Q1 2026 Dorian LPG Ltd Earnings Call

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Leo: Please stand by. Your program is about to begin. If you need assistance on today's program, please press star zero. Good morning and welcome to the Dorian LPG Ltd. first quarter 2026 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 is being recorded. Additionally, a live audio webcast of today's conference call is available on Dorian LPG Ltd.'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.

Please stand by your program is about to begin if you need assistance, on today's program, please press star zero.

Good morning, and welcome to the Dorian LPG. First quarter 2026 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 is being recorded.

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

I would now like to turn the conference over to Ted Young Chief Financial Officer.

Theodore Young: Thank you, Leo. Good morning, everyone, and thank you all for joining us for our first quarter 2026 results conference call. With me today are John Hadjipateras, Chairman, President and CEO of Dorian LPG Ltd., John Lycouris, Head of Energy Transition, and Taro Rasmussen, Vice President Chartering. As a reminder, this conference call webcast and a replay of this call will be available through August 8, 2025. 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.

Thank you Mr. Young, please go ahead.

Thank you, Leo. Good morning, everyone. And thank you all for joining us for our first quarter 2026 results conference call.

With me today are John hudman Terrace chairman president and CEO of Dorian LPG, limited John lurrus head of energy, transition and Tara Rasmus and vice president chartering. As a reminder this conference call webcast and a replay of this call will be available through August 8th 2025.

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.

Theodore Young: 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. Additionally, let me refer you to our unaudited results for the quarterly period ended June 30, 2025, that were filed this morning on Form 8-K. We expect to file our 10-Q on August 5, 2025. In addition, please refer to our previous filings on Forms 10-K, where you'll find risk factors that could cause actual results to differ materially from these forward-looking statements. Finally, I would encourage you to review the investor highlights slides posted this morning on our website. With that, I'll turn over the call to John Hadjipateras.

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 restaurants run certainties materialize, or should underlying assumptions or estimates prove to be incorrect. Actual results may vary materially from those we express today.

Additionally let me refer you to our un audited results for the quarterly period. End of June 3020 that were filed this morning on Form 8K.

We expect to file our 10-Q on August 5, 2025.

in addition, please refer to our previous filings on forms 10K, where you'll find risk factors that could cause actual results to differ materially from these forward-looking statements,

Finally, I would encourage you to review the investor highlights slides posted this morning on our website with that. I'll turn over to the call to John hajima. Terrace.

John Hadjipateras: Hello, and thanks for joining us. My colleagues, Theodore Young, John Lycouris, and Taro Rasmussen, will provide you detailed comments on our financial results, our emission reduction and operational progress, and our market outlook. First, I would like to highlight the following. Our dividend of $0.60 per share, totaling $25.6 million, reflects our commitment to returning capital to shareholders in a manner that is aligned with market conditions and our policy of distributing earnings prudently. This will be our 16th dividend payment, bringing total dividends distributed to over $665 million and total capital of more than $900 million returned to shareholders. In the second quarter of the year, the market proved resilient. Freight risk strengthened, supported by healthy arbitrage economics and geopolitical tensions in the Middle East. Uncertainty caused by tariff escalation displaced ships from the U.S. Gulf to the Middle East and sent more cargoes to India.

Hello and thanks for joining us.

My colleagues, Ted John and Taro will provide you detailed comments on our financial results, our emissions reduction and operational progress, and our Market Outlook.

but first, I'd like to highlight the following

Our dividend of $0.60 per share, totaling $25.6 million, reflects our commitment to returning capital to shareholders in a manner that’s aligned with market conditions and our policy of distributing earnings prudently.

This will be our 16th dividend payment bringing total dividends distributed to over 665 million and total capital of more than 900 million returned to shareholders.

And the second quarter of the year, the market proved resilient.

Freight rates strengthened, supported by healthy arbitrage, economics, and geopolitical tensions in the Middle East.

John Hadjipateras: While a U.S.-mediated ceasefire between Israel and Iran in late June brought some stability, charters remained cautious. U.S. LPG exports continued their multi-year growth trend, facilitated by ongoing expansion at U.S. fractionation plants and export terminal capacity, as well as high NGL output. Middle Eastern exports were also higher following the partial unwinding of OPEC Plus quotas and increased production from new regional gas projects. Taro Rasmussen will elaborate on the fundamentals of the VLGC market and on our outlook. On the operational side, we completed 10 of our 12 dry dockings planned for 2025. John Lycouris will provide an update on our initiatives and our decision to convert some of our VLGCs to facilitate the carriage of ammonia. I will pass you on to Theodore Young for our quarterly financial overview.

Uncertainty caused by tariff escalation displaced ships from the U.S. Gulf to the Middle East and sent more cargoes to India.

while a US,

Mediated ceasefire between Israel and Iran and late. June. Brought some stability. Charter has remained cautious.

U.S. LPG exports continue with their multi-year growth.

