US-based owner and operator of very large gas carriers (VLGCs) Dorian LPG posted a net loss of USD 1.3 million for the first quarter of 2017 fiscal year, compared to a net income of USD 13.7 million seen in the same period a year earlier.
Dorian LPG’s revenues amounted to USD 50.5 million for the three months, representing an increase of 41.7% from USD 35.6 million reported in the same period of 2015. The increase is mainly attributed to USD 30.4 million of revenues contributed by fourteen of Dorian LPG’s newbuilding VLGCs that began operation last year, the company said.
“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,” John Hadjipateras, Chairman, President and Chief Executive Officer, said.
The Daily Time Charter Equivalent (TCE) rate for Dorian LPG’s fleet saw a 52.4% drop from USD 55,474 in 2015 to USD 26,398 in the three-month period of 2016, reflecting more subdued market conditions. The company’s total fleet utilization, including the utilization of vessels deployed in the Helios Pool, went up from 89,4% reported in the same quarter a year earlier to 94,2% in the past three months.
Throughout July 2016, global seaborne LPG volumes stood at 48 million metric tons, compared to 45 million metric tons during the same period last year, according to Dorian LPG.
Activity from the U.S. Gulf and the Middle East remained high in 2016, while the pricing competition that has developed between the U.S. Gulf and the Arabian Gulf export nations kept utilization of the fleet at higher than 90% in spite of more than 30 new vessels having been delivered year-to-date.