Oslo over the counter (OTC) listed Dorian has taken the trio at a fixed price of $75m a piece just a couple of weeks after taping investors for $100m.
The move takes the company’s orderbook at HHI to six VLGCs and its overall catalogue to 19.
Delivery of the extra trio will take place between the second and fourth quarters of 2015.
Dorian has also secured five-year contracts for two of its VLGCs. Those deals will begin in the third and fourth quarters of 2014.
As TradeWinds has reported the owner has been hotly tipped to exercise the options after its last equity issue which took its total fundraising to $590m.
Analysts say the shares sale left Dorian well funded on its other 16 newbuidlings. Erik Nikolai Stavseth of Arctic Securities says the owner is likely to need additional equity of $115m to $135m to pay for the three options.
“The options had a fixed price of $75m to our knowledge and with our current valuation of $82m for a 2015 delivery we see the decision as sensible for Dorian,” he said.
“The alternative to Dorian declaring the vessels was to sell the options and see another player take the berths – reducing its competitive position.”
Full listing looms
Analysts at RS Platou Markets believe Dorian will use a full stock listing to plug any liquidity shortage on the newbuildings. This is expected during the first half of 2014.
Dorian was already the second largest VLGC owner in the world after BW LPG. It took that position from Avance Gas following its takeover of the Scorpio Tankers newbuilding fleet in a cash plus shares deal last year.
Dorian is not the only owner to have booked VLGCs today.
DSME has secured a contract for eight firm VLGCs from two owners, including four from newcomer China Peace.