Growth trend facilitated by ongoing expansion at U.S. fractionation plants and export terminal capacity, as well as high NGL output.

Middle Eastern exports were also higher following. The partial unwinding of OPEC, plus quotas, and increased production from new Regional Pro gas projects.

Tal Taro will elaborate on the fundamentals of the VGC market and on our Outlook.

On the operational side, we completed 10 of our 12 dry dockings planned for 2025.

On our initiatives and our decision to convert some of our vgc's to facilitate the carriage of ammonia.

And now, I pass you on to Ted for our quarterly financial overview.

Theodore Young: Thanks, John. My comments today will focus on our unaudited first quarter results, our financial position, liquidity, and of course, capital allocation. For the discussion of our first quarter results, you may find it useful to refer to the investor highlight slides posted this morning on our website. Remember that my remarks will include terms such as TCE, available days, and adjusted EBITDA. Please refer to our filings for the definitions of these terms. Looking at our first quarter chartering results, we reported a TCE per available day of $39,726, which was a good result despite our heavy dry dock schedule during the quarter that resulted in some 195 days that were not available for revenue generation. I would note that our June results were much stronger than the previous two months, which is indicative of the stronger market environment on which Taro Rasmussen will elaborate.

Thanks John.

My comments today will focus on on our un audited. First quarter results, our financial position liquidity and of course, Capital allocation

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

Remember that my remarks will include terms such as TC available days and adjusted IBA, please refer to our filings for the definitions of these terms.

Looking at our first quarter of children results, we reported a tce per available day of 39,726 which was a good result. Despite our heavy dry dock schedule during the quarter that resulted in some 195 days that were not available for Revenue generation.

Theodore Young: Also, the Q1 results were sequentially stronger than the March 31 quarter. The Helios pool reported spot rates for the quarter of about $37,700 and approximately $38,900 across the pool, underscoring the strength of our charter out portfolio in the pool. On page four of our investor highlights materials, you can see that we have two Dorian LPG Ltd. vessels on time charter within the pool, indicating spot exposure of just over 93% for the 29 vessels in the pool. The forward bookings for the quarter ending September 30, 2025, reflect a strong increase in rates since late May into June. We currently estimate that we have fixed approximately 70% of the pool's fixable days in the quarter at a TCE in excess of $67,000 per day. The rate includes spot fixtures and time charters in the pool.

I would note that our June results were much stronger than the previous 2 months months, which is indicative of the stronger Market environment, in which Tara will elaborate.

Also the q1 results for sequentially stronger than the March 31 quarter.

The heliosphere reported spot rates for the quarter of about 37,700 and approximately 38,900 across the pool, underscoring the strength of our charter out portfolio in the pool.

In on page 4 of our investor highlights materials, you can see that we have 2 Dorian vessels on time charter within the pool, indicating spot exposure of just over 93% for the 29 vessels in the pool.

The four books for the quarter ending September 30, 2025, reflect the strong increase in rates since late May into June.

We currently estimate that we have fixed approximately 70% of the pool.

fixable days in the quarter at A T tce and excess of 67,000 per day.

Theodore Young: As you know, loading dates, disport options, and COAs can all cause the estimates we quote during these calls and the rates actually realized to vary. Daily OPEX for the quarter was $10,108, excluding dry docking related expenses, which was down meaningfully rather, from the March quarter's $11,001. Spares and stores costs led the decline. This quarter saw an over $1,300 per day difference between reported OPEX that includes expense dry docking amounts and our preferred measure of OPEX that excludes those costs. The non-capitalized dry docking expenses total about $2.6 million and equated to $0.06 per share for the quarter. Our time charter in expense for the four TCE vessels came in right around $29,000 per day, which compares favorably to our fleet-wide TCE for the quarter, showing the profitability of our charter-in program. Dorian LPG Ltd.

The rate includes spot fixtures and time charters in the pool.

as, you know, loading dates, dysport, options, and coas can all cause the estimates, we quote, during these calls, and the rates actually realized to vary

Daily Opex for the quarter was 10,108 excluding dry docking related expenses which was down marginally meaningfully rather from the March quarters 1 1, 0 1.

Spares and stores costs. Led the decline.

This quarter saw in over 1,300 per day. Difference between reported Opex, that includes, uh, expense dry docking amounts and our preferred measure of Opex that excludes those cost.

The nine Capitol dry docking expenses total about $2.6 million and equated to $0.06 per share for the quarter.

our Tom trigger, inexpensive for the 4T and vessels came in right around 2,000 per day, which conspires it compares favorably, to our fleetwide TC, for the quarter,

Theodore Young: recently chartered in the Crystal Asteria, a dual-fuel VLGC that will trade in the Helios pool. Going forward, we anticipate the quarterly TCN expense will be approximately $14-15 million. Total G&A for the quarter was affected by bonuses booked during the quarter of $8.3 million or $0.19 a share. Excluding the bonuses and the non-cash compensation expense, cash G&A was around $6.5 million. For the September 30 quarter, we estimate that non-cash compensation expense will increase by roughly $3 million over this quarter to reflect the impact of new share grants. That amount is only for the coming quarter. Our reported adjusted EBITDA for the quarter was $38.6 million, but adjusting further for the bonuses and the expense dry docking amounts, it would have been $49.5 million. Total cash interest expense for the quarter was $7.1 million, which is marginally down sequentially from the prior quarter.

