GASS - Earnings call 4 2023

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Operator

Good day, and thank you for standing by. Welcome to the StealthGas Inc. Q4 2024 (sic) [ 2023 ] Results Conference Call and Webcast. [Operator Instructions] Please note that today's conference is being recorded. I would like now to turn the conference over to your speaker, Mr. Michael Jolliffe, Chairman. ahead. go Please

Michael Jolliffe

call and and conference everyone, of our quarter financial market on fourth Board Vafias, is Good discuss aspects. Sistovaris, to and welcome to webcast. earnings the our me joining call Directors. company Chairman as I'm XXXX usual, of Harry outlook; morning, and And to today, Konstantinos Michael the the Jolliffe, discuss

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

also all read if disclaimer presentation, all So are filing Commission. could take like you be would Securities shall Slide a further announcing clarified, this and to point moment of year the to in the U.S. StealthGas' Exchange for with amounts our X stated disclosed in our grateful. Risks otherwise XXXX, on we and quarter in I the row, fourth I profits. quoted, year implicitly for unless dollars. Today, full are released results record second a the out for that

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

Wizard of first some the to update. our MGC That their respective January. X. also operations Eco delivery with previously charters. we Dream that took and We Eco Eco the time Oracle vessels, newbuilding Turning of fleet long-awaited those Slide announced and starting highlights vessels in Eco summarize We were vessels, sale deployed and X delivering concluded Green, same on the month,

joint fleet owned for both fleet of months, period last XXXX contract during was continued we securing and venture in fleet. days firm our coverage with fully charters, XX% market for our the fully of vessels of owned our the for the As more couple

subsequent our periods, We $XXX have vessels. for contracted over JV excluding revenues all million of vast

respectively, voyage last voyage financial costs With, a that is average, in to year smaller net of days, Moving net million X revenues at for spite and $XXX.X fewer compared million to our and of fleet on and $XXX.X in were the XXXX, reduction flat vessels highlights. XX% XXXX fleet.

the strong $X.X in XX% remained million a was profitability increase. $X.X Our compared quarter fourth last to million year, and

million While year, and per we $XX XX% maintain was out the over million $XX.X highest the XX which share X $XX.X our profit is the million have $XX.X year, [ (sic) our debt that compared older quarter. $X.XX far debt full and a last worth drew by million million still to the for finance halved ] pointing for net became of increase, $XXX company prepaid facilities, it the also of one made and during recorded In vessels income Earnings first public. newbuilding the a strong XXXX, months X were the loan since liquidity. is XXXX, paying we repayments $XX of months down delivery having this of facilities on million to thus of down so by

million bought shares shares, $XX the as X.X total number X.X shares repurchased bringing XXXX, last far of the the costing back we of share As during million to quarter buybacks over million.

XXXX share purpose. a have we for authorized so repurchases not made left have such during any million [indiscernible] and However, about far

February. X to for fully Let employment owned our as update Slide on fleet us move of

in we period number like a Just new announced charters. the previous call, of again

and X duration of of X our months duration, X existing excluding charters, new X X these JV duration. were charters. for with mostly of were extensions vessels One a months X-year and

the MGCs, days higher is in increased and As our for to our securing since XX%. slightly we coverage Handy almost the year, the million for contracted have Size vessels X result, significantly the X the $XXX X beginning while a at in fleet, XXXX XX% of revenues, percentage larger

$XXX for of million. all managed in also secure our currently have the spot of vessels revenues over contracted Only market. up X XXXX We to periods operate to

Slide XXXX, would Lastly, scheduled comprising during of small we an of LPG In dry-dock. for terms vessels joint our dry-docks, X like X I vessels. update now ventures of X, have X in to provide

the activity venture small were X into X was X spot. there period with LPG the these whereas chartering months, far entered As the all lot a on charters vessels XX vessels, and joint as of X operating between side, of before,

that As be just far quarter, to has the as scheduled dry-dock X its current was dry-docked in vessel completed.

on charter gas carriers, had joint deposit. and charterer second charters, Eco of accompanied The to attached announced. to its currently purchase of exercise us comprises currently the option notified period previously that intention as both venture medium a Ethereal's a X are The option by

