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DATE

Wednesday, May 20, 2026 at 10 a.m. ET

CALL PARTICIPANTS

• Chairman, President, and CEO — John C. Hadjipateras
• Chief Financial Officer — Theodore B. Young
• Chief Commercial Officer — Tim T. Hansen
• Head of Energy Transition — John C. Lycouris

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TAKEAWAYS

• Fleet composition -- Dorian LPG (LPG 3.53%) owns 18 Ecotype VLGCs, two new dual fuel ships, and operates an average fleet age of 10.3 years.
• VLGC market dynamics -- There are 427 VLGCs globally, with about 124 ships on order, or nearly 30% of the existing fleet.
• Newbuilding investments -- The latest VLGC newbuilding price is approximately $115 million, a 2.5% annualized increase since the 2004 order price of $65 million.
• Recent fleet actions -- The 93,000 cbm Arianne, a fully ammonia-capable dual fuel VLGC, was delivered in late March but will not impact P&L until fiscal Q1 2027.
• Asset sales and debt reduction -- The sale of the COBRA completed in May, generated approximately $30 million in gain and repaid $16.5 million of debt.
• Shareholder returns -- An irregular dividend of $1 per share was declared, representing a significant increase from the prior quarter and reflecting management's constructive market outlook.
• Free cash -- Free cash stood at $327.4 million at quarter end, sequentially up from the prior quarter.
• Debt position -- Quarter-end debt balance was $565.8 million, with a pro forma post-sale and repurchase level of $524.7 million; debt to total book capitalization was 33.2%, and net debt to total cap 14.0%.
• Liquidity -- The company reported an undrawn revolver of $42.9 million and one debt-free vessel, supporting financial flexibility.
• Cash cost guidance -- Projected cash cost for the coming year is approximately $26,000 per day, excluding planned drydocking CAPEX for the Captain John vessel in the fourth fiscal quarter.
• TCE revenue -- Dorian's TCE revenue per available day was about $63,600, the second-highest in company history; annual TCE per day was $52,200.
• Spot chartering strategy -- More than 80% of the Helios Pool’s 31 vessels are exposed to the spot market via Dorian's six time-chartered-in vessels.
• Operational performance -- Vessel utilization increased sequentially to 97.8% from 94.6%, aided by the completion of statutory special surveys on the 2014‑2016 class.
• Helios Pool market rates -- Helios Pool earned TCE per day for spot and COA voyages of $65,600, reflecting favorable VLGC market conditions.
• Panama Canal cost impact -- Auction fees for VLGCs transiting the canal ranged from $200,000 to $4 million in recent weeks, pressuring realized TCE rates.
• OPEX and G&A -- Daily OpEx was $9,550 per vessel, essentially flat sequentially; reported quarterly adjusted EBITDA was $106.6 million, and total cash interest expense was $6.6 million.
• Dividend history -- Dorian has paid ten irregular dividends totaling $18.65 per share since September 2021, amounting to nearly $770 million, compared to net income of $835 million since June 2021.
• Geopolitical exposures -- The de facto closure of the Strait of Hormuz reduced global seaborne LPG transport to levels not seen since early 2024; 80%-90% of Dorian's trades are now U.S./Canada liftings.
• Bunker fuel economics -- For 2026, scrubber vessel savings amounted to $3,480 per day per vessel, with fuel differentials of $89 per metric ton (high sulfur vs. VLSFO) and $205 per metric ton (LPG as fuel vs. VLSFO).
• Environmental investment -- Twenty percent of the fleet is now dual-fuel, and the latest newbuild, Arianne, can carry both LPG and ammonia and is equipped with a hybrid scrubber system.
• IMO regulatory outlook -- MEPC 84 meetings did not finalize the IMO net zero framework; if adopted at MEPC 85 in December 2026, first reporting may be in 2029, with several defining points still under negotiation.

