Dorian LPG Ltd. · NYSE:LPG
Dorian LPG — Investor Presentation (December 2014)
22 slides from Dorian LPG's investor presentation, December 2014
Slide 1: Investor Deck Report
Private and Confidential Presentation2 Agenda Page Investor Deck Report December, 2014 [CLIENT NAME]
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 such as
Slide 3: Overview: Investment Highlights
Overview: Largest ECO VLGC fleet, VLGCs Investment Highlights represent critical link in the LPG supply chain 3 Modern VLGCs, 2 ECO VLGCs, VLGC Vessel Count 1 pressurized LPG carrier Fleet 17 ECO VLGCs (Delivering Q1 2015 – Q1 2016) +2 22 20 Fully Integrated, In-house +15 Management Commercial & Tec
Slide 4: Key Investment Highlights
Key Investment Highlights 1 US shale revolution has created a fundamental shift in trade flows 2 Rapid LPG growth creating tight supply-demand dynamics 3 VLGCs are a critical link in the global LPG supply chain 4 Significant built-in growth with the youngest and largest ECO VLGC fleet 5 Integrated t
Slide 5: The Evolution of Dorian LPG
The Evolution of Dorian LPG Overview Timeline Significant market presence with 22 Modern VLGCs ! Dorian (Hellas), S.A. of Greece was established in 1973, and targeting further consolidation representing the shipping interests of principals with Sep. 2014: Delivery more than a century of shipping exp
Slide 6: LPG VLGCs
LPG VLGCs U.S. LPG exports have created secular supply dynamics - Improves By-product of centered around two long haul local air natural gas and oil production seaborne trade routes quality The largest LPG carriers are best suited for long haul trades 20% less CO2 Competitive than heating Petchem oi
Slide 7: VLGCs are a Critical Link in the Global Supply Chain
VLGCs are a Critical Link in the Global Supply Chain Production Shipping End Use LPG (Propane and Butane) is a by-product of VLGCs are the most cost effective means Broad range of end uses for LPG oil and gas of long haul LPG transportation Gas production (~60%) Cooking / Retail market Heating 60% A
Slide 8: VLGC Day Rates at Healthy Levels
VLGC Day Rates at Healthy Levels Baltic VLGC Rate: Key Drivers of Rate Strength 160,000 VLGC Spot TCE " Increased YOY LPG production and 140,000 favorable U.S. pricing vs. Middle 6-Month Trailing Ave. TCE East pricing Dayrate in USD/day 120,000 3-Year Trailing Ave. TCE 100,000 " Rapid increase in VL
Slide 9: US Supply Growth Making LPG Increasingly Competitive
US Supply Growth Making LPG Increasingly Competitive US LPG Export Terminal Capacity VLGC Equivalent Liftings per Month 80 mm t/y VLGC lifting equivalent, per month Enterprise – Houston* 30 60 Targa - Galena Park* P66 – Freeport* Sunoco – Marcus Hook* 20 40 Sunoco – Nederland* Occidental – Ingleside
Slide 10: US LPG Supply Surging with flat domestic demand
US LPG Supply Surging with flat domestic demand Asian Demand growing (mm Tonnes) " US to become the worlds single largest LPG exporting nation " Competitive Pricing: " linked to NGL supply demand dynamics not oil " Asian LPG demand could absorb excess US supply Source: IHS, China, TPH 10
Slide 11: Surge in Chinese PDH Can be Supported by US Exports
Surge in Chinese PDH Can be Supported by US Exports PDH Margins - Historical Propane Feedstock Required Margin % VLGC New Cumulative Chinese PDH Propane FeedstockPropylene Capacity (000 tonnes) PDH Margin - US Propane PDH Margin - Global Propane Equivalents New Cumulative Chinese PDH Propylene 60 30
Slide 12: Fleet Built at World Class Korean Shipyards
Fleet Built at World Class Korean Shipyards VLGC Newbuild Deliveries by Shipyard 2006-2016 13% 60% 13% HHI is the most active and experienced yard in the design and construction 7% of gas carriers * 7% " LPG vessels are highly engineered, and exacting technical specifications determine commercial ac
Slide 13: Major Oil Companies Require Experienced Operators
Major Oil Companies Require Experienced Operators " Integrated, LPG Company with all Commercial/ Technical services in-house. Meets requirements of the most demanding Oil Majors " Dedicated, Independent department on HSSEQ (Health, Safety, Security, Environment and Quality) " Doubling up crews on VL
Slide 14: Dorian LPG Fleet Overview
Dorian LPG Fleet Overview Overview of Chartering Strategy Overview of Vessel Employment 2014 2015 2016 " 4 R Customers and Sister Charter Shareholders: Current fleet: Shipyard Vessels expiration 1H’14 2H’14 1H’15 2H’15 1H’16 2H’16 Captain Nicholas ML A - Statoil Spot Market " Return on capital: mix
Slide 15: Fleet Designed to Meet Tomorrow's Regulations
Fleet Designed to Meet Tomorrow’s Regulations Outside an ECA Inside an ECA 0.10% m/m on and 0.50% m/m on and after 1 January after 1 January 2020 2015 Dorian LPG will have the youngest and most modern fleet of ECO VLGCs 3 17 2 Existing Scrubber Ready Scrubber -Already Declared ECA: Emission Control
Slide 16: ECO-Vessels Represent Significant Additional Earnings Potential
ECO-Vessels Represent Significant Additional Earnings Potential Scrubber / Scrubber Ready Fuel Oil Consumption Analysis Low Friction, Self Polishing Paint Dorian ME-G type NB (ECO) Traditional VLGC MAN B&W’s New G-Type Engine 55 Optimized Hull Design " Electronic Engine Control -17% 50 -17% " De-rat
Slide 17: Recent Strategic Business Development Initiatives
Recent Strategic Business Development Initiatives ! On July 31, 2014, Dorian LPG announced a heads of agreement in principle with Phoenix Tankers Ltd., one of the foremost VLGC operations in Asia, to form a new VLGC pool which should: " Expand the Company’s global presence and strengthen its positio
Slide 18: Multiple Pillars for Creating Shareholder Value
Multiple Pillars for Creating Shareholder Value Fleet of 22 VLGCs with 19 ECO newbuilds contracted for delivery 2014–16 Expect to have opportunities to increase exposure through: pooling arrangements, further vessel acquisitions and strategic partnerships with major oil companies and traders Time ch
Slide 19: Key Investment Highlights
Key Investment Highlights 1 US shale revolution has created a fundamental shift in trade flows 2 Rapid LPG growth creating tight supply-demand dynamics 3 VLGCs are a critical link in the global LPG supply chain 4 Significant built-in growth with the youngest and largest ECO VLGC fleet 5 Integrated t
Slide 20: Statement of Operations
Statement of Operations (in USD) Statement of Operations Six Months Ended Nine Months Ended September 30, 2014 March 31, 2014 (Unaudited) (Audited) Revenues $ 36,212,051 $ 29,633,700 Voyage expenses 7,143,558 6,670,971 Vessel operating expenses 8,670,968 8,394,959 Management fees – related party 1,1
Slide 21: Balance Sheet and Cash Flows
Balance Sheet and Cash Flows (in USD) Balance Sheet September 30, 2014 March 31, 2014 Unaudited) (Audited) Cash and cash equivalents $ 283,013,780 $ 279,131,795 Restricted cash, current — 30,948,702 Restricted cash, non-current 4,510,000 4,500,000 Total assets 1,000,601,014 840,245,766 Current porti
Slide 22: Investor Deck Report www.dorianlpg.com
Investor Deck Report www.dorianlpg.com