Having taken delivery seven vessels under its ECO-design VLGC newbuilding program, owner and operator of modern very large gas carriers Dorian LPG expects higher profits and cash going forward.
Namely, during the third quarter of 2016 fiscal year, Dorian LPG’s fleet was expanded with the Clermont, the Cheyenne, the Cratis, the Commander, the Chaparral, the Copernicus, and the Challenger.
”Going forward, we anticipate higher profits and cash generated from operations as a result of our larger fleet, assuming continued favorable market conditions. We will continue to evaluate ways to best return that cash to our investors, underscoring the commitment of both the board and management to increasing shareholder value,” John Hadjipateras, Chairman, President and Chief Executive Officer, commented.
The company reported a net income of USD 54.7 million in the third quarter of 2016 fiscal year and an adjusted EBITDA of USD 68.7 million.
Revenues were USD 93.3 million for the three months ended December 31, 2015, an increase of USD 60.7 million, or 186.3%, from USD 32.6 million for the three months ended December 31, 2014.
The increase is primarily attributable to USD 68.1 million of revenues contributed by sixteen of the company’s newbuilding VLGCs that were delivered subsequent to December 31, 2014.
Going forward, as a result of the growth trend, Dorian LPG believes that U.S. LPG export volumes may reach higher levels in 2016, which would support additional ship supply and a reasonably robust freight rate market environment for the sector.