StealthGas (GASS) 25 Nov 242024 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the StealthGas Third Quarter 2024 Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Michael Jolliffe. Please go ahead.

Good morning, everyone, and welcome to our third quarter 2024 earnings conference call and webcast. the Chairman our Board is to call Harry to Jolliffe, joining Directors, our discuss Michael company Vafias, on the me today, discuss the am financial of Konstantinos of the and CEO, outlook aspects. I and and Sistovaris market as usual,

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

read disclosed our all this the could take StealthGas's to Commission. X be a you filing Exchange on if of disclaimer moment presentation, grateful. So Slide Risks in with should I and are Securities further the

proceed but and successful a previous months We of third year the for not basis X was quarters considerably quarter, our at company's for came $XX for manage third Slide net reported let's by million the reached million X XX% you to to solid first an X discuss summer most a the $XX the last results quarter earlier. income this million year, million. higher X year update despite highlights. record, compared starting quarter have was $XX.X for The and on previous XX% the profit but X% by It on strategy we higher. months the Today, record months. quarter for ever. Revenues seasonally slightly down $XX.X adjusted in from with weaker Adjusted So some profitable the the released did we these market admittedly to break results and reported in the general, XXXX. the quarter's a

period. higher fees there is of period, was adjusted also X-month by share, the on over reduced quarter, for buy In about repurchases. not share last so over XX% assisted authorized left the X-month shares third back year. marking terms during of for any a $X.XX the million an count the as were the repurchases for increase basis, This and $X.XX a the We quarter, per share share earnings result X did $X.X XX%

the for generation. optimizing strategy focus deleveraging and Our on being cash time remains

we facility the of the debt of in beginning year. a did While $XX enter new million

in reducing to have million to also repayments the the up debt million first below for today, $XXX made $XXX We time.

of terms and to strategy our fleet, In is renew. conservatively diversify

the delivery have We medium our the gas sale medium by the of smaller in subsequent X of in carrier year and of the the carriers previously quarter. X as well LPGs gas discussed second of the as beginning sale venture joint X

for the in early smaller a one over and in looking are sell that third into market. And XXXX. same an owned. entered take to we the of At sale agreed still the purchase the to agreement time, towards vessels level was with quarter, the opportunities joint We jointly end second our of venture delivery

previous We in when only years. and so profitable, company's in long-term possible period fix did X.X being not were one move chartering concluded we of details Since owned our on us X active to fleet X the to September, reasonably employment as any vessels did charges we spot November. duration, period. were on longer the in the fully Let on conclude on short- of last call front. X Slide for there our strategies charters some operating market. medium-term to new charters chartering The We as more the

million. for our to $XXX XXXX Including about already latest at secured $XXX are after charters, securing Total in revenues. we contracted have XXXX standing days XX%, the increased million revenue

achieved usually Europe, a in could at docking fourth vessels a rather we eastern had quarter, dry than are drydocking vessels dry-docks forced have most quarter, more while Since heavy X to be were schedule. third higher X shipyards. cost entered been the and a dry-dock. dry-dock, to vessels the the vessel we just potentially During has scheduled are in cheaper perform far X

regional and of geography, on our mainly company terms focuses X, fleet presented distribution In Slide gas. local in our trade of

do So may larger that vessels while as States port joint including our of Coast long This most often couple of example, Gulf of last is days to intercontinental fewer mid-November. as short the of engage vessels vessels in a low of for are continent. often the distances, the to from travel likely voyages voyages, as fleet, graph positioning snapshot a the to not United with destination, the venture and

continue East. in trading our XX%, We Far in in is the Caribbean, Eastern seas. It and Mediterranean. in specialized currently XX and have premium East used in trading trade some to the the majority Northwest as and currently quarters the the rate the past, to X Far Europe Middle split fleet we freight [indiscernible] U.S. vessels X case some last trades not evenly over of be fleet, in the a area in as in and but have always strategically the only this or Europe, The our X several command the the Africa between vessels and the focused on vessels particularly East

is that move the short of Red that attacks, vessels Hope there Suez Europe. to higher Cape suitably will to the as due of in vessels around unsafe mean we [indiscernible] Good east it west. the West the have would continues believe long in travel distance term, most be navigating Sea a well-maintained rates. from to of to to We would enjoy the to continue Since shortage to it

such in also Red to East fade in Meanwhile, [indiscernible] Sea of profitable. for these vessels the quickly to by due less between This likely have is routes and East therefore a And that long-distance small Middle distance these are is it an trade that the arbitrages LPG larger and the U.S. by carriers, will rare West [indiscernible] cargoes Europe. to on our It escalated. exports attack for less routes for found the voyage replaced of short make area. Europe exports vessels influx types means

and increased United Our between particularly Europe. Handy to Size vessels, transatlantic States the trades

note ammonia also increasingly gas engaging we carry. that medium been have to that Finally, I like handys our trades and carriers can would

