straight for the canal instead of via the Cape. So that of course gave a number of more...

Tim Hansen: In July , there was basically no overhang of ships from June into July , but

Tim Hansen: But the effects of what happened in June and then the barrel and the capsized

Tim Hansen: Talk in the Houstonship Channel, of course, increased the problems. So I think we will see probably this again with the US Gulf. Being any problems hit in the US Gulf will take longer time to catch up and what we saw last year because they're closer to capacity now. On the panel on our sides, we have seen a swing heavily from, you know, over a few days basically from heavy congestion to fully open and. And I think long term or coming into the winter, I think we will see the trend. Have you seen the last few years that the Panama Canal will be heavily delayed from September, October onwards, throughout the winter and then clear up.

Tim Hansen: talk in the Houston Ship Channel, of course, increase the problems.

Tim Hansen: So I think we will see probably this again with the U.S. golf being any problems hit in the U.S. Golf will you know take longer time to to catch up than what we saw last year because they're closer to capacity now

Tim Hansen: On the Panama Canal side, we have seen it swing heavily from, you know, over a few days basically from heavy congestion to fully open.

Tim Hansen: And I think longer term, or coming into the winter, I think we will see the trends that we've seen the last few years, that the Panama Canal will be heavily delayed from

Tim Hansen: from September-October onward throughout the winter and then clear up early in the in the spring. Yeah

Tim Hansen: Early in the spring. Yeah.

Tim Hansen: Okay, thank you. Thank you for that. I just wanted it in the winter. No, no, oh, my goodness, I say it's ironic that in the winter we had delays caused by a freeze, and in the summer we have delays caused by the chiller, but which is because of the heat waves and the extremes of the weather are pretty impactful. Again, when you're running it close to full utilization and the export infrastructure. Yeah, now get a good point.

Tim Hansen: Okay. Thank you. Thanks for that. I just wanted to start going.

Tim Hansen: No, no, Omar, I was just going to say it's ironic that in the winter we had delays caused by a freeze and in the summer we have delays caused by the chiller, which is because of the heat waves.

Speaker Change: The extremes of the weather are pretty impactful. Again, when you're running it close to full utilization and the export infrastructure.

Tim Hansen: So just on that, then in terms of say that backlog that had been hampering activity from barrel and in the Gulf Coast, have we kind of started to work through that? Has it been improved from, say, where it was, I guess perhaps a month ago when that happened? Yeah, I mean, the terminals are fully open and running and producing, and they are back at the same export levels as they were and trying to then catch up and clear the ships that has been fixed already waiting for the to the lake. So we are seeing the delays, or the delays waiting for loading for the ships already booked, is coming down.

Omar Nokta: Yeah, now that's a good point.

Speaker Change: So just on that then, in terms of, say, that backlog that has been hampering activity from Barrel and the Gulf Coast, have we kind of started to work through that? Have we improved from, say, where it was, I guess, perhaps a month ago when that happened?

Unknown Executive: Yeah, I mean, the terminals are fully up and running and producing, and...

Speaker Change: Yeah, I mean, the terminals are fully up and running and producing and...

Speaker Change: They are back at the same export levels as they were and trying to then...

Speaker Change: Catch up and

Speaker Change: and the other ships that have been fixed already, waiting for the lake hand. So we are seeing the delays.

Speaker Change: The delay is waiting for loading for the ships already booked is coming down.

Tim Hansen: So that should allow, hopefully, the terminals to catch up within this month and more spot to be become available after that. So we expect to see their back on full swing now and then that should be possible to squeeze out more hours eventually touch with that everybody. Everything keeps running normal without any further incidents and problems. Got it. We had 10 more activities now for workers.

Omar Nokta: So that should allow, hopefully, the terminals to catch up within this month and more spot to become available after that. So we expect to see.

Speaker Change: They're back on full swing now and then that should be possible to squeeze out more. I was eventually touched with that. Everything keeps running normal without any issues.

Speaker Change: [inaudible]

Speaker Change: We have three more activities now for August .

Tim Hansen: Okay, yes, and maybe we'll start to see the reversal potential.

Speaker Change: Okay, yeah, so maybe we'll start to see the, you know, the reversal potentially. Ted, I, just before you got cut off a bit earlier...

Omar Nokta: Ted, I just before we got to put on it very early. Okay, go ahead, Omar. Yeah, yeah, Ted.

Speaker Change: Okay

Ted Young: So just before we got cut off in your earlier comments, you had been, I think you had mentioned about the bookings for the pool. The far into the quarter, and if I recall, it was roughly around 50% of available days. On that basis, around 30,000 or higher. That's right. Yeah, around 30,000. Okay, all right.

Omar Nokta: Go ahead, Omar. Yeah. Yeah, Ted. So just before you got cut off in your earlier comments, I think you had mentioned about the bookings for the pool thus far into the quarter. And if I recall, it was roughly around 50% of available days on that basis, around $30,000 or higher.

