investor presentations21.q4cdn.com/513962416/files/doc_presentations/2019/...2019/01/10 · •...
TRANSCRIPT
DORIAN LPGJanuary 2019
Investor Presentation
Disclaimer
Forward-Looking Statements
This presentation contains certain forward-looking statements including analyses and other information based on
forecasts of future results and estimates of amounts not yet determinable and statements relating to our future
prospects, developments and business strategies. Forward-looking statements are identified by their use of terms
and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,”
“will” and similar terms and phrases, including references to assumptions. The forward-looking statements in this
presentation are based upon various assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, management’s examination of historical operating trends, data contained in our records
and other data available from third parties. Although we believe that these assumptions were reasonable when
made, because these assumptions are inherently subject to significant uncertainties and contingencies that are
difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish
these expectations, beliefs or projections.
Actual results could differ materially from expectations expressed in the forward-looking statements if one or more of
the underlying assumptions or expectations proves to be inaccurate or is not realized. Our actual future results may
be materially different from and worse than what we expect. We qualify all of the forward-looking statements by these
cautionary statements. We caution readers of this presentation not to place undue reliance on forward-looking
statements. Any forward-looking statements contained herein are made only as of the date of this presentation, and
we undertake no obligation to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
2
Company Overview
Dorian LPG at a Glance
US-Based with a Global Presence
Current VLGC Fleet Age Profile1
• Dorian LPG is a liquefied petroleum gas (LPG) shipping
company and a leading owner and operator of modern
very large gas carriers (VLGCs)
• The Company was established in 2013 in connection
with placing a large newbuilding order at Hyundai HI,
although predecessor entities have invested in and
managed LPG vessels since 2002
• The fleet is comprised of 19 ECO-VLGCs and three
modern VLGCs, with an average age of 4.6 years
• 19 vessels are currently employed in the Helios LPG Pool
that operates 29 vessels total and was founded by the
Company together with Phoenix Tankers in April 2015
• The remaining vessels are on time charter contracts to
major companies
• The Company provides in-house commercial and
technical management services for all of the vessels in
the fleet, including vessels owned by Dorian LPG
deployed in the Helios LPG Pool
• Dorian LPG listed on the NYSE in 2014 under the
ticker “LPG”
Source: CRSL
1. Excludes ethane carriers 3
Stamford
London
Copenhagen
Athens
Singapore
4.6
9.4
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Dorian LPG Global Fleet
ye
ars
old
Dorian LPG Investment Highlights
4
Increasing Global NGL
Production & Exports
Growing Asian LPG
Demand
Commercial Scale with
the Helios LPG Pool
VLGC Rate Recover &
Orderbook Stability
Solid Financial Position
Modern, fuel-efficient
fleet
• Dorian’s fleet of 22 VLGCs has an average age of 4.6 yo vs. the global average of 9.4 yo
• 19 Korean-built ECO vessels’ fuel efficiency translates to superior earnings power vs. peers
• The Company is taking a proactive approach and is well positioned for IMO 2020
• YTD U.S. and Arabian Gulf seaborne exports continue to grow
• U.S. NGL production is pushing record levels, showing few signs of slowing down
• New North American fractionation capacity should increase LPG production and inventories
• Additional North American export capacity is expected to facilitate increased exports
• Propane maintains a competitive pricing advantage as a feedstock in Asia vs. Naphtha
• A wave of new chemical and PDH plants are planned and under construction
• LPG remains a cost effective retail fuel source in rural China
• Indian government subsidies to low-income consumers support retail LPG demand
• VLGC spot rates have recovered from cyclical lows reached in April 2018
• Global fleet utilization has also improved meaningfully
• Orderbook-to-fleet remains stable at 14%
• The costs of IMO 2020 are expected to increase vessel scrapping
• Dorian LPG is one of the three largest operators of VLGC tonnage globally
• Including the Helios LPG Pool, Dorian commercially manages 32 vessels1
• Scale allows for a mix of spot, COAs, and time charters
• Dorian LPG is well capitalized to perform through the VLGC shipping cycle
• The Company’s total cash position stands at $83.8mm, including restricted cash as of Oct.
• Over 90% of Company debt is fixed at attractive rates vs. market
• No refinancings required until 2022
1. Dorian LPG owns three vessels that are on long-term time charter
LPG Market Fundamentals
• LPG is cleaner than coal and oil
and an alternative to gasoline,
producing less air pollution and
carbon dioxide emissions
• LPG is also highly portable,
making it a convenient source of
energy usable in remote places
where ordinary gas supplies are
unavailable or have been
interrupted
Why Use LPG?