That venture the had in you investments. In of I our on we XX is Slide X, vessels. X September will interest joint update as

And to $XX.X terms charters these September stood million in expiry the are pressurized our was which joint separately of but gas our these of There These as carriers have carrier consolidate in of medium have not venture will not are most For these structures. through vessels book activity that close at we of renew. chartering XX previous quarter. presented the equity [indiscernible] of as are value vessels. LPG use on then of results to much The X do we accounting. method investments

very end partners, to next the on agreed That quarter, a our with the to of schedule. to the together expected party. trading At its sell depending be delivered third we is year Gas early vessel Shuriken

Next, chartered we vessels to back of out vessel this, to that venture added fleet. we agreed was a fully so both buy owned debt-free then X-year Prior charter. the Gas Defiance repaid, from in joint our for that for debt a we

to debt the smaller financed are For joint as to venture the ones second venture with X enters year, maturing just last the smaller as while the medium you recall, vessels sell X opportunities are acquired remaining remaining its joint X and vessels, may belongs we our The on financed year. sixth looking these. carrier the all that next gas year, at was

XXXX brought dry pressurized one and is vessel as that dock vessel originally was was for dry the scheduled on forward Lastly, we the dock the speak. early undergoing

I Sistovaris, you. Thank turn call Konstantinos details now give the to our will over of will who financial performance.

today. financial We'll discuss that the you, released results Thank were Michael.

million fleet X-month $XX.X Slide X, expenses to the a sales throughout that in where reduction quarter restructuring addition the rates in at earnings Net XX% after also, and Let's days turn a a X% same came increase for past the similar we and statement of of against there higher million snapshot corresponding fleet the XX%, of of quarter, placed of year, result of And an X of XXXX. period to the revenues at of mainly period period. months income XXXX $XXX.X the and [indiscernible] the the XX% the last the months, X vessels with vessels Due larger for the for for higher quarter in third [indiscernible]. year. X have was vessel for increase at

XX%. have the a fifth quarter at as of Net reduction of dry during statutory That level the the the this Operating quarter. was were and lower as despite drag dry XXXX the result about had docking so undergo $XX.X X-year dock. good X quarter operational for to same X quarter to containing main it higher would $X.X a months, utilization for pressures economy. if expenses special a for million expense and last as vessels corresponds million the fleet. revenues $XX.X the the down for been the dock this having far expenses for the performance year, partially at The inflationary and in vessels million throughout were in their results one Overall, survey dry

for cost lost amortized. that and expensed also these docks The in revenues not time involve dry as incurred are

in a there be no when the last especially quarter, vessels docked third hedge were So to there time. at when dry was compared to year the

for million result third sale costs or vessels also as earning the no the year, result In $X.X There of while expenses. quarter third was from the interest compared last of increase of there $X G&A year, $XX.X gains an $XX.X of third stock-based of income during a decrease. the million increase debt to in were compensation this or a quarter XX% the million by quarter, Net losses quarter same an was impairments in costs for million reduction. as decreased the

net noncash when to this $XX profitability year vessel which more adjusted last reversed is is compensation income gain an million of was improving and sales this the particular, looking However, of company. from the and reflective that in million nonrecurring the $XX.X at year, the compared excludes increase, stock XX% the

a improvement a year. income was XX% [indiscernible], for a Likewise, million, net quarter third compared XX% share the compared $XX.X last For per for to the year's. $X.XX, months, adjusted and $X.XX X-month last adjusted the were earnings XX% to X improvement increase

did surpass marked its on record. and best has profit ever is While X expected third quarter company year. as for second quarter's not a track the now months record The

do any including Looking was company sizable not to compared the the strong there just at liquidity. this not end and the sheet the credit $XX.X despite repayments. slide, on We use by million, X% lines the next revolving have at at balance need the is no restricted XX, as debt do moment. Slide to continues December Cash, cash X, quarter, reduced of maintain

