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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
 
FORM 10-Q 
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2021
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number: 001-36437 

Dorian LPG Ltd.
(Exact name of registrant as specified in its charter) 

			
Marshall Islands	 	66-0818228	
(State or other jurisdiction of incorporation or organization)	 	(I.R.S. Employer Identification No.)	
c/o Dorian LPG (USA) LLC	 		
27 Signal Road, Stamford, CT		06902	
(Address of principal executive offices)	 	(Zip Code)	

Registrant's telephone number, including area code: (203) 674-9900
Former name, former address and former fiscal year, if changed since last report: Not Applicable

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of Each Class	    	Trading Symbol	    	Name of Each Exchange on Which Registered	
Common stock, par value $0.01 per share		LPG		New York Stock Exchange	
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒    No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☒ 	Non-accelerated filer ☐		
Smaller reporting company ☐	Emerging growth company ☐			

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒    
As of January 31, 2022, there were 40,138,956 shares of the registrant’s common stock outstanding.

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FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995 (the “PSLRA”), including analyses and other information based on forecasts of future results and estimates of amounts not yet determinable and statements relating to our future prospects, developments and business strategies. Such forward-looking statements are intended to be covered by the safe harbor provided for under the sections referenced in the immediately preceding sentence and the PSLRA. Forward-looking statements are generally identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “might,” “pending,” “plan,” “possible,” “potential,” “predict,” “project,” “seeks,” “should,” “targets,” “will,” “would,” and similar terms and phrases, including references to assumptions. Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual future activities and results of operations to differ materially from future results expressed, projected, or implied by those forward-looking statements in this quarterly report.

These risks include the risks that are identified in the “Risk Factors” section of this quarterly report and of our Annual Report on Form 10-K for the fiscal year ended March 31, 2021, and also include, among others, risks associated with the following:

	●	our future operating or financial results;	

	●	our business strategies, including with respect to acquisitions and chartering, and expected capital spending or operating expenses, as well as any difficulty we may have in managing planned growth properly;	

	●	shipping trends, including changes in charter rates applicable to alternative propulsion technologies, scrubber equipped and non-scrubber equipped vessels, scrapping rates and vessel and other asset values;	

	●	changes in trading patterns that impact tonnage requirements;	

	●	compliance with laws, treaties, rules, regulations and policies (including amendments or other changes thereto) applicable to the liquefied petroleum gas, or LPG, shipping industry, including, without limitation, legislation adopted by international organizations such as the International Maritime Organization and the European Union or by individual countries, as well as the impact and costs of our compliance with, and the potential of liability under, such laws, treaties, rules, regulations and policies;	

	●	the timing, cost and prospects of purchasing, installing and operating exhaust gas cleaning systems (commonly referred to as “scrubbers”) to reduce sulfur emissions on certain of our vessels;	

	●	charterers’ increasing emphasis on environmental and safety concerns and investors’ increasing scrutiny and changing expectations with respect to public company Environmental, Social and Governance policies;	

	●	general economic conditions and specific economic conditions in the oil and natural gas industry and the countries and regions where LPG is produced and consumed;	

	●	completion of infrastructure projects to support marine transportation of LPG, including export terminals and pipelines;	

	●	factors affecting supply of and demand for LPG, LPG shipping, and LPG vessels, including, among other things: the production levels, price and worldwide consumption and storage of oil, refined petroleum products and natural gas, including production from United States shale fields; any oversupply of or limited demand for LPG vessels comparable to ours or higher specification vessels; trade conflicts and the imposition of tariffs or otherwise on LPG or LPG products resulting from domestic and international	

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		political and geopolitical conditions; and shifts in consumer demand from LPG towards other energy sources;	

	●	any decrease in the value of the charter-free market values of our vessels or reduction in our charter hire rates and profitability associated with such vessels as a result of increase in the supply of or decrease in the demand for LPG, LPG shipping or LPG vessels;	

	●	business disruptions, including supply chain issues, due to natural or other disasters, or otherwise;	

	●	greater than anticipated levels of LPG vessel newbuilding orders or lower than anticipated rates of LPG vessel scrapping;	

	●	the aging of the Company’s fleet which could result in increased operating costs, impairment or loss of hire;	

	●	our ability to profitably employ our vessels, including vessels participating in the Helios Pool (defined below);	

	●	unavailability of spot charters and the volatility of prevailing spot market charter rates, which may affect our ability to realize the expected benefits from our time chartered-in vessels, including those in the Helios Pool;	

	●	failure of our charterers or other counterparties to meet their obligations under our charter agreements;	

	●	shareholders’ reliance on us to enforce our rights against contract counterparties;	

	●	competition in the LPG shipping industry, including our ability to compete successfully for future chartering opportunities and newbuilding opportunities (if any);	

	●	future purchase prices of newbuildings and secondhand vessels and timely deliveries of such vessels (if any) and, relatedly, the risks associated with the purchase of second-hand vessels;	

	●	the performance of the Helios Pool, including the failure of its significant customers to perform their obligations and the loss or reduction in business from its significant customers (or if the same were to occur with respect to our significant customers);	

	●	the availability of (and our ability to obtain such) financing and refinancing to fund capital expenditures, acquisitions and other general corporate purposes, the terms of such financing and our ability to comply with the restrictions and other covenants set forth in our existing and future debt agreements and financing arrangements (and to repay or refinance our existing debt and settling of interest rate swaps, if any);	

	●	our costs, including crew wages, insurance, provisions, repairs and maintenance, general and administrative expenses, drydocking, and bunker prices, as applicable;	

	●	any inability to retain and recruit qualified key executives, key employees, key consultants or skilled workers and, relatedly, our dependence on key personnel and the availability of skilled workers and the related labor costs;	

	●	the potential difference in interests between or among certain of our directors, officers, key executives and shareholders;	

	●	quality and efficiency requirements from customers and developments regarding the technologies relating to oil exploration and the effects of new products and new technology in our industry, including with respect to equipment propulsion and overall vessel efficiency;	

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	●	potential changes in regulation that would require the installation of Engine Power Limitation (EPL) systems on our vessels to reduce fuel use and carbon emissions, and increase the level of energy efficiency;	

	●	operating hazards in the maritime transportation industry, including accidents, political events, public health threats (including the outbreak of communicable diseases), international hostilities and instability, armed conflict, piracy, attacks on vessels or other petroleum-related infrastructures and acts by terrorists, which may cause potential disruption of shipping routes;	

	●	the length and severity of the ongoing coronavirus outbreak (COVID-19), including its impact on the demand for commercial seaborne transportation of LPG and the condition of financial markets and the potential knock-on impacts to our global operations;	

	●	the adequacy of our insurance coverage in the event of a catastrophic event;	

	●	the failure to protect our information systems against security breaches, or the failure or unavailability of these systems for a significant period;	

	●	the arresting or attachment of one or more of our vessels by maritime claimants;	

	●	compliance with and changes to governmental, tax, environmental and safety laws and regulations, which may add to our costs or the costs of our customers;	

	●	fluctuations in currencies and interest rates and the impact of the discontinuance of the London Interbank Offered Rate for U.S. Dollars, or LIBOR, after June 30, 2023 on any of our debt referencing LIBOR in the interest rate;	

	●	compliance with the United States Foreign Corrupt Practices Act of 1977, the United Kingdom Bribery Act 2010, or other applicable regulations relating to bribery;	

	●	the volatility of the price of shares of our common stock (our “common shares”) and future sales of our common shares;	

	●	our incorporation under the laws of the Republic of the Marshall Islands and the different rights to relief that may be available compared to other countries, including the United States;	

	●	congestion at or blockages of ports or canals;	

	●	any developments in the existing Panama Canal transportation structure as a result of the study announced by the Panamanian government and Energy Transfer LP to analyze the prospects of building an LPG pipeline, potentially running beside the existing Panama Canal and linking the Atlantic Ocean with the Pacific Ocean;	

	●	if we are required to pay tax on U.S. source income;	

	●	if we are treated as a “passive foreign investment company”; and	

	●	other factors detailed in this report and from time to time in our periodic reports.	

Actual results could differ materially from expectations expressed in the forward-looking statements in this quarterly report if one or more of the underlying assumptions or expectations proves to be inaccurate or is not realized. You should thoroughly read this quarterly report with the understanding that our actual future results may be materially different from and worse than what we expect. Other sections of this quarterly report include additional factors that could

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adversely impact our business and financial performance. Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We qualify all of the forward-looking statements by these cautionary statements.

We caution readers of this quarterly report not to place undue reliance on forward-looking statements. Any forward-looking statements contained herein are made only as of the date of this report, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

As used in this quarterly report and unless otherwise indicated, references to “Dorian,” the “Company,” “we,” “our,” “us,” or similar terms refer to Dorian LPG Ltd. and its subsidiaries.

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Dorian LPG Ltd.

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PART I.	FINANCIAL INFORMATION		
			
ITEM 1.	FINANCIAL STATEMENTS		
	Unaudited Condensed Consolidated Balance Sheets as of December 31, 2021 and March 31, 2021	1	
	Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended December 31, 2021 and December 31, 2020	2	
	Unaudited Condensed Consolidated Statements of Shareholders' Equity for the nine months ended December 31, 2021 and December 31, 2020	3	
	Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended December 31, 2021 and December 31, 2020	4	
	Notes to Unaudited Condensed Consolidated Financial Statements	5	
			
ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	20	
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	32	
ITEM 4.	CONTROLS AND PROCEDURES	32	

PART II.	OTHER INFORMATION		
	 		
ITEM 1.	LEGAL PROCEEDINGS	33	
ITEM 1A.	RISK FACTORS	33	
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	33	
ITEM 6.	EXHIBITS	33	
			
EXHIBIT INDEX		34	
SIGNATURES		35	

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PART I — FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Dorian LPG Ltd.
Unaudited Condensed Consolidated Balance Sheets
(Expressed in United States Dollars, except for share data)

	    	As of	    	As of	 	
		December 31, 2021		March 31, 2021	 	
Assets								
Current assets								
Cash and cash equivalents		$	115,807,905	 	$	79,330,007		
Restricted cash—current	 		—	 		5,315,951		
Trade receivables, net and accrued revenues			—	 		202,221		
Due from related parties	 		47,487,533	 		56,191,375		
Inventories	 		2,361,139	 		2,007,464		
Vessel held for sale			43,417,348			—		
Prepaid expenses and other current assets			8,384,018	 		10,296,229		
Total current assets			217,457,943	 		153,343,247		
Fixed assets								
Vessels, net	 		1,252,405,737	 		1,377,028,255		
Vessels under construction	 		16,167,470	 		—		
Other fixed assets, net	 		84,799	 		148,836		
Total fixed assets			1,268,658,006	 		1,377,177,091		
Other non-current assets								
Deferred charges, net	 		10,537,511	 		10,158,202		
Due from related parties—non-current			20,900,000			23,100,000		
Restricted cash—non-current	 		78,946	 		81,241		
Operating lease right-of-use assets			10,517,796			17,672,227		
Other non-current assets			94,580			82,837		
Total assets		$	1,528,244,782	 	$	1,581,614,845		
Liabilities and shareholders’ equity								
Current liabilities								
Trade accounts payable		$	9,271,885	 	$	9,831,328		
Accrued expenses	 		3,906,423	 		8,765,264		
Due to related parties	 		360,682	 		117,803		
Deferred income			1,628,133	 		853,983		
Derivative instruments			205,869			1,100,529		
Current portion of long-term operating lease liabilities			9,704,781			9,591,447		
Current portion of long-term debt	 		69,530,028	 		51,820,283		
Dividends payable			247,090			—		
Total current liabilities			94,854,891	 		82,080,637		
Long-term liabilities								
Long-term debt—net of current portion and deferred financing fees	 		506,737,795	 		539,651,761		
Long-term operating lease liabilities			802,793			8,080,995		
Derivative instruments	 		144,057	 		3,454,862		
Other long-term liabilities			1,514,183			1,521,260		
Total long-term liabilities			509,198,828	 		552,708,878		
Total liabilities			604,053,719	 		634,789,515		
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, 51,275,609 and 51,071,409 shares issued, 40,138,956 and 41,493,275 shares outstanding (net of treasury stock), as of December 31, 2021 and March 31, 2021, respectively	 		512,757	 		510,715		
Additional paid-in-capital	 		759,390,376	 		756,776,217		
Treasury stock, at cost; 11,136,653 and 9,578,134 shares as of December 31, 2021 and March 31, 2021, respectively			(121,226,936)	 		(99,862,114)		
Retained earnings			285,514,866	 		289,400,512		
Total shareholders’ equity			924,191,063	 		946,825,330		
Total liabilities and shareholders’ equity		$	1,528,244,782	 	$	1,581,614,845		