SUMMARY

Dorian LPG advanced fleet modernization by delivering the dual-fuel Arianne, reinforcing its commitment to alternative fuels and future compliance with evolving emissions rules. Asset rotation was executed through the sale of COBRA, enabling debt reduction and recognized gain, while liquidity remained strong with a sequential increase in free cash and available credit. Capital deployment strategy continued to favor direct shareholder returns, as underscored by an increased $1 per share dividend and management commentary on balancing fleet investment, debt reduction, and distributions. Geopolitical disruptions, especially the Strait of Hormuz closure, fundamentally shifted trading routes and vessel allocation, compelling 80%-90% U.S./Canada exposure and amplifying Panama Canal transit costs that compress realized TCE rates. Dual-fuel and scrubber deployments delivered quantifiable operating savings as fuel spreads widened and bunker costs rose, aligning with global regulatory developments and anticipated IMO net-zero compliance.

• Hadjipateras stated, "we are not scared of the spot market. But we if the rates are right, for cover, we are happy to take more. Cover as well," conveying a readiness to increase time charter coverage if pricing merits.
• Tim T. Hansen explained, "up to 80% of our business are U.S. liftings. And if you look count the days with the longer variances, maybe 90% of our coverage has been focused on US," confirming the company's exposure shift away from the Middle East.
• Transits through the Panama Canal's new locks face the most acute auction fee escalation, with Tim T. Hansen noting, "it is mainly the new canal," as the locus of the cost increases.
• Management confirmed $63,600 per day as "the second highest TCE rate we have earned in our corporate existence," highlighting the magnitude of the current rate environment.
• The company's environmental positioning was clarified by Lycouris: "With this second wholly owned dual fuel LPG vessel, 20% of our fleet now runs on low emission alternative fuels."

INDUSTRY GLOSSARY

• VLGC: Very Large Gas Carrier, a liquefied petroleum gas tanker with capacity typically between 70,000 and 85,000 cbm.
• TCE: Time Charter Equivalent, a per-day shipping revenue metric normalizing across charter types.
• COA: Contract of Affreightment, shipping contracts committing to transport a defined cargo volume over time.
• Helios Pool: A VLGC commercial pool in which Dorian LPG participates, allowing pooling of vessel incomes and operating costs among members.
• Scrubber: Exhaust gas cleaning system to reduce sulfur oxide emissions from ship engines.
• VLSFO: Very Low Sulfur Fuel Oil, a fuel type prescribed for compliance with global emissions regulations.
• SOFR: Secured Overnight Financing Rate; benchmark interest rate referenced in debt agreements.
• IMO: International Maritime Organization, United Nations agency regulating shipping safety and environmental impact.
• MEPC: Marine Environment Protection Committee, IMO body responsible for environmental regulations in shipping.
• ECA: Emission Control Area, a sea region with strict controls to minimize airborne emissions from ships.
• CII: Carbon Intensity Indicator, an IMO metric to assess vessel fuel efficiency and emissions.
• SEMP: Ship Energy Efficiency Management Plan; an IMO-mandated framework for improving vessel energy efficiency.

Full Conference Call Transcript

Theodore Young Thanks, Madison. Good morning, everyone. Thank you all for joining us for our fourth quarter 2026 results conference call. With me today are John C. Hadjipateras, Chairman, President and CEO of Dorian LPG Limited John C. Lycouris, Head of Energy Transition and Tim T. Hansen, chief commercial officer. As a reminder, this conference call webcast and a replay of this call will be available through May 27, 2026. 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, 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 1 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 express today. Additionally, let me refer you to our unaudited results for the quarterly and annual periods ended March 31, 2026, that were filed this morning on Form 8-K.

In addition, please refer to our previous filings on Forms 10-K and 10-Q, where you will find risk factors that could cause actual results to differ materially from those forward looking statements. Please note that we expect to file our full 10-K no later than May 29, 2026. Finally, I would encourage you to review the investor highlight slides posted this morning on our website.

John C. Hadjipateras With that, I will turn over the call to John C. Hadjipateras. Thank you, Ted, and thanks for joining us today. My colleagues will share some useful and interesting information about the quarter and our views of the market. First, I would like to say a few words on capital allocation. And provide some historical context on fleet development which relates to risk management and a volatile market with a view to capturing upside. Today's price for a new building VLGC at approximately $115 million reflects an increase of approximately 2.5% per annum. Over the cost of our first VLGC which was delivered to our predecessor company 20 years ago.

