Posted on August 12, 2024
Dorian LPG Ltd., an operator of very large gas carriers (VLGCs), reported a net income of $51.3 million for the three months ended June 30, 2024, down from $51.7 million for the three months ended June 30, 2023.
In a media release, Dorian LPG said that its revenues for the second quarter of 2024 reached $114.4 million, 2.5 percent above the $111.6 million for the corresponding period a year prior. The company attributed the increase to an increase in fleet size, partially offset by a reduction in fleet utilization.
“Demand for LPG remains strong, as its availability, cost-effectiveness, and environmental footprint make it a fuel of choice for many applications”, John C. Hadjipateras, Chairman, President and Chief Executive Officer of the company, said.
The company said that the time charter equivalent (TCE) rate per operating day for its fleet was $55,228 in the second quarter, an eight percent increase from $51,156 for the same period in 2023. Total fleet utilization decreased from 98.0 percent during the three months ended June 30, 2023, to 90.4 percent during the three months ended June 30, 2024.
Vessel operating expenses were $20.5 million during the second quarter of 2024, rising 3.2 percent from the $19.8 million for the corresponding period a year prior. This was primarily the result of increases of $159 per vessel per calendar day for spares and stores and $102 per vessel per calendar day for crew wages and related costs, the company said.
The LPG shipping market is historically stronger in the spring and summer months due to increased consumption of propane and butane for winter heating, Dorian LPG noted. Unpredictable weather patterns disrupt vessel scheduling and commodity supply. Dorian LPG predicts demand for vessels may be stronger in quarters ending June 30 and September 30. However, recent market activity has not followed typical seasonal patterns due to increased petrochemical industry buying, which may reduce seasonality in the future, it said.