Showing the profitability of our Charter in program.

During recently chartered in the crystal hysteria a dual fuel d uh dual fuel vlgc, that will trade in the Helios pool.

Going forward, we anticipate the quarterly TCN expense will be approximately $1.415 billion.

Total GNA for the quarter was affected by bonuses, booked during the quarter of 8.3 million or 19 cents a share.

Including the bonuses and the non-cash compensation, expense cash G&A was around $6.5 million.

For the September 3rd 30 quarter, we estimate that non-cash compensation expense will increase by roughly million dollars over this quarter to reflect the impact of new share grants. Again that amount is only for the coming quarter.

A reported adjusted IBA for the quarter was 38.6 Million.

Uh, but adjusting further for the bonuses and the expense dry docking amounts, it would have been 49.5 million,

Theodore Young: You should note that we capitalized $500,000 of interest expense on our new building, which reduced the amount on the face of the P&L. Principal amortization remains steady. As John Hadjipateras mentioned, looking ahead, our dry dock program is largely complete, although we expect to dry dock two more vessels this quarter. Total dry docking costs for those two vessels and remaining costs for dockings completed in the April-June quarter are expected to be between $6.5 million and $7 million. We currently estimate that roughly a third of that amount will be expensed as OpEx. After that, we will only have shorter in-water surveys to complete. We do have two remaining progress payments on our new building in September and December 2025, each roughly $12 million. At June 30, 2025, we reported $278 million of free cash.

Total cash, enters expense for the quarter was 7.1 million, which is marginally down sequentially from the prior quarter.

And you should note that we capitalized 500,000 of interest expense on our new building which reduced the amount on the face of the p&l.

Principal amortization remains steady.

As John mentioned looking at our Dry Dock program is largely complete. Although we expect to dry dock 2 more vessels this quarter.

Total dry docking costs for those 2 vessels. And remaining costs for docking is completed in the April June quarter or expected to be between 6 and 12 and 7 million.

We currently estimate the roughly, a third of that amount will be expensed as Opex.

after that, we only have shorter in-water, surveys to complete

Each roughly 12 million.

Theodore Young: Cash flow during the quarter was affected by our dry docking cash outlays and the foregone revenue, but we still finished with a very healthy cash balance. As disclosed this morning, we will pay in a regular dividend of $0.60 per share, or roughly $25.6 million in total, on or about August 27 to shareholders of record as of August 12. Including this dividend, we have returned over $900 million in cash through dividends, a self-tender offer, and open market repurchases. With a debt balance at quarter end of $543.5 million, our debt-to-total book capitalization stood at 34.4% and our net debt-to-total cap at 16.8%. We have well-structured and attractively priced debt capital with an all-in cost of about 5.1%, an undrawn $50 million revolver, and one debt-free vessel. Coupled with our strong free cash balance, we have a comfortable measure of financial liquidity.

At June 30, 2025, we reported $278 million of free cash.

Cash flow during the quarter was affected by our dry docking. Cash outlays in the foregone Revenue but we still finish the very healthy cash balance as disclosed this morning. We'll pay in a regular dividend of 60 cents per share or roughly 25.6 million in total honor about August 27th to shareholders of record as of August 12th.

Including this dividend, we've returned to 900 million in cash. Through dividends of South tender offer, an open market repurchases.

With a debt balance at the quarter-end of $543.5 million, our debt to total capitalization is set at 34.4%, with our net debt to total capitalization at 16.8%.

We have well structured and attractively priced debt Capital with an all-in cost of about 5.1% and undrawn, 50 million revolver and 1 debt-free vessel.

Theodore Young: We expect our cash cost per day for the coming year to be approximately $26,000 per day, excluding the remaining capital expenditures for dry docking and the progress payments on our new building. Including the irregular dividend to be paid this month, we have paid over $665 million of dividends and have generated net income of $652 million over the same time period. Our board-based current earnings, our near-term cash forecast, future investment needs, and the overall market environment are among a number of factors in making its determination of the appropriate level, if any, for our dividends. The $0.60 per share dividend reflects a constructive market view, reflecting our forward bookings, the more limited impact of dry dockings, and a somewhat more stable global trade environment.

Coupled with our strong, free cash balance. We have a comfortable measure of financial liquidity.

We expect our Co cash costs per day for the coming year to be approximately 26,000 per day, excluding the remaining Capital expenditures for dry docking and the progress payments on our new building.