• Liquefied petroleum gas ("LPG") is
a combination of C3 (propane) and
C4 (butane)
• Both are natural gas liquids
(“NGLs”) and are a byproduct of oil
and natural gas production
• These molecules are extracted or
“cracked” through natural gas
processing and oil refining
What is LPG?
The Basics . . .
6
The LPG Value Chain
Retail (~52%)
Engine fuel (~8%)
Chemical (~23%)
Industrial (~10%)
Other (~2%)
Refinery (~5%)
Oil production (~40%)
Gas production (~60%) LPG shipping
Source: WLPGA
Seaborne LPG Trade Flows
Major VLGC Trade Routes
7
Longer Trade Routes Favor Larger VLGCs
Very Large Gas
Carrier “VLGC”
78K – 84K cbm
Large Gas
Carrier “LGC”
50K – 60K cbm
Medium Gas
Carrier “MGC”
18K – 42K cbm
Handysize
2K – 22K cbm
= major exporter
= major importer
Global LPG Supply
Global Liftings Remain Stable
U.S. Waterborne Exports Up 11% YTD
Seaborne LPG Volumes Continue to Grow
Arabian Gulf Waterborne Exports Up 18% YTD
Source: IHS Waterborne
Note: YTD values shown through October 31 9
77.3 MT
+ 11%
78.9 MT
2018
YTD
2017
YTD
2018
YTD
2017
YTD
2018
YTD
2017
YTD
63.0
75.1
85.4
90.6 92.5
60
65
70
75
80
85
90
95
2013 2014 2015 2016 2017
Metr
ic T
on
s
9.5
13.9
20.5
25.4
29.7
5
10
15
20
25
30
2013 2014 2015 2016 2017
Metr
ic T
on
s
32.1
34.8
36.7
39.2
36.7
25
30
35
40
2013 2014 2015 2016 2017
Metr
ic T
on
s
26.9
MT
24.3
MT
+ 18%
32.8 MT
27.9
MT
+ 2%
Seaborne LPG Exports by Origin
U.S. LPG has Increased Global Market Share
• The U.S. has emerged as the largest exporting nation,
forcing price competition amongst all suppliers
• Middle Eastern export growth has surprised to the
upside
• The Asian market has become increasing reliant on
U.S. LPG exports
A New Era of Supply
10Source: IHS Waterborne
Note: YTD values shown through October 31
U.S. VLGC Cargoes are Increasingly Landing in India
Evolving U.S. NGL and LPG Seaborne Trade Flows
Ethane and Butane Fueling Seaborne NGL Export Growth
2017 2018 YTD
• Through October, U.S. NGL
exports have increased 14% Y/Y in
2018
• YTD propane exports have
increased modestly, growing 6%
through August
• However, Butane and ethane
exports continue to add upside,
showing Y/Y of 47% and 56%,
respectively
11Source: EIA, IHS Waterborne
Note: YTD values shown through October 31
• Arbs to the East have been
positive for the majority of 2018,
allowing Chinese bound cargoes to
easily be diverted elsewhere in
Asia
• Chinese PDH and other Asian
cracking demand will far outweigh
incremental Middle Eastern supply,
and force suppliers to look West,
boosting ton miles
-
200
400
600
800
1,000
1,200
1,400
J-16 A-16 J-16 O-16 J-17 A-17 J-17 O-17 J-18 A-18 J-18 O-18
Mb
bl/d
Ethane Propane Butane
+26%
+14%
• U.S. propane inventories continued
their seasonal build a month longer
than observed over the past three
years despite strong exports
• Mont Belvieu pricing now reacts
more quickly to international
propane prices, making U.S.
