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Edited Transcript of LPG earnings conference call or presentation 5-Feb-20 3:00pm GMT

Q3 2020 Dorian LPG Ltd Earnings Call

Stamford Feb 8, 2020 (Thomson StreetEvents) -- Edited Transcript of Dorian LPG Ltd earnings conference call or presentation Wednesday, February 5, 2020 at 3:00:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* John C. Hadjipateras

Dorian LPG Ltd. - Chairman of the Board, President & CEO

* John C. Lycouris

Dorian LPG Ltd. - CEO of Dorian LPG (USA) LLC

* Theodore B. Young

Dorian LPG Ltd. - CFO, Treasurer and Principal Financial & Accounting Officer

* Tim Hansen

Dorian LPG Ltd. - Chief Commercial Officer and Director of Dorian LPG (UK) Ltd

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Conference Call Participants

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* Chris Tsung;Webber Research & Advisory;Analyst

* Mats Bye

DNB Markets, Research Division - Junior Analyst

* Omar Mostafa Nokta

Clarksons Platou Securities, Inc., Research Division - Head of Shipping Research & Analyst

* Sean Edmund Morgan

Evercore ISI Institutional Equities, Research Division - Analyst

* Thomas Korsdalen;Arctic Securities;Investment Banker

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Presentation

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Operator [1]

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Greetings and welcome to the Dorian LPG Third Quarter 2020 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. Additionally, a live audio webcast of today's conference call is available on Dorian LPG's website, which is www.dorianlpg.com.

I would now like to turn the conference over to Ted Young, Chief Financial Officer. Thank you, Mr. Young. Please go ahead.

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Theodore B. Young, Dorian LPG Ltd. - CFO, Treasurer and Principal Financial & Accounting Officer [2]

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Thank you, Michelle, and good morning, everyone. Thanks to everyone for joining us for our third quarter 2020 results conference call. With me today are John Hadjipateras, Chairman, President and CEO of Dorian LPG Ltd.; and John Lycouris, Chief Executive of Dorian LPG USA. As a reminder, this conference call webcast and a replay of this call will be available through February 12, 2020.

Many of our remarks today contain forward-looking statements based on current expectations. These statements may often be identified with words such as expect, anticipate, believe or similar indications of future expectations. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct. These forward-looking statements are subject to known and unknown risks and uncertainties and other factors as well as general economic conditions. Should one or more of these risks or uncertainties materialize or should underlying assumptions or estimates prove to be incorrect, actual results may vary materially from those we express today.

Additionally, let me refer you to our unaudited results for the period ended December 31, 2019, that were filed this morning on Form 10-Q. In addition, please refer to our previous filings on Forms 10-K and 10-Q, where you'll find risk factors that could cause actual results to differ materially from these forward-looking statements.

With that, I'll turn over the call to John Hadjipateras.

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [3]

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Good morning, and thank you for joining our third quarter earnings call. Today, I'm happy to have announced that based upon its assessment that this is the best use of our excess cash at this time, our Board of Directors has doubled the stock repurchase authority to $100 million. Funded by strong cash flow, the increased authorization allows us to capitalize upon the disconnect between the intrinsic value of the company and our stock market valuation. Since the original authorization last August, we have repurchased 1,397,662 shares at an average price of $12.337. Management and the Board continue to evaluate other options of enhancing shareholder value, including paying dividends, prepaying debt and acquisitions. Ted will be giving you the detailed breakdown of our TCE utilization numbers shortly. It is important to note that on a traditional definition, freight and hire less voyage costs over available days, the Helios TCE per available day was $50,141 per day, including earnings from several time charters, which were booked at the end of 2018 and in early 2019 at sub-$30,000 per day levels, most of which expire as we speak.

Our scrubber retrofit program added some logistical complexity. Positioning of ships can result in certain inefficiencies such as waiting time, sub-optimal rates and additional bunker costs. When considering the effects of these challenges and the TCE achieved in the Helios Pool, we consider our chartering performance quite solid. In addition to our own fleet, we have, since April of last year, had a ship on time charter at an attractive rate. And as announced in our earnings release, we took delivery this week of a new building, old Panamax type fitted with a hybrid scrubber.