She was ordered for a price of approximately $65 million in 2004. When she was delivered in 2006, the new building replacement cost was over $90 million. From 2009 to 2012, the new building price hovered in the low $70 million range And the next order we placed was in 2012 for advanced echo type series at just under $70 million each. The newbuilding prices stayed in the $70 million range until 2021. The total VLGC fleet in 2005 comprised 102 ships. Today, the total fleet is 427 VLGCs and there are about 124 ships on order representing nearly 30% of the existing fleet. Compared to the all time high of more than 50% in 2007.

Our owned fleet comprises 18 Ecotype with efficiency enhancing features and 2 new dual fuel ships. The average age of our fleet is 10.3 years. In the next few years, we hope to expand our fleet by adding new ships and expect that the catalyst for our investment in replacement tonnage will be innovation in the design and efficiency of new buildings. The advent of ultra long stroke electronic engines informed our investment decision in 2012. And the development of dual fuel engine supported our decisions for our investment in the Captain Marcos delivered in 2023 and the Rio De Janeiro delivered a couple of months ago.

We have witnessed the volatility I have described, and we have been the beneficiaries of a tremendous increase in the volume of seaborne trade of LPG in both absolute terms and in ton mile terms. We have confidence in the further expansion of this trade. And our intention is, as always, with our capital allocation to proceed judiciously mindful of our steadfast commitment to maintaining a solid balance sheet. We believe that this is the rule by which we can earn the best return for our investors and continue to provide top quality services to our customers and a safe and fair working environment for our people at sea and onshore. And now I will pass you on to Ted.

Theodore Young Thanks, John. My comments today will focus on capital allocation, our financial position and liquidity and our unaudited fourth quarter results. We have been active since the beginning of calendar 2026 in growing our business and rewarding shareholders. First, we took delivery of the Arianne in late March our fully ammonia capable 93 thousand cbm VLGC. As you would expect, she immediately started contributing to earnings but we will not see the P&L impact until the first quarter of our fiscal 27. The most recent irregular dividend of $1 per share a significant increase from the prior quarter's reflected the strong underlying market and our board's commitment to creating shareholder value.

Second, we completed the sale of the 2020-built COBRA in May paying off $16.5 million of debt in the process. We expect to generate a gain on sale of approximately $30 million. From her sale. And I would note that her sale price was actually greater than her contract price in 2015. Finally, we will complete the repurchase of the Corsair for her sale leaseback before month end which will require a payment of about $24.2 million in total and positions us to be flexible with any potential opportunities. At March 31, 2026, we reported $327.4 million of free cash, which was sequentially up from the previous quarter. Cash flow from operations was $82 million or nearly $2 per share.

And as we noted in our press release, we borrowed $62.9 million upon closing of the delivery of the Arianne. Covering the final payment to the yard. As we disclosed then, the Arianne loan has 2 tranches, 1 7 years and 1 12 years. We have an average of over 10 years. And a weighted average for margin between the 2 tranches of 125 basis points over SOFR. We closed the fiscal year, therefore, with a debt balance of $565.8 million But given the payoff of the debt in connection with the sale of the COBRA and the Corsair repurchase, the pro forma balance would be $524.7 million.

Based on our stated book, however, at quarter end of $565 million of debt, Our debt to total book cap stood at 33.2% and net debt to total cap of 14.0%. We continue to have well structured and attractively priced debt capital with a current all in cost of about $5 million an undrawn revolver of $42.9 million and 1 debt free vessel. Coupled with our strong free cash balance, we have a comfortable measure of financial flexibility. We expect our cash cost per day for the coming year to be approximately $26 thousand per day, excluding capital expenditures for the drydocking of Captain John, which is currently planned for our fourth fiscal quarter.

For the discussion of our fourth quarter results you may find it useful to refer to the investor highlight slides posted this morning on our website. I remind you that my remarks will include a number of terms such as TCE, available days and adjusted EBITDA. Please refer to our filings for the definitions of these terms. Looking at our fourth quarter chartering results, since our entire spot trading program is conducted through the Helios Pool, its reported spot results are the best measure of our spot chartering performance. For the March, the Helios Pool earned a TCE per day for its spot and COA voyages $65.6 thousand per day reflecting more favorable VLGC market conditions.

