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Company Profiles, HR, Person Profiles, Reports — By on May 26, 2015 at 11:01 PM

DSC00290ATHENS, GREECE, May 26, 2015.  STEALTHGAS INC. (NASDAQ: GASS), a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today its unaudited financial and operating results for the first quarter ended March 31, 2015.

First quarter 2015 Results:

  • § Revenues for the three months ended March 31, 2015 amounted to $35.7 million, an increase of $1.8 million, or 5.3%, compared to revenues of $33.9 million for the three months ended March 31, 2014, primarily due to the higher number of vessels in the 2015 period.
  • § Voyage expenses and vessels’ operating expenses for the three months ended March 31, 2015 were $4.3 million and $11.7 million, respectively, compared to $3.1 million and $10.7 million, respectively, for the three months ended March 31, 2014. The $1.2 million increase in voyage expenses was primarily due to the higher number of vessels under spot charters in the 2015 period. The $1.0 million increase in vessels’ operating expenses was primarily the result of the increase in the number of vessels operated under time charters in the 2015 period, including five vessels that were added to the fleet and one vessel that came off bareboat charter.
  • § Drydocking Costs for the three months ended March 31, 2015 were nil as no vessels were drydocked during the period, compared to one vessel that was drydocked during the same period of last year at a cost of $0.4 million. Overall, in 2015, the Company has scheduled for two vessels to be drydocked.
  • § Depreciation for the three months ended March 31, 2015, was $8.4 million, a $0.3 million increase from $8.1 million for the same period of last year. This increase was due to the additional depreciation for five vessels joining the fleet from the second quarter of 2014 until the first quarter of 2015 which was partly offset by the decrease in depreciation caused by our Company’s decision to sell and lease back in Q4 2014 two of our LPG vessels, the Gas Cathar and the Gas Premiership.
  • § It is noted that our Company’s decision to sell and lease back in Q4 2014 two of our LPG vessels, the Gas Cathar and the Gas Premiership, is also a factor that affected depreciation charges for Q1 2015.
  • § Included in the first quarter 2015 results are net losses from interest rate derivative instruments and foreign currency hedging arrangements of $0.06 million. Interest paid on interest rate swap arrangements amounted to $0.41 million, and net gains from change in fair value of the same interest rate derivative instruments and foreign currency hedging arrangements amounted to $0.35 million.
  • § As a result of the above, the Company had net income for the three months ended March 31, 2015 of $5.8 million, compared to net income of $7.6 million for the three months ended March 31, 2014. The weighted average number of shares for the three months ended March 31, 2015 increased to 42.0 million compared to 33.8 million for the same period of last year, due to the offerings of a total of 8.0 million shares in May and August of 2014 and the repurchase of 1.8 million shares. Earnings per share for the three months ended March 31, 2015 amounted to $0.14 compared to earnings per share of $0.23 for the same period of last year.
  • § Adjusted net income was $5.8 million or $0.14 per share for the three months ended March 31, 2015 compared to $7.2 million or $0.21 per share for the same period of last year.
  • § EBITDA for the three months ended March 31, 2015 amounted to $16.7 million. Reconciliations of Adjusted Net Income and EBITDA to Net Income and Adjusted EBITDA to Adjusted Net Income are set forth below.
  • § An average of 45.9 vessels were owned by the Company during the three months ended March 31, 2015, compared to 42.0 vessels for the same period of 2014.
  • § As of March 31, 2015, cash and cash equivalents amounted to $127.5 million and total debt amounted to $323.0 million. During the three months ended March 31, 2015 debt repayments amounted to $23.4 million.

Share Repurchase Program

Since November 2014 to date, the Company has repurchased a total of 1, 876, 536 shares at an average price of$ 6.2 per share for a total consideration of $ 11.7 million.

Fleet Update

The Company took a strategic decision to divest in April 2015, two of its oldest vessels, 4, 109 cbm, built 1991, LPG carrier, Gas Kaizen, and 3, 211 cbm, built 1990, LPG carrier Gas Crystal for demolition. Total proceeds were $2.1 million for Gas Kaizen and Gas Crystal en bloc.

On April 14, 2015, the Company took delivery of a 5, 000 cbm, 2015 built, eco LPG carrier – Eco Enigma, while on April 30, 2015, the Company took delivery of a 3, 500 cbm, 2015 built eco LPG carrier- Eco Royalty (now named B GAS SUPERIOR), both from Japanese shipyards.

