On May 22, 2024, Dorian LPG Ltd (LPG, Financial) released its 8-K filing detailing its financial results for the fourth quarter and fiscal year ended March 31, 2024. Dorian LPG Ltd is an international liquefied petroleum gas shipping company focused on owning and operating gas carriers, or VLGCs. The company currently owns and operates around 22 modern VLGCs, including nineteen new fuel-efficient 84,000 cbm ECO-design VLGCs. Dorian LPG has offices in Connecticut, USA, London, United Kingdom, and Athens, Greece.
Fourth Quarter Fiscal Year 2024 Results
Dorian LPG Ltd reported a net income of $79.2 million, or $1.96 per share, for the three months ended March 31, 2024, compared to $76.0 million, or $1.89 per share, for the same period in the previous year. Adjusted net income for the quarter was $77.6 million, or $1.91 per share, slightly below the analyst estimate of $1.90 per share.
Revenues for the quarter were $141.4 million, up 5.8% from $133.6 million in the same period last year, but below the analyst estimate of $147.73 million. The increase in revenue was primarily driven by higher average TCE rates and an expanded fleet size, partially offset by a decrease in fleet utilization.
Fiscal Year 2024 Results
For the fiscal year ended March 31, 2024, Dorian LPG Ltd reported a net income of $307.4 million, or $7.60 per share, compared to $172.4 million, or $4.29 per share, for the previous fiscal year. Adjusted net income for the year was $307.4 million, or $7.60 per share, aligning with the annual estimate of $6.62 per share.
Revenues for the fiscal year were $560.7 million, a 43.9% increase from $389.7 million in the prior year, surpassing the annual estimate of $539.36 million. The rise in revenue was attributed to increased average TCE rates and fleet size, despite a slight decrease in fleet utilization.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Net Income | $79.2 million | $76.0 million | $307.4 million | $172.4 million |
| Adjusted Net Income | $77.6 million | $78.1 million | $307.4 million | $169.7 million |
| Revenue | $141.4 million | $133.6 million | $560.7 million | $389.7 million |
| EPS (Diluted) | $1.96 | $1.89 | $7.60 | $4.29 |
| Adjusted EPS (Diluted) | $1.91 | $1.94 | $7.60 | $4.22 |
Operational Highlights
The TCE rate for Dorian LPG Ltd's fleet was $72,202 for the three months ended March 31, 2024, a 6.0% increase from $68,135 in the same period last year. For the fiscal year, the TCE rate was $65,986, a 30.8% increase from $50,462 in the prior year. However, fleet utilization decreased from 95.7% to 87.7% for the quarter and from 95.0% to 93.9% for the fiscal year.
Challenges and Achievements
The company faced increased expenses in several areas, including charter hire, vessel operating, depreciation and amortization, and general and administrative costs. Despite these challenges, Dorian LPG Ltd achieved record-breaking TCE rates and net income, reflecting strong operational performance and strategic fleet management.
John Hadjipateras, Chairman, President, and Chief Executive Officer of the Company, commented, “We generated a record-breaking fiscal year 2024 TCE of nearly $66,000 per operating day, yielding our highest ever net income and a more than 30% return on equity. Including the $1.00 per share dividend recently declared, we will have returned over $730 million to shareholders since our IPO. The challenges from market volatility and geopolitical events continued in the last quarter as we remain focused on the quality of our service to customers and the strength of our balance sheet. I am grateful to and commend our seafarers and shore staff for their commitment to our mission to provide safe, reliable, clean, and trouble-free transportation.”
Conclusion
Dorian LPG Ltd's financial performance for the fourth quarter and fiscal year 2024 demonstrates robust growth in revenue and net income, despite missing some analyst estimates. The company's strategic focus on fleet expansion and operational efficiency has yielded significant returns, positioning it well for future growth in the LPG shipping industry.
Explore the complete 8-K earnings release (here) from Dorian LPG Ltd for further details.
