Dorian LPG Ltd.

Greetings and welcome to the Dorian LPG second quarter 2022 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, Daryl, and good morning, everyone. Thank you all for joining us for our second quarter 2022 results conference call. With me today are John Hajbateris, Chairman, President, and CEO of Dorian LPG Limited, John LaCouris, Chief Executive Officer of Dorian LPG USA, and Tim Hanson, Chief Commercial Officer. As a reminder, this conference call webcast and a replay of this call will be available through November 10, 2021. 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 September 30, 2021, that were filed this morning on Form 10-Q. In addition, please refer to our previous filings on Form 10K, where you'll find risk factors that could cause actual results to differ materially from those forward-looking statements. Finally, for our discussion this morning of our second quarter results, you may also find it useful to refer to the Investor Highlights slides posted this morning on our website, both under the Recent News section on the homepage and under the News and Media tab, which can also be located on our homepage, www.dorianlpg.com. With that, I'll turn over the call to John Hadjibateris.

Okay. Good morning or good afternoon, as the case may be. Ted, John, and I are speaking from Stanford, and Tim Hansen is calling in from Copenhagen. Thank you for joining us to discuss our second quarter 2022 financial and operating results. We now have 62% of our seafarers fully vaccinated. 27% or 236 out of 889 were vaccinated at U.S. ports. The pandemic has brought our teams closer in coordinating efficient and safe crew changes and is also enabling us to engage and integrate our seafarers into our processes of fuel and emission savings. Our seafarers will be our most valuable partners in the continuing effort to decarbonize. Our fleet performance and technical teams are assessing emission-saving devices which potentially will reduce consumptions of our ECHO fleet. Since January 2020, our efforts to reduce emissions have resulted in fuel savings of over $2.5 million. We were able to achieve solid market rates this quarter by optimizing our positioning and timing. Top-mile demand increased, but bunker prices have also risen alongside crude oil prices. The Baltic Index averaged about $42 for the period July 1st to September 30th, down roughly $10 from the previous three-month average. At $51.60, the Baltic averaged for the quarter July to September. The TC equivalent was about $8000 higher than it yesterday's $56 fault. North American exports continue to rebuild after reaching low levels last fall due to COVID delays. Middle East exports are also recovering from their four week moving average. As it is past 700,000 last week. Actually 750,000 in mid October. It was 700,000 at the last week of September, and that's the highest export number from the region since last February. The arbitrage between Mount Bellevue and the Far East index price for LPG has widened in recent weeks. The Baltic VLGC index is trading at about 56 currently, up from 45 at the end of September and 37 in mid-September. We have a constructive view of the winter market. On the supply side of the market, US NGL production is resilient, despite the short-term impacts from hurricanes in late August and early September. We expect exports from both the US and the Middle East to increase in the winter months as OPEC Plus continue to implement production cut reversals and as winter demand returns. With new building deliveries limited to seven between November and February and canal congestion increasing, the vessel supply-demand balance looks favorable. Given the 100-plus differential between HSFO and LSFO, our 12 scrubber vessels continue to justify our investment. The HFO to LSFO spread has maintained a quarterly average spread above $100 per ton for all of 2021, which is nearly double the average spread we saw in the second half of 2020 when it was $54 a ton. We took the opportunity to optimize our fleet by selling the Captain Marcos NL for a firm price. Given the demand for vessels of this type and a desire to improve our debt costs, we have exercised a repurchase option on our other two captains, which has the dual benefit of paying off our most expensive debt and giving us full flexibility with respect to these vessels. The decision to free up to these ships is not in any way a deviation from our capital allocation focus on returning capital to shareholders where possible. We'll now pass over the line to Tim to further brief you on our commercial results.