StealthGas, Inc. Q3 FY2024 earnings call

• The third quarter was successful despite seasonal weakness, with the most profitable nine months ever. Revenues were $40.4 million, net income adjusted for Q3 was $14.2 million. - The company has deleveraged, reducing debt to below $100 million through repayments. - Fleet strategy: diversify and renew, with sale of vessels, delivery of new ones, and ongoing search for sale/purchase opportunities. - Chartering: secured 65% of contracted days for 2025 with revenues of about $100 million, and total revenues secured up to 2027 at $220 million. - Drydocking schedule: four vessels dry-docked in Q3, with more scheduled in Q4; higher costs in European shipyards. - Fleet geography: focused on regional trade, with vessels in Europe, US/Caribbean, Africa, and Middle East/Far East. - Joint venture updates: sale of vessels, buyback of a vessel, and looking to sell remaining smaller vessels.

Revenues for the third quarter were $40.4 million, slightly down 3% from the previous quarter but up 17% year-over-year. Adjusted net income for the third quarter was $14.2 million, 18% higher than last year. The first three quarters of 2024 had an adjusted profit of $61 million, a record. Earnings per share adjusted were $0.38 for the quarter (23% higher) and $1.67 for the nine-month period (61% increase). The company's fleet mainly focuses on regional trade and local distribution of gas. Most vessels are in Europe (60%), with some in the US/Caribbean, Africa, and Middle East/Far East. The fleet has been strategically diversified and renewed, with vessel sales and deliveries, and chartering activity securing significant revenues for future years.

• The company is on track for a record year, with contract covered 65% for 2025 securing approximately $100 million in revenues. - Total revenue secured up to 2027 is steady at $220 million. - Expect market strength in winter, continuing the positive performance seen in the nine-month period.

• Houthi attacks in the Red Sea affecting trade routes, leading to longer voyages around the Cape of Good Hope and impacting profitability for some vessels. - Higher drydocking costs in European shipyards compared to far eastern ones. - Order book situation for medium gas carriers (MGCs) with a high ratio, posing risks to future rates; ordering MGCs at record prices is seen as a risky proposition.