Global seaborne LPG trade continues to grow, increasing by 14% in 2019 to a record of 109 million metric tons. While the U.S. and Middle East exported roughly the same amount in 2019, it appears that annual U.S. export volumes will surpass the Middle East for the first time in 2020. Already, during the last 3 quarters of calendar 2019, the U.S. exported 500,000 metric tons and 5 VLGC liftings on average more per month than the Middle East. Our outlook for the coming calendar year remains optimistic. The coronavirus is, of course, a potential headwind.

IMO 2020 has strengthened the market position of Dorian's fleet. Increased bunker prices have enhanced the value proposition of our young and fuel-efficient ECO-ships. As the cost differential between high-sulfur and low-sulfur fuel continues, we remain competitively positioned with 7 scrubber-equipped ships at present. And in the coming months, more than half our fleet, 12 ships total, will be scrubber-equipped.

Ted, over to you.

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Theodore B. Young, Dorian LPG Ltd. - CFO, Treasurer and Principal Financial & Accounting Officer [4]

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Thanks. My comments today will focus on our unaudited third quarter results and our remaining drydockings. For the discussion of our third quarter results, you also may find it useful to refer to the investor highlight slides posted this morning on our website.

Beginning with our chartering results, we achieved a total utilization of 98.4% for the quarter with a daily TCE, which is TCE revenue over operating days, as defined in our filings, of $43,410, yielding utilization adjusted TCE or TCE per available day of about $42,728. Our spot TCE, which reflects our portion of the net profits of the Helios Pool per available day for the quarter was $43,949. I'd like to point out that the results are net of the administrative costs of the pool and the time charters-in of 5 ships at floating Baltic rates. As a result, as John already mentioned, our actual TCE achieved in the pool is higher than this level. To just elaborate on the difference between the $44,755 per day that I just mentioned -- pardon me, the $43,949 that I just mentioned and the $51,141 that John mentioned, the $51,141 is the average rate achieved in our pool. And that is the one that is most comparable and analogous to what our competitors report, and indeed, the Baltic benchmark.

Turning to OpEx. Our daily OpEx for the quarter was $8,413, excluding amounts expensed for drydockings. It was $9,452 including those costs. OpEx per day, excluding the drydocking-related costs, was roughly flat compared to last quarter's $8,403 per day, again, which also excluded a limited amount of drydocking costs.

Total G&A for the quarter was $5 million. And cash G&A, which is G&A excluding noncash compensation expense, was about $4.4 million. This level is generally consistent with our expectations. Our reported adjusted EBITDA for the quarter was $59.9 million, which is a significant increase from the $35 million, excluding costs related to the unsolicited BW LPG proposal recorded during the same quarter last fiscal year. The strong rate environment and lower G&A accounted for most of the improvement.

We look at cash interest expense on our debt as the sum of the line items of interest expense, excluding deferred financing fees and loan expenses and realized gain/loss on derivatives. On that basis, total cash interest expense for the quarter was $7.4 million, which was down about $200,000 from the prior quarter, largely due to continued debt pay down. We continue to benefit from our hedging policy and the favorable pricing of our Japanese financings, leaving us with a current interest cost fixed hedged in a small floating fees of about 4.3%.

For the quarter, we had cash outlays for capital costs associated with drydockings of approximately $10.2 million or $4,835 per fleet day. Fleet day is calendar days plus time charter-in days as those terms are used in our filings. Combined with amounts expensed during the quarter, our total drydocking cash outlay was roughly $12.2 million. We also managed to repurchase $8.6 million of stock during the quarter and an additional $2.3 million since the end of the quarter. In total, we've now repurchased $17.1 million equal to about 1.4 million shares, which was nearly 2.5% of the shares outstanding prior to the announcement of the buyback.

Our cash flow and liquidity remains strong. Since quarter end through to February 3, 2020, our restricted and unrestricted cash is up to around $106 million. Although we hold an 80-plus percent economic interest in Helios, we do not consolidate its balance sheet accounts, which has the effect of understating our cash and working capital. Thus, we believe it is useful to provide some additional detail in order to give a more complete picture. As of Monday, February 3, the pool had roughly $30 million of cash on hand.

