US owner and operator of modern very large gas carriers (VLGCs), Dorian LPG, has entered a contract for three additional exhaust gas cleaning systems, increasing its total scrubbers under contract to ten.
All scrubbers will use hybrid technology.
Announcing the company’s financial results for the three months ending on 31 December 2018, Dorian chairman, president and CEO John Hadjipateras said: “Looking ahead, we are optimistic about US export capacity and demand growth in Asia.
“While the debate rages over IMO 2020, we expect to have twelve of our 22 ships fitted with exhaust gas cleaning systems.
“We believe this will enhance the competitive advantage we have as the owners and operators of the most modern ECO fleet amongst our peers.”
In August, Dorian signed a memorandum of understanding with Hyundai Global Service to conduct studies on ways to upgrade the main engines of up to ten of VLGCs to dual-fuel technology. Studies involved the using LPG as fuel in anticipation of environmental regulations mandating a reduction in sulphur emissions.
For the third quarter, the company’s revenues increased from $44.5m in the corresponding period of the previous year to $55.1m in the quarter under review.
The daily time charter equivalent (TCE) rate for the fleet was $30,108 for the three months ending on 31 December 2018, compared to $22,833 for the same period in 2017.
However, the company incurred a net loss of $6.2m when compared to the net income of $1.7m for the same period of 2017.
Adjusted EBITDA for the three months ended 31 December 2018 was $27.2m.
Hadjipateras said: “The average Baltic rate in the quarter was $42.389 per metric tonne compared to $40.115 per metric tonne in the July to September quarter. In October, the Baltic peaked at a little over $48 per metric tonne.
“The wild movements in oil prices impacted trade in LPG. The Baltic has since dropped to nearly $25 per metric tonne as a result of a contraction from the record-breaking volumes shipped in the July to September quarter.”
Dorian has offices in Stamford, Connecticut, US; London, UK; Copenhagen, Denmark; and Athens, Greece.