Friday, June 9, 2023
HomeEditor’s PicksStealthGas reports record quarterly net profit

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

StealthGas reports record quarterly net profit

STEALTHGAS announced its unaudited financial and operating results for the first quarter ended March 31, 2023.

OPERATIONAL AND FINANCIAL HIGHLIGHTS1

  • Entered into a number of medium to long term charters increasing forward coverage. About 80% of fleet days are secured on period charters for the remainder of 2023, with total fleet employment days for all subsequent periods generating approximately $115 million (excl. JV vessels) in contracted revenues.
  • During Q1 23’, two of the three vessels previously announced as being sold were delivered to their buyers, and the third one was delivered in April 2023. In addition, one medium gas carrier, the Eco Evoluzione, was sold at a profit of $13.9 million by one of the joint ventures to a third party and delivered to the buyers in March 2023.    
  • Recently entered into sale agreements for four vessels in the fleet, the Eco Czar, the Eco Nemesis, the Eco Texiana and the Eco Enigma. All vessels were sold at a profit and the sale will be reflected in the second and third quarter results depending on the timing of the delivery of the vessels.    
  • Reduced debt by $31.7 million from $277.1 million as of December 31, 2022, net of deferred finance charges, to $245.4 million as of March 31, 2023.    
  • Revenues at $38.1 million for Q1 23’ despite having reduced the number of vessels in the fleet from 35 vessels at the end of Q1 22’ to 32 vessels at the end of Q1 23’.    
  • Modest increase of $0.6 million (or 2.2%) in total expenses from Q1 22’ to Q1 23’ resulting in improved income from operations of $9.7 million for Q1 23’, an increase of $1.5 million (or 18.3%) compared $8.2 million for Q1 22’.    
  • Net Income of $16.8 million for Q1 23’ corresponding to an EPS of $0.44, the highest quarterly profits of the last decade, and an increase of 121% compared to Q1 22’.

_________________________

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.

First Quarter 2023 Results:

  • Revenues for the three months ended March 31, 2023 amounted to $38.1 million compared to revenues of $35.9 million for the three months ended March 31, 2022 while the fleet over the corresponding periods was reduced from 35 vessels at the end of Q1 22’ to 32 vessels at the end of Q1 23’. The vessels remaining in the fleet earned higher revenues compared to the same period in the prior year due to improved market conditions.
  • Voyage expenses and vessels’ operating expenses for the three months ended March 31, 2023 were $4.0 million and $14.5 million, respectively, compared to $4.2 million and $12.9 million, respectively, for the three months ended March 31, 2022. While voyage expenses were relatively stable despite a decrease in spot market days, there was a $1.6 million increase in vessels’ operating expenses compared to the same period of 2022 mainly due to an increase in crew expenses.
  • Drydocking costs for the three months ended March 31, 2023 and 2022 were $1.1 million and $0.4 million, respectively. Drydocking expenses during the first quarter of 2023 mainly relate to the drydocking of one vessel and preparation of others.
  • Depreciation for the three months ended March 31, 2023 and 2022 was $6.6 million and $7.0 million, respectively, due to the lower average number of vessels owned in 2023.
  • Impairment loss for the three months ended March 31, 2023 was $0.1 million, while the impairment loss for the same period of last year of $0.5 million was related to the sale of one LPG carrier.
  • Interest and finance costs for the three months ended March 31, 2023 and 2022 were $2.6 million and $2.4 million, respectively. The $0.2 million increase from the same period of last year is very modest when considering the interest rate rises over the period because included in the $2.5 million were profits from the unwinding of two interest rate swaps that were terminated before their maturity when the corresponding loan was repaid.
  • Interest income for the three months ended March 31, 2023 and 2022 was $1.0 million and $0.01 million, respectively. The increase is attributed to increases in interest rates over the corresponding period.
  • Equity earnings in joint ventures for the three months ended March 31, 2023 and 2022, was a gain of $8.8 million and $1.7 million, respectively. The $7.1 million increase from the same period of last year is mainly due to the profitable sale of a vessel during the first quarter of 2023 by one of the joint ventures.
  • As a result of the above, for the three months ended March 31, 2023, the Company reported net income of $16.8 million, compared to a net income of $7.6 million for the three months ended March 31, 2022, an increase of 121%. The weighted average number of shares outstanding for the three months ended March 31, 2023 and 2022 was 38.0 million and 37.9 million, respectively.
  • Earnings per share, basic and diluted, for the three months ended March 31, 2023 amounted to $0.44 compared to earnings per share of $0.20 for the same period of last year and increase of 120%.
  • Adjusted net income was $17.3 million corresponding to an Adjusted EPS of $0.45 for the three months ended March 31, 2023 compared to Adjusted net income of $8.8 million corresponding to an Adjusted EPS of $0.23 for the same period of last year, an increase of 97%.
  • EBITDA for the three months ended March 31, 2023 amounted to $25.0 million. An average of 32.3 vessels were owned by the Company during the three months ended March 31, 2023 compared to 36.5 vessels for the same period of 2022.
  • As of March 31, 2023, cash and cash equivalents and short term investments amounted to $92.6 million and total debt amounted to $245.4 million.

