Dorian LPG Ltd. Announces Third Quarter Fiscal Year 2019 Financial Results

Stamford, Conn. - February 04, 2019

Dorian LPG Ltd. (NYSE: LPG) (the "Company," "Dorian LPG," "we," and "our"), a leading owner and operator of modern very large gas carriers ("VLGCs"), today reported its financial results for the three months ended December 31, 2018.

Highlights for the Third Quarter Fiscal Year 2019

• Revenues of $55.1 million and Daily Time Charter Equivalent ("TCE")(1) rate for our fleet of $30,108 for the three months ended December 31, 2018, compared to revenues of $44.5 million and TCE rate of $22,833 for the three months ended December 31, 2017.

• Net loss of $(6.2) million, or $(0.11) earnings/(loss) per basic and diluted share ("EPS"), and adjusted net income(1) of $0.5 million, or $0.01 adjusted diluted earnings/(loss) per share ("adjusted EPS"),(1) for the three months ended December 31, 2018.

• Adjusted EBITDA(1) of $27.2 million for the three months ended December 31, 2018.

• Entered into a contract for three additional exhaust gas cleaning systems (commonly referred to as "scrubbers"), increasing our total scrubbers under contract to ten, all of which will use hybrid technology.

(1) TCE, adjusted net loss, adjusted EPS and adjusted EBITDA are non-U.S. GAAP measures. Refer to the reconciliation of revenues to TCE, net loss to adjusted net loss, EPS to adjusted EPS and net loss to adjusted EBITDA included in this press release.

John C. Hadjipateras, Chairman, President and Chief Executive Officer of the Company, commented, "The average Baltic rate in the quarter was $42.389 per metric ton compared to $40.115 per metric ton in the July to September quarter. In October, the Baltic peaked at a little over $48 per metric ton. The wild movements in oil prices impacted trade in LPG. The Baltic has since dropped to nearly $25 per metric ton as a result of a contraction from the record-breaking volumes shipped in the July to September quarter.

Looking ahead, we are optimistic about U.S. export capacity and demand growth in Asia. 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."

Third Quarter Fiscal Year 2019 Results Summary
Net loss amounted to $(6.2) million, or $(0.11) per share, for the three months ended December 31, 2018, compared to net income of $1.7 million, or $0.03 per share, for the three months ended December 31, 2017.

Adjusted net income amounted to $0.5 million, or $0.01 per share, for the three months ended December 31, 2018, compared to adjusted net loss of $(2.1) million, or $(0.04) per share, for the three months ended December 31, 2017. Net loss for the three months ended December 31, 2018 is adjusted to exclude an unrealized loss on derivative instruments of $6.7 million. Please refer to the reconciliation of net loss to adjusted net loss, which appears later in this press release.

The $2.6 million favorable change in adjusted net income/(loss) for the three months ended December 31, 2018, compared to the three months ended December 31, 2017, is primarily attributable to an increase of $10.6 million in revenues, a favorable change of $1.3 million in realized gain on derivatives, an increase of $0.5 million in interest income, and decreases of $0.3 million in general and administrative expenses and $0.1 million in voyage expenses, partially offset by professional and legal fees related to the BW Proposal (defined below) of $7.8 million, and increases of $1.6 million in interest and finance costs and $1.0 million in vessel operating expenses.

The TCE rate for our fleet was $30,108 for the three months ended December 31, 2018, a 31.9% increase from a TCE rate of $22,833 from the same period in the prior year, primarily driven by increased spot market rates, partially offset by bunker prices. Please see footnote 6 to the table in "Financial Information" below for information related to how we calculate TCE. Total fleet utilization (including the utilization of our vessels deployed in the Helios Pool) decreased from 95.6% in the quarter ended December 31, 2017 to 90.0% in the quarter ended December 31, 2018.

Vessel operating expenses per day increased to $8,287 in the three months ended December 31, 2018 from $7,804 in the same period in the prior year. Please see "Vessel Operating Expenses" below for more information.

