STEALTHGAS INC. Reports Third Quarter and Nine Months 2020 Financial and Operating Results

Rhea-AI Summary

STEALTHGAS INC. (NASDAQ: GASS) reported its Q3 2020 results, highlighting significant operational metrics. The fleet utilization reached 96.9%, with a slight increase in voyage revenues to $37.1 million. Net income stood at $0.8 million with an EPS of $0.02. The company showed low gearing, with debt to assets at 36.5%, and total cash of $42.0 million as of September 30, 2020. Notably, 68% of fleet days are secured on period charters, ensuring approximately $80 million in contracted revenues. However, a 1.3% decrease in nine-month revenues signals potential concerns moving forward.

Positive

• Fleet utilization at 96.9%, showcasing high operational efficiency.
• Voyage revenues increased to $37.1 million, up 1.4% year-over-year.
• Net income improved to $0.8 million, indicating a recovery from losses last year.
• Low gearing with debt to assets at 36.5%, reflecting financial stability.
• Total cash of $42.0 million, bolstering liquidity.
• 68% of fleet days secured on period charters, translating to $80 million in revenues.

Negative

• Nine-month revenues decreased by 1.3% to $107.7 million, indicating a potential decline in overall business activity.
• Operating expenses increased by 12.2% year over year, driven by higher crew costs and changes in vessel charters.
• Impairment loss of $2.5 million on the LPG vessel 'Gas Nemesis II'.

ATHENS, Greece, Nov. 25, 2020 (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 third quarter and nine months ended September 30, 2020.

OPERATIONAL AND FINANCIAL HIGHLIGHTS¹

• Fleet utilization of 96.9% - with 114 days of technical off hire, as a result of five drydockings – all completed within Q3 ‘20.
• Fleet operational utilization of 96.0%, mainly due to 10 of our ships being in the spot market - equivalent to 21.4% of voyage days.
• Fleet calendar days down by 4.4% year over year to 3,865 - attributed mostly to the decrease in the number of operating vessels.
• About 68% of fleet days secured on period charters for the remainder of 2020, with total fleet employment days for all subsequent periods representing approximately $80 million in contracted revenues. Period coverage for 2021 is currently 33%.
• Delivery of  a 7,500 cbm newbuilding LPG vessel, the Eco Alice, on September 30, 2020.
• Sale of our LPG vessel the Gas Nemesis II (2001 built), on November 2, 2020 for further trading.
• Voyage revenues of $37.1 million in Q3 ’20, an increase of $0.5 million compared to Q3 ’19 mostly due to increased revenues from our LPG and Aframax time charters.
• Net Income of $0.8 million for Q3 ‘20 corresponding to an EPS of $0.02.
• EBITDA of $13.3 million for Q3 ‘20 compared to $14.1 million in Q3 ’19.
• Adjusted EBITDA of $15.8 million in Q3 ‘20 compared to $14.7 million in Q3 ’19.
• Low gearing, as debt to assets stands at 36.5% and year over year reduction in finance costs by $2.0 million.
• Total cash of $42.0 million as of September 30, 2020 – following the all cash delivery payment for the Eco Alice. Related loan drawdown took place in the beginning of October 2020 thus increasing our cash base.
• Adjusted Net Income of $3.2 million for Q3 ‘20 corresponding to an Adjusted EPS of $0.08.

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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.

Third Quarter 2020 Results:

• Revenues for the three months ended September 30, 2020 amounted to $37.1 million, an increase of $0.5 million, or 1.4%, compared to revenues of $36.6 million for the three months ended September 30, 2019, following an increase of our time charter revenue stemming from small LPGs, our 22,000 semi–refrigerated LPG vessels and our aframax tanker.
• Voyage expenses and vessels’ operating expenses for the three months ended September 30, 2020 were $3.8 million and $13.8 million, respectively, compared to $4.9 million and $12.3 million, respectively, for the three months ended September 30, 2019. The $1.1 million decrease in voyage expenses, in spite of our higher exposure in the spot market, was mainly attributed to the decline of bunker costs by 20%. The 12.2% increase in vessels’ operating expenses compared to the same period of 2019, is a result of two of our vessels, a small LPG and our aframax tanker, coming off bareboat as well as increased crew costs faced due to the COVID-19 pandemic.
• Drydocking costs for the three months ended September 30, 2020 and 2019 were $2.3 million and $0.5 million, respectively. Drydocking expenses during the third quarter of 2020 relate to the drydocking of five vessels compared to the drydocking of one vessel in the same period of last year.
• General and Administrative expenses for the three months ended September 30, 2020 amounted to $0.6 million compared to $1.1 million for the same period of last year. This decrease is mainly attributed to the fact that for the three months ended September 30, 2019 share based compensation expense was incurred, which was not the case for the three months ended September 30, 2020 since all the shares awarded under our equity compensation plan vested in August 2019.
• Depreciation for each of the three months ended September 30, 2020 and 2019 was $9.4 million.
• Impairment loss for the three months ended September 30, 2020 was $2.5 million relating to the LPG vessel Gas Nemesis II for which the Company entered into an agreement to sell subsequent to September 30, 2020. No such loss was recorded in the same period of last year.
• Interest and finance costs for the three months ended September 30, 2020 and 2019 were $3.1 million and $5.1 million, respectively. The $2.0 million decrease from the same period of last year is mostly due to the decline of LIBOR rates and the decrease of our indebtedness.
• Equity income/(loss) in joint ventures for the three months ended September 30, 2020 and 2019 was income of $0.6 million and loss of $0.2 million, respectively. The $0.8 million increase from the same period of last year, is mainly due to the profitability of the three secondhand (2010 built) 35,000 cbm medium gas carriers which operate under a joint venture arrangement since Q1 ‘20.
• As a result of the above, for the three months ended September 30, 2020, the Company reported Net income of $0.8 million, compared to a net loss of $0.2 million for the three months ended September 30, 2019. The weighted average number of shares for the three months ended September 30, 2020 and 2019 was 37.9 million and 39.8 million, respectively. This decrease in the number of shares is as a result of our share buyback program and the tender offer during April 2020.
• Earnings per share, basic and diluted, for the three months ended September 30, 2020 amounted to $0.02 compared to loss per share of $0.01 for the same period of last year.
• Adjusted net income was $3.2 million or $0.08 per share for the three months ended September 30, 2020 compared to adjusted net income of $0.4 million or $0.01 per share for the same period of last year.
• EBITDA for the three months ended September 30, 2020 amounted to $13.3 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net (Loss)/Income are set forth below.
• An average of 42 vessels were owned by the Company during the three months ended September 30, 2020 and 2019.

Nine Months 2020 Results:

• Revenues for the nine months ended September 30, 2020 amounted to $107.7 million, a decrease of $1.4 million, or 1.3%, compared to revenues of $109.1 million for the nine months ended September 30, 2019, primarily due to the reduction of our calendar days by 7.7% as a result of the decrease in the average number of our owned vessels by 1.7 vessels, along with a 86.9% reduction in the calendar days of our charter-in ve

FAQ

What are the Q3 2020 results for STEALTHGAS INC. (GASS)?

In Q3 2020, STEALTHGAS reported revenues of $37.1 million and net income of $0.8 million, with an EPS of $0.02.

How did STEALTHGAS's fleet utilization perform in Q3 2020?

The fleet utilization stood at 96.9%, reflecting strong operational performance.

What is the total cash position of STEALTHGAS as of September 30, 2020?

STEALTHGAS reported total cash of $42.0 million as of September 30, 2020.

What percentage of fleet days are secured on period charters for STEALTHGAS?

Approximately 68% of fleet days are secured on period charters, contributing about $80 million in contracted revenues.

What was the impact of impairment loss in STEALTHGAS's Q3 results?

STEALTHGAS reported an impairment loss of $2.5 million related to the vessel 'Gas Nemesis II'.