DORIAN LPG February 2021 - Investor Presentation - DORIAN LPG Investor Presentation
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Investor Presentation
DORIAN LPG
February 2021Disclaimer
Forward-Looking Statements
This presentation contains certain forward-looking statements including analyses and other information based on
forecasts of future results and estimates of amounts not yet determinable and statements relating to our future
prospects, developments and business strategies. Forward-looking statements are identified by their use of terms
and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,”
“will” and similar terms and phrases, including references to assumptions. The forward-looking statements in this
presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, management’s examination of historical operating trends, data contained in our records
and other data available from third parties. Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant uncertainties and contingencies that are
difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish
these expectations, beliefs or projections.
Actual results could differ materially from expectations expressed in the forward-looking statements if one or more of
the underlying assumptions or expectations proves to be inaccurate or is not realized. Our actual future results may
be materially different from and worse than what we expect. We qualify all of the forward-looking statements by these
cautionary statements. We caution readers of this presentation not to place undue reliance on forward-looking
statements. Any forward-looking statements contained herein are made only as of the date of this presentation, and
we undertake no obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
2Dorian LPG at a Glance
US-Based with Global Presence
Dorian LPG is a liquefied petroleum gas (LPG)
shipping company and a leading owner and
operator of modern very large gas carriers
(VLGCs) Copenhagen
London
Stamford Athens
The Company provides in-house commercial and
technical management services for all owned and
bareboat-chartered vessels in the fleet
Singapore
Large commercial footprint with 24 and vessels1
co-manager of the Helios LPG Pool, which operates Current VLGC Fleet Age Profile2
33 vessels total and is jointly owned with Phoenix 12.0
Tankers 10.5
10.0
Modern, fuel-efficient fleet comprised of 19 ECO 8.0 7.1
VLGCs and three modern VLGCs, in addition to
years old
two chartered-in VLGCs 6.0
Average age of owned fleet is 7.1 years vs. 4.0
global fleet average age of 10.5 years
2.0
-
Dorian LPG Global Fleet
1. Includes Dorian’s TC-in vessels, Future Diamond and Astomos Earth
Source: CRSL
2. Excludes Dorian’s chartered-in vessels; global fleet excludes ethane carriers 3Investment Highlights
Dorian LPG is a Market Leader in LPG Shipping
• ECO vessel fuel efficiency translates to superior earnings potential vs. peers
Best in Class Fleet • 10 scrubber-fitted vessels; committed to two additional scrubbers
• Average Efficiency Ratio (AER) of 7.371 vs. 2020 Trajectory Value of 8.342
• Dorian LPG is one of the three largest operators of VLGC tonnage
Large Commercial
• Including the Helios LPG Pool, Dorian commercially operates 33 vessels 3
Platform
• Scale allows for a mix of spot, COAs, and time charters
• ~$133.7 million of cash and equivalents as of December 31, 2020
Well Capitalized • Additional $25.0mm in liquidity from undrawn revolver
• No refinancing required until 2025
Strong Fundamentals in the LPG Freight Market
• U.S. seaborne export growth driving global volumes
Global NGL Volume
• U.S. NGL production shows few signs of slowing down over long term
Growth
• Infrastructure expansions should enable U.S. LPG production and export growth
• Demand should remain resilient as new PDH units that came on-stream ramp up production
Asian LPG Demand • A wave of new chemical and PDH plants are planned and are under construction globally
