Dorian LPG Ltd.

Greetings, and welcome to the Dorian LPG fourth quarter 2020 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. Additionally, a live audio webcast of today's conference call is available on Dorian LPG's website, which is www.dorianlpg.com. I would now like to turn the conference over to Ted Young, Chief Financial Officer. Thank you, Mr. Young. Please go ahead.

Thank you, Christine. Good morning, everyone, and thank you all for joining us for our fourth quarter 2020 results conference call. With me today are John Hajibateras, Chairman, President, and CEO of Dorian LPG Limited, and John LaCouris, Chief Executive Officer of Dorian LPG USA. As a reminder, this conference call webcast and a replay of this call will be available through June 30, 2020. Many of our remarks today contain forward-looking statements based on current expectations. These statements may often be identified with words such as expect, anticipate, believe or similar indications of future expectations. Although we believe that such forward-looking statements are reasonable, we cannot assure you that any forward-looking statements will prove to be correct. These forward-looking statements are subject to known and unknown risks and uncertainties and other factors, as well as general economic conditions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions or estimates prove to be incorrect, actual results may vary materially from those we expressed today. Additionally, let me refer you to our unaudited results for the period ended March 31, 2020, that were filed this morning as part of our earnings release on Form 8-K. In addition, please refer to our previous filings on Form 10-K and Form 10-Q, where you'll find risk factors that could cause actual results to differ materially from those forward-looking statements. With that, I'll turn over the call to John Hadjibateras.

Good morning from Stanford, Connecticut, and thank you for joining us. I will say a few words before Ted, who will review the financials with you, and John will then talk about the fleet and the market, and Today, we also have with us on the line from Copenhagen, Tim Hansen, our Chief Commercial Officer, who will answer questions from you about the market, the current freight market. In my prepared remarks for our last call on February 4th, I said, our outlook for the coming calendar year remains optimistic. The coronavirus is, of course, a potential headwind. That was 16 weeks ago. In the intervening period, my priorities being the safety of the 500 seafarers currently serving on board our ships, as well as our shore-based staff and stakeholders, and I can report that our fleet has continued to operate thanks to the dedication of our seafarers and colleagues on shore, and that we are all safe, though mindful of the new peril that surrounds us. The most talked about disruption for us has been the difficulty to make crew changes. For a while, we could hardly make any. This inconvenienced both those who exceeded their contractual time on board and those ashore waiting to replace them, anxious to get back to work. We are starting to see opportunities to carry out crew changes now. What was a simple task in the past has become a logistical challenge. Transporting a COVID-free seafarer through airports and launches to the ship, trying to minimize exposure, and striving to ensure that the ship remains disease-free is no simple task, as you can imagine. It is encouraging, though, to start to return to normality. One of our second engineers will shortly be going home to meet his new baby, born at the end of April. I hope that you and all your families and friends are also safe and healthy. Our financial year 2020 concluded March 31st was our best since 2016. Continued growth of seaborne trade of LPG, a somewhat restrained order book, and renewed exports from the USA to China resulted in freight levels I would call good. These developments were supported by a continued expansion of U.S. shale production and of PDH demand in China and South Korea, as well as continued inroads of LPG for residential use in India and other Asian countries. The freight market was quite resilient, and the TCEs were also underpinned by a lower bunker cost. In the quarter ended March 31st, we achieved total utilization of 91.7%, and a daily TCE revenue over operating days, as defined in our filings, of $51,888 a day, yielding utilization-adjusted TCE or TCE per available day of about $47,594 a day. April continued robust, and we estimate that we have 75 percent cover of the current quarter, at near $50,000 per day. However, the current market, as expressed by the published Baltic Index, is now closer to $20,000 per day. We have read many forecasts, ranging from a little to very pessimistic. They're predominantly based on assumptions about a decline in U.S. shale production available for export. I do not pretend to know which forecast to believe, much less to make them. Will economic activity bounce or crawl back? Will there be permanent demand destruction? What I do know is that the order book is at about 12%. Propane as a fuel for several applications is among the most attractive options, avoiding greenhouse gas emissions. It produces fewer emissions than gasoline, diesel, and heavy fuel oil. And whereas natural gas, methane, produces fewer greenhouse gas per BTU than propane, if it released in air directly or from methane slip, it produces a global warming effect 25 times that of carbon dioxide. LPG, as has been shown in India, can improve the quality of life for a very large part of the world's population. Dorian has a young eco-fleet. Dorian has a strong balance sheet with low leverage and good liquidity and no significant CapEx commitments. As we previously reported, we completed two strategically significant transactions during April 2020, a Japanese sale leaseback, our seventh, and a refinancing of the commercial tranche of our main banking facility. These transactions increased our available liquidity reduced our financing costs, extended the maturity of our debt, and reduced our principal amortization. We are optimistic on the fundamentals of the LPG trade and confident that Dorian LPG is well positioned to continue to provide safe, reliable, clean, and trouble-free transportation for our customers and create value for our shareholders. Over to Ted to discuss our financial results.