John Lycouris will comment in a bit more detail about our drydocking plans. But delays in China coronavirus related and other have extended our drydocking program for the remaining 5 ships. We now expect to have our program completed by early May, and the remaining cash outlays are estimated $18.5 million over the next 3 quarters, that is the quarter ending March 31 and the subsequent 2 with up to $12 million incurred -- or outlaid in the quarter ending March 31. Given the uncertainties caused by the coronavirus outbreak, there could be some movement in the schedule. Upon completion of the program, 12 to 23 vessels in our fleet will be able to profit from the expected full price differential between VLSFO and low-sulfur fuel oil. Since the beginning of the year, the TCE per day premium for scrubber-equipped VLGCs has ranged from $10,000 to $20,000 per day, which supports our investment thesis in the scrubbers.

With a solid market backdrop and a strong balance sheet, we maintain a constructive view on our business and expect to continue to be able to generate solid cash-on-cash return for our shareholders.

With that, I'll pass it over to John Lycouris.

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John C. Lycouris, Dorian LPG Ltd. - CEO of Dorian LPG (USA) LLC [5]

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Thank you, Ted. The U.S. NGL export growth is expected to continue in 2020 with a series of export capacity additions. Enterprise, Targa and Energy Transfer terminals are all planning expansions starting in late 2019 and continuing into late 2020, early '21. These NGL infrastructure developments are expected to ease the operating terminal limits we have seen during 2019 with export and fractionation capacity able to meet the increasing supply of products to 2021 and beyond.

During the last quarter, we saw 194 VLGC liftings from the U.S., and October has set a new record. It was actually 70 liftings in October. Most likely, the completion of the Enterprise products terminal expansion on the ship channel contributed to that record as did the 6 VLGC liftings of about 300,000 metric tons from the U.S. to India.

The U.S. propane inventories remain at the higher end of their 5-year range at 82.9 million barrels last week, 37.8% higher than same time last year. As the global LPG supplies continue to grow, we can expect more downward pressure on global prices, which will encourage LPG cracking over naphtha for the Northwest Europe and Far East petrochemical industries. The arbitrage between the Middle East propane and butane benchmark pricing for February versus the Mont Belvieu spot stands at about $300 per metric ton and $213 per metric ton, respectively. This arbitrage is exacerbated by the U.S.-China tariff dispute, which has resulted in significant cargo swapping in Northeast Asia, maintaining China LPG prices at a premium.

Perhaps the Phase 1 trade deal recently signed between U.S. and China will change trade for all the NGL products in the coming months as they are all included in the list of products, which China has committed to import from the United States. In such a case, we are likely to see LPG prices return to normal levels and Chinese LPG prices set closer to the Far East Index.

According to Clarkson, the VLGC fleet order book stands currently at about 15% or about 42 vessels with 40 vessels in the fleet over 20 years of age. We expect the increased compliance and operating costs will drive older, less efficient vessels to demolition.

Dorian LPG currently operates 7 scrubber-fitted vessels as John mentioned and Ted, of which 5 were fitted in the last 5 months within a period of 33 days, including completion of the special survey drydocking and a ballast water treatment installation in 2 of them. Our hybrid scrubber retrofit program continues with 2 vessels currently being retrofitted.

During my recent visit to the Far East, the issues of congestion and manpower and material shortages were discussed with the shipyards, now further impacted by the coronavirus epidemic, resulting to the voluntary extension of the Chinese New Year Spring Festival holiday to early next week. One of our vessels, while being retrofitted in China, has been impacted by this extension of the Chinese New Year holidays. And we have delayed -- it has delayed the works completion beyond our expectations. There are 3 more vessels planned for scrubber retrofit and drydocking in the next few months, which we expect to complete timely, subject to the coronavirus, of course.