volumes increasingly competitive
for export
Building Inventories Encourages Near-Term Propane Exports
• Record propane production of
2.145 MMbbl/d was reached during
the last week of December
• 94 Bcf/d of wet gas was marketed
during October
• Growing oil production in the
Permian and Mid-Continent are
likely to push NGL production
higher
• NGL-rich gas production in the
Utica / Marcellus also continues to
grow
Growing U.S. Propane Production Continues at Record Volumes
U.S. LPG Likely to Remain Price Competitive
Source: EIA 12
20
40
60
80
100
120
J F M A M J J A S O N D
MM
bb
l
5-yr Range 2018
1.2
1.4
1.6
1.8
2.0
2.2
J F M A M J J A S O N D
MM
bb
l/d
5-yr Range 2018
• U.S. NGL production is growing at a record pace, but limited fractionation capacity has
constrained purity product growth
• Growing fractionation capacity at Mont Belvieu should allow midstream players to
fractionate more Y-grade product into purity propane and butane for export
• New capacity at Corpus Christi and Freeport will largely serve Permian volumes
New Fractionation Should Push U.S. LPG Production Higher
1.6 MMbbl/d of Additional Frac Capacity is Planned through 2020
Source: EIA, IHS Waterborne 13
Lone Star NGL Fractionator VI Mont Belvieu 150 1Q19
Targa Resources Train 6 Mont Belvieu 100 2Q19
Enterprise Products Frac 10 Mont Belvieu 150 1Q20
Epic Midstream Robstown Expansion Corpus Christi 100 1Q20
Lone Star NGL Fractionator VII Mont Belvieu 150 1Q20
Oneok MB 5 Mont Belvieu 125 1Q20
Targa Resources Train 7 Mont Belvieu 110 1Q20
Targa Resources Train 8 Mont Belvieu 110 2Q20
Permico Energia El Centro I Corpus Christi 150 4Q20
Permico Energia El Centro II Corpus Christi 150 4Q20
Phillips 66 Sweeny Hub 2 Freeport 150 4Q20
Phillips 66 Sweeny Hub 3 Freeport 150 4Q20
Company Location Throughput
(Mbbl/d)
Est.
CompletionProject
Major Gulf Coast Processing Constraints Should Begin to Ease by 2H19
North American LPG Export Capacity Currently Stands at >90% Utilization
• Corresponding domestic demand growth appears unlikely, necessitating increasing exports to clear the market
• Energy Transfer’s Mariner East II began service this month and is expected to add three to four monthly VLGC cargoes
initially, growing to seven to eight by 2021
• Enterprise also recently announced the expansion of its Houston export facility by 2H19, adding capacity for an additional
8-9 VLGCs per month
• Canadian facilities in British Columbia are also expected to start up in 2020 (Ridley Island and Pembina)
14
More North American LPG Export Capacity is Coming
5.7 MTPA of Incremental Export Capacity in 2020, Translates to an Additional 11-12 Monthly VLGC Cargoes
Source: IHS Waterborne, Company documents, Dorian LPG Estimates 14
LPG Demand and Consumption
4.2
6.9
11.9
15.9
18.3
13.5
14.2
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
2013 2015 2016 2016 2017 2017 YTD 2018 YTD
Me
tric
To
ns
Growing LPG Markets: China
2018 YTD Chinese LPG Imports Have Grown 5.1% Y/Y
16Source: NGL Insights
Note: YTD values shown through October 31
• On 23 August, Beijing placed a 25% tariff on U.S. LPG in response to American tariffs on Chinese exports
• Residential LPG is still required as a substitute for coal in more remote areas, where piped gas infrastructure is too costly to
install, but chemicals should account for a growing share of China’s LPG demand, especially with the nation’s rapidly expanding
petrochemical complex
• Although no new PDH plants started up in China last year, both the 0.7 MTPA Fujian Meide plant and Zhejiang Satellite’s 0.5
MTPA expansion are expected to start up in 2H18
• China’s LPG demand hit 1.7 MMbbl/d in June, assuming 0.5 MMbbl/d of net imports based on Kpler cargo-tracking data
• State-owned refiners are also starting up an estimated 3.7 MTPA of alkylation units, which should reduce refinery supplies of
butane currently sold to stand alone deep-processing units and increase the need for imports
China Has Largely Substituted U.S. LPG with MEG Volumes
China Continues to Drive Asian LPG Demand
Our Chinese LPG Demand Outlook Remains Favorable
17Source: IHS Waterborne
Note: YTD values shown through October 31
A Second Wave of New Chinese PDH Plants
18
• Chinese PDH margins average $380/ton YTD 2018 and have
been operating at high utilization rates since 2017
• Domestic Chinese LPG production from deep processing
appears to be decreasing
• LPG production from oil refineries has decreased since 2016
• Ongoing government rationalization of refineries may also
decrease domestic LPG production even further over the next
several years
Ten Planned Projects are Expected to add 7.0 MTPA of LPG Demand through 2022
Projected Incremental Chinese Propane Demand Growth from New PDH Plants
Source: Wanhua Petrochemical
Soft Packaging 792 2019
Ju Zhen Yuan 720 2019
Satellite Petrochemical 540 2019
Oriental Energy 792 2020
Rongsheng 720 2020
Wanda Petrochemical 600 2020
Oriental Energy 792 2021
Oriental Energy 792 2021
Rongsheng 720 2022
Hongji Petrochemical 540 2022
Company Throughput
('000 tons)
Est.
