Dorian LPG Q3 2026 Dorian LPG Ltd Earnings Call | AllMind AI Earnings | AllMind AI
Q3 2026 Dorian LPG Ltd Earnings Call
Operator: Good morning, and welcome to the Dorian LPG Q3 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'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.
Operator: Good morning, and welcome to the Dorian LPG Q3 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'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.
Speaker #1: As a reminder, recorded. this conference is being Additionally, a live audio webcast of today's conference call is available the Dorian LPG third-quarter on dorianlpg's website which is www.dorianlpg.com.
Speaker #1: I would now like to turn the conference over to Ted Young, Chief Financial
Speaker #1: Officer: Thank you, Mr. Young. Please go ahead.
Speaker #2: Thank you, Raisa. Good morning, everyone, and thank
Theodore Young: Thank you, Raisa. Good morning, everyone, and thank you all for joining us for our Q3 2026 Results Conference Call. With me today are John Hadjipateras, Chairman, President, and CEO of Dorian LPG Limited, John Lycouris, Head of Energy Transition, and Tim Hansen, Chief Commercial Officer. As a reminder, this conference call webcast and a replay of this call will be available through 12 February 2026. 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....
Ted Young: Thank you, Raisa. Good morning, everyone, and thank you all for joining us for our Q3 2026 Results Conference Call. With me today are John Hadjipateras, Chairman, President, and CEO of Dorian LPG Limited, John Lycouris, Head of Energy Transition, and Tim Hansen, Chief Commercial Officer. As a reminder, this conference call webcast and a replay of this call will be available through 12 February 2026. 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....
Speaker #2: you all for joining us for our ahead. third-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 Tim Hansen, Commercial Officer.
Speaker #2: Chief Commercial Officer, as a reminder, this conference call webcast in a replay of this call will be available through February 12, 2026. Many of our remarks today contain forward-looking statements based on current expectations.
Speaker #2: 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.
Speaker #2: These unknown risks and uncertainties, and other conditions. Should one or more of those risks, uncertainties, assumptions, or estimates prove to be incorrect, actual results may vary materially from those we express today.
Theodore Young: Should one or more of those, 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 period ended December 31, 2025, that were filed 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 could cause actual results to differ materially from those forward-looking statements. Finally, I would encourage you to refer to the investor highlight slides posted this morning on our website during our remarks. With that, I'll turn over the call to John Hadjipateras.
Ted Young: Should one or more of those, 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 period ended December 31, 2025, that were filed 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 could cause actual results to differ materially from those forward-looking statements. Finally, I would encourage you to refer to the investor highlight slides posted this morning on our website during our remarks. With that, I'll turn over the call to John Hadjipateras.
Speaker #2: Additionally, let me refer you to our unaudited results for the period ended December 31, 2025, that were filed this morning on Form 10Q. In addition, please refer to our previous factors as well as general economic filings on Form 10K, where you'll find risk factors that could cause actual results to differ materially from those forward-looking statements.
Speaker #2: Finally, I would encourage you to refer to the investor highlight slides posted this morning on our website during our remarks. With that, I'll turn over the call to John Hadjipateras.
Speaker #3: Thanks, Ted. Good morning, and thank you for joining us. Before my colleagues provide you with detailed comments on our financial results, our market outlook, and our operational progress, I'd like to highlight the following: our dividend declared last week of 70 cents per share, totaling 29.9 million, will be our 18th dividend payment, bringing total dividends distributed to over 725 million.
John Hadjipateras: Thanks, Ted. Good morning, and thank you for joining us. Before my colleagues provide you detailed comments on our financial results, our market outlook, and our operational progress, I'd like to highlight the following: Our dividend declared last week of $0.70 per share, totaling $29.9 million, will be our 18th dividend payment, bringing total dividends distributed to over $725 million, and total capital of $961 million returned to shareholders since our IPO. The VLGC market remained strong in Q4, with spot earnings well above long-term mid-cycle, despite some volatility. Indeed, as we speak, demand and freight rates continue to be strong. Last quarter, global liftings were up 3% year-over-year, measuring 36.8 million tons. The new record level of LPG exports highlights the attractiveness of LPG as an energy source for domestic, commercial, and industrial uses.
John Hadjipateras: Thanks, Ted. Good morning, and thank you for joining us. Before my colleagues provide you detailed comments on our financial results, our market outlook, and our operational progress, I'd like to highlight the following: Our dividend declared last week of $0.70 per share, totaling $29.9 million, will be our 18th dividend payment, bringing total dividends distributed to over $725 million, and total capital of $961 million returned to shareholders since our IPO. The VLGC market remained strong in Q4, with spot earnings well above long-term mid-cycle, despite some volatility. Indeed, as we speak, demand and freight rates continue to be strong. Last quarter, global liftings were up 3% year-over-year, measuring 36.8 million tons. The new record level of LPG exports highlights the attractiveness of LPG as an energy source for domestic, commercial, and industrial uses.
Speaker #3: And total capital of 961 million returned to shareholders since our IPO. The VLGC market remains strong in the fourth calendar quarter. With spot earnings well above long-term mid-cycle, despite some volatility.
Speaker #3: Indeed, as we speak, demand and freight rates continue to be strong. Last quarter, global liftings were up 3% year-over-year, measuring 36.8 million tons. The new record level of LPG exports highlights the attractiveness of LPG as an energy source for domestic, commercial, and industrial uses.
Speaker #3: Tim will elaborate on the VLGC market and our outlook. On the operational side, we completed 12 dry dockings this past year and have one more scheduled for this month, which will bring to completion docking cycle for our fleet.
John Hadjipateras: Tim will elaborate on the VLGC market and our outlook. On the operational side, we completed 12 dry dockings this past year and have 1 more scheduled for this month, which will bring to completion the dry-docking cycle for our fleet. After this last docking cycle, most of our ships will have been fitted with energy-saving devices and silicone paint, resulting in meaningful cost savings and emission reductions. We have a 93,000 cubic meter VLAC newbuilding, delivering in March from Hanwha in South Korea. John L. will give you more information on the progress made in our docking program, ammonia retrofits, and newbuilding delivery, as well as the regulatory environment. Ted will now present our quarterly financial overview. Ted?
John Hadjipateras: Tim will elaborate on the VLGC market and our outlook. On the operational side, we completed 12 dry dockings this past year and have 1 more scheduled for this month, which will bring to completion the dry-docking cycle for our fleet. After this last docking cycle, most of our ships will have been fitted with energy-saving devices and silicone paint, resulting in meaningful cost savings and emission reductions. We have a 93,000 cubic meter VLAC newbuilding, delivering in March from Hanwha in South Korea. John L. will give you more information on the progress made in our docking program, ammonia retrofits, and newbuilding delivery, as well as the regulatory environment. Ted will now present our quarterly financial overview. Ted?
Speaker #3: After this last docking cycle, most of our ships will have been fitted with energy-saving devices and silicone paint, resulting in meaningful cost savings and emission reductions.
Speaker #3: We have a 93,000 cubic meter VLAC new building delivering in March from Hanwan in South you more information on the progress made in our docking program, ammonia retrofits, and new building delivery, as well as the regulatory Korea.