During January 2020, we saw shortages and price volatility in many areas for the new compliant fuels, the very low-sulfur fuel oil, resulting in wide price differentials versus the high-sulfur fuel oil. All Dorian LPG vessels that were not scrubber fitted transitioned on the average by the end of December to very-low sulfur fuel oil without any issue. We expect pricing differentials between the 2 fuels to remain around the 200 metric ton per month in the coming year and that our scrubber ECO vessels will continue to earn significant time charter equivalent over nonscrubber ECO and modern VLGC vessels.

Thank you. I will pass it over now to John.

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [6]

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Thank you, John. Michelle, we can go to questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Our first question comes from the line of Omar Nokta with Clarksons Platou Securities.

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Omar Mostafa Nokta, Clarksons Platou Securities, Inc., Research Division - Head of Shipping Research & Analyst [2]

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Okay. Yes. Just wanted maybe just to touch on -- maybe, John Lycouris, your last comment about the vessel that's in the yard in China and how you're expecting to see delays beyond what you had anticipated. Is that sort of like an open-ended delay? Or is it more -- it's adding a couple of weeks to the expected time frame?

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John C. Lycouris, Dorian LPG Ltd. - CEO of Dorian LPG (USA) LLC [3]

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Omar, as I said, subject to the coronavirus epidemic, we expect that it will finish in the next 2 weeks. It still has not recommenced operations and works because this extension has gone on to the 9th of February. So we expect that completion will happen, however, there has been no work whatsoever for now 2 weeks.

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [4]

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To give you a picture, Omar, the ship is kind of lockdown, right? And nobody goes on, the crew cannot go off. There's nobody in the shipyard. And like John said, 9th of February, they're supposed to come back to work. Once that day comes, we'll know whether what's happening and how quickly it's going to happen. I mean when they work, they work very efficiently. We haven't had many complaints with the work that we've been doing in China. Most of our work, so far, has been done in Singapore. And there, we were very satisfied. But in China, not quite the same, but still moving fine until this -- the Chinese New Year and the coronavirus on top of it.

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Omar Mostafa Nokta, Clarksons Platou Securities, Inc., Research Division - Head of Shipping Research & Analyst [5]

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Okay. So it's more of like it's a function of both events happening simultaneously.

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [6]

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Yes. More the second now because the Chinese New Year was supposed to have finished already. So we're now -- the extension has been because of the coronavirus.

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Omar Mostafa Nokta, Clarksons Platou Securities, Inc., Research Division - Head of Shipping Research & Analyst [7]

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Okay. And do you think that, that may be, as you think about the next 3 scrubber installations, does that maybe cause you to rejigger the time frame on that and maybe just keep the ships trading for a bit longer and then reassessing the scrubber down the line?

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [8]

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Yes. I mean we -- I don't know. But I don't remember which of them -- are all 3 for Chinese yards, John? Do you know?

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John C. Lycouris, Dorian LPG Ltd. - CEO of Dorian LPG (USA) LLC [9]

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Yes.

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [10]

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They're all Chinese yards, yes. Well, one of the things we might look at doing is doing them in another non-Chinese yard if -- but it's an open question, open question. We weren't -- we were -- we rejigged already a little bit the dates partly because of the trading returns that we could have. So if we see difficulties in the yards coming up continuing and the trading returns are like they are now, we would probably keep the ships trading until we can see an opportunity to have a definitive time frame for doing the retrofit. I think I'm going to -- we've been doing -- like John said, our average being about 35 days, which I think probably is a good industry -- how many?

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John C. Lycouris, Dorian LPG Ltd. - CEO of Dorian LPG (USA) LLC [11]

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33, less than 33.

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [12]

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33, there. You know me, I'm...

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Omar Mostafa Nokta, Clarksons Platou Securities, Inc., Research Division - Head of Shipping Research & Analyst [13]

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No. That's pretty decent then relative to what we've been hearing.

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [14]

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Right, right.

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Omar Mostafa Nokta, Clarksons Platou Securities, Inc., Research Division - Head of Shipping Research & Analyst [15]

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Maybe just switching slight gears, still sticking with the yards. But...

