STEALTHGAS INC. Reports First Quarter 2021 Financial and Operating Results

Rhea-AI Summary

STEALTHGAS INC. (NASDAQ: GASS), a ship-owning company focused on the LPG sector, reported Q1 2021 results with voyage revenues of $37.4 million, up 8.7% year-over-year. Fleet utilization was 98.7%, while operational utilization stood at 93.1%. The company secured 61% of fleet days on period charters, generating about $87 million in contracted revenues. However, net income fell to $0.8 million ($0.02 EPS), down from $3.0 million ($0.08 EPS) a year ago, attributed to increased operational costs and lower bareboat activity.

Positive

• Fleet utilization reached 98.7%.
• Voyage revenues increased by $3 million, or 8.7%, year-over-year.
• 61% of fleet days secured on period charters for the rest of 2021, generating approximately $87 million in contracted revenues.
• Net finance costs decreased by $1.1 million quarter-over-quarter.
• Total cash, including restricted cash, amounted to $52.9 million.

Negative

• Net income dropped to $0.8 million from $3.0 million year-over-year.
• EPS decreased from $0.08 to $0.02.
• EBITDA fell to $13.4 million from $16.5 million year-over-year.
• Increased voyage expenses ($6.9 million) and operational expenses ($15.1 million) compared to Q1 2020.

ATHENS, Greece, May 26, 2021 (GLOBE NEWSWIRE) -- 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, 2021.

OPERATIONAL AND FINANCIAL HIGHLIGHTS¹

• Fleet utilization of 98.7% with 50 days of technical off hire mainly as a result of one drydocking completed within Q1 2021.
• Operational utilization of 93.1% mainly due to 15 of our ships having a predominant presence in the spot market - equivalent to 31.2% of voyage days.
• 61% of fleet days secured on period charters for the remainder of 2021, with total fleet employment days for all subsequent periods generating approximately $87 million (excluding vessels in joint ventures) in contracted revenues. Period coverage for the remainder of Q2 21’ is currently 80%.
• Sale and delivery in Q2 21’, of the 35,000 cbm MGC vessel, the Gaschem Hamburg (2010 built), owned by our MGC joint venture arrangement, for a price of $34 million generating an aggregate gain, for the Joint Venture, of $7 million.
• Voyage revenues of $37.4 million in Q1 21’, an increase of $3.0 million compared to Q1 20’ mostly due to a 58% decrease in the fleet’s bareboat activity where revenues are inherently lower than those earned from time charter and spot activity.
• Net income of $0.8 million for Q1 21’ corresponding to an EPS of $0.02 compared to net income of $3.0 million corresponding to an EPS of $0.08 in the same period of last year.
• EBITDA of $13.4 million in Q1 21’ compared to $16.5 million in Q1 20’ - due to lower operational utilization as a result of higher spot activity.
• Low gearing, as debt to assets stands at 37.7%, and a quarter over quarter reduction in finance costs by $1.1 million.
• Total cash, including restricted cash, of $52.9 million with no capital expenditure commitments in the near future.

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¹ EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Refer to the reconciliation of these measures to the most directly comparable financial measure in accordance with GAAP set forth later in this release.

First Quarter 2021 Results:

• Revenues for the three months ended March 31, 2021 amounted to $37.4 million, an increase of $3.0 million, or 8.7%, compared to revenues of $34.4 million for the three months ended March 31, 2020, mainly due to seven vessels, now operating either in the spot market or under a time charter contract which were employed on bareboat charters in the same period of last year.
• Voyage expenses and vessels’ operating expenses for the three months ended March 31, 2021 were $6.9 million and $15.1 million, respectively, compared to $2.8 million and $13.2 million, respectively, for the three months ended March 31, 2020. The $4.1 million increase in voyage expenses is attributed to the 260% increase in spot days. Due to our increased spot activity, we witnessed this quarter a sharp increase of both port expenses and bunker costs, particularly as we had two of our product tankers operating in the spot market. The 14.4% increase in vessels’ operating expenses compared to the same period of 2020, is a result of seven fewer vessels on bareboat, which vessels are now operating either on time charter or in the spot market along with an increase of our daily crew costs crew due to the COVID-19 pandemic.
• General and administrative expenses: for the three months ended March 31, 2021 and 2020 were $0.9 million and $0.6 million, respectively. This $0.3 million increase compared to the same period of last year is primarily due to some one–off legal expenses and some management fees to unaffiliated third parties.
• Drydocking costs for the three months ended March 31, 2021 and 2020 were $0.6 million and $0.2 million, respectively. Drydocking expenses during the first quarter of 2021 relate to the drydocking of one vessel and to the drydocking preparation of four vessels compared to the drydocking in progress of one vessel in the same period of last year.
• Depreciation for the three months ended March 31, 2021 and 2020 was $9.5 million and $9.3 million, respectively.
• Interest and finance costs for the three months ended March 31, 2021 and 2020 were $3.1 million and $4.2 million, respectively. The $1.1 million decrease from the same period of last year is mostly due to the decline of LIBOR rates.
• Equity earnings in joint ventures for the three months ended March 31, 2021 and 2020 was a gain of $1.1 million and a gain of $0.6 million, respectively. The $0.5 million increase from the same period of last year is mainly due to the profitability of our MGC joint venture arrangement which operated for the full Q1 21’ compared to approximately one month during Q1 20’.
• As a result of the above, for the three months ended March 31, 2021, the Company reported net income of $0.8 million, compared to net income of $3.0 million for the three months ended March 31, 2020. The weighted average number of shares outstanding for the three months ended March 31, 2021 and 2020 was 37.9 million and 39.4 million, respectively. This decrease in the number of shares is a result of our share buyback program and the tender offer that was completed in April 2020.
• Earnings per share, basic and diluted, for the three months ended March 31, 2021 amounted to $0.02 compared to earnings per share of $0.08 for the same period of last year.
• Adjusted net income was $0.6 million or $0.02 per share for the three months ended March 31, 2021 compared to adjusted net income of $3.1 million or $0.08 per share for the same period of last year.
• EBITDA for the three months ended March 31, 2021 amounted to $13.4 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
• An average of 41.6 vessels were owned by the Company during the three months ended March 31, 2021 compared to 41.0 vessels for the same period of 2020.

Fleet Update Since Previous Announcement

The Company announced the conclusion of the following chartering arrangements:  

• A one year time charter extension for its 2009 built product tanker the Falcon Mayram, to a Tanker Operator until September 2022.
• A one year time charter for its 2008 built product tanker the Magic Wand, to a National Oil Company until March 2022.
• A one year time charter extension for its 2015 built LPG carrier the Eco Universe, to an Oil Major until February 2022.
• A six months time charter extension for its 2007 built LPG carrier the Gas Flawless, to an International LPG Trader until December 2021.
• A six m

FAQ

What were StealthGas's revenues for Q1 2021?

StealthGas reported voyage revenues of $37.4 million for Q1 2021, an increase of $3.0 million or 8.7% year-over-year.

How much did StealthGas earn in net income during Q1 2021?

The company reported a net income of $0.8 million for Q1 2021, down from $3.0 million in the same period last year.

What is the current fleet utilization rate of StealthGas?

The fleet utilization rate for StealthGas was 98.7% in Q1 2021.

How many fleet days are secured on period charters for StealthGas?

StealthGas secured 61% of fleet days on period charters for the remainder of 2021.

What was the EBITDA for StealthGas in Q1 2021?

StealthGas reported an EBITDA of $13.4 million for Q1 2021, compared to $16.5 million for the same period in 2020.