Fleet Update Since Previous Announcement

The Company announced the conclusion of the following chartering arrangements (of three or more months duration): 

  • A three years time charter for its 2009 built LPG carrier Gas Exelero, until Apr 2026.
  • A fourteen months time charter for its 2014 built LPG carrier Eco Stream, until Jun 2024.
  • A twelve months time charter for its 2006 built LPG carrier Eco Royalty, until Feb 2024.
  • A twelve months time charter extension for its 2006 built LPG carrier Gas Alice, until Jul 2024.
  • A twelve months time charter extension for its 2018 built LPG carrier Eco Ice, until Oct 2024.
  • A six months time charter extension for its 2015 built LPG carrier Eco Alice, until Sep 2023.
  • A six months time charter extension for its 2009 built LPG carrier Gas Astrid, until Sep 2023.
  • A six months time charter for its 2016 built LPG carrier Eco Nical, until Oct 2023.
  • A five months time charter for its 2011 built LPG carrier Gas Elixir, until Aug 2023.

As of May 2023, the Company has total contracted revenues of approximately $115 million.

For the remainder of the year 2023, the Company has about 80% of fleet days secured under period contracts, with contracted revenues of approximately $70 million.

In addition, the following chartering arrangements were concluded for the joint venture vessels:

  • A twelve months time charter for the 2008 built LPG carrier the Eco Ethereal, until Apr 2024 with an option for the charterer to extend for an additional twelve months and a purchase option which if not exercised the joint venture has a sell option.

During March 2023, the joint-venture sold and delivered the 2010 built Eco Evoluzione to a third party. For Q1 23’ the joint venture recognized a gain of $13.9 million from the sale, with the Company’s share, amounting to $7.1 million, being included in the equity earnings in joint ventures. The proceeds from the sale, together with retained earnings were distributed to the joint venture partners in April 2023. The Company received $19.2 million in this distribution which will be reflected in its Q2 23’ cashflow results.

The Company also announced the sale of four vessels, the 2015 built Eco Czar, Eco Nemesis, and Eco Enigma and the 2020 built Eco Texiana to third parties. The deliveries of the vessels are expected to be concluded between May and July. All vessels were sold at a profit that the Company will recognize, as well as the sale proceeds to be reflected in the cashflow results, during the respective quarter of each vessel’s delivery.

CEO Harry Vafias Commented

We are reaping the fruits of the favourable market conditions and our sound business strategy and execution. After having reported in the previous quarter record annual profits, it is with great pleasure that we announce this time the highest quarterly profit in at least the last decade. The laudable bottom line results were driven by two factors, the strong performance and revenue generation from our existing fleet and the returns we realised from the investments in our joint ventures following the sale of one vessel. The profitable sale of four vessels that we announced today will further boost our future results. We are taking the opportunity to divest assets in a rising market and will continue to diversify the fleet with the timely addition of bigger sized vessels. At the same time we are renewing our efforts to contain our cost base and will make use of our liquidity to deleverage in a rising interest rate environment and return value back to our shareholders via a $15 million share buyback. We expect these steps will solidify the company’s future, while at the same time we remain positive for the medium term outlook of the LPG shipping market.

Related Posts

Video

Finance & Economy
Shipping News
Ports

Trafigura publishes 2023 interim results showing a strong performance

Trafigura, a market leader in the global commodities industry, released its 2023 Interim Report today for the six-month period ended 31 March 2023. The results...

Globus Q1 results hit by weak dry bulk market

Globus Maritime Limited, a dry bulk shipping company, reported its unaudited consolidated operating and financial results for the quarter ended March 31, 2023. Revenue $8.6 million...

BW LPG appoints new CFO

BW LPG announced that it has appointed Ms Samantha Xu as Chief Financial Officer (CFO), effective 1 September 2023. Ms Xu has over 20 years...

Frontline Posts Highest First Quarter Results Since 2008

Frontline plc reported unaudited results for the three months ended March 31, 2023: Highlights Highest first quarter profit since 2008 of $199.6 million, or $0.90 per...

Diana Shipping posts slightly lower Q1 profit; takes out $123m in loans

Diana Shipping reported net income of $22.7 million and net income attributed to common stockholders of $21.3 million for the first quarter of 2023....

Celestyal Participates In Promotion Of The Tourist Destination Of Central Macedonia

Celestyal, the award-winning, number one choice for travellers to the Greek Islands and the...

Capesize, panamax gains drive Baltic index higher

The Baltic Exchange’s main sea freight index rose for a fourth straight session on...

Baltic rises to over 3-month peak on firm demand for larger vessels

The Baltic Exchange’s main sea freight index rose on Wednesday to scale its highest...

Baltic index logs best day in nearly 3 months

The Baltic Exchange’s main sea freight index posted its biggest single-day gain since mid-March...

Taiwan Shipping Firms Set to Hand Out Bumper Bonuses Again

Taiwanese shipping companies are handing out bumper mid-year bonuses despite a slump in global...

Iraklio port tender set for another delay

The opening of the binding financial offers for 67% of Iraklio Port Authority had been scheduled for Thursday, but this is no longer expected...

APM Terminals extends concession of Kalundborg container terminal

APM Terminals has reached an agreement with the Port of Kalundborg to extend the concession of Kalundborg container terminal by 10 years to 2033. In...

US West Coast port workers shut terminals in showdown over pay

The employers of more than 22,000 dock workers at U.S. West Coast seaports on Friday said the union representing those laborers “is staging concerted...

DP World Completes Terminal Expansion Project Vancouver Port

DP World has completed the AED954 million ($259.78 million) Centerm expansion project, increasing container throughput at the Port of Vancouver by 60 percent. The terminal...

DP World completes AED 954 million Vancouver port expansion

DP World and the Vancouver Fraser Port Authority have celebrated two historic events – the completion of the Centerm Expansion Project at DP World...