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Theodore B. Young, Dorian LPG Ltd. - CFO, Treasurer and Principal Financial & Accounting Officer [16]

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And Omar, I'm sorry to interrupt you. I have to say that these are hybrid scrubbers, which is a lot more involved.

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [17]

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Yes, than regular.

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Theodore B. Young, Dorian LPG Ltd. - CFO, Treasurer and Principal Financial & Accounting Officer [18]

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I'm sorry to interrupt.

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [19]

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Yes.

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Omar Mostafa Nokta, Clarksons Platou Securities, Inc., Research Division - Head of Shipping Research & Analyst [20]

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I appreciate that. So that's even more impressive, the 33 days. And then just maybe thinking about the fleet capacity. Obviously, there hasn't been much ordering. There's been a handful of orders recently. I think Advance was -- most recently ordered in December a couple of VLGCs. And John, I remember, if I recall in the last earnings call, you were traveling, and I had asked about new buildings. And it was a word you didn't like to hear. How do you think, just with the way the market's been shaping up and how it's been counter seasonally much stronger than expected? And looking ahead, and yes, there's some uncertainty near term with coronavirus and whatnot, but how do you think about the new building market for Dorian as it stands today?

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [21]

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Tim and I were in Korea recently, Tim Hansen, our Chief Commercial Officer. We were in Korea in January, and you know this. I have to say the yards are keen to build. But the interest they're seeing, including from us, is tempered still by the uncertainties. And whatever we've seen ordered has been -- except for events, has been against charter inquiries. And so I don't see -- I would like to think there's not going to be a speculative wave of new buildings. And certainly, we're not going to be doing anything that would be reckless in terms of adding numbers to the fleet. We think the fleet is fairly well balanced. And in our own plans, we could -- we're not excluding the possibility of doing something. But if it is, if we do, it will be -- they're sort of proportions that you would -- it would not really affect the overall balance of demand and supply.

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Operator [22]

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Our next question comes from the line of Michael Webber with Webber Research & Advisory.

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Chris Tsung;Webber Research & Advisory;Analyst, [23]

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It's actually Chris on for Mike. So thank you for all the color and the impact that you're seeing on the coronavirus throughout the market. And I guess I was seeing portfolios are down in some other sectors, around 50% in China and wanted to see the impact it's having on Chinese propane and butane imports. Do you see that become similar? Are you guys seeing these?

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [24]

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We haven't actually seen something that impacts -- I mean we have a ship discharging in China, as we speak, and we haven't seen anything very significant, to say, about port calls, not yet. But frankly, I'd expect that we would. I'd expect that we would. I mean actually, I've got -- so we've got Tim Hansen on the line. He may be able to give you more up-to-date information on that. But, Tim, do you have anything?

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Tim Hansen, Dorian LPG Ltd. - Chief Commercial Officer and Director of Dorian LPG (UK) Ltd [25]

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No. I don't think -- I mean the reason maybe also we haven't seen anything yet is that due to the holidays, the Chinese are basically -- they reduced the import over the holidays because -- and all the ports will kind of stop working. So we might see, once they return after the holidays and import starts again, some delays. But yes, so far, we haven't seen anything.

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Chris Tsung;Webber Research & Advisory;Analyst, [26]

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Okay. And I guess like a follow-on to that is like have you seen or expect any sort of knock-on effects for Chinese PDH plants coming online?

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [27]

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Was the question is whether we've seen anything new with the PDH plants?

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Theodore B. Young, Dorian LPG Ltd. - CFO, Treasurer and Principal Financial & Accounting Officer [28]

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Delays.

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [29]

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Any delays? No, no, no. But it's a good question. I mean, ultimately, that would be another thing that would be affected, depending on -- I mean I think we, together with the rest of the world, are looking for a V-shaped recovery at some point. But it's -- unfortunately, it's a play that is still on stage, and we won't know how it will play out, yes.

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Chris Tsung;Webber Research & Advisory;Analyst, [30]

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Okay. Yes. And I guess something like a little topical, and you guys covered this a bit around volatility and fuel spread. But I know you guys have done work with LPG as AmeriFuel. I wanted to see if you could get us any details or updates on the last call.

