Dorian LPG reports 1Q loss

Dorian

Dorian LPG, a leading owner and operator of modern very large gas carriers, reported its financial results for the three months ended June 30, 2016.

Highlights for the First Quarter Fiscal Year 2017

  • Revenues of $50.5 million and Daily Time Charter Equivalent (“TCE”)(1)  rate for our fleet of $26,398 for the three months ended June 30, 2016.
  • Net loss of $1.3 million, or $(0.02) earnings/(loss) per basic and diluted share (“EPS”), and adjusted net income(1) of $3.1 million, or $0.06 adjusted basic and diluted earnings per share(1), for the three months ended June 30, 2016.
  • Adjusted EBITDA(1) of $29.6 million for the three months ended June 30, 2016.
  • Increased vessel operating days to 1,885 in the three months ended June 30, 2016 from 579 in the same period in the prior year and increased fleet utilization to 94.2% from 89.4%.
  • Repurchase of 1.3 million shares of common stock for approximately $11.7 million during the three months ended June 30, 2016 under the previously announced share repurchase program of up to $100 million.

(1)  

TCE, adjusted net income, adjusted EPS and adjusted EBITDA are non-GAAP measures. Refer to the reconciliation of revenues to TCE included in this press release. Also, refer to the reconciliation of net income to adjusted net income and net income to adjusted EBITDA included in this press release.

John Hadjipateras, Chairman, President and Chief Executive Officer, commented, “Our results for the quarter, against the backdrop of an increasingly challenging freight market, reflect the benefits derived from the management of the Helios Pool and our balanced chartering strategy. Our utilization rate and daily operating expenses are at competitive levels benefiting from focused management and a modern and homogeneous fleet.  As we pursue our mission of customer service supported by our strong balance sheet, we are evaluating opportunities in the current market conditions.”

First Quarter Fiscal 2017 Results Summary

Our net loss amounted to $1.3 million, or $(0.02) per share, for the three months ended June 30, 2016, compared to net income of $13.7 million, or $0.24 per share, for the three months ended June 30, 2015.

Our adjusted net income amounted to $3.1 million, or $0.06 per share for the three months ended June 30, 2016, compared to $12.3 million, or $0.21 per share for the three months ended June 30, 2015. We have adjusted our net income for the three months ended June 30, 2016 for unrealized losses on derivative instruments of $4.4 million. Please refer to the reconciliation of net income/(loss) to adjusted net income, which appears later in this press release.

The decrease of $9.2 million in adjusted net income for the three months ended June 30, 2016 compared to the three months ended June 30, 2015 is primarily attributable to an $11.3 million increase in depreciation and amortization, a $9.3 million increase in vessel operating expenses, a $6.9 million increase in interest in finance costs, and a $1.1 million increase in realized loss on derivatives, partially offset by a $14.9 million increase in revenues, a $2.7 million decrease in voyage expenses, and a $1.6 million decrease in general and administrative expenses.

The TCE rate for our fleet was $26,398 for the three months ended June 30, 2016, a 52.4% decrease from the $55,474 TCE rate from the same period in the prior year, reflecting more subdued market conditions. However, total fleet utilization (including the utilization of our vessels deployed in the Helios Pool) increased from 89.4% in the quarter ended June 30, 2015 to 94.2% in the first quarter of fiscal 2017. Please see footnote 6 below for other information related to how we calculate TCE.

Vessel operating expenses per day declined to $8,040 in the three months ended June 30, 2016 from $10,203 in the same period in the prior year. This decrease is primarily due to the increase in the proportion of new VLGCs in our fleet and the phasing out of training costs for new crews that were incurred in the prior period.

Revenues

Revenues, which represent net pool revenues—related party, voyage charters, time charters and other revenues earned by our VLGCs, were $50.5 million for the three months ended June 30, 2016, an increase of $14.9 million, or 41.7%, from $35.6 million for the three months ended June 30, 2015. The increase is primarily attributable to $30.4 million of revenues contributed by fourteen of our newbuilding VLGCs that began operations subsequent to June 30, 2015. This increase was partially offset by a decrease in revenues of $14.6 million, primarily due to a decrease in VLGC rates for vessels that were operating in our fleet during both three month periods, and a decrease of $0.9 million in revenues contributed by a pressurized gas carrier operating in our fleet during the three months ended June 30, 2015 that was sold prior to the three months ended June 30, 2016.

Voyage Expenses

Voyage expenses were $0.8 million during the three months ended June 30, 2016, a decrease of $2.7 million, from $3.5 million for the three months ended June 30, 2015. Voyage expenses are all expenses unique to a particular voyage, including bunker fuel consumption, port expenses, canal fees, charter hire commissions, war risk insurance and security costs. Voyage expenses are typically paid by us under voyage charters and by the charterer under time charters, including pooling arrangements. Accordingly, we mainly incur voyage expenses for voyage charters or during repositioning voyages between time charters for which no cargo is available or travelling to or from drydocking. The decrease for the three months ended June 30, 2016, when compared to the three months ended June 30, 2015, was mainly attributable to the fact that none of our VLGCs operated on voyage charters outside of the Helios Pool during the three months ended June 30, 2016 resulting in decreases in VLGC bunker costs of $2.0 million and port expenses of $0.5 million, partially offset by an increase in other voyage expenses of $0.2 million. In addition, a pressurized gas carrier operating in our fleet during the three months ended June 30, 2015 incurred voyage expenses of $0.4 million for the three months ended June 30, 2015 that did not recur during the three months ended June 30, 2016 as it was sold prior to the period.

