Dorian Lpg Ltd. · NYSE:LPG
Dorian Lpg — Investor Presentation (January 2025)
35 slides from Dorian Lpg's investor presentation, January 2025
Slide 1: Investor Presentation
Investor Presentation January 2025 1
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains "forward-looking statements." Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," "pro
Slide 3: Investment Highlights
Investment Highlights Dorian LPG is a Market Leader in LPG Shipping • Returned ~$850 mm in cash to shareholders via dividends and buybacks since 2014 IPO • Repurchased a total of ~33% of shares outstanding at May 2014 IPO Disciplined Capital Allocation • Issued 2.0 mm shares at $ 44.50 per share, ra
Slide 4: Dorian LPG
O ou _ ¢ DORIAN LPG ian Dor
Slide 5: Dorian LPG Overview
Dorian LPG Overview US-Based with Global Presence Dorian LPG is a liquefied petroleum gas (LPG) shipping company and a leading owner and operator of modern very large gas carriers (VLGCs) Copenhagen The Company provides in-house commercial and technical Stamford management services for 21 owned and
Slide 6: The Leading VLGC Commercial Platform
The Leading VLGC Commercial Platform Dorian LPG Commercially Manages 29 Vessels Helios LPG Fleet Composition • The Helios LPG Pool is a 50/50 partnership between Dorian LPG and MOL Energia Pte Ltd., a subsidiary of the MOL Group • The primary goal of the Pool is to create a critical mass of reliabl
Slide 7: Committed to Reducing our Environmental Footprint
Committed to Reducing our Environmental Footprint Improving Fleet Environmental Performance (AER)1 Dorian LPG is a Leader for Lowering VLGC Emissions • Dedicated New Technology Advisory team responsible for reducing the fleet’s carbon footprint through energy saving devices retrofits • Carbon Intens
Slide 8: Dorian LPG Decarbonization Framework
Dorian LPG Decarbonization Framework Technical Operational Future Commercial Category Efficiency Efficiency Propulsion Optimization Potential Emissions 5-15% 10-15% 5-50% 5-10% Reduction Hydrodynamic (Hull & Propeller) Underwater Services Alternative Fuel Commercial Contracts Hull Coating Hull C
Slide 9: Global LPG Supply / Demand
Global LPG Supply / Demand 9 9
Slide 10: Market Highlights
Market Highlights Strong Fundamentals in the LPG Freight Market • U.S. Natural Gas Liquids (NGLs) production remains resilient and growth prospects over the medium to long-term appear strong Global NGL Volume Growth • Infrastructure expansions and optimizations should enable U.S. LPG production and
Slide 11: U.S. LPG Supply Expected to Keep Price Competitive
U.S. LPG Supply Expected to Keep Price Competitive U.S. Propane Production Supported by Growing Gas-to-Oil Ratios (GORs) and Infrastructure Expansion Ample Inventories Encourages Near-Term Propane Exports Source: EIA 11 Note: As of January 24, 2025
Slide 12: Expanded Infrastructure Should Support U.S. LPG Supply Growth
Expanded Infrastructure Should Support U.S. LPG Supply Growth Gas Processing Growth of +3% Should increase Supply of NGLs to Fractionators Current Operating Processing Capacity 137,918 Mmcf/d Company Project / Asset Name Location Capacity (Mmcf/d) In-service date Status Occidental Petroleum Corp Nor
Slide 13: Increasing North American LPG Export Capacity
Increasing North American LPG Export Capacity North American LPG Export Capacity Expected to Stay Close to 90% Utilization Additional Export Projects Could Increase Capacity by 26% Through 2028 Current Operating Export Capacity 6.5 MT/month Company Project / Asset Name Location Capacity In-service d
Slide 14: Global Seaborne LPG Volumes
Global Seaborne LPG Volumes Global Liftings Up by 6% Y/Y 2024 141.1 MT +6% 132.9 MT 2023 U.S. Exports Up by 10% Y/Y Arabian Gulf Exports Up by 3% Y/Y 2024 2024 66.1 MT 47.2 MT + 10% +3% 60.1 MT 45.9 MT 2023 2023 Source: Platts Waterborne Note: Values shown through December 31, 2024 14
Slide 15: Global Seaborne Supply and Demand
Global Seaborne Supply and Demand The U.S. Accounts for 47% of Seaborne Supply Asia Accounts for 67% of Seaborne Demand Source: Platts Waterborne 15 Note: Values shown through December 31, 2024; Numbers may not sum due to rounding
Slide 16: Asia Import Demand Outlook Remains Favorable
Asia Import Demand Outlook Remains Favorable Asian Import Demand grew by 7% in 2024 and is expected to grow another 8% 2025 led by China and India Source: NGLS 16
Slide 17: China LPG Demand and Imports Supported by Increasing Petchem Demand
China LPG Demand and Imports Supported by Increasing Petchem Demand New PDH Capacity and Retail Demand Driving Long-Term Growth Imports Continue to Grow Supported by Increased Petchem Demand Source: Bloomberg; NGLS 17 Note: Values shown through December 31, 2024
Slide 18: Indian LPG Demand Supported by Policy and Infrastructure Development
Indian LPG Demand Supported by Policy and Infrastructure Development Government Policies and Infrastructure Development to continue Boosting Consumer Adoption Growing Retail Demand Continues to Support Import Growth Source: Bloomberg; NGLS 18 Note: Values shown through December 31, 2024