Our utilization improved sequentially to 97.8% this quarter from 94.6% in the prior quarter as the last of our dry dockings for the 2014 to 2016 class was completed. The overall TCE result for the pool of nearly $63.3 thousand per day reflects that very strong rate environment as well as our time charter out portfolio. On Page 4 of our investor highlights material, you can see that we have 6 Dorian vessels on time charter within the pool indicating spot exposure just over 80% to the 31 vessels in the Helios pool.

Dorian's reported TCE revenue per available day for the quarter was about $63.6 thousand which is the second highest TCE rate we have earned in our corporate existence. For the year, we earned $52.2 thousand per day, with the fourth quarter completely offsetting our sector's relatively slow start to the fiscal year. The current rate environment remains healthy. So Panama Canal transit fees are having an impact on realized rates, We note that most posted TC rates do not include auction fees for VLGCs transmitting the canal, which have ranged from $200 thousand to as high as $4 million in the last weeks.

And, also, they do not include the effect of ballasting around the Cape Of Good Hope, which can also have a significant impact on realized TCEs. We plan to issue our forward booking information in the near future. Daily OpEx for the quarter was $9.55 thousand excluding drydocking related expenses, which was virtually flat with the prior quarter's $9.56 thousand. Our gross time charter in expense for the 6 TCN vessels came in at $18.4 million or about $34.1 thousand per TCN day Thus, those vessels contributed positively to our quarterly profits.

As a reminder, the profit sharing expense on our P and L represents MOL Energia's portion of the net chartering profit as the charter hire earn less the charter hire expense on the BW Tokyo. Total G&A for the quarter was $13.3 million and cash G&A, which is G&A excluding non cash compensation expense was about $11 million This amount included accruals under our bonus plan of $3.5 million the payment of which is subject to completion of our annual audit. $200 thousand of statutory noncash accruals and $300 thousand of predelivery costs related to the Arianne. Excluding those amounts, our G&A was about $7.1 million, which reflects a level that we believe is sustainable for the near term.

Reported adjusted EBITDA for the quarter is $106.6 million Total cash interest expense for the quarter was $6.6 million which is down sequentially from the prior quarter. Principal amortization remained steady at around $13 million We expect the full quarter interest cost of the Arianne to be $800 thousand in the coming quarter. The irregular dividend declared at the beginning of the month of $1 per share is our 10th and brings to $18.65 per share in a regular dividend that we have paid since September 2021. The increase in the dividend versus the prior quarter is consistent with our previous discussions around the topic.

It reflects a balanced mix between results and the long term needs and prospects of the business. Including the irregular dividend to be paid this month, we have paid nearly $770 million of dividends and have generated net income of $835 million since June 30, 2021. Which is the quarter immediately prior to our first irregular dividend. As we have discussed, our Board weighs current earnings, our near term cash forecast future investment needs and the overall market environment among a number of factors in making its determination of the appropriate level, if any, for our dividends. As John Hadjipateras has already mentioned, our sector can be a volatile 1 and our dividend policy needs to reflect that.

The $1 per share irregular dividend certainly reflects a constructive market outlook while also allowing the company the flexibility for future fleet reinvestment. We continue to be on the lookout for fleet renewal opportunities will be judicious with our free cash flow, working to balance shareholder distributions, debt reduction, and fleet investment. With that, I will pass it over to Tim T. Hansen.

Tim T. Hansen Yes. Thank you, Mr. Ted, and good day, everyone. The quarter ended March 31, 2026 ultimately carried the positive momentum from the quarter prior and saw higher freight indices for the VLGC freight markets. Closed my remarks from the quarter prior about likely geopolitical impacts and the VLCC market's ability to demonstrate agility to capture the opportunities that arise from just challenges. We believe both have materialized and that the company has been a key actor in that story. The quarter ending March 31, 2026 is best understood by looking at the period as before hostilities in Iran started and the period after hostilities commenced and to look at them separately.

While Global Seaboard LPG transport was down for the quarter, to levels not seen since the first calendar quarter in 2024. The decline was driven by the de facto closure of the Strait of Hormuz. The decline marks the results of record high production levels from the North America which hits a new record high of exports near the 20 million tons mark. The favorable fundamentals of LPG production and accompanying seaboard transport prior to the closure of the Strait Of Hormuz further supported a first calendar quarter seeing a wide West-East arb in charge and persistently high freight activity levels. This does not mean the freight markets only source new sailing, however.