• LPG retail use continues to grow in India and rural China
• Traditional AG-Japan benchmark less indicative of freight environment
Emerging Trade Routes • U.S. Gulf to Japan is increasingly important due to significant U.S. export volumes
• U.S. trade flows to China have continued following COVID-related tariff waivers
1. Trailing twelve-month weighted average
2. Based on IMO guidelines
3. In addition to 31 VLGCs in the Helios LPG Pool, two Dorian LPG vessels are on long-term time charter
4Dorian LPG
Modern and Energy Efficient Fleet
Balanced Fuel Strategy – Hybrid Scrubbers and Potential Upgrade to LPG as Fuel
Vessel Name Built Scrubber Retrofit
Installed Capable
Caravelle 2016 ✓ • Corvette and Concorde delivered scrubber equipped in 2015
Challenger 2015 ✓
Copernicus 2015 ✓ ✓ • Dorian LPG announced the purchase of ten hybrid scrubbers from Clean
Chaparral 2015 ✓ Marine A/S and Pure Ocean Technology
Commander 2015 ✓
Cratis 2015 ✓ ✓ • Planned drydock and upgrades have been completed on 10 vessels; two
Cheyenne 2015 ✓ ✓ vessels are expected to enter the shipyard in the coming months
Clermont 2015 ✓
• The Company has been at the forefront of evaluating LPG as a marine
Constellation 2015 ✓ ✓
fuel, completing a feasibility study with the American Bureau of Shipping
Cresques 2015 ✓ ✓ and signing a letter of intent with Hyundai Heavy Global Services for the
Commodore 2015 ✓ upgrade of up to ten vessels
Constitution 2015 ✓ ✓
Continental 2015 ✓ • Current LPG-VLSFO cost differential does not fully support the investment
Cobra 2015 ✓ required to retrofit vessels for use of LPG as a primary marine fuel, but
Concorde 2015 ✓ ✓ prospects are expected to improve
Cougar 2015 ✓
Corvette 2015 ✓ • Sixteen of Dorian LPG’s ECO VLGCs were built with strengthened decks to
Corsair 2014 ✓ accommodate LPG fuel deck tanks in anticipation of potential LPG engine
Comet 2014 ✓ upgrades
Capt. Nicholas ML 2008
Capt. John NP 2007
Capt. Markos NL 2006
ECO Modern
6Committed to Reducing our Environmental Footprint
Improving Fleet Environmental Performance1
Dorian LPG is a Leader for Lowering VLGC Emissions
• 2020 Fleet AER has tracked well below targeted trajectory values
• Compliant with the International Maritime Organization (IMO) GHG Strategy
• Signatory to the Global Maritime Forum’s Getting to Zero Coalition
• April 2020 refinancing of $155.8mm is linked to AER performance, conforming to “Sustainability Linked Loan Principles”
Note: Energy Efficiency Operational Indicator (EEOI) is an IMO-mandated measurement of a vessels true carbon intensity based on fuel consumption data derived through the use of
standardized onboard data collection systems (DCS),adjusted for the amount of cargo carried over the measurement period; Annual Efficiency Ratio (AER) is a similar measure, although less
accurate, used by the Poseidon Principles to measure annual carbon emission per nautical mile sailed adjusted for a vessel’s deadweight tonnage
1.
2.
Dorian LPG’s 22 technically managed vessels as measured by IMO Data Collection Systems regulations over a trailing twelve-month average
Based on IMO guidelines; 2020 AER trajectory value of 8.34, decreasing by .22 grams annually 7Dorian LPG is a Leader in Fuel Efficiency
Average Fuel Consumption by Vessel Profile1 Dorian LPG’s Fleet Composition
65 63.0 • 19 Korean-built fuel-efficient
60.0
60 58.5
57.3 ECO VLGCs with an avg. age of
54.0 6.1 years
55
MT / day
49.5
50 46.5
48.0 • Three HHI-built Non-Eco built
45.0
45 VLGCs with an avg. age of 14.0
41.0
years
40
35 • ECO fuel-efficient vessels offer a
Korean ECO Chinese ECO HHI Modern DSME Modern Japanese
Legacy substantial earnings advantage
relative to older tonnage
Laden Ballast
Estimated Annual Fuel Cost by Vessel Profile1,2
$7.0
$6.1 $5.9
$6.0
$5.1
$4.8 $4.6
$5.0 $4.3 $4.4
$3.9
millions
$4.0 $3.6
$3.3 $3.1 $3.0
$3.0 $2.4 $2.6
$2.2
$2.0
$1.0
-
Korean ECO Chinese ECO HHI Modern DSME Modern Japanese Legacy
$200 / MT $300 / MT $400 / MT
Source: Dorian LPG management estimates
1.
2.
