NYSE-listed owner and operator of Very Large Gas Carriers (VLGC) Dorian LPG reported USD 16.4 million net income for the nine months ended December 31, 2014.
The company’s revenues for the nine-month period stand at USD 68.8 million, improved by a strong third quarter when Dorian accumulated USD 32.6 million in revenues, and almost USD 9 million net income.
The third quarter revenues increased by USD 18.9 million, or 137%, compared to the same period in 2013. The increase is primarily attributed to the delivery and operation of two newbuilding VLGCs in 2014. Additionally, revenues for one of Dorian’s VLGCs increased by USD 5.7 million due to a transition from time charter during the three months ended December 31, 2013 to the spot market in the current quarter.
Voyage expenses were approximately USD 7.8 million during the three months ended December 31, 2014, an increase of USD 5.0 million compared to the three months ended December 31, 2013, attributable to an increase in the number of vessels operating in the spot market,
Looking ahead, Dorian says that LPG exports this year are on track to exceed 17 million metric tons, which is roughly a 25% increase over 2014. This growth, which has been supported by export terminal expansions in the Gulf, has continued to drive high global fleet utilization and strong spot rates for VLGCs. However, the company says that there can be no guarantee that rates will remain at these levels.
The recent decline in oil prices has not had any noticeable effect on demand for LPG shipping, according to Dorian. Based on the significant investments that have already been committed in export capacity in the Gulf of Mexico, the company does not expect any change in US export growth.
The fundamentals that have propelled recent growth in global LPG demand remain largely unchanged as its attractive price levels and favorable environmental characteristics make it a preferred energy source for many sectors of the economy.
John Hadjipateras, Chairman, President and Chief Executive Officer, said: “We continued to execute on our strategic plan to build out our fleet in the third quarter with the delivery of the Corvette in early January of this year. Corvette is the third fuel efficient ECO-design VLGC to enter the Dorian fleet. We currently own and manage a modern fleet of six VLGCs and one pressurized LPG carrier with newbuilding contracts for the construction of 16 new fuel-efficient ECO-design VLGCs to be delivered in the next twelve months. I am pleased to report that we have now received debt financing commitments to complete the funding of our newbuilding program with no need to raise any additional debt or equity.”