StealthGas, Inc. (NASDAQ: GASS) Q1 2025 Earnings Call | 05/28/2025

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StealthGas Inc. Q1 2025 Earnings Summary

StealthGas Inc. announced strong results for the first quarter of 2025, demonstrating resilience in a volatile market. The company is nearing complete deleveraging, significantly reducing its debt and maintaining a healthy cash balance.

Financial Highlights:

Revenue: Generated $42 million in Q1 2025, a slight increase from $41.6 million in Q1 2024.
Adjusted Net Income: $16.1 million, similar to Q4 2024 but lower than Q1 2024 due to increased expenses.
Adjusted Earnings Per Share: $0.44 for the quarter.
Debt Reduction: Reduced debt by $54 million in 2025, bringing the current debt level to approximately $30 million. The company is now net debt-free, with 27 out of 28 vessels in its fully-owned fleet being debt-free.
Cash Balance: Free cash balance is more than double the current debt level.
Share Repurchase Program: Spent approximately $1.8 million on share buybacks since March 2025, totaling over $21.2 million since June 2023, seeing it as a sound use of liquidity given the stock's discount to net asset value.

Operational Highlights:

Fleet Coverage: Maintained high period coverage, with 70% of fleet days secured for 2025, representing over $165 million in future revenues.
Fleet Activity: One joint venture vessel was sold in Q1, and another (Gas Cerberus) is expected to be delivered to a buyer in June.
Joint Venture Acquisitions: Entered an agreement to acquire partners' shares in two vessels (Gas Haralambos and Echa Lucidity), which will increase the fully-owned fleet by one net vessel to 29. This agreement is expected to conclude in June.
Dry Docking: One vessel entered dry dock in late March, with three more scheduled for the remainder of the year.
Geographic Focus: Over 55% of the fleet operates west of Suez (Europe), where demand for well-maintained vessels is high due to strict regulations.
Ammonia Trades: Increasing engagement in ammonia trades with HANDIS and MGC vessels, seeing great potential in this area.

Market Outlook:

LPG Exports: Global LPG exports are on an upward trend, with the U.S. showing solid growth.
Capacity Additions: Planned capacity additions in the U.S. will further increase export volumes.
Middle Eastern Exports: Traditional exporters like Saudi Arabia, Qatar, and UAE are looking to strengthen their exports, with potential increases due to OPEC's decision to gradually lift oil production cuts.
Asian Imports: China and India increased their LPG imports in Q1.
Trade Tensions: While geopolitical tensions initially impacted trade, a de-escalation has led to normalizing flows. The company believes this may lead to diversifying sources and new trade routes.
Shipping Market: The small pressurized ship market (majority of StealthGas fleet) saw firm spot rates in Northwest Europe. The handy-sized order book remains slim, supporting the period market. The MGC market softened but may improve with a volatile VLGC market seeing recent highs.
Fleet Age: The pressurized fleet is aging, with over 30% of vessels older than 20 years, indicating a future need for replenishment despite owners holding onto older vessels.

About this video

StealthGas, Inc. (NASDAQ: GASS) reported its Q1 2025 results on May 28, 2025, achieving total revenue of $42.03 million, a slight increase from $41.56 million in the same period last year, despite ongoing market headwinds in the liquefied petroleum gas (LPG) shipping sector. Net income for the quarter was $14.1 million, down from $17.7 million a year earlier, with basic earnings per share (EPS) of $0.38 compared to $0.49 in Q1 2024. Adjusted net income stood at $16.1 million, or $0.44 per share, reflecting increased operating and voyage expenses primarily due to higher crew and maintenance costs and greater spot market exposure. The company highlighted its robust financial position, having repaid $54 million in debt year-to-date, leaving only $30 million outstanding and making StealthGas effectively net debt-free. As of quarter-end, 27 out of 28 vessels were unencumbered, and the company maintained $77.1 million in cash reserves, supporting ongoing share repurchases totaling $1.8 million since March and $21.2 million since June 2023. Operating expenses rose by 17%, and the company recorded a $0.5 million impairment on the vessel Gas Cerberus, contributing to the year-over-year net income decline. Strategically, StealthGas secured 70% of its 2025 fleet days on period charters, generating over $165 million in contracted future revenues and maintaining high earnings visibility for the year. The company continues to focus on fleet renewal and diversification, with management optimistic about the fundamentals of the LPG shipping market, citing steady global LPG export growth and opportunities in ammonia trades. Despite softer spot market conditions and increased costs, StealthGas remains committed to returning value to shareholders through buybacks and prudent financial management. Outlook: FY2025: Over 70% of fleet days secured on period charters, supporting $165 million+ in contracted revenue. Continued focus on maintaining a net debt-free balance sheet, optimizing fleet employment, and returning capital to shareholders through share repurchases. Management expects improved trade flows and market sentiment as the year progresses, with a strategic emphasis on Western markets and fleet modernization. About Inside Ticker: For more expert analysis and real-time updates on StealthGas, Inc. (NASDAQ: GASS) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #StealthGas #GASS #EarningsCall #Q12025 #LPGShipping #DebtReduction #FleetExpansion #RevenueGrowth #StockMarket #InsideTicker

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AI-Powered Financial Analysis This analysis uses real-time market data. While we strive for accuracy, always verify important financial information and consult with qualified financial professionals before making investment decisions. Past performance does not guarantee future results.