[ID] => 9748
[post_author] => 34
[post_date] => 2018-06-18 17:32:43
[post_date_gmt] => 2018-06-18 16:32:43
[post_content] => Dorian LPG has rejected BW LPG’s unsolicited takeover bid. Dorian LPG’s Board of Directors says the offer fails to recognise the value of Dorian’s fleet of young, fuel-efficient ships or the company’s “superior commercial performance”. In effect, Dorian LPG believes that the takeover would result in its own shareholders subsidising BW LPG’s fleet renewal and upgrade process. Conversely, Dorian LPG has offered to take some or all of BW LPG’s younger VLGCs into its fleet, either through acquisition or on some sort of charter basis.
Dorian LPG has meanwhile recorded a net loss of $3.5m in the final quarter of its financial year to 31 March 2018. The drop compared to last year’s corresponding net profit of $2.0m reflects a sharp reduction in vessel utilisation, down from 96.3% to 79.2%, as timecharter earnings were essentially flat year-on-year.
"Despite experiencing lower fleet utilisation due to a weak LPG arbitrage environment in our fourth fiscal quarter, our VLGCs continue to earn a demonstrable premium,” says John Hadjipateras, president/CEO.
“We believe this premium may become more pronounced following the implementation of new regulations to reduce sulphur emissions, and we are taking additional steps to optimise our fleet in advance of these regulations. We continue to strengthen our balance sheet without decreasing our exposure to a potential market recovery. In the near term, we remain cautiously optimistic about the outlook for the LPG tanker sector as industry fundamentals improve."
[post_title] => Dorian LPG declines BW offer
[post_status] => publish
[comment_status] => open
[ping_status] => open
[post_name] => dorian-lpg-declines-bw-offer
[post_modified] => 2018-06-18 17:32:43
[post_modified_gmt] => 2018-06-18 16:32:43
[post_parent] => 0
[guid] => https://www.hcblive.com/?p=9748
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Dorian LPG declines BW offer
// By Peter Mackay on 18 Jun 2018
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