The latest Value Investor's Edge Live episode turns to the liquid petroleum gas (LPG) shipping industry.
Ted Young, CFO of Dorian LPG, discusses the company's outlook, the LPG shipping industry, and capital allocation priorities and potential.
The company's positioning as far as scrubbers and the savings that their update might accrue also come up.
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Ted Young, CFO of Dorian LPG (LPG), joined J Mintzmyer's Value Investor's Edge Live on November 1, 2019 to discuss the LPG shipping markets and specific company prospects and capital allocation potentials. This interview and discussion is relevant for anyone with LPG sector investments, including Avance Gas (OTCPK:AVACF), BW LPG (OTCPK:BWLLF), and Navigator Holdings (NVGS).
- 1:00 minute mark - Overall VLGC market review.
- 4:00 - Do the arbitrage curve and forward cycle still look strong?
- 7:40 - What sort of risks should investors look for?
- 10:40 - Leverage is away down, what are your targets now?
- 12:50 - Capital allocation priorities for Dorian? Enough cash reserved?
- 14:40 - Priority for dividends, repurchases, financing deals.
- 20:00 - Repurchases low thus far? Any reason for this?
- 23:30 - Possibility for a buyback deal with BW Group? Any covenants?
- 26:40 - Scrubber update on timing? Delay with shipyard?
- 28:30 - Discussion on scrubber fuel spreads? Savings per day?
- 34:00 - LPG retrofit potential? Any expenses in 2021?
- 37:50 - Reviewing utilization numbers - expectations for Q4/Q1?
- 39:40 - Update on the 4x charters coming off Q4-19?
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: J Mintzmyer is long LPG and NVGS. Ted Young is employed as CFO of Dorian LPG. Nothing on this podcast should be taken as investment advice.