Speaker #3: environment. Ted will now present our quarterly financial overview. Ted, John L will give
Theodore Young: Thanks, John. My comments today will focus on our unaudited third quarter results, capital allocation, and our financial position and liquidity. For the discussion of our third quarter results, you may also find it useful to refer to the investor highlight slides posted this morning on our website. I'd also remind you that my remarks will include a number of terms such as TCE, available days, and adjusted EBITDA. Please refer to our filings for the definitions of these terms. Turning to our third quarter chartering results, we achieved a TCE per available day of $50,333. Chartering results were strongest in October, followed by a small dip in November and into the first part of December. Tim will elaborate more on the current rate environment, which is substantially improved.
Ted Young: Thanks, John. My comments today will focus on our unaudited third quarter results, capital allocation, and our financial position and liquidity. For the discussion of our third quarter results, you may also find it useful to refer to the investor highlight slides posted this morning on our website. I'd also remind you that my remarks will include a number of terms such as TCE, available days, and adjusted EBITDA. Please refer to our filings for the definitions of these terms. Turning to our third quarter chartering results, we achieved a TCE per available day of $50,333. Chartering results were strongest in October, followed by a small dip in November and into the first part of December. Tim will elaborate more on the current rate environment, which is substantially improved.
Speaker #4: today will focus on our unaudited third-quarter results, capital allocation, and our financial position and third-quarter results, you may also find it Thanks, John. useful to refer to the investor highlight slides posted this morning on our My comments website.
Speaker #4: TCE available days and adjusted I'd also remind you that my EBITDA. Please refer to our filings for the definitions of these terms. Turning to our third-quarter charter results, we achieved a TCE per available day of 50,333.
Speaker #4: Charter results were strongest in liquidity. October, followed by a small dip in November and into the first part of December. Tim will elaborate more on the current rate environment, which is substantially For the discussion of our improved.
Theodore Young: As our entire spot trading program is conducted through the Helios Pool, its spot results are the best measure of our spot chartering performance. For the December 31 quarter, the Helios Pool earned a TCE of $50,500 per day for its spot in COA voyages. On page four of our investor highlights material, you can see that we have three vessels on time charter within the pool, indicating spot exposure of about 90% for the 29 vessels in the Helios Pool. We will provide forward-booking information later in the quarter in order to make it more useful for the investment community, as the impact of rate volatility is best managed by providing information when more of the quarter is booked.
Ted Young: As our entire spot trading program is conducted through the Helios Pool, its spot results are the best measure of our spot chartering performance. For the December 31 quarter, the Helios Pool earned a TCE of $50,500 per day for its spot in COA voyages. On page four of our investor highlights material, you can see that we have three vessels on time charter within the pool, indicating spot exposure of about 90% for the 29 vessels in the Helios Pool. We will provide forward-booking information later in the quarter in order to make it more useful for the investment community, as the impact of rate volatility is best managed by providing information when more of the quarter is booked.
Speaker #4: Pool, its spot results are the best measure of our spot chartering performance. For our entire spot trading program, the December 31 quarter, the Helios Pool earned a TCE of $50,500 per day for its spot and COA voyages.
Speaker #4: On page four of our investor highlights material, you can see that we have three about 90% for the 29 vessels in the Helios pool.
Speaker #4: We will provide forward-booking information later in the quarter in order to make it more useful for the investment community. As the impact of rate volatility is best managed by providing information when more of the quarter is booked.
Speaker #4: Daily OPEX for the quarter was 9,558 dollars, excluding dry docking-related expenses. Which was more or less flat with the prior quarter. We are encouraged by the lower OPEX, excluding dry docking, over the last two quarters.
Theodore Young: Daily OpEx for the quarter was $9,558, excluding dry docking-related expenses, which was more or less flat with the prior quarter. We are encouraged by the lower OpEx, excluding dry docking over the last two quarters. Our time charter in expense for the TCN vessels came in at $18.2 million, consistent with our guidance and equivalent to an average charter hire of about $33,000 per day, reflecting full quarter contributions from both the Crystal Asteria and the BW Tokyo. The Tokyo is jointly chartered in with MOL Energia and deployed into the Helios Pool, and thus we account for 100% of the revenues and time charter expense on our P&L. The new line item, profit sharing expense on our income statements, reflects the 50% of the net chartering result that is due to our partner.
Ted Young: Daily OpEx for the quarter was $9,558, excluding dry docking-related expenses, which was more or less flat with the prior quarter. We are encouraged by the lower OpEx, excluding dry docking over the last two quarters. Our time charter in expense for the TCN vessels came in at $18.2 million, consistent with our guidance and equivalent to an average charter hire of about $33,000 per day, reflecting full quarter contributions from both the Crystal Asteria and the BW Tokyo. The Tokyo is jointly chartered in with MOL Energia and deployed into the Helios Pool, and thus we account for 100% of the revenues and time charter expense on our P&L. The new line item, profit sharing expense on our income statements, reflects the 50% of the net chartering result that is due to our partner.
Speaker #4: charter in expense for the TCE in vessels came in at 18.2 Our time million, consistent with our guidance and equivalent to an average charter hire of about 33,000 dollars per day.
Speaker #4: new line item, profit sharing expense on our income statements, reflects the 50% of the net chartering results. That is due to our partner. For the March quarter, we estimate TCI expense continued to be in the 18 to 19 million quarter.
Theodore Young: For the March quarter, we estimate TCI expense continue to be in the $18 to 19 million range again for the quarter. Total G&A for the quarter was $10.8 million, and cash G&A, that's G&A excluding non-cash comp expense, was about $8.7 million. Included in that $8.7 million was about $2 million of quarterly expense under our cash incentive plan, thus, our core G&A remained steady at roughly $6.7 million. Our reported Adjusted EBITDA for the quarter was $74.2 million. Total cash interest expense for the quarter was $6.8 million. Our current debt cost is about 5%, which reflects the heavily hedged and fixed nature of our various pieces of debt. We closed the quarter on 31 December 2025, with $294.5 million-...
Ted Young: For the March quarter, we estimate TCI expense continue to be in the $18 to 19 million range again for the quarter. Total G&A for the quarter was $10.8 million, and cash G&A, that's G&A excluding non-cash comp expense, was about $8.7 million. Included in that $8.7 million was about $2 million of quarterly expense under our cash incentive plan, thus, our core G&A remained steady at roughly $6.7 million. Our reported Adjusted EBITDA for the quarter was $74.2 million. Total cash interest expense for the quarter was $6.8 million. Our current debt cost is about 5%, which reflects the heavily hedged and fixed nature of our various pieces of debt. We closed the quarter on 31 December 2025, with $294.5 million-...
Speaker #4: Total G&A for the quarter was 10.8 million, and cash G&A, that's G&A excluding non-cash comp expense, was about 8.7 million. Included in that 8.7 million was about 2 million dollars of quarterly dollar range again for the expense under our cash incentive steady at roughly 6.7 plan.
Speaker #4: million. Our reported adjusted EBITDA for the quarter was 74.2 Thus, our core G&A remained million. Total cash interest expense for the quarter was 6.8 million.
Speaker #4: Our current debt cost is about 5%, which reflects the heavily hedged and fixed nature of our various pieces of debt. We closed the quarter on December 31, 2025, with 294.5 million dollars of free cash, which was up about 25 million from the prior quarter, which is a particularly good result as we paid the dividend and an quarter.
Theodore Young: of free cash, which was up about $25 million from the prior quarter, which is a particularly good result as we paid the dividend and an installment on our new building during the quarter. As announced last week, we will pay $0.70 per share as an irregular dividend, or roughly $30 million in total, on or about 24 to 26 February 2026, to shareholders of record as of 9 February 2026. With a debt balance at quarter end of $516 million, our debt to total book capitalization stood at 32.2%, and net debt to total cap at 13.8%.