Vessels And quarters there quarter. the of coming the to gas to million expect were as of nil Vessels of September as bought. due that book [indiscernible] mentioned. during was December second of carriers September the there book for of million were of increased in we and vessels that the as X vessels it subsequent medium deposits of result be XX, as The $X.X were capital smaller XX% held happened medium as and million were an as gas nil significant investments exit following compared for value XX. contracted X.X% of from in company Also, $XX.X increased reduction our X in medium no September further XX no return sold. carriers $XXX.X were XX $XX.X value the to were that carrier a million, [indiscernible] be million, $XX.X the we to XX, one sale be vessels $XXX.X joint increase previously were addition X the to contracted as ventures million of million vessels sale December the our to $XXX January. reduced of the gas delivered to December XX a of to

debt to as to December then was the the while long-term million, $XXX.X $X.X of as of as $XX.X liability March million September of current stood was portion and of half The side. XX, the Moving $XXX.X of million debt reduced long-term XX on portion million XX. at to the

$XX.X hand debt probably result, cash with $XX.X a of following or in we X Shareholders' over a the is net free, [indiscernible] XX% close million, equity versus being As debt increased of company months. the $XX.X million million just and total to in quarter. the

the interest you million. Moving time, has, managed levels X the the over on to cost noting is reduce the its structure. debt in quarter, savings debt for that to game to $XXX It has on past update the worth third significant first name couple period. to the leverage been allowing for below the total this of Slide of company The years,

place, During $XX XXXX, million quarter. facility million to and repayments. debt took of $XX halved debt the over company the the first in very $XXX.X repayment million outstanding during XXXX, debt In $XXX aggressively was of added third X in of million January with months, X-year which

that annum mortgage the X cash forward. breakeven making cash to competitive. $X.X will only in compared years per XX out flow There As to a million allow vessels result, the more believe reduced are ago, means now flow going cash that significantly and for million $XX them faster is debt, fleet, amortization much and accumulation flow of vessels we lower our X

have our we of outlook. end There risk. and CEO, XXXX million I the refinancing just alone which discuss $XX facility [indiscernible] $XXX of is will Finally, eliminated will at next only Vafias, who you hand the the Harry is you, from matures in company XXXX. Thank million over to and and recently concluded, the market

Moving on XX. Slide

the on insight brief Our LPG market.

of months latest continued X for data summer a of after exports X quarter. the steady world's have path an of that last increase. XX% first upward grow, year, the That exports a path marking [indiscernible] their result coming this There as Hurricane dip increase increase the The at in #X U.S. higher X.X% months year-on-year of resumed slight 'XX, over impressive The U.S. are X the the that. after out from exports propane the over LPG upward first was the [indiscernible] [indiscernible]. the showed X.X%. making Over but years, to a on export global

in market, is East, going and the achieve market second slow rates [indiscernible]. expect to moderated exporting normal, self-reported waiting years we [indiscernible] over in have completed cuts quarters increase by projects implemented have are to the the production the couple coming last to production the to share, In allow downward We [indiscernible] back be another are area XX%. The since rate 'XX leading of has the volumes the Middle largest of affecting cuts. losing in OPEC by [indiscernible] the VLGC growth will forthcoming adjustment also to volumes U.S. to administration [indiscernible]

are Europe, flat. Although the demand U.S. from sent increasing in Europe to volumes remain to LPG continues

the been important [indiscernible] temperatures that volume see consumption. some help average to trade, intra-regional far We're the to the heating has has relatively as of been more [indiscernible] there the [indiscernible] demand On localized below [indiscernible] with in not waiting starting for Although does domestic activity December. advent level, mild a of late. and so with we

Poland As [indiscernible] they had on effect, port reducing does of we're destined LPG a [indiscernible] doing yet the increasing possess adequate more [indiscernible] seeing [indiscernible] not for replacing [indiscernible] facilities available the some rely immediate smaller railroad voyages larger number vessels, outbound since more to ships.

importers [indiscernible] side The import [indiscernible] [indiscernible] expect other 'XX. of in the in Asia, where located, growth major of the to we

[indiscernible]. of summer, the at used China, of led For In [indiscernible] Japan import India, to In to economy has the period. continues regardless be X-month year, in for the coming for rate growth. government to the market plastics at year-on-year of the second expansion measures months following to almost take the continues [indiscernible] weakening the [indiscernible] LPG XX% production for PPA X% year-on-year a Brazilian the capacity X and the in elections growth marked [indiscernible] this have

