Dorian LPG announces Q1 revenue of 111.6 million
Dorian LPG Ltd. (Dorian LPG), a leading owner and operator of modern very large gas carriers ("VLGCs") reported its financial results for the three months ended June 30, 2023. Revenues of the Company in the first quarter of 2023 reached $111.6 million, an increase of $34.8 million, or 45.2%, from $76.8 million for the three months ended June 30, 2022 primarily due to an increase in average TCE rates, fleet utilization, and fleet size.
Net income amounted to $51.7 million, or $1.28 per diluted share, for the three months ended June 30, 2023, compared to $24.8 million, or $0.62 per diluted share, for the three months ended June 30, 2022.
Adjusted net income amounted to $48.9 million, or $1.21 per diluted share, for the three months ended June 30, 2023, compared to adjusted net income of $22.4 million, or $0.56 per diluted share, for the three months ended June 30, 2022. Adjusted net income for the three months ended June 30, 2023 is calculated by adjusting net income for the same period to exclude an unrealized gain on derivative instruments of $2.9 million. Please refer to the reconciliation of net income to adjusted net income, which appears later in this press release.
The $26.5 million increase in adjusted net income for the three months ended June 30, 2023, compared to the three months ended June 30, 2022, is primarily attributable to increases of $34.8 million in revenues and $1.3 million in interest income; a $1.9 million favorable change in realized gain/(loss) on derivatives; and decreases of $0.5 million in voyage expenses and $0.2 million in general and administrative expenses; partially offset by increases of $5.1 million in charter hire expenses, $2.7 million in vessel operating expenses, $2.4 million in interest and finance costs, and $0.9 million in depreciation and amortization; and a reduction of $0.9 million in other gains, net.
The TCE rate per operating day for Dorian LPG's fleet was $51,156 for the three months ended June 30, 2023, a 29.2% increase from $39,608 for the same period in the prior year, driven by higher spot rates and reduced bunker prices. Please see footnote 7 to the table in "Financial Information" below for information related to how we calculate TCE. Total fleet utilization (including the utilization of our vessels deployed in the Helios Pool) increased from 95.9% during the three months ended June 30, 2022 to 98.0% during the three months ended June 30, 2023.
Vessel operating expenses per day increased to $10,383 for the three months ended June 30, 2023 compared to $9,378 in the same period in the prior year.
Charter Hire Expenses
Charter hire expenses for the vessels chartered in from third parties were $10.5 million and $5.4 million for the three months ended June 30, 2023 and 2022, respectively. The increase of $5.1 million, or 95.2%, was mainly caused by an increase in the number of chartered-in days from 182 for the three months ended June 30, 2022 to 364 for the three months ended June 30, 2023, partially offset by a slight decrease in the average cost per day.
Vessel Operating Expenses
Vessel operating expenses were $19.8 million during the three months ended June 30, 2023, or $10,383 per vessel per calendar day, which is calculated by dividing vessel operating expenses by calendar days for the relevant time-period for the technically-managed vessels that were in our fleet. The increase of $2.7 million, or 16.3% from $17.1 million for the three months ended June 30, 2022 was partially due an increase in operating expenses per vessel per calendar day along with an increase of calendar days for our fleet from 1,820 during the three months ended June 30, 2022 to 1,911 during the three months ended June 30, 2023. The increase in calendar days resulted from the delivery of our dual-fuel VLGC Captain Markos in March 2023. The increase of $1,005 per vessel per calendar day, from $9,378 for the three months ended June 30, 2022 to $10,383 per vessel per calendar day for the three months ended June 30, 2023, was primarily the result of increases of $634 per vessel per calendar day for spares and stores and $369 per vessel per calendar day for repairs and maintenance. Both cost categories were driven by non-capitalizable drydock-related operating expenses totaling $274 per vessel per calendar day.