Dorian LPG Ltd. Announces Second Quarter Fiscal Year 2023 Financial Results

Stamford, Conn. - November 02, 2022

Dorian LPG Ltd. (NYSE: LPG) (the "Company," "Dorian LPG," "we," "us," and "our"), a leading owner and operator of modern very large gas carriers ("VLGCs"), today reported its financial results for the three months ended September 30, 2022.

Key Recent Developments

• Declared an irregular cash dividend totaling $40.4 million to all shareholders of record as of November 7, 2022.

• Exercised a two-year option during October 2022 on the time charter-in of Future Diamond through the first calendar quarter of 2025.

• Extended the existing time charter on Corsair in October 2022 for a period of two years through the fourth calendar quarter of 2024.

Highlights for the Second Quarter Fiscal Year 2023

• Revenues of $76.0 million.

• Time Charter Equivalent ("TCE")(1) rate per operating day for our fleet of $40,632.

• Net income of $20.3 million, or $0.51 earnings per diluted share ("EPS"), and adjusted net income(1) of $17.2 million, or $0.43 adjusted earnings per diluted share ("adjusted EPS").(1)

• Adjusted EBITDA(1) of $46.2 million.

• Paid cash dividend of $1.00 per share of our common stock to all shareholders of record as of the close of business on August 15, 2022.

• Entered into a $240.0 million debt financing facility (the "2022 Debt Facility") to refinance indebtedness under the 2015 AR Facility, Concorde Japanese Financing, and Corvette Japanese Financing.

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

John C. Hadjipateras, Chairman, President and Chief Executive Officer of the Company, commented, "The second quarter's results were supported by a strong freight market and resulted in good cash generation. The most recent $1.00 dividend, declared on October 27, 2022, brings total cash returned to shareholders since our IPO to almost $500 million. Current geopolitical and economic uncertainty call for prudence. I believe that maintaining focus on our mission to provide safe, reliable, clean and trouble free transportation services to our clients, and on financial discipline, comprise the arsenal which enables us to retain flexibility in our commercial decisions and provide the best returns to our shareholders. As always, I acknowledge, with gratitude, the good work of Dorian's people working at sea and on shore".

Second Quarter Fiscal Year 2023 Results Summary
Net income amounted to $20.3 million, or $0.51 per diluted share, for the three months ended September 30, 2022, compared to $14.1 million, or $0.35 per diluted share, for the three months ended September 30, 2021.

Adjusted net income amounted to $17.2 million, or $0.43 per diluted share, for the three months ended September 30, 2022, compared to adjusted net income of $9.9 million, or $0.25 per diluted share, for the three months ended September 30, 2021. Adjusted net income for the three months ended September 30, 2022 is calculated by adjusting net income for the same period to exclude an unrealized gain on derivative instruments of $3.1 million. Please refer to the reconciliation of net income to adjusted net income, which appears later in this press release.

The $7.3 million increase in adjusted net income for the three months ended September 30, 2022, compared to the three months ended September 30, 2021, is primarily attributable to an increase of $12.9 million in revenues, decreases of $1.2 million in general and administrative expenses, $0.9 million in depreciation and amortization and $0.8 million in vessel operating expenses, and a $1.5 million favorable change in realized gain on derivatives, partially offset by increases of $6.4 million in interest and finance costs, $3.0 million in charter hire expenses, and a $1.0 million unfavorable change in other gain/(loss), net,.

The TCE rate for our fleet was $40,632 for the three months ended September 30, 2022, a 31.1% increase from a TCE rate of $30,996 for the same period in the prior year, driven by higher spot rates despite higher bunker prices. Please see footnote 7 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 95.7% during the three months ended September 30, 2021 to 90.7% during the three months ended September 30, 2022.

Vessel operating expenses per day increased to $9,541 for the three months ended September 30, 2022 compared to $9,210 in the same period in the prior year. Please see "Vessel Operating Expenses" below for more information.

Revenues
Revenues, which represent net pool revenues-related party, time charters and other revenues, net, were $76.0 million for the three months ended September 30, 2022, an increase of $12.9 million, or 20.4%, from $63.1 million for the three months ended September 30, 2021 primarily due to an increase in average TCE rates, partially offset by a decrease in fleet utilization. Average TCE rates increased by $9,636 from $30,996 for the three months ended September 30, 2021 to $40,632 for the three months ended September 30, 2022, primarily due to higher spot rates despite 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 $66.710 during the three months ended September 30, 2022 compared to an average of $42.154 for the three months ended September 30, 2021. The average price of very low sulfur fuel oil (expressed as U.S. dollars per metric ton) from Singapore and Fujairah increased from $540 during the three months ended September 30, 2021, to $840 during the three months ended September 30, 2022. Our fleet utilization decreased from 95.7% during the three months ended September 30, 2021 to 90.7% during the three months ended September 30, 2022.