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

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Dorian LPG Ltd.
Unaudited Condensed Consolidated Statements of Operations
(Expressed in United States Dollars)

		Three months ended		Nine months ended		
	    	December 31, 2021	    	December 31, 2020	    	December 31, 2021	    	December 31, 2020	 	
Revenues														
Net pool revenues—related party		$	62,856,243		$	82,659,967		$	174,739,894		$	199,312,944		
Time charter revenues			5,301,134			4,665,664			15,915,876			13,928,732		
Other revenues, net			442,405			1,153,393			3,981,608			3,112,949		
Total revenues			68,599,782			88,479,024			194,637,378			216,354,625		
Expenses														
Voyage expenses	 		779,746	 		752,404			3,200,751	 		2,426,518		
Charter hire expenses			4,917,012			4,392,132			10,829,050			13,626,580		
Vessel operating expenses	 		18,205,762	 		19,202,291			56,916,054	 		58,027,558		
Depreciation and amortization	 		16,859,224	 		17,253,447			50,771,237	 		51,346,574		
General and administrative expenses			5,867,454	 		5,548,526			23,257,989	 		22,764,312		
Total expenses			46,629,198	 		47,148,800			144,975,081	 		148,191,542		
Gain on disposal of vessel			—			—			3,466,210			—		
Other income—related parties			580,388			545,311			1,793,663			1,646,014		
Operating income			22,550,972	 		41,875,535			54,922,170	 		69,809,097		
Other income/(expenses)														
Interest and finance costs	 		(7,412,231)	 		(6,087,193)			(18,619,712)	 		(21,839,573)		
Interest income			53,792	 		53,197			279,195	 		269,381		
Unrealized gain on derivatives	 		3,056,741	 		479,534			4,205,465	 		3,952,414		
Realized loss on derivatives			(895,782)			(760,991)			(2,714,337)			(3,696,915)		
Other gain/(loss), net			(772,607)	 		265,182			(1,520,993)	 		36,815		
Total other income/(expenses), net			(5,970,087)	 		(6,050,271)			(18,370,382)	 		(21,277,878)		
Net income		$	16,580,885	 	$	35,825,264		$	36,551,788	 	$	48,531,219		
														
Weighted average shares outstanding:														
Basic			39,890,674			50,255,908			40,305,902			50,511,473		
Diluted			40,025,399			50,368,392			40,460,665			50,605,985		
														
Earnings per common share—basic	 	$	0.42	 	$	0.71		$	0.91	 	$	0.96		
Earnings per common share—diluted	 	$	0.41	 	$	0.71		$	0.90	 	$	0.96		

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

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Dorian LPG Ltd.
Unaudited Condensed Consolidated Statements of Shareholders’ Equity
(Expressed in United States Dollars, except for number of shares)

		Number of					                           		Additional		                           					
		common		Common		Treasury		paid-in		Retained				 	
	    	shares	    	stock	    	stock	    	capital	    	Earnings	    	Total	 	
Balance, April 1, 2020	 	59,083,290		$	590,833		$	(87,183,865)		$	866,809,371		$	196,835,859	 	$	977,052,198		
Net income for the period		—			—			—			—			12,168,005			12,168,005		
Restricted share award issuances		351,629			3,516			—			(3,516)			—			—		
Stock-based compensation		—			—			—			1,930,902			—			1,930,902		
Purchase of treasury stock		—			—			(1,198,214)			—			—			(1,198,214)		
Balance, June 30, 2020	 	59,434,919	 	$	594,349	 	$	(88,382,079)	 	$	868,736,757	 	$	209,003,864	 	$	989,952,891		
Net income for the period		—			—			—			—			537,950			537,950		
Restricted share award issuances		15,100			151			—			(151)			—			—		
Stock-based compensation		—			—			—			406,721			—			406,721		
Purchase of treasury stock		—			—			(1,306,388)			—			—			(1,306,388)		
Balance, September 30, 2020		59,450,019		$	594,500		$	(89,688,467)		$	869,143,327		$	209,541,814		$	989,591,174		
Net income for the period		—			—			—			—			35,825,264			35,825,264		
Restricted share award issuances		15,105			151			—			(151)			—			—		
Stock-based compensation		—			—			—			530,068			—			530,068		
Purchase of treasury stock		—			—			(10,173,647)			—			—			(10,173,647)		
Balance, December 31, 2020		59,465,124	 	$	594,651	 	$	(99,862,114)	 	$	869,673,244	 	$	245,367,078	 	$	1,015,772,859		
																			
		Number of					                           		Additional		                           					
		common		Common		Treasury		paid-in		Retained				 	
		shares	    	stock	    	stock	    	capital	    	Earnings	    	Total	 	
Balance, April 1, 2021	 	51,071,409		$	510,715		$	(99,862,114)		$	756,776,217		$	289,400,512	 	$	946,825,330		
Net income for the period		—			—			—			—			5,869,100			5,869,100		
Restricted share award issuances		15,800			158			—			(158)			—			—		
Stock-based compensation		—			—			—			647,124			—			647,124		
Purchase of treasury stock		—			—			(14,793,180)			—			—			(14,793,180)		
Balance, June 30, 2021	 	51,087,209	 	$	510,873	 	$	(114,655,294)	 	$	757,423,183	 	$	295,269,612	 	$	938,548,374		
Net income for the period		—			—			—			—			14,101,803			14,101,803		
Restricted share award issuances		188,400			1,884			—			(1,884)			—			—		
Dividend		—			—			—			—			(40,437,434)			(40,437,434)		
Stock-based compensation		—			—			—			1,290,254			—			1,290,254		
Purchase of treasury stock		—			—			(6,553,707)			—			—			(6,553,707)		
Balance, September 30, 2021		51,275,609		$	512,757		$	(121,209,001)		$	758,711,553		$	268,933,981		$	906,949,290		
Net income for the period		—			—			—			—			16,580,885			16,580,885		
Stock-based compensation		—			—			—			678,823			—			678,823		
Purchase of treasury stock		—			—			(17,935)			—			—			(17,935)		
Balance, December 31, 2021		51,275,609	 	$	512,757	 	$	(121,226,936)	 	$	759,390,376	 	$	285,514,866	 	$	924,191,063		

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

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Dorian LPG Ltd.
Unaudited Condensed Consolidated Statements of Cash Flows
(Expressed in United States Dollars)

							
	    	Nine months ended	 	
		December 31, 2021		December 31, 2020		
Cash flows from operating activities:								
Net income		$	36,551,788		$	48,531,219		
Adjustments to reconcile net income to net cash provided by operating activities:								
Depreciation and amortization			50,771,237			51,346,574		
Amortization of operating lease right-of-use assets			7,148,483			6,876,606		
Amortization of financing costs			3,232,626			4,005,265		
Unrealized gain on derivatives			(4,205,465)			(3,952,414)		
Stock-based compensation expense			2,616,201			2,867,691		
Gain on disposal of vessel			(3,466,210)			—		
Unrealized foreign currency (gain)/loss, net			205,279			(236,303)		
Other non-cash items, net			1,342,894			(411,380)		
Changes in operating assets and liabilities								
Trade receivables, net and accrued revenue			202,221			820,414		
Prepaid expenses and other current assets			(960,151)			(1,755,118)		
Due from related parties			10,148,374			(9,152,171)		
Inventories			(408,693)			(134,090)		
Other non-current assets			(11,743)			1,471,650		
Operating lease liabilities—current and long-term			(7,158,734)			(6,877,479)		
Trade accounts payable			(352,460)			(37,288)		
Accrued expenses and other liabilities			(3,998,726)			(863,951)		
Due to related parties			242,879			(183,387)		
Payments for drydocking costs			(3,128,235)			(4,720,105)		
Net cash provided by operating activities			88,771,565			87,595,733		
Cash flows from investing activities:								
Payments for vessels under construction and vessel capital expenditures			(22,225,882)			(9,301,455)		
Purchase of investment securities			(2,250,681)			(488,231)		
Proceeds from sale of investment securities			3,742,429			—		
Proceeds from maturity of short-term investments			—			15,000,000		
Proceeds from disposal of vessel			43,283,021			—		
Payments to acquire other fixed assets			—			(11,566)		
Net cash provided by investing activities			22,548,887			5,198,748		
Cash flows from financing activities:								
Proceeds from long-term debt borrowings			83,400,000			55,378,172		
Repayment of long-term debt borrowings			(100,526,209)			(86,463,325)		
Repurchase of common stock			(21,346,885)			(11,659,822)		
Financing costs paid			(1,357,545)			(3,997,015)		
Dividend paid			(40,210,344)			—		
Net cash used in financing activities			(80,040,983)			(46,741,990)		
Effects of exchange rates on cash and cash equivalents			(119,817)			237,011		
Net increase in cash, cash equivalents, and restricted cash			31,159,652			46,289,502		
Cash, cash equivalents, and restricted cash at the beginning of the period			84,727,199			87,389,127		
Cash, cash equivalents, and restricted cash at the end of the period		$	115,886,851		$	133,678,629		

The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.

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Dorian LPG Ltd.
Notes to Unaudited Condensed Consolidated Financial Statements
(Expressed in United States Dollars)
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 December 31, 2021, our fleet consists of twenty-three VLGCs, including nineteen fuel-efficient 84,000 cbm ECO-design VLGCs (“ECO-VLGCs”), two 82,000 cbm VLGCs and two time chartered-in ECO-VLGCs. As of December 31, 2021, thirteen of our ECO-VLGCs, including one of our time chartered-in ECO-VLGCs, are equipped with exhaust gas cleaning systems (commonly referred to as “scrubbers”) to reduce sulfur emissions. We provide in-house commercial 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, 2021 included in our Annual Report on Form 10-K filed with the SEC on June 2, 2021.

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.

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Our subsidiaries as of December 31, 2021, 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)	 	
CJNP LPG Transport LLC	 	VLGC	 	Captain John NP	 	2007	 	82,000		
CNML LPG Transport LLC	 	VLGC	 	Captain Nicholas ML	 	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		
Dorian Sakura LPG Transport LLC(3)		VLGC		Hull No. 1755		2023(4)		84,000		

Management and Other 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		
CMNL LPG Transport LLC		

(1)	CBM: Cubic meters, a standard measure for LPG tanker capacity	
(2)	Operated pursuant to a bareboat charter agreement. Refer to Note 8 below for further information.	
(3)	Upon delivery, the applicable vessel will be operated pursuant to a bareboat charter agreement. Refer to Note 16 below for further information.	
(4)	The applicable vessel is expected to be delivered in calendar year 2023.	