Including me a regular dividend to be paid this month. We have paid over 665 million of dividends and have generated net, income of 652 million.

Over the same time, period.

Our board waived current earnings are near-term cash forecast. Future investment needs in the overall Market environment. Among a number of factors and making its determination of the appropriate level if any for our dividends.

Theodore Young: We can continue to be on the lookout for fleet renewal opportunities and will be judicious with our free cash flow, working to balance shareholder distributions, debt reduction, and fleet investment. With that, I'll pass it over to Taro Rasmussen.

the 60 Cent per share dividend, reflects a constructive Market uh view reflecting our forward booking, the more limited impact of dry dockings and if someone more stable global trade environment,

We can continue to be on the lookout for fleet renewal opportunities, and we'll be judicious with our free cash flow, working to balance shareholder distributions, debt reduction, and fleet investment with that. I'll pass it over to Taro Rasmussen.

Taro Rasmussen: Thank you, Ted. Good day, everybody, and thank you for dialing in. The quarter ending June 30th, 2025, witnessed dramatic impacts from the geopolitical situation for some weeks, but mostly saw a steady rise in freight markets. The primary geopolitical factor creating freight market volatility, albeit briefly, was the announcement of near-global tariffs by the United States. Bombing campaigns in the Middle East had several consequences but did not rattle the VLGC market to the extent of Liberation Day. Middle East hostilities did restrict willingness of several VLGC players to call Middle East load ports, and the restricted Red Sea transit has kept longer vessel transits in place. VLGC market fundamentals remained firm despite the external impacts of tariffs and hostilities. NGL production in the United States continued to grow, and the inventory build season began as expected.

Thank you, Ted, and good day, everybody. And thank you for dialing in.

The quarter ending June 30th 2025 witnessed dramatic impacts from the geopolitical situation for some weeks, but mostly saw steady rise in Freight markets.

The primary geopolitical factor creating Freight Market volatility. I'll be it briefly was the announcement of near Global terrorists by the United States.

Bonding campaigns in the Middle East. Had several consequences.

But did not rattle. The BGC market to the extent of Liberation Day.

Middle East hostilities did restrict willingness of several VGC, players to call middle east load ports.

And the restricted, Red Sea Transit has kept longer vessel transits in place.

VGC market fundamentals remained firm despite the external impacts of terrorism and hostilities.

Taro Rasmussen: Other than a two-week period following the tariff tit for tat, increased supply of LPG lowered Mont Bellevue prices and supported an open west-to-east arbitrage. U.S. exports of LPG on VLGCs remained stable for the quarter, with monthly exports in the 4.6 million to 4.8 million tons per month range. Middle Eastern exports continued in line with forecasts, and LPG as a commodity continued to find outlets in the Far East despite some rumblings about pet-can profitability. With benefit of some perspective, several things are notable. Firstly, the April 2nd announcement of tariffs jolted many markets. The VLGC freight market saw approximately a halving in the Baltic indices within four days. The correction was likewise swift, with most losses recovered within the next five working days. Secondly, the VLGC market reacted quickly to the shock, enabling the recovery in freight rates.

NGL production in the United States continue to grow and the inventory builds season began as expected.

Other than a two-week period, following the tariff hit for tat, increased supply of LPG lowered Mont, Bellevue prices and supported an open west-to-east arbitrage.

US exports of LPG on vgc's, remains stable for the quarter, with monthly exports in the 4.6 million to 4.8 million tons per month range.

Middle Eastern exports continued in line with forecasts.

And LPG, as a commodity, continued to find outlets in the Far East despite some rumblings about pecan profitability.

With the benefit of some perspective, several things are notable.

Firstly, the April 2nd announcement of tariffs jolted many markets.

The VGC Freight. Markets are approximately a having in the Baltic indices within 4 days.

The correction was likewise swift, with most losses recovered within the next 5 working days.

Taro Rasmussen: Chinese LPG imports over the quarter were in line with expectations despite a dramatic fall in U.S. origin product. The average monthly import of U.S. origin LPG in China was about 500,000 metric tons over the quarter, compared to the average monthly import of about 1.5 million tons in the eight preceding months back to August 2024. Imports of U.S. origin product duly increased in various other countries, such as Japan and India. The end June-July period typically sees a lull in activity, with lower freight rates. This has not been the case in 2025. Adaptability by the VLGC industry in reaction to the tariffs likely preserved market profitability, helped by the inefficiencies arising from the need to recalibrate trade flows. Increasing tensions in the Middle East through June also contributed to a steady but firming freight market during the quarter.

Secondly, VGC Market, reacted, quickly to the shock and enabling the recovery and Freight rates.

Chinese LPG Imports over the quarter were in line with expectations. Despite a dramatic fall in US origin product.

The average monthly import of us origin, LPG, in China was about 500,000 metric tons over the quarter.

