StealthGas(GASS) - 2025 Q2 - Quarterly Report

Operational and Financial Highlights This section summarizes StealthGas Inc.'s strong Q2 2025 performance, highlighting record revenues, significant debt reduction, and robust cash reserves Summary of Key Achievements StealthGas Inc. achieved record Q2 2025 revenues and operating income, significantly reduced debt to unencumber its fleet, maintained strong cash, and continued share repurchases - Revenues recorded an all-time high of $47.2 million in Q2 2025, increased by 13% compared to the same period last year, driven by improved market conditions[2] - Income from operations of $19.7 million was the highest ever recorded[2] - Repaid $53.6 million in debt during H1 2025 and a further $32.2 million in Q3 2025, resulting in all vessels in the fully owned fleet being unencumbered[2] - Maintained ample cash and cash equivalents (including restricted cash) of $87.3 million as of June 30, 2025[2] - Spent $1.8 million on share repurchases during 2025, with over $21.2 million spent under the current program since June 2023[2] Key Financial Metrics Net income for Q2 2025 increased from the prior quarter but decreased year-over-year due to a vessel sale in Q2 2024, while fleet period coverage remained high Q2 2025 Key Financial Metrics | Metric | Q2 2025 Value | | :---------------- | :------------ | | Net income | $20.4 million | | Basic EPS | $0.55 | | Revenues | $47.2 million | | Income from operations | $19.7 million | - Net income of $20.4 million in Q2 2025 was 45% higher than the previous quarter's $14.1 million, but reduced compared to the $25.8 million record achieved in Q2 2024, which was boosted by a vessel sale[2] - Approximately 70% of fleet days for 2025 are secured on period charters, with total fleet employment days for all subsequent periods generating about $155 million in contracted revenues (excluding JV vessel)[2] Second Quarter 2025 Financial Results This section analyzes StealthGas Inc.'s Q2 2025 financial performance, detailing revenue drivers, expense changes, and the impact on net income and earnings per share Income Statement Analysis Q2 2025 revenues increased due to more vessels and improved market conditions, but net income decreased year-over-year primarily from lower JV equity earnings and higher voyage expenses Q2 2025 vs Q2 2024 Income Statement Highlights | Metric | Q2 2024 ($M) | Q2 2025 ($M) | Change ($M) | Change (%) | | :-------------------------------- | :----------- | :----------- | :---------- | :--------- | | Revenues | 41.8 | 47.2 | 5.4 | 12.9% | | Voyage expenses | 2.7 | 4.4 | 1.7 | 63.0% | | Vessels' operating expenses | 12.5 | 12.7 | 0.2 | 1.6% | | General and administrative expenses | 2.4 | 2.0 | (0.4) | -16.7% | | Interest and finance costs | 2.7 | 0.6 | (2.1) | -77.8% | | Equity earnings in joint ventures | 11.5 (gain) | 0.7 (gain) | (10.8) | -93.9% | | Net Income | 25.8 | 20.4 | (5.4) | -20.9% | - Revenue increase was attributable to an increased average number of vessels (28.3 in Q2 2025 vs 27.0 in Q2 2024) and improved market conditions[5] - The $1.7 million increase in voyage expenses was mainly due to an increase in bunkers costs as a result of more spot market days for the fleet[5] - The $2.1 million decrease in interest and finance costs was primarily due to continued debt prepayments[5] - The $10.8 million decrease in equity earnings in joint ventures was primarily due to the profitable sale of one Medium Gas carrier by a joint venture in Q2 2024[5] Earnings Per Share and Adjusted Earnings Both Basic and Adjusted EPS declined in Q2 2025 compared to the prior year, reflecting the period's lower net and adjusted net income Q2 2025 vs Q2 2024 EPS and Adjusted EPS | Metric | Q2 2024 | Q2 2025 | Change | | :------------------- | :------ | :------ | :----- | | Basic EPS | $0.70 | $0.55 | -$0.15 | | Adjusted EPS | $0.75 | $0.59 | -$0.16 | - Adjusted net income for Q2 2025 was $21.7 million, down from $27.5 million in Q2 2024[5] Six Months 2025 Financial Results This section reviews StealthGas Inc.'s financial performance for the first six months of 2025, highlighting revenue growth, expense increases, and the factors affecting net income Income Statement Analysis H1 2025 revenues increased due to more vessels and better market conditions, but net income decreased from lower JV equity earnings, higher expenses, and an impairment loss H1 2025 vs H1 2024 Income Statement Highlights | Metric | H1 2024 ($M) | H1 2025 ($M) | Change ($M) | Change (%) | | :-------------------------------- | :----------- | :----------- | :---------- | :--------- | | Revenues | 83.4 | 89.3 | 5.9 | 7.1% | | Voyage expenses | 5.5 | 9.5 | 4.0 | 72.7% | | Vessels' operating expenses | 24.0 | 26.2 | 2.2 | 9.2% | | Drydocking costs | 0.6 | 1.0 | 0.4 | 66.7% | | Impairment loss | — | 0.5 | 0.5 | N/A | | Net (gain)/loss on sale of vessels | 0.04 (gain) | 0.1 (loss) | (0.14) | N/A | | Interest and finance costs | 5.9 | 2.0 | (3.9) | -66.1% | | Equity earnings in joint ventures | 14.1 (gain) | 2.9 (gain) | (11.2) | -79.4% | | Net Income | 43.5 | 34.5 | (9.0) | -20.7% | - Revenue increase was attributable to an increased average number of vessels (28.1 in H1 2025 vs 27.0 in H1 2024) and improved market conditions[5] - The $4.0 million increase in voyage expenses was mainly due to an increase in port expenses and bunkers costs from increased spot market days[5] - An impairment loss of $0.5 million was recognized in Q1 2025 due to the agreed sale terms for the vessel Gas Cerberus[7] - The $3.9 million decrease in interest and finance costs was primarily due to continued debt prepayments[7] - The $11.2 million decrease in equity earnings in joint ventures was primarily due to the profitable sale of one Medium Gas carrier by a joint venture in H1 2024[7] Earnings Per Share and Adjusted Earnings Basic and Adjusted EPS both decreased for H1 2025, reflecting the overall decline in net income and adjusted net income compared to the prior year H1 2025 vs H1 2024 EPS and Adjusted EPS | Metric | H1 2024 | H1 2025 | Change | | :------------------- | :------ | :------ | :----- | | Basic EPS | $1.20 | $0.93 | -$0.27 | | Adjusted EPS | $1.28 | $1.02 | -$0.26 | - Adjusted net income for H1 2025 was $37.9 million, down from $46.7 million in H1 2024[7] Fleet Operations and Developments This section details StealthGas Inc.'s fleet changes, operational metrics, recent chartering activities, vessel sales, and the impact of a significant operational incident Fleet Data Overview The company's fleet expanded in terms of average and period-end vessel count, leading to increased calendar and voyage days, while operational utilization slightly decreased Fleet Data: Q2 and 6M 2025 vs 2024 | FLEET DATA | Q2 2024 | Q2 2025 | 6M 2024 | 6M 2025 | | :-------------------------- | :------ | :------ | :------ | :------ | | Average number of vessels | 27.0 | 28.3 | 27.0 | 28.1 | | Period end number of owned vessels in fleet | 27 | 29 | 27 | 29 | | Total calendar days for fleet | 2,457 | 2,572 | 4,918 | 5,090 | | Total voyage days for fleet | 2,411 | 2,563 | 4,850 | 5,063 | | Fleet utilization | 98.1% | 99.7% | 98.6% | 99.5% | | Total charter days for fleet | 2,173 | 2,171 | 4,405 | 4,289 | | Total spot market days for fleet | 238 | 392 | 445 | 774 | | Fleet operational utilization | 96.3% | 94.7% | 97.0% | 94.4% | Recent Chartering Arrangements StealthGas Inc. secured multiple time charter extensions for its LPG carriers, including Eco Blizzard, Eco Galaxy, and Eco Royalty, extending employment into 2026, and arranged a new charter for Eco Sorcerer - Twelve-month time charter extension for Eco Blizzard (2021 built LPG carrier) until October 2026[7] - Twelve-month time charter extension for Eco Galaxy (2015 built LPG carrier) until September 2026[7] - Twelve-month time charter extension for Eco Royalty (2015 built LPG carrier) until September 2026, with a charterer's option for a further twelve months[7] - Three-month time charter for Gas Astrid (2009 built LPG carrier) until August 2025[7] - Twelve-month time charter for the JV owned Eco Sorcerer (2023 built LPG carrier) until August 2026, with a charterer's option for a further twelve months[7] Vessel Sales, Acquisitions, and Fleet Composition The company completed one vessel sale, repurchased shares in two others to increase its fully owned fleet to 29 vessels, and announced the sale of another debt-free vessel - The sale of the vessel Gas Cerberus was completed in June 2025[9] - Repurchased the remaining shares in Eco Lucidity and Gas Haralambos from a joint venture partner, consolidating them into the Company's fully owned fleet[9] - The fully owned fleet increased to 29 vessels, with one vessel continuing to be owned through a joint venture[9] - Entered into an agreement in July 2025 to sell the debt-free vessel Gas Elixir, with delivery expected between September and November 2025, contributing full proceeds to liquidity[10] Significant Operational Incidents The LPG tanker ECO WIZARD sustained damage from