Dorian LPG Ltd. (NYSE:LPG) Q2 2020 Earnings Conference Call Transcript

Oct 31, 2019 • 10:00 am ET

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Dorian LPG Ltd. (NYSE:LPG) Q2 2020 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Dorian LPG Second Quarter 2020 Earnings Conference Call. [Operator Instructions] Additionally, a live audio webcast of today's conference call is available on Dorian LPG's website, which is www.dorianlpg.com.

I would now like to turn the conference over to Ted Young, Chief Financial Officer. Thank you. Mr. Young, please go ahead.

Executive
Theodore B. Young

Thank you, Stacey. Good morning, everyone, and thank you all for joining us for our second quarter 2020 results conference call. On the call today are John Hadjipateras, Chairman, President and CEO of Dorian LPG Limited; and John Lycouris, Chief Executive Officer of Dorian LPG USA.

As a reminder, this conference call webcast and a replay of this call will be available through November 7, 2019. Many of our remarks today contain forward-looking statements based on current expectations. These statements may often be identified with words such as expect, anticipate, believe or similar indications of future expectations. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct.

These forward-looking statements are subject to known and unknown risks and uncertainties and other factors as well as general economic conditions. Should one or more of these risks or uncertainties materialize or should underlying assumptions or estimates prove to be incorrect, actual results may vary materially from those we express today.

Additionally, let me refer you to our unaudited results for the period ended September 30, 2019, that were filed this morning on Form 10-Q. In addition, please refer to our previous filings on Form 10-K and Form 10-Q, where you'll find risk factors that could cause actual results to differ materially from these forward-looking statements.

With that, I'll turn over the call to John Hadjipateras.

Executive
John Hadjipateras

Thank you, Ted. Welcome to our second quarter 2020 earnings call. I am in Singapore, where I attended the Global Maritime Forum and where much of the discussion concerned climate change. Although the long-term goal of the industry is zero carbon emission, in the meantime LPG provides a significantly better alternative to fuels currently being consumed. John and Ted are in Connecticut and after I give you a brief report, Ted will follow with a discussion of our quarterly numbers and John, of the market and our fleet status. We will complete the call with questions.

On this date last year, the Baltic rate it was $41 a ton and a year before that it was $30. Today, the Baltic is above $70. The market appears to have reached a degree of stability having traded above $50 a ton Since April of this year. And just this quarter, the Baltic struck a highest level, since 2015 at $81 a couple of weeks ago. This quarter's profitable results reflect the health of the current freight market. Our fleet is well-positioned to capitalize on the potential price differential between low-sulfur and high-sulfur fuel oil. Two of our ships recently came out of dry-dock, bringing our scrubber-equipped fleet with four ships on the water