DORIAN LPG LTD., 10-Q filed on 8/4/2020
Quarterly Report
v3.20.2
Document and Entity Information - shares
3 Months Ended
Jun. 30, 2020
Jul. 31, 2020
Document and Entity Information    
Entity Registrant Name DORIAN LPG LTD.  
Entity Central Index Key 0001596993  
Document Type 10-Q  
Document Period End Date Jun. 30, 2020  
Document Quarterly Report true  
Document Transition Report false  
Entity File Number 001-36437  
Entity Incorporation, State or Country Code 1T  
Entity Tax Identification Number 66-0818228  
Entity Address, Address Line One 27 Signal Road  
Entity Address, City or Town Stamford  
Entity Address, State or Province CT  
Entity Address, Postal Zip Code 06902  
City Area Code 203  
Local Phone Number 674-9900  
Title of 12(b) Security Common stock, par value $0.01 per share  
Trading Symbol LPG  
Security Exchange Name NYSE  
Amendment Flag false  
Current Fiscal Year End Date --03-31  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   51,030,487
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
v3.20.2
Condensed Consolidated Balance Sheets - USD ($)
Jun. 30, 2020
Mar. 31, 2020
Current assets    
Cash and cash equivalents $ 142,933,974 $ 48,389,688
Restricted cash - current 3,060,568 3,370,178
Short-term investments 14,980,530 14,923,140
Trade receivables, net and accrued revenues 201,126 820,846
Due from related parties 48,212,850 66,847,701
Inventories 2,142,284 1,996,203
Prepaid expenses and other current assets 4,530,590 3,266,999
Total current assets 216,061,922 139,614,755
Fixed assets    
Vessels, net 1,424,522,713 1,437,658,833
Other fixed assets, net 156,313 185,613
Total fixed assets 1,424,679,026 1,437,844,446
Other non-current assets    
Deferred charges, net 7,978,878 7,336,726
Due from related parties-non-current 23,100,000 23,100,000
Restricted cash - non-current 75,035 35,629,261
Operating lease right-of-use assets 24,602,683 26,861,551
Other non-current assets 438,843 1,573,104
Total assets 1,696,936,387 1,671,959,843
Current liabilities    
Trade accounts payable 11,627,716 13,552,796
Accrued expenses 6,241,676 4,080,952
Due to related parties 2,069,241 436,850
Deferred income 1,468,205 2,068,205
Derivative instruments 2,742,980 2,605,442
Current portion of long-term operating lease liabilities 9,307,708 9,212,589
Current portion of long-term debt 53,267,783 53,056,125
Total current liabilities 86,725,309 85,012,959
Long-term liabilities    
Long-term debt-net of current portion and deferred financing fees 594,246,205 581,919,094
Long-term operating lease liabilities 15,297,749 17,651,939
Derivative instruments 9,511,097 9,152,829
Other long-term liabilities 1,203,136 1,170,824
Total long-term liabilities 620,258,187 609,894,686
Total liabilities 706,983,496 694,907,645
Commitments and contingencies
Shareholders' equity    
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued nor outstanding
Common stock, $0.01 par value, 450,000,000 shares authorized, 59,434,919 and 59,083,290 shares issued, 51,030,637 and 50,827,952 shares outstanding (net of treasury stock), as of June 30, 2020 and March 31, 2020, respectively 594,349 590,833
Additional paid-in-capital 868,736,757 866,809,371
Treasury stock, at cost; 8,404,282 and 8,255,338 shares as of June 30, 2020 and March 31, 2020, respectively (88,382,079) (87,183,865)
Retained earnings 209,003,864 196,835,859
Total shareholders' equity 989,952,891 977,052,198
Total liabilities and shareholders' equity $ 1,696,936,387 $ 1,671,959,843
v3.20.2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2020
Mar. 31, 2020
Condensed Consolidated Balance Sheets    
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized 50,000,000 50,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized 450,000,000 450,000,000
Common stock, shares issued 59,434,919 59,083,290
Common stock, shares outstanding (net of treasury stock) 51,030,637 50,827,952
Treasury stock, shares at cost 8,404,282 8,255,338
v3.20.2
Condensed Consolidated Statements of Operations - USD ($)
3 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Revenues.    
Revenues $ 73,165,324 $ 61,165,546
Expenses    
Voyage expenses 815,195 339,114
Charter hire expenses 4,715,598 2,055,000
Vessel operating expenses 17,389,363 16,119,953
Depreciation and amortization 16,890,413 16,266,421
General and administrative expenses 11,302,976 6,735,835
Total expenses 51,113,545 41,516,323
Other income-related parties 468,023 623,283
Operating income 22,519,802 20,272,506
Other income/(expenses)    
Interest and finance costs (9,087,236) (9,697,282)
Interest income 124,835 362,036
Unrealized loss on derivatives (495,806) (6,070,789)
Realized gain/(loss) on derivatives (806,229) 1,032,995
Other gain/(loss), net (87,361) 175,593
Total other income/(expenses), net (10,351,797) (14,197,447)
Net income $ 12,168,005 $ 6,075,059
Weighted average shares outstanding Basic (in shares) 50,554,233 54,552,994
Weighted average shares outstanding Diluted (in shares) 50,679,449 54,881,326
Earnings per common share - basic (in dollars per share) $ 0.24 $ 0.11
Earnings per common share - diluted (in dollars per share) $ 0.24 $ 0.11
Net pool revenues - related party    
Revenues.    
Revenues $ 66,929,421 $ 50,092,137
Time charter revenues    
Revenues.    
Revenues 5,086,004 10,982,031
Other revenues, net    
Revenues.    
Revenues $ 1,149,899 $ 91,378
v3.20.2
Condensed Consolidated Statements of Shareholders' Equity - USD ($)
Common stock
Treasury stock
Additional paid-in capital
Retained earnings
Total
Balance at Mar. 31, 2019 $ 588,826 $ (36,484,561) $ 863,583,692 $ 84,994,601 $ 912,682,558
Balance (in shares) at Mar. 31, 2019 58,882,515        
Increase (Decrease) in Shareholders' Equity          
Net income for the period       6,075,059 6,075,059
Restricted share award issuances $ 78   (78)    
Restricted share award issuances (in shares) 7,750        
Stock-based compensation     1,305,827   1,305,827
Purchase of treasury stock   (983,582)     (983,582)
Balance at Jun. 30, 2019 $ 588,904 (37,468,143) 864,889,441 91,069,660 919,079,862
Balance (in shares) at Jun. 30, 2019 58,890,265        
Balance at Mar. 31, 2020 $ 590,833 (87,183,865) 866,809,371 196,835,859 977,052,198
Balance (in shares) at Mar. 31, 2020 59,083,290        
Increase (Decrease) in Shareholders' Equity          
Net income for the period       12,168,005 12,168,005
Restricted share award issuances $ 3,516   (3,516)    
Restricted share award issuances (in shares) 351,629        
Stock-based compensation     1,930,902   1,930,902
Purchase of treasury stock   (1,198,214)     (1,198,214)
Balance at Jun. 30, 2020 $ 594,349 $ (88,382,079) $ 868,736,757 $ 209,003,864 $ 989,952,891
Balance (in shares) at Jun. 30, 2020 59,434,919        
v3.20.2
Condensed Consolidated Statements of Cash Flows - USD ($)
3 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Cash flows from operating activities:    
Net income $ 12,168,005 $ 6,075,059
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 16,890,413 16,266,421
Amortization of operating lease right-of-use asset 2,267,769  
Amortization of financing costs 2,394,510 744,271
Unrealized loss on derivatives 495,806 6,070,789
Stock-based compensation expense 1,930,902 1,305,827
Unrealized foreign currency (gain)/loss, net (89,282) (6,270)
Other non-cash items, net (241,523) (202,681)
Changes in operating assets and liabilities    
Trade receivables, net and accrued revenue 619,720 (272,908)
Prepaid expenses and other current assets (1,263,591) 428,174
Due from related parties 18,634,851 (20,548,112)
Inventories (146,081) (25,916)
Other non-current assets 1,134,261 (383,571)
Operating lease liabilities-current and long-term (2,268,125)  
Trade accounts payable 370,337 800,984
Accrued expenses and other liabilities (26,238) (503,869)
Due to related parties 1,632,391 (478,482)
Payments for drydocking costs (1,537,775) (575,737)
Net cash provided by operating activities 52,966,350 8,693,979
Cash flows from investing activities:    
Vessel-related capital expenditures (3,657,669) (1,446,937)
Payments to acquire other fixed assets   (100,097)
Net cash used in investing activities (3,657,669) (1,547,034)
Cash flows from financing activities:    
Proceeds from long-term debt borrowings 55,378,172  
Repayment of long-term debt borrowings (41,856,308) (15,992,102)
Purchase of treasury stock (1,025,628) (269,388)
Financing costs paid (3,225,105)  
Net cash provided by/(used in) financing activities 9,271,131 (16,261,490)
Effects of exchange rates on cash and cash equivalents 100,638 (7,093)
Net increase/(decrease) in cash, cash equivalents, and restricted cash 58,680,450 (9,121,638)
Cash, cash equivalents, and restricted cash at the beginning of the period 87,389,127 66,472,646
Cash, cash equivalents, and restricted cash at the end of the period $ 146,069,577 $ 57,351,008
v3.20.2
Basis of Presentation and General Information
3 Months Ended
Jun. 30, 2020
Basis of Presentation and General Information  
Basis of Presentation and General Information

1. Basis of Presentation and General Information

Dorian LPG Ltd. (“Dorian”) was incorporated on July 1, 2013 under the laws of the Republic of the Marshall Islands, is headquartered in the United States and is engaged in the transportation of liquefied petroleum gas (“LPG”) worldwide. Specifically, Dorian and its subsidiaries (together “we”, “us”, “our”, or the “Company”) are focused on owning and operating very large gas carriers (“VLGCs”), each with a cargo carrying capacity of greater than 80,000 cbm, in the LPG shipping industry. As of June 30, 2020, our fleet consists of twenty-four VLGCs, including nineteen fuel-efficient 84,000 cbm ECO-design VLGCs (“ECO-VLGCs”), three 82,000 cbm VLGCs and two time chartered-in VLGCs. As of June 30, 2020, ten of our ECO-VLGCs are equipped with exhaust gas cleaning systems (commonly referred to as “scrubbers”) to reduce sulfur emissions. We have commitments related to scrubbers on an additional two of our VLGCs. We provide in-house commercial and technical management services for all of our vessels, including our vessels deployed in the Helios Pool (defined below), which may also receive commercial management services from Phoenix (defined below). Excluding our time chartered-in vessels, we provide in-house technical management services for all of our vessels, including our vessels deployed in the Helios Pool (defined below).

On April 1, 2015, Dorian and Phoenix Tankers Pte. Ltd. (“Phoenix”) began operations of Helios LPG Pool LLC (the “Helios Pool”), which entered into pool participation agreements for the purpose of establishing and operating, as charterer, under variable rate time charters to be entered into with owners or disponent owners of VLGCs, a commercial pool of VLGCs whereby revenues and expenses are shared. Refer to Note 3 below for further description of the Helios Pool.

The unaudited interim condensed consolidated financial statements and related notes have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and related Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In our opinion, all adjustments, consisting of normal recurring items, necessary for a fair presentation of financial position, operating results and cash flows have been included in the unaudited interim condensed consolidated financial statements and related notes. The unaudited interim condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes for the year ended March 31, 2020 included in our Annual Report on Form 10-K filed with the SEC on June 12, 2020.

Our interim results are subject to seasonal and other fluctuations, and the operating results for any quarter are therefore not necessarily indicative of results that may be otherwise expected for the entire year.

Our subsidiaries as of June 30, 2020, which are all wholly-owned and are incorporated in the Republic of the Marshall Islands (unless otherwise noted), are listed below.

Vessel Subsidiaries

    

Type of

    

    

    

 

Subsidiary

vessel

Vessel’s name

Built

CBM(1)

 

CMNL LPG Transport LLC

 

VLGC

 

Captain Markos NL(2)

 

2006

 

82,000

CJNP LPG Transport LLC

 

VLGC

 

Captain John NP(2)

 

2007

 

82,000

CNML LPG Transport LLC

 

VLGC

 

Captain Nicholas ML(2)

 

2008

 

82,000

Comet LPG Transport LLC

VLGC

Comet

2014

84,000

Corsair LPG Transport LLC

VLGC

Corsair(2)

2014

84,000

Corvette LPG Transport LLC

 

VLGC

 

Corvette(2)

 

2015

 

84,000

Dorian Shanghai LPG Transport LLC

VLGC

Cougar

2015

84,000

Concorde LPG Transport LLC

VLGC

Concorde(2)

2015

84,000

Dorian Houston LPG Transport LLC

VLGC

Cobra

2015

84,000

Dorian Sao Paulo LPG Transport LLC

VLGC

Continental

2015

84,000

Dorian Ulsan LPG Transport LLC

VLGC

Constitution

2015

84,000

Dorian Amsterdam LPG Transport LLC

VLGC

Commodore

2015

84,000

Dorian Dubai LPG Transport LLC

VLGC

Cresques(2)

2015

84,000

Constellation LPG Transport LLC

VLGC

Constellation

2015

84,000

Dorian Monaco LPG Transport LLC

VLGC

Cheyenne

2015

84,000

Dorian Barcelona LPG Transport LLC

VLGC

Clermont

2015

84,000

Dorian Geneva LPG Transport LLC

VLGC

Cratis

2015

84,000

Dorian Cape Town LPG Transport LLC

VLGC

Chaparral

2015

84,000

Dorian Tokyo LPG Transport LLC

VLGC

Copernicus

2015

84,000

Commander LPG Transport LLC

VLGC

Commander

2015

84,000

Dorian Explorer LPG Transport LLC

VLGC

Challenger

2015

84,000

 

Dorian Exporter LPG Transport LLC

VLGC

Caravelle

2016

84,000

Management and Other Non-vessel Subsidiaries

 

Subsidiary

 

Dorian LPG Management Corp.

Dorian LPG (USA) LLC (incorporated in USA)

Dorian LPG (UK) Ltd. (incorporated in UK)

Dorian LPG Finance LLC

Occident River Trading Limited (incorporated in UK)

Dorian LPG (DK) ApS (incorporated in Denmark)

Dorian LPG Chartering LLC

Dorian LPG FFAS LLC

(1)CBM: Cubic meters, a standard measure for LPG tanker capacity
(2)Operated pursuant to a bareboat charter agreement. Refer to Note 6 below for further information.

COVID-19

The outbreak of COVID-19, which originated in China in December 2019 and subsequently spread to most developed nations of the world, has resulted in the implementation of numerous actions taken by governments and governmental agencies in an attempt to mitigate the spread of the virus. These measures have resulted in a significant reduction in global economic activity and extreme volatility in the global financial markets. The reduction of economic activity has significantly reduced the global demand for oil, refined petroleum products and LPG. We expect that the impact of the COVID-19 virus and the uncertainty in the supply and demand for fossil fuels, including LPG, will continue to cause volatility in the commodity markets. We could also experience potential additional costs to effect crew changes. Although to date there has not been any significant effect on our operating activities due to COVID-19, other than an approximately 60-day delay associated with the drydocking of one of our vessels in China, the extent to which COVID-19 will impact our results of operation and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including among others, new information which may emerge concerning the severity of the virus and the actions to contain or treat its impact. An estimate of the impact cannot therefore be made at this time.

v3.20.2
Significant Accounting Policies
3 Months Ended
Jun. 30, 2020
Significant Accounting Policies  
Significant Accounting Policies

2. Significant Accounting Policies

The same accounting policies have been followed in these unaudited interim condensed consolidated financial statements as those applied in the preparation of our consolidated audited financial statements for the year ended March 31, 2020 (refer to Note 2 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2020), except as discussed herein.

Accounting Pronouncements Not Yet Adopted

 

In March 2020, the Financial Accounting Standards Board issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”).” ASU 2020-04 provides temporary optional expedients and exceptions to the guidance in U.S. GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. This ASU is effective for adoption at any time between March 12, 2020 and December 31, 2022. We are currently evaluating the impact of this adoption on our condensed consolidated financial statements and related disclosures.

v3.20.2
Transactions with Related Parties
3 Months Ended
Jun. 30, 2020
Transactions with Related Parties  
Transactions with Related Parties

3.  Transactions with Related Parties

Dorian (Hellas), S.A.

Dorian (Hellas) S.A. (“DHSA”) formerly provided technical, crew, commercial management, insurance and accounting services to our vessels and had agreements to outsource certain of these services to Eagle Ocean Transport Inc. (“Eagle Ocean Transport”), which is 100% owned by Mr. John C. Hadjipateras, our Chairman, President and Chief Executive Officer.

Dorian LPG (USA) LLC and its subsidiaries entered into an agreement with DHSA, retroactive to July 2014 and superseding an agreement between Dorian LPG (UK) Ltd. and DHSA, for the provision by Dorian LPG (USA) LLC and its subsidiaries of certain chartering and marine operation services to DHSA, for which income was earned and included in “Other income-related parties” totaling less than $0.1 million for both the three months ended June 30, 2020 and 2019.

As of June 30, 2020, $1.2 million was due from DHSA and included in “Due from related parties” in the unaudited interim condensed consolidated balance sheets included herein. As of March 31, 2020, $1.3 million was due from DHSA and included in “Due from related parties” in the audited consolidated balance sheets.

Helios LPG Pool LLC

On April 1, 2015, Dorian and Phoenix began operations of the Helios Pool, which entered into pool participation agreements for the purpose of establishing and operating, as charterer, under variable rate time charters to be entered into with owners or disponent owners of VLGCs, a commercial pool of VLGCs whereby revenues and expenses are shared. We hold a 50% interest in the Helios Pool as a joint venture with Phoenix and all significant rights and obligations are equally shared by both parties. All profits of the Helios Pool are distributed to the pool participants based on pool points assigned to each vessel as variable charter hire and, as a result, there are no profits available to the equity investors as a share of equity. We have determined that the Helios Pool is a variable interest entity as it does not have sufficient equity at risk. We do not consolidate the Helios Pool because we are not the primary beneficiary and do not have a controlling financial interest. In consideration of Accounting Standards Codification (“ASC”) 810-10-50-4e, the significant factors considered and judgments made in determining that the power to direct the activities of the Helios Pool that most significantly impact the entity’s economic performance are shared, in that all significant performance activities which relate to approval of pool policies and strategies related to pool customers and the marketing of the pool for the procurement of customers for the pool vessels, addition of new pool vessels and the pool cost management, require unanimous board consent from a board consisting of two members from each joint venture investor. Further, in accordance with the guidance in ASC 810-10-25-38D, the Company and Phoenix are not related parties as defined in ASC 850 nor are they de facto agents pursuant to ASC 810-10, the power over the significant activities of the Helios Pool is shared, and no party is the primary beneficiary in the Helios Pool, or has a controlling financial interest. As of June 30, 2020, the Helios Pool operated

thirty-six VLGCs, including twenty-two vessels from our fleet (including two vessel time chartered-in from an unrelated party), four Phoenix vessels, five from other participants, and five time chartered-in vessels.

As of June 30, 2020, we had receivables from the Helios Pool of $68.0 million, including $24.2 million of working capital contributed for the operation of our vessels in the pool (of which $1.1 million is classified as current). As of March 31, 2020, we had net receivables from the Helios Pool of $88.1 million (net of an amount due to Helios Pool of $0.4 million which is reflected under “Due to related Parties”), including $24.2 million of working capital contributed for the operation of our vessels in the pool (of which $1.1 million is classified as current). Our maximum exposure to losses from the pool as of June 30, 2020 is limited to the receivables from the pool. The Helios Pool does not have any third-party debt obligations. The Helios Pool has entered into commercial management agreements with each of Dorian LPG (UK) Ltd. and Phoenix as commercial managers and has appointed both commercial managers as the exclusive commercial managers of pool vessels. Fees for commercial management services provided by Dorian LPG (UK) Ltd. are included in “Other income-related parties” in the unaudited interim condensed consolidated statement of operations included herein and were $0.4 million and $0.6 million for the three months ended June 30, 2020 and 2019, respectively. Additionally, we receive a fixed reimbursement of expenses such as costs for security guards and war risk insurance for vessels operating in high risk areas from the Helios Pool, for which we earned $1.1 million and $0.1 million for the three months ended June 30, 2020, and 2019, respectively, and are included in “Other revenues, net” in the unaudited interim condensed consolidated statements of operations included herein.

Through our vessel owning subsidiaries, we have chartered vessels to the Helios Pool during the three months ended June 30, 2020 and 2019. The time charter revenue from the Helios Pool is variable depending upon the net results of the pool, operating days and pool points for each vessel. The Helios Pool enters into voyage and time charters with external parties and receives freight and related revenue and, where applicable, incurs voyage costs such as bunkers, port costs and commissions. At the end of each month, the Helios Pool calculates net pool revenues using gross revenues, less voyage expenses of all pool vessels, less fixed time charter hire for any chartered-in vessels, less the general and administrative expenses of the pool. Net pool revenues, less any amounts required for working capital of the Helios Pool, are distributed, to the extent they have been collected from third-party customers of the Helios Pool, as variable rate time charter hire for the relevant vessel to participants based on pool points (vessel attributes such as cargo carrying capacity, fuel consumption, and speed are taken into consideration) and number of days the vessel participated in the pool in the period. We recognize net pool revenues on a monthly basis, when each relevant vessel has participated in the pool during the period and the amount of net pool revenues for the month can be estimated reliably. Revenue earned from the Helios Pool is presented in Note 9.

v3.20.2
Deferred Charges, Net
3 Months Ended
Jun. 30, 2020
Deferred Charges, Net.  
Deferred Charges, Net

4. Deferred Charges, Net

The analysis and movement of deferred charges is presented in the table below:

    

Drydocking

 

costs

 

Balance, April 1, 2020

$

7,336,726

Additions

1,086,597

Amortization

(444,445)

Balance, June 30, 2020

 

$

7,978,878

v3.20.2
Vessels, Net
3 Months Ended
Jun. 30, 2020
Vessels, Net  
Vessels, Net

5. Vessels, Net

    

    

Accumulated

    

 

Cost

depreciation

Net book Value

 

Balance, April 1, 2020

$

1,757,285,233

 

$

(319,626,400)

 

$

1,437,658,833

Other additions

3,280,549

3,280,549

Depreciation

(16,416,669)

(16,416,669)

Balance, June 30, 2020

 

$

1,760,565,782

 

$

(336,043,069)

 

$

1,424,522,713

Additions to vessels, net mainly consisted of scrubber purchase and installation costs and other capital improvements for certain of our VLGCs during the three months ended June 30, 2020. Our vessels, with a total carrying value of $1,424.5 million and $1,437.7 million as of June 30, 2020 and March 31, 2020, respectively, are first-priority

mortgaged as collateral for our long-term debt (refer to Note 6 below). No impairment loss was recorded for the periods presented.

v3.20.2
Long-term Debt
3 Months Ended
Jun. 30, 2020
Long-term Debt  
Long-term Debt

6. Long-term Debt

2015 AR Facility

Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2020 for information on our $758 million debt financing facility that we entered into in March 2015 with a group of banks and financial institutions (the “2015 Facility”).

Refinancing of the Commercial Tranche of the 2015 Facility

 

On April 29, 2020, we amended and restated the 2015 Facility (the “2015 AR Facility”), to among other things, refinance the commercial tranche from the 2015 Facility Agreement (the “Original Commercial Tranche”). Pursuant to the 2015 AR Facility, certain new facilities (the “New Facilities”) were made available to us, including (i) a new senior secured term loan facility in an aggregate principal amount of approximately to $155.8 million, a portion of which was used to prepay in full the outstanding principal amount under the Original Commercial Tranche and the balance for general corporate purposes and (ii) a new senior secured revolving credit facility in an aggregate principal amount of up to $25.0 million, which we intend to use for general corporate purposes. The 2015 AR Facility subjects us to substantially similar covenants and restrictions as those imposed pursuant to the 2015 Facility. On July 14, 2020 (with retroactive effect to June 30, 2020), we amended the 2015 AR Facility and received approvals from those lenders constituting the “Required Lenders” under the 2015 AR Facility, as applicable, to modify certain financial and security covenants to reflect the Company’s current financial condition. Most notably, the following changes to financial covenants and security value ratio are now in effect:

Elimination of the interest coverage ratio;
Reduction of minimum shareholders’ equity to $400 million with no upward adjustments;
Reduction of the minimum liquidity covenant from $40 million to $27.5 million;
Reduction of minimum cash balance from $2.2 million to $1.0 million per mortgaged vessel; and
Increase of the security value ratio from 135% to 145%.

 

The advances in connection with New Facilities are to be repaid on the earlier of (i) the fifth (5th) anniversary of the utilization date of the new senior secured term loan facility, described above, and (ii) March 26, 2025. The New Facilities will bear interest at the rate of LIBOR plus a margin of 2.50%. The margin can be decreased by 10 basis points if the Security Leverage Ratio (which is based on our security value ratio for vessels secured under the 2015 AR Facility) is less than .40 or increased by 10 basis points if it is greater than or equal to .60. Pursuant to the terms of the 2015 AR Facility, we have the potential to receive a 10 basis point increase or reduction in the margin applicable to the New Facilities for changes in our Average Efficiency Ratio (which weighs carbon emissions for a voyage against the design deadweight of a vessel and the distance travelled on such voyage). 

Corsair Japanese Financing

Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2020 for information on the refinancing of our 2014-built VLGC, the Corsair, pursuant to a memorandum of agreement and a bareboat charter agreement (the “Corsair Japanese Financing”).

Concorde Japanese Financing

Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2020 for information on the refinancing of our 2015-built VLGC, the Concorde, pursuant to a memorandum of agreement and a bareboat charter agreement (the “Concorde Japanese Financing”).

Corvette Japanese Financing

Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2020 for information on the refinancing of our 2015-built VLGC, the Corvette, pursuant to a memorandum of agreement and a bareboat charter agreement (the “Corvette Japanese Financing”).

CJNP Japanese Financing

Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2020 for information on the refinancing our 2007-built VLGC, the Captain John NP, pursuant to a memorandum of agreement and a bareboat charter agreement (the “CJNP Japanese Financing”). Refer to Note 14 below for information regarding our election to exercise our repurchase option under the CJNP Japanese Financing.

CMNL Japanese Financing

Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2020 for information on the refinancing our 2006-built VLGC, the Captain Markos NL, pursuant to a memorandum of agreement and a bareboat charter agreement (the “CMNL Japanese Financing”).

CNML Japanese Financing

Refer to Note 9 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2020 for information on the refinancing our 2008-built VLGC, the Captain Nicholas ML, pursuant to a memorandum of agreement and a bareboat charter agreement (the “CNML Japanese Financing”).

Cresques Japanese Financing and Prepayment of the Relevant Tranches of the 2015 Facility

On April 21, 2020, we prepaid $28.5 million of the 2015 Facility’s then outstanding principal using cash on hand prior to the closing of the Cresques Japanese Financing (defined below). On April 23, 2020, we refinanced a 2015-built VLGC, the Cresques, pursuant to a memorandum of agreement and a bareboat charter agreement (“Cresques Japanese Financing”). In connection therewith, we transferred the Cresques to the buyer for $71.5 million and, as part of the agreement, Dorian Dubai LPG Transport LLC, our wholly-owned subsidiary, bareboat chartered the vessel back for a period of 12 years, with purchase options from the end of year 3 onwards through a mandatory buyout by 2032. We continue to technically manage, commercially charter, and operate the Cresques. We received $52.5 million in cash as part of the transaction with $19.0 million to be retained by the buyer as a deposit (the “Cresques Deposit”), which can be used by us towards the repurchase of the vessel either pursuant to an early buyout option or at the end of the 12-year bareboat charter term. This transaction is treated as a financing transaction and the Cresques continues to be recorded as an asset on our balance sheet. This debt financing has a floating interest rate of one-month LIBOR plus a margin of 2.5%, monthly broker commission fees of 1.25% over the 12-year term on interest and principal payments made, broker commission fees of 0.5% payable on the remaining debt outstanding at the time of the repurchase of the Cresques, and a monthly fixed straight-line principal obligation of approximately $0.3 million over the 12-year term with a balloon payment of approximately $11.5 million.

Debt Obligations

The table below presents our debt obligations:

    

June 30, 2020

    

March 31, 2020

 

2015 Facility/2015 AR Facility

Commercial Financing

$

155,655,698

$

163,385,998

KEXIM Direct Financing

100,104,372

110,716,127

KEXIM Guaranteed

104,512,865

115,385,072

K-sure Insured

51,673,559

57,098,924

Total 2015 Facility/2015 AR Facility

$

411,946,494

$

446,586,121

Japanese Financings

Corsair Japanese Financing

$

43,333,333

$

44,145,833

Concorde Japanese Financing

47,923,077

48,730,769

Corvette Japanese Financing

48,461,538

49,269,231

CJNP Japanese Financing

18,696,875

19,058,750

CMNL Japanese Financing

17,734,078

18,076,488

CNML Japanese Financing

19,909,673

20,261,012

Cresques Japanese Financing

51,645,000

Total Japanese Financings

$

247,703,574

$

199,542,083

Total debt obligations

$

659,650,068

$

646,128,204

Less: deferred financing fees

12,136,080

11,152,985

Debt obligations—net of deferred financing fees

$

647,513,988

$

634,975,219

Presented as follows:

Current portion of long-term debt

 

$

53,267,783

$

53,056,125

Long-term debt—net of current portion and deferred financing fees

 

594,246,205

581,919,094

Total

 

$

647,513,988

$

634,975,219

Deferred Financing Fees

The analysis and movement of deferred financing fees is presented in the table below:

    

Financing

costs

Balance, April 1, 2020

$

11,152,985

Additions

3,377,605

Amortization

(2,394,510)

Balance, June 30, 2020

 

$

12,136,080

v3.20.2
Leases
3 Months Ended
Jun. 30, 2020
Leases  
Leases

7. Leases

Time charter-in contracts

During the three months ended June 30, 2020, we time chartered-in a VLGC with a duration 12 months with no option periods. Therefore, this operating lease was excluded from operating lease right-of-use asset and lease liability recognition on our consolidated balance sheets. As of June 30, 2020, right-of-use assets and lease liabilities of $23.7 million were recognized on our balance sheets related to one VLGC that we had previously time chartered-in for a period of greater than 12 months. Our time chartered-in VLGCs were deployed in the Helios Pool and earned net pool revenues of $6.9 million and $1.3 million for the three months ended June 30, 2020 and 2019, respectively.

Charter hire expenses for the VLGCs time chartered in were as follows:

Three months ended

June 30, 2020

June 30, 2019

Charter hire expenses

$

4,715,598

$

2,055,000

Office leases

We currently have operating leases for our offices in Stamford, Connecticut, USA; London, United Kingdom; Copenhagen, Denmark; and Athens, Greece, which we determined to be operating leases and record the lease expense as part of general and administrative expenses in our consolidated statements of operations. During the three months ended June 30, 2020, we did not enter into any new office lease contracts.

Operating lease rent expense related to our office leases was as follows:

Three months ended

June 30, 2020

June 30, 2019

Operating lease rent expense

$

118,259

$

122,352

For our office leases and time charter-in arrangement, the discount rate used ranged from 3.82% to 5.53%. The weighted average discount rate used to calculate the lease liability was 3.88%. The weighted average remaining lease term on our office leases and time chartered-in vessels as of June 30, 2020 is 30.9 months.

Our operating lease right-of-use asset and lease liabilities as of June 30, 2020 were as follows:

Description

Location on Balance Sheet

June 30, 2020

Assets:

Non-current

Office leases

Operating lease right-of-use assets

$

915,257

Time charter-in VLGCs

Operating lease right-of-use assets

$

23,687,426

Liabilities:

Current

Office Leases

Current portion of long-term operating leases

$

409,507

Time charter-in VLGCs

Current portion of long-term operating leases

$

8,898,201

Long-term

Office Leases

Long-term operating leases

$

508,524

Time charter-in VLGCs

Long-term operating leases

$

14,789,225

Maturities of operating lease liabilities as of June 30, 2020 were as follows:

Remainder of FY 2021

$

7,561,882

FY 2022

10,091,911

FY 2023

8,215,431

Total undiscounted lease payments

25,869,224

Less: imputed interest

(1,263,767)

Carrying value of lease liabilities

$

24,605,457

v3.20.2
Stock Repurchase Program
3 Months Ended
Jun. 30, 2020
Stock Repurchase Program  
Stock Repurchase Program

8. Stock Repurchase Program

On August 5, 2019, our Board of Directors authorized the repurchase of up to $50 million of shares of our common stock through the period ended December 31, 2020 (the “Common Share Repurchase Program”). On February 3, 2020, our Board of Directors authorized an increase to our Common Share Repurchase Program to repurchase up to an additional $50 million of shares of our common stock. The amount and timing of share repurchases are subject to capital availability and our determination that share repurchases are in the best interest of our shareholders. As of June 30, 2020, we repurchased a total of 4.4 million shares of our common stock for approximately $49.3 million under this program, resulting in $50.7 million of available authorization remaining. Purchases may be made at our discretion in the form of open market repurchase programs, privately negotiated transactions, accelerated share repurchase programs or a combination of these methods. The actual timing and amount of our repurchases will depend on Company and market conditions. We are not obligated to make any common share repurchases under this program.

v3.20.2
Stock-Based Compensation Plans
3 Months Ended
Jun. 30, 2020
Stock-Based Compensation Plans  
Stock-Based Compensation Plans

9. Stock-Based Compensation Plans

Our stock-based compensation expense is included within general and administrative expenses in the unaudited interim condensed consolidated statements of operations and was $1.9 million and $1.3 million for the three months ended June 30, 2020 and 2019, respectively. Unrecognized compensation cost was $3.0 million as of June 30, 2020 and will be recognized over a remaining weighted average life of 2.43 years. For more information on our equity incentive plan, refer to Note 12 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2020.

In June 2020, we granted 7,575 shares of stock to our non-executive directors, which were valued and expensed at their grant date fair market value.

In June 2020, we granted an aggregate of 188,400 shares of restricted stock vesting in escalating installments on the grant date and on the first, second, and third anniversary of that date and 56,450 restricted stock units to certain of our officers and employees vesting in escalating installments on the first, second, and third anniversaries of the grant date. The shares of restricted stock and restricted stock units were valued at their grant date fair market value and are expensed on a straight-line basis over the respective vesting periods.

In June 2020, we granted 155,654 shares of stock to our President and Chief Executive Officer, which were valued and expensed at their grant date fair market value.

A summary of the activity of restricted shares and units awarded under our equity incentive plan as of June 30, 2020 and changes during the three months ended June 30, 2020, is as follows:

    

    

Weighted-Average

 

Grant-Date

Incentive Share/Unit Awards

Number of Shares/Units

Fair Value

Unvested as of April 1, 2020

317,048

$

8.08

Granted

408,079

8.07

Vested

(315,504)

7.88

Unvested as of June 30, 2020

409,623

$

8.23

v3.20.2
Revenues
3 Months Ended
Jun. 30, 2020
Revenues.  
Revenues

10. Revenues

Revenues comprise the following:

    

Three months ended

 

June 30, 2020

    

June 30, 2019

 

Net pool revenues—related party

$

66,929,421

$

50,092,137

Time charter revenues

5,086,004

10,982,031

Other revenues, net

1,149,899

 

91,378

Total revenues

$

73,165,324

 

$

61,165,546

Net pool revenues—related party depend upon the net results of the Helios Pool, and the operating days and pool points for each vessel. Refer to Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2020.

Other revenues, net represent income from charterers relating to reimbursement of voyage expenses such as costs for security guards and war risk insurance.

v3.20.2
Financial Instruments and Fair Value Disclosures
3 Months Ended
Jun. 30, 2020
Financial Instruments and Fair Value Disclosures  
Financial Instruments and Fair Value Disclosures

11.  Financial Instruments and Fair Value Disclosures

Our principal financial assets consist of cash and cash equivalents, restricted cash amounts due from related parties, trade accounts receivable and derivative instruments. Our principal financial liabilities consist of long-term debt, accounts payable, amounts due to related parties and accrued liabilities.

(a)Concentration of credit risk:  Financial instruments, which may subject us to significant concentrations of credit risk, consist principally of amounts due from our charterers, including the receivables from Helios Pool, cash and cash equivalents, and restricted cash. We limit our credit risk with amounts due from our charterers, including those through the Helios Pool, by performing ongoing credit evaluations of our charterers’ financial condition and generally do not require collateral from our charterers. We limit our credit risk with our cash and cash equivalents and restricted cash by placing it with highly-rated financial institutions.

(b)Interest rate risk:  Our long-term bank loans are based on the London Interbank Offered Rate (“LIBOR”) and hence we are exposed to movements thereto. We entered into interest rate swap agreements in order to hedge a majority of our variable interest rate exposure related to our 2015 Facility. Refer to Note 19 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2020 for information on our interest rate swap agreements related to the 2015 Facility.

(c)Fair value measurements: Interest rate swaps are stated at fair value, which is determined using a discounted cash flow approach based on marketbased LIBOR swap yield rates. LIBOR swap rates are observable at commonly quoted intervals for the full terms of the swaps and, therefore, are considered Level 2 items in accordance with the fair value hierarchy. The fair value of the interest rate swap agreements approximates the amount that we would have to pay or receive for the early termination of the agreements. In May 2020, our interest rate swap with the Commonwealth Bank of Australia was novated to ABN AMRO Capital USA LLC with an increase in the fixed rate from 1.4275% to 1.4675%.

Additionally, we have taken positions in freight forward agreements (“FFAs”) as economic hedges to reduce the risk related to vessels trading in the spot market, including in the Helios Pool, and to take advantage of fluctuations in market prices. Customary requirements for trading FFAs include the maintenance of initial and variation margins based on expected volatility, open position and mark-to-market of the contracts. FFAs are recorded as assets/liabilities until they are settled. Changes in fair value prior to settlement are recorded in unrealized gain/(loss) on derivatives. Upon settlement, if the contracted charter rate is less than the average of the rates for the specified route and time period, as reported by an identified index, the seller of the FFA is required to pay the buyer the settlement sum, being an amount equal to the difference between the contracted rate and the settlement rate, multiplied by the number of days in the specified period covered by the FFA. Conversely, if the contracted rate is greater than the settlement rate, the buyer is required to pay the seller the settlement sum. Settlement of FFAs are recorded in realized gain/(loss) on derivatives. FFAs are considered Level 2 items in accordance with the fair value hierarchy.

The following table summarizes the location on the balance sheet of the financial assets and liabilities that are carried at fair value on a recurring basis, which comprise our financial derivatives, all of which are considered Level 2 items in accordance with the fair value hierarchy:

June 30, 2020

March 31, 2020

Current assets

Current liabilities

Current assets

Current liabilities

Derivatives not designated as hedging instruments

    

Derivative instruments

    

Derivative instruments

    

Derivative instruments

    

Derivative instruments

Forward freight agreements

2,742,980

2,605,442

June 30, 2020

March 31, 2020

 

Other non-current assets

Long-term liabilities

Other non-current assets

Long-term liabilities

 

Derivatives not designated as hedging instruments

    

Derivative instruments

    

Derivative instruments

    

Derivative instruments

    

Derivative instruments

 

Interest rate swap agreements

$

$

9,511,097

$

$

9,152,829

The effect of derivative instruments within the unaudited interim condensed consolidated statements of operations included herein for the periods presented is as follows:

Three months ended

Derivatives not designated as hedging instruments

    

Location of gain/(loss) recognized

    

June 30, 2020

    

June 30, 2019

 

Forward freight agreements—change in fair value

Unrealized loss on derivatives

$

(137,538)

$

Interest rate swaps—change in fair value

 

Unrealized loss on derivatives

 

(358,268)

(6,070,789)

Forward freight agreements—realized gain/(loss)

Realized gain/(loss) on derivatives

(264,524)

Interest rate swaps—realized gain/(loss)

 

Realized gain/(loss) on derivatives

 

(541,705)

1,032,995

Gain/(loss) on derivatives, net

 

$

(1,302,035)

$

(5,037,794)

As of June 30, 2020 and March 31, 2020, no fair value measurements for assets or liabilities under Level 1 or Level 3 were recognized in the accompanying consolidated balance sheets with the exception of cash and cash equivalents, restricted cash, and securities. We did not have any other assets or liabilities measured at fair value on a non-recurring basis during June 30, 2020 and March 31, 2020.

(d)Book values and fair values of financial instruments:   In addition to the derivatives that we are required to record at fair value on our balance sheet (see (c) above) and securities that are included in other current assets in our balance sheet that we record at fair value, we have other financial instruments that are carried at historical cost. These financial instruments include trade accounts receivable, amounts due from related parties, cash and cash equivalents, restricted cash, accounts payable, amounts due to related parties and accrued liabilities for which the historical carrying value approximates the fair value due to the short-term nature of these financial instruments. Cash and cash equivalents, restricted cash and securities are considered Level 1 items.

We have short-term investments in six-month U.S. treasury bills for which we have not elected the fair value option. The fair value of these instruments is commonly quoted and would be considered Level 1 items under the fair value hierarchy if we elected the fair value option. As of June 30, 2020, the carrying value of the short-term investments in six-month U.S. treasury bills was equal to its fair value of $15.0 million.    

We have long-term bank debt and the Cresques Japanese Financing for which we believe the carrying value approximates their fair values as both instruments bear interest at variable interest rates, being LIBOR, which is observable at commonly quoted intervals for the full terms of the loans, and hence are considered as Level 2 items in accordance with the fair value hierarchy. We also have long-term debt related to the Corsair Japanese Financing, Concorde Japanese Financing, Corvette Japanese Financing, CJNP Japanese Financing, CMNL Japanese Financing, and CNML Japanese Financing (collectively the “Japanese Financings”) that incur interest at a fixed-rate with the initial principal amount amortized to the purchase obligation price of each vessel. The Japanese Financings are considered Level 2 items in accordance with the fair value hierarchy and the fair value of each is based on a discounted cash flow analysis using current observable interest rates. The following table summarizes the carrying value and estimated fair value of the Japanese Financings as of:

June 30, 2020

March 31, 2020

    

Carrying Value

    

Fair Value

    

Carrying Value

    

Fair Value

Corsair Japanese Financing

$

43,333,333

$

48,385,962

$

44,145,833

$

48,867,762

Concorde Japanese Financing

47,923,077

53,983,226

48,730,769

54,407,677

Corvette Japanese Financing

48,461,538

54,648,430

49,269,231

55,059,323

CJNP Japanese Financing

18,696,875

20,660,143

19,058,750

21,006,399

CMNL Japanese Financing

17,734,078

19,935,753

18,076,488

20,238,260

CNML Japanese Financing

19,909,673

22,426,002

20,261,012

22,728,984

v3.20.2
Earnings Per Share ("EPS")
3 Months Ended
Jun. 30, 2020
Earnings Per Share ("EPS")  
Earnings Per Share ("EPS")

12. Earnings Per Share (“EPS”)

Basic EPS represents net income attributable to common shareholders divided by the weighted average number of our common shares outstanding during the measurement period. Our restricted stock shares include rights to receive dividends that are subject to the risk of forfeiture if service requirements are not satisfied, and as a result, these shares are not considered participating securities and are excluded from the basic weighted-average shares outstanding calculation. Diluted EPS represent net income attributable to common shareholders divided by the weighted average number of our common shares outstanding during the measurement period while also giving effect to all potentially dilutive common shares that were outstanding during the period.

The calculations of basic and diluted EPS for the periods presented are as follows:

Three months ended

(In U.S. dollars except share data)

June 30, 2020

June 30, 2019

Numerator:

Net income

$

12,168,005

$

6,075,059

Denominator:

Basic weighted average number of common shares outstanding

50,554,233

54,552,994

Effect of dilutive restricted stock and restricted stock units

125,216

328,332

Diluted weighted average number of common shares outstanding

50,679,449

54,881,326

EPS:

Basic

$

0.24

$

0.11

Diluted

$

0.24

$

0.11

There were no shares of unvested restricted stock, which were excluded from the calculation of diluted EPS because the effect of their inclusion would be anti-dilutive for the three months ended June 30, 2020 and 2019.

v3.20.2
Commitments and Contingencies
3 Months Ended
Jun. 30, 2020
Commitments and Contingencies  
Commitments and Contingencies

13.  Commitments and Contingencies

Commitments under Contracts for Scrubbers Purchases

We had contractual commitments to purchase scrubbers to reduce sulfur emissions as of:

June 30, 2020

Less than one year

$

3,564,298

Total

$

3,564,298

These amounts only reflect firm commitments for scrubber purchases as of June 30, 2020 and exclude costs related to their installation. The timing of these payments is subject to change as installation times are finalized.

Commitments under Contracts for Ballast Water Management Systems Purchases

We had contractual commitments to purchase ballast water management systems as of:

June 30, 2020

Less than one year

$

734,380

Total

$

734,380

Operating Leases

We had the following commitments as a lessee under operating leases relating to our United States, Greece, United Kingdom, and Denmark offices:

June 30, 2020

Less than one year

$

381,788

One to three years

214,689

Total

$

596,477

Time Charter-in

We had the following time charter-in commitments relating to VLGCs currently in our fleet:

June 30, 2020

Less than one year

$

16,636,000

One to three years

15,257,000

Total

$

31,893,000

Fixed Time Charter Contracts

We had the following future minimum fixed time charter hire receipts based on non-cancelable long-term fixed time charter contracts:

June 30, 2020

Less than one year

$

19,400,858

One to three years

20,580,000

Total

$

39,980,858

Other

From time to time we expect to be subject to legal proceedings and claims in the ordinary course of business, principally personal injury and property casualty claims. Such claims, even if lacking in merit, could result in the expenditure of significant financial and managerial resources. We are not aware of any claim that is reasonably possible and should be disclosed or probable and for which a provision should be established in the accompanying unaudited interim condensed consolidated financial statements.

v3.20.2
Subsequent Events
3 Months Ended
Jun. 30, 2020
Subsequent Events.  
Subsequent Events

14. Subsequent Events

Amendment to the 2015 AR Facility

 

On July 14, 2020 (with retroactive effect to June 30, 2020), we amended the 2015 AR Facility and received the requisite lender consents, as applicable, to, among other things, relax the covenant restrictions under the agreement, including:

Elimination of the interest coverage ratio;
Reduction of minimum shareholders’ equity to $400 million with no upward adjustments;
Reduction of the minimum liquidity covenant from $40 million to $27.5 million;
Reduction of minimum cash balance from $2.2 million to $1.0 million per mortgaged vessel; and
Increase of the security value ratio from 135% to 145%.

The restriction for the provision of the minimum balance of cash was modified under the terms of the amendment to the 2015 AR Facility and no longer meets the criteria to be recognized as restricted cash. As a result, and with retroactive effect to June 30, 2020, we no longer classify these amounts as restricted cash on our condensed consolidated balance sheets. This requirement was reduced from $2.2 million per mortgaged vessel under the initial 2015 AR Facility to $1.0 million per mortgaged vessel per the July 14, 2020 amendment.

  

Repurchase Notice for the Captain John NP

 

On July 15, 2020, we exercised our repurchase option under the CJNP Japanese Financing by providing a three-month notice to the owners of Captain John NP of our intent to repurchase the vessel for approximately $18.3 million in cash and applied the deposit amount of $26.6 million, which had been retained by the buyer in connection with the CJNP Japanese Financing (the “CJNP Deposit”), towards the repurchase of the vessel.

v3.20.2
Significant Accounting Policies (Policies)
3 Months Ended
Jun. 30, 2020
Significant Accounting Policies  
Accounting Pronouncements Not Yet Adopted

Accounting Pronouncements Not Yet Adopted

 

In March 2020, the Financial Accounting Standards Board issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”).” ASU 2020-04 provides temporary optional expedients and exceptions to the guidance in U.S. GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. This ASU is effective for adoption at any time between March 12, 2020 and December 31, 2022. We are currently evaluating the impact of this adoption on our condensed consolidated financial statements and related disclosures.

v3.20.2
Basis of Presentation and General Information (Tables)
3 Months Ended
Jun. 30, 2020
Basis of Presentation and General Information  
Schedule of wholly-owned subsidiaries

Our subsidiaries as of June 30, 2020, which are all wholly-owned and are incorporated in the Republic of the Marshall Islands (unless otherwise noted), are listed below.

Vessel Subsidiaries

    

Type of

    

    

    

 

Subsidiary

vessel

Vessel’s name

Built

CBM(1)

 

CMNL LPG Transport LLC

 

VLGC

 

Captain Markos NL(2)

 

2006

 

82,000

CJNP LPG Transport LLC

 

VLGC

 

Captain John NP(2)

 

2007

 

82,000

CNML LPG Transport LLC

 

VLGC

 

Captain Nicholas ML(2)

 

2008

 

82,000

Comet LPG Transport LLC

VLGC

Comet

2014

84,000

Corsair LPG Transport LLC

VLGC

Corsair(2)

2014

84,000

Corvette LPG Transport LLC

 

VLGC

 

Corvette(2)

 

2015

 

84,000

Dorian Shanghai LPG Transport LLC

VLGC

Cougar

2015

84,000

Concorde LPG Transport LLC

VLGC

Concorde(2)

2015

84,000

Dorian Houston LPG Transport LLC

VLGC

Cobra

2015

84,000

Dorian Sao Paulo LPG Transport LLC

VLGC

Continental

2015

84,000

Dorian Ulsan LPG Transport LLC

VLGC

Constitution

2015

84,000

Dorian Amsterdam LPG Transport LLC

VLGC

Commodore

2015

84,000

Dorian Dubai LPG Transport LLC

VLGC

Cresques(2)

2015

84,000

Constellation LPG Transport LLC

VLGC

Constellation

2015

84,000

Dorian Monaco LPG Transport LLC

VLGC

Cheyenne

2015

84,000

Dorian Barcelona LPG Transport LLC

VLGC

Clermont

2015

84,000

Dorian Geneva LPG Transport LLC

VLGC

Cratis

2015

84,000

Dorian Cape Town LPG Transport LLC

VLGC

Chaparral

2015

84,000

Dorian Tokyo LPG Transport LLC

VLGC

Copernicus

2015

84,000

Commander LPG Transport LLC

VLGC

Commander

2015

84,000

Dorian Explorer LPG Transport LLC

VLGC

Challenger

2015

84,000

 

Dorian Exporter LPG Transport LLC

VLGC

Caravelle

2016

84,000

Management and Other Non-vessel Subsidiaries

 

Subsidiary

 

Dorian LPG Management Corp.

Dorian LPG (USA) LLC (incorporated in USA)

Dorian LPG (UK) Ltd. (incorporated in UK)

Dorian LPG Finance LLC

Occident River Trading Limited (incorporated in UK)

Dorian LPG (DK) ApS (incorporated in Denmark)

Dorian LPG Chartering LLC

Dorian LPG FFAS LLC

(1)CBM: Cubic meters, a standard measure for LPG tanker capacity
(2)Operated pursuant to a bareboat charter agreement. Refer to Note 6 below for further information.

v3.20.2
Deferred Charges, Net (Tables)
3 Months Ended
Jun. 30, 2020
Deferred Charges, Net.  
Schedule of movement of deferred charges

    

Drydocking

 

costs

 

Balance, April 1, 2020

$

7,336,726

Additions

1,086,597

Amortization

(444,445)

Balance, June 30, 2020

 

$

7,978,878

v3.20.2
Vessels, Net (Tables)
3 Months Ended
Jun. 30, 2020
Vessels, Net  
Schedule of vessels, net

    

    

Accumulated

    

 

Cost

depreciation

Net book Value

 

Balance, April 1, 2020

$

1,757,285,233

 

$

(319,626,400)

 

$

1,437,658,833

Other additions

3,280,549

3,280,549

Depreciation

(16,416,669)

(16,416,669)

Balance, June 30, 2020

 

$

1,760,565,782

 

$

(336,043,069)

 

$

1,424,522,713

v3.20.2
Long-term Debt (Tables)
3 Months Ended
Jun. 30, 2020
Long-term Debt  
Schedule of loans outstanding

    

June 30, 2020

    

March 31, 2020

 

2015 Facility/2015 AR Facility

Commercial Financing

$

155,655,698

$

163,385,998

KEXIM Direct Financing

100,104,372

110,716,127

KEXIM Guaranteed

104,512,865

115,385,072

K-sure Insured

51,673,559

57,098,924

Total 2015 Facility/2015 AR Facility

$

411,946,494

$

446,586,121

Japanese Financings

Corsair Japanese Financing

$

43,333,333

$

44,145,833