Prior to the closure of the Strait of Hormuz, industry players were analyzing potential impacts from the removal of President Mato in Venezuela. Microeconomic concerns brought on by the rhetoric threatening the end of NATO and the US Supreme Court striking down Ayrshire tariffs. It is not uncommon to see softness in the first calendar quarter. In the freight markets with lower activity where the imports reduce imports as spring approaches or due to a slowdown in the Far East around the lunar New Year holidays. This was not the case in 2026.

Activity was strong through the holiday season, to compensate for the disruptions we saw in October and November during the port service fee spat between The US and China. Furthermore, the winter in the Far East was long and cold, while cold snaps in the North America was not severe enough to weaken production levels. The west to east arbitrage was therefore applying an VLGC freight was supported by the fundamentals. There were significant challenges to capture the value in the market, however, and periods of uncertainty because of developments in the Israeli fierce protesting in Iran, and worries about NATO cohesion. While none of these factors imply directly impacted the VLGC LPG market, the microeconomic picture was certainly complicated.

If 1 subscribed to the argument that more internationally tradable Venezuelan oil was positive for the world economy. The caveat was if the Chinese economy would suffer by losing near monopoly access to low price administrative and crude oil. If 1 believes that the protests in Iran would trouble the Islamic Republic, and lead to softening sanctions, the likelihood of significant and dramatic scrapping of the shadow fleet, would alter models of vessel supply. Right through the Supreme Court decision to strike down Ayrshire tariffs these geopolitical events, even if not directly impacting the real freight market? For long periods, ensure that the market players remain active at the desk to consider the upsides and the risks.

The period before the death of Ali Khamenei was marked by positive yet to see fundamentals with value captured by an attentive and active market. Once Iran was bombed and thereafter, retaliated against the Gulf neighboring countries, a new and complicated dynamic emerged from the VLGC market. The effect of the regional conflict are felt worldwide and through all parts of the economy. I will focus on the new few key aspects that directly impacted the VLGC markets over the relevant quarter and through April. Regarding freight levels, they have been mostly higher after the closure of the Strait of Hormuz although it was not a consistent increase.

For narrowing windows of belief that the Strait of Hormuz will open, more vessels will hold back from balancing to the West and oversupply the Western market. And during other periods, there was zero belief in the straight opening and more vessels supply was available in the West. High freight has not been disrupted to the arbitrage as that widened dramatically on the back of importing Asian supply shortages. The spot price was bid up, and import demand is kept the arbitrage wide open. The fear of shortages spread to the bunker markets, and the key bunker ports Currently, prices have normalized and concerns about disruptions to supply are less immediate.

But through March, some ports saw a doubling of costs. Some countries ended bunkering services to prevent or to preserve energy stocks. And even to this day, from when storage tanks were reportedly hit with air attacks, the physical export capacity were in question. The higher freight markets on the back of the wide open West-to-East arbitrage was further supported to cover the high bunker expenses for ship owners. 2 additional external factors resulting from the Iran conflict have further raised trade levels. Trade lanes have had to recalibrate and this has successfully resulted in longer ton-miles. The VTC market already demonstrated ability to readjust quickly after the Russia's illegal war in Ukraine.

And through periods of tariffs, wars, and have delivered again now. Minimal ability to supply, for example, India from The Middle East there is been a greater flow of cargoes from The US to China. The length of voyages and port turnaround uncertainty have tightened the market. The Panama Canal has contributed to absorbing vessels from the market, resulting in significantly higher Panama costs with the increase in proportion fees. This is mostly due to all goods and commodities, including LPG, seeing high delivered price in the Far East.

Segment that previously saw less urgency to get to Asia quickly through the Panama Canal returned to use the canal and congestion has been on a steady increase since the bombing of Iran commenced. The impact of an increasingly congested Panama Canal persist through this current calendar quarter as well, continuing to keep the ability availability of vessels tight and the freight market is high. With that, I will pass it over to mister John C. Lycouris.