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [31]

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Well, we do have -- we continue our assessment and trying to see if we can bring the participants in a project like that, which will be the engine manufacturer, the engineering company, the shipyards and all that, to a point where we think the price is more affordable. But so far, we've been making progress, but we're still -- our position is still to wait and see how our friends do with the first 4 ships that they're retrofitting this quarter.

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Operator [32]

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Our next question comes from the line of Sean Morgan with Evercore.

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Sean Edmund Morgan, Evercore ISI Institutional Equities, Research Division - Analyst [33]

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So in light of the disruption you guys are seeing now with coronavirus in China at the yards for the scrubbers, a couple of questions, just sort of in that vein. The estimated quarterly cash outlays, is that taking into account that everyone is back to work on February 9? Or should we expect that March 31 quarter cash outlay of $11 million might get pushed back into the following quarter?

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [34]

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Ted will answer you.

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Theodore B. Young, Dorian LPG Ltd. - CFO, Treasurer and Principal Financial & Accounting Officer [35]

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Yes. I mean, at this point, it's based on people going back to work, as John indicated, because that's our best guess when we put it together. And even if it slips a couple of weeks, that shouldn't have a material impact on the timing. As John and John both said, it's still a bit of a wild card, right? If the -- if it's -- if there's further slowdowns because of the coronavirus outbreak, they can move things around further.

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Sean Edmund Morgan, Evercore ISI Institutional Equities, Research Division - Analyst [36]

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Okay. And then back in 2018, you guys had talked about an MOU with Hyundai that undertake the examining and retrofitting the VLGCs, and that was just touched on. But could that be done in a Korean yard? Or is there a possibility to do that in lieu of, I guess, additional scrubbers? If there's really material delays and -- kind of in light of what you're seeing in terms of the fuel spread between VLSFO and high-sulfur fuel oil?

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [37]

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Well, we had earmarked the ships that would not be fitted with scrubbers to be candidates for the LPG modification, so I think we're still there. And also regarding where it could be done, yes, it could be done in Korea or in a Chinese shipyard.

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Operator [38]

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Our next question comes from the line of Mats Bye with DNB.

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Mats Bye, DNB Markets, Research Division - Junior Analyst [39]

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Just pushing a bit on the 3 bit older vessels, the Captains, the first one that you see, how do you see the earnings differential developed in the last few months and quarters? And then looking a bit further ahead, how do you see strategically these vessels? What options do you see? And would you consider divesting them if you're able to in a strong market, for instance?

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [40]

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Since I don't want to answer that question, we can -- we don't, at the moment, have any ships sort of put aside for sale. I mean the ships are performing very well, and we're happy. We're happy to have them in this market, so I think that probably is the best answer I can give you.

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Mats Bye, DNB Markets, Research Division - Junior Analyst [41]

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And in terms of earnings differentials, do you see any based on fuel consumption?

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [42]

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Well, only what you know. I mean only the ECO-ships are more economical, and I think we've given those numbers. The differentials obviously change with the price of the fuel oil. And so on an overall basis, once the prices have gone up, then the ECO-ships have the greater advantage to the 3 Captains. But the Captains, we kind of try to schedule them on shorter voyages and do it where the impact of the higher fuel costs would be mitigated.

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Operator [43]

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(Operator Instructions) Our next question comes from the line of Thomas Korsdalen with Arctic Securities.

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Thomas Korsdalen;Arctic Securities;Investment Banker, [44]

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I just had a general question with reference to the paragraph where you discussed the market and the seasonality. I'm not quite sure the wording here, how I should see this. But when you say that the activity has not yielded the expected seasonal results, I read this as it's been better than what you expected from this quarter. Is this correct?

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [45]

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Correct.

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Operator [46]

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There are no further questions at this time. I'd like to turn the call back over to Mr. Hadjipateras for any closing remarks.

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John C. Hadjipateras, Dorian LPG Ltd. - Chairman of the Board, President & CEO [47]

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Thank you, Michelle. Thank you, everyone, for joining, and we look forward to next quarter and onward and better. Thank you. Bye-bye.

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Operator [48]

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Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.