Compared to the average monthly import of about 1.5 million tons in the 8 months. Back to August 2024

Such as Japan and India.

The end June July period, typically sees a low inactivity with lower Freight rates.

This has not been the case in 2025.

Adaptability by the VGC industry in reaction to the tariffs likely preserved Market profitability helped by the inefficiencies arising from the need to recalibrate trade flows.

Taro Rasmussen: With the risk of direct hostilities increasing, fewer vessel operators were competing for Middle East cargoes. Furthermore, the Red Sea sailing passage was again unsafe for almost all vessels after a period of looking realistic. In January through May, four to five VLGCs transited the Red Sea late in a month, but only one in June. This inefficiency added ton miles to U.S., Algerian, and Red Sea LPG exports. Lastly, the exemption of restrictions on ethane exports from the U.S. to China meant that ethane carriers did not need to enter the VLGC market. Despite the brief shock to the freight market following the announcement of tariffs, the quarter ending June 30, 2025, avoided the otherwise seasonal summer lull. The Eastern market improved about 46% over the quarter, and the Western market improved almost 16%.

Increasing tensions in the Middle East through June also contributed to a steady but firming freight market during the quarter.

With the risk of direct hostilities, increasing.

Fewer vessel operators were competing for Middle East cargos.

Furthermore, the Red Sea sailing passage was again. Unsafe for almost all vessels after a period of looking realistic.

In January, through May.

Four to five VGCs transited the Red Sea laden a month.

But only 1 in June.

This inefficiency added ten miles to our Algerian and Red Sea LPG exports.

Lastly, the exemption of restrictions on ethane exports from the US to China meant, that ethane carriers did not need to enter the vlgc market.

Despite the brief shock to the Freight Market following the announcement of tariffs, the quarter ending June 30th 2025 avoided, the otherwise seasonal summer low.

Taro Rasmussen: Expectations for the rest of the year, furthermore, remain positive, with a limited delivery schedule of new builds and roughly 13% capacity expansion at U.S. Gulf terminals. Thank you. I will now pass over to Mr. John Lycouris.

The Eastern Market improved about 46% over the quarter, and the Western Market improved almost 16%.

Expectations for the rest of the year. Furthermore remain positive with a limited delivery schedule of new builds and roughly 13% capacity expansion at us golf tournaments.

Thank you. I will now pass over to Mr. John lurrus

John Lycouris: Thank you, Taro. At Dorian LPG Ltd., we are committed to continually enhancing our energy efficiency and promoting the sustainability of both our operations and our vessels. Our scrubber vessel savings for the first fiscal quarter of 2026 amounted to $961,000, or $813 per calendar day net of all scrubber operating expenses. The savings were impacted by the dry docking of several vessels during this quarter, as well as by the market volatility caused by global tariff announcements and geopolitical events. Fuel differentials between high sulfur fuel oil and low sulfur fuel oil averaged $55 per metric ton, while the differential of LPG as fuel versus low sulfur fuel oil stood at $71 per metric ton, making LPG economically attractive for our dual-fuel vessels. We now operate 16 scrubber-fitted vessels and five dual-fuel LPG vessels.

Thank you, Tara.

Adorian LPG, we are committed to continually enhancing our Energy, Efficiency, and promoting the sustainability of both our operations in our vessels.

Ashra vessel savings for the first fiscal quarter of 2026 amounted to 96100 or 813 per calendar day. Net of all scrubber operating expenses

The savings were impacted by the dry docking of several vessels during this quarter, as well as by the market, volatility caused by global tariff announcements and geopolitical events.

Fuel differentials between high, sulfur fuel oil and low, sulfur fuel oil average 125 dollars per metric tonne. While the differential of lpgs fuel versus low, sulfur fuel oils to that 71 dollars per metric. Ton making LPG economically attractive for a dual fuel vessels.

John Lycouris: Since the start of this calendar year, we completed 10 vessels' special survey combined with their dry docking. We have a further two vessels scheduled for special survey and dry dock in the fourth quarter of 2025. There are four vessels that had dry dock last year during the third and fourth quarters of 2024, which are now due to pass their special survey within this calendar year. This dry docking program was structured to ensure that all necessary repairs, class surveys, and retrofits were consolidated within the vessels' mandated special survey and dry dock periods. The approach minimized the risk of vessels requiring unscheduled dockings at a later time. Continuous monitoring of vessel performance has allowed emerging issues to be addressed proactively during scheduled dry dockings, reducing the likelihood of future interruptions. It ensures technical and operational continuity with optimized fleet availability throughout the year.

We now operate 16 scrubber-fitted vessels and 5 dual-fuel LPG vessels.

Since the start of this calendar year, we completed 10 vessels.

Special survey.

Combined with a dry docking. We have a further 2 vessels scheduled for special survey and Dry Dock in the fourth quarter of 2025.