Slide 19: Favorable LPG Cracking Economics to Support Flexible Cracker Demand
Favorable LPG Cracking Economics to Support Flexible Cracker Demand in Both Europe and the Far East Far East Ethylene Margins1 Northwest Europe Ethylene Margins1 • Propane margins in the Far East are expected to remain favorable • Propane prices in Europe are expected to remain favorable vs compared
Slide 20: New PDH Plants Scheduled to Start-up in 2025
New PDH Plants Scheduled to Start-up in 2025 Source: NGLS; Dorian Estimates 20 1. As of January 2025
Slide 21: Ample Inventory Should Support USGC to Asia Arbitrage
Ample Inventory Should Support USGC to Asia Arbitrage USGC Propane Spot Delivered Prices vs CFR Far East; Terminal Fees Trending Lower From Recent Highs FE Propane / Naphtha Spread1 Source: NGLS; Dorian Estimates Note: Negative spread denotes LPG is cheaper than naphtha 21 1. As of January 24, 2025
Slide 22: VLGC Shipping Market Dynamics
VLGC Shipping Market Dynamics 22 22
Slide 23: VLGC Spot Rates Maintain Favorable Levels Despite Recent Decline
VLGC Spot Rates Maintain Favorable Levels Despite Recent Decline Baltic VLGC Daily Spot Rates Fleet Utilization Averaging 92% in 2024 Source: Baltic Exchange, E.A. Gibson (3Q23-4Q23), ANFIL (1Q24-4Q24) Baltic rates as of January 30, 2025 23
Slide 24: Potential Canal Congestion and Maintenance Impact on Fleet Logistics
Potential Canal Congestion and Maintenance Impact on Fleet Logistics Historical VLGC Transits (2022-2024) • Although Panama Canal transits have increased, the anticipated rise in Dry Bulk, LNG, and Container traffic in the short-term could lead to high congestion • Suez Canal transits remain low but
Slide 25: Vessel Supply Outlook
Vessel Supply Outlook 107 VLGCs, Including 63 Very Large Ammonia Carriers (VLACs), are Currently On Order; 27% of the Fleet 16% of VLGC Fleet is 20+ Years Old Scrubber Scrubber Dual Conventional Total Potential Year Fitted Ready Fuel Fuel Fleet scrapping candidates <5 9 - 88 - 97 5-10 46 6 15 46 113
Slide 26: Financials
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Slide 27: Quarter Ending December 31, 2024 – Highlights
Quarter Ending December 31, 2024 – Highlights • Fleet TCE / Available day of $36,071 VLGC Rates / Utilizaton • Fleet Opex (reported) of $11,097 / day Operating Expenses • Fleet Opex (ex drydock) of $10,161 / day Adjusted Net Income • Adjusted net income of $18.5 mm or $0.43 / diluted share Adjusted
Slide 28: Disciplined Capital Allocation and Balance Sheet Management
Disciplined Capital Allocation and Balance Sheet Management Repurchased Shares via Self-Tender and Open Market Purchases • Completed self-tender offer of 8.4 mm shares for ~$113.5 mm in March 2021 • Since 2015, repurchased a total of ~33% of the shares outstanding at May 2014 IPO (including self-ten
Slide 29: Annual Financial Overview
Annual Financial Overview Fleet TCE / Available Day1 Adjusted EBITDA1 Vessel Operating Expense / Calendar Day1 Net Debt to Capitalization2 1. For definitions, Refer to the 10Q for the quarter ending September 30, 2024. 29 2. Net Debt defined as (Total Debt – Cash – Restricted Cash – Short-term Inves
Slide 30: Quarterly Financial Overview
Quarterly Financial Overview Fleet TCE / Available Day1 Adjusted EBITDA1 Vessel Operating Expense / Calendar Day1 Net Debt to Capitalization2 1. Refer to our most recent 10Q filings for definitions 30 2. Net Debt defined as (Total Debt – Cash – Restricted Cash – Available-for-sale Debt Securities);
Slide 31: Statement of Operations (USD)
Statement of Operations (USD) Three Months Ended Three Months Ended Statement of Operations Data December 31, 2024 December 31, 2023 (Unaudited) (Unaudited) Revenues $ 80,666,779 $ 163,064,503 Voyage expenses (950,842) (772,879) Charter hire expenses (10,586,115) (8,359,808) Vessel operating expense
Slide 32: Statement of Operations (USD)
Statement of Operations (USD) Year Ended Year Ended Statement of Operations Data March 31, 2024 March 31, 2023 (Audited) (Audited) Revenues $ 560,717,436 $ 389,749,215 Voyage expenses (2,674,179) (3,611,452) Charter hire expenses (43,673,387) (23,194,712) Vessel operating expenses (80,461,690) (71,5
Slide 33: Statement of Cash Flows (USD)
Statement of Cash Flows (USD) Three Months Ended (Unaudited) December 31, 2024 December 31, 2023 Cash flows from operating activities: Net income $ 21,361,828 $ 99,972,913 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 17,497,383 17,38
Slide 34: Balance Sheet (USD)
Balance Sheet (USD) December 31, 2024 March 31, 2024 Selected Balance Sheet Data (Unaudited) (Audited) Cash and cash equivalents $ 314,532,172 $ 282,507,971 Restricted cash, non current 73,466 75,798 Other current assets 100,618,960 86,373,800 Vessels, net 1,164,143,821 1,208,588,213 Vessel under co
Slide 35: Our Mission is to Arrange Safe, Reliable, Clean and Trouble-Free Transportation
OUR MISSION IS TO ARRANGE SAFE, RELIABLE, CLEAN AND TROUBLE-FREE TRANSPORTATION 35