We sale vessel From statement the expect in subject be all share quarter. income and expects delivered we to venture proceeds vessel second in be at distributed the profits the accumulated to be end sale, charter its the the with StealthGas the of will thereafter. part profit to partners, the and debt-free the joint reflected is the after the a expect investments the that Also, conclusion. and partners the our will of agreement of

including geography trade of X, the while larger gas, and fleet, fleet the local fleet, snapshot in focuses Europe, our our Northwest Mediterranean. vessels a often and is the positioning our presented voyages. mainly majority vessels in the JV of in trade mid-February. The graph XX of into vessels the of distribution of of Slide currently in terms This engage company In particularly on Continental the as regional

Mid over in Suez X as the of strategically the X on are rates a quarters Far trading more East freight several redistribution focused premium this this West fleet. past East, in trade. We expect not although Suez. Trans a to X do area command than over of Caribbean is continue trading have the vessels in We Africa, a X Indian quarter, and previous of trading major Ocean and the the the the vessels in U.S.

we said, vessel have being from relocating to Europe. that X Asia Although do

in is this trading that MGC vessels the of in Europe. However, one engage to expected ammonia delivered recently is

cargo very vessels move west address to particular of to situation. it east unload also rather opportunity the enter the will often via take although Mediterranean its is vessel, Sea our the Red the Suez on and from saying vice the intends me the this that that from matter and it from versa by it than Let route not Since Gibraltar in which the is Cape the long time Mediterranean, to Canal. charter, follow

So instead the of taking XX days, almost double will time. the trip about days, XX take

will call I Konstantinos to for financial Sistovaris now Thank you. turn the over performance. our

Konstantinos Sistovaris

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

though a turn of revenues, million voyage snapshot X.X% by net XX% were and and to of for vessels, is year. reduced the the days period quarter the quarter million X the months us in see for decrease fewer and came XXXX against XX% that we expenses had Slide the XX of XX compared fleet last we after Even statement months at for the same for for where of Let XX and income months, to fourth $XX.X the quarter X, a $XXX.X XXXX.

So the We our we OpEx and yearly cost larger $XX.X would fewer had particularly pressures last first the the expected during quarter face but Operating revenues did of $XX.X a million have quarter, at a had of year. vessels and year inflationary full voyage reduction down year-on-year, were overruns, in generated voyage for reduction were comparatively reduced expenses XX%, million, more expenses. while for X.X%.

During the to our of the maintenance vessels. of extraordinary one fourth quarter, we related also faced costs some

being the depreciation reduction respectively, the result costs note We and $XX.X $X.X to fleet quarter XX significantly million for reduced as months. of a and million, also

a full for During year, of the million during of the $X.X on the its fourth this million gains But from and values vessels recognize of quarter any coming fleet. recognized did $X.X company the that not year, period. company the a or loss gain losses impairment sale the

the increased to even compared quarter quarterly more period which million last rates were the months $XX.X income have XX% company's As for operations period, into XX% XX to comparative XX translates over and result the result, significant debt $X.X a period as from million in is of -- the Interest by X% result tripled and year. the a the significantly finance savings repayments. reduced that to months XX% increased by than though and for costs the over and

vessels in $XX.X line In the particularly and addition, our months and the with activities. particularly and joint both sale to XX million good in operations XXXX, million adding bottom from the larger produced X purchase from for $XX.X XXXX period, ventures, results,

with As XXXX quarter of a $X.X million quarter of of result all and last million increase of $X.XX per of share to compared the fourth net of fourth the of income we year, XX% ended share adjusted with above, same for the the quarter $X.XX. earnings per earnings a $X.X for

profits record period, share second the adjusted XXXX the $XX.X XX-month income million year increase. were were Earnings net $XX.X year, XX% a and While to last row. million per compared for company earnings was These in per $X.XX. share were for a $X.XX a for for

sheet balance Slide in the X. at Looking

the whose $XX.X million, in XX. due the $XXX.X enhanced ventures $XXX.X investments vessels at $XX.X Our Both $XX.X our due proceeds instead to last liquidity, and million, cash close quarter, X investments the value million. were sold reduced The quarter, of the market December is XXXX. repayments. Vessels joint restricted million $XXX mostly of $XX.X as sale vessels decreased of value now of debt X held was the time previous to in from net to these million for year, was end value including the at liquidity. book were book sale the January million previously during our short-term that mostly of vessels debt-free were million, at XX-XX from end to Vessels of but and covering approximately the

has Moving the million on total last $XXX debt million end of side. liability by $XXX quarter. to been reduced the The to at