ECO denotes vessels built after 2014; Modern denotes vessels built 2006-2013, legacy denotes vessels built in the early 2000s
Basis Ras Tanura to Chiba: 16kt speed ballast and laden; 36.6 sailing days roundtrip, split evenly ballast and laden; 252 days/year; Japanese vessels sail 15kt laden, 37.9 sailing days roundtrip 8The Leading VLGC Commercial Platform
Dorian LPG Commercially Manages 33 Vessels1
Helios LPG Fleet Composition1
• The Helios LPG Pool is a 50/50 partnership between Dorian 25
LPG and Phoenix Tankers, a subsidiary of MOL of Japan 22
20
• The primary goal of the Pool is to create a critical mass of
reliable and efficient VLGCs to allow Helios to provide the
15
vessels
most dependable global LPG maritime solution – offering
spot freight, TCs, and COAs facilitates flexibility and
affordability, while optimizing earnings for all partners 10
• Earnings are allocated to each vessel participating in the 5 4
2 2
Pool based on “Pool Points,” which are awarded based on 1
vessel characteristics such as carrying capacity and fuel -
consumption over the relevant period Dorian LPG Phoenix Clearlake Vilma Astomos
Tankers
1. Dorian LPG jointly operates 31 vessels in the Helios LPG Pool 9Global LPG Supply / Demand
Global Seaborne LPG Volumes Remain Healthy
Global Liftings Down Slightly by 2% Y/Y
120 2020
109.1 106.8
110
106.8
100 95.1 MT
90.6 92.5
90 85.4
MT
80 - 2%
70
60 109.1
MT
50
2019
40
2015 2016 2017 2018 2019 2020
U.S. Waterborne Exports Up by 16% Y/Y Arabian Gulf Waterborne Exports Down by 10% Y/Y
50 46.1 2020 40 39.2 39.0 39.7 2020
45
39.7 36.7 36.7 35.7
46.1 MT
40 35.7 MT
35 32.7 35
29.5
30
MT
MT
25.3
25 + 16% - 10%
20.5
20 30
15 39.7
39.7 MT
MT
10
5 2019 25 2019
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020
Source: IHS Waterborne
Note: Values shown through December 31, 2020 11U.S. LPG Continues to Grow Global Market Share
A New Era of Supply
• The U.S. has emerged as the world’s leading exporting
nation, forcing price competition amongst all suppliers
• U.S. export growth has surprised to the upside – exports
are up 16% Y/Y
• U.S. exports account for 43% of global seaborne trade in
2020
• Increased capacity from recent infrastructure additions
supports positive long-term fundamentals
Seaborne LPG Exports by Origin
100%
11% 10% 7% 10%
14% 13%
8% 6%
8% 8%
80% 11% 10% 10% 8%
10% 10%
10% 10%
60% 33%
41%
43% 40%
43%
40% 46%
20% 43%
32% 34%
24% 28%
18%
-
2014 2015 2016 2017 2018 2020
US MEG N. Sea Med Others
Source: EIA, IHS Waterborne
Note: Values shown through December 31, 2020 12Evolving U.S. NGL and LPG Seaborne Trade Flows
U.S. VLGC Cargoes to Asia Remain Resilient Despite Lockdowns
2019 2020 • 2020 VLGC liftings from the U.S
have increased 14% Y/Y
• 2020 arbs to the East began the
Europe 18%
Americas 22% year strong and have largely held
Europe 19% Americas 25% to present
Africa SE Asia 7% Africa
SE Asia 3% 3% • Chinese PDH and other Asian
7% India 2%
cracking demand are expected to
India Far East outstrip MEG supply, and force
3% Far East 48% suppliers to look West, boosting
44%
ton miles
More U.S. Supply Heading to China
100% • U.S. supply accounted for 29% of
23%
China’s imports in 2020
24% 29% 25%
80% 33% 37%
• China waived tariffs on U.S. LPG
15% 19% 15%
60% 8% 19% imports in March 2020, resuming
18% 12% 18% 16% purchases
20% 14%
40% 16% 10%
10% 14% 19%
5% • Chinese demand is set to increase
7% 19%
8% 10% as new PDH projects come online
20% 17%
24% 14% 29% in 2021
21% 18%
6% 10%
-
2015 2016 2017 2018 2019 2020
U.S. Saudi Arabia UAE Iran Qatar Others
Source: EIA, IHS Waterborne
Note: VLGC cargo values shown through December 31, 2020 13Expanded Fractionation Should Push U.S. LPG Supply Higher