Completion
2.1 2.1
1.6
1.3
-
0.5
1.0
1.5
2.0
2.5
2019E 2020E 2021E 2022E
MT
PA
6.3
8.0
9.0
10.3
11.9
8.3
8.9
5.0
6.0
7.0
8.0
9.0
10.0
11.0
12.0
13.0
2013 2015 2016 2016 2017 2017 YTD 2018 YTD
Me
tric
To
ns
Government Subsidies are Boosting Consumer Adoption
The LPG Nation: India
Indian LPG Demand is Steadily Increasing
19
• The Indian LPG subsidy is the largest government subsidy scheme in the country’s history
• 55mm LPG retail connections were added from May 2016 to present; another 30mm are planned through March 2020
• The government forecasts annual LPG demand to grow by 11-12% over the next five years
• The Indian Oil Corporation’s LPG pipeline between its 300 Mbbl/d Paradip refinery and eastern India is planned to start up in
November
• Part of the pipeline was commissioned in April, making eastern India one of the country’s fastest-growing LPG demand centers,
increasing by 12.1% y/y in September
Source: NGL Insights, FGE, Energy Aspects
Note: YTD values shown through October 31
Source: FGE, Bloomberg
LPG Cracking Capacity Should Boost Demand
A New Wave of Asian Cracking Capacity is Planned FE Propane / Naphtha Spread Has Widened
20
Lotte Chemical S. Korea 444 2018
Titan Chemicals (expansion) Malaysia 75 2018
Hanwha Total Petrochemical S. Korea 689 2019
LG Chem S. Korea 1,123 2019
SP Chemicals China 932 2020
Wanhua Chemical China 2,222 2020
Sinopec China 688 2020
Gulei Petrochemical China 717 2020
YNCC S. Korea 102 2020
JG Summit (expansion) Philippines 140 2021
LG Chem S. Korea 758 2021
Hyundai Chemical S. Korea 187 2021
GS Caltex S. Korea 219 2022
SCG Chemical Vietnam 867 2022
Company Location LPG Required
('000 tons)
Est.
Completion
$(39)
$(22)
$(58)
$(19)
$(64) $(70)
$(60)
$(50)
$(40)
$(30)
$(20)
$(10)
-
2014 2015 2016 2017 2018
pe
r M
T
South Korean LPG Demand Expected to Double Over Ten Years
New Steam Crackers Growing LPG DemandSouth Korean PDH + Flexi Cracker Expansions
• South Korea Currently has 4.1 MTPA of current
cracking capacity
• Planned South Korean LPG cracking capacity
additions and expansions are expected to add 7.3
MTPA of demand by 2023
• South Korean supply diversification should help
boost U.S. cargoes vs. MEG cargoes
• Represents significant ton-mileage expansion
Daesan Complex
Ulsan Complex
Yeosu Complex
• LG Chemical
• Lotte Chemical
• HTC
• Hyundai Oilbank
• SKG Chemical
• KPIC
• S-Oil
• LG Chemical
• Lotte Chemical
• YNCC
• GS Caltex
21Source: SK Gas
Dorian LPG
Young Fleet Allows for a Flexible Approach Towards Compliance
A Premium Fleet, Well Prepared for IMO 2020
• Corvette and Concorde are already scrubber equipped
• Dorian LPG has announced the purchase of up to seven hybrid
scrubbers from Clean Marine A/S for ~$20mm, including
installation
• The Company has been at the forefront of evaluating LPG as a
marine fuel, completing a feasibility study with the American Bureau
of Shipping and signing a letter of intent with Hyundai Heavy Global
Services for the upgrade of up to ten vessels
• Current LPG-HFO fuel cost differential does not yet support the
investment required to retrofit vessels for use of LPG as a primary
marine fuel
• Sixteen of Dorian LPG’s Eco VLGCs were built with strengthened
