StealthGas (GASS) 21 Nov 232023 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the StealthGas Q3 2020 Results Conference Call and Webcast. [Operator Instructions] Please note that today's conference is being recorded. I would now like to turn the conference over to your speaker, Michael Jolliffe, Chairman of the Board of Directors. Please go ahead.

much. very you Thank everyone. morning, Good welcome to and Earnings Call Quarter our Third Webcast. XXXX Conference And Michael the I Chairman Jolliffe, am of Board Directors. of to me to Relations joining aspects. Vafias, outlook on call Konstantinos discuss CEO and today company market handling discuss the And Sistovaris, and is our our Investor Harry financial

implicitly are if Before disclaimer At future disclosed Securities X statements, our could would remind out current otherwise Slide which you that of we views I stated on Commission. this events are will amounts moment we Exchange with to StealthGas our this also like presentation, to the in presentation. with and U.S. all Risks reflect to performance. financial be point unless that stage, commence respect a further read take would dollars. you discussing filing all like forward-looking I in quoted, and clarified, to

the best today. and XXXX, our Today, quarter announcing third released X-month second the best-ever results we ever profit results for quarterly till

let's So the these general. you update in market strategy and the results company's on and to proceed discuss

We July. Slide with of concluded vessels, Turning sale fleet in previously X. update. We to highlights, first some and the those delivering X announced summarized early operations starting

year. As vessels these buyers next have and first the to the quarter, we be X discussed in to we of still quarter expect previous more deliver to delivered in

newbuilding medium a the quarter October, on took carrier, in of our gas current the X Sorcerer, venture During deployed that joint Eco charter. period immediately was delivery

XXXX. of we to tenors were charters, new our chartering, of charters years. X days active X for of period of these In concluded over were and very Most longer-than-usual terms XX% over X fleet securing of

revenues for periods. of contracted all vast subsequent million have We $XXX

very highlights -- X% voyage that fleet. a me, to with decrease, to came $XX.X in year. spite $XX.X million just fewer net last average smaller a million, increase of Net year, compared last in to is of revenues, at costs strong the compared an our X voyage vessels financial Moving excuse

was to increase. $XX.X a income the Net million, quarter million last year, $X.X second compared for XXX%

X recorded $XX $XX.X the inception. months company profit a million is highest by for While net compared income its XX% the million, increase last the since to period, which year, was

were share $XX for that pointing our it million and in Also, the worth of In the company per of facilities Earnings the October, by time. over million also X share of making $XX repurchase back period, months a The million spending months short a in shares outstanding shares, $XXX just that in paying has and $X.XX. have May, million during million repurchased out total. over so program still authorized XX% in X.X substantial down increase $XX debt halved that X began a strong far buying maintaining we liquidity. period we over

new us we Let to update, fleet number employment a as fully of of quite time, on this announced contrast to move Slide In previous owned call, X the period our November. charters. for

inquiries with months, vessels commitments X- last rates We to in to the charters. advantage charters longer-than-usual took couple climbing for as we saw been from interest X-year fixed cover of charters During increased the of number and of a their duration. have

contracted As days year a have increased significantly we our XX%. result, for to next

fixed which reported Only quarter. $XXX all what million, one we up more in also previous the in of operate X periods currently than have December. market, for double already to up secure the to spot our vessels of XXXX, for contracted revenues We managed to

in the the have previous in the year. none of Size drydocks, the Lastly, we of for of and the left completed larger Handy drydock terms of remainder X quarters, vessels

X For for scheduled LPG vessels, are there drydock. small next year,

of an the X drydock the should update for spot I take own which X, like first Slide venture, X trading January completed of the ventures small drydock joint to provide place of of in vessels, comprising vessels. LPG are would vessels our in Shuriken X In joint now The and In Two on we market. next their year this quarter X year. Gas X. the in quarter X remaining

carriers. second The of X medium-sized comprises currently venture joint gas

Eco the of Here, the a as period took distributed was and you X charter the immediately medium-sized quarter, proceeds was current the loading deployed Sorcerer, is venture Houston. newbuilding, vessel the may sold in were carrier, vessel delivery in recall, joint X first gas quarter, to In the the and currently on and partners.