There are 4 vessels that had Dry Dock last year. During the third and fourth quarter of 2024, which are now due to past their special survey within this calendar year.

This dry docking program was structured to ensure that all necessary repairs, class surveys, and retrofits were consolidated within the vessel's mandated special survey and dry dock offers.

The approach, minimizes the risk of virtual is requiring a scheduled draw dockings at the later time.

Continuous monitoring of vessel performance has allowed emerging issues to be addressed proactively.

John Lycouris: As previously reported, the third VLGC vessel to carry ammonia cargo is planned to be upgraded during its dry docking slot in the fourth quarter of 2025. Once this last vessel is completed, five VLGC vessels in our Dorian LPG Ltd. fleet will be able to carry ammonia cargoes, which includes our new building VLGC vessel, which delivers in 2026. We believe the ammonia cargo capability upgrade enhances the fleet's commercial optionality and its readiness for employment when the first ammonia projects develop and the large ammonia cargo markets are established. Our noted fleet AR for the second quarter of 2025 was 8.5% better than the IMO 2025 target. We expect further improvement in the third quarter and fourth quarters as the dry dockings and the installation of energy-saving devices on recently completed vessels are fully reflected.

During scheduled dry dockings, we are reducing the likelihood of future interruptions. This ensures technical and operational continuity with optimized fleet availability throughout the year.

As previously reported, the third vlgc vessel to carry ammonia. Cargo is planned to be upgraded during its dry docking slot in the fourth quarter 2025

Once this last vessel is completed 5 vlgc vessels. In our Dorian pltc LPG Fleet will be able to carry ammonia carers

which includes our new building the LGC vessel, which delivers in 2026,

We believe the ammonia cargo capability upgrade and enhances the fleet commercial optionality, and its Readiness for employment. When the first ammonia projects developed, and the large ammonia cargo markets are established.

And better than the IMO 2025 Target.

John Lycouris: AR is the annual efficiency ratio metric, which calculates the carbon intensity of our vessels' operations. The Dorian LPG Ltd. fleet exceeds the IMO's EEXI and CII regulations. CII, in particular, is the carbon intensity index, which assesses the operational efficiency of our vessels and their contribution to greenhouse gas emissions. An in-house developed decarbonization planning tool models IMO CII ratings, EU, and IMO regulatory scenarios across our fleet by incorporating projected ESD installations, alternative fuel mixes, and differing operational profiles. Finally, we have developed the compliance cost planner for ETS, FuelEU, and the IMO Net Zero frameworks. This tool enables real-time forecasting of compliance costs, penalties, and carbon level impacts, supporting the creation of decarbonization strategies both at the vessel level and across the fleet. Our continued focus on energy and emission savings reflects our belief that environmental responsibility aligns with long-term value creation for our shareholders.

We expect further Improvement in the third quarter and fourth quarters as the dry dockings. And the installation of energy saving devices on recently, completed vessels are fully reflected

R is the annual efficiency ratio metric, which calculates the carbon intensity of our vessels operations.

The Dorian LPG, Fleet exceeds, the Imo's e, exi and CII regulations.

CI in particular, is the carbon intensity index, which assesses the operational efficiency of our vessels and their contribution to greenhouse gas emissions.

And in-house developed, the carbonization planning tool models, IMO CI, ratings EU. And I am more regulatory scenarios across our Fleet by incorporating projected ESD, installations, alternative fuel, mixes and differing operational profiles.

Finally, we have developed the compliance cost planner.

For ETFs, fueling you and the IMO Net Zero Frameworks.

This tool enables real-time forecasting of compliance costs, penalties and carbo level impacts supporting the creation of the carbonization strategies, both at the vessel level and across the fleet.

John Lycouris: Now I would like to pass it over to John Hadjipateras for his final comments.

A continued focus on energy and emission savings reflects our belief that environmental responsibility aligns with long-term value creation for our shareholders.

And I would like to pass it over to Jon Heder for his final comments.

John Hadjipateras: Thank you very much. Thank you for everyone who has checked in today. I do not think we have any questions. If we do not, I leave you with it and wish you a happy rest of the summer until next time.

Thank you very much. Thank you for um everyone who's uh

um,

checked in today. I don't think we have any questions.

Um so if we don't, I leave you with it and uh wish you a happy rest of the summer. Until next time,

Leo: For interruption, gentlemen, we do have a question. Once again, if you would like to ask a question, please press star one on your telephone keypad. To remove yourself from the queue, you may press star two. We will take a question from Omar Nokta of Jefferies. Your line is open.

And part of the eruption gentlemen, we do have a question. Um, once again, if you like, if you'd like to ask a question, please press star 1 on your telephone keypad to remove yourself from the queue. You may press star 2. We'll take a question from Omar nocta of Jeffrey's. Your line is open.