external explosions while loading cargo in Russia, leading to its temporary off-hire status and expected impact on future revenue - In July 2025, the LPG tanker ECO WIZARD sustained damage to its engine room and one cargo tank due to two external explosions while loading ammonia cargo in Ust-Luga, Russia[11] - No crew members were injured, and the vessel remains stable, currently at port for investigation and temporary repairs, with departure expected in September[11] - The vessel will remain off-hire and will not generate revenue until fully repaired; it generated approximately 8% of the Company's revenues during the first six months of 2025[11] Contracted Revenues and Fleet Coverage As of August 2025, StealthGas Inc. has secured a substantial portion of its fleet days for the remainder of the year under period contracts, ensuring a solid base of contracted revenues - Total contracted revenues as of August 2025 are approximately $155 million (excluding the JV vessel)[8] - For the remainder of 2025, approximately 70% of fleet days are secured under period contracts, with contracted revenues of about $48 million (excluding the JV vessel)[8] Management Commentary and Outlook This section presents CEO Harry Vafias's commentary on market conditions, Q2 performance, deleveraging strategy, the ECO WIZARD incident, and the positive outlook for LPG shipping CEO Harry Vafias Commented CEO Harry Vafias highlighted improved market sentiment and record Q2 revenues, emphasizing the completion of the company's deleveraging strategy, which has made all 29 fully owned vessels debt-free - Market sentiment has improved considerably after a tumultuous start to the year, leading to very solid second-quarter results[12] - Q2 revenues exceeded expectations, setting a new quarterly record at $47.2 million[12] - Completed deleveraging in Q3, having repaid $86 million in debt this year and close to $350 million since early 2023, resulting in all 29 fully owned vessels being debt-free[12] - The unfortunate incident with the Eco Wizard will impact revenue generation for the near future, but resources are committed to a swift resolution[12] - Confident that the fundamentals for LPG shipping remain positive, and the company is well-positioned to take advantage of rising demand[12] - Expects chartering activity to pick up in the fourth quarter as the seasonally weaker summer months conclude[12] Non-GAAP Financial Measures Reconciliation This section provides definitions and reconciliation tables for non-GAAP financial measures, offering a comparable basis for assessing StealthGas Inc.'s financial and operating performance Definitions and Rationale This section defines non-GAAP financial measures such as Adjusted Net Income, EBITDA, Adjusted EBITDA, and Adjusted EPS, used by management and investors to assess financial performance - Adjusted Net Income represents net income before loss/gain on derivatives (excluding swap interest paid/received), impairment loss, net gain/loss on sale of vessels, and share-based compensation[22] - EBITDA represents net income before interest and finance costs, interest income, and depreciation[22] - Adjusted EBITDA represents net income before interest and finance costs, interest income, depreciation, impairment loss, net gain/loss on sale of vessels, share-based compensation, and loss/gain on derivatives[22] - Adjusted EPS represents Adjusted net income divided by the weighted average number of shares[24] - These non-GAAP measures are included to provide a comparable basis for assessing financial performance and better evaluating operating performance, but are not recognized under U.S. GAAP and may not be comparable to other companies[24][25] Reconciliation Tables Detailed reconciliation tables bridge GAAP net income and EPS to their respective non-GAAP adjusted counterparts for Q2 and H1 periods ended June 30, 2025 and 2024 Reconciliation of Net Income to Adjusted Net Income, EBITDA, and Adjusted EBITDA | (Expressed in United States Dollars) | Q2 2024 | Q2 2025 | 6M 2024 | 6M 2025 | | :----------------------------------- | :---------- | :---------- | :---------- | :---------- | | Net income | 25,788,509 | 20,437,326 | 43,518,225 | 34,545,006 | | Adjusted Net Income | 27,546,563 | 21,718,766 | 46,684,145 | 37,855,248 | | EBITDA | 34,051,288 | 26,917,038 | 60,689,045 | 48,341,312 | | Adjusted EBITDA | 35,809,342 | 28,198,478 | 63,646,838 | 51,651,554 | Reconciliation of EPS to Adjusted EPS | (Expressed in United States Dollars) | Q2 2024 | