Dorian LPG Ltd (LPG) Reports Q2 FY2024 Earnings: Net Income Soars to $76.5 Million

• Net income for Q2 FY2024 reached $76.5 million, a significant increase from $20.3 million in Q2 FY2023.

• Adjusted net income rose to $75.0 million, up from $17.2 million in the same quarter of the previous year.

• Revenues for the quarter stood at $144.7 million, marking a 90.5% increase from $76.0 million in Q2 FY2023.

• The TCE rate per operating day for the fleet increased by 60.3% year-over-year.

On November 2, 2023, Dorian LPG Ltd (NYSE:LPG), a leading owner and operator of modern very large gas carriers, announced its financial results for the second quarter of the fiscal year 2024. The company reported a substantial increase in net income, adjusted net income, and revenues, reflecting a strong performance for the quarter.

Financial Highlights

The company's net income for the quarter amounted to $76.5 million, or $1.89 per diluted share, a significant increase from $20.3 million, or $0.51 per diluted share, for the same period in the previous year. Adjusted net income, which excludes an unrealized gain on derivative instruments of $1.6 million, stood at $75.0 million, or $1.85 per diluted share. This represents a substantial increase from the adjusted net income of $17.2 million, or $0.43 per diluted share, reported in Q2 FY2023.

Revenues for the quarter were $144.7 million, marking a 90.5% increase from $76.0 million in Q2 FY2023. This increase was primarily due to an increase in average TCE rates, fleet utilization, and fleet size.

Operational Performance

The TCE rate per operating day for the fleet was $65,128 for the quarter, a 60.3% increase from $40,632 for the same period in the prior year. This increase was driven by higher spot rates and reduced bunker prices. Total fleet utilization increased from 90.7% during Q2 FY2023 to 96.5% during Q2 FY2024.

Vessel operating expenses per day increased to $10,858 for the quarter, compared to $9,541 in the same period in the prior year. Charter hire expenses for the vessels chartered in from third parties were $12.1 million, an increase of 125.2% from the same period in the previous year.

Management Commentary

John C. Hadjipateras, Chairman, President and Chief Executive Officer of the Company, commented, Following record adjusted EBITDA in the quarter, we declared our ninth dividend demonstrating our commitment to creating shareholder value, while maintaining sensible leverage levels and flexibility for fleet renewal. With an increasingly uncertain world outlook we remain focused on the safety of our dedicated seafarers, supported by our experienced shoreside staff, as they provide a critical energy product to the world with, a safe, reliable, clean and trouble free transportation service.

The company's strong performance in the quarter reflects its commitment to delivering value to shareholders and maintaining a robust operational performance amid an uncertain global outlook.

Explore the complete 8-K earnings release (here) from Dorian LPG Ltd for further details.

This article first appeared on GuruFocus.