Ted Young: of free cash, which was up about $25 million from the prior quarter, which is a particularly good result as we paid the dividend and an installment on our new building during the quarter. As announced last week, we will pay $0.70 per share as an irregular dividend, or roughly $30 million in total, on or about 24 to 26 February 2026, to shareholders of record as of 9 February 2026. With a debt balance at quarter end of $516 million, our debt to total book capitalization stood at 32.2%, and net debt to total cap at 13.8%.
Speaker #4: As announced last week, we will pay $0.70 per share as an installment on our new building during the irregular dividend, or roughly $30 million in total, on or about February 24, 2026, to shareholders of record as of February 9, 2026.
Speaker #4: With a debt balance a quarter end of 516 million dollars, our debt-to-total book capitalization stood at 32.2%, and net debt-to-total cap at 13.8%. With an undrawn 50 million dollar revolver and a 100 million dollar accordion feature in strong free cash balance and one our existing loan agreement, our debt-free vessel we feel well capitalized for free growth and renewal or for whatever challenges might arise.
Theodore Young: With an undrawn $50 million revolver and a $100 million accordion feature in our existing loan agreement, our strong free cash balance and 1 debt-free vessel, we feel well-capitalized for fleet growth and renewal, or for whatever challenges might arise. We expect our cash cost per day for the coming year to be approximately $27,000 per day, excluding capital expenditures for dry docking and scrubbers. During the quarter, we completed 3 dry dockings and anticipate 1 dry docking for this quarter, currently ending 31 March. That will complete the dry docking program for our 2014 to 2016-built vessels. As John mentioned, we expect to take delivery of our new building, ammonia-capable VLGC, at the end of March 2026, and we expect to pay about $62 million in cash at closing.
Ted Young: With an undrawn $50 million revolver and a $100 million accordion feature in our existing loan agreement, our strong free cash balance and 1 debt-free vessel, we feel well-capitalized for fleet growth and renewal, or for whatever challenges might arise. We expect our cash cost per day for the coming year to be approximately $27,000 per day, excluding capital expenditures for dry docking and scrubbers. During the quarter, we completed 3 dry dockings and anticipate 1 dry docking for this quarter, currently ending 31 March. That will complete the dry docking program for our 2014 to 2016-built vessels. As John mentioned, we expect to take delivery of our new building, ammonia-capable VLGC, at the end of March 2026, and we expect to pay about $62 million in cash at closing.
Speaker #4: We expect our cash cost per day for the coming year to be approximately 27,000 dollars per day, excluding capital expenditures for dry docking and scrubbers.
Speaker #4: This quarter, we completed three dry dockings and anticipate one dry docking for this quarter currently ending March 31. That will complete the dry docking program for our 2014 to 2016 built vessels.
Speaker #4: As John mentioned, we expect to take delivery of our new building ammonia-capable VLGC at the and we expect to pay about 62 end of March 2026, million dollars in cash at closing.
Speaker #4: We expect our enter into a loan facility to finance that payment. The irregular dividend declared last week of 70 cents per share brings to 17 dollars and 65 cents per share in irregular investors and analysts like to suggest that these 2021.
Theodore Young: We expect to enter into a loan facility to finance that payment. The irregular dividend declared last week of $0.70 per share brings to $17.65 per share in irregular dividends that we have paid since September 2021. While many investors and analysts like to suggest that these dividends are no longer irregular, we underscore that they are indeed irregular and subject to the discretion of our board. VLGC rates are not regular, and thus we don't think our dividend policy should be either.
Ted Young: We expect to enter into a loan facility to finance that payment. The irregular dividend declared last week of $0.70 per share brings to $17.65 per share in irregular dividends that we have paid since September 2021. While many investors and analysts like to suggest that these dividends are no longer irregular, we underscore that they are indeed irregular and subject to the discretion of our board. VLGC rates are not regular, and thus we don't think our dividend policy should be either.
Speaker #4: Dividends are no longer irregular; we underscore that they are indeed irregular and subject to the discretion of our board. While many VLGC rates are not regular, and thus we don't think our dividend policy—our dividends—in a more traditional context, our net income since June 30, 2021, that's the quarter immediately prior to our first irregular dividend, has been approximately $754 million. While, including the dividend to be, we will have returned approximately $725 million of dividends in total.
Speaker #4: dividends are no longer irregular, we underscore that they are indeed irregular and subject to the discretion of our While many board. VLGC rates are not regular, and thus we don't think our dividend policy our dividends in a more traditional context, our net income since June 30, 2021, that's the quarter immediately prior to our first irregular dividend, has been approximately 754 million, while including the dividend to be will have returned approximately should be either.
Theodore Young: Looking at our dividends in a more traditional context, our net income since June 30, 2021, that's the quarter immediately prior to our first irregular dividend, has been approximately $754 million, while including the dividend to be paid later this month, we will have returned approximately $725 million of dividends in total. Sorry, $725 million in dividends. In total, we've returned over $960 million in cash to our investors since our IPO. We will continue to maintain a steady balance between dividends, deleveraging, and fleet investment. With that, I'll pass it over to Tim Hansen.
Ted Young: Looking at our dividends in a more traditional context, our net income since June 30, 2021, that's the quarter immediately prior to our first irregular dividend, has been approximately $754 million, while including the dividend to be paid later this month, we will have returned approximately $725 million of dividends in total. Sorry, $725 million in dividends. In total, we've returned over $960 million in cash to our investors since our IPO. We will continue to maintain a steady balance between dividends, deleveraging, and fleet investment. With that, I'll pass it over to Tim Hansen.
Speaker #4: have returned over 960 million in cash to our investors since their IPO. We will continue to maintain a steady balance between dividends deleveraging and fleet investment.
Speaker #4: With that, I'll pass it over to Tim paid this later this month, we
Speaker #4: Hansen.
Speaker #2: Thank you, Chet,
Tim Hansen: Thank you, Chet, and good day, everyone. For the quarter ending December 31, 2025, the global seaborne LPG trade increased again to a new quarterly record. It was reported to be more than 37 million tons for the first time. North American export contributed significantly, hitting a new quarterly export record of more than 18.5 million tons. The Middle East exports were the second highest quarterly export volume on record. The expanded seaborne trade witnessed over the quarter speaks to the attractiveness of LPG as a commodity, but the whole freight markets were challenged by external factors. The key external factors impacting the freight markets were lower than anticipated Saudi contract prices, or Saudi CP, for October, and the retaliatory port service fees implemented in China.
Tim Hansen: Thank you, Chet, and good day, everyone. For the quarter ending December 31, 2025, the global seaborne LPG trade increased again to a new quarterly record. It was reported to be more than 37 million tons for the first time. North American export contributed significantly, hitting a new quarterly export record of more than 18.5 million tons. The Middle East exports were the second highest quarterly export volume on record. The expanded seaborne trade witnessed over the quarter speaks to the attractiveness of LPG as a commodity, but the whole freight markets were challenged by external factors. The key external factors impacting the freight markets were lower than anticipated Saudi contract prices, or Saudi CP, for October, and the retaliatory port service fees implemented in China.
Speaker #2: and good day, everyone. For the quarter ending December
Speaker #2: 31, 2025, the global CBON LPG trade increased again to a Looking at new quarterly record. It was reported to be more than 37 million tons for the first time.
Speaker #2: North American export contributed significantly, hitting a new quarterly export record of more than 18.5 million tons. The Middle East exports were the second highest quarter, quarterly export volume expanded CBON trade on record.