X $X.X of on came adding million [indiscernible] new 'XX, stream capacity. During

years X come. far construction The and for year, tons adding this X over over all million are plants production levels. the demand the [indiscernible] total addition these [indiscernible] new underpin to more so million from for bring far started have So parts at expected will and XX other tons, rise of XXXX plants

Overall, XX, Slide when LPG [indiscernible] is of pullback we state year there its discuss in shipping the and the fundamentals. market the demand. a the

the [indiscernible] comprised East West majority vessels weaker LPG been while to during spot [indiscernible] fleet, pressure are market active there vessels season, continues QX [indiscernible] relatively market [indiscernible] positions larger of a small the a So of levels looking especially at have firm tied considering the [indiscernible] and market [indiscernible] between the the in be our been have western and of both was keeping market active. pressure

and side, and to spot On [indiscernible] have have lower positions cubic Suez strong continued was and in especially would, the [indiscernible] most East in upwards at we factor would the as some firm high will continued that The consequence. suffering a in in time [indiscernible] be next charters, time. market [indiscernible] to X,XXX in historically [indiscernible] with order meters. rapidly rather years aging a seem are market West the [indiscernible] interest is [indiscernible] cases, definitely X, the fleet light [indiscernible] owners good reasonably still X book levels. of the enjoying X,XXX cubic than for have meters are [indiscernible]

for The [indiscernible]. spot market

while market pretty year. quarter. the normally and On line [indiscernible] which was the [indiscernible] market, into LPG remained peer the although the this largely relatively through side, will next stable, support [indiscernible] [indiscernible] inactive

than trade spot MGC with the [indiscernible] competing soft for [indiscernible] often more market themselves not. On remains

time having which not resulted year. [indiscernible] has order in Our gaps charter 'XX, to renewed for handful deliveries again for This provides rate of book only investments in The the due [indiscernible] this being [indiscernible]. support tonnage owners a side [indiscernible]. between

However, more call, deliveries players driving to admittedly, betting at existing the from with XX% [indiscernible] book ammonia last our and record new existing fleet. longer of X term, orders ordering high the next be with years able [indiscernible] hoping entrants We're We, the order book to seeing a is will course, this that ratio now, believe said, X order that generation carry [indiscernible] since vessels risk ordering and we having proposition. quite the record demand. rises already volume fuel ammonia. of surge of choice at are being vessel that in But now such development, larger for a these prices

there and over the remains Handy no in the order that. quite year hand, book being the where Size beyond [indiscernible] the fleet, are different order On other vessels situation is next

quarter being a last [indiscernible]. more orders our since few Although were

our much. far situation [indiscernible], fleet as the core changed As hasn't

meaning Chinese for is repeat being at we our next years in remain difficult the trades over market. the graph. But vessels even not in book that safety the subdued like of scrapping would some ordered last the in without in XX with what are ahead. key it's in enough, and ratio to shown the existing fast order renewed to regulations. On low destined [indiscernible] of see slide, X% the age the We fleet only these to given continues handful the years strong given most in and of our Chinese performance pressure fleet, are the [indiscernible] chart and profile [indiscernible] for the old, being continue for Europe, more to markets, of [indiscernible] scrapping, a quarters the environmental vessels the According is the getting outlining over we international trade especially our to XX% X of

Our company the had XX% weaker we third quarter our even during months, heavy managed utilization. compared though our schedule revenues another quarter reduced seasonally during year, [indiscernible] to of by last a to has there was summer fleet the drydock increase

covered year, continuing far profits. contract a now during XXXX, revenue approximately the highest. another in [indiscernible] our market the for XX% for have this of Currently, the fleet majority And track [indiscernible] announced is So where interest year. in we record securing have vessels our are we coverage, in located, we Europe, next and fleet XX for year, period record with at are There [indiscernible] from just $XXX on is strengthening particularly million are unencumbered. winter,

quarter, million to and the the to cash our as on financial position. strategic loans end and $XX focused have [indiscernible] third the We of million deleverage goal $XX we strong company's had of

anyone time higher revenues [indiscernible]. our we to continue every undervalued investment bar we sound sharing continue profitability, improve be and setting we our for improve and to believe As

have far at trade strong produced so results, to price of discount terms but [indiscernible]. in continue been We to a

for in the in today to for trust to our reached I'd end us next forward on company. very your Thank We our much. call us and look our for the We you results our conference of have call like you QX joining February. and having conference now with again thank on presentation. interest

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

now disconnect. may You