Dorian LPG, a US-listed owner and operator of 25 VLGCs, has revealed that its revenue took a hit in the last business quarter.
Preliminary estimates of the company’s time-charter equivalent revenue suggest they will come in at between $80.7m and $82.7m in three months ending 30 September, Dorian LPG said on Thursday.
That compares with $114.4m in revenue posted by the company in the previous quarter that ended on 30 June.
Dorian LPG, which will release full earnings on 31 October, did not provide any comment on its guidance.
However, TradeWinds has already reported that VLGC spot rates have fallen sharply recently, on the back of extraordinarily high terminal fees.
According to Dorian LPG calculations earlier this year, spot terminal fees along the US Gulf coast stood at $104 per tonne in July, up from $68 in July and from $33 a year ago.
If the revenue projections are confirmed in the company’s final earnings release next week, they will mark the company’s lowest quarterly revenue in two years.
Nevertheless, John Hadjipateras-led Dorian LPG announced it will maintain its dividend steady at $42.8m or $1 per share.
Despite the fact that the company is describing these payments as “irregular”, it has distributed $1 per share to shareholders in 15 out of the last 16 business quarters.
In the only quarter it diverted from this policy it paid even more, to the tune of $2.5 per share.
Dorian LPG’s latest guidance for vessel operating expenses and charter hire expenses came roughly in line with past quarters, at between $8.9m and $10.9m and between $18.5m and $20.5m, respectively.
Guidance on “stock-based compensation and certain cash bonuses” came up much above previous quarters, however, at between $9.9m and $10.3m.
