Dorian Lpg Ltd. · NYSE:LPG
Dorian Lpg — Investor Presentation (September 2015)
28 slides from Dorian Lpg's investor presentation, September 2015
Slide 1: Dorian LPG September 2015
DORIAN LPG September 2015
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This Presentation contains certain forward-looking statements relating to the business, future financial performance and results of the Company and/or the industry in which it operates. In particular, this Presentation contains forward-looking statements such as
Slide 3: Overview
Overview: Largest ECO VLGC fleet, VLGCs represent Investment Highlights critical link in the LPG supply chain VLGC Vessel Count 3 Modern VLGCs, 10 ECO VLGCs, Fleet 1 pressurized LPG carrier 9 ECO VLGCs (Delivering Q4’15 – Q1’16) 21 +1 22 Fully Integrated, In-house +8 Management Commercial & Technica
Slide 4: Key Investment Highlights
Key Investment Highlights 1 US shale revolution has created a fundamental shift in trade flows 2 Rapid LPG growth creating tight supply-demand dynamics 3 VLGCs are a critical link in the global LPG supply chain 4 Significant built-in growth with the youngest and largest ECO VLGC fleet 5 Integrated t
Slide 5: The Evolution of Dorian LPG
The Evolution of Dorian LPG Overview Timeline Dorian (Hellas), S.A. of Greece was established in 1973, Significant market presence with 22 Modern VLGCs representing the shipping interests of principals with more and targeting further consolidation than a century of shipping experience 10 VLGC NBs
Slide 6: VLGCs are a Critical Link in the Global Supply Chain
VLGCs are a Critical Link in the Global Supply Chain Production Shipping End Use LPG (Propane and Butane) is a by-product VLGCs are the most cost effective Broad range of end uses for LPG of oil and gas means of long haul LPG transportation Gas production (~60%) Cooking / Retail market Heating 60% A
Slide 7: Global LPG Supply Surging
Global LPG Supply Surging U.S average monthly liftings rising rapidly LPG Volumes traded continuing to grow: Global Seaborne LPG Volumes 100,000,000 U.S. set to be the world’s single largest LPG 90,000,000 exporting nation 80,000,000 70,000,000 60,000,000 50,000,000 Competitive Pricing: 40,000,0
Slide 8: U.S. Taking Market Share
U.S. Taking Market Share Global LPG Export Volumes by Region Source: IHS 7
Slide 9: Bifurcation of Supply Making LPG Increasingly Competitive
Bifurcation of Supply Making LPG Increasingly Competitive North American Export Terminal Capacity VLGC Equivalent Liftings per Month at Year End 40 70 35 Enterprise(Houston,TX) Targa(GalenaPark,TX) 60 30 Sunoco(Nederland,TX) 50 Million Metric Tons 25 Trafigura(CorpusChristi,TX) 40 Phillips66(Freepor
Slide 10: Surge in Chinese PDH adds to Global Demand
Surge in Chinese PDH adds to Global Demand Commenced & Planned Chinese PDH Projects Propane Feedstock Required Polypropylene Propylene VLGC New Cumulative Chinese PDH Propane Feedstock Capacity Project production Operational Main Application Equivalents kt/year New Cumulative Chinese PDH Propylene P
Slide 11: Growing Markets for LPG
Growing Markets for LPG Turkey China US Virgin Islands India Indonesia Thailand Brazil East Africa South Africa 10 10
Slide 12: Key Factors Favoring LPG Adoption for Power Generation and Retail Consumption
Key Factors Favoring LPG Adoption for Power Generation and Retail Consumption Economic Environmental Low cost Infrastructure By-product of Favorable Emission natural gas and Easy to set up distributionoil production Autogas -most accepted alternative fuel Price competitive 20% less CO2 t
Slide 13: The Future: Virgin Islands Conversion Project with Vitol
The Future: Virgin Islands Conversion Project with Vitol St Croix Conversion Vitol is leading the transformation of the power sector in the US Virgin Islands Upon completion of the $91mm project, Virgin Island power consumers can expect savings of up to 30% Current Residential prices: 39cents/
Slide 14: China
China Retail & Power Generation Seaborne LPG imports into China tallied 7,993,199 MT in 2014, up from 3,980,283 MT in 2013 While this was primarily due to PDH plant start ups, there are opportunities for further expansion in Power Gen and Retail. Retail growth is very dependent on government p
Slide 15: India