Omar Nokta: Thank you. Sorry about that. I hit star one too late in the call. Thanks for the update. I did have a couple of questions, just a bit more on the macro side of the business. Clearly the market's gotten quite a bit stronger. I just wanted to ask, and you touched on this in your comments earlier, but just when we think about how the second quarter developed, it was obviously quite erratic with tariffs. We didn't just recover in terms of VLGC spot rates. They've actually really strengthened, and it's almost like things have kickstarted into high gear. When we compare it to, say, last year, where your earning basically doubled last year's spot rate at this time, could you maybe just give a sense of what's driving this market? What has really propelled it from where it was earlier this year?

Thank you, sorry about that. I hit star 1, too, late, Nicole. Um, thanks for the update. I did have a couple of questions just a bit more on the, you know, the macro side of the business, um, you know, clearly the Market's gotten, you know, quite a bit stronger. I just wanted to ask if you touched on this in your comments earlier. But just when we think about how the second quarter developed, it was obviously quite erratic. Why?

Tariffs. Um, but we didn't just recover in terms of the LGC spot rates, they've actually really strengthened and it's almost like things have kickstarted into high gear and when we compare it to say last year, where your earning basically, you know, double uh, last year's spot rate at this time, could you maybe just give a sense of what's driving this Market? What is really propelled it, um, uh, from where it was, um, earlier this year.

John Hadjipateras: Sure. Happy to, Omar, and very happy to hear your voice. I was hoping that we'd hear you. I am going to give you Taro Rasmussen to answer your question because I think he can make the case and give you on the field feedback better than I can.

Sure, happy to, uh, Omar and very happy to hear your voice. I was getting, I was hoping that we'd hear you, um, I I I'm going to give you Taro to to to, um, answer your question because I think he can, he can make, he can make the case and, and give you, um, on on, on, on the field. Uh,

Omar Nokta: Great. Thank you, John. Thank you for the question, Omar. I believe the answer lies in the fundamentals, primarily with the strength of the U.S.'s ability to produce NGLs and get it exported. Is it different to last year? It is the growth, and it shows that the balance in the market is easily made positive with incremental growth. Long may that continue. I think it is a very healthy reflection of the wider market that using experiences from the past, whenever there has been trade barriers between the U.S. and China, industry players were able to reflect on past learnings, adapt them, and get trade going back to normal as soon as possible made all of this possible. Because if the trade flows could not realign, you would not be able to take advantage of the healthy fundamentals.

Back of, you know, feedback the better than I can.

Great. Thank you, John. Thank you for the question Omar. I

I believe the answer lies in the the fundamentals, uh, primarily

With the strength of the U.S.'s ability to produce NGLs and get them exported.

Uh, is it different from last year? Well, it's, it's, it's the growth, and it shows that the balance in the market is.

is easily, uh, made, uh, positive with incremental growth and, um, you know, long may that continue and

I think it it's a very healthy re, uh, reflection of a wider Market that using, um, experiences from the past whenever there's been trade barriers between the US and China that industry players were able to reflect on past learnings adapt them, um, and get trade, going back to normal as soon as possible made all of this possible. Because

If if if the trade flows could not realign Etc.

Omar Nokta: The last point I would make to your question, the Red Sea transit difficulties that have escalated this year at various points, they have helped lengthened ton miles. I hope that answers your question.

To your question.

The Red Sea.

Transit difficulties. Uh, that that have escalated this year, um, at various points, they have

Helped lengthen tan miles.

Taro Rasmussen: No, thank you. It does. It provides some good context. I guess, you know, maybe perhaps somewhat related, and if it gets perhaps a bit more complex, but just generally, when we think about the U.S. export ARB, it feels like the freight rate is capturing, say, the lion's share of that ARB versus a year ago where it was getting a much smaller piece. What do you think has kind of changed, if you can point to it, that's allowed the freight part to capture such a much wider part of the export spread?

And I hope that answers your question.

No thank you. It it does it provides some good context I guess, you know, maybe in perhaps somewhat related you know. Um and it's a good perhaps a bit more complex but just generally when we think about the US export RB, you know it it feels like the the freight rate is capturing the, the line share of that ARB versus a year ago where it was getting a much smaller piece.

What do you think is kind of changed? If if, if if, if if you can point to it that's allowed the freight part to capture such a much wider part of the um, of the export spread

John Hadjipateras: It was the increase in the capacity of terminals. But Taro, can you elaborate?

Yeah, it was the increased capacity of terminals, but Taro, can you elaborate?