the the XXXX, in of the quarter. With finance increase million of the $XX we debt first quarter expect in for an during proceeds coming addition

to so was The far XXXX repaid million as during the continue quarter. $XX a on we buying $XX equity. back million Although in current reduction and accounted in shares prepay spent have

than the and low December debt its commentary result during overall, being the down equity maintain have repayments, million outstanding shareholders' to leverage. debt a profile. $XXX $XXX a However, a million. Concluding of very with company X, will as year, debt we Over period, XX the $XX of a increase look briefly to Slide we of to financial results more $XXX to by million did at XX-month over the million reported half our managed solid with as continues

amortization. made, During debt were regular the just fourth no quarter, prepayments

a from to down proceeds related in newbuilding drew vessels. recently company finance on the the January, its facility X $XX concluded During X-year million

outstanding no currently, to part used the million company prepay $XX proceeds of further As the commitments, there are from another facility. CapEx

fleet, the has there considerable a current As the XX vessels company in its A funds. mortgage-free. advantage a out result, of need to raise if is XX ever vessels

of end the is XX%. of The are over have as Harry until and the to swaps interest reduced XXXX to balloon the will hand the will that beginning payments risk hand, On and there other now our who outlook. refinancing you hedged company low rate the discuss debt with prepayments is very no market CEO, Vafias, XXXX. I

Harry Vafias

we XX, was marking growth, increased an X.X% a XX% XXXX Slide the year-on-year. bumper LPG market. increased its the rate year brief exports insight on of that have growth. for exports On U.S. further impressive year-on-year LPG The a

U.S. Middle decrease has East demand as position volumes of We did as in situation has will exports. and current is been expect as for accounts OPEC The of so not ship exporter been that far continue users relatively mainly over world coupled now the such incremental global #X heating breakneck winter much. continuing albeit change solidifying to not NGLs of 'XX, amounts petrochemical The the the XX% to dynamic. U.S. year, mild, during speeds. This, a the result Europe cuts the in also reducing in with

in part a by could of in safety of inventories majority limited the and fleet. a the and operational do that a high excludes said very remain that significant and in vessels European did the quite strengthen. was boost being Europe, see of supply trade As strict rates of This marking imports consequence the expected the has year-on-year. That our been ports active also trades and fleet since declines limitation being not set pressurized result, be Europe interregional global

growing more of prices economy projections import forecasts a ] subdued XX% growth eliminating a general China, to supportive coming, but the use. million has And the in billion-plus as was the duties subsidies that record imports is other and 'XX the with registered led [ As elections reports for major X utilization by and economy, further 'XX, last ratios. XX% accessible more the year, XX are high increases. more for are people where been household is quarter importantly, demand people. China in a by the million of of lower to India far although government India to in plant importers, demand growing of is as LPG growing reopening assisted the of imports LPG petrochemical tons -- X% last record X make surpassed order in XX for LPG tons, India

the X is set on even X.X million adding if next are million million came X from 'XX, 'XX tons plants of only tons and that's usual these 'XX over to optimistic X added to X PDH today's million capacity. delays are tons estimated During X the in in level. million said too and that Report stream, new given capacity tons years, still a XX% and addition X added but another be an

Red issues Canal and The Sea are the Panama the X other situation.

delays situation the still as remain, slowly the improving. that far seems it is As Panama although Canal,

we equally arbitrage but exports while point attacks is by especially a a the Red other trade the and decrease, Houthis on one new it on support situation Sea So view. It's commencing with some will miles vessels with the on safety vessels will how of China, fundamentals our our may the with hand, for Slide serious to to us. the hand, time that from ton we Sea, situation charter Red market example market. XX, of On present affect rates that an Michael key gave the not often our of shipping you close in see just but

increases exception trade. Handy larger [ with up to Size MGC particularly down the Asia We see ] in increase to and and significant moderate continue the X.Xk rates the in sizes ships, the quarter-on-quarter ships of to XX%, like

of West Suez. small at Looking LPG trade the

market is of the side, the market side, East active, and period the of in was period owners QX. enjoying saw On of leading we firm winter Suez, year-end. At time writing, going the through quite up a QX the than typical freight on more to are rates. period activity strength

performance reason few the market Asia behind a is we is have favor vessels West. the why the of leave for the that in lagging However, still seen Atlantic. This

