Dorian LPG First Quarter 2015 Financial Results

Dorian LPG Ltd. , a leading owner and manager of modern very large gas carriers ("VLGCs"), today reported its financial results for the three months ended June 30, 2014.

Highlights – First Quarter

Took delivery of the first vessel under our VLGC newbuilding program, the Comet, from Hyundai Heavy Industries Co. Ltd., which began a five-year time charter with Shell on July 25, 2014.

Captain John NP recorded time charter equivalent ("TCE") rate of $64,340 for the three months ended June 30, 2014

Chartered the Captain Markos NL to Shell for five years beginning on or about November 1, 2014.

Pooling arrangement with Phoenix Tankers of Japan expected to commence January 1, 2015.
John Hadjipateras, Chairman, President and Chief Executive Officer, commented, "We are pleased to begin 2015 with the delivery and immediate charter of the first VLGC vessel from our newbuilding program of 19 VLGCs. The U.S. has shifted from being a small player in the export market to becoming a significant player in the industry and is now the world's leading exporter of LPG. We believe this change has created a fundamental shift in our business and with the remaining 18 vessels in our VLGC newbuilding program and we are well positioned to take advantage of this significant opportunity."

First Quarter 2015 Results Summary

Revenues of $15.9 million for the three months ended June 30, 2014 represent charter hire and voyage charters earned for our three VLGC vessels and our pressurized 5,000 cbm vessel. Revenues from the Captain John NP, which operated in the spot market, amounted to $8.3 million, or a time charter equivalent ("TCE)" rate of $64,340, for the three months ended June 30, 2014. Revenues from time charter hire earned for our two VLGC vessels and the Grendon amounted to $7.6 million, of which $3.2 million represented profit sharing. The Grendon, which ended its time charter at the end of May 2014, had $0.6 million of revenues and 60 operating days for the three months ended June 30, 2014.

Voyage expenses were approximately $2.8 million during the three months ended June 30, 2014 and mainly related to bunkers of $2.1 million, port charges of $0.2 million, brokers' commissions of $0.2 million, security costs of $0.2 million, and other voyage expenses of $0.1 million.

Vessel operating expenses are influenced by the age and size of the vessel, the condition of the vessel and other factors, as discussed above. Vessel operating expenses were approximately $3.5 million during the three months ended June 30, 2014, or $9,569 per vessel per calendar day, which is calculated by dividing vessel operating expenses by calendar days for the relevant time period. This included approximately $0.4 million relating to training of additional crew on our operating VLGC fleet in anticipation of newbuilding deliveries. The Grendon, which ended its time charter at the end of May 2014, had $0.6 million of vessel operating expenses and 60 operating days for the three months ended June 30, 2014.

Management fees expensed for the three months ended June 30, 2014 represent fees charged by our vessel manager, Dorian (Hellas), S.A. ("Dorian Hellas"), a related party, amounting to approximately $1.1 million, representing $93,750 per vessel per month in accordance with our management agreement entered into with Dorian (Hellas). The management fees are charged on a monthly basis per vessel and the total fees are affected by the number of vessels in our fleet.

Depreciation and amortization was approximately $2.5 million for the three months ended June 30, 2014 and mainly relates to depreciation expense for our operating vessels.

General and administrative expenses were approximately $0.8 million for the three months ended June 30, 2014 and represent expenses not covered under our management agreement with Dorian (Hellas) including expenses related to audit and accounting fees, professional and legal fees and investor relations.

Interest and finance costs amounted to approximately $0.2 million for the three months ended June 30, 2014. The interest and finance costs consisted of interest incurred on our long-term debt of $0.6 million, and amortization of financing costs of $0.3 million, less capitalized interest of $0.7 million. The average indebtedness during the three months ended June 30, 2014 was $128.1 million and the outstanding balance of our long-term debt as of June 30, 2014 was $127.4 million.

Loss on derivatives—net, amounted to approximately $1.4 million for three months ended June 30, 2014. The net loss on derivatives was primarily comprised of a realized loss of $1.4 million relating to interest rate swaps which convert the Company's debt from a floating to a fixed rate.