COVID-19

Since the beginning of calendar year 2020, the outbreak of the COVID-19 pandemic has negatively affected economic conditions, the supply chain, the labor market, the demand for certain shipped goods regionally as well as globally and may otherwise impact our operations and the operations of our customers and suppliers. Governments and governmental agencies have taken numerous actions in an attempt to mitigate the spread of the COVID-19 virus, including travel bans, quarantines, and other emergency public health measures, and a number of countries implemented lockdown measures. These measures resulted in a significant reduction in global economic activity and extreme volatility in the global financial markets. Though some of these measures were relaxed, certain governments may reinstate similar or other measures in the wake of the spread of the COVID-19 virus and its related variants. If the COVID-19 pandemic continues on a prolonged basis or becomes more severe, including as a result of variants of COVID-19, the adverse impact on the global economy and the shipping industry may deteriorate and our operations and cash flows may be negatively impacted. The extent of COVID-19’s impact on our financial and operational results, which could be material, will depend on the duration and severity of the pandemic, vaccination rates among the population, the effectiveness of COVID-19 vaccines
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against COVID-19 and its variants, and other governmental responses. Any new uncertainties regarding the economic impact of the COVID-19 pandemic may likely to result in market turmoil, which could also negatively impact our business, financial condition and cash flows. Over the course of the pandemic, governments approved large stimulus packages to mitigate the effects of the sudden decline in economic activity caused by the pandemic; however, we cannot predict the extent to which these measures will be sufficient to continue to sustain the business and financial condition of companies in the shipping industry. We have experienced increases in crew wages and related costs, particularly in crew travel and medical costs, as a result of COVID-19.

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, 2021 (refer to Note 2 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2021).

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 consolidated financial statements and related disclosures.

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 December 31, 2021 and 2020 and $0.1 million for both the nine months ended December 31, 2021 and 2020.

As of December 31, 2021, $1.0 million was due from DHSA and included in “Due from related parties” in the unaudited interim condensed consolidated balance sheets. As of March 31, 2021, $1.0 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
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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 December 31, 2021, the Helios Pool operated twenty-four VLGCs, including twenty-one vessels from our fleet (including two vessels time chartered-in from  related parties) and three Phoenix vessels.

As of December 31, 2021, we had net receivables from the Helios Pool of $67.0 million (net of an amount due to Helios Pool of $0.3 million which is reflected under “Due to related Parties”), including $23.1 million of working capital contributed for the operation of our vessels in the pool (of which $2.2 million was classified as current). As of March 31, 2021, we had net receivables from the Helios Pool of $78.1 million (net of an amount due to Helios Pool of $0.1 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 was classified as current). Our maximum exposure to losses from the pool as of December 31, 2021 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. Dorian LPG (DK) ApS has assumed the responsibilities of Dorian LPG (UK) Ltd. under these commercial management agreements with the consolidation of our Copenhagen, Denmark and London, United Kingdom offices. Fees for commercial management services earned by Dorian LPG (DK) ApS are included in “Other income-related parties” in the unaudited interim condensed consolidated statement of operations and were $0.5 million for both the three months ended December 31, 2021, and 2020, and $1.6 million and $1.5 million for the nine months ended December 31, 2021, and 2020, 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 $0.4 million and $0.9 million for the three months ended December 31, 2021, and 2020, respectively, and $1.9 million and $2.9 million for the nine months ended December 31, 2021, and 2020, respectively, and are included in “Other revenues, net” in the unaudited interim condensed consolidated statements of operations.

Through our vessel owning subsidiaries, we have chartered vessels to the Helios Pool during the nine months ended December 31, 2021 and 2020. 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 as variable rate time charter hire for the relevant vessel to participants based on pool points (vessel attributes such as cargo carrying capacity, scrubber-equipped, fuel consumption, and speed are taken into consideration) and number of days the vessel participated in the pool in the period. 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. 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 13.

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4. Deferred Charges, Net

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

	    	Drydocking	 	
		costs	 	
Balance, April 1, 2021		$	10,158,202		
Additions			2,876,379		
Disposals			(74,561)		
Transfer to vessel held for sale			(224,291)		
Amortization			(2,198,218)		
Balance, December 31, 2021	 	$	10,537,511		

5. Vessels, Net

	    			    	Accumulated	    			 	
		Cost		depreciation		Net book Value	 	
Balance, April 1, 2021		$	1,762,657,830	 	$	(385,629,575)	 	$	1,377,028,255		
Other additions			5,980,471			—			5,980,471		
Transfer to vessel held for sale			(68,845,783)			25,652,725			(43,193,058)		
Disposals			(62,311,861)			23,410,912			(38,900,949)		
Depreciation			—			(48,508,982)			(48,508,982)		
Balance, December 31, 2021	 	$	1,637,480,657	 	$	(385,074,920)	 	$	1,252,405,737		

Additions to vessels, net mainly consisted of scrubber purchase and installation costs and other capital improvements for certain of our VLGCs during the nine months ended December 31, 2021. Our vessels, with a total carrying value of $1,212.3 million and $1,337.4 million as of December 31, 2021 and March 31, 2021, respectively, are first-priority mortgaged as collateral for our long-term debt (refer to Note 8 below). Captain John NP is our only VLGC that is not first-priority mortgaged as collateral for our long-term debt as of December 31, 2021 and Captain Markos NL was our only VLGC that was not first priority mortgaged as collateral for our long-term debt as of March 31, 2021. No impairment loss was recorded for the periods presented.

In September 2021, we completed the sale of the 2006-built VLGC Captain Markos NL and recognized a gain of $3.5 million during the nine months ended December 31, 2021.‌

6. Vessel Held For Sale

In December 2021, we determined that the sale of our 2008-built VLGC Captain Nicholas ML was probable within twelve months and reclassified the vessel to vessel held for sale. No gain or loss has been recorded as of December 31, 2021 and we have suspended the recognition of depreciation of the vessel. The carrying value of the vessel totaled $43.4 million, which we reclassified to current assets on our unaudited interim condensed consolidated balance sheets as of December 31, 2021. Additionally, as of December 31, 2021, Captain Nicholas ML was encumbered under the CNML Japanese Financing, which we subsequently repaid on January 26, 2022. See Note 8 for further details on the CNML Japanese Financing.

7. Vessel Under Construction

As further described in Note 16, we have entered into a thirteen-year bareboat charter agreement for a newbuilding dual-fuel VLGC that is expected to be delivered from Kawasaki Heavy Industries in March 2023. The analysis and movement of vessel under construction is presented in the table below:

Balance, April 1, 2021	    	$	—	 	
Installment payments			16,000,000		
Other capitalized expenditures			102,904		
Capitalized interest			64,566		
Balance, December 31, 2021	 	$	16,167,470		

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8. 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, 2021 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”), and the amendment and restatement of the 2015 Facility (the “2015 AR Facility”) on April 29, 2020. On December 29, 2021, we prepaid $47.2 million of the 2015 AR Facility’s then outstanding principal related to the Commander and Constellation using proceeds from the BALCAP Facility (defined below).

We were in compliance with all financial covenants as of December 31, 2021.

BALCAP Facility

On December 29, 2021, we completed the refinancing of our indebtedness secured by the VLGCs Constellation and Commander through a new loan facility entered into between, among others, Constellation LPG Transport LLC and Commander LPG Transport LLC, as borrowers, and Banc of America Leasing & Capital, LLC, Pacific Western Bank, Raymond James Bank, a Florida chartered bank and City National Bank of Florida, as lenders (“BALCAP Facility”). The financing has a 3.78% fixed interest rate, a term of five years, a face amount of $83.4 million, and a fixed monthly, mortgage-style payment of $0.9 million with a balloon payment of $44.1 million in December 2026. We received $34.9 million of net cash proceeds after repayment of debt under the 2015 AR Facility related to those vessels and fees and expenses related to the refinancing transaction.

The  BALCAP Facility is secured by, among other things, (i) first priority Bahamian mortgages on the vessels financed and deeds of covenant collateral thereto; (ii) first priority assignments of all of the financed vessels’ insurances, earnings and requisition compensation; (iii) first priority security interests in respect of all of the equity interests of the borrowers; (iv) subordination of the rights of any technical ship manager in the proceeds of any insurances of the financed vessels; (v) an assignment by each borrower of any deposit account opened by it in accordance with the facility; and (vi) a guaranty by the Company guaranteeing the obligations of the borrowers under the facility agreement. In addition, we must ensure that the aggregate fair market value of Constellation and Commander is at least 125% of the outstanding principal balance of the loan under the BALCAP Facility.

The corporate financial covenants related to the BALCAP Facility are identical to those in the 2015 AR Facility. We were in compliance with all financial covenants as of December 31, 2021.

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, 2021 for information on the refinancing of our 2014-built VLGC, 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, 2021 for information on the refinancing of our 2015-built VLGC, 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, 2021 for information on the refinancing of our 2015-built VLGC, Corvette, pursuant to a memorandum of agreement and a bareboat charter agreement (the “Corvette Japanese Financing”).
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CMNL/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, 2021 for information on the refinancing our 2007-built VLGC, Captain John NP, pursuant to a memorandum of agreement and a bareboat charter agreement (the “CMNL/CJNP Japanese Financing”). On November 30, 2021, we completed the repurchase of Captain John NP and repaid the CMNL/CJNP Japanese Financing for $15.8 million in cash and application of the deposit amount of $25.2 million, which had been retained by the buyer in connection with the financing towards the repurchase of the vessel.

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, 2021 for information on the refinancing our 2008-built VLGC, Captain Nicholas ML, pursuant to a memorandum of agreement and a bareboat charter agreement (the “CNML Japanese Financing”). On October 24, 2021, we exercised our repurchase option under the CNML Japanese Financing by providing a three-month notice to the owners of Captain Nicholas ML of our intent to repurchase the vessel for approximately $17.8 million in cash and application of the deposit amount of $27.9 million, which had been retained by the buyer in connection with the CNML Japanese Financing, towards the repurchase of the vessel. We have reclassified $16.4 million from long-term debt to current portion of long-term debt as the repurchase transaction was completed on January 26, 2022.

Cresques 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, 2021 for information on the refinancing our 2015-built VLGC, Cresques, pursuant to a memorandum of agreement and a bareboat charter agreement (the “Cresques Japanese Financing”).

Debt Obligations

The table below presents our debt obligations:

	    	December 31, 2021	    	March 31, 2021	 	
2015 AR Facility								
Commercial Financing		$	134,396,466		$	155,205,698		
KEXIM Direct Financing			68,911,186			89,474,512		
KEXIM Guaranteed			72,958,655			93,997,081		
K-sure Insured			35,828,187			46,333,895		
Total 2015 AR Facility		$	312,094,494		$	385,011,186		
								
Japanese Financings								
Corsair Japanese Financing		$	38,458,334		$	40,895,833		
Concorde Japanese Financing			43,076,923			45,500,000		
Corvette Japanese Financing			43,615,385			46,038,462		
CMNL/CJNP Japanese Financing			—			16,706,845		
CNML Japanese Financing			17,801,637			18,855,655		
Cresques Japanese Financing			46,515,000			49,080,000		
Total Japanese Financings		$	189,467,279		$	217,076,795		
								
BALCAP Facility		$	83,400,000		$	—		
								
Total debt obligations		$	584,961,773		$	602,087,981		
Less: deferred financing fees			8,693,950			10,615,937		
Debt obligations—net of deferred financing fees		$	576,267,823		$	591,472,044		
								
Presented as follows:								
Current portion of long-term debt	 	$	69,530,028		$	51,820,283		
Long-term debt—net of current portion and deferred financing fees	 		506,737,795			539,651,761		
Total	 	$	576,267,823		$	591,472,044		

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

	    	
Financing		
		costs		
Balance, April 1, 2021		$	10,615,937		
Additions			1,310,639		
Amortization			(3,232,626)		
Balance, December 31, 2021	 	$	8,693,950		

9. Leases

Time charter-in contracts

During the nine months ended December 31, 2021, we time chartered-in a VLGC that was delivered to us in October 2021 with a duration of 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 December 31, 2021, right-of-use assets and lease liabilities of $10.2 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 $5.5 million and $8.7 million for the three months ended December 31, 2021 and 2020, respectively, and $12.3 million and $20.2 million for the nine months ended December 31, 2021 and 2020, respectively.

