Dorian LPG Ltd. · NYSE:LPG
Dorian LPG — IHS Singapore (June 2016)
15 slides from Dorian LPG's conference presentation, June 2016
Slide 1: IHS Singapore
IHS Singapore June 2016 Alex Hadjipateras
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This Presentation contains certain forward-looking statements relating to the business, future financial performance and results of the Company and/or the industry in which it operates. In particular, this Presentation contains forward-looking statements related
Slide 3: The Evolution of Dorian LPG
The Evolution of Dorian LPG Overview Timeline 22 Modern VLGCs and targeting further consolidation London, UK 19 VLGC NBs Athens, Greece Delivered to date. Aug 2015: Stamford, USA Board Authorizes stock Singapore March 2015: buyback of up to Completion of debt $100MM financing for NBs July 2014: Deli
Slide 4: Fleet Expansion 2014-2016
Fleet Expansion 2014- 2016 4
Slide 5: Finding the Crew
Finding the Crew • New hires were already gas-experienced personnel - No conversion of tanker officers • Robust, World Class Supernumerary program • Instilling the Dorian culture • Focus on early Familiarization. • Creation of online training platform – “DOTS” 5
Slide 6: Building an integrated platform: Dorianization of Seagoing Personnel
Building an integrated platform: Dorianization of Seagoing Personnel Dorian Training System (DOTS) Remote Web Based • Customized system developed to our needs • Scalable for the future • Dynamic / Rich Interaction – Brings to life unique parts of our safety culture 6
Slide 7: Building the Vessels
Building the Vessels • Parallel track teams in Hyundai, DSME and Hyundai Samho with Single Point Project Manager • Similar Systems / manufactures across all vessels • Upgraded specifications based on previous experience with earlier generation vessels (2006-8) • Remote monitoring solution for Engine
Slide 8: LPG Market Update
LPG Market Update 8
Slide 9: Market Overview
Market Overview Global Supply Volumes 100% 90% 80% 42 48 44 51 70% MidEast 60% USA Latin America 50% Med 15 19 25 30 W AF 40% N. Sea 30% 6 5 4 SE Asia 8 4 11 20% 10 5 8 4 4 3 10% 12 11 10 10 0% 3 3 2 2 2013 2014 2015 YTD 2016 - IHS Waterborne LPG 9
Slide 10: U.S Exports
U.S Exports 2016 Total LPG Exports 2.5 M (MT/Month) • Oil has recovered of lows and 2.0 M • U.S. rig Count increased for the 1.5 M first time since August 2015 in 1.0 M June .5 M .0 M Jan Feb Mar Apr May Propane (C3) Butane (C4) 2016 U.S Exports of Propane by 2016 U.S. Exports of Butane by 1.4 M Ter
Slide 11: U.S. Exports by Destination
U.S. Exports by Destination US LPG exports have increased 30 U.S. Exports by Destination (VLGCS) 25 over 3.23 million tons over 25 same period 2015 (141% 20 20 YTD).*(Waterborne) 15 15 15 13 Vessel Utilization still high >90% 10 5 0 1/1/2016 2/1/2016 3/1/2016 4/1/2016 5/1/2016 1/1/2016 2/1/2016 3/1/
Slide 12: China and India
China and India Indian LPG Consumption • Growing demand fundamentals 30 M 25 M • Year of the LPG Consumer in India 20 M 21.0 M 24.0 M 15 M 18.7 M • PDH has proved to be a Robust 10 M Outlet ! 5M 0M 2015 2016E 2017E 1.4 M 2016 China LPG Imports 14 M India LPG Import Forecast 1.2 M 12 M 1.0 M 12.5 M 1
Slide 13: Panama Canal
Panama Canal Proposed LPG Toll Structure Bands in m3 Laden Ballast First 5,000 $5.50 $4.40 Next 20,000 $2.35 $1.88 Next 30,000 $2.30 $1.84 13 - Panama Canal Authority Rest $1.80 $1.44
Slide 14: Concluding Remarks
Concluding Remarks • We addressed the risks of a rapid expansion from 3 to 22 VLGCS in an 18 month period through engaging crew early and leveraging IT to develop custom applications • We managed the newbuilding risk by having an integrated technical and commercial approach to newbuilding design and
Slide 15: THANK YOU!
THANK YOU! 15