The Company also announced the conclusion of the following chartering arrangements:

  • A four month time charter for its 5, 000 cbm, 1997 built, LPG carrier, Gas Monarch, to a national oil company until July 2015.
  • A six month time charter for its 5, 000 cbm, 2015 built, LPG carrier, Eco Enigma, to a national oil company from July 2015 until December 2015.
  • A six month time charter for its 3, 500 cbm, 2015 built, LPG carrier, Eco Lucidity from May 2015 to November 2015 to an international trading house.
  • A two year time charter extension for its 5, 000 cbm, 2011 built, LPG carrier, Gas Cerberus, to an international trading house until July 2017.
  • A four months’ time charter extension for its 3, 500 cbm, 2006 built, LPG carrier, Gas Alice from May 2015 to August 2015 to an international trading house.

With these charters the Company has increased the contracted revenues to approximately $238 million. Total voyage days of our fleet are 66% covered for the remainder of 2015 and 37% covered for 2016.

Additionally, the previously reported period charter for our single Aframax tanker SPIKE, will bring a total of $22 million EBITDA over its five year duration excluding the profit split element.

CEO Harry Vafias commented

We are pleased with our performance during the first quarter of 2015 as our Company marked record revenues, surpassing $35.5 million, in spite of the difficult market environment of the small LPG segment. Indeed declining freight rates in conjunction with low oil prices, have had a negative impact on freight rates for small LPG carriers and therefore this quarter and compared to the first quarter of 2014, our fleet operational utilization fell to 95.6% and our spot market days increased. Our Company continues its steady performance focusing on low leverage and reducing our ships’ break even through this challenging environment. We are proceeding with our fleet renewal program consisting of top quality eco gas carriers and since the beginning of 2015 to date we have added to our fleet three modern Eco LPG Newbuildings while scrapping our two oldest vessels thus lowering our average fleet age to 10.3 years. Within 2015 we expect the delivery of another seven Eco LPG carriers mainly from Japanese yards.

In addition, our chartering strategy has been proven once again successful as we managed within the first quarter of 2015 to expand the fleet employment for the year to 66% and increase our secured revenues to $238 million up to 2022 ($220 in Q4 2014). Most importantly we have proven to the market that our conservative philosophy works in both good and bad times

Our current outlook for the remaining of 2015 is for LPG charter rates to likely mark a further small decrease and inevitably we anticipate this to exert pressure on the weaker owners thus seeing an increase of demolition. Our strong balance sheet, with a ratio of debt to total assets of 34%, our strong liquidity and ongoing profitability puts us in a position to address any challenges that might arise in the future.

About STEALTHGAS INC.

Headquartered in Athens, Greece, StealthGas Inc. is a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry. StealthGas Inc. currently controls a fleet of 44 LPG carriers, including two chartered in vessels, with a total capacity of 214, 051 cubic meters (cbm), three M.R. product tankers and one Aframax oil tanker with a total capacity of 255, 804 deadweight tons (dwt). The Company has further agreed to acquire 13 LPG carriers with expected deliveries ranging from June 2015 to December 2017. Giving effect to the delivery of these acquisitions, StealthGas Inc.’s LPG fleet, including the chartered in vessels will be composed of 61 vessels with a total capacity of 352, 451 cubic meters (cbm). StealthGas Inc.’s shares are listed on the NASDAQ Global Select Market and trade under the symbol “GASS”.

Fleet Data:

The following key indicators highlight the Company’s operating performance during the first quarters ended March 31, 2014 and March 31, 2015.

 

FLEET DATA

Q1 2014

Q1 2015

Average number of vessels (1)

42.0

45.9

Period end number of vessels in fleet

43

46

Total calendar days for fleet (2)

3, 784

4, 312

Total voyage days for fleet (3)

3, 750

4, 301

Fleet utilization (4)

99.1%

99.7%

Total charter days for fleet (5)

3, 417

3, 603

Total spot market days for fleet (6)

333

698

Fleet operational utilization (7)

98.3%

95.6%

1) Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.

2) Total calendar days are the total days the vessels were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.

3) Total voyage days for fleet reflect the total days the vessels were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.

4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.

5) Total charter days for fleet are the number of voyage days the vessels in our fleet operated on time or bareboat charters for the relevant period.

6) Total spot market charter days for fleet are the number of voyage days the vessels in our fleet operated on spot market charters for the relevant period.

7) Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days (excluding commercially idle days) by fleet calendar days for the relevant period.

Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS:

Adjusted Net income represents Net Income before loss on derivatives excluding swap interest paid, impairment loss, share based compensation and unrealized exchange differences. EBITDA represents net income before interest, income tax expense, depreciation and amortization. Adjusted EBITDA represents EBITDA before impairment loss, share based compensation, loss on derivatives, excluding swap interest paid, and unrealized exchange difference. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries.  In evaluating Adjusted EBITDA and Adjusted Net Income, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.

EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide additional information on fleet operational results. We also use EBITDA to assess our liquidity position and believe it represents useful information for investors regarding a company’s ability to service and/or incur indebtedness.

(Expressed in United States Dollars,
except number of shares)

First Quarter Ended March 31st,

 

2014

2015

Net Income – Adjusted Net Income    
Net income

7, 632, 078

5, 831, 920

Loss on derivatives

69, 505

59, 691

Less swap interest paid

(607, 006)

(409, 246)

Unrealized exchange gain

(1, 089)

(23, 959)

Share based compensation

72, 155

305, 335

Adjusted Net Income

7, 165, 643

5, 763, 741

     
Net income – EBITDA
Net income

7, 632, 078

5, 831, 920

Plus interest and finance costs incl. swap interest paid

2, 672, 867

2, 623, 240

Less interest income

(74, 697)

(126, 236)

Plus depreciation

8, 090, 675

8, 370, 572

EBITDA

18, 320, 923

16, 699, 496

     
Adjusted Net income -Adjusted  EBITDA    
Adjusted Net Income

7, 165, 643

5, 763, 741

Plus interest and finance costs incl. swap interest paid

2, 672, 867

2, 623, 240

Less interest income

(74, 697)

(126, 236)

Plus depreciation

8, 090, 675

8, 370, 572

Adjusted EBITDA

17, 854, 488

16, 631, 317

     
EPS – Adjusted EPS
Net income

7, 632, 078

5, 831, 920

Adjusted net income

7, 165, 643

5, 763, 741

Weighted average number of shares

33, 751, 847

42, 037, 738

EPS – Basic and Diluted

0.23

0.14

Adjusted EPS

0.21

0.14

StealthGas Inc.

Unaudited Consolidated Statements of Income

(Expressed in United States Dollars, except number of shares)

 

First Quarter Ended March 31,

2014

2015

 

Revenues
Revenues

31, 450, 716

33, 242, 168

Revenues – related party

2, 433, 750

2, 433, 750

Total revenues  

33, 884, 466

 

35, 675, 918

Expenses
Voyage expenses

2, 700, 724

3, 821, 073

Voyage expenses – related party

413, 725

432, 331

Charter hire expenses

  —

1, 031, 908

Vessels’ operating expenses

9, 697, 564

10, 676, 563

Vessels’ operating expenses – related party

979, 770

1, 024, 564

Drydocking costs

363, 016

  —

Management fees – related party

1, 276, 700

1, 510, 280

General and administrative expenses

665, 117

923, 828

Depreciation

8, 090, 675

8, 370, 572

Total expenses  

24, 187, 291

 

27, 791, 119

         
Income from operations  

9, 697, 175

 

7, 884, 799

Other (expenses)/income
  Interest and finance costs

(2, 065, 861)

(2, 213, 994)

  Loss on derivatives

(69, 505)

(59, 691)

Interest income

74, 697

126, 236

Foreign exchange (loss)/gain

(4, 428)

94, 570

Other expenses, net  

(2, 065, 097)

 

(2, 052, 879)

Net income  

7, 632, 078

 

5, 831, 920

Earnings per share
– Basic and diluted

0.23

0.14

Weighted average number of shares
-Basic and diluted

33, 751, 847

42, 037, 738

 StealthGas Inc.

Unaudited Consolidated Balance Sheets

(Expressed in United States Dollars)

December 31,

 

March 31,

 

2014

2015

 

 

 

Assets
Current assets
Cash and cash equivalents

129, 114, 803

127, 520, 443

Receivables from related party

104, 476

  —

Trade and other receivables

3, 211, 563

3, 697, 229

Claims receivable

70, 273

164, 312

Inventories

2, 958, 666

2, 771, 121

Advances and prepayments

1, 386, 003

1, 362, 098

Restricted cash

2, 896, 677

4, 898, 975

Vessel held for sale

  —

1, 978, 551

Total current assets  

139, 742, 461

 

142, 392, 729

Non current assets
Advances for vessels under construction and acquisitions

88, 965, 085

81, 984, 536

Vessels, net

711, 352, 845

715, 814, 028

Other receivables

228, 494

628, 494

Restricted cash

2, 500, 000

2, 500, 000

Deferred finance charges, net of accumulated
   amortization of $2, 868, 432 and $3, 013, 508