Eco the charter's the whilst and remaining profitable debt as levels, X in X option, vessel, to more extend very time a As purchase the charter the discussed, or for previously profitable sale mortgage-free, option its is Ethereal, is vessel all on repaid June. with was the at year year

of long the of our distance. as our a the fleet, of terms X, of is Northwest gas trade This Europe, in -- XX currently Slide mid-November. particularly majority graph joint The local fleet and regional including In of vessels, and November snapshot our in mainly the positioning presented the company distribution of in in geography the vessels focuses than venture trade fleet, rather Mediterranean. on

Middle continue become has better the in to Africa. on trading in area premium gap order in recently. and larger and rates trading X Suez a rates in this U.S. enjoy and X smaller although East to focused the Caribbean have the vessels Far of East as to vessels We are the the command the this vessels, of X West freight over Suez

these transatlantic Texas across in Europe fleet larger vessels all And loaded while for financial our main but perform one performance. unload is I cargo the in call now Africa. to fleet our vessels Konstantinos our the Atlantic this will distribution, focused an local have of year, and on more over and Sistovaris turn example, voyages, as the in

good for I discuss the will everyone. Michael, third financial you, and XXXX. Thank of morning our quarter to performance

income same of against XXXX. for the we X, us the see third months XXXX, X where and statement Let period turn the quarter Slide of to

though $XX.X quarter the calendar Net an XX%, for the rate came and were for of reduced days X% $XX.X after quarter by million had for months, revenues in year. expenses X last for months million, X increase and voyage the fewer the compared XX% X we Even to vessels. and at

more Total fewer flat the vessels the months. for flat $XX.X revenues and had for generated expenses million our revenues and down million were expenses. comparatively. XX% So X voyage reduced were Operating at $XX.X quarter,

of As first cost previously down this we the fleet year. particularly did during quarter, in normalization the line inflationary that are had reduction. third quarter pressures stated, coming and a the overruns, we expenses with see of In face

significantly, to $X.X of the result being million, quarter reduction and respectively, $XX.X months. costs the fleet depreciation note X as also reduced and a million We for

noncash gain the vessels, quarter, the delivered X July During sale of recognized also the third in that on a $X.X of were company million.

the by a the As million XX% year last compared and months. for operations X for increased result, million to to income $XX.X quarter quadrupled to from $XX.X

Interest interest significant months the debt and finance even costs costs order aggressive than period over result and have period, though were result in quarterly XX% significantly repayments, company periods. more the XX% reduced X the of tripled control rates in and over is This to engaged savings. the the will those by during

our equity in this increase For in and Those $XX mainly the sale JV ventures, sales and X a the which X $XX.X -- first period, there. million joint profits circa also from to attributed quarter. considerable was there joint vessel came structures the income of months income profits our in in in million at venture the the is investment was our of the

the a Profits were $XX.X compared -- of with all highest of far for above, the quarter $XX.X result for period, last months $X.X And increase. the this the a million a X year, quarter last million, of to for million third of companies XX% compared these the same XXXX year, ever increase. As year we to has of income ended XXX% so net seen. $XX million

Moving our at balance in the on next Slide X. sheet

beginning liquidity, and will sale debt position. restricted of at the were last further as September million, improve under delivery debt-free, from end of the so investments to end are it $XX.X deliveries to and reduced mainly the million at Our the the due cash repayments. million, $XX vessels Vessels with including $XX.X year, XX, short-term of X next held liquidity for These quarter, in vessels on process of all of refers agreement our the to sell year. was

not of unchanged invest remain due was October, million while construction. these A vessels. $XXX.X needed the $XX.X sale $XXX advanced be payments Vessels decreased money the book investments $XX.X the the the in in to million, our vessels. to medium of relate our vessel was value mostly on of we to in of for will which on did million value made The net delivery vessels carrier and amount added equity outlay million, covering vessels, X JVs Advances from the circa under Xth JV. more gas similar of

the to side. on significantly debt particularly all reduced company liabilities Moving liability the has outstanding component. and The

