Despite moving forward with scrubber installations, Dorian LPG still has an eye on LPG as fuel — it's just too expensive right now.
The New York-listed announced scrubber installations on three more ships Monday, bringing its total to 10, then on its earnings conference call said LPG conversion could be available as soon as next year.
"We would like to think that LPG will be competitive, so as to gain a bigger market share to penetrate more markets," said chief executive John Hadjipateras. "At the moment, from what we know, we cannot justify making the investment."
Hadjipateras and Dorian LPG (USA) chief executive John Lycouris said the cost for LPG as fuel conversion was two and a half to three times as high as installing a scrubber.
Further, they said, the fuel spread appeared to be around $200 per tonne.
The company expects to recoup its scrubber spend within two years.
Both scrubber installation and using LPG to fuel ships would comply with the IMO's 2020 sulphur emissions cap.
China's Tianjin Southwest Maritime opted to outfit its VLGC newbuildings with LPG-burning engines, while BW LPG chose to retrofit four ships.
Hadjipateras said there is the possibility the price for LPG conversion will come down once the fuel becomes more popular.
He said Dorian first installed scrubbers in 2015.
"I think that the price is now 50% less than what we paid," Hadjipateras said.
Dorian reported a loss of $6.2m in the last three months of 2018, the third quarter of its fiscal year, which they adjusted to a $500,000 profit.
The adjusted earnings per share came out to $0.01, three cents better than analyst expectations.