Unknown Executive: Okay, all right, and so this is like clearly this is this is, you know, beneath kindergarten math, but last quarter on the call, you had mentioned having you know booked a good chunk of Helios at about 40, and you end up realizing 50 with this 30,000. What kind of magnitude do you think that is?

Ted Young: That's right, yeah, around $30,000.

Ted Young: And so just, and this is like clearly this is, this is, you know, beneath, you know, kindergarten math, but last quarter on the call you had mentioned having booked a good chunk of Helios at about 40. You end up realizing 50 with this 30,000. Is what kind of negative do you think if you were to adjust as for like an operating day basis and recognizing that you said in your comments that it's hard to figure what the actual operating days will be. But any best guess is that 30 to come 40 where we're looking at 30 maybe becoming 33 and it kind of if you're willing to step out.

Ted Young: It's so hard to say, oh my; I'd like to think, you know, there is some upside to that number. You know, I will say that the upside last quarter surprised us to the upside. But, you know, it's really tricky to say. I think, you know, probably, well, I know you're focused on trying to get a good number for the quarter. I'd say more, but, you know, Tim's coming about activity picking up, you know, whether some of that may fall into this quarter and the rest of it may fall into the following quarter. So, I don't have a very good answer to your question, but I'd say at least the trend line seems to be above that, above that number.

Speaker Change: Last quarter surprised us to the upside but You know, it's it's really tricky to say I think

Omar Nokta: You know probably well, I know you're focused on trying to get a good number for the quarter

Speaker Change: I'd say more that, you know, Tim's comment about activity picking up, you know, whether some of that may fall into this quarter.

Speaker Change: and the rest of it may fall into the following quarter. So I don't have a very good answer to your question, but I'd say at least the.

Speaker Change: that the trend line seems to be above that above that number. How much we realize in this quarter from an accounting perspective versus next is a little tricky.

Ted Young: Now much we realize in this quarter, from an accounting perspective versus next is a little tricky.

Omar Nokta: I appreciate that, and sorry if I'm going long in my session, but just maybe one, one more now, and I'll let you go.

Speaker Change: Understood. I appreciate that, Ted, and sorry if I'm ...

Speaker Change: And I'm going along in my session, but just maybe one.

Ted Young: Just obviously, you know, in terms of the equity issuance back in June, any thoughts or anything you're willing to say in terms of kind of plans with that extra 80 million or so of proceeds, so obviously going on to balance you, but just anything you're willing to share on thoughts with that. There's nothing really that we can share; there's nothing active at the moment, but we've been looking at opportunities that we believe could take money to good use, and we'll keep you appraised if anything, when anything comes to fruition.

Speaker Change: One more now and I'll let you go just obviously, you know in terms of the equity issuance back in June Any any thoughts or anything you're willing to say in terms of kind of plans with that extra 80 million or so of proceeds? It's obviously got on the balance sheet, but just any anything you're willing to share on thoughts with that

Speaker Change: Bye-bye.

Speaker Change: There's nothing really that we can share, there's nothing.

Speaker Change: active at the moment, but we've been looking at opportunities that we believe could put money to good use.

Speaker Change: And we'll keep you appraised, if anything, when anything comes to fruition.

Omar Nokta: Okay, all right, well thank you. Thanks, John, Tim, Ted; appreciate it. Thanks, thank you, Omar, as always. Thank you.

Speaker Change: Okay. All right. Well, thank you. Thanks, John , Tim, Ted. I appreciate it.

Speaker Change: Thanks.

Speaker Change: Thank you, Omar, as always. Thank you.

John Hadjipateras: Thank you, and this will conclude our Q&A session. I will now turn the call over to John Hedgepateris for closing briefmarks. Well, thank you for coming on a summer day to listen to us and have a good rest of the session. Bye-bye.

Speaker Change: Thank you and this will conclude our Q&A session. I will now turn the call over to John Hadjipateras for closing remarks.

John Hadjipateras: Thank you for coming on a summer day to listen to us and have a good rest of the summer.

Operator: And this does conclude today's program. Thank you for your participation. You may disconnect at any time.

Unknown Executive: And these thoughts conclude today's program.

John Hadjipateras: Bye-bye.

Unknown Executive: Thank you for your participation. You may disconnect at any time.

Speaker Change: And this does conclude today's program. Thank you for your participation. You may disconnect at any time.

John Hadjipateras: Theodore Young, John Lycouris, John Hadjipateras, Unknown Executive, Tim Hansen

John Hadjipateras: [inaudible]

John Hadjipateras: [inaudible]

Unknown Executive: Theodore Young, John Lycouris, Tim Hansen, Theodore Young, John Lycouris, Tim Hansen, Unknown Executive, Climent Molins, Dorian LPG Ltd