Gas carrier owner and operator Dorian LPG has decided to increase its investment in exhaust gas cleaning systems, rising the total of scrubbers under contract to ten.
Namely, the company said it signed agreements for three additional scrubbers, following the initial investment in this technology revealed in August 2018. All of the units, ordered ahead of the upcoming 2020 sulphur cap, would use hybrid technology, Dorian LPG added.
“While the debate rages over IMO 2020, we expect to have twelve of our twenty-two ships fitted with exhaust gas cleaning systems. We believe this will enhance the competitive advantage we have as the owners and operators of the most modern ECO fleet amongst our peers,” John C. Hadjipateras, Chairman, President and CEO of Dorian LPG, said.
The company unveiled the investment as part of its third quarter ended December 31, 2018 financial report, in which it said that its revenue increased during the period. Dorian LPG’s revenue reached USD 55.1 million, rising from USD 44.5 million, while daily time charter equivalent (TCE) rate increased to USD 30,108 for the third quarter, compared to a TCE rate of USD 22,833 reported in the same period a year earlier.
Despite a rise in revenue, the company delivered a net loss of USD 6.2 million for the three months ended December 31, 2018, against a net income of USD 1.67 million reported in the same period a year earlier.
“The average Baltic rate in the quarter was USD 42.3 per metric ton compared to USD 40.1 per metric ton in the July to September quarter. In October, the Baltic peaked at a little over USD 48 per metric ton. The wild movements in oil prices impacted trade in LPG. The Baltic has since dropped to nearly USD 25 per metric ton as a result of a contraction from the record-breaking volumes shipped in the July to September quarter,” Hadjipateras explained.
“Looking ahead, we are optimistic about U.S. export capacity and demand growth in Asia.”