StealthGas, a ship-owning company serving the liquefied petroleum gas sector of the international shipping industry, announced its unaudited financial and operating results for the third quarter and nine months ended September 30, 2024.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
All-time record Net Income of $55.7 million for the nine months of 2024, a 29.3% increase compared to the same period last year. Strong profitability continued for the third quarter, with Net income of $12.1 million corresponding to a basic EPS of $0.33.
Revenues increased by 16.7% compared to the same period of last year to $40.4 million for the third quarter of 2024, despite a decrease in utilization mainly due to four vessels undergoing drydock during the third quarter of 2024 compared to zero vessels last year.
Further increased period coverage. About 65% of fleet days for 2025 are already secured on period charters, with total fleet employment days for all subsequent periods generating over $220 million (excl. JV vessels) in contracted revenues.
Continued reducing leverage, making $106.6 million in debt repayments during the first nine months of 2024. Currently, 25 out of 28 vessels in the fully owned fleet are unencumbered.
Maintaining ample cash and cash equivalents (incl. restricted cash) of $77.4 million as of September 30, 2024 enabling the Company to further reduce debt.
Third Quarter 2024 Results:
- Revenues for the three months ended September 30, 2024 amounted to $40.4 million compared to revenues of $34.7 million for the three months ended September 30, 2023, based on an average of 27.0 vessels and 27.6 vessels owned by the Company, respectively, as the vessels remaining in the fleet earned higher revenues due to better market conditions.
- Voyage expenses and vessels’ operating expenses for the three months ended September 30, 2024 were $2.9 million and $12.3 million, respectively, compared to $2.4 million and $12.3 million, respectively, for the three months ended September 30, 2023. The $0.5 million increase in voyage expenses was mainly due to bunker expenses, while the vessels’ operating expenses remained stable between 2024 and 2023.
- Drydocking costs for the three months ended September 30, 2024 and 2023 were $2.9 million and $0.06 million, respectively. Drydocking expenses during the third quarter of 2024 mainly relate to the completed drydocking of four vessels, while the drydocking of one vessel was still in progress, compared to no drydocking of vessels in the same period of last year.
- General and administrative expenses for the three months ended September 30, 2024 and 2023 were $2.7 million and $1.7 million, respectively. The change is mainly attributed to the increase in stock-based compensation expense.
- Depreciation for the three months ended September 30, 2024 and 2023 was $6.5 million and $5.5 million, respectively, a $1.0 million increase despite the decrease in average number of vessels owned by the Company, as the Company partly replaced some of the older vessels with newer and larger ones which have a higher cost.
- Net gain on sale of vessels for the three months ended September 30, 2024 was nil compared to $4.7 million for the same period last year, which was primarily due to the sale of two of the Company’s vessels during the three months ended September 30, 2023.
- Interest and finance costs for the three months ended September 30, 2024 and 2023, were $1.8 million and $2.5 million, respectively. The $0.7 million decrease from the same period of last year is primarily due to continued debt prepayments.
- Equity earnings in joint ventures for the three months ended September 30, 2024 and 2023 was a gain of $1.1 million and $0.9 million, respectively. The $0.2 million increase was primarily due to slightly higher revenues due to better market conditions.
- As a result of the above, for the three months ended September 30, 2024, the Company reported net income of $12.1 million, compared to net income of $15.7 million for the three months ended September 30, 2023. The weighted average number of shares outstanding, basic, for the three months ended September 30, 2024 and 2023 was 35.2 million and 37.3 million, respectively.
- Earnings per share, basic, for the three months ended September 30, 2024 amounted to $0.33 compared to earnings per share, basic, of $0.41 for the same period of last year.
- Adjusted net income was $14.2 million corresponding to an Adjusted EPS, basic, of $0.38 for the three months ended September 30, 2024 compared to Adjusted net income of $12.0 million corresponding to an Adjusted EPS, basic, of $0.31 for the same period of last year.
- EBITDA for the three months ended September 30, 2024 amounted to $19.7 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
- An average of 27.0 vessels were owned by the Company during the three months ended September 30, 2024 compared to 27.6 vessels for the same period of 2023.
Nine months 2024 Results:
- Revenues for the nine months ended September 30, 2024, amounted to $123.8 million, an increase of $14.4 million, or 13.2%, compared to revenues of $109.4 million for the nine months ended September 30, 2023, based on an average of 27.0 vessels and 30.1 vessels owned by the Company, respectively, as the vessels remaining in the fleet earned higher revenues due to better market conditions.
- Voyage expenses and vessels’ operating expenses for the nine months ended September 30, 2024 were $8.4 million and $36.2 million, respectively, compared to $9.9 million and $40.2 million for the nine months ended September 30, 2023. The $1.5 million decrease in voyage expenses was mainly due to the decrease in spot days, while the $4.0 million decrease in vessels’ operating expenses was mainly due to the decrease in the average number of owned vessels in our fleet.