Speaker #2: witnessed over the quarter speaks to the attractiveness of LPG as a commodity, but the whole trade The markets were challenged by external factors. The key external factors impacting the trade markets were lower than anticipated Saudi contract prices or Saudi CP for October, and the retaliatory port service fees implemented in China.
Speaker #2: Starting with the prices, it should be remembered lower than anticipated Saudi contract that the Saudi CP influences the pricing of the Far East Index or FEI, and therefore impacts product price economics.
Tim Hansen: Starting with the lower than anticipated Saudi contract prices, it should be remembered that the Saudi CP influences the pricing of the Far East Index, or FEI, and therefore impacts product price economics. The Saudi CP for October was lowered to be price competitive against US exports for a tender into India, and to demonstrate some commercial flexibility on the parts of Saudi Aramco. The price decrease was unexpected because the Saudi CP is historically in contango throughout the fourth calendar quarter of any year, and Far East imports increase in anticipation of winter heating demand. The drop in the Saudi CP and Far East Index created an uncertain trading environment for a few weeks and narrowed the arbitrage, slowing and weakening the freight markets.
Tim Hansen: Starting with the lower than anticipated Saudi contract prices, it should be remembered that the Saudi CP influences the pricing of the Far East Index, or FEI, and therefore impacts product price economics. The Saudi CP for October was lowered to be price competitive against US exports for a tender into India, and to demonstrate some commercial flexibility on the parts of Saudi Aramco. The price decrease was unexpected because the Saudi CP is historically in contango throughout the fourth calendar quarter of any year, and Far East imports increase in anticipation of winter heating demand. The drop in the Saudi CP and Far East Index created an uncertain trading environment for a few weeks and narrowed the arbitrage, slowing and weakening the freight markets.
Speaker #2: The Saudi CP for October was lowered to be priced competitive against US exports for a tender into India, and to demonstrate some commercial flexibility on the parts of Saudi Aramco.
Speaker #2: price decrease was unexpected because The the Saudi CP is historically in contango throughout the fourth calendar quarter of any year, and Far East imports increase in anticipation of winter heating demand.
Speaker #2: CP and Far East Index The drop in the Saudi created an uncertain trading environment for a few weeks, and narrowed the arbitrage slowing and weakening the trade markets.
Speaker #2: Amidst the slower trade market activity, the port service fees were announced in China to impact the US-related vessels on the 10th of October. The timing was key, as the announcement felt on a Friday before a three-day weekend, with the implementation happening on the 14th of October, to match the USTR Section 301 port service fees.
Tim Hansen: Amidst the slower freight market activity, the recent port service fees were announced in China to impact the US-related vessels on 10 October. The timing was key, as the announcement fell on a Friday before a three-day weekend, with implementation happening on 14 October to match the USTR Section 301 port service fees. The immediate impact was for vessels with cargo on board and en route to China, setting in motion discussions and rerouting of some vessels, as additional costs would be incurred, and there were ambiguities as to the scope of the impacted vessels. The shock of sudden cost negativity impacted the market and had another knock-on effect on the wider Far East cargo market.
Tim Hansen: Amidst the slower freight market activity, the recent port service fees were announced in China to impact the US-related vessels on 10 October. The timing was key, as the announcement fell on a Friday before a three-day weekend, with implementation happening on 14 October to match the USTR Section 301 port service fees. The immediate impact was for vessels with cargo on board and en route to China, setting in motion discussions and rerouting of some vessels, as additional costs would be incurred, and there were ambiguities as to the scope of the impacted vessels. The shock of sudden cost negativity impacted the market and had another knock-on effect on the wider Far East cargo market.
Speaker #2: The immediate impact was for vessels with carbon board and en route to China setting in motions to discussions and rerouting of some vessels as additional costs would be incurred, and there were ambiguous as to the scope of the impacted vessels.
Speaker #2: The shock of sudden cost negative impacted the market and had another knock-on effect on the wider Far East cargo market. By prompting owners with vessel schedule to load in the Arabian Gulf and US target cargoes not bound for China, and prices and price those aggressively.
Tim Hansen: But while prompting owners with vessels scheduled to load in the Arabian Gulf, and US Gulf cargo is not bound for China, and price those aggressively. Normally return to the market at the end of October, when the US-China summit in Busan found an agreement to suspend the port service fees for both countries until 9 November 2026, and the market corrected upwards again. Q3 demonstrated VLGC players to respond with agility when the USTR Section 301 port services was announced, and Q4 reaffirmed this. Once the backlog of unfixed vessels was cleared through November, the freight market improved through December to capture value from the west to east arbitrage that returns to normal levels.
Tim Hansen: But while prompting owners with vessels scheduled to load in the Arabian Gulf, and US Gulf cargo is not bound for China, and price those aggressively. Normally return to the market at the end of October, when the US-China summit in Busan found an agreement to suspend the port service fees for both countries until 9 November 2026, and the market corrected upwards again. Q3 demonstrated VLGC players to respond with agility when the USTR Section 301 port services was announced, and Q4 reaffirmed this. Once the backlog of unfixed vessels was cleared through November, the freight market improved through December to capture value from the west to east arbitrage that returns to normal levels.
Speaker #2: Normally, return to the market at the end of October when the US-China summit in Busan found an agreement to suspend the port service fees for both countries until November 9, 2026, and the market corrected upwards again.
Speaker #2: The third calendar quarter demonstrated VLGC's players to respond with agility when the USTR Section 301 the fourth calendar quarter port services was announced, and reaffirmed this.
Speaker #2: Once the backlog of unfixed vessels was cleared through November, the trade market improved through December to capture value from the West to East arbitrage that returns to normal levels.
Speaker #2: The quarter ending December 31, 2025, ultimately traded amidst a lower average Baltic index than the quarter prior, but found upwards momentum heading into 2026.
Tim Hansen: The quarter ending December 31, 2025, ultimately traded amidst a lower average Baltic index than the quarter prior, but found upwards momentum heading into 2026. For 2026, a total of roughly 36 VLGCs, including one of our own, will require absorption in the market. Geopolitical impacts and world market seems likely, but the agility of the VLGC market and the fundamental attractiveness of LPG as a commodity support the belief that the risk can be mitigated and upsides successfully captured. With that, I will pass it over to Mr. John Lycouris.
Tim Hansen: The quarter ending December 31, 2025, ultimately traded amidst a lower average Baltic index than the quarter prior, but found upwards momentum heading into 2026. For 2026, a total of roughly 36 VLGCs, including one of our own, will require absorption in the market. Geopolitical impacts and world market seems likely, but the agility of the VLGC market and the fundamental attractiveness of LPG as a commodity support the belief that the risk can be mitigated and upsides successfully captured. With that, I will pass it over to Mr. John Lycouris.
Speaker #2: For total of roughly 36 2026, a VLGCs, including one of our own will require absorption in the market. A geopolitical impact and world markets seems in world of the VLGC market and the fundamental attractiveness of LPG as a commodity support the belief that the risk can be markets seems likely, but the agility mitigated and upside successfully captured.
Speaker #2: I will pass it over to Mr. John With that, Lycouris.
Speaker #3: Tim. Dorian Thank you, LPG, we are committed to continually enhancing energy efficiency, and promoting a sustainability of both our operations and our 16 scrubber-fitted vessels and vessels.