Large Expansion of U.S. Capacity in 2020 Increased LPG Production Capacity
11.0 2.5
Propane Production (MMbbl/d)
0.7
10.0
Frac Capacity (MMbbl/d)
1.5 2.0
9.0
0.7
1.5
8.0 0.2 0.5
0.3
7.0
0.9 1.0
6.0 0.7
0.2 0.6 0.5
5.0
4.7 4.7 4.9 5.6 6.3 7.1 7.4 7.6 8.1 8.8 10.3
4.0 -
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Existing Frac Incremental Frac Propane Production
Major Gulf Coast Processing Constraints Have Eased, Supporting Future LPG Production Growth
• Increased processing infrastructure throughput is a key to long-term LPG production growth
• 1.5 MMbbl/d of incremental frac capacity was brought online in 2020; 700 Mbbl/d expected in 2021
• 1.7 MMbbl/d of incremental y-grade pipeline capacity came online in 2020
• Increased capacity should allow for greater NGL extraction from U.S. gas stream
Source: EIA, Platts, Company Reports 14U.S. LPG Supply Expected to Keep Price Competitive
U.S. Propane Production Continues at Five Year Highs
2.6 • U.S. production continues to show
resilience
2.4
• 2020 production averaged 2.2
2.2
MMbbl/d – 2.9% above the 2019
average of 2.13 MMbbl/d
MMbbl/d
2.0
1.8 • 4Q20 PADD III production has
averaged 1.37 Mbbl/d, 12% higher
1.6
than the 4Q19 average of 1.23
1.4 Mbbl/d
1.2 • YTD, production volumes have
J F M A M J J A S O N D
averaged 2.3 MMbbl/d, making 5-
5-yr Range 2021 year highs
Seasonally Low Inventories Should Push Production Levels Higher
120 • Inventories saw three months of
declines from increased seasonal
100 demand and higher exports
80 • Inventories currently stand at 56.1
MMbbl
MMbbl/d, 9.4% below the five-year
60 average
40
20
J F M A M J J A S O N D
5-yr Range 2021
Source: EIA
Note: As of January 29, 2020
15Increasing North American LPG Export Capacity
5 MTPA of Incremental Export Capacity in 2021, Translates to an Additional 9 Monthly VLGC Cargoes
75
66.8
65 59.2
54.3
55
45 40.1
MT
30.8 32.7
35
25.9
25 21.0
14.8
15 9.3
5
2013 2014 2015 2016 2017 2018 2019 2020 2021E 2022E
USGC Atlantic Pacific
North American LPG Export Capacity Stands at ~74% Utilization
• 14.2 MTPA of export capacity was added in 2020, translating to ~25 incremental monthly cargoes
• Recent capacity increase should sustain continued export growth
• Lonestar NGL at Nederland added 6.9 MTPA of capacity or 12 monthly VLGC cargoes in December 2020
• Optimization at Altagas’ RIPET has added an additional quarterly cargo
• Enterprise’s 7.6 MTPA EHT expansion has been delayed and ME2 expansion remains uncertain
Source: IHS Waterborne, Company documents, Dorian LPG Estimates 16
16New Wave of China PDH Plants to Drive Asian LPG Demand
Chinese LPG Demand Outlook Remains Favorable
• China’s 4Q20 imports decreased by 2.2% Y/Y to 5.2 MTPA vs. 5.3 MTPA in 4Q19
• 2020 imports decreased by 4.7% Y/Y to 19.6 MTPA vs. 20.5 MTPA last year, due to effects of lockdowns
• Imports are expected to increase in 2021 with seven new PDH plants coming online
• PDH utilization averaged nearly 81% in December, down slightly from 85% in November
Lunar New Year and Lockdowns Impacted 2020 Demand, but expect increased demand from new PDH units
25.0
20.5
19.6
20.0 18.3 18.8
15.9
15.0
11.9
MT
10.0
6.9
5.0 4.2
-
2013 2014 2015 2016 2017 2018 2019 2020
Source: Bloomberg
Note: Values shown through December 30, 2020
17New Chinese PDH Plants Support Additional Imports
27 Planned Projects are Expected to Add 13.7 MTPA of LPG Demand through 2024
Company
Est. Demand Est. • Demand is expected to improve further as units built last year
('000 tons) Completion begin to ramp up
Fujian Meide 730 1Q21
Oriental Energy (No. 2) 730 1Q21 • In 2021, we expect seven new PDH start-ups, which would
Ningbo Huatai Shengfu Polymeric Material 160 1Q21 add about 4.1 MTPA of PDH capacity
Jinneng Science & Technology 990 2Q21
Shandong Huifeng 280 2Q21 • 20 additional units are planned to between 2022-2024, totaling
Zibo Qixiang Tengda 500 3Q21 up to 13 MTPA of demand
Ningxia Runfeng New Material Technology 660 4Q21
Formosa Industries (Ningbo) 660 1H22
Zhejiang Petrochemical (Ronsheng) (No. 2) 660 2022
China Gas/Yanchang Petroleum 660 2022
Guangdong Guohan Energy Technology 660 2022
Shandong Minggang Chemical 660 2022
Shandong Tianhong (Wanda Petrochemical) 500 2022
Jiangsu Jiarui Chemical 500 2022 / 2023
Oriental Energy & Guangdong Jinhui 1200 2023
Shenzhen Grand Resource (No. 2) 660 2023
Zibo Qixiang Tengda Expansion 270 2023
Sichuan Chemical Works Group 660 2023
Ningbo Kingfa Advanced Materials (No. 2) 660 2023
Jiangsu Sailboat Petrochemical Co. 840 2023
Shandong Binhua New Material 720 2023
Oriental Energy (Ningbo) (No.3) 730 2023
Guangxi Huayi New Material 900 2023
Zhejiang Satellite Petrochemical (No.3) 900 2023
SP chemicals 660 2023
China ZhenHua Oil 1000 2024
Guangdong Penzun Energy 320 2024
Source: NGLS 18Indian LPG Demand Continues to Accelerate
Continued Subsidies and Lockdowns Support Growing LPG Consumption
18.0
16.3
16.0 14.5
14.0
11.9 12.2
12.0
10.2
10.0 8.9
MT
8.1
8.0
6.0
6.0
4.0
2.0
-
2013 2014 2015 2016 2017 2018 2019 2020
Government Policies and Infrastructure Development to continue Boosting Consumer Adoption
• India achieved 80mm free LPG connections six months ahead of its March 2020 deadline
• Consumer LPG subsidies were extended in March in response to COVID-19 shutdowns
• Reduced refinery utilization from COVID-19 has decreased LPG yields and increased import demand
• India’s 4Q20 imports increased by 9.5% Y/Y to 4.3 MTPA vs. 4.0 MTPA in 4Q19
• 2020 imports increased by 12% to 16.3 MTPA from 14.5 MTPA last year, fueled by increased domestic cooking demand
• Proposed green tax on petrol and diesel vehicles could drive up demand for LPG for Autogas
• The nation is largely expected to become the worlds largest res/com LPG user by 2030
Source: Bloomberg
Note: Values shown through December 31, 2020
19Asian Cracking Demand Dependent on LPG / Naphtha Spread
Additional Asian Cracking Capacity is Planned FE Propane / Naphtha Spread has Reversed1
2015 2016 2017 2018 2019 2020 2021
Estimated $100
Company Location LPG Required $87
Completion
('000 tons)
Ningbo Huatai Shengfu China 1,100 1Q21
Sinopec /SK Wuhan China 350 2021 $50
Gulei Petrochemical/Sinopec China 500 2021
MOC (SCG/Dow) Thailand 600 2021
Hyosung/Phu My Plastics Vietnam 720 2021 -
LG Chem S. Korea 500 2Q21 $(1)
PMT
HMEL HPCL-Mittal India 1,000 2021 $(19)
$(22)
GS Caltex S. Korea 200 2022
$(50)
Luqing Petrochemical China 200 2022
ExxonMobil China 680 2023 $(58)
$(65)
Long Son (SCG Chemica) Vietnam 500 2023
Hyundai Chemical S. Korea 187 2024 $(100)
$(97)
Pertamina Indonesia 2,500 2025
$(150)
Note: Negative spread denotes LPG is cheaper than naphtha
Source: NGLS, Bloomberg
1. As of February 5, 2021
20VLGC Shipping Market Dynamics
VLGC Spot Rates Remain Healthy
Baltic VLGC Daily Spot Rates
Baltic TCE/Day
$120K
$105K
$90K
$75K
TCE / day
$60K
$45K
$30K
$15K
-
A-18
A-19
A-20
O-18
O-19
O-20
J-18
J-18
J-19
J-19
J-20
J-20
J-21
Rate Commentary Fleet Utilization Remains Healthy
• Houston-to-Chiba is currently at $85 PMT, while Ras Tanura- 100%
to-Chiba now stands around $43 PMT 93% 92% 93%
90% 90%
90% 88% 88% 88%
• OPEC production cuts and tariff waivers have increased 87%
demand for U.S. export volumes, growing ton-mile demand 84%
• Baltic spot rates have averaged $71,500/day QTD vs. 80%
$67,186/day during the quarter ended December 31st, 2020