for tight on market, rates of For need the more much rather VLGC of significantly to charterers back of the ideas. charterers have and very through Handy the increased between been of tonnage what used paying many fund Size Handy MGC the they spot positions an and ever-strengthening start owner has than quiet Since the strength Size took year, significant and vessels substantially. [indiscernible] in again sales from TC significantly the been remains and quarter available MGC market became which years. of market the increased gap

pressurized see delivered markets, are core old. being next is we continue MGC a soon as the between years. be With fleet As that fell on to we fleet the for of back vessels much of in supply-demand X/X say. limited, inquiries many would fundamentals inquiries is the promising firm look picture VLGCs took X with only period a good is very as situation. a in be then, our only aging their not number of the period take the to coming have peak that the ordered, as pretty activity period spot like The I TC ships the handful there from market, to fleet enough fleet up. The the candidates to And over to long-term and there the balance. Similar is Handy mid-January, tip side us will where almost Size quiet. question scrapping certain thing years reiterate to competition owners a is over due although with view, things limited to more XX since on the continue an step the remained X won't vessels of And how any small

for we demand this orders and On book at slide showing of of proven indeed have comparison resilient. for for order newbuilding we MGC we the of In sellers vessels in of fleet. market. Since vessel vessels and XX, capacity our terms JV XXXX far strategic about cubic total. XX,XXX fleet vessels held fixed LPG focus XX%, the a a these including purposes, left of our that been the pure tanker beginning Slide XXXX, 'XX, view, about of but have in so for numbers. On years the a LPG are of high excluded meter bulk The there is vessels capacity, in From point XX have the fleet vessels. of the healthy very is to rising side, the prudently cubic we up have our [indiscernible] we evolution have

is larger making However, replacing 'XX, the expansion in we since vessels October brand-new have modern are meters. medium cubic gas X This carriers. the of smaller sizes, older ships for XXX,XXX we added

but fleet to Handy our diversity of units, in continues the in terms volatility smaller X terms the stream composition fleet revenue albeit Size gas of carriers, changed in and more core gas with Our carriers and customer with adding our base, medium of X consist rates. operations has and flexibility of

intention fleet with to to ones. larger opportunities diversified replace a is Our keep and seek smaller ships

we'll the Now Mr. Jolliffe you pass remaining results. on for to

Michael Jolliffe

Thank In of last you, quarters are variables some performance in affect the our that our #XX, outlining key we Slide the ahead. may Harry.

the We strong for optimistic up, another reasons on StealthGas quarter the fourth continue was to of remain quarter that yet earlier. Summing term million. income $X.X It analyzed of we for XXXX, profitability. reported a longer the net

net amounted $XX.X of far a XX% year's XXXX, million yearly corresponding For $XX.X last record the to full to increase. profit surpassing million, year income

has well lasting sound So of improve and driver policies as recovery hopefully the the drastically to it guide me opportunistic also need LPG that the sustain it its company the volatile continue. market profitability, gives great of managed results are will main Obviously, But only plays that as successfully. pleasure such not record decisions. but to markets is

XXXX, rates and for currently market paying Eco prices over of charters profitability repaid to of it buying last having asset in $XXX rising, back rising, current as million issued rather our interest were growth of quarter our Eco of fleet, value securing million. That during more important over did down MGC taking in $XXX whose meter took support the XX% it over cubic $XX.X to contracted the being year, and and over the said, year. not and as delivery in own returning renew year and and by advantage charters on XXX,XXX vessels vessels, $XX Wizard, in was this revenues, such, million debt million XXXX period StealthGas should As company period on focus stock were the focus shares shareholders was the to not the collect bought January having this spending also Oracle selling

So beginning remains far, solid vessels promising barring the last believe quarter. significantly any XXXX price looks Even of the climbed for firm our we events, the revenues current in and as at we we should share continue undervalued market year, sound, though our extraordinary the also over of has on we are the still because a and trading investment, are good a we producing and to price to results, discount not NAV just be in have but ratios. market earnings optimistic been price expect to terms because

results reached would your for call conference you the our our call joining look we our today and to at of you. and and quarter you end conference We interest Thank again like with presentation, company. having forward We thank next our have to for at May. us for in us now in first our trust

Operator

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

Thank You may your now you. disconnect lines.

StealthGas (GASS) 21 Feb 242023 Q4 Earnings call transcript