STEALTHGAS, a ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced its unaudited financial and operating results for the second quarter and six months ended June 30, 2024.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
- All-time record quarterly Net Income of $25.8 million for the second quarter of 2024, a 145.8% increase compared to last year’s second quarter, corresponding to a basic EPS of $0.70.
- Revenues increased by 13.9% compared to the same period of last year to $41.8 million. Voyage and operating expenses decreased by 10% and Income from operations increased by 59.5% compared to the same period of last year.
- Further increased period coverage. About 85% of fleet days for remainder of 2024 are secured on period charters, with total fleet employment days for all subsequent periods generating over $220 million (excl. JV vessels) in contracted revenues.
- Continued to repay debt, making $85.3 million in debt repayments during the first six months and $21.3 million so far during the third quarter.
- Maintaining ample cash and cash equivalents (incl. restricted cash) of $76.6 million as of June 30, 2024 enabling the Company to further reduce debt.
Second Quarter 2024 Results1:
- Revenues for the three months ended June 30, 2024 amounted to $41.8 million compared to revenues of $36.7 million for the three months ended June 30, 2023, based on an average of 27.0 vessels and 30.5 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 June 30, 2024 were $2.7 million and $12.5 million, respectively, compared to $3.5 million and $13.4 million, respectively, for the three months ended June 30, 2023. The $0.8 million decrease in voyage expenses was the result of lower spot days, while the $0.9 million, or 6.7%, 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 three months ended June 30, 2024 and 2023 were $0.6 million and $1.5 million, respectively. Drydocking expenses during the second quarter of 2024 mainly relate to the completed drydocking of one vessel, while the drydocking of one vessel was still in progress, compared to the completed drydocking of two of the larger handysize vessels in the fleet in the same period of last year.
- General and administrative expenses for the three months ended June 30, 2024 and 2023 were $2.4 million and $1.2 million, respectively. The change is mainly attributed to the increase in stock-based compensation expense.
- Depreciation for the three months ended June 30, 2024 and 2023 was $6.5 million and $6.0 million, respectively, a $0.5 million increase despite the decrease in average vessels owned by the Company, as the Company partly replaced some of the older vessels with newer and bigger ones which have a higher cost.
- Impairment loss for the three months ended June 30, 2024 was nil compared to $2.8 million for the same period of last year, which related to two vessels for which the Company had entered into separate agreements to sell them to third parties.
Gain on sale of vessels for the three months ended June 30, 2024 was nil compared to $2.9 million for the same period last year, which was primarily due to the sale of two of the Company’s vessels.
- Interest and finance costs for the three months ended June 30, 2024 and 2023, were $2.7 million and $2.5 million, respectively. The $0.2 million increase from the same period of last year is mostly due to the reduction of income from closing of interest rate swap positions as a result of debt prepayments and due to the increase in variable interest rates.
- Equity earnings in joint ventures for the three months ended June 30, 2024 and 2023 was a gain of $11.5 million and $1.7 million, respectively. The $9.8 million increase was mainly due to the gain derived from the sale of one vessel owned by one of our joint ventures.
- As a result of the above, for the three months ended June 30, 2024, the Company reported net income of $25.8 million, compared to net income of $10.5 million for the three months ended June 30, 2023. The weighted average number of shares outstanding, basic, for the three months ended June 30, 2024 and 2023 was 35.2 million and 38.1 million, respectively.
- Earnings per share, basic and diluted, for the three months ended June 30, 2024 amounted to $0.70 compared to earnings per share of $0.27 for the same period of last year.
- Adjusted net income was $27.5 million corresponding to an Adjusted EPS, basic, of $0.75 for the three months ended June 30, 2024 compared to Adjusted net income of $10.7 million corresponding to an Adjusted EPS of $0.28 for the same period of last year.
- EBITDA for the three months ended June 30, 2024 amounted to $34.1 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 June 30, 2024 compared to 30.5 vessels for the same period of 2023.
Six Months 2024 Results:
- Revenues for the six months ended June 30, 2024, amounted to $83.4 million, an increase of $8.7 million, or 11.6%, compared to revenues of $74.7 million for the six months ended June 30, 2023, based on an average of 27.0 vessels and 31.4 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 six months ended June 30, 2024 were $5.5 million and $24.0 million, respectively, compared to $7.5 million and $27.9 million for the six months ended June 30, 2023. The $2.0 million decrease in voyage expenses was mainly due to the decrease in spot days, while the $3.9 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 six months ended June 30, 2024 and 2023 were $0.6 million and $2.6 million, respectively. The costs for the six months ended June 30, 2024 mainly related to the completed drydocking of one vessel 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 six months ended June 30, 2024 and 2023 were $4.6 million and $2.0 million, respectively. The change is mainly attributed to the increase in stock-based compensation expense.
