Dorian LPG Reports 50.5% Revenue Decline in Q3 2024, Net Income Down 78.6%

Dorian LPG Ltd. reported a significant decline in financial performance for the three and nine months ended December 31, 2024, compared to the same periods in the previous year. Total revenues for the third quarter were $80.7 million, down 50.5% from $163.1 million in Q3 2023. For the nine-month period, revenues decreased by 33.8% to $277.5 million from $419.3 million. The decline was primarily attributed to reduced average time charter equivalent (TCE) rates, which fell from $71,938 per day to $36,071 per day in the third quarter, largely due to lower spot rates in the LPG market.

The company's net income also reflected this downturn, with a reported $21.4 million for the third quarter, a decrease of 78.6% from $100 million in the same quarter of the previous year. For the nine-month period, net income was $82.1 million, down from $228.2 million. The decrease in profitability was influenced by increased vessel operating expenses, which rose to $21.4 million in Q3 2024, up 11.7% from $19.2 million in Q3 2023, and higher general and administrative expenses, which increased by 12.8% for the nine-month period.

In terms of strategic developments, Dorian LPG entered into a shipbuilding contract for a new Very Large Gas Carrier (VLGC) with a capacity of 93,000 cbm, expected to be delivered in the second quarter of 2026. This new vessel is part of the company's ongoing efforts to modernize its fleet and enhance operational efficiency. As of December 31, 2024, Dorian's fleet consisted of 25 VLGCs, including 16 equipped with exhaust gas cleaning systems to reduce sulfur emissions.

Operationally, Dorian LPG's engagement metrics showed a decrease in customer activity, with net pool revenues from related parties dropping to $78 million in Q3 2024 from $156 million in Q3 2023. The company continues to operate its vessels primarily through the Helios Pool, which includes 29 VLGCs as of the end of December 2024. The company reported cash and cash equivalents of $314.5 million, an increase from $282.5 million at the end of the previous fiscal period, indicating a strong liquidity position despite the decline in revenues.

Looking ahead, Dorian LPG anticipates that market conditions may remain challenging, but it plans to leverage its strong cash position and ongoing investments in fleet modernization to navigate these challenges. The company has also declared an irregular cash dividend of $0.70 per share, totaling $30 million, payable in February 2025, reflecting its commitment to returning value to shareholders while managing its capital resources prudently.