In This Article:
Release Date: November 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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StealthGas Inc (NASDAQ:GASS) reported the most profitable nine months ever, with adjusted net income for the first three quarters reaching a record $61 million.
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Revenues for the third quarter were $40.4 million, a 17% increase compared to the same period last year.
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The company has significantly reduced its debt, with repayments totaling $108 million, bringing the debt below $100 million for the first time.
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StealthGas Inc (NASDAQ:GASS) has secured 65% of its contracted days for 2025, ensuring approximately $100 million in revenues.
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The company has a strong liquidity position with $77.4 million in cash, close to being net debt-free.
Negative Points
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Revenues for the third quarter were slightly down by 3% compared to the previous quarter.
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The company faced a heavy dry-docking schedule, which impacted operational utilization and net revenues.
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Net income for the third quarter decreased by 23% compared to the same quarter last year.
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There was an increase of $1 million in general and administrative costs due to stock-based compensation expenses.
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The LPG demand in Europe remains flat, which could impact future revenue growth.
Q & A Highlights
Q: Can you provide more details on the company's strategy for fleet renewal and diversification? A: Harry Vafias, CEO, explained that the strategy involves conservatively diversifying and renewing the fleet. This includes the sale of two smaller LPGs and the acquisition of two medium gas carriers earlier in the year. The company is actively seeking opportunities in the sale and purchase market, with plans to sell one smaller vessel by early 2025 and take over a second jointly owned vessel.
Q: How has the company's financial performance been impacted by recent market conditions? A: Konstantinos Sistovaris, CFO, noted that despite a seasonally weaker summer, the company reported its most profitable nine months ever. Revenues increased by 17% year-over-year, and adjusted net income for the third quarter rose by 18% compared to last year. The company is on track for a record year, with strong liquidity and reduced debt levels.
Q: What is the current status of the company's debt and cash flow management? A: Konstantinos Sistovaris, CFO, highlighted that the company has significantly reduced its debt, with total debt now below $100 million for the first time. The debt cash flow amortization has been reduced, allowing for faster cash flow accumulation. The company is close to being net debt-free, with strong cash reserves.