John C. Lycouris Thank you, Tim. At Dorian LPG, we remain committed to continually enhancing energy efficiency. And promoting the sustainability of both our operations and of our vessels. We currently operate 16 scrubber fitted vessels and 6 dual fuel LPG vessels after taking delivery of the VLGC, Arianne. Higher oil prices in March due to the Middle East conflict and the subsequent blockage of the Strait Of Hormuz led to higher bunker price differentials, which underscore the importance of scrubbers. And our fuel efficiencies efforts. Scrubbers neutralize sulfur oxides from fuel oil. Significantly reduce reducing particulate matter and black carbon emissions when compared with conventional VLSFO, very low sulfur fuel oils.

For 2026, our scrubber vessel saving amounted to about $3.48 thousand per day per vessel. Net of scrubber operating expenses. Fuel differentials between high sulfur fuel oil very low sulfur fuel oil averaged $89 per metric ton. While that of LPG as fuel versus very low sulfur fuel oil stood at about $205 per metric ton. Making LPG economically attractive for our dual fuel vessels. We have now completed the statutory special survey and docking cycles of our 2,014, 2,016 class of vessels with the last vessel completing her special survey during this past quarter. As previously announced, Dorian LPG took delivery in March the 93 thousand cubic meter dual fuel new building, Arianne from Hanwha Ocean.

Arianne is a dual fuel ship, which can operate on LPG and fuel oil, and fit to carry full cargoes of LPG and or ammonia. When operating on LPG, CO2 emissions are approximately 20% lower while sulfur oxides, particulate matter, and other pollutants are significantly reduced. With this second wholly owned dual fuel LPG vessel, 20% of our fleet now runs on low emission alternative fuels. Ariane is also fitted with a hybrid scrubber capable of closed loop operation for restricted ports and for the initial control areas. Our March press release provides additional details on the ship's operating capabilities and her advanced technologies.

MEPC 84 concluded their discussions of the IMO net zero framework without resolving the net zero framework final form and/or its adoption timetable. Alternative proposals emerged during the meeting to amend the proposed framework. But the lack of sufficient support or any single alternative has stalled progress from the net zero framework. The IMO affirmed its preference for a global regulatory approach rather than a fragmented regional measures. If the Net Zero framework is adopted at MEPC 85, in December 2026, It would enter into force in 2028. And its first reporting year is likely to be in 2029.

However, several key issues remain under negotiation including the GHG fuel intensity targets, compliance mechanisms, the role of the IMO Net-Zero Fund, fuel certification rules, and how that framework will align with existing CII and SEMP regulations. Another outcome from the MEPC 84 included the adoption of the Northeast Atlantic ECA which will introduce stricter sulfur oxide particulate matter and NOx requirements from 2027 onwards. We are confident that the Dorian LPG fleet will be prepared to meet regulatory changes in the future. And now I would like to pass it over to John Hadjipateras for his final comments.

John C. Hadjipateras Thank you, John. And Madison, if we have any questions, we are ready to take them.

Operator Thank you. And we will take our first question from Omar Nokta with Clarkson Securities. Please go ahead. Your line is now open.

Analyst (Omar Nokta) Thank you. Hi, John, Ted. Tim, and John. Thanks for the update. Sounds like, you know, clearly a lot of stuff is happening. You have had a nice quarter. And the next 1 looks like it is going to be off the charts. So I just have a couple questions. You know, maybe just first, it looks like you have taken advantage of a pretty good market here. To put some ships away on term charter as you highlighted. I think it is been a while since we have seen you add perhaps this much in duration. So just want to get a sense, you know, what is your appetite to do more of that?

I guess, maybe for both you and the charter, what is the desire look like to add more TC coverage? Then are you willing to disclose any of the terms in terms of day rate?

John C. Hadjipateras Thank you, Omar. Well, we disclosed as much as I think we are entitled to disclose under the contracts that we have. As regard our future appetite, it really is rate dependent You know, there is always this element in a very high spot market where you are giving up the immediate earnings to get the to get the length at the back end. And our I think we have a balanced view. I mean, we are not scared of the spot market. But we if the rates are right, for cover, we are happy to take more. Cover as well.

I know this is not very precise, but it is kind of a general idea of where we are at in terms of our approach to the chartering on term. Okay. That I appreciate it, John. that is helpful.

