Dorian LPG (NYSE: LPG) reported Q4 EPS of $0.81, $0.19 better than the analyst estimate of $0.62. Revenue for the quarter came in at $95.2 million versus the consensus estimate of $84.83 million.

Highlights for the Fourth Quarter Ended March 31, 2020

• Revenues of $95.2 million.
• Daily Time Charter Equivalent ("TCE")(1) rate for our fleet of $51,888.
• Net income of $29.4 million, or $0.56 earnings per diluted share ("EPS"), and adjusted net income(1) of $42.3 million, or $0.81 adjusted diluted loss per share ("adjusted EPS")(1).
• Adjusted EBITDA(1) of $67.2 million.
• Time chartered-in the 2020-built Future Diamond to our fleet with an expiration during the first calendar quarter of 2023.
• Repurchased over $34.5 million of our common stock, or approximately 3.1 million shares, at an average price of $10.99 per share

John Hadjipateras, Chairman, President and Chief Executive Officer of the Company, commented, "It is appropriate that I acknowledge the commitment of our nearly eight hundred seafarers, five hundred presently at sea, as well as the dedication of our shore-side staff. Their professionalism ensures our continued safe operation. Freight rates have recently fallen substantially, however, considering the uncertainty about the impact of the pandemic on demand and the price of crude and natural gas, I believe it is too early to make any predictions. As a company, Dorian LPG has, perhaps, never been in a stronger position than we are presently. As a result of our recent refinancing, we have increased our liquidity and decreased our cost of debt through an innovative and environmentally linked structure with new commercial banking partners."

Market Outlook Update

Global seaborne LPG volumes remained buoyant during the first calendar quarter of 2020, totaling 26.9 million tons, 3.5% above the same period in 2019. U.S. seaborne LPG exports have driven global growth, as such exports have increased to record levels during the first calendar quarter, totaling 11.0 million metric tons and representing 33.2% annual growth. Elevated U.S. exports were balanced by slightly declining Middle Eastern export volumes. The Middle East exported 9.2 million metric tons of LPG during the quarter, a 7.6% year-over-year decrease.

During the quarter, LPG imports in key Asian markets such as India, Japan, and South Korea all witnessed significant year-over-year growth. Chinese LPG imports, however, decreased 15.6% year-over-year to roughly 4.0 million metric tons. The effects of COVID-19 reduced demand, while PDH plants operated at reduced capacity and maintenance was brought forward. Two Chinese PDH plants with 1.2 million tons of annual throughput that were planned to start operations during the quarter were delayed.

For the first calendar quarter, the Baltic VLGC Index averaged $67 per metric ton, reaching a quarterly high of $81 per metric ton in late January. For the second calendar quarter to date, the Baltic Index has averaged $51 per metric ton.

Currently the VLGC orderbook stands at approximately 12% of the current global fleet. An additional 35 VLGCs, equivalent to roughly 3.0 million cbm of carrying capacity, are expected to be added to the global fleet by calendar year-end 2021. The average age of the global fleet is now approximately ten years old.

The above market outlook update is based on information, data and estimates derived from industry sources, and there can be no assurances that such trends will continue or that anticipated developments in freight rates, export volumes, the VLGC orderbook or other market indicators will materialize. This information, data and estimates involve a number of assumptions and limitations, are subject to risks and uncertainties, and are subject to change based on various factors. You are cautioned not to give undue weight to such information, data and estimates. While we believe the market and industry information included in this release to be generally reliable, we have not independently verified any third-party information or verified that more recent information is not available.

For earnings history and earnings-related data on Dorian LPG (LPG) click here.