70%
2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Source: Baltic Exchange, Clarksons
Baltic rates as of February 05, 2021
22Canal Delays and Heavy Fleet Maintenance to Continue in 2021
Panama Canal Delays and Changes to Booking Transit should Continue to Delay Tonnage
• VLGC Panama Canal delays grew as high as two weeks during 4Q20 due to heavy traffic and COVID-related delays
• On December 31, 2020, the Canal Authority announced a new booking process that disallows prebooking slots for VLGCs
• The new booking system prioritizes container, LNG, and passenger vessels, pushing VLGCs to the back of the line
• Expect more vessels to route from U.S. to Asia via Cape of Good Hope to avoid the Canal, increasing ton miles
As many as 90 VLGCs Could be Survey Due in 2021
43
• Dorian LPG’s fleet's maintenance was mostly
45
completed in 2019/2020 due to scrubber installations
40
35
• Up to 90 vessels or ~30% of the global fleet are likely to
require maintenance and be temporarily removed from
30 trading during 2021
vessels
25
19
• 2020 and 2021 are heavy years for five-year
20 maintenance due to the global fleet’s age profile, which
15
15 13 is heavily weighted to 2015 and 2016 deliveries
10
• In 2020, many owners delayed maintenance due to
5 strong rates and COVID-related issues at shipyards
-
1Q21 2Q21 3Q21 4Q21
Source: Clarksons, Fearnley 23Vessel Supply Remains Balanced
39 VLGCs are Currently On Order
50
• Orderbook-to-fleet stable at ~14%
40
• First LPG-fueled vessels expected to deliver in 2021
vessels
30
• 2021 deliveries expected to be 2H21 weighted
20
• 71 vessels or 23% of the global fleet are due for
10
drydocking and five-year special surveys in 2021
35 41 21 8 17 21 10 9
20
-
2015 2016 2017 2018 2019 2020 2021E 2022E 2023E
Delivered On Order
15% of VLGC Fleet is 20+ Years Old
120 scrapping zone
102
• 39 forward deliveries vs. 47 vessels potential scrapping
100 candidates
80 70 • No vessels have been scrapped in 2019 and 2020
vessels
62
60 • Average fleet age stands at 10.5 years old
40 30 • IMO 2020 regulations may accelerate scrapping pressure
23 as compliance costs make less efficient ships
17
20 increasingly uneconomical
-Financials
Quarter Ending December 31, 2020 – Earnings Highlights
• Fleet TCE / Operating of $42,298 / day
VLGC Rates / Utilizaton
• Fleet Utilization of 96.2%
• Fleet Opex (reported) of $9,487 / day
Operating Expenses
• Fleet Opex (ex-drydock) of $9,189 / day
Adjusted Net Income • Adjusted Net Income of $35.3mm or $0.70 / diluted share
Adjusted EBITDA • Adjusted EBITDA of $60.1mm
Scrubber Installation • Commander and Clermont are planned to enter drydock for scrubber fitting in the coming months
• Commenced self tender offer to purchase up to 7.4 million shares, or about 14.8%
Tender Offer
of current shares outstanding, at a price of $13.50 per share
• Share repurchase authorization increased to $50mm and extended through
Share Repurchase
December 31, 2021
26Annual Financial Overview
Fleet TCE / Operating Day1 Adjusted EBITDA1
$60,000 $250 $232.8
$55,087
$49,665 $204.9
$50,000
$200
$42,798
TCE / operating day
$40,000
$150
millions
$30,000
$22,037 $21,966 $21,746 $100 $83.3
$20,000 $74.5
$64.4
$47.3
$50
$10,000
- -
FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20
Vessel Operating Expense / Calendar Day1 Net Debt to Capitalization2
$12,000
$10,703 45%
42.9%
$10,000 $8,877
$8,581 $8,329 43%
$8,233 $8,009
OpEx / calendar day
$8,000 41.1%
40.8%
41%
$6,000 39.7%
$8,359 39%
$4,000 $8,175 $8,008 $8,205
$2,000 37%
NM 35.3%
$58 $1 $124 $518
- 35%
FY15 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17 FY18 FY19 FY20
DD / SS costs OpEx Series2
1.