the have since $XXX So million, total been liabilities from to $XXX.X beginning million. of by down million, the reduced $XXX.X year

of by $XX $XXX solid shareholders' increased As million. million a the has result reported, being results to equity

the outstanding million debt low debt continues of Concluding profile. XX, X-month repayments, briefly very maintain and halved our $XXX.X $XXX will a more at as a its period, Over financial to commentary million, with with we company debt have a look Slide X, down has of leverage. the than September over to

can low, the payment the in all The mitigate repaid. has refinancing XX X.X%, rises. with time. very an risk its that During out debt on About the X become the of debt current have remaining you hedged million the manageable, average is quarter, years' balloon as picture. rate was more on interest the remaining vessels balloon in And as company The mortgage-free. XX of XX% much rate swaps, the is third right-hand at $XX overall, effect first of is see of the payments fleet, interest

of is While move, -- to debt expect still of the continue, reduction the first XXXX. the is of for and in it delivery financing newbuilding there quarter a the vessels we X strategic

for the up company these of outlook. course, hand discuss and finance vessels, customary has signed over I to you agreement For company $XX subject, facility delivery lender Harry closings. to will who market this, of a our to the to will in million now Vafias, provide with CEO, proceeds the

brief XX, a LPG on market. Slide insight the on Moving

is million have first record concerned. as estimated exporter first year. with LPG So global exporting supply far XX very far, continued by this increases With largest months exports of X the amounts in U.S., to year-on-year world's as the X been X.X%. of to risen of LPG the XX% tons The have year positive, export months the

actual In continue order to future Energy U.S. exported continue [ like ] capacity in invest to projects. slick, that Transfer on record expansion

countries Eastern cuts related production other of Middle out Arabia production hand, and OPEC have to the the to up led gap. by oil ramped while the fill Middle try On East, coming volumes Saudi reduced the other

As continue in far as lower anemic plants have in general. operate imports, we to margins from Europe, that at petrochemical demand

winter, million terms Although like particularly to compared period. when increases, to of household XX% tons China, regional an India, trade. in the demand places And imports Import of been tons increased by X.X October, have supportive been from in X-month growth this average have rose year. imports has where in onset X.X million where of the

China's first to all a X seems resilient be growth the months problem in far economy, this of even healthy X.X% year. so and despite the registered

been on X year to its as increasing all Hence, but is the August, hit a over have to New wants control continuously projects has the rates year, and investments on stream less come back China Utilization pushed capacity. Chinese XX% plants to for has this high fallen profitable. a as while production major these for continue million not picture macro PDH have of in have planned PDH And demand. margins become have made points production. increased alone. capacity plants since been next come tons increasing propylene stream,

other development drought. Panama obviously in canal is the due delays the latest to The

has alternative Handy affects mile The VLGCs vessels have first all the increased as primarily to the also rapidly, rising impact trickle-down some routes availability, ton demand. well. that their it have leading Size tie leading increased way to are rates but where is the and vessel a delays shippers these seen effect This to use rates up but

be The costs seen, on persists longer-term could effects rising remain have an to if this demand. as impact issue

On with market. market, key XX, the charter our for present time some shipping our in Slide of fundamentals rates commencing we

summer like listed overall year-over-year a Sizes in rates meter as XX%, increases see see to there. to the in quarter, flat continue significant there to and the larger We Compared sizes, rates up particularly less in cubic months. remained basis, is the X,XXX the activity previous Handy

market the spot more of of for Suez, to are time LPG quiet see spot if vessels. poor. are Suez, time and Asian are charter further. a activity West likely improve was QX being stable by number at decide market strength remain On we rates idle the trade There the and market But of of time was soft the renewal for coming East vessels, the has, small experienced freight of moving Significant the will charter up of were upwards. starting time through levels and levels QX. writing, most several or part

the From we as a busier seen QX, winter a start in slightly and for period. activity are spot the have of West more expectations

was TC have for X,XXX side, the rates period vessel, smaller the QX rates to through increase. the cubic a much very things remains the were gap continued picked is larger and vessels there as to quiet tight The on TC and a meter the but in where There On not up is the West, supply-demand balance as relatively have expected. exception gap.

