Dorian LPG Ltd (LPG) Q4 2025 Earnings Call Highlights: Strong Cash Flow and Strategic ...

Free Cash: $317 million as of March 31, 2025, up sequentially from the previous quarter.
Cash Flow from Operations: Increased from $24 million to $50.3 million quarter over quarter.
Dividend: $0.50 per share, totaling approximately $21 million, with over $155 million paid in dividends for the fiscal year.
Debt Balance: $557.4 million at quarter end, with a debt to total book capitalization of 34.8% and net debt to total capitalization of 15%.
Time Charter Equivalent (TCE) Revenue: $35,300 per available day for the fourth quarter.
Adjusted EBITDA: $36.6 million for the quarter.
Daily Operating Expenses (OpEx): $11,000 per day, excluding dry-docking related expenses.
Total G&A Expenses: $8.3 million for the quarter, with cash G&A at $6.8 million.
Interest Expense: Total cash interest expense was $6.7 million for the quarter.
Scrubber Vessel Savings: $1.37 million for the first quarter of 2025, or about $1,174 per calendar day per vessel.
Warning! GuruFocus has detected 5 Warning Sign with LPG.
Release Date: May 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Dorian LPG Ltd (NYSE:LPG) declared a dividend of $0.50 per share, totaling $21.3 million, reflecting a commitment to returning capital to shareholders.
The company reported a strong financial position with $317 million in free cash and a significant increase in cash flow from operations.
US LPG exports remained strong, with more than 300 VLGCs loading over 14 million tonnes in the last quarter, supporting a balanced freight market.
Dorian LPG Ltd (NYSE:LPG) is investing in energy-saving devices and performance optimization, with plans to convert some VLGCs to facilitate ammonia carriage.
The company has a well-structured and attractively priced debt capital, with a debt to total book capitalization of 34.8% and net debt to total capitalization at 15%.
The LPG market faced volatility due to trade tensions between the US and China, impacting freight rates and market stability.
Dorian LPG Ltd (NYSE:LPG) experienced a challenging LPG product environment, with reported TCE revenue per available day marginally lower than the prior quarter.
The company faced increased operational expenses, with daily OpEx rising to $11,000 per day, excluding dry-docking related expenses.
The market experienced disruptions due to repeated cold spells in the US, affecting domestic LPG demand and leading to increased costs.
The potential impact of future trade tensions remains uncertain, posing risks to market stability and demand for LPG exports.
Q: Could you explain the recent strength in the VLGC market and any trade pattern changes following the US-China trade developments? A: Tim Hansen, Chief Commercial Officer, explained that the market strength is driven by altered trade flows due to tariffs, with cargoes going from the US to India and Southeast Asia, increasing ton miles. Despite the tariffs, demand remains strong, and the market outlook for 2025 was already positive due to limited newbuilding deliveries and high production levels.
Q: Have you noticed a significant increase in inquiries or fixtures from Chinese buyers since the recent US-China trade deal? A: Tim Hansen noted that while the trade routes have shifted, there hasn't been a flood of inquiries from Chinese buyers. The market seems to have settled, with US cargoes still being directed to India, maintaining a balance and avoiding surprises from potential tariff changes.
Q: Given the recent rate improvements, is there potential for a higher dividend in the future? A: Theodore Young, CFO, stated that while the rate outlook has improved, the Board's decision on dividends will depend on the environment at the time of their next meeting. The decision will be made with the best available information, acknowledging that market conditions can change.
Q: What are the current financial highlights and liquidity position of Dorian LPG? A: Theodore Young reported a free cash balance of $317 million as of March 31, 2025, with cash flow from operations more than doubling quarter over quarter. The company has a debt balance of $557.4 million, with a debt to total book capitalization of 34.8% and net debt to total capitalization at 15%.
Q: How is Dorian LPG addressing sustainability and operational efficiency? A: John Lycouris, CEO, highlighted ongoing efforts to improve energy efficiency and sustainability, including optimizing vessel operations, utilizing scrubbers, and upgrading vessels to carry ammonia cargo. These initiatives align with long-term value creation and environmental responsibility.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.

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