Theodore Young And I guess maybe, I think, Ted, you were discussing sort of the spot market at the moment in terms of, say, rates and how they are not perhaps indicative of, you know, true earnings when you are taking into account some of the costs at the Panama Canal, whether it is the auction fee or maybe the wait time, or the diversion, Do you care to maybe give a sense of, hey. Headline rates today say they are at $170 thousand per day. What would you say is, like, the true real earnings that are being captured? Any sense you are willing to or able to share? Yeah. Yeah.

I think I think Tim can answer that question.

John C. Hadjipateras Yeah. Tim, you want to take a shot? Yeah.

Tim T. Hansen it is fluctuating quite a lot. I mean, if you see the auction fees, for example, on a Panama run went up to $4 million. So if you divide that over 60-some day run where you are kind of, like, reducing your TCs with $60 thousand-plus a day. Right? But not all hit that. So it has varied quite a lot. Also, if you ballast around the Cape, you have a longer voyage, so you have to spread out the saving. Lump sum freight on more days. Which will which will drop the result even without ballasting or anything by maybe $10 thousand a day.

And you also see even if you get slots on the Panama, You most likely will eat a few days because you do not wanna jeopardize running late for your slots because you will never get in. So it is a bit of idle time. So it is depending on what trades you would pick, but you will easily, as time value is high, $10 thousand $20 thousand $30 thousand below the what the headline rate is. On that. Thank you, Tim. Alright. So it still has the $100 thousand-plus number. it is a little less, sir of course. Yeah. Yeah.

Analyst (Omar Nokta) And then maybe just a last 1 for me, maybe just kind of on the point of the U.S. export market because there is been a lot of discussion on Panama Canal and the diversions. I guess just generally, you know, just given what is going on in the market here over the past, you know, 3 months, almost 3 months, has the VLGC trade and, I guess, your business specifically has it just completely shifted now to a pure US exposure?

Tim T. Hansen Or are there other areas where there you are active where there is, you know, cargoes to be taken? For us as Helios, we track the start, from the from the time where we saw the naval ships heading towards The Gulf, we decided to stay away. So we have always been very focused on the U.S. So up to 80% of our business are U.S. liftings. And if you look count the days with the longer variances, maybe 90% of our coverage has been focused on US. But today, it is basically U.S. and Canada, U.S. on the West Coast. But we do not touch AG. We do fix the occasional West African voyage.

Of course, and if someone wants to pay up for the shorter voyages, I wanna say that we would look at that. But yeah. 99%, I would say U.S. and Canada. Got it. Okay.

Analyst (Omar Nokta) Thanks, Tim, for that very helpful color. And, John, Ted, thank you. I will pass it back.

John C. Hadjipateras Thank you. Yeah, always good questions.

Operator Thank you. And we will move next to Stephanie Moore with Jefferies. Please go ahead. Your line is now open.

Analyst Hi. Good morning. Thank you for the question. Maybe just a follow-up to the last kind of string of questions here. You know, agreed, you know, really strong quarter. Looks like the next quarter is going to be quite robust given the underlying environment. So with that as the backdrop here, and what remains really strong cash generation and obviously a really constructive outlook. Could you just maybe talk to us about how you are prioritizing capital allocation across dividends, deleveraging, fleet expansion, especially in this environment. An update there would be helpful.

John C. Hadjipateras Thanks, Stephanie. And welcome to covering. Our sector. Yes. I am going to hand over to Ted to give you an answer on that.

Theodore Young Hey, Stephanie. I think look, it is a bit of a dynamic balancing act. As you know, our debt amortizes pretty steadily. And most of it is very attractively priced, so we have not seen a need to proactively manage prepaid debt. The dividend is obviously an important part of the story for investors. And we continue to make that a centerpiece of the company's own building. But as was just kind of touched on, you know, it is a little different than, you know, some other sectors, you know, say midstream where it is a little bit easier to quantify how you are gonna break things out.

And I think, you know, from our perspective, it is a bit facts-and-circumstances dependent but we are looking for those opportunities for fleet reinvestment as our fleet gets up in age. it is still a great fleet age. It still has great technology. But I think, you know, if we saw a great opportunity to acquire a meaningful fleet, we would do it. And if that came, if we felt that we had to have some impact on the dividend, we would have to look at that.