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

		Three months ended		Nine months ended	
		December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020	
Charter hire expenses		$	4,917,012		$	4,392,132		$	10,829,050		$	13,626,580	

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 nine months ended December 31, 2021, 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		Nine months ended	
		December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020	
Operating lease rent expense		$	148,384		$	139,568		$	464,394		$	401,435	

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 of our office leases and time chartered-in vessel as of December 31, 2021 is 12.9 months.

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Our operating lease right-of-use asset and lease liabilities as of December 31, 2021 were as follows:

Description		Location on Balance Sheet		December 31, 2021	
Assets:						
Office leases		Operating lease right-of-use assets		$	303,810	
Time charter-in VLGCs		Operating lease right-of-use assets		$	10,213,986	
						
Liabilities:						
Current						
Office Leases		Current portion of long-term operating leases		$	291,241	
Time charter-in VLGCs		Current portion of long-term operating leases		$	9,413,540	

Long-term						
Office Leases		Long-term operating leases		$	2,347	
Time charter-in VLGCs		Long-term operating leases		$	800,446	

Maturities of operating lease liabilities as of December 31, 2021 were as follows:

Less than one year		$	9,923,917	
One to three years			819,233	
Total undiscounted lease payments			10,743,150	
Less: imputed interest			(235,576)	
Carrying value of operating lease liabilities		$	10,507,574	

10. Dividends
On July 30, 2021, we announced that our Board of Directors declared a cash dividend of $1.00 per share of the Company’s common stock to all shareholders of record as of the close of business on August 9, 2021, totaling $40.4 million. We paid $40.2 million on September 8, 2021 and the remaining $0.2 million is deferred until certain shares of restricted stock vest.

This was an irregular dividend. All declarations of dividends are subject to the determination and discretion of the Company’s Board of Directors based on its consideration of various factors, including the Company’s results of operations, financial condition, level of indebtedness, anticipated capital requirements, contractual restrictions, restrictions in its debt agreements, restrictions under applicable law, its business prospects and other factors that the Company’s Board of Directors may deem relevant.

11. Stock Repurchase Authority

On August 5, 2019, our Board of Directors authorized the repurchase of up to $50 million of our common shares through the period ended December 31, 2020 (the “2019 Common Share Repurchase Authority”). On February 3, 2020, our Board of Directors authorized an increase to our 2019 Common Share Repurchase Authority to repurchase up to an additional $50 million of our common shares. On December 29, 2020, our Board of Directors authorized an extension of and an increase to the remaining authorization of $41.4 million under our 2019 Common Share Repurchase Authority, which was set to expire on December 31, 2020. Following this Board action, we were authorized to repurchase up to $50.0 million of our common shares from December 29, 2020 through December 31, 2021. As of December 31, 2021, our total purchases under this authority totaled 7.0 million of our common shares for an aggregate consideration of $81.0 million. Our 2019 Common Share Repurchase Authority expired on December 31, 2021. Under this authorization, when in force, purchases were 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 amount and timing of share repurchases are subject to capital availability, our determination that share repurchases are in the best interest of our shareholders, and market conditions. We are not obligated to make any common share repurchases.

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12. 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 $0.7 million and $0.5 million for the three months ended December 31, 2021 and 2020, respectively, and $2.6 million and $2.9 million for the nine months ended December 31, 2021 and 2020 respectively. Unrecognized compensation cost was $2.2 million as of December 31, 2021 and will be recognized over a remaining weighted average life of 2.02 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, 2021.

In August 2021, we granted an aggregate of 180,900 shares of restricted stock vesting ratably on the grant date and on the first, second, and third anniversary of that date and 36,700 restricted stock units to certain of our officers and employees vesting ratably on the first, second, and third anniversaries of the grant date. The final tranche of restricted stock and restricted stock units granted to our named executive officers shall vest when, and only if, the volume weighted average price of our common shares over any consecutive 15-day period prior to the final business day of the tenth fiscal quarter following the grant date equals or exceeds, 95% of the book value of one of our shares. 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.

A summary of the activity of restricted shares and units awarded under our equity incentive plan as of December 31, 2021 and changes during the nine months ended December 31, 2021, is as follows:

							
	    		    	Weighted-Average	 	
				Grant-Date		
Incentive Share/Unit Awards		Number of Shares/Units		Fair Value		
Unvested as of April 1, 2021		358,171		$	8.23		
Granted		217,600			13.10		
Vested		(242,581)			9.40		
Forfeited		(4,100)			10.24		
Unvested as of December 31, 2021		329,090		$	10.56		

13. Revenues

Revenues comprise the following:

	    	Three months ended	    	Nine months ended	 	
		December 31, 2021	    	December 31, 2020		December 31, 2021	    	December 31, 2020	 	
Net pool revenues—related party		$	62,856,243		$	82,659,967		$	174,739,894		$	199,312,944		
Time charter revenues			5,301,134			4,665,664			15,915,876			13,928,732		
Other revenues, net			442,405	 		1,153,393			3,981,608	 		3,112,949		
Total revenues		$	68,599,782	 	$	88,479,024		$	194,637,378	 	$	216,354,625		

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, 2021.

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

14.  Financial Instruments and Fair Value Disclosures

Our principal financial assets consist of cash and cash equivalents, amounts due from related parties, investment securities, and trade accounts receivable. Our principal financial liabilities consist of long-term debt, accounts payable, amounts due to related parties, accrued liabilities, and derivative instruments.
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	(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, and cash and cash equivalents. 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 AR 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, 2021 for information on our interest rate swap agreements related to the 2015 AR Facility.	

	(c)	Fair value measurements: Interest rate swaps are stated at fair value, which is determined using a discounted cash flow approach based on market‑based 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 June 2021, our interest rate swap with the ABN AMRO Capital USA LLC was novated to Citibank N.A. with a decrease in the fixed rate from 1.4675% to 1.2370%.	

Additionally, we have previously taken positions in forward freight agreements (“FFAs”) as economic hedges to reduce the risk related to vessels trading in the spot market, including vessels operating in the Helios Pool, and to take advantage of fluctuations in spot market rates. 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. Settlements of FFAs are recorded in realized gain/(loss) on derivatives. FFAs are considered Level 2 items in accordance with the fair value hierarchy. We had no outstanding FFAs as of December 31, 2021, but we have taken positions in FFAs in the past and we may do so again in the future.

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:

			December 31, 2021			March 31, 2021		
		Current assets		Current liabilities		Current assets		Current liabilities		
Derivatives not designated as hedging instruments	    	Derivative instruments	    	Derivative instruments	    	Derivative instruments	    	Derivative instruments		
Interest rate swap agreements		$	—		$	205,869		$	—		$	1,100,529		
														
			December 31, 2021			March 31, 2021	 	
		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		$	—		$	144,057		$	—		$	3,454,862		

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

				Three months ended		
Derivatives not designated as hedging instruments	    	Location of gain/(loss) recognized	    	December 31, 2021	    	December 31, 2020	 	
Forward freight agreements—change in fair value		Unrealized gain/(loss) on derivatives		$	—		$	136,632		
Interest rate swaps—change in fair value	 	Unrealized gain/(loss) on derivatives	 		3,056,741			342,902		
Forward freight agreements—realized gain/(loss)		Realized loss on derivatives			—			153,919		
Interest rate swaps—realized gain/(loss)	 	Realized loss on derivatives	 		(895,782)			(914,910)		
Gain/(loss) on derivatives, net			 	$	2,160,959		$	(281,457)		

	    		    	Nine months ended	 	
Derivatives not designated as hedging instruments	    	Location of gain/(loss) recognized	    	December 31, 2021	    	December 31, 2020	 	
Forward freight agreements—change in fair value		Unrealized gain/(loss) on derivatives		$	—		$	2,605,442		
Interest rate swaps—change in fair value	 	Unrealized gain/(loss) on derivatives	 		4,205,465			1,346,972		
Forward freight agreements—realized gain/(loss)		Realized loss on derivatives			—			(788,670)		
Interest rate swaps—realized gain/(loss)	 	Realized loss on derivatives	 		(2,714,337)			(2,908,245)		
Gain/(loss) on derivatives, net			 	$	1,491,128		$	255,499		

As of December 31, 2021 and March 31, 2021, no fair value measurements for assets or liabilities under Level
1 or Level 3 were recognized in the consolidated balance sheets with the exception of cash and cash equivalents, restricted cash, and investment securities. We did not have any other assets or liabilities measured at fair value on a non-recurring basis during the three and nine months ended December 31, 2021 and 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 investment 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 investment securities are considered Level 1 items.	

The summary of gains and losses on our investment securities included in other gain/(loss), net on our consolidated statements of operations for the periods presented is as follows:

		Three months ended		
	    	December 31, 2021	    	December 31, 2020		
Unrealized gain/(loss) on investment securities		$	(1,179,297)		$	358,678		
Less: Realized gain/(loss) on investment securities	 		(305)			—		
Net gain/(loss) on investment securities	 	$	(1,179,602)		$	358,678		
								
		Nine months ended		
	    	December 31, 2021	    	December 31, 2020	 	
Unrealized gain/(loss) on investment securities		$	(1,710,348)		$	395,931		
Less: Realized gain/(loss) on investment securities	 		447,255			—		
Net gain/(loss) on investment securities	 	$	(1,263,093)		$	395,931		

We have long-term bank debt and the Cresques Japanese Financing for which we believe the carrying values approximate their fair values as the loans 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, CMNL/CJNP Japanese Financing, and CNML Japanese Financing (collectively, the “Japanese Financings”) and the BALCAP Facility that incur interest at a fixed-rate with amortizing principal amounts. The Japanese Financings and the BALCAP Facility are considered Level 2 items in accordance with the fair value hierarchy and the fair value of each is based on
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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:

		December 31, 2021			March 31, 2021		
	    	Carrying Value	    	Fair Value		    	Carrying Value	    	Fair Value		
Corsair Japanese Financing		$	38,458,334		$	40,345,097			$	40,895,833		$	44,298,064		
Concorde Japanese Financing			43,076,923			45,501,855				45,500,000			49,791,680		
Corvette Japanese Financing			43,615,385			46,096,511				46,038,462			50,376,434		
CMNL/CJNP Japanese Financing			—			—				16,706,845			18,792,993		
CNML Japanese Financing			17,801,637			18,917,200				18,855,655			21,195,305		
BALCAP Facility		$	83,400,000		$	83,400,000			$	—		$	—		

15. 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		Nine months ended		
(In U.S. dollars except share data)		December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020		
Numerator:														
Net income		$	16,580,885		$	35,825,264		$	36,551,788		$	48,531,219		
Denominator:														
Basic weighted average number of common shares outstanding			39,890,674			50,255,908			40,305,902			50,511,473		
Effect of dilutive restricted stock and restricted stock units			134,725			112,484			154,763			94,512		
Diluted weighted average number of common shares outstanding			40,025,399			50,368,392			40,460,665			50,605,985		
EPS:														
Basic		$	0.42		$	0.71		$	0.91		$	0.96		
Diluted		$	0.41		$	0.71		$	0.90		$	0.96		

No shares of unvested restricted stock were excluded from the calculation of diluted EPS for the three and nine months ended December 31, 2021 and 2020.

16.  Commitments and Contingencies

Commitments under Contracts for Ballast Water Management Systems Purchases

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

		December 31, 2021		
Less than one year		$	405,030		
Total		$	405,030		

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Commitments under Bareboat Charter Header Agreement

On March 31, 2021, we entered into a thirteen-year bareboat charter agreement for a newbuilding dual-fuel VLGC that is expected to be delivered from Kawasaki Heavy Industries in March 2023. The structure of the financing of the newbuilding is analogous to that of our Japanese Financings in which a third-party will purchase the vessel and from whom we will bareboat charter the vessel. As part of the agreement, we control the building of the vessel and the use of the vessel after it is delivered. The vessel will be built to our specifications; we will supervise the building of the vessel to meet these specifications; and we will technically and commercially manage the vessel after its delivery. Under the agreement, we had commitments of $24.0 million of predelivery costs as well as the cost of additional features to meet our specifications and supervision costs for an aggregate total of approximately $25.0 million. As of December 31, 2021, we had approximately $9.0 million of commitments under the agreement outstanding that we expect to settle with an installment payment during the year ending March 31, 2023. Construction of the vessel commenced in December 2021.

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

		December 31, 2021		
Less than one year		$	217,385		
Total		$	217,385		

Time Charter-in

During the nine months ended December 31, 2021, we time chartered-in three newbuilding dual-fuel Panamax LPG vessels with purchase options that are scheduled to be delivered in the second and third calendar quarters of 2023 for a period of seven years each and also time chartered-in a VLGC for one year that was delivered to us in October 2021. We had the following time charter-in commitments relating to VLGCs:

		December 31, 2021		
Less than one year		$	18,119,893		
One to three years			61,293,000		
Three to five years			64,080,000		
Thereafter			99,710,000		
Total		$	243,202,893		

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:

		December 31, 2021		
Less than one year		$	19,608,078		
One to three years			2,150,000		
Total		$	21,758,078		

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 other than that described below, which is reasonably possible and should be disclosed or probable and for which a provision should be established in the unaudited interim condensed consolidated financial statements.

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In January 2021, subsequent to the delivery of one of our VLGCs on time charter, a dispute arose relating to the vessel’s readiness to lift a cargo scheduled by the charterer. The claim was settled for $4.0 million during the three months ended December 31, 2021.

17. Subsequent Events
On January 4, 2022, we announced that our Board of Directors declared a cash dividend of $1.00 per share of the Company’s common stock to all shareholders of record as of the close of business on January 14, 2022, totaling $40.1 million. We paid $39.9 million on January 25, 2022 and the remaining $0.2 million is deferred until certain shares of restricted stock vest.

This was an irregular dividend. All declarations of dividends are subject to the determination and discretion of the Company’s Board of Directors based on its consideration of various factors, including the Company’s results of operations, financial condition, level of indebtedness, anticipated capital requirements, contractual restrictions, restrictions in its debt agreements, restrictions under applicable law, its business prospects and other factors that the Company’s Board of Directors may deem relevant.

On February 2, 2022, our Board of Directors authorized the repurchase of up to $100.0 million of our common shares (the “2022 Common Share Repurchase Authority”). Under the authorization, when in force, 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 amount and timing of share repurchases are subject to capital availability, our determination that share repurchases are in the best interest of our shareholders, and market conditions. No repurchases have been made under the 2022 Common Share Repurchase Authority to date. We are not obligated to make any common share repurchases.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion contains forward-looking statements that involve risks and uncertainties. As a result of many factors, such as those set forth under “Item 1A. Risk Factors” herein and in our Annual Report on Form 10-K for the year ended March 31, 2021, our actual results may differ materially from those anticipated in these forward-looking statements. Please also see the section “Forward-Looking Statements” included in this quarterly report.

Overview

We are a Marshall Islands corporation headquartered in the United States and primarily focused on owning and operating VLGCs, each with a cargo-carrying capacity of greater than 80,000 cbm, in the LPG shipping industry. Our fleet currently consists of twenty-three VLGC carriers, including nineteen fuel-efficient 84,000 cbm ECO-VLGCs, two 82,000 cbm VLGCs, and two time chartered-in ECO-VLGCs. Thirteen of our ECO-VLGCs, including one time chartered-in vessel, are currently equipped with scrubbers to reduce sulfur emissions.

Dorian’s nineteen ECO-VLGCs, which incorporate fuel efficiency, emission-reducing technologies, and certain custom features, were acquired by us for an aggregate purchase price of $1.4 billion and delivered to us between July 2014 and February 2016, seventeen of which were delivered during calendar year 2015 or later.

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 a variable rate time charter to be entered into with owners or disponent owners of VLGCs, a commercial pool of VLGCs whereby revenues and expenses are shared. The vessels entered into the Helios Pool may operate either in the spot market, pursuant to contracts of affreightment, or COAs, or on time charters of two years' duration or less. As of January 31, 2022, twenty-one of our twenty-three VLGCs were employed in the Helios Pool, including our two time chartered-in VLGCs.

Our customers, either directly or through the Helios Pool, include or have included global energy companies such as Exxon Mobil Corp., Chevron Corp., China International United Petroleum & Chemicals Co., Ltd., Royal Dutch Shell plc, Equinor ASA, Total S.A., and Sunoco LP, commodity traders such as Glencore plc, Itochu Corporation, Bayegan Group, Vilma Oil SL, and the Vitol Group and importers such as E1 Corp., Indian Oil Corporation, SK Gas Co. Ltd., Astomos Energy Corporation, and Oriental Energy Company Ltd. or subsidiaries of the foregoing.

We continue to pursue a balanced chartering strategy by employing our vessels on a mix of multi-year time charters, some of which may include a profit-sharing component, shorter-term time charters, spot market voyages and COAs. Currently, two of our VLGCs are on fixed-rate time charters outside of the Helios Pool. See “Our Fleet” below for more information and the definition of Pool-TCO.

Recent Developments

On January 4, 2022, we announced that our Board of Directors declared a cash dividend of $1.00 per share of the Company’s common stock to all shareholders of record as of the close of business on January 14, 2022, totaling $40.1 million. We paid $39.9 million on January 25, 2022 and the remaining $0.2 million is deferred until certain shares of restricted stock vest. This was an irregular dividend.

On February 2, 2022, our Board of Directors authorized the repurchase of up to $100.0 million of our common shares under the 2022 Common Share Repurchase Authority. Under the authorization, when in force, 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 amount and timing of share repurchases are subject to capital availability, our determination that share repurchases are in the best interest of our shareholders, and market conditions. No repurchases have been made under the 2022 Common Share Repurchase Authority to date. We are not obligated to make any common share repurchases.

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Our Fleet

The following table sets forth certain information regarding our fleet as of January 31, 2022.

		Capacity						ECO		Scrubber				Charter	 	
		(Cbm)		Shipyard		Year Built		Vessel(1)		Equipped		Employment		Expiration(2)	 	
Dorian VLGCs																
Captain John NP	 	82,000	 	Hyundai	 	2007	 	—	 	—	 	Pool(4)	 	—		
Captain Nicholas ML	 	82,000	 	Hyundai	 	2008	 	—	 	—	 	Pool-TCO(5)	 	Q1 2022		
Comet	 	84,000	 	Hyundai	 	2014	 	X	 	X	 	Pool(4)	 	—		
Corsair(3)	 	84,000	 	Hyundai	 	2014	 	X	 	X	 	Time Charter(6)	 	Q4 2022		
Corvette(3)	 	84,000	 	Hyundai	 	2015	 	X	 	X	 	Pool(4)	 	—		
Cougar	 	84,000	 	Hyundai	 	2015	 	X	 	—	 	Pool(4)	 	—		
Concorde(3)	 	84,000	 	Hyundai	 	2015	 	X	 	X	 	Time Charter(7)	 	Q1 2023		
Cobra	 	84,000	 	Hyundai	 	2015	 	X	 	—	 	Pool-TCO(5)	 	Q2 2022		
Continental	 	84,000	 	Hyundai	 	2015	 	X	 	—	 	Pool(4)	 	—		
Constitution	 	84,000	 	Hyundai	 	2015	 	X	 	X	 	Pool(4)	 	—		
Commodore	 	84,000	 	Hyundai	 	2015	 	X	 	—	 	Pool-TCO(5)	 	Q1 2023		
Cresques(3)	 	84,000	 	Daewoo	 	2015	 	X	 	X	 	Pool(4)	 	—		
Constellation	 	84,000	 	Hyundai	 	2015	 	X	 	X	 	Pool(4)	 	—		
Cheyenne	 	84,000	 	Hyundai	 	2015	 	X	 	X	 	Pool(4)	 	—		
Clermont	 	84,000	 	Hyundai	 	2015	 	X	 	X	 	Pool(4)	 	—		
Cratis	 	84,000	 	Daewoo	 	2015	 	X	 	X	 	Pool(4)	 	—		
Chaparral	 	84,000	 	Hyundai	 	2015	 	X	 	—	 	Pool(4)	 	—		
Copernicus	 	84,000	 	Daewoo	 	2015	 	X	 	X	 	Pool(4)	 	—		
Commander	 	84,000	 	Hyundai	 	2015	 	X	 	X	 	Pool(4)	 	—		
Challenger	 	84,000	 	Hyundai	 	2015	 	X	 	—	 	Pool-TCO(5)		Q4 2022		
Caravelle	 	84,000	 	Hyundai	 	2016	 	X	 	—	 	Pool(4)	 	—		
Total	 	1,760,000														
																
Time chartered-in VLGCs																
Future Diamond(8)		80,876		Hyundai		2020		X		X		Pool(4)	 	—		
Astomos Venus(9)		77,367		Mitsubishi		2016		X		—		Pool(4)	 	—		

(1)	Represents vessels with very low revolutions per minute, long-stroke, electronically controlled engines, larger propellers, advanced hull design, and low friction paint.	

(2)	Represents calendar year quarters.	

(3)	Operated pursuant to a bareboat chartering agreement. See Note 8 to our unaudited interim condensed consolidated financial statements included herein.	

(4)	“Pool” indicates that the vessel operates in the Helios Pool on a voyage charter with a third party and we receive a portion of the pool profits calculated according to a formula based on the vessel’s pro rata performance in the pool.	

(5)	“Pool-TCO” indicates that the vessel is operated in the Helios Pool on a time charter out to a third party and we receive a portion of the pool profits calculated according to a formula based on the vessel’s pro rata performance in the pool.	

(6)	Currently on a time charter with an oil major that began in November 2019.	

(7)	Currently on time charter with a major oil company that began in March 2019.	

(8)	Currently time chartered-in to our fleet with an expiration during the first calendar quarter of 2023.	

(9)	Currently time chartered-in to our fleet with an expiration during the fourth calendar quarter of 2022.	
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Results of Operations – For the three months ended December 31, 2021 as compared to the three months ended December 31, 2020

Revenues

The following table compares our revenues for the three months ended December 31:

								Increase /		Percent		
	    	2021	    	2020	    	(Decrease)	    	Change		
Net pool revenues—related party	 	$	62,856,243	 	$	82,659,967	 	$	(19,803,724)		(24.0)	%	
Time charter revenues		 	5,301,134		 	4,665,664		 	635,470		13.6	%	
Other revenues, net		 	442,405		 	1,153,393		 	(710,988)		(61.6)	%	
Total	 	$	68,599,782	 	$	88,479,024	 	$	(19,879,242)		(22.5)	%	

Revenues, which represent net pool revenues—related party, time charters and other revenues, net, were $68.6 million for the three months ended December 31, 2021, a decrease of $19.9 million, or 22.5%, from $88.5 million for the three months ended December 31, 2020 primarily due to a decrease in average TCE rates despite an increase in fleet utilization. Average TCE rates decreased by $8,790 from $42,298 for the three months ended December 31, 2020 to $33,508 for the three months ended December 31, 2021, primarily due to higher bunker prices along with reduced spot rates. The average price of very low sulfur fuel oil (expressed as U.S. dollars per metric ton), from Singapore and Fujairah increased from $361 during the three months ended December 31, 2020 to $609 during the three months ended December 31, 2021. The Baltic Exchange Liquid Petroleum Gas Index, an index published daily by the Baltic Exchange for the spot market rate for the benchmark Ras Tanura-Chiba route (expressed as U.S. dollars per metric ton), averaged $59.252 during the three months ended December 31, 2021 compared to an average of $75.797 for the three months ended December 31, 2020. Our fleet utilization increased from 96.2% during the three months ended December 31, 2020 to 98.5% during the three months ended December 31, 2021.

Charter Hire Expenses

Charter hire expenses for the vessels chartered in from third parties were $4.9 million and $4.4 million for the three months ended December 31, 2021 and 2020, respectively. The increase of $0.5 million, or 12.0%, was mainly caused by a higher charter-in rate on the vessel we took delivery of in October 2021 compared to the vessel that was chartered-in during the three months ended December 31, 2020 and subsequently redelivered.

Vessel Operating Expenses

Vessel operating expenses were $18.2 million during the three months ended December 31, 2021, or $9,423 per vessel per calendar day, which is calculated by dividing vessel operating expenses by calendar days for the relevant time-period for the technically-managed vessels that were in our fleet. Vessel operating expenses for the three months ended December 31, 2020 were $19.2 million. The decrease of $1.0 million was due to a reduction of calendar days for our fleet from 2,024 during the three months ended December 31, 2020 to 1,932 during the three months ended December 31, 2021, driven by the sale of Captain Markos NL. Vessel operating expenses per vessel per calendar day remained relatively constant, decreasing by $64 from $9,487 for the three months ended December 31, 2020.

General and Administrative Expenses

General and administrative expenses were $5.9 million for the three months ended December 31, 2021, an increase of $0.4 million, or 5.7%, from $5.5 million for the three months ended December 31, 2020. This increase was driven by increases of $0.4 million in legal and professional fees and $0.1 million in stock-based compensation related to the accelerated vesting of restricted stock grants for certain employees in connection with the transfer of operations from our London office to our Copenhagen office.

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Interest and Finance Costs

Interest and finance costs amounted to $7.4 million for the three months ended December 31, 2021, an increase of $1.3 million, or 21.8%, from $6.1 million for the three months ended December 31, 2020. The increase of $1.3 million during this period was mainly due to increases of $1.1 million in amortization of deferred financing fees and $0.2 million in interest incurred on our long-term debt. The increase in amortization mainly resulted from accelerated amortization of $1.0 million related to the refinancing of Commander and Constellation during the three months ended December 31, 2021. The increase in interest on our long-term debt was driven by the settlement of certain fixed interest rate obligations related to the prepayment of Captain John NP, partially offset by a reduction of average indebtedness and reduced floating interest rates. Average indebtedness, excluding deferred financing fees, decreased from $626.0 million for the three months ended December 31, 2020 to $576.0 million for the three months ended December 31, 2021. As of December 31, 2021, the outstanding balance of our long-term debt, net of deferred financing fees of $8.7 million, was $576.3 million.

Unrealized Gain on Derivatives

Unrealized gain on derivatives amounted to $3.1 million for the three months ended December 31, 2021, compared to $0.5 million for the three months ended December 31, 2020. The favorable $2.6 million difference is primarily attributable to a $2.7 million increase in favorable fair value changes to our interest rate swaps resulting from changes in forward LIBOR yield curves and certain of our swaps nearing maturity, partially offset by a decrease of $0.1 million in favorable changes to our FFA positions during the three months ended December 31, 2020 that did not recur in the current period.

Results of Operations – For the nine months ended December 31, 2021 as compared to the nine months ended December 31, 2020
Revenues

The following table compares our revenues for the nine months ended December 31:

								Increase /		Percent		
	    	2021	    	2020	    	(Decrease)	    	Change		
Net pool revenues—related party	 	$	174,739,894	 	$	199,312,944	 	$	(24,573,050)		(12.3)	%	
Time charter revenues		 	15,915,876		 	13,928,732		 	1,987,144		14.3	%	
Other revenues, net		 	3,981,608		 	3,112,949		 	868,659		27.9	%	
Total	 	$	194,637,378	 	$	216,354,625	 	$	(21,717,247)		(10.0)	%	

Revenues, which represent net pool revenues—related party, time charters and other revenues, net, were $194.6 million for the nine months ended December 31, 2021, a decrease of $21.8 million, or 10.0%, from $216.4 million for the nine months ended December 31, 2020 primarily due to a decrease in average TCE rates, partially offset by an increase in utilization. Average TCE rates decreased by $4,237 from $36,271 for the nine months ended December 31, 2020 to $32,034 for the nine months ended December 31, 2021. The reduction in TCE rates is attributable to higher bunker prices along with reduced spot rates. The average price of very low sulfur fuel oil (expressed as U.S. dollars per metric ton), from Singapore and Fujairah increased from $321 during the nine months ended December 31, 2020 to $552 during the nine months ended December 31, 2021. The Baltic Exchange Liquid Petroleum Gas Index, an index published daily by the Baltic Exchange for the spot market rate for the benchmark Ras Tanura-Chiba route (expressed as U.S. dollars per metric ton), averaged $51.201 during the nine months ended December 31, 2021 compared to an average of $56.189 for the nine months ended December 31, 2020. Our fleet utilization increased from 92.0% during the nine months ended December 31, 2020 to 96.8% during the nine months ended December 31, 2021.

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Charter Hire Expenses

Charter hire expenses for the vessels chartered in from third parties were $10.8 million and $13.6 million for the nine months ended December 31, ended 2021 and 2020, respectively. The decrease of $2.8 million, or 20.5%, was mainly caused by a decrease in time chartered-in days from 560 for the nine months ended December 31, 2020 to 399 for the nine months ended December 31, 2021, due to the redelivery of one time chartered in vessel during the period, partially offset by a slightly higher charter rate on the vessel chartered in during October 2021.

Vessel Operating Expenses

Vessel operating expenses were $56.9 million during the nine months ended December 31, 2021, or $9,590 per vessel per calendar day, which is calculated by dividing vessel operating expenses by calendar days for the relevant time-period for the technically-managed vessels that were in our fleet. Vessel operating expenses for the nine months ended December 31, 2020 were $58.0 million. The decrease of $1.1 million was due to a reduction of calendar days for our fleet from 6,050 during the nine months ended December 31, 2020 to 5,935 during the nine months ended December 31, 2021, driven by the sale of Captain Markos NL. Vessel operating expenses per vessel per calendar day remained relatively constant, decreasing by $1 from $9,591 for the nine months ended December 31, 2020.

General and Administrative Expenses

General and administrative expenses were $23.3 million for the nine months ended December 31, 2021, an increase of $0.5 million, or 2.2%, from $22.8 million for the nine months ended December 31, 2020. This increase was driven by increases of $0.3 million in salaries, wages and benefits and $0.3 million in legal and professional fees.

Interest and Finance Costs

Interest and finance costs amounted to $18.6 million for the nine months ended December 31, 2021, a decrease of $3.2 million, or 14.7%, from $21.8 million for the nine months ended December 31, 2020. The decrease of $3.2 million during this period was due to (i) a decrease of $2.3 million in interest incurred on our long-term debt, primarily resulting from a reduction of average indebtedness and a reduced margin on the commercial tranche of the 2015 AR Facility due to our Security Leverage Ratio being less than 40%, partially offset by the settlement of certain fixed interest rate obligations related to the prepayment of Captain John NP, and (ii) a decrease of $0.9 million in amortization of deferred financing fees and loan expenses. Average indebtedness, excluding deferred financing fees, decreased from $640.6 million for the nine months ended December 31, 2020 to $587.7 million for the nine months ended December 31, 2021. As of December 31, 2021, the outstanding balance of our long-term debt, net of deferred financing fees of $8.7 million, was $576.3 million.

Unrealized Gain on Derivatives

Unrealized gain on derivatives amounted to $4.2 million for the nine months ended December 31, 2021, compared to $4.0 million for the nine months ended December 31, 2020. The favorable $0.2 million difference is primarily attributable a $2.8 million increase in favorable fair value changes to our interest rate swaps resulting from changes in forward LIBOR yield curves and the certain of our swaps nearing maturity, partially offset by a decrease of $2.6 million in favorable changes to our FFA positions during the nine months ended December 31, 2020 that did not recur in the current period.

Realized Loss on Derivatives

Realized loss on derivatives was $2.7 million for the nine months ended December 31, 2021 compared to $3.7 million for the nine months ended December 31, 2020. The favorable $1.0 million change is primarily attributable to (1) unfavorable settlements of $0.8 million on our FFA positions during the nine months ended December 31, 2020 that did not recur in the nine months ended December 31, 2021, and (ii) a $0.2 million reduction of realized losses on our interest rate swaps.

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Gain on Disposal of Vessel
 
Gain on disposal of vessel amounted to $3.5 million for the nine months ended December 31, 2021 and was attributable to the sale of Captain Markos NL. There was no gain on disposal of vessel for the nine months ended December 31, 2020.

Operating Statistics and Reconciliation of GAAP to non-GAAP Measures

To supplement our financial statements presented in accordance with U.S.GAAP, we present certain operating statistics and non-GAAP measures to assist in the evaluation of our business performance. These non-GAAP measures include Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) and time charter equivalent rate. These non-GAAP measures may not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as a substitute for net income and revenues, which are the most directly comparable measures of performance prepared in accordance with GAAP.  

We use these non-GAAP measures in assessing the performance of our ongoing operations and in planning and forecasting future periods. These adjusted measures provide a more comparable basis to analyze operating results and earnings and are measures commonly used by shareholders to measure our performance. We believe that these adjusted measures, when considered together with the corresponding U.S. GAAP measures and the reconciliations to those measures, provide meaningful supplemental information to assist investors and analysts in understanding our business results and assessing our prospects for future performance. 

		Three months ended		Nine months ended		
(in U.S. dollars, except fleet data)		December 31, 2021	    	December 31, 2020	    	December 31, 2021	    	December 31, 2020	 	
Financial Data														
Adjusted EBITDA(1)		$	39,370,204		$	60,131,348		$	107,067,810		$	123,540,888		
Fleet Data														
Calendar days(2)		 	1,932		 	2,024		 	5,935		 	6,050		
Time chartered-in days(3)		 	169		 	184		 	399		 	560		
Available days(4)		 	2,054		 	2,156		 	6,176		 	6,414		
Operating days(5)(8)		 	2,024		 	2,074		 	5,976		 	5,898		
Fleet utilization(6)(8)			98.5	%  		96.2	%  		96.8	%  		92.0	%	
Average Daily Results														
Time charter equivalent rate(7)(8)		$	33,508		$	42,298		$	32,034		$	36,271		
Daily vessel operating expenses(9)		$	9,423		$	9,487		$	9,590		$	9,591		

	(1)	Adjusted EBITDA is an unaudited non-U.S. GAAP measure and represents net income/(loss) before interest and finance costs, unrealized (gain)/loss on derivatives, realized (gain)/loss on interest rate swaps, stock-based compensation expense, impairment, and depreciation and amortization and is used as a supplemental measure by management to assess our financial and operating performance. We believe that adjusted EBITDA assists our management and investors by increasing the comparability of our performance from period to period. This increased comparability is achieved by excluding the potentially disparate effects between periods of derivatives, interest and finance costs, stock-based compensation expense, impairment, and depreciation and amortization expense, which items are affected by various and possibly changing financing methods, capital structure and historical cost basis and which items may significantly affect net income/(loss) between periods. We believe that including adjusted EBITDA as a financial and operating measure benefits investors in selecting between investing in us and other investment alternatives.	

Adjusted EBITDA has certain limitations in use and should not be considered an alternative to net income/(loss), operating income, cash flow from operating activities or any other measure of financial performance presented in accordance with U.S. GAAP. Adjusted EBITDA excludes some, but not all, items that affect net income/(loss). Adjusted EBITDA as presented below may not be computed consistently with similarly titled measures of other companies and, therefore, might not be comparable with other companies.

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The following table sets forth a reconciliation of net income to Adjusted EBITDA (unaudited) for the periods presented:

		Three months ended		Nine months ended		
(in U.S. dollars)	    	December 31, 2021	    	December 31, 2020	    	December 31, 2021	    	December 31, 2020	 	
Net income		$	16,580,885		$	35,825,264		$	36,551,788		$	48,531,219		
Interest and finance costs		 	7,412,231		 	6,087,193		 	18,619,712		 	21,839,573		
Unrealized gain on derivatives		 	(3,056,741)		 	(479,534)		 	(4,205,465)		 	(3,952,414)		
Realized loss on interest rate swaps		 	895,782		 	914,910			2,714,337			2,908,245		
Stock-based compensation expense		 	678,823		 	530,068		 	2,616,201		 	2,867,691		
Depreciation and amortization			16,859,224			17,253,447			50,771,237			51,346,574		
Adjusted EBITDA		$	39,370,204		$	60,131,348		$	107,067,810		$	123,540,888		

(2)	We define calendar days as the total number of days in a period during which each vessel in our fleet was owned or operated pursuant to a bareboat charter. Calendar days are an indicator of the size of the fleet over a period and affect both the amount of revenues and the amount of expenses that are recorded during that period.	

(3)	We define time chartered-in days as the aggregate number of days in a period during which we time chartered-in vessels from third parties. Time chartered-in days are an indicator of the size of the fleet over a period and affect both the amount of revenues and the amount of charter hire expenses that are recorded during that period.	

(4)	We define available days as the sum of calendar days and time chartered-in days (collectively representing our commercially-managed vessels) less aggregate off hire days associated with scheduled maintenance, which include major repairs, drydockings, vessel upgrades or special or intermediate surveys. We use available days to measure the aggregate number of days in a period that our vessels should be capable of generating revenues.	

(5)	We define operating days as available days less the aggregate number of days that the commercially-managed vessels in our fleet are off‑hire for any reason other than scheduled maintenance (e.g., repositioning following drydocking, commercial waiting, etc.). We use operating days to measure the number of days in a period that our operating vessels are on hire (refer to 8 below).	

(6)	We calculate fleet utilization by dividing the number of operating days during a period by the number of available days during that period. An increase in non-scheduled off-hire days would reduce our operating days, and, therefore, our fleet utilization. We use fleet utilization to measure our ability to efficiently find suitable employment for our vessels.	

(7)	Time charter equivalent rate, or TCE rate, is a non-U.S. GAAP measure of the average daily revenue performance of a vessel. TCE rate is a shipping industry performance measure used primarily to compare period‑to‑period changes in a shipping company’s performance despite changes in the mix of charter types (such as time charters, voyage charters) under which the vessels may be employed between the periods. Our method of calculating TCE rate is to divide revenue net of voyage expenses by operating days for the relevant time period, which may not be calculated the same by other companies. Note that our calculation of TCE includes our portion of the net profit of the Helios Pool, which may also cause our calculation to differ from that of companies which do not account for pooling arrangements as we do.	

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The following table sets forth a reconciliation of revenues to TCE rate (unaudited) for the periods presented:

														
(in U.S. dollars, except operating days)		Three months ended			Nine months ended	
Numerator:		December 31, 2021	    	December 31, 2020	    	December 31, 2021	    	December 31, 2020	 	
Revenues		$	68,599,782		$	88,479,024		$	194,637,378		$	216,354,625		
Voyage expenses			(779,746)			(752,404)			(3,200,751)			(2,426,518)		
Time charter equivalent		$	67,820,036		$	87,726,620		$	191,436,627		$	213,928,107		
														
Pool adjustment*			—			4,103,829			(2,978)			5,688,941		
Time charter equivalent excluding pool adjustment*		$	67,820,036		$	91,830,449		$	191,433,649		$	219,617,048		
														
Denominator:														
Operating days			2,024			2,074			5,976			5,898		
TCE rate:														
Time charter equivalent rate		$	33,508		$	42,298		$	32,034		$	36,271		
TCE rate excluding pool adjustment*		$	33,508		$	44,277		$	32,034		$	37,236		

*  Adjusted for the effect of reallocations of pool profits in accordance with the pool participation agreements due to adjustments related to speed and consumption performance of the vessels operating in the Helios Pool.

(8)	We determine operating days for each vessel based on the underlying vessel employment, including our vessels in the Helios Pool, or the Company Methodology. If we were to calculate operating days for each vessel within the Helios Pool as a variable rate time charter, or the Alternate Methodology, our operating days and fleet utilization would be increased with a corresponding reduction to our TCE rate. Operating data using both methodologies is as follows:	

															
		Three months ended			Nine months ended		
Company Methodology:		December 31, 2021			December 31, 2020			December 31, 2021			December 31, 2020		
Operating Days			2,024				2,074				5,976				5,898		
Fleet Utilization			98.5	%			96.2	%			96.8	%			92.0	%	
Time charter equivalent rate		$	33,508			$	42,298			$	32,034			$	36,271		
																	
Alternate Methodology:																	
Operating Days			2,054				2,156				6,173				6,414		
Fleet Utilization			100.0	%			100.0	%			100.0	%			100.0	%	
Time charter equivalent rate		$	33,019			$	40,690			$	31,012			$	33,353		

We believe that the Company Methodology using the underlying vessel employment provides more meaningful insight into market conditions and the performance of our vessels.

(9)	Daily vessel operating expenses are calculated by dividing vessel operating expenses by calendar days for the relevant time period.	
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Liquidity and Capital Resources

Our business is capital intensive, and our future success depends on our ability to maintain a high-quality fleet. As of December 31, 2021, we had cash and cash equivalents of $115.8 million and non-current restricted cash of $0.1 million.

Our primary sources of capital during the nine months ended December 31, 2021 were $88.8 million in cash generated from operations, $43.3 million from proceeds net of commission of the sale of our 2006-built VLGC Captain Markos NL, and $34.9 million in net proceeds from the refinancing of Commander and Constellation under the BALCAP Facility. As of December 31, 2021, the outstanding balance of our long-term debt, net of deferred financing fees of $8.7 million, was $576.3 million including $69.5 million of principal on our long-term debt scheduled to be repaid within the next twelve months including $17.8 million releated to the CNML Japanese Financing.

Operating expenses, including expenses to maintain the quality of our vessels in order to comply with international shipping standards and environmental laws and regulations, the funding of working capital requirements, long-term debt repayments, financing costs, commitments under the bareboat charter for a newbuilding dual-fuel VLGC, and drydocking on certain of our VLGCs represent our short-term, medium-term and long-term liquidity needs as of December 31, 2021. We anticipate satisfying our liquidity needs for at least the next twelve months with cash on hand and cash from operations. We may also seek additional liquidity through alternative sources of debt financings and/or through equity financings by way of private or public offerings. However, if these sources are insufficient to satisfy our short-term liquidity needs, or to satisfy our future medium-term or long-term liquidity needs, we may need to seek alternative sources of financing and/or modifications of our existing credit facility and financing arrangements. There is no assurance that we will be able to obtain any such financing or modifications to our existing credit facility and financing arrangements on terms acceptable to us, or at all.

On August 5, 2019, our Board of Directors authorized the repurchase of up to $50 million of our common shares through the period ended December 31, 2020. On February 3, 2020, our Board of Directors authorized an increase to our 2019 Common Share Repurchase Authority to repurchase up to an additional $50 million of our common shares. On December 29, 2020, our Board of Directors authorized an extension of and an increase to the remaining authorization of $41.4 million under our 2019 Common Share Repurchase Authority, which was set to expire on December 31, 2020. Following this Board action, we were authorized to repurchase up to $50.0 million of our common shares from December 29, 2020 through December 31, 2021. As of December 31, 2021, our total purchases under this authority totaled 7.0 million of our common shares for an aggregate consideration of $81.0 million. Our 2019 Common Share Repurchase Authority expired on December 31, 2021. On February 2, 2022, our Board of Directors authorized the repurchase of up to $100.0 million of our common shares under the 2022 Common Share Repurchase Authority, under which 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 amount and timing of share repurchases are subject to capital availability, our determination that share repurchases are in the best interest of our shareholders, and market conditions. We are not obligated to make any common share repurchases.

On July 30, 2021, we announced that our Board of Directors declared a cash dividend of $1.00 per share of the Company’s common stock to all shareholders of record as of the close of business on August 9, 2021, totaling $40.4 million. We paid $40.2 million on September 8, 2021 and the remaining $0.2 million is deferred until certain shares of restricted stock vest.

On January 4, 2022, we announced that our Board of Directors declared a cash dividend of $1.00 per share of the Company’s common stock to all shareholders of record as of the close of business on January 14, 2022, totaling $40.1 million. We paid $39.9 million on January 25, 2022 and the remaining $0.2 million is deferred until certain shares of restricted stock vest.

These were irregular dividends. All declarations of dividends are subject to the determination and discretion of the Company’s Board of Directors based on its consideration of various factors, including the Company’s results of operations, financial condition, level of indebtedness, anticipated capital requirements, contractual restrictions, restrictions in its debt agreements, restrictions under applicable law, its business prospects and other factors that the Company’s Board
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of Directors may deem relevant. Our dividend policy will also impact our future liquidity position. Marshall Islands law generally prohibits the payment of dividends other than from surplus or while a company is insolvent or would be rendered insolvent by the payment of such a dividend.

On August 25, 2021, we exercised our repurchase option under the CMNL/CJNP Japanese Financing Japanese Financing by providing a three-month notice to the owners of Captain John NP of our intent to repurchase the vessel for approximately $15.8 million in cash and application of the deposit amount of $25.2 million, which had been retained by the buyer in connection with the CMNL/CJNP Japanese Financing, towards the repurchase of the vessel. The repurchase transaction was completed on November 30, 2021.

On September 8, 2021, we completed the sale of our 2006-built VLGC Captain Markos NL and received proceeds net of commission of $43.3 million.

On October 24, 2021, we exercised our repurchase option under the CNML Japanese Financing by providing a three-month notice to the owners of Captain Nicholas ML of our intent to repurchase the vessel for approximately $17.8 million in cash and application of the deposit amount of $27.9 million, which had been retained by the buyer in connection with the CNML Japanese Financing, towards the repurchase of the vessel. The repurchase transaction was completed on January 26, 2022.

As part of our growth strategy, we will continue to consider strategic opportunities, including the acquisition or charter-in of additional vessels. We may choose to pursue such opportunities through internal growth, joint ventures, business acquisitions, or other transactions. We expect to finance the purchase price of any future acquisitions either through internally generated funds, public or private debt financings, public or private issuances of additional equity securities or a combination of these forms of financing.

Cash Flows

The following table summarizes our cash and cash equivalents provided by/(used in) operating, financing and investing activities for the nine months ended December 31:

	2021		2020		
Net cash provided by operating activities	$	88,771,565		$	87,595,733		
Net cash provided by investing activities	 	22,548,887		 	5,198,748		
Net cash used in financing activities	 	(80,040,983)		 	(46,741,990)		
Net increase in cash, cash equivalents, and restricted cash	$	31,159,652		$	46,289,502		

Operating Cash Flows.  Net cash provided by operating activities for the nine months ended December 31, 2021 was $88.8 million, compared to $87.6 million for the nine months ended December 31, 2020. The increase in cash generated from operations of $1.2 million is primarily related to changes in working capital, mainly from amounts due from the Helios Pool as distributions from the Helios Pool are impacted by the timing of the completion of voyages, spot market rates and bunker prices, partially offset by a reduction of operating income.

Net cash flow from operating activities depends upon our overall profitability, market rates for vessels employed on voyage charters and in the Helios Pool, charter rates agreed to for time charters, the timing and amount of payments for drydocking expenditures and unscheduled repairs and maintenance, fluctuations in working capital balances and bunker costs.

Investing Cash Flows.  Net cash provided by investing activities was $22.5 million for the nine months ended December 31, 2021 compared with $5.2 million for the nine months ended December 31, 2020. For the nine months ended December 31, 2021, net cash provided by investing activities was comprised of $43.3 million in proceeds, net of commission, on the sale of our 2006-built VLGC Captain Markos NL and $3.7 million in proceeds from the sale of investment securities, partially offset by $22.2 million of capital expenditure payments for vessels and vessels under construction, and $2.3 million in purchases of investment securities. For the December 31, 2020, net cash provided by investing activities was comprised of $15.0 million in proceeds from the maturity of U.S. treasury bills, partially offset by $9.3 million of vessel-related capital expenditures and $0.5 million in purchases of investment securities.
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Financing Cash Flows.  Net cash used in financing activities was $80.0 million for the nine months ended December 31, 2021, compared with $46.7 million for the nine months ended December 31, 2020. For the nine months ended December 31, 2021, net cash used in financing activities primarily consisted of repayments of long-term debt of $100.5 million, including the prepayment of a portion of the 2015 AR Facility in relation to the refinancing of two VLGCs ($47.1 million) and the repayment in full of the CMNL/CJNP Japanese Financing, a dividend payment of $40.2 million, payments to repurchase common stock of $21.3 million, and payments of financing costs totaling $1.4 million, partially offset by proceeds of $83.4 million from the BALCAP Facility. For the nine months ended December 31, 2020, net cash used in financing activities consisted of repayments of long-term debt of $86.5 million, payments of financing costs related to the Cresques Japanese Financing and the 2015 AR Facility of $4.0 million, and payments for treasury stock repurchases of $11.7 million, partially offset by $55.4 million in proceeds from long-term debt borrowings related to the Cresques Japanese Financing and the 2015 AR Facility.

Capital Expenditures.  LPG transportation is a capital‑intensive business, requiring significant investment to maintain an efficient fleet and to stay in regulatory compliance.

We are generally required to complete a special survey for a vessel once every five years. Drydocking of vessels occurs every five years unless an extension is granted by the classification society to seven and one-half years and the vessel is not older than 20 years of age. Intermediate surveys are performed every two and one-half years after the first special survey. Drydocking each vessel takes approximately 10 to 20 days. We spend significant amounts for scheduled drydocking (including the cost of classification society surveys) for each of our vessels.

As our vessels age and our fleet expands, our drydocking expenses will increase. We estimate the current cash outlay for a VLGC special survey to be approximately $1.0 million per vessel (excluding any capital improvements, such as scrubbers and ballast water management systems, to the vessel that may be made during such drydockings and the cost of an intermediate survey to be between $100,000 and $200,000 per vessel. Ongoing costs for compliance with environmental regulations are primarily included as part of our drydocking and classification society survey costs. Further, in October 2016, the International Maritime Organization (the “IMO”) set January 1, 2020 as the implementation date for vessels to comply with its low sulfur fuel oil requirement, which cuts sulfur levels from 3.5% to 0.5%. We may comply with this regulation by (i) consuming compliant fuels on board (0.5% sulfur), which are readily available globally since our last quarterly filing, but at a significantly higher cost; (ii) continuing to consume high-sulfur fuel oil by installing scrubbers for cleaning of the exhaust gases to levels at or below compliance with regulations (0.5% sulfur); or (iii) by retrofitting vessels to be powered by liquefied petroleum gas or LPG, which may be a viable option subject to the relative pricing of compliant low-sulfur fuel (0.5% sulfur) and LPG. Such costs of compliance with the IMO’s low sulfur fuel oil requirement are significant and could have an adverse effect on our operations and financial results. Currently, twelve of our technically-managed VLGCs are equipped with scrubbers. We have no contractual commitments related to additional scrubbers as of December 31, 2021. Please see "Item 1A. Risk Factors—Risks Relating to Our Company—We may incur increasing costs for the drydocking, maintenance or replacement of our vessels as they age, and, as our vessels age, the risks associated with older vessels could adversely affect our ability to obtain profitable charters” in our Annual Report on Form 10-K for the year ended March 31, 2021.

Debt Agreements

For information relating to our secured term loan facilities, refer to Note 9 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2021 and Note 8 to our unaudited interim condensed consolidated financial statements for December 31, 2021 included herein.

Off-Balance Sheet Arrangements

We currently do not have any off‑balance sheet arrangements.

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Critical Accounting Policies and Estimates

The following is an update to the Critical Accounting Estimates set forth in “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended March 31, 2021.

Impairment of long-lived assets. We review our vessels for impairment when events or circumstances indicate the carrying amount of the asset may not be recoverable. In addition, we compare independent appraisals to our carrying value for indicators of impairment to our vessels. When such indicators are present, an asset is tested for recoverability by comparing the estimate of future undiscounted net operating cash flows expected to be generated by the use of the asset over its remaining useful life and its eventual disposition to its carrying amount. An impairment charge is recognized if the carrying value is in excess of the estimated future undiscounted net operating cash flows. The impairment loss is measured based on the excess of the carrying amount over the fair market value of the asset. The new lower cost basis would result in a lower annual depreciation than before the impairment.

Our estimates of fair market value assume that our vessels are all in good and seaworthy condition without need for repair and if inspected would be certified in class without notations of any kind. Our estimates are based on information available from various industry sources, including:

	●	reports by industry analysts and data providers that focus on our industry and related dynamics affecting vessel values;	

	●	news and industry reports of similar vessel sales;	

	●	approximate market values for our vessels or similar vessels that we have received from shipbrokers, whether solicited or unsolicited, or that shipbrokers have generally disseminated;	

	●	offers that we may have received from potential purchasers of our vessels; and	

	●	vessel sale prices and values of which we are aware through both formal and informal communications with shipowners, shipbrokers, industry analysts and various other shipping industry participants and observers.	

As we obtain information from various industry and other sources, our estimates of fair market value are inherently uncertain. In addition, vessel values are highly volatile; as such, our estimates may not be indicative of the current or future fair market value of our vessels or prices that we could achieve if we were to sell them.

As of December 31, 2021, independent appraisals of our commercially and technically-managed VLGCs in our fleet had no indications of impairment on any of our VLGCs in accordance with ASC 360 Property, Plant, and Equipment. No impairment charges were recognized for December 31, 2021.

Recent Accounting Pronouncements

Refer to Note 2 to our unaudited interim condensed consolidated financial statements included herein for a discussion of recent accounting pronouncements.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For additional discussion of our exposure to market risk, refer to “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” included in our Annual Report on Form 10-K for the year ended March 31, 2021.

Interest Rate Risk

The LPG shipping industry is capital intensive, requiring significant amounts of investment. Much of this investment is provided in the form of long-term debt. Our 2015 AR Facility agreement contains interest rates that fluctuate with LIBOR. We have entered into interest rate swap agreements to hedge a majority of our exposure to fluctuations of interest rate risk associated with our 2015 Facility. We have hedged $336.9 million of amortizing principal of the 2015 Facility as of December 31, 2021 and thus increasing interest rates could adversely impact our future earnings due to additional interest expense on our unhedged debt. For the 12 months following December 31, 2021, a hypothetical increase or decrease of 20 basis points in the underlying LIBOR rates would result in an increase or decrease of our interest expense on all of our non-hedged interest-bearing debt by $0.2 million assuming all other variables are held constant.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

An evaluation was performed under the supervision and with the participation of our management, including our Chief Executive Officer, or CEO, and Chief Financial Officer, or CFO, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of December 31, 2021. Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including our CEO and CFO, to allow timely decisions regarding required disclosure. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those internal control systems determined to be effective can provide only a level of reasonable assurance with respect to financial statement preparation and presentation.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) during the three and nine months ended December 31, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

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.

ITEM 1A. RISK FACTORS

Our operations and financial results are subject to various risks and uncertainties that could adversely affect our business, financial condition, results of operations, cash flows, and the trading price of our common shares. For risk factors that may cause actual results to differ materially from those anticipated, please refer to “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended March 31, 2021.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities
The table below sets forth information regarding our purchases of our common shares during the quarterly period ended December 31, 2021:

						Total			
						Number of			
						Shares			
						Purchased as			
						Part of		Maximum Dollar	
		Total				Publicly		Value of Shares	
		Number		Average		Announced		that May Yet Be	
		of Shares		Price Paid		Plans or		Purchased Under the	
Period		Purchased		Per Share		Programs		Plan or Programs	
October 1 to 31, 2021		—		$	—		—		$	27,548,007	
November 1 to 30, 2021		—			—		—			27,548,007	
December 1 to 31, 2021		1,410			12.72		—			—	
Total		1,410		$	12.72		—		$	—	

Purchases of our common shares during the quarterly period ended December 31, 2021 represent common shares reacquired in satisfaction of tax withholding obligations upon vesting of employee restricted equity awards.

ITEM 6. EXHIBITS

See accompanying Exhibit Index for a list of exhibits filed or furnished with this report.

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EXHIBIT INDEX

Exhibit Number		Description	
			
31.1		Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	
			
31.2		Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	
			
32.1†		Certifications of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 	
			
32.2†		Certifications of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 	
			
101.INS		Inline XBRL Document 	
			
101.SCH		Inline XBRL Taxonomy Extension Schema	
			
101.CAL		Inline XBRL Taxonomy Extension Schema Calculation Linkbase	
			
101.DEF		Inline XBRL Taxonomy Extension Schema Definition Linkbase	
			
101.LAB		Inline XBRL Taxonomy Extension Schema Label Linkbase	
			
101.PRE		Inline XBRL Taxonomy Extension Schema Presentation Linkbase	
			
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in exhibit 101)	

†	This certification is deemed not filed for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended.	

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Dorian LPG Ltd.	
	(Registrant)	
		
Date: February 2, 2022	/s/ John C. Hadjipateras	
	John C. Hadjipateras	
	President and Chief Executive Officer	
	(Principal Executive Officer)	

		
Date: February 2, 2022	/s/ Theodore B. Young	
	Theodore B. Young	
	Chief Financial Officer	
	(Principal Financial Officer and Principal Accounting Officer)	

35

Exhibit 31.1
Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer
I, John C. Hadjipateras, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Dorian LPG Ltd.;	

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;	

3.	Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of and for, the periods presented in this report;	

4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:	

 	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;	

 	(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;	

 	(c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and	

 	(d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and	

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):	
 
 	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and	
 
 	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.	

/s/ John C. Hadjipateras	
John C. Hadjipateras	
Chief Executive Officer	
Dated: February 2, 2022

Exhibit 31.2
Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer
I, Theodore B. Young, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Dorian LPG Ltd.;	

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;	

3.	Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of and for, the periods presented in this report;	

4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:	

 	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;	

 	(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;	
 
 	(c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and	

 	(d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and	
 
5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):	
 
 	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and	
 
 	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.	

	

/s/ Theodore B. Young	
Theodore B. Young	
Chief Financial Officer	

Dated: February 2, 2022

Exhibit 32.1
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the quarterly report of Dorian LPG Ltd. (the “Company”), on Form 10-Q for the quarterly period ended December 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John C. Hadjipateras, Chief Executive Officer of the Company, certify, to the best of my knowledge, pursuant to Rule 13a-14(b) under the Securities and Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 	1.	the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and	

 	2.	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.	

	

/s/ John C. Hadjipateras	
John C. Hadjipateras	
Chief Executive Officer	

Dated: February 2, 2022

Exhibit 32.2
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the quarterly report of Dorian LPG Ltd. (the “Company”), on Form 10-Q for the quarterly period ended December 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Theodore B. Young, Chief Financial Officer of the Company, certify, to the best of my knowledge, pursuant to Rule 13a-14(b) under the Securities and Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 	1.	the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and	

 	2.	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.	

	

/s/ Theodore B. Young	
Theodore B. Young	
Chief Financial Officer	

Dated: February 2, 2022