Omar Nokta: I think last year was in many ways an anomaly. It has been several years since we had seen such capability and strength in the terminals to absorb more value of the arbitrage. That was, I would argue, driven partly last year due to reaction to weather phenomenon and the knock-on effects of delays that hurricanes leading to, or, and then concurrently upended tugboats in the Houston ship channel, etc. So it was unique factors with a long trail of effect. This year has been more driven by other external factors in other parts of the world and political in nature and geopolitics. Perhaps not the full explanation to a very good question, but I hope it helps.

yeah, I I I think the uh,

Last year was, in many ways, an anomaly. It's been several years since we had seen such a uh

Capability and, and strength from the terminals to absorb more value of the Arbitrage. Um, that that was

I I would argue driven partly last year due to reaction to What weather phenomenon and and and the knock-on effects of delays that uh you know, hurricanes leading to uh or and then concurrently upended tugboats in the Houston Ship Channel, Etc. So

It was, it was unique factors with a long. Uh,

Trail of effect.

this year has been more driven by other external factors and

other parts of the world and political in nature and geopolitics.

And perhaps not the full explanation to a very good question, but, uh, I hope it helps.

Taro Rasmussen: It does.

Theodore Young: I just would point out, Omar, that just as Taro touched on, terminal fees are way down year over year.

It does just I just would point out Omar that it's just a. It's tarot tarot touched on terminaling fees are way down year-over-year.

Taro Rasmussen: Thank you. That's, I guess, the function of the expansion.

That's against the function of the expansion.

Omar Nokta: Taro, you want to.

John Hadjipateras: Expansion of the terminal capacity, yes. Yes.

Omar Nokta: Yeah, with more coming online this year, yes.

Taro, do you want to comment on the expansion of the um terminal capacity? Yes, yes.

Yep.

John Hadjipateras: Yeah.

With more coming online this year? Yes.

Taro Rasmussen: Got it. Thank you. And final one, you had mentioned the ethane part of the market, which obviously isn't necessarily LPG, but with that ethane now moving, there was a concern initially that that ethane would maybe, those ethane carriers would go into other markets. What do you think, if we were to fall into an issue where ethane in the U.S. can't be moved and those ships now are looking for business, what do you think is more likely that they go into the VLGC trade or is it that they would try to make their way into the LNG trade? Have you thought about that or any way to kind of think about which way that those ships would go if we get into that type of market?

Yeah, got it.

John Hadjipateras: I think we look at them as an overhang in the event the ethane trade for some reason were stopped. They would be entering the VLGC market, and that is the way we have looked at it. I have not got any sense that they would go into LNG. I do not think they are capable of doing it, but we are also kind of confident that it will not happen because too much of our exports are being absorbed by China, and almost all of everything that China gets has to come from us. We do not, I do not think it will happen. If it did, if for any reason, that was already the talk that they may be, we may see some ships kind of creeping into our business. Also, if you did it, then you have to get back into ethane.

Uh, thank you and, and final 1, uh, you had mentioned, you mentioned that the S8 part of the market, which obviously isn't necessarily LPG but the, you know, with that essay. Now, moving there was a concern initially, that that ethane would, maybe those Ethan carriers would go into other markets. Um, what do you think if we were to fall into an issue where Ethan and the US can't be moved and those ships now are looking for business. What do you think is more likely that they go into the VGC trade? Or is it that they would make it try to make their way into the LNG trade? Have you thought about that, or any way to kind of, think about, which way that those shifts would go if we get into that type of Market,

I think we, we, we look at them as an overhang into in the if the ethane trade for some reason, we're stopped that would be, um, entering the via the VGC market and that, that's a, that's a way we've looked at it. I haven't, I haven't got any sense that they would go into into LNG. I don't think they're capable of doing it, but the um, but, um, we're also kind of confident that it won't that they won't happen. Because it's too much of too much of our, um, exports are being absorbed by China and too much of China's, and all the almost all of every that China gets has to come from us. So, we don't, I don't think it'll be it, it's going to happen, but it

John Hadjipateras: You cannot just keep going back and forth, ethane to LPG. You can go from LPG to ethane, sorry, from ethane to LPG easily, but not the other way around.

You know if it did if it was any reason um that was already the you know, the talk on that they may there may be. We may see some ships kind of creeping into our business. Also the Turner, I mean you if you if you if you did it then you have to get back into into ethane and it's not you know it's not you can't just keep going back and forth ethane to LPG. I mean, it it was you can go from LPG to f8, sorry from f8 to LPG easily but not the other way around.

Taro Rasmussen: Okay. Thanks for that explanation. Thanks, guys, for the detail and update. I will turn it back.

Omar Nokta: Thanks, Omar.

Thanks for that explanation. And thanks guys for the uh for the detail and update, I'll turn it back.

Leo: Thank you. It appears that we have no further questions at this time.

So tomorrow.

Thank you and it appears that we have no further questions at this time.

John Hadjipateras: Well, thank you all again. Thank you, Omar, and have a good rest of the summer.

Okay, well, thank you all again. Thank you Omar. And uh

Omar Nokta: Thank you.

Thank you.

Leo: This does conclude today's conference. You may now disconnect. Everyone, have a great day.

John Hadjipateras: Thank you, Leo. Thank you, Mr. Leo.

This does conclude today's conference, you may now disconnect everyone have a great day.

Thank you, Mr. Leo