3, 090, 918

2, 945, 842

Total non current assets  

806, 137, 342

803, 872, 900

Total assets  

945, 879, 803

946, 265, 629

Liabilities and Stockholders’ Equity
Current liabilities
  Payable to related party

4, 941, 896

4, 322, 916

Trade accounts payable

8, 843, 593

8, 798, 907

Accrued and other liabilities

3, 903, 027

5, 315, 452

Deferred income

6, 892, 328

7, 183, 901

Fair value of derivatives

583, 368

1, 722, 519

Current portion of long-term debt

42, 614, 213

46, 306, 317

Total current liabilities  

67, 778, 425

73, 650, 012

 
Non current liabilities
  Fair value of derivatives

1, 873, 295

599, 338

  Customer deposits

  —

1, 820, 700

  Deferred gain on sale and leaseback of vessels

775, 741

727, 650

  Deferred income

172, 428

Long-term debt

282, 889, 640

276, 726, 963

Total non current liabilities  

285, 711, 104

 

279, 874, 651

Total liabilities  

353, 489, 529

353, 524, 663

Stockholders’ equity
Capital stock

442, 850

442, 850

Treasury stock

(7, 541, 264)

(13, 113, 078)

Additional paid-in capital

499, 862, 062

500, 167, 397

Retained earnings

99, 919, 646

105, 751, 566

Accumulated other comprehensive loss

(293, 020)

(507, 769)

Total stockholders’ equity    

592, 390, 274

 

592, 740, 966

Total liabilities and stockholders’ equity  

945, 879, 803

 

946, 265, 629

                 

 

StealthGas Inc.

Unaudited Consolidated Statements of Cash Flows

(Expressed in United States Dollars)

 

First Quarter Ended March 31st,

 

2014

2015

 

 

Cash flows from operating activities
Net income for the period

7, 632, 078

5, 831, 920

Adjustments to reconcile net income to net cash
  provided by operating activities:
Depreciation

8, 090, 675

8, 370, 572

Amortization of deferred finance charges

168, 780

145, 076

Amortization of deferred gain on sale and leaseback of vessels

  —

(48, 091)

Unrealized exchange differences

(1, 089)

(23, 959)

Share based compensation

72, 155

305, 335

Change in fair value of derivatives

(537, 501)

(349, 555)

Changes in operating assets and liabilities:
  (Increase)/decrease in
Trade and other receivables

939, 057

(885, 666)

Claims receivable

  —

(583, 643)

Inventories

102, 842

187, 545

Advances and prepayments

73, 218

23, 905

Increase/(decrease) in
Balances with related parties

336, 573

(514, 504)

Trade accounts payable

1, 154, 450

473, 247

Accrued and other liabilities

495, 496

353, 582

Deferred income

(656, 366)

119, 145

Net cash provided by operating activities  

17, 870, 368

 

13, 404, 909

Cash flows from investing activities
  Insurance proceeds

40, 410

489, 604

  Vessels acquisitions and advances for vessels under construction

(27, 055, 490)

(7, 829, 757)

Proceeds from sale of vessels, net

1, 058, 843

Increase in restricted cash account

(1, 385, 461)

(2, 002, 298)

Net cash used in investing activities  

(28, 400, 541)

 

(8, 283, 608)

Cash flows from financing activities
Stock repurchase

(6, 089, 747)

Net proceeds from common stock issuance

31, 885, 501

Customer deposits received

1, 820, 700

Loan repayments

(10, 614, 248)

(23, 395, 573)

Proceeds from long-term debt

17, 150, 000

20, 925, 000

Net cash provided by/(used in) financing activities  

38, 421, 253

 

(6, 739, 620)

         
Effect of exchange rate changes on cash

1, 089

23, 959

Net increase/(decrease) in cash and cash equivalents

27, 892, 169

(1, 594, 360)

Cash and cash equivalents at beginning of year

86, 218, 517

129, 114, 803

Cash and cash equivalents at end of period  

114, 110, 686

 

127, 520, 443

Stealth maritime corp. is happy to announce that mr Lambros Babilis has been appointed CEO of the company with immediate effect. Mr Babilis has studied Naval Architecture and Mechanical Engineering in National Technical University of Athens, has been since 2000 a long serving employee of the group and has climbed the ranks quickly to become group COO. The shareholders have decided that he is the right person to lead the company that was founded in 1999 and now controls 21 tankers evenly split between aframaxes and product tankers. In addition stealth maritime manages technically and commercially abt 50 gas carriers for stealthgas, the listed subsidiary of the group. Mr Babilis is deputy chairman of stealthgas as well.

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