decks necessary to accommodate LPG fuel tanks in the case of
retrofitting for LPG bunkering
• In-house technical and commercial management
23
Caravelle 2016
Challenger 2015
Copernicus 2015
Chaparral 2015
Commander 2015
Cratis 2015
Cheyenne 2015
Clermont 2015
Constellation 2015
Cresques 2015
Commodore 2015
Constiution 2015
Continental 2015
Cobra 2015
Concorde 2015
Cougar 2015
Corvette 2015
Corsair 2014
Comet 2014
Capt. Nicholas ML 2008
Capt. John NP 2007
Capt. Markos NL 2006
Vessel Name Built Retrofit
Capable
Scrubber
Installed
Scrubber
Ready
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
Eco Modern
• The Helios LPG Pool is a 50/50 partnership between Dorian
LPG and Phoenix Tankers, a subsidiary of MOL of Japan
• The primary goal of the Pool is to create a critical mass of
reliable and efficient VLGCs to allow Helios to provide the
most dependable global LPG maritime solution. Offering
spot freight, TCs, and COAs facilitates flexibility and
affordability, while optimizing earnings for all partners
• Earnings are allocated to each vessel participating in the
Pool based on “Pool Points,” which are awarded based on
vessel characteristics such as carrying capacity and fuel
consumption over the relevant period
Dorian LPG Commercially Controls 32 Vessels1
The Leading VLGC Commercial Platform
Helios LPG Fleet Composition1
1. Dorian LPG jointly operates 29 vessels in the Helios LPG Pool 24
$4.3 $4.8 $5.1
$6.1 $5.9 $6.0 $6.7
$7.1
$8.4 $8.1 $7.6
$8.5 $9.0
$10.7 $10.3
-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
Korean Eco Chinese Eco HHI Modern DSME Non-Eco Japanese
millio
ns
$400 / MT $550 / MT $700 / MT
Average Fuel Consumption by Vessel Profile
45.0
49.5
54.0
63.0
60.0
41.0
46.5 48.0
58.5 57.3
35
40
45
50
55
60
65
Korean Eco Chinese Eco HHI Modern DSME Non-Eco Japanese
MT
/ d
ay
Laden Ballast
Dorian LPG’s Fleet Composition
Source: Dorian LPG management estimates
1. Assumes vessels sail 16kts ballast and laden; 36.6 sailing days roundtrip, split evenly ballast and laden; 252 days/year; Japanese vessels sail 15kt laden, equaling a roundtrip voyage of 37.9 days
• 19 Korean-built fuel-efficient Eco
VLGCs with an avg. age of 3.1
years
• 3 HHI-built Non-Eco built VLGCs
with an avg. age of 11.0 years
• Modern fuel-efficient vessels
offer a substantial earnings
advantage relative to older
tonnage
Estimated Annual Fuel Cost by Vessel Profile1
Dorian LPG is a Leader in Fuel Efficiency
25
VLGC Shipping Market Dynamics
VLGC Spot Rates Have Recovered from Cyclical Lows
Baltic VLGC Daily Spot Rates
Rate Commentary
• The Baltic VLGC Index broke $40/mt in July, the first time
since February 2016; rates reached over $47/mt or
~$30,000/day in October
• We have seen an average of over six liftings monthly
from both the U.S. and the Middle East during 2018
• Incremental VLGC fleet growth has been absorbed without
severely impacting 2018 utilization
Fleet Utilization Has Followed Rates Higher
77%
84%
88%
70%
80%
90%
100%
1Q18 2Q18 3Q18
Source: Baltic Exchange, Clarksons 27
-
$10K
$20K
$30K
$40K
F-16 A-16 J-16 A-16 O-16 D-16 F-17 A-17 J-17 A-17 O-17 D-17 F-18 A-18 J-18 A-18 O-18 D-18
TC
E /
da
y
Baltic TCE/Day Baltic TCE/Day (4 week trailing avg.)