John Lycouris: Thank you, Tim. At Dorian LPG, we are committed to continually enhancing energy efficiency and promoting the sustainability of both our operations, and our vessels. We operate 16 scrubber-fitted vessels and 5 dual-fuel LPG vessels. Scrubbers neutralize sulfur oxides from fuel oil while reducing significantly particulate matter and black carbon emissions. For Q3 2026, vessel savings amounted to $1.116 million, or about $933 per calendar day, net of all scrubber operating expenses. Lower oil prices, and a lack of geopolitical events led to lower bunker prices, which resulted in our lower savings for the scrubbers.
John Lycouris: Thank you, Tim. At Dorian LPG, we are committed to continually enhancing energy efficiency and promoting the sustainability of both our operations, and our vessels. We operate 16 scrubber-fitted vessels and 5 dual-fuel LPG vessels. Scrubbers neutralize sulfur oxides from fuel oil while reducing significantly particulate matter and black carbon emissions. For Q3 2026, vessel savings amounted to $1.116 million, or about $933 per calendar day, net of all scrubber operating expenses. Lower oil prices, and a lack of geopolitical events led to lower bunker prices, which resulted in our lower savings for the scrubbers.
Speaker #3: vessels. Scrubbers 5 dual-fuel LPG oxides from fuel oil, while reducing significantly particulate matter and black carbon neutralize sulfur emissions. For the third fiscal quarter of We operate 2026, vessel savings amounted to 1,116,000 dollars, or about 933 dollars per calendar day, net of all scrubber operating expenses.
Speaker #3: Geopolitical events led to lower bunker prices, which resulted in our lower savings for the lower oil prices and a lack of scrubbers. Fuel differentials between very low sulfur fuel oil averaged high sulfur fuel oil at $57 per metric ton, while the differential of LPG as fuel versus very low sulfur fuel oil stood at about $104 per metric ton, making LPG economically attractive for our dual-fuel vessels.
John Lycouris: Fuel differentials between high sulfur fuel oil and very low sulfur fuel oil averaged $57 per metric ton, while the differential of LPG as fuel versus very low sulfur fuel oil stood at about $104 per metric ton, making LPG economically attractive for our dual fuel vessels. During the last quarter, 3 vessels completed special survey and dry docking, including one upgraded for the carriage of ammonia cargo. With the completion of the special survey and dry dock of the last of our C-type vessels this month, we will have completed the entire dry docking cycle for our 2014-built-2016-built vessels. Next month, we take delivery of the Hanwha Ocean 93,000 cubic meter new building, which is a VLGC and VLAC combined, and which will join Dorian LPG fleet.
John Lycouris: Fuel differentials between high sulfur fuel oil and very low sulfur fuel oil averaged $57 per metric ton, while the differential of LPG as fuel versus very low sulfur fuel oil stood at about $104 per metric ton, making LPG economically attractive for our dual fuel vessels. During the last quarter, 3 vessels completed special survey and dry docking, including one upgraded for the carriage of ammonia cargo. With the completion of the special survey and dry dock of the last of our C-type vessels this month, we will have completed the entire dry docking cycle for our 2014-built-2016-built vessels. Next month, we take delivery of the Hanwha Ocean 93,000 cubic meter new building, which is a VLGC and VLAC combined, and which will join Dorian LPG fleet.
Speaker #3: During the last quarter, three vessels completed special survey and dry docking, including one upgraded for the carriage of ammonia cargos. With the completion of the special survey and dry dock of the last of our C-type vessels this month, we will have completed the entire dry docking cycle for our 2014-built 2016-built vessels.
Speaker #3: Next month, we take delivery of the Hanwha Ocean 93,000 cubic meter new building, which is a VLGC and VLAC. Combined, and which will join Dorian LPG fleet.
Speaker #3: This LPG dual-fuel vessel is fitted with a hybrid scrubber and with alternative marine power. Annual efficiency ratio or the carbon intensity of our vessels' AER is the metric which calculates operations.
John Lycouris: This LPG dual fuel vessel is fitted with a hybrid scrubber and with alternative marine power. Annual efficiency ratio, or AER, is the metric which calculates the carbon intensity of our vessels' operations. The average Dorian LPG fleet AER for the full year 2025 was 6.24%, which is 10.4% better than the IMO required target for 2025, or 6.96%. In late 2025, the IMO's Marine Environment Protection Committee met for a second extraordinary session. Member states decided to delay approving changes to the MARPOL Annex VI by one year. Despite this delay, Dorian remains fully committed to investing in fuel efficiency, improved performances, and decreased greenhouse gas emissions. We view the delayed IMO changes as a very positive step, allowing more time for input and review on many outstanding technical issues, capabilities, procedures, and implementation details.
John Lycouris: This LPG dual fuel vessel is fitted with a hybrid scrubber and with alternative marine power. Annual efficiency ratio, or AER, is the metric which calculates the carbon intensity of our vessels' operations. The average Dorian LPG fleet AER for the full year 2025 was 6.24%, which is 10.4% better than the IMO required target for 2025, or 6.96%. In late 2025, the IMO's Marine Environment Protection Committee met for a second extraordinary session. Member states decided to delay approving changes to the MARPOL Annex VI by one year. Despite this delay, Dorian remains fully committed to investing in fuel efficiency, improved performances, and decreased greenhouse gas emissions. We view the delayed IMO changes as a very positive step, allowing more time for input and review on many outstanding technical issues, capabilities, procedures, and implementation details.
Speaker #3: The average Dorian LPG fleet AER for the full year 2025 was 6.24%, which is 10.4% better than the IMO-required target for 2025 of 6.96%.
Speaker #3: In late 2025, the IMO's marine environmental protection committee met for a second extraordinary session member states decided to delay approving changes to the MARPOL Annex VI by one delay, Dorian remains fully committed to investing in fuel efficiency, improved performances, and decreased greenhouse gas emissions.
Speaker #3: We view the delayed IMO changes as a very positive step, allowing more time for input and review on many outstanding technical issues, capabilities, procedures, and implementation details.
Speaker #3: This also gives our industry time to prepare and adjust expectations for realistic targets for the net zero framework guidelines and toward gradual development of alternative fuel.
John Lycouris: This also gives our industry time to prepare and adjust expectations for realistic targets for the net zero framework guidelines and towards gradual development of alternative fuel. The MEPC 84 session is scheduled to take place in the spring of 2026. We expect this session to focus on finalizing critical implementation guidelines that will give more clarity on the net zero framework, and to consider additional proposals. We are confident that our company and fleet are well-equipped and fully prepared to meet regulatory changes ahead. And now I would like to pass it over to John Hadjipateras for his final comments.
John Lycouris: This also gives our industry time to prepare and adjust expectations for realistic targets for the net zero framework guidelines and towards gradual development of alternative fuel. The MEPC 84 session is scheduled to take place in the spring of 2026. We expect this session to focus on finalizing critical implementation guidelines that will give more clarity on the net zero framework, and to consider additional proposals. We are confident that our company and fleet are well-equipped and fully prepared to meet regulatory changes ahead. And now I would like to pass it over to John Hadjipateras for his final comments.
Speaker #3: The MEPC 84 session is scheduled to take place in the spring of 2026. We expect this session to focus on finalizing critical implementation guidelines that zero framework and to consider additional proposals.
Speaker #3: We are confident that our company and fleet are well equipped and fully prepared to meet regulatory changes ahead. And now I would like to pass it over to John Lycouris for his final comments.
Speaker #2: Thanks, John. And we'd love to open up for questions if anyone is joining us and would like to who's joined us would like to ask any questions operator,
John Hadjipateras: Thanks, John, and we'd love to open up for questions if anyone who's joined us would like to ask any questions. Operator, please.
