StealthGas (GASS) 22 May 242024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the StealthGas Q1 2024 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 Chairman of the Board, Mr. Michael Jolliffe. ahead. go Please

morning, XXXX Good Michael welcome our to Chairman Thank Conference everyone, Call Quarter Directors. of Earnings the is and First of you. Board and Webcast. Jolliffe, This

discuss as on me Harry CEO, company discuss Sistovaris, our and today, the the Joining usual, financial and market aspects. call Vafias, is our Konstantinos to outlook; to

respect and statements, to we will that performance. we our which current Before reflect you commence events presentation, remind I to views with discussing financial would forward-looking future like be

So presentation, a disclaimer if moment to on Slide could all you take great. read X that'd our of this be

We released the our with will Security we the of Commission. first quarter. Today, StealthGas further results disclose and filing Exchange

ago, I here months you was profits. our to X year announcing record full

we that have great delight great managed with follow on record with is to it start quarterly up a by that XXXX announcing profits. to So

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

starting where Please fleet turn X, update. Slide and to some we with operations our highlights summarize

During delivery of the medium vessels and brand-new sold got we gas carriers. first X smaller X quarter,

will as vessels announced bought have owned any the venture current a the We discuss further was the sold exception in call. of joint that or with quarter we X not that on vessel through in previously

fleet securing With contract with coverage our continued market for and the remaining in fully joint firm, XX% our venture vessels for our more both for of charters period days we owned fully of the owned fleet. fleet XXXX

our $XXX continue exposure. be excluding joint and our of spot have to We periods thus maintaining on venture revenues million for subsequent over all contracted focused vessels minimal

the a ever by voyage the reduction to increase, to to average quarterly increased the is on income year, profit of revenues in quarter $XX.X $XX.X first voyage XX% last was with million compared for fleet highlights year fewer X financial year-over-year XX% net or recorded our vessels $XX.X million highest X% which million Net previous is to to compared quarter. net costs, the by last increased that days, and compared XX% a company. and Moving

Even better, year. decreased year-on-year, the earnings on $X.XX X.X an last shares that at count share and having per where adjusted bought million we given basis back have share $X.XX

have repurchases back So million quarter the so year, repurchases. and during back is million for scaled bought the share worth about left share we far there $X.X about $X.X this authorized first

currently us may company reiterate our those of XX an with since the of reduction beginning and the continue We XX not LPG that $XX reduced invested on new we today, vessels, down as shipping familiar prepaid And In medium have loan in since delivery level X, for Slide facilities carriers. finance million those, with XXXX, our $XX strategy up we that fully in we be together next interest joint structures. debt regular the And gas with venture year. those, drew of of investors the fee X we been to amortization and in debt have until under let that a own million. our by the have

on meter focused the small been gas have in to X,XXX cubic we Traditionally, range. carriers X,XXX

years, few carriers last company, and strategic complementing our in a the since becoming in larger-sized has small there However, a been pure with LPG shift vessels. especially LPG

our fleet a industrial secondly, in XX and old about for sellers with been vessels have service we to to the larger such, effort and profile older provide that a an young As of more currently age customers. is them replacing keep smaller, newer holistic vessels, to firstly years

the XX,XXX more for potential downside, volatile gas as vessels XX,XXX capacity. LPG the if fleet, earnings of the in Handy vessels are with carriers more larger a with for medium upside cubic and also the semi-ref falter. of market to XX small Size A were the company fleet gas a provides pressurized are in course, larger currently diversified rates Out to carriers XX and vessels the for vessels full-ref meter

us May been on vessels focus coverage Let Slide to move fleet this depend owned of and swap and as to period always our on has that to stress provide X fully of market. the employment update for our less our

new a and February's were relatively and with X like remaining we were charters. months, in for X Just the a charters, X for of call, to announce number these extensions long period years, more Out and of current X-year once a pleased duration, X new for X X respectively. X X charters,

to million in XXXX XXXX the in a As only to revenues for previous XX%, spot vessels $XXX result, the to contracted days and over our operate up call, Like our market. X XX% in we for currently securing of increased have XXXX.

of Lastly, vessels in XXXX, first we LPG during none in have still X dry-docks dry-dock for as was terms quarter. scheduled small the dry-docked

not method through do gas of to X these that In that year. X on structures in accounting. million. joint our an venture interest XX of medium gas a delivered is now That in X carriers at of that of Slide and X, we the equity provide as $XX.X update stood X was investments like vessels, I hold we carrier March value book would The last Out our are consolidate results, small use our the is vessels X investments.

period another its months, vessel and terms chartering, new into time vessel extended of X-month charter a had for charter. In XX entered X

the completed dry-docked For we're quarter. vessel X year, first in scheduled the in it's the was that dry-dock be current to

this the another our during vessel in sold April As we in was medium interest bought carrier, call, held gas of delivered XXXX that sixth a an year. previous announced and during

happy are in are $XX of StealthGas a rise From during prices. investments the Eco [indiscernible], crystallize distribution rapid interim April. proceeds the more received asset the nature, of from the we the in profits sale these million cash to short As term

to to in the that $X.X bottom quarter would sale reflected during $X.XX from from income that at The profit company's over second will the sale of investments that from was the line share be estimated and alone. million, the translate

mainly is a in company snapshot trade local including our presented intercontinental regional larger as of positioning joint and our graph This vessels In in focuses fleet, X, engage while venture Slide of distribution gas, the the often wages. of mid-May. fleet the of vessels the on terms of geography,

of vessels the The XX Northwest and trade in or Mediterranean. the Europe, our currently in XX% fleet, in particularly majority

over focused several the adherence establish vessels players strategically the the higher as the this and East to have quarters mostly as command over demand is of premium well on of We to continue industrial terminals specific principles. to past West customers Suez area rates safety Suez strict and as a freight

being We X the Sea trading the vessels and redistribution X more X for not Far Red is vessels is middle and in the a in reported the major our cross do the expect safety situation fleet. East, Africa. trading Sea Houthis LPGs not anyway. The it fleet in trading of U.S. in in with Caribbean are common and to ongoing attacks Red

be destined more will to replaced likely U.S. exports Europe and East Middle by Europe. for to diverted exports Asia

Our of vessels the that Handy Size the the vessels, during crossing do Europe. between now year now across Panama particularly Panama vessels and more due have particularly The to that trades increased our U.S. and the beginning for abated. It's rarely in delays the VLGC our affected, have route. transatlantic U.S.-China

in finding there That number average Canal, is the no of a size, Houston reduced an slots. will said, balance. the smaller bookings we vessels new Panama being for in to through with that crossings market that larger currently its have MGC Although do go and due were loading vessel delays

vessels ammonia Finally, currently X can we've transporting and increasingly would our ] in carry been and are that I vessels [ our of note also engaged cargoes. trade Handys ammonia that MGC

so you I performance. will now turn Konstantinos Sistovaris, to over Thank much. our for financial

you, Michael, morning Thank everyone. to good released financial I were results will discuss and our that today.

costs vessels. the of XXXX. the against though XX%, same lower XXXX to $XX.X with we where #X, quarter an vessels period to Even a Let's at the increase of larger voyage for statement expenses reduced due due days conditions, first snapshot came fleet turn exposure. and million the reduce in we revenues Net and higher revenues fleet as addition Slide result of our of voyage X X a of in the XX% had after spot were for capacity the better by see earnings market higher of to fewer quarter, income

of down fleet, their million the $XX.X Operating that XX improved XX% the profitability. the expenses [ fleet. decrease mentioning worth out in XX%, ] a the due the vessels quarter, of to result expected, better the is It vessels for in were mostly number XX than in

decrease increase of in note We period vessels in stock-based dry-docking the G&A million in of a as costs $X.X also compensation increase result were the million as expense. of during $X.X dry-docked no an and the this costs

due joint being Interest drop. and first million the the this in first to first $X.X costs, from from X of the As last selling of $XX.X costs The million profits revenues took income earnings XXXX reduction in from whereas of The $X.X increased to last also debt from the year. year million swap because included decreases increased XX% in results in due million the and million from a profits in some $X.X were year-on-year the repayments. of increase quarter to of positions result profits quarter amounted vessel, year quarter $X.X some place for the by sale year, million were in last significant finance versus the last of venture that to a investments year. $X.X sales these booked the no is the in operations

of quarter to with a increase. of above, income year, the compared XXXX X% million a million of ended first last net the the $XX.X As of for $XX.X same quarter result we

was a record quarter. for million share While earnings Basic of on an profits adjusted basis, were $X.XX. net record increase. $XX.X first quarter XX% of and million last per earnings profits share, versus were last on the top $XX.X and diluted per These the year's $X.XX year, quarterly adjusted income

Looking at sheet the in balance next our slide.

for were medium nil million, million million December at of as repayments. restricted the XXst figures. delivered and nil with Also, as XX the January. March of that vessels And were to were of for including the vessels as were liquidity, gas X carriers in quarter, debt medium gas sold as December X $XX.X of the as that X March $XX.X the cash deposits the for Vessels the XXst, as XXst par were proceeds carriers delivery was XXst sale on of these of were used held end December the Our company. were $XX.X

increase X-month of million, $XXX.X as JVs assets the million, from the over increased previous $XXX.X book book investments period to company in $XX.X the result Total MGC quarter to X% vessels. to significant XX% addition by for the the Vessels value vessels. the a X increased our close value was million. of million The a of our $XXX.X of

down million result of a increased as million again $XX.X XXXX, Moving in liability compared to took more during million debt to December place. side. quarter total come but second the the this on January prepayments debt as the by The we XX expect $XX to to $XX.X financed

Shareholders' $XX.X Slide increased equity our the at period. or Concluding XX, commentary closer a we'll X.X% the have X-month where next our look million structure. briefly debt with financial over

During another halved $XX tenure XXXX, first with repayments. Part longer a quarter of XXXX, over in aggressively being of replaced the a second repaid to million debt And the the and XXXX, with prepayments the then fleet its was medium outstanding that joined relating followed with debt maturing gas million. the carriers in quarter million XXXX in in the X $XX facility January. cheaper with company of debt of very $XXX of

of only As X considering reducing debt further, commitments, still is were vessels CapEx currently, further no January. X now there the although are its financed financed, this company are which there

December XXXX. that $X will XX funds. to allow The there is The forward. and now facilities going have advantage, million debt is reduced other significantly need vessels accumulation a if in are raise tenures XXXX X faster amortization just per expiring unencumbered, with considerable a to that flow annum, cash January ever

interest XX% have the to is other currently. with the that On hand, debt reduced hedged prepayments swaps rate

will now will CEO, outlook. to Harry over you company Vafias, and our discuss hand who market the the I

the U.S. exports expected X% the for continue first XX. results of see [ growth. LPG the in of although first cold continued Moving X.X% its growth export year, in year, by the beginning slow increased snap quarter to increasing after exports showed we that unabated, and XXXX, ] at we year XX% on to a making the U.S. exports this the in Slide have a strong year-on-year

incremental continue expect of NGLs We the U.S. ship will current to the year. in amounts

exporters incremental there are these increasing discussed be to have that But to volumes solved Texas have LPG meet before, we planning to from logistical ahead the As already issues and volumes. are Canada. accommodate

is Middle to to on hope for Middle had run year fleet, particularly hard the from exports seemed although see to rise. to dark other seem over While would U.S. well. up global XX% as ramp exports, using be We accounts of And exports East come last that exports as the countries China their not rebounded. have fallen that and the destined Eastern to the by,

in heating demand year-over-year, X good been largest last the as intraregional situation that active. The the lackluster to the The and winter most usage, over reduced come countries, from as although importance LPG same year particularly well volumes is seem with China to flat were news the and due of populous trade Europe remain for India. X have mild petrochemical

from saw a with fantastic numbers quarter strong rising First a XX% China volumes import demand very year-on-year.

positive as for for in is decided household have fastest-growing force the LPG to increasing quoted extend propylene. from of the demand margins the rates course, future PDH economy to of months production LPG subdued subsidies In alternative growing for last March profit, China, XX% around X of This government-facing seems couple demand the Utilization prices elections well higher in in remained penetration as the plan demand. and soon billion-plus expansion further much and of reduction has XX% low is for is, for the of LPG an this of LPG economies. bodes India's to are recently LPG people for of of demand driving although first fuel. capacity X due quarter of where the the supportive use for as general

competitive this remained to LPG during a fuel naphta period.

too years, X.X adding from a on these of addition this million and set tons is million We capacity million X to in XXXX. X level. delays capacity. plants still tons the estimated to X year an X that's X PDH year, reported tons and next Even if added came stream, are that added last -- optimistic another new over on million X PDH During million be given plants tons usual today's XX% the X

some historically high our commencing overall we Rates present first On the charter of with in key fundamentals the at Slide during rates. flat XX, time albeit shipping markets remained levels. quarter,

exception slower of the With the size the drop. ships, slight larger

limited an of time the the west We small idle at market Looking QX trade and during show vessel on holding levels. owners. spot average up U.S., LPG availability was little

rates side, to activity firm. On keen the secure keeping QX to in good capacity with period we continue charters see tonnage and forward

quiet ships pressure we less Suez, relates highs. or at little par for QX This spot action, now of with year. market around of larger with on more all-time the are East saw a last

firm MGCs, beginning pulled For and the the where Handy Size MGC up bit vessels the following collapse pulled QX the quarter. the MGCs of for at a disappointment of the up Handys, owners, very QX, a VLGC the of and a the VLGCs became the

and dropped LPG remained petchem significantly quiet. trading trading

ordered, fundamentals not an handful the have over we controlled period and up we despite period almost continue fleet of the small long-term held a number market market old, a to strengthen a by XX scrapping a the pull and softening limited to pressurized of reduced ads being of to As the market, core owners a a enough see ships limited case the With inquiries. fleet to fleet the well charter and aging with although vessels continue steam for supply-demand more is to of tip markets, as lost on very firm also only continues look charters view, X/X back their export continue due of be to to of our balance. time It's, started promising number years however, interest. reasonably

years. to Size next Similar over ships fleet delivered X there be only Handy the picture where in the X

our grew 'XX in vessels years On a higher over fleet MGC XX%, the further in in other water our 'XX, years, supply to the book and join vessels now is the and since over earning ordered now order X next even until ago X then are especially that call will is indeed that's but in that last limited for money. the hand, the

a speak. are for the ammonia increase to short carriers On the performance for we summer weaker the trading as of ahead. Slide oil. well contender some XX, key gas months, entering replace the gas VLGCs as serious of our in generation quarters seasonally next as slow really is and would may friendly driving related variables environmentally to of that affect ordering the term, choice become will future The is outlining medium the power the and force the that we shift to seems to In that activity also fact in we're fuel we firm somewhat, although expect still market ammonia

a of XX%. analyzed the vessels results were on added expenses on driven the results. we far Today, MGC repaid of $XX an share our immediately remain optimistic inception. the longer are XX per to debt result producing announced The or million further debt-free company earnings XX record fleet for all-time by reduced have the buybacks, reasons its share count that term before. for and mainly line since In a profits a QX million the the current for These and so were breaking We the of X basis. revenues continue share years we to reduced below bottom and higher exceptional unencumbered over quarter, the high debt have $XX.X the enhance in quarter, ratio as and new vessels now started

results, but we we still to and optimistic last be to And has reached the We price today your been the our sound we're forward and and you having terms the not producing for conference even rewarding call August. we're presentation. for from We've backdrop, we and and NAV trust because quarters. also with year call over look for of significantly continue price We'd as end interest of a like our the more though again earnings. us you us result climbed just continue a company, to of our our shareholders at and share in to with to in market on profitability, quarter price the we results in look our benefit the now next undervalued to continue thank investment, taking the to joining record have forward second believe positive positive at our discount trust at because market

concludes you for all This participating. Thank call. conference

now may you. You your disconnect Thank lines.