117
35
52
25
8
24
-
20
40
60
80
100
120
140
< 5 5-10 10-15 15-20 20-25 25+
ve
ss
els
Vessel Supply Remains Balanced
Recent VLGC Deliveries and Current Orderbook
VLGC Fleet Age Profile and Potential Scrapping
• 6 VLGCs have been scrapped in 2018
o 1 ship in 1Q18 (28 yo)
o 3 ships in 2Q18 (avg. age of 32 yo)
o 1 ship in 3Q18 (28 yo)
o 1 ship in 4Q18 (25 yo)
• 32 potential scrapping candidates, represent ~12% of
the current fleet
• IMO 2020 regulations likely to accelerate scrapping in
the near term as compliant fuel increases in price,
making less efficient ships uneconomical
• Orderbook-to-fleet stands at ~14%
• Increasing output from the U.S., Ichthys, and the
Middle East should be enough to absorb near-term
deliveries
• Asian buyers will increasingly look to diversify supply
away from Iran, likely having a positive effect on
utilization and minimizing the impact of new tonnage
28Source: CRSL
Note: Excludes ethane carriers
35 44 21 10 17 20 -
10
20
30
40
50
2015 2016 2017 2018 2019E 2020E
ve
ss
els
Delivered On Order
Financials
Over 90% of Company Debt is Either Fixed or Hedged at a Current Total Cost of ~4.4%1
• Generating additional liquidity of approximately $63.3 million
• Lengthening of debt maturities
o 3 ECO VLGCs with maturities in 2029-2031 (12-13 year tenors)
o 3 “Captains” with maturities in 2024-25 (6-7 year tenors)
• Fixed interest rates on ECO VLGCs of 4.9% and on the three Captains at 6.0%
• Very attractive age-adjusted profiles
• No financial covenants
Enhancing Balance Sheet Strength & Flexibility
30
Since November 2017, Dorian LPG Has Completed Six Japanese Financing Arrangements
The Company has no refinancing requirements until 2022
1. As of November 2018
Statement of Operations (USD)
31
(1) Our method of calculating time charter equivalent rate is to divide revenue net of voyage expenses by operating days for the relevant time period.
(2) Calculated by dividing vessel operating expenses by calendar days for the relevant time period.
(3) Represents net income excluding the potentially disparate effects between periods of derivatives, interest and finance costs, stock-based
compensation expense, impairment, and depreciation and amortization expense and is used as a supplemental financial measure by
management to assess our financial and operating performance.
Statement of Operations Data
Three Months Ended
September 30, 2018
(Unaudited)
Three Months Ended
September 30, 2017
(Unaudited)
Revenues 40,807,542 34,729,021
Voyage expenses (435,224) (1,275,521)
Vessel operating expenses (17,375,273) (15,740,438)
General and administrative expenses (7,462,726) (5,421,145)
Other income—related parties 584,632 638,070
EBITDA 16,118,951 12,929,987
Depreciation and amortization (16,437,653) (16,464,707)
Operating loss (318,702) (3,534,720)
Other expenses, net (7,854,418) (8,380,416)
Net loss (8,173,120) (11,915,136)
Other Financial Data
Time charter equivalent rate (1) 20,973 18,015
Daily vessel operating expenses (2) 8,585 7,777
Adjusted EBITDA (3) 17,855,615 14,111,332
Statement of Operations (USD)
32
(1) Our method of calculating time charter equivalent rate is to divide revenue net of voyage expenses by operating days for the relevant time period.
(2) Calculated by dividing vessel operating expenses by calendar days for the relevant time period.
(3) Represents net income excluding the potentially disparate effects between periods of derivatives, interest and finance costs, stock-based
compensation expense, impairment, and depreciation and amortization expense and is used as a supplemental financial measure by
management to assess our financial and operating performance.
Statement of Operations Data
Six Months Ended
September 30, 2018
(Unaudited)
Six Months Ended
September 30, 2017
(Unaudited)
Revenues 68,451,824 75,754,493
Voyage expenses (535,397) (1,514,966)
Vessel operating expenses (34,060,730) (32,625,727)
General and administrative expenses (15,866,012) (13,956,054)
Other income—related parties 1,229,149 1,271,953
EBITDA 19,218,834 28,929,699
Depreciation and amortization (32,702,709) (32,757,865)
Operating loss (13,483,875) (3,828,166)
Other expenses, net (15,289,803) (14,776,940)
Net loss (28,773,678) (18,605,106)
Other Financial Data
Time charter equivalent rate (1) 18,923 20,334
Daily vessel operating expenses (2) 8,460 8,104
Adjusted EBITDA (3) 23,040,751 31,582,161
Statement of Operations (USD)
33
(1) Our method of calculating time charter equivalent rate is to divide revenue net of voyage expenses by operating days for the relevant time period.
(2) Calculated by dividing vessel operating expenses by calendar days for the relevant time period.
