0001596993-25-000049
SEC filingRevenue rose 50.5% on higher TCE rates and fleet expansion; net income surged to $55.4M.
For the three months ended September 30, 2025, total revenue was $124.1 million, a 50.5% increase from $82.4 million in the prior year period. The primary driver was a 45% rise in average TCE rates to $53,725 per day, supported by higher spot rates (Baltic LPG Index averaged $81.3 vs. $52.0) and lower bunker prices ($505/ton vs. $610/ton). Available days increased by 83 days to 2,290 due to fleet expansion, partially offset by drydocking off-hire. Net income surged to $55.4 million from $9.4 million, reflecting revenue growth, lower interest and finance costs ($7.6 million vs. $9.4 million), and a significant reduction in unrealized derivative losses ($0.4 million vs. $5.6 million). Vessel operating expenses per calendar day rose 5.8% to $10,705, but excluding drydock costs, they declined 3.0%. General and administrative expenses decreased 27.0% to $12.0 million due to lower cash bonuses and stock-based compensation.
The company operates as a single segment focused on VLGC transportation. All vessels are employed through the Helios Pool, which aggregates revenues and expenses. The revenue mix shifted entirely toward net pool revenues ($120.6 million vs. $79.9 million) as time charter revenues declined to zero. Other revenues increased to $3.4 million from $0.1 million. The improvement in TCE rates and fleet utilization drove segment profitability, with Adjusted EBITDA reaching $85.7 million, up from $46.2 million.
Management did not provide quantitative guidance but highlighted several strategic priorities: continuing to employ vessels on a mix of spot, time charter, and COA charters; expanding the fleet with a newbuilding VLGC/AC expected in Q2 2026; and maintaining financial flexibility through cash reserves ($268.3 million) and a revolving credit facility. Dividend policy remains discretionary, with irregular dividends declared in the current period. The company expects to finance future acquisitions through internal funds, debt, or equity. No material impairments were identified, and no off-balance sheet arrangements exist.
Operating cash flow of $47.2M was well below net income of $65.5M, a coverage ratio of 0.72x. The gap largely stemmed from a $42.6M increase in due from related parties (likely amounts owed from pool partners) and a $17.1M reduction in operating lease liabilities, partially offset by non-cash add-backs (depreciation $36.3M, stock comp $6.7M, etc.). Capex of $16.3M was elevated for vessel construction, consuming 34% of CFO. Free cash flow (CFO minus capex) was $30.9M, insufficient to cover $52.3M in dividends and buybacks, requiring debt or cash drawdowns. Financing cash outflow of $79.7M was driven by dividends ($47.6M), debt repayments ($27.4M), and buybacks ($4.7M). The company ended the period with $268.4M in cash, down from $317.0M at the start. The $48.6M net decrease in cash is consistent with the operating deficit after investing and financing. Notably, the prior-year period had a $89M equity issuance, boosting cash. The current period's working capital swing in receivables from related parties is a key risk to monitor.