- Drydocking costs for the nine months ended September 30, 2024 and 2023 were $3.5 million and $2.6 million, respectively. The costs for the nine months ended September 30, 2024 mainly related to the completed drydocking of four vessels while one vessel was still in progress, while the costs for the same period of last year mainly related to the completed drydocking of three of the larger handysize of vessels.
- General and administrative expenses for the nine months ended September 30, 2024 and 2023 were $7.3 million and $3.7 million, respectively. The change is mainly attributed to the increase in stock-based compensation expense.
- Depreciation for the nine months ended September 30, 2024, was $19.5 million, a $1.4 million increase from $18.1 million for the same period of last year, as the Company partly replaced some of the older vessels with newer and larger vessels which have a higher cost.
- Impairment loss for the nine months ended September 30, 2024 and 2023 were nil and $2.8 million, respectively, relating to two vessels for which the Company had entered into separate agreements to sell them to third parties during the nine months ended September 30, 2023.
- Gain on sale of vessels for the nine months ended September 30, 2024 was $0.05 million compared to $7.6 million for the same period last year. The decrease is attributed to the sale of four of the Company’s vessels during the nine months ended September 30, 2023 compared to the sale of two vessels during the nine months ended September 30, 2024, which had been classified as held for sale as of December 31, 2023.
- Interest and finance costs for the nine months ended September 30, 2024 and 2023 were $7.6 million and $7.6 million, respectively.
- Equity earnings in joint ventures for the nine months ended September 30, 2024 and 2023 was a gain of $15.2 million and a gain of $11.4 million, respectively. The $3.8 million increase from the same period of last year is mainly due to a profitable sale of one of the Medium Gas carriers owned by one of our joint ventures.
- As a result of the above, the Company reported a net income for the nine months ended September 30, 2024 of $55.7 million, compared to a net income of $43.0 million for the nine months ended September 30, 2023. The weighted average number of shares outstanding, basic, for the nine months ended September 30, 2024 and 2023 was 35.2 million and 37.8 million, respectively.
- Earnings per share, basic, for the nine months ended September 30, 2024 amounted to $1.52 compared to earnings per share, basic, of $1.12 for the same period of last year.
- Adjusted net income was $60.8 million, corresponding to an Adjusted EPS, basic, of $1.67 per share, for the nine months ended September 30, 2024 compared to adjusted net income of $40.0 million, or $1.04 per share, for the same period of last year.
- EBITDA for the nine months ended September 30, 2024 amounted to $80.4 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
- An average of 27.0 vessels were owned by the Company during the nine months ended September 30, 2024, compared to 30.1 vessels for the same period of 2023.
- As of September 30, 2024, cash and cash equivalents (including restricted cash) amounted to $77.4 million and total debt amounted to $86.4 million.
[1] EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Refer to the reconciliation of these measures to the most directly comparable financial measure in accordance with GAAP set forth later in this release.
Fleet Update Since Previous Announcement
- The Company announced the conclusion of the following chartering arrangements (of three or more months duration):
- An eighteen months time charter extension for its 2007 built LPG carrier Gas Flawless, until Jul 2026.
- A twelve months time charter for its 2008 built LPG carrier Gas Defiance, until Dec 2025.
- A twelve months time charter for its 2015 built LPG carrier Eco Galaxy, until Sep 2025.
- A six months time charter for its 2012 built LPG carrier Gas Esco, until Mar 2025.
- A three months time charter for its 2014 built LPG carrier Eco Chios, until Mar 2025.
As of November 2024, the Company has total contracted revenues of approximately $220 million.
For 2025 the Company has circa 65% of fleet days secured under period contracts and contracted revenues of approximately $100 million.
In late September 2024, the joint venture owning the vessel Gas Shuriken entered into an agreement to sell the vessel to a third party. The delivery of the vessel is expected to take place in January 2025.
On November 4, 2024, the debt facility on the vessels Gas Shuriken and Gas Defiance, owned through a joint venture, matured and was paid off. Immediately following the debt repayment, the Company also acquired full control of the vessel Gas Defiance purchasing it from its joint venture partner, as such the vessel going forward will be part of the Company’s fully owned fleet.
CEO Harry Vafias Commented
“Our Company had another quarter of high performance during the seasonally weaker summer months. We managed to increase revenues by 17% compared to last year even though there was a heavy drydock schedule during the third quarter that reduced our fleet’s utilization. So far this year we have announced record profits and with the market strengthening during the winter we are on track for another record year. There is continuing interest from charterers on period coverage and we now have contract coverage of 65% for 2025, securing approximately $100 million in revenues for next year. Particularly in Europe, where the majority of our fleet is located, period rates for pressurized vessels are at historical highs. Currently 25 vessels in our fleet are unencumbered. We have focused on our strategic goal of deleverage and as of the end of the third quarter we had $86 million in loans and $77 million in cash, a testament to the Company’s strong financial position”.