(3) Represents net income excluding the potentially disparate effects between periods of derivatives, interest and finance costs, stock-based
compensation expense, impairment, and depreciation and amortization expense and is used as a supplemental financial measure by
management to assess our financial and operating performance.
Statement of Operations DataYear Ended Mar 31, 2018
(Audited)
Year Ended Mar 31, 2017
(Audited)
Revenues 159,334,760 167,447,171
Voyage expenses (2,213,773) (2,965,978)
Vessel operating expenses (64,312,644) (66,108,062)
General and administrative expenses (26,186,332) (21,732,864)
Other income—related parties 2,549,325 2,410,542
EBITDA 69,171,336 79,050,809
Depreciation and amortization (65,329,951) (65,057,487)
Operating income 3,841,385 13,993,322
Other expenses, net (24,242,071) (15,435,137)
Net loss (20,400,686) (1,441,815)
Other Financial Data
Time charter equivalent rate (1) 21,966 22,037
Daily vessel operating expenses (2) 8,009 8,233
Adjusted EBITDA (3) 74,515,790 83,279,670
Statement of Cash Flows (USD)
34
Cash Flows Data
Six Months Ended
September 30, 2018
(Unaudited)
Six Months Ended
September 30, 2017
(Unaudited)
Net loss (28,773,678) (18,605,106)
Adjustments 34,705,038 35,786,966
Changes in operating assets and liabilities (15,180,103) 15,139,059
Net cash provided by/(used in) operating activities (9,248,743) 32,320,919
Net cash used in investing activities (1,159,583) (385,981)
Net cash used in f inancing activities (34,950,168) (31,050,201)
Effects of exchange rates on cash and cash equivalents (129,709) 149,322
Net increase/(decrease) in cash and cash equivalents (45,488,203) 1,034,059
Cash Flows DataYear Ended March 31,
2018 (Audited)
Year Ended March 31,
2017 (Audited)
Net loss (20,400,686) (1,441,815)
Adjustments 65,516,838 46,189,541
Changes in operating assets and liabilities 12,132,951 7,356,042
Net cash provided by operating activities 57,249,103 52,103,768
Net cash provided by/(used in) investing activities 24,574,405 (1,981,022)
Net cash provided by/(used in) f inancing activities 4,671,658 (79,318,882)
Effects of exchange rates on cash and cash equivalents (8,042) (197,274)
Net increase/(decrease) in cash and cash equivalents 86,487,124 (29,393,410)
Balance Sheet (USD)
35
September 30, 2018 September 30, 2017
(Unaudited) (Unaudited)
Cash and cash equivalents 48,244,169 50,844,921
Restricted cash, non‑current 35,636,008 18,081,836
Total assets 1,679,160,894 1,698,062,144
Total debt including current portion – net of deferred f inancing fees of $15.5 million
and $20.3 million as of September 30, 2018 and 2017, respectively.726,536,136 718,784,143
Total liabilities 746,696,829 739,050,646
Total shareholders' equity 932,464,065 959,011,498
March 31, 2018 March 31, 2017
(Audited) (Audited)
Cash and cash equivalents 103,505,676 17,018,552
Restricted cash, non‑current 25,862,704 50,874,146
Total assets 1,736,110,156 1,746,234,880
Total debt including current portion – net of deferred f inancing fees of $16.1 million
and $20.1 million as of March 31, 2018 and 2017, respectively.759,103,152 749,964,248
Total liabilities 776,696,794 770,233,162
Total shareholders' equity 959,413,362 976,001,718
Balance Sheet Data
Balance Sheet Data
Appendix
IMO 2020 Fuel Options
37
Distillate or
Blended FuelsHigh Sulfur Fuels Alternative Fuels New Fuels
Type ULSGO 0.1% S,
ULSFO 0.5% SHSFO 3.5% S LNG / LPG / Ethane Hybrid, Bio, GTL, New
Requirements Tank Cleaning with scrubbers only
Newbuilding or with
engine retrofit for dual
fuel
N/A
AvailabilityNo product yet and no
ISO standardAvailable
Available, but not easy
to sourceExperimental stage
ProsCompliant operation
with no capex or
modifications
Pricing; no operational
change required
Compliant and greener
solution with lower
green house gases
and nitrous oxides
Green solution
ConsPricing; blended mix of
fuels and treated fuel
oils
Capex; new marine
application on vessels;
new compliance
regulations
Higher installation
capex; re-supply
issues; storage
considerations
Not commercially
available