Revenues
Revenues, which represent net pool revenuesórelated party, time charters, voyage charters and other revenues earned by our vessels, were $55.1 million for the three months ended December 31, 2018, an increase of $10.6 million, or 23.7%, from $44.5 million for the three months ended December 31, 2017. The increase is primarily attributable to an increase in average TCE rates, partially offset by reduced fleet utilization. Average TCE rates increased from $22,833 for the three months ended December 31, 2017 to $30,108 for the three months ended December 31, 2018, primarily as a result of higher spot market rates during the three months ended December 31, 2018 as compared to the three months ended December 31, 2017, partially offset by higher bunker prices. The Baltic Exchange Liquid Petroleum Gas Index, an index published daily by the Baltic Exchange for the spot market rate for the benchmark Ras Tanura-Chiba route (expressed as U.S. dollars per metric ton), averaged $42.389 during the three months ended December 31, 2018 compared to an average of $29.857 for the three months ended December 31, 2017. The average price of heavy fuel oil (expressed as U.S. dollars per metric tonnes) from Singapore and Fujairah increased from $362 during the three months ended December 31, 2017 to $466 during the three months ended December 31, 2018. Our fleet utilization decreased from 95.6% during the three months ended December 31, 2017 to 90.0% during the three months ended December 31, 2018.

Vessel Operating Expenses
Vessel operating expenses were $16.8 million during the three months ended December 31, 2018, or $8,287 per vessel per calendar day, which is calculated by dividing vessel operating expenses by calendar days for the relevant time-period for the vessels that were in our fleet. This was an increase of $1.0 million, or 6.2%, from $15.8 million for the three months ended December 31, 2017. Vessel operating expenses per vessel per calendar day increased by $483 from $7,804 for the three months ended December 31, 2017 to $8,287 for the three months ended December 31, 2018. The increase in vessel operating expenses for the three months ended December 31, 2018, when compared with the three months ended December 31, 2017, was primarily the result of a $1.0 million, or $470 per vessel per calendar day, increase in spares, stores, and repairs and maintenance costs largely due to our regular preventive maintenance programs.

General and Administrative Expenses
General and administrative expenses were $5.2 million for the three months ended December 31, 2018, a decrease of $0.3 million, or 6.9%, from $5.5 million for the three months ended December 31, 2017. The decrease was mainly due to a $0.4 million decrease in professional and legal fees unrelated to the BW Proposal (defined below).

Professional and Legal Fees Related to the BW Proposal
BW LPG Limited and its affiliates ("BW") made an unsolicited proposal to acquire all of our outstanding common stock and, along with its affiliates, commenced a proxy contest to replace three members of our board of directors with BW nominees. BW's unsolicited proposal and proxy contest were subsequently withdrawn on October 8, 2018 (the "BW Proposal"). Professional (including investment banking fees) and legal fees related to the BW Proposal were $7.8 million for the three months ended December 31, 2018.

Interest and Finance Costs
Interest and finance costs amounted to $10.0 million for the three months ended December 31, 2018, an increase of $1.3 million, or 15.2%, from $8.7 million for the three months ended December 31, 2017. The increase of $1.3 million during this period was due to an increase of $2.1 million in interest incurred on our long-term debt, primarily resulting from an increase in LIBOR, partially offset by a decrease in average indebtedness and a reduction of $0.8 million in amortization of deferred financing fees and loan expenses. Average indebtedness, excluding deferred financing fees, decreased from $751.3 million for the three months ended December 31, 2017 to $739.9 million for the three months ended December 31, 2018. As of December 31, 2018, the outstanding balance of our long-term debt, net of deferred financing fees of $14.8 million, was $711.3 million.

Unrealized Gain/(Loss) on Derivatives
Unrealized loss on derivatives was approximately $6.7 million for the three months ended December 31, 2018, compared to an unrealized gain of $3.8 million for the three months ended December 31, 2017. The unfavorable $10.5 million change is attributable to changes in the fair value of our interest rate swaps caused by changes in forward LIBOR yield curves and reductions in notional amounts.

Realized Gain/(Loss) on Derivatives
Realized gain on derivatives was approximately $0.9 million for the three months ended December 31, 2018, compared to a realized loss of $0.4 million for the three months ended December 31, 2017. The favorable $1.3 million change is attributable to increases in floating LIBOR resulting in realized gains on interest rate swaps related to the $758 million debt financing facility that we entered into in March 2015 (as amended) with a group of banks and financial institutions.

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About Dorian LPG Ltd.
Dorian LPG is a liquefied petroleum gas shipping company and a leading owner and operator of modern VLGCs. Dorian LPG's fleet currently consists of twenty-two modern VLGCs. Dorian LPG has offices in Stamford, Connecticut, USA; London, United Kingdom; Copenhagen, Denmark; and Athens, Greece.

Dorian LPG Ltd. press release