2.
Refer to SEC filings for definitions
Net Debt defined as (Total Debt – Cash – Restricted Cash – Short-term Investments); Net Debt to Capitalization defined as (Net Debt / Net Debt + Shareholders’ Equity) 27Quarterly Financial Overview
Fleet TCE / Operating Day1 Adjusted EBITDA1
$60,000 $80
$51,888 $67.2
$70
$50,000
$59.9 $60.1
$43,410 $42,298 $60
$41,249
TCE / operating day
$40,000
$50
millions
$41.1
$30,000 $26,015 $40
$30
$20,000 $22.3
$20
$10,000
$10
- -
3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21
Vessel Operating Expense / Calendar Day1 Net Debt to Capitalization2
$12,000 40%
$10,591
$9,452 $9,407 $9,487
$10,000
$8,686
35.8%
OpEx / calendar day
35.3%
$8,000 35%
32.9% 33.1%
$6,000 $9,613 31.6%
$8,413 $8,556 $9,189
$8,295
$4,000 30%
$2,000
$391 $298
$1,039 $851 $978
-
25%
3QFY20 4QFY20 1QFY21 2QFY21 3QFY21
3QFY20 4QFY20 1QFY21 2QFY21 3QFY21
DD / SS costs OpEx
1.
2.
Refer to SEC filings for definitions
Net Debt defined as (Total Debt – Cash – Restricted Cash – Short-term Investments); Net Debt to Capitalization defined as (Net Debt / Net Debt + Shareholders’ Equity) 28Balance Sheet Strength Allows Capital Return to Shareholders
Actively Managed Balance Sheet Enhances Corporate Flexibility
• Refinanced Commercial Tranche of 2015 Facility in April 2020, raising $155.8mm + $25.0mm Revolver
o Extended maturity to 2025 and reduced commercial tranche amortization to $600,000 from $12.3mm
o Reduced margin to 250 bps from 275 bps
▪ Subject to a 10 bps upward/downward adjustment based on LTV
▪ Subject to a 10 bps reduction based on technically-managed fleet average efficiency ratio (AER)
• Released net proceeds of ~$24.0mm through Japanese Financing of the Cresques
o $71.5mm sale-leaseback was used to prepay a portion of the 2015 Facility
o Monthly amortization of $285,000 with an interest expense of one month LIBOR plus 2.5%; no covenants
• Repurchased Captain John NP in Oct. 2020 from sale-lease back counterparty with $18.3mm cash outflow
o Eliminating 6.0% debt and reduced Company cash cost per day by ~$300
o Vessel presently unencumbered
• ~90% of Company debt is fixed or hedged; current total cost of debt is ~3.7%
Demonstrated Commitment to Returning Shareholder Capital
• Announced $100mm self tender offer on Feb. 2, 2021 to purchase up to 7.4mm shares at $13.50 per share on
March 3, 2021
• Returned $60.7mm to share holders since August 2019 through repurchasing ~5.5mm shares, with $47.9mm of
additional repurchase authority remaining
• Assuming full subscription of the tender offer, Dorian LPG will have repurchased ~28% of the shares outstanding
following its May 2014 IPO
29Statement of Operations (USD)
Three Months Ended Three Months Ended
Statement of Operations Data December 31, 2020 December 31, 2019
(Unaudited) (Unaudited)
Revenues $ 88,479,024 $ 85,437,806
Voyage expenses (752,404) (1,178,702)
Charter hire expenses (4,392,132) (2,071,206)
Vessel operating expenses (19,202,291) (19,131,124)
Depreciation and amortization (17,253,447) (16,710,403)
General and administrative expenses (5,548,526) (5,037,783)
Other income—related parties 545,311 450,169
Operating incom e $ 41,875,535 $ 41,758,757
Interest and finance costs (6,087,193) (8,778,905)
Realized gain/(loss) on derivatives (760,991) 449,276
Other income, net 797,913 2,199,784
Net Incom e $ 35,825,264 $ 35,628,912
Other Financial Data
Time charter equivalent rate (1) $ 42,298 $ 43,410
(2)
Daily vessel operating expenses $ 9,487 $ 9,452
(3)
Adjusted EBITDA $ 60,131,348 $ 59,874,055
(1) Our method of calculating time charter equivalent rate is to divide revenue net of voyage expenses by operating days for the relevant time period