Vessel Operating Expenses

Vessel operating expenses were $16.1 million during the three months ended June 30, 2016, or $8,040 per vessel per calendar day, which is calculated by dividing vessel operating expenses by calendar days for the relevant time period for the vessels that were in our fleet. This was an increase of $9.3 million from $6.8 million for the three months ended June 30, 2015. The gross increase was primarily the result of an increase in the number of vessels operating in our fleet during the three months ended June 30, 2016 compared to the three months ended June 30, 2015. Vessel operating expenses per calendar day decreased $2,163 from $10,203 for the three months ended June 30, 2015 to $8,040 for the three months ended June 30, 2016. The decrease in vessel operating expenses per day of $2,163 was largely due to a $1.1 million, or $1,689 per vessel per calendar day, reduction in costs relating to the training of additional crew along with the addition of newer vessels, which incur lower operating costs.

Depreciation and Amortization

Depreciation and amortization was $16.2 million for the three months ended June 30, 2016, an increase of $11.3 million, or 233.4%, from $4.9 million for the three months ended June 30, 2015 that mainly relates to depreciation expense for our additional operating vessels.

General and Administrative Expenses

General and administrative expenses were $5.6 million for the three months ended June 30, 2016, a decrease of $1.6 million, or 22.2%, from $7.2 million for the three months ended June 30, 2015. The decrease was mainly due to a decrease of $1.5 million for salaries, wages and benefits (primarily from $2.1 million in cash bonuses to various employees approved by the Board of Directors in May 2015, partially offset by a $0.6 million increase in salaries, wages and benefits resulting from an increase in the number of employees) and $0.3 million for certain non-capitalizable costs incurred prior to vessel delivery, partially offset by an increase of $0.1 million for stock-based compensation and $0.1 million for other general and administrative expenses.

Other Income —Related Parties

Other income —related parties amounted to $0.6 million for the three months ended June 30, 2016, an increase of $0.2 million, or 44.1%, from $0.4 million for the three months ended June 30, 2015. The increase was primarily attributable to an increase of $0.1 million of fees for commercial management services provided by Dorian LPG (UK) Ltd. to the Helios Pool as well an increase of $0.1 million for certain chartering and marine operation services provided by Dorian LPG (USA) LLC and its subsidiaries to Dorian (Hellas), S.A.

Interest and Finance Costs

Interest and finance costs amounted to $7.0 million for the three months ended June 30, 2016, an increase of $6.9 million, or 5,082.8%, from $0.1 million for the three months ended June 30, 2015. The increase of $6.9 million during this period was mainly due to a $5.5 million increase in interest incurred on our long-term debt, amortization and other financing expenses, including capitalized interest, from $1.5 million in the three months ended June 30, 2015 to $7.0 million in the three month period ended June 30, 2016. Additionally, we had no capitalized interest during the three months ended June 30, 2016 compared to $1.4 million during the three months ended June 30, 2015. The average indebtedness, excluding deferred financing fees, during the three months ended June 30, 2016 was $835.3 million compared to $215.5 million during the three months ended June 30, 2015, reflecting debt drawdowns made under our 2015 Debt Facility. The outstanding balance of our long term debt as of June 30, 2016 was $820.7 million excluding deferred financing fees of $22.9 million.

Unrealized Gain/(Loss) on Derivatives

Unrealized gain/(loss) on derivatives amounted to a loss of approximately $4.4 million for the three months ended June 30, 2016, compared to a gain of $1.4 million for the three months ended June 30, 2015. The $5.8 million change is primarily attributable to changes in the fair value of our interest rate swaps due to changes in forward LIBOR yield curves.

Realized Loss on Derivatives

Realized loss on derivatives amounted to a loss of approximately $2.3 million for the three months ended June 30, 2016, an increase of $1.1 million, or 81.3%, from a loss of $1.2 million for the three months ended June 30, 2015. The increase is primarily attributable to six interest rate swaps we entered into subsequent to June 30, 2015, which increased our notional debt amounts.

Share Repurchase Program

In August 2015, our Board of Directors authorized a stock repurchase program of up to $100.0 million of our common stock on or before December 31, 2016. As of June 30, 2016, we repurchased a total of 3,187,765 shares of our common stock for approximately $32.6 million under this program, resulting in $67.4 million of available authorization remaining. During the three months ended June 30, 2016, we repurchased 1,255,300 shares of our common stock for approximately $11.7 million.

LEAVE A COMMENT

Comments (18)

… [Trackback]

[…] Informations on that Topic: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] There you will find 89163 more Infos: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] Read More here: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] Read More: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] There you will find 86396 more Infos: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] Find More Informations here: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] There you will find 29663 more Infos: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] Find More Informations here: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] Read More here: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] Read More: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] There you will find 29100 more Infos: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] There you will find 73821 more Infos: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] Read More here: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] There you will find 34103 more Infos: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] Find More Informations here: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] Read More Infos here: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] There you will find 42411 more Infos: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

… [Trackback]

[…] Read More on|Read More|Read More Infos here|Here you will find 50383 additional Infos|Informations on that Topic: shippingherald.com/dorian-lpg-reports-1q-loss/ […]

×

Comments are closed.