Charter Hire Expenses
Charter hire expenses for the vessels chartered in from third parties were $5.4 million and $2.4 million for the three months ended September 30, 2022 and 2021, respectively. The increase of $3.0 million, or 122.9%, was mainly caused by an increase in the number of chartered-in days from 92 for the three months ended September 30, 2021 to 184 for the three months ended September 30, 2022.

Vessel Operating Expenses
Vessel operating expenses were $17.6 million during the three months ended September 30, 2022, or $9,541 per vessel per calendar day, which is calculated by dividing vessel operating expenses by calendar days for the relevant time-period for the technically-managed vessels that were in our fleet. The decrease of $0.8 million, or 4.7% from $18.4 million for the three months ended September 30, 2021 was due to a reduction of calendar days for our fleet from 2,001 during the three months ended September 30, 2021 to 1,840 during the three months ended September 30, 2022, driven by the sales of Captain Markos NL and Captain Nicholas ML prior to the three months ended September 30, 2022. The increase of $331 per vessel per calendar day, from $9,210 for the three months ended September 30, 2021 to $9,541 per vessel per calendar day for the three months ended September 30, 2022 was primarily the result of increases of $159 and $142 per vessel per calendar day in crew wages and related costs, and spares and stores, respectively.

General and Administrative Expenses
General and administrative expenses were $8.2 million for the three months ended September 30, 2022, a decrease of $1.2 million, or 12.6%, from $9.4 million for the three months ended September 30, 2021. This decrease was driven by a decrease of $1.8 million, representing the cash bonuses for the Company's named executive officers in respect of the fiscal year ended March 31, 2022 that were approved by the Compensation Committee of the Board of Directors and expensed and paid prior to the three months ended September 30, 2022, whereas the cash bonuses for the named executive officers of the Company in respect of the fiscal year ended March 31, 2021 were approved by the Compensation Committee of the Board of Directors and expensed and paid during the three months ended September 30, 2021. This was partially offset by an increase in stock-based compensation of $0.4 million, from $1.3 million for the three months ended September 30, 2021 to $1.7 million for the three months ended September 30, 2022.



Interest and Finance Costs
Interest and finance costs amounted to $12.0 million for the three months ended September 30, 2022, an increase of $6.4 million, or 115.9%, from $5.6 million for the three months ended September 30, 2021. The increase of $6.4 million during this period was mainly due to increases of $3.3 million in accelerated amortization of financing costs resulting from the repayment of the 2015 AR Facility, $2.5 million in interest incurred on our long-term debt and $0.6 million in loan expenses driven by an increase in average indebtedness, excluding deferred financing fees, from $587.2 million for the three months ended September 30, 2021 to $702.4 million for the three months ended September 30, 2022. The increase in average indebtedness is due to the 2022 Debt Facility refinancing during the three months ended September 30, 2022. As of September 30, 2022, the outstanding balance of our long-term debt, net of deferred financing fees of $6.6 million, was $642.0 million.

Unrealized Gain on Derivatives
Unrealized gain on derivatives amounted to $3.1 million for the three months ended September 30, 2022, compared to $0.7 million for the three months ended September 30, 2021. The favorable $2.4 million difference is primarily attributable to an increase in favorable fair value changes to our interest rate swaps resulting from changes in forward Secured Overnight Financing Rate ("SOFR") yield curves.

Realized Gain/(Loss) on Derivatives
Realized gain on derivatives amounted to $0.6 million for the six months ended September 30, 2022, compared to a realized loss of $1.8 million for the six months ended September 30, 2021. The favorable $2.4 million difference is due to an increase in floating SOFR resulting in the realized gain on our interest rate swaps.

Gain on Disposal of Vessel
Gain on disposal of vessel amounted to $3.5 million for the three months ended September 30, 2021 and was attributable to the sale of Captain Markos NL. There was no gain on disposal of vessel for the three months ended September 30, 2022.

Full report

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; Copenhagen, Denmark; and Athens, Greece.

Dorian LPG Ltd. press release