Release Date: May 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- StealthGas Inc (GASS, Financial) reported a revenue of $42 million for Q1 2025, demonstrating resilience in a tumultuous market.
- The company has significantly reduced its debt by $54 million this year, bringing the current debt level to just $30 million, effectively making the company net debt free.
- StealthGas Inc (GASS) has maintained a high period coverage of 70% of fleet days for 2025, securing over $165 million in future revenues.
- The company has been actively engaging in share repurchases, spending approximately $1.8 million to buy back shares, which is considered a sound use of liquidity.
- StealthGas Inc (GASS) has a strategic focus on fleet diversification and renewal, with recent acquisitions and sales leading to a net increase in fleet size.
Negative Points
- Adjusted net income for Q1 2025 was $16.1 million, which is lower than the first quarter of 2024 due to increased expenses.
- The spot market weakness led to a decrease in TCE or net revenues by 4.6%, impacting overall financial performance.
- Operating expenses increased by 17% due to higher crew costs and maintenance fees, affecting profitability.
- The company faced an impairment of $0.5 million for the vessel Gas Cerberus, impacting financial results.
- Interest costs, although reduced, still impacted the financials, with a net income decrease of 20% compared to the same quarter last year.
Q & A Highlights
Q: Can you provide an overview of StealthGas's financial performance for the first quarter of 2025?
A: Konstantinos Sistovaris, Chief Financial Officer, reported that StealthGas generated $42 million in revenues for Q1 2025, slightly up from $41.6 million in the same quarter last year. Adjusted net income was $16.1 million, similar to Q4 2024 but lower than Q1 2024 due to increased expenses. Earnings per share on an adjusted basis were $0.44. The company has significantly reduced its debt, now standing at $30 million, and maintains a free cash balance more than twice that figure.
Q: What strategic objectives has StealthGas achieved recently?
A: Michael Jolliffe, Chairman of the Board, highlighted that StealthGas is close to completely deleveraging, having reduced debt by $54 million this year. The company has also been active in its share repurchase program, spending approximately $1.8 million on buybacks. Additionally, StealthGas has secured over $165 million in future revenues and maintains a 70% period coverage for its fleet days in 2025.
Q: How is StealthGas managing its fleet and employment strategy?
A: Michael Jolliffe explained that StealthGas is focusing on maintaining a visible revenue stream and has secured about $70 billion in revenues for the remainder of the year. The company is also looking to extend the duration of its charters and has managed to maintain a high 70% visibility of earnings for 2025. The fleet strategy includes selling older tonnage and possibly replacing it with newer vessels.
Q: What are the current market conditions for LPG and how is StealthGas positioned?
A: Harry Vafias, CEO, noted that global LPG exports are on a steady upward path, with the US marking an 8% year-on-year growth in Q1 2025. StealthGas is well-positioned in the market, with a focus on the Western markets, which yield superior returns. The company is also engaged in ammonia trades, which have potential for growth.
Q: What are the key challenges and opportunities for StealthGas moving forward?
A: Harry Vafias mentioned that while there is uncertainty in the market, StealthGas remains confident in sustaining its momentum. The company has eliminated its financial risk by becoming net debt-free and is actively buying back shares to return value to shareholders. The LPG market is expected to grow, with increased exports from the US and Middle East, presenting opportunities for StealthGas.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