On the other hand, it is a really big part of the total shareholder return story and we care about it as share owners. it is a big part of our incentive share program here. So there is a lot of driving forces to maintain a preponderance of focus on the dividend as we go ahead. Thank you. Appreciate that. it is very helpful.

Analyst And then maybe just a high level question for me. As you think about you know, I would love to get your thoughts on just your outlook for the LPG sector for 2026, especially maybe if you touch on if we do see a ceasefire or a bit of normalization in The Middle East you know, how you are viewing the impact on the overall sector would be helpful. that is it.

John C. Hadjipateras Thank you. Tim, do you wanna take a shot at that?

Tim T. Hansen Yeah. Stephanie, Stephanie asked about what our views were on the post Middle East stabilization view of the LPG trade, I am passing it to you because it is a really hard question. Yeah. Yeah. Thank you very much. No problem. I mean, it is it is really depending on when it will happen because let's say, even though we are profiting now from the longer haul and US has managed to produce much more for exports. The LPG is still in short supply in the in the world, and we are seeing if it lasts for longer, it will result in demand destruction.

We also do not know exactly the how badly hurt the Middle East is and on their ability to export once it comes back open. So do we expect at the moment where it opens, we would probably see more vessels available with the ships captured in the Middle East to available in the market, and it will be a little bit of time before the export ramps. Ramps up again. So you could see a bit of a oversupply of shifts at that point, but it is really depending on where the shifts are positioned and at the time.

And how people perceive the ability of the Middle Eastern exporters to ramp up again and whether they would vote ships back to the Middle East or not. But Yeah. Thanks, Tim.

John C. Hadjipateras Tim. Stephanie, as a general remark, I just tell you that our what we are trying to what we try to do all the time is plan for the worst and hope for the best. And I think the worst outcomes are so varied that it is impossible really to handicap them all. But we try. And we are hoping for the best. And at the moment, we are enjoying a good run And think that kind of encapsulates what we would like to say on the subject right now.

Analyst Yeah. No. Appreciate it. Thank you. Did not mean to give you such a nuance question there, but the insight is very helpful. And thank you for thank you for the time.

Theodore Young Thanks, Stephanie. Thank you, Stephanie.

Operator Thank you. And once again, if you would like to ask a question. And we will move next to Climent Molins with Value Investor's Edge.

Analyst (Climent Molins) Hi, and thank you for taking my questions. Tim, you talked about the Panama Canal and the impact that increased transit has had on auction pricing. Does this apply to both the old and the new locks or especially on the latter? And secondly, can you comment on the percentage of VLGCs transiting that are heading towards the Far East have decided to avoid the canal. Good.

John C. Hadjipateras Tim, you answer that 1, please?

Tim T. Hansen Yeah. So the auction fees at the moment is the impact is on the new canal. There has been some increases on the old canal as well, on the old locks, But not to any comparable effect So it is mainly the new canal You could see some auction fees on the old canal coming up as there is going to be some repairs and maintenance in June. So that can change. But at the moment, the increases we have seen are at least on the auction fees on the new canal. With regards to routing, we see more and more people routing via the Cape in between as we have experienced the high canal cost.

But it is a moving situation. It was a step-up amount from the an absolute amount. and at that time, it would already be on its ballast leg towards the Panama. So first of all, you have a risk appetite and evaluating the risk reward of taking the chance to go over there. Okay. that is very, very helpful. And I have a follow-up regarding-- I have a few issues. [Inaudible] to Authority to build more flexibility to tackle this, should we see a repeat of the El Nino and little rain in the region. Or should that happen do you believe that we would see a, let's say, a repeat of what we saw a couple of years ago.

I think they learned a lot Do you think that is the case? By being able to retain water, and that it has less outflux of the of the water. But they cannot prevent it, so we will see a result of this if there is an issue, which is likely to or 70% or whatever it is likelihood at the moment. Would happen over a longer period. We will see reduced draft in the Panama Canal, but not maybe not to the extent as in 2023. Okay. that is helpful. I will turn it over.

Analyst (Climent Molins) Thank you for taking my questions.

Tim T. Hansen Thank you very much.

John C. Hadjipateras Madison, I think we can close and thank everyone for your interest and see you next quarter.

Operator Thank you. This concludes today's meeting. We appreciate your time and participation. May now disconnect.