- Depreciation for the six months ended June 30, 2024, was $13.0 million, a $0.4 million increase from $12.6 million for the same period of last year, as the Company partly replaced some of the older vessels with newer and bigger ones which have a higher cost.
- Impairment loss for the six months ended June 30, 2024 and 2023 were nil and $2.8 million relating to two vessels, for which the Company had entered into separate agreements to sell them to third parties.
- Gain on sale of vessels for the six months ended June 30, 2024 was $0.04 million compared to $2.9 million for the same period last year. The decrease is attributed to the higher gain from the sale of two vessels during the six months ended June 30, 2023 compared to the gain from the sale of two vessels during the six months ended June 30, 2024 which had been classified as held for sale as of December 31, 2023.
- Interest and finance costs for the six months ended June 30, 2024 and 2023 were $5.9 million and $5.1 million respectively. The $0.8 million, or 15.7%, increase from the same period of last year is mostly due to the reduction of income from closing of interest rate swap positions as a result of debt prepayments and due to the increase in variable interest rates.
- Equity earnings in joint ventures for the six months ended June 30, 2024 and 2023 was a gain of $14.1 million and a gain of $10.5 million, respectively. The $3.6 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 six months ended June 30, 2024 of $43.5 million, compared to a net income of $27.3 million for the six months ended June 30, 2023. The weighted average number of shares outstanding, basic, for the six months ended June 30, 2024 and 2023 was 35.2 million and 38.1 million, respectively. Earnings per share, basic and diluted, for the six months ended June 30, 2024 amounted to $1.20 and $1.19, respectively, compared to earnings per share, basic and diluted, of $0.71 and $0.71, respectively, for the same period of last year.
- Adjusted net income was $46.7 million, corresponding to an Adjusted EPS, basic, of $1.28 per share, for the six months ended June 30, 2024 compared to adjusted net income of $28.0 million, or $0.73 per share, for the same period of last year.
- EBITDA for the six months ended June 30, 2024 amounted to $60.7 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 six months ended June 30, 2024, compared to 31.4 vessels for the same period of 2023.
- As of June 30, 2024, cash and cash equivalents (including restricted cash) amounted to $76.6 million and total debt amounted to $107.6 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):
- A three years time charter extension for its 2024 built LPG carrier Eco Oracle, until Jan 2028.
- A three years time charter extension for its 2006 built LPG carrier Gas Alice, until Jul 2027.
- A two years time charter extension for its 2014 built LPG carrier Eco Invictus, until Oct 2026.
- A two years time charter for its 2011 built LPG carrier Gas Cerberus, until Dec 2026.
- A two years time charter for its 2011 built LPG carrier Gas Elixir, until Oct 2026.
- A twelve months time charter extension for its 2021 built LPG carrier Eco Blizzard, until Oct 2025.
- A twelve months time charter extension for its 2015 built LPG carrier Eco Royalty, until Aug 2025.
- A three months time charter extension for its 2020 built LPG carrier Eco Alice, until Sep 2024 and subsequently a four months time charter until Jan 2025.
As of September 2024, the Company has total contracted revenues of approximately $220 million.
For the remainder of the year 2024 the Company has circa 85% of fleet days secured under period contracts and 55% for the year 2025.
The previously announced sale of the joint venture vessel Eco Ethereal was concluded in late April 2024 and the Company received a $24 million interim distribution from the joint venture.
CEO Harry Vafias Commented: «Today we announce yet another record breaking quarter. Profits that were more than double compared to last year of $25.8 million for the second quarter of 2024 are an all time high for our company in the 20 years since its inception. While we managed to contain our operating costs we took full advantage of a strong chartering market fixing vessels at higher rates during that and previous quarters whose benefits we are enjoying now. The bottom line was furthered bolstered by the return from our investments related to the sale of a vessel by one of our joint ventures. We continue with the strategy of debt reduction and in the current quarter we have so far repaid over $21 million of debt and now have 24 unencumbered vessels, the vast majority of the fleet, and a net debt ratio below 5%. Market sentiment continues to be bullish and as we leave the seasonally weaker third quarter and enter into the winter months we are starting to see a strengthening in the market and, as a positive sign, interest from charterers to fix for longer than one year periods. As such we have recently fixed a number of longer charters that we announced today, bringing the contract coverage to 55% for next year, while all of our 27 fully owned vessels are currently fixed under period charters».