India Seaborne LPG imports to India were up 142% in Indian LPG Retail Demand 2014, from 5,857,859 to 8,324,550. 2013-2014: Total demand growth for LPG in India increased abt. 18.5% 2010-2014: Government has proactively pushed population away from traditional heating/cooking methods by subsidiz
Slide 16: VLGC Day Rates at Healthy Levels
VLGC Day Rates at Healthy Levels Baltic VLGC Rate: 160,000 140,000 TCE/day 6M Trailing Average Dayrate in USD/day 120,000 3Yr Trailing Average 100,000 80,000 60,000 40,000 20,000 - Key Drivers of Rate Strength Rapid increase in VLGC liftings from the USGC (Targa, Enterprise, P66) Increasing arbi
Slide 17: Fleet Built at World Class Korean Shipyards
Fleet Built at World Class Korean Shipyards VLGC Newbuild Deliveries by Shipyard 2006-2016 13% 60% 13% HHI is the most active and experienced yard in the design and construction of 7% gas carriers * 7% LPG vessels are highly engineered, and exacting technical specifications determine commercial ac
Slide 18: Fleet Designed to Meet Tomorrow's Regulations
Fleet Designed to Meet Tomorrow’s Regulations Outside an ECA Inside an ECA 0.50% m/m on and 0.10% m/m on and after 1 January after 1 January 2020 2015 Dorian LPG will have the youngest and most modern fleet of ECO VLGCs 3 17 2 Existing Scrubber Ready Scrubber -Already Declared ECA: Emission Control
Slide 19: ECO-Vessels Represent Significant Additional Earnings Potential
ECO-Vessels Represent Significant Additional Earnings Potential Scrubber / Scrubber Ready Low Friction, Self Polishing Paint Fuel Oil Consumption Analysis Dorian ME-G type NB (ECO) Traditional VLGC MAN B&W’s New G-Type Engine 55 Optimized Hull Design Electronic Engine Control -17% 50 -17% De-rat
Slide 20: Major Oil Companies Require Experienced Operators
Major Oil Companies Require Experienced Operators Integrated, LPG Company with all Commercial/Technical services in-house. Meets requirements of the most demanding Oil Majors Dedicated, Independent department on HSSEQ (Health, Safety, Security, Environment and Quality) Doubling up crews on VLG
Slide 21: Dorian LPG Fleet Overview
Dorian LPG Fleet Overview Overview of Chartering Strategy Overview of Vessel Employment 2014 2015 2016 4 R Customers & Shareholders: Sister Delivery / Current Fleet: Shipyard Open 1H’14 2H’14 1H’15 2H’15 1H’16 2H'16 Vessels Return on Capital: Captain Nicholas ML A - Statoil Mix of long term and Ca
Slide 22: Strategic Business Development Initiatives
Strategic Business Development Initiatives Pool with Phoenix Tankers Ltd., one of the foremost VLGC operators in Asia Expands the Company’s global presence and strengthen its position in the increasingly important Eastern LPG market including India Increases overall fleet utilization Allianc
Slide 23: Fully Funded Financing
Fully Funded Financing Dorian LPG has committed a committed debt facility of $758 million to finance its fleet of newbuilding VLGCs from: Tranches Commercial Debt $ 249 mm KEXIM Direct $ 204 mm KEXIM Guaranteed $ 202 mm K-Sure Insured $ 103 mm Total Debt: $ 758 mm Key metrics on financing packag
Slide 24: Multiple Pillars for Creating Shareholder Value
Multiple Pillars for Creating Shareholder Value Fleet of 22 VLGCs with 19 ECO newbuilds contracted for delivery 2015– February 2016 Expect to have opportunities to increase exposure through: pooling arrangements, further vessel acquisitions and strategic partnerships with major oil companies and tra
Slide 25: Key Investment Highlights
Key Investment Highlights 1 US shale revolution has created a fundamental shift in trade flows 2 Rapid LPG growth creating tight supply-demand dynamics 3 VLGCs are a critical link in the global LPG supply chain 4 Significant built-in growth with the youngest and largest ECO VLGC fleet 5 Integrated t
Slide 26: Statement of Operations
Statement of Operations (in USD) Statement of Operations Three Months Ended Three Months Ended June 30, 2015 June 30, 2014 (Unaudited) (Unaudited) Revenues $ 20,331,901 $ 15,853,840 Net pool income 15,310,559 — Voyage expenses 3,523,073 2,785,998 Vessel operating expenses 6,754,086 3,483,123 Managem
Slide 27: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows (in USD) Balance Sheet June 30, 2015 March 31, 2015 (Unaudited) (Audited) Cash and cash equivalents $ 134,715,783 $ 204,821,183 Restricted cash, non-current 36,512,789 33,210,000 Total assets 1,240,826,724 1,099,101,270 Current portion of long-term debt 25,325,629 15,677
Slide 28: www.dorianlpg.com
www.dorianlpg.com 27