(2) Calculated by dividing vessel operating expenses by calendar days for the relevant time period
(3) Represents net income/(loss) before interest and finance costs, unrealized (gain)/loss on derivatives, realized (gain)/loss on interest rate swaps, gain on early extinguishment of debt, stock-based
compensation expense, impairment, and depreciation and amortization and is used as a supplemental financial measure by management to assess our financial and operating performance 30Statement of Operations (USD)
Year Ended Year Ended
Statement of Operations Data March 31, 2020 March 31, 2019
(Audited) (Audited)
Revenues $ 333,429,998 $ 158,032,485
Voyage expenses (3,242,923) (1,697,883)
Charter hire expenses (9,861,898) (237,525)
Vessel operating expenses (71,478,369) (66,880,568)
Depreciation and amortization (66,262,530) (65,201,151)
General and administrative expenses (23,355,768) (24,434,246)
(1)
Professional and legal fees related to the BW Proposal — (10,022,747)
Other income—related parties 1,840,321 2,479,599
Operating incom e/(loss) $ 161,068,831 $ (7,962,036)
Interest and finance costs (36,105,541) (40,649,231)
Realized gain on derivatives 2,800,374 3,788,123
Other expenses, net (15,922,406) (6,122,761)
Net Incom e/(loss) $ 111,841,258 $ (50,945,905)
Other Financial Data (Unaudited) (Unaudited)
Time charter equivalent rate (2) $ 42,798 $ 21,746
(3)
Daily vessel operating expenses $ 8,877 $ 8,329
(4)
Adjusted EBITDA $ 232,843,410 $ 64,408,989
(1) Reflects legal, investment banking, and other advisory fees. Excluding the costs, adjusted EBITDA would have been $74.4 mm and net loss $(40.9) mm for the year ended March 31, 2019
(2) Our method of calculating time charter equivalent rate is to divide revenue net of voyage expenses by operating days for the relevant time period
(3) Calculated by dividing vessel operating expenses by calendar days for the relevant time period
(4) Represents net income/(loss) before interest and finance costs, unrealized (gain)/loss on derivatives, realized (gain)/loss on interest rate swaps, gain on early extinguishment of debt, stock-based
compensation expense, impairment, and depreciation and amortization and is used as a supplemental financial measure by management to assess our financial and operating performance
31Statement of Cash Flows (USD)
Nine Months Ended Nine Months Ended
Cash Flows Data December 31, 2020 December 31, 2019
(Unaudited) (Unaudited)
Net Income $ 48,531,219 $ 82,415,867
Adjustments 60,496,039 58,846,543
Changes in operating assets and liabilities (21,431,525) (30,886,370)
Net cash provided by operating activities $ 87,595,733 $ 110,376,040
Net cash provided by/(used in) investing activities $ 5,198,748 $ (11,007,294)
Net cash used in financing activities $ (46,741,990) $ (63,830,103)
Effects of exchange rates on cash and cash equivalents 237,011 (69,689)
Net increase in cash and cash equivalents $ 46,289,502 $ 35,468,954
32Balance Sheet (USD)
December 31, 2020 March 31, 2020
Selected Balance Sheet Data
(Unaudited) (Unaudited)
Cash and cash equivalents $ 133,593,851 $ 48,389,688
Restricted cash, current — 3,370,178
Restricted cash, non‑current 84,778 35,629,261
Total assets $ 1,665,043,104 $ 1,671,959,843
Total debt including current portion—net of deferred financing fees of $11.1
million and $11.2 million as of December 31, 2020 and March 31, 2020, 603,923,327 634,975,219
respectively.
Total liabilities $ 649,270,245 $ 694,907,645
Total shareholders' equity $ 1,015,772,859 $ 977,052,198
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