John Hadjipateras: Thanks, John, and we'd love to open up for questions if anyone who's joined us would like to ask any questions. Operator, please.
Speaker #2: please? At this
Operator: At this time, if you would like to ask a question, please press the star and one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two. Once again, to ask a question, that is star one. We'll take our first question from Omar Nokta with Clarkson Securities. Your line is open.
Operator: At this time, if you would like to ask a question, please press the star and one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two. Once again, to ask a question, that is star one. We'll take our first question from Omar Nokta with Clarksons Securities. Your line is open.
Speaker #4: please press the star and one on your telephone keypad. You may remove yourself from the queue at any time by time, if you would like to ask a question, pressing star two.
Speaker #4: Once again, to ask a question, that is star one. We'll take our first question from Omar Nokta with Clarkson Securities. Your line is
Speaker #4: open. Thank
Speaker #5: you. Hey, guys. Good morning. Thanks for the update. I do have a couple of questions maybe one on the market and then just wanted to get into but maybe broadly on the market.
Omar Nokta: Thank you. Hey, guys. Good morning. Thanks for the updates. I do have a couple of questions, you know, maybe one on the market and then just wanted to get into Dorian specifically, but maybe broadly on the market. I know, Ted, you mentioned you'll wait a bit to give us guidance on how the quarter's bookings are looking. But just in general, what we've seen here in the spot market, rates seem to be quite strong. They're at 2+ year highs. And it's interesting in terms of, you know, how this is happening and somewhat defying, you know, the typical seasonal norms. And so just wanted to ask, from your perspective, you know, what's been driving this kind of counterseasonal strength?
Omar Nokta: Thank you. Hey, guys. Good morning. Thanks for the updates. I do have a couple of questions, you know, maybe one on the market and then just wanted to get into Dorian specifically, but maybe broadly on the market. I know, Ted, you mentioned you'll wait a bit to give us guidance on how the quarter's bookings are looking. But just in general, what we've seen here in the spot market, rates seem to be quite strong. They're at 2+ year highs. And it's interesting in terms of, you know, how this is happening and somewhat defying, you know, the typical seasonal norms. And so just wanted to ask, from your perspective, you know, what's been driving this kind of counterseasonal strength?
Speaker #5: I know, Ted, you Dorian specifically, mentioned you'll wait a bit to give us guidance on how the quarter's bookings are looking, but just in general, what we've seen here in the spot strong.
Speaker #5: They're at two plus year market rates seem to be quite highs. And it's interesting in terms of how this is happening and somewhat defying the typical seasonal norms.
Speaker #5: And so just wanted to ask from your perspective, what's been driving this kind of counter-seasonal strength? And then from that sense, what do you think that then means for how the year is going to look in
Omar Nokta: And then from that sense, what do you think that then means for how the year is gonna look in general?
Omar Nokta: And then from that sense, what do you think that then means for how the year is gonna look in general?
Speaker #5: general? Thanks for that question.
John Hadjipateras: Thanks for that question. Is this Omar? I didn't catch the introduction.
John Hadjipateras: Thanks for that question. Is this Omar? I didn't catch the introduction.
Speaker #2: Is this Omar? I didn't catch the introduction.
Speaker #5: Yep, it's Omar.
Omar Nokta: Yep, it's Omar.
Omar Nokta: Yep, it's Omar.
Speaker #2: Omar, congratulations on your new position. I'm happy to have you back in the
John Hadjipateras: Omar, congratulations on your new position. I'm happy to have you back in the industry.
John Hadjipateras: Omar, congratulations on your new position. I'm happy to have you back in the industry.
Speaker #2: industry. Thank you, sir.
Omar Nokta: Thank you, sir. Appreciate that.
Omar Nokta: Thank you, sir. Appreciate that.
Speaker #5: Appreciate that.
Speaker #2: Thank you. Thank you. Tim, can you take that question, please?
John Hadjipateras: Thank you. Thank you. Tim, can you take that question, please?
John Hadjipateras: Thank you. Thank you. Tim, can you take that question, please?
Speaker #6: Yeah. It's unusual that the first quarter actually goes stronger as we get into the quarter. But as I quarter of mentioned, the last uncertainties and 2025, there was a lot of people held back on the activity.
Tim Hansen: Yeah. As well, it's unusual that the first quarter actually goes stronger as we get into the quarter. But as I mentioned, the last quarter of 2025, there was a lot of uncertainties and people held back on the activity. So there was a little bit less cargoes lifted. There was some fog as well in the US and so on. And once all these, the U.S. Gulf was cleared, once the fog had lifted and people had gotten used to these Saudi pricing, the market came back. So I think it was a spurt from that kind of lack of activity in November that has gone into first quarter also.
Tim Hansen: Yeah. As well, it's unusual that the first quarter actually goes stronger as we get into the quarter. But as I mentioned, the last quarter of 2025, there was a lot of uncertainties and people held back on the activity. So there was a little bit less cargoes lifted. There was some fog as well in the US and so on. And once all these, the U.S. Gulf was cleared, once the fog had lifted and people had gotten used to these Saudi pricing, the market came back. So I think it was a spurt from that kind of lack of activity in November that has gone into first quarter also.
Speaker #6: So there's a little bit less cargo shift that there was some fog as well in the US and so on. And once all these the USDR was cleared, once the fog had lifted and people had gotten used to these back.
Speaker #6: So I think it was a spur from Saudi pricing, the market came has gone into first quarter also. And then the production levels have kept on increasing and surprising to the seen more cargos in the US terminals have been able also to upside.
Tim Hansen: And then the production levels have kept on increasing and surprising to the upside. So we have seen more cargoes, and the US terminals have been able also to get these cargoes out of the terminals and onto the water. So we see that production continuing on the upside, and hopefully continue to surprise on the upside compared to the levels advised from the US. But so we do see the rest of the year should be strong and continue in this kind of activity. So we're pretty positive for 2026.
Tim Hansen: And then the production levels have kept on increasing and surprising to the upside. So we have seen more cargoes, and the US terminals have been able also to get these cargoes out of the terminals and onto the water. So we see that production continuing on the upside, and hopefully continue to surprise on the upside compared to the levels advised from the US. But so we do see the rest of the year should be strong and continue in this kind of activity. So we're pretty positive for 2026.
Speaker #6: get these cargos out of terminals and onto the water. production So we see that continuing on the the upside and hopefully So we have continue to surprise on the upside compared to the levels advised from the US.
Speaker #6: But so we do see the rest of the year should be strong and continue in this kind of activity pretty positive for
Speaker #5: Okay. 2026. Yeah. Thank you. Very good. And then just maybe a follow-up just in terms of how you've been deploying the fleet. You've obviously got a good amount of spot exposure via the pool.
Omar Nokta: Okay. Yeah. Thank you. Very good. And then just maybe a follow-up just in terms of how you've been deploying the fleet. You've obviously got a good amount of spot exposure via the pool. I did notice that one of the ships, I think the Chaparral maybe, has been put on a TC into 2027. Anything you're able to share on what that rate looks like? I know you tend to not give specifics, but anything you can give, or perhaps maybe in relation to what that would be earning relative to the other ships on charter?
Omar Nokta: Okay. Yeah. Thank you. Very good. And then just maybe a follow-up just in terms of how you've been deploying the fleet. You've obviously got a good amount of spot exposure via the pool. I did notice that one of the ships, I think the Chaparral maybe, has been put on a TC into 2027. Anything you're able to share on what that rate looks like? I know you tend to not give specifics, but anything you can give, or perhaps maybe in relation to what that would be earning relative to the other ships on charter?
Speaker #5: I did notice that one of the ships, I think been put on a TC into 2027. Anything you're able to share on the Chaparral maybe, has what that rate looks like?
Speaker #5: give specifics, but anything you can give or perhaps maybe in I know you tend to not relation to what that would be earning relative to the other ships on
John Hadjipateras: I'll let Tim again answer, because I think probably we have a P&C clause. But Tim and Ted can also give some... Tell you what we can tell you, put it that way. Tim, do you want to start, and then we'll. Ted can take over?
Speaker #2: I'll let Tim again
John Hadjipateras: I'll let Tim again answer, because I think probably we have a P&C clause. But Tim and Ted can also give some... Tell you what we can tell you, put it that way. Tim, do you want to start, and then we'll. Ted can take over?
Speaker #2: answer because I think probably charter? we have a P&C Tim and Ted can also clause but give tell you what we can tell you, put it that way.
Speaker #2: Tim, do you want to start? Take over, and then Ted can.
Speaker #6: Yeah. As you mentioned, we don't give out the rates. It is reported in the market. It was a deal that was done back in October, November, and just going on charter this quarter for a little more than a So on we do our charting more opportunistic when we see possibilities.
Tim Hansen: Yeah. As you mentioned, we don't give out the rates. It is reported in the market. It was a deal that was done back in October, November, and just going on charter this quarter for, yeah, a little more than a year's charter. So, I mean, we do our chartering, like, more opportunistic when we see possibilities. Of course, the market has since then surprised us based on the upside of the spot market. But I think it's at levels compared to the earnings we do in the spot market over the last quarter.
Tim Hansen: Yeah. As you mentioned, we don't give out the rates. It is reported in the market. It was a deal that was done back in October, November, and just going on charter this quarter for, yeah, a little more than a year's charter. So, I mean, we do our chartering, like, more opportunistic when we see possibilities. Of course, the market has since then surprised us based on the upside of the spot market. But I think it's at levels compared to the earnings we do in the spot market over the last quarter.
Speaker #6: Of course, the market has then since then surprised based on the upside the spot market. it's at levels compared to the earnings we do in the spot market.
Speaker #6: Over the last quarter.
Speaker #2: But Ted, maybe this is a good
John Hadjipateras: But, Ted, maybe this is a good time to say something about guidance.
John Hadjipateras: But, Ted, maybe this is a good time to say something about guidance.
Speaker #2: time to say something about guidance.
Theodore Young: Well, yeah, I think, I think, picking up on that, the topic of guidance, like we said, Omar, we think it's probably more useful to give the overall forward bookings information later in the quarter, just because there's so much volatility in the business, in the sector, just as, as, Tim alluded to. And so the, the information coming out later is gonna be better. You know, and, and I, and so I think that, you know, so we'll leave it in, in there. But I think, you know, Tim did a good job of giving you the overview. You know, I also think it's probably, you know, it was reported, which I think is interesting, that it's business for Brazil, which, I think is, is pretty exciting because of, what it says about Brazil as a potential growth market.
Ted Young: Well, yeah, I think, I think, picking up on that, the topic of guidance, like we said, Omar, we think it's probably more useful to give the overall forward bookings information later in the quarter, just because there's so much volatility in the business, in the sector, just as, as, Tim alluded to. And so the, the information coming out later is gonna be better. You know, and, and I, and so I think that, you know, so we'll leave it in, in there. But I think, you know, Tim did a good job of giving you the overview. You know, I also think it's probably, you know, it was reported, which I think is interesting, that it's business for Brazil, which, I think is, is pretty exciting because of, what it says about Brazil as a potential growth market.
Speaker #7: think picking up on the topic of guidance, like we said, Well, yeah, I Omar, we think it's probably more useful to give the overall forward bookings information later in the quarter just because there's so much volatility in the business in the sector just as Tim alluded to.
Speaker #7: And so the information coming out later is going to be better. And so I think that so we'll leave it there, but I think Tim did a good job of giving you the overview, I also think it's that it's business for Brazil, probably was reported, which I think is interesting, pretty exciting because of what it says which I think is about Brazil as a potential growth market.
Speaker #5: Got it. Thank you. Thanks. That's quite helpful. And then just a final one, maybe for you, Ted, just on the new building that you're taking delivery of here in the next few weeks.
Omar Nokta: Got it. Thank you. Got it. Thanks. That's quite helpful. Then just a final one, maybe for you, Ted, just on the new building that you're taking delivery of here in the next few weeks. Looks like I think from the filing, there's $62 million left to spend. You have $294 million of cash, so quite a bit of flexibility to do what you want. But do you have any specifics on how you plan to fund that vessel? Will you borrow or just pay cash?
Omar Nokta: Got it. Thank you. Got it. Thanks. That's quite helpful. Then just a final one, maybe for you, Ted, just on the new building that you're taking delivery of here in the next few weeks. Looks like I think from the filing, there's $62 million left to spend. You have $294 million of cash, so quite a bit of flexibility to do what you want. But do you have any specifics on how you plan to fund that vessel? Will you borrow or just pay cash?
Speaker #5: Looks like I think from the filing, there's 62 million left to spend. You have 294 million of cash. So quite a bit of flexibility to do what you want.
Speaker #5: But do you have any specifics on how you plan to fund that vessel? Will you borrow, or just pay cash?
Theodore Young: Yeah, I alluded to it briefly in our remarks. We do plan to finance the rest of the payment, and more detail be forthcoming when we get there.
Speaker #7: Yeah. I alluded to it briefly on our marks. We do plan to finance the rest of the payment. And more detail will be forthcoming when we get there.
Ted Young: Yeah, I alluded to it briefly in our remarks. We do plan to finance the rest of the payment, and more detail be forthcoming when we get there.
Speaker #5: Okay. All right. Thank you. Thanks, guys, and thanks, John. I'll pass it back.
Omar Nokta: Okay. All right. Thank you. Thanks, guys. And thanks, John. I'll pass it back.
Omar Nokta: Okay. All right. Thank you. Thanks, guys. And thanks, John. I'll pass it back.
Speaker #2: Okay. you, Omar. Thank you very much for joining Thank us. And everybody else, do we have any other questions,
John Hadjipateras: Okay, thank you, Omar. Thank you very much for joining us and everybody else. Do we have any other questions, Raisa?
John Hadjipateras: Okay, thank you, Omar. Thank you very much for joining us and everybody else. Do we have any other questions, Raisa?
Speaker #2: Raisa? We do.
Speaker #8: Our next question comes from Climate Moments with value investors edge. Your line is
Operator: We do. Our next question comes from Climent Molins with Value Investor's Edge. Your line is open.
Operator: We do. Our next question comes from Climent Molins with Value Investor's Edge. Your line is open.
Speaker #8: open.
Speaker #9: Hi, good morning. And
Climent Molins: Hi, good morning, and thank you for taking my questions. This is kind of a follow-up on Omar's first question. Despite rates being very solid, so far, we haven't seen a significant increase in the average speed of the overall VLGC fleet. To what extent do you believe the fleet can speed up if rates remain solid? Older vessels are, let's say, capped by the environmental regulations, but to what extent could the ECO portion of the fleet speed up?
Climent Molins: Hi, good morning, and thank you for taking my questions. This is kind of a follow-up on Omar's first question. Despite rates being very solid, so far, we haven't seen a significant increase in the average speed of the overall VLGC fleet. To what extent do you believe the fleet can speed up if rates remain solid? Older vessels are, let's say, capped by the environmental regulations, but to what extent could the ECO portion of the fleet speed up?
Speaker #9: questions. This kind of a follow-up on Omar's first question, despite rates being very solid, so far we haven't seen a significant increase in the average speed of the overall BLCC fleet.
Speaker #9: To what extent do you believe the fleet can speed up if rates remain solid? All their vessels are, let's say, capped by the environmental regulations, but to what extent could the eco portion of the fleet speed
Speaker #9: Up? That's another one for Tim.
John Hadjipateras: Ah, that's another one for Tim. A very good question.
John Hadjipateras: Ah, that's another one for Tim. A very good question.
Speaker #2: A very good question.
Tim Hansen: Yeah, there is a bit of leeway in speeding up still, but most of the, let's say, non-LPG fuel ships, so the Eco type from 2015, as we have the majority of the 2015, they are still capped by the environmental regulations and the reductions of power done years back. So there's maybe like a knot or 2 more in it, a knot and a half, and so the older ship, there's really nothing. So it's not a significant additional speed that we can do.
Speaker #6: Yeah, there is a bit of leeway in speeding up still. But most of the, let's say, non-LPG fuel ships so the eco of the 2015, they are still capped by the environmental regulations and the reductions of power So there's maybe done years back.
Tim Hansen: Yeah, there is a bit of leeway in speeding up still, but most of the, let's say, non-LPG fuel ships, so the Eco type from 2015, as we have the majority of the 2015, they are still capped by the environmental regulations and the reductions of power done years back. So there's maybe like a knot or 2 more in it, a knot and a half, and so the older ship, there's really nothing. So it's not a significant additional speed that we can do.
Speaker #6: a nod or two more in it, not a half. And for the older ship, there's really nothing type from as we have the majority so it's not a probably see when we come into the summer additional speed that we can do.
Speaker #6: significant That's helpful.
Speaker #6: You'll So even in theory, we could do it.
Tim Hansen: You'll probably see when we come into the summer months, if the market is strong, we can go a bit faster, but at the moment, also, we have seen quite a lot of bad weather here over the winter, so then even if there we could go faster, it's hard to actually do it.
Tim Hansen: You'll probably see when we come into the summer months, if the market is strong, we can go a bit faster, but at the moment, also, we have seen quite a lot of bad weather here over the winter, so then even if there we could go faster, it's hard to actually do it.
Speaker #6: months if the market is strong, we can go a bit faster, but at the moment, obviously, we have seen quite a lot of bad weather here over the winter.
Climent Molins: That's helpful. Thank you. And as a follow-up, in your prepared remarks, you talked about the energy-saving devices you've installed on your vessels, resulting in meaningful savings. Could you talk a bit further on what kind of improvements that has resulted relative to previous consumption levels? And what kind of IRR are these investments generating? I know, like, giving an exact figure may not be easy, but any color would be helpful.
Climent Molins: That's helpful. Thank you. And as a follow-up, in your prepared remarks, you talked about the energy-saving devices you've installed on your vessels, resulting in meaningful savings. Could you talk a bit further on what kind of improvements that has resulted relative to previous consumption levels? And what kind of IRR are these investments generating? I know, like, giving an exact figure may not be easy, but any color would be helpful.
Speaker #9: Thank you. And as a follow-up, in the energy saving devices you've your prepared remarks, you talked about bit further on what kind of improvements that has resulted relative to previous consumption levels?
Speaker #9: And what kind of IRR are these investments generating? I know giving an exact figure may not be easy, but any color would be helpful.
Speaker #2: Yeah. John will answer that. I think we've mentioned something specific, and he could give you as an illustration perhaps the payback on scrubbers. That should give you a bit of color on the whole picture.
John Hadjipateras: Yeah, John will answer that. I think we've mentioned something specific, and he could give you as an illustration, perhaps, the payback on scrubbers. That should give you a bit of a color on the whole picture. John?
John Hadjipateras: Yeah, John will answer that. I think we've mentioned something specific, and he could give you as an illustration, perhaps, the payback on scrubbers. That should give you a bit of a color on the whole picture. John?
Speaker #2: John?
Speaker #7: Yes. The energy-saving devices that we use and we mention usually provide an improvement of around 5%. And that's the ballpark figure for most of the devices.
John Lycouris: Yes, the energy-saving devices that we use and we mentioned usually provide an improvement of around 5%. And that's the ballpark figure for most of the energy-saving devices in most of the ships. And silicone paints also provide a similar kind of number, about 5% improvement in the energy savings. So the payback is generally pretty fast. It is generally within a year. So I think that answers your question.
John Lycouris: Yes, the energy-saving devices that we use and we mentioned usually provide an improvement of around 5%. And that's the ballpark figure for most of the energy-saving devices in most of the ships. And silicone paints also provide a similar kind of number, about 5% improvement in the energy savings. So the payback is generally pretty fast. It is generally within a year. So I think that answers your question.
Speaker #7: In most of the energy-saving ships, silicone paints also provide a similar kind of improvement in the energy number—about 5% savings.
Speaker #7: So the payback is generally pretty fast. It is generally within a year. So I think that answers your
Speaker #7: question. It does.
Climent Molins: It does.
Climent Molins: It does.
Speaker #9: Thanks for that.
John Hadjipateras: Well, that, of course, does not apply to scrubbers specifically. The payback on scrubbers is a bit longer than that, but most of the other devices are low cost. Those, those producing the 5%, are low cost, so that's why we have a quick payback.
John Hadjipateras: Well, that, of course, does not apply to scrubbers specifically. The payback on scrubbers is a bit longer than that, but most of the other devices are low cost. Those, those producing the 5%, are low cost, so that's why we have a quick payback.
Speaker #2: scrubbers. It's specifically. The payback in scrubbers is a bit longer than that. But most of the other devices are low cost. Those producing the 5% are low cost.
Speaker #2: So that's why we have a quick
Speaker #2: payback.
Speaker #7: Thank you, John. Yeah.
John Lycouris: Thank you, John.
John Lycouris: Thank you, John.
Speaker #9: Makes sense. Thank you, guys. I'll turn it over. Thank you for taking my
Climent Molins: Yeah, makes sense. Thank you, guys. I'll turn it over. Thank you for taking my questions.
Climent Molins: Yeah, makes sense. Thank you, guys. I'll turn it over. Thank you for taking my questions.
Speaker #9: questions. It
Speaker #7: No
Speaker #7: comment.
John Hadjipateras: Thank you.
John Hadjipateras: Thank you.
Speaker #2: Thank you.
Operator: It appears we have no further questions at this time. I'll turn the program back to the speakers for any additional or closing remarks.
Operator: It appears we have no further questions at this time. I'll turn the program back to the speakers for any additional or closing remarks.
Speaker #8: time. I'll turn the program back to the speakers for any appears we have no further questions at this additional or closing
Speaker #8: remarks. Thank you all for
John Hadjipateras: Thank you all for joining us, and have a good summer.
John Hadjipateras: Thank you all for joining us, and have a good summer.
Speaker #2: joining us. And have a good summer. course, is not a flight of
Speaker #7: Great. This concludes today's program.
Operator: This concludes today's program. Thank you for your participation, and you may disconnect at any time.
Operator: This concludes today's program. Thank you for your participation, and you may disconnect at any time.