MGC On was Size and market spot the dull un-eventful. the Handy rather and the vessels,

On time The though the side coupled and rates to the steady. QX experienced are period X reasonably Panama for wrapping months strong. the have of show on market, spillover and MGCs an are the X the the spot period expected and start expectations side, but boost and the little at Spot QX, relatively through canal for first reasonably quarter, currently from strong strength historically drought we of year activity the upward expectations struggled of even owners' of through given a boom the were has kept since the with a effects but MGC the trajectory. QX rates rates

significant of significant tight for The VLGC effect already of a will some time, smaller and and a tightening cause have the on also market Panama canal effect is to continue has expected to this an spillover ships. quite

front third list quarter and more to reduced start importantly, fairly we the saw half for time rating period activity, only newbuilding at charter time has a of 'XX, of MGC, the On the at the X existing lot which second 'XX, half first were extended vessels of was the vessel. for --

limited, we continue of firm And only supply-demand I'd ordered, a feet with fleet to to small the fundamentals reiterate aging although the scrapping of not like promising, for ships is X/X handful of balance. that an growth to being as of the keep fleet over pressurized look almost a age. to years see activities due vessels enough XX markets, to the

where far rates over years. Similar for order delivered but are high levels. picture indeed are in X there these be so vessels and the a only to freight Handy X book, proved next has Only Size MGC is the the near fleet, in there demand record vessels market, resilient

cubic this up so excluded fleet and the vessels including mostly sold vessels. capacity, sales In evolution rising In around the have comparison expected delivered years LPG year, fleet. we showing is modest a years, of and to XX of maintained that we're of and XX, more Slide vessels, for to of such we JV fleet X January. delivered terms X On pure our average held we be this which Through, vessels, purposes, have standards. older our industry far for quite have we slide LPG the market, in to tanker the focused XXXX our

much our highs, hot with investing in expanding significantly rate fleet. now been MGC all-time those have more that volatile. cautiously albeit we building a Concurrently, larger core freight close modern vessels than segment right in new to in We're is

more, in vessels these fixed X in January. have we October of delivery were delivered One and

a diversified keep to fleet. is intention Our

East. variables, reasons the Slide factors, ahead. optimistic affect a tensions in analyzed the influences fast-changing while that uncertainties, performance Please may where Middle the to This some of many remain relating the related others environment XX, or with China's We in are to for canal mostly macroeconomic outlining the unseen geopolitical quarters in economy our is the and longer-term the look some key Panama like to we delays at earlier. we

hemisphere in the and seeing the sum year for other tremendous period XXXX StealthGas. turned market. To nobody that the are we a the is On out shipping to be strengthens and overall the far, especially when has this for northern what hand, entering up, certainly in gas we and winter are is so for short-term demand

for first far, with our X the record have basic on So XXXX, reported EPS months of of we strongest performance a $X.XX.

best reported quarter, net income quarter second For normally of the third We million, $XX.X first record, year. quarter. surpassed on seasonably only by the a quarter this be the weak of would

long durations entered we a thus our is firming, advantage years, of future period as securing and of into the with X long took of charters, As the number market some part as momentum revenues.

our is extended coverage duration the our to part XXXX. thus have We strategy over for of Also deleveraging. contract of XX%

year, And repaying and half greatly the in so debt, than have far process. reducing this more rate we during the outstanding our $XXX expenses interest million

the at vessels time, debt-free. same of XX keeping the out XX While

repurchase we At to expand making time. are the sought And generate We our to to an even still of shares we with continue million our value. X to the believe anyone we believe time, invest well from be it we total. climbed benefit wishing months, very price for the $XX same undervalued has to million, significantly to continue additional in company sound, investment markets over strong positioned though $XX at shareholder this share in past and

call results call company. your you February. presentation, trust to our for would forward for now thank having with of quarter our have our and We like joining conference we at you in our us conference in look for today our and We interest reached the to end next fourth again and

Thank this and you for concludes today's participating. ladies gentlemen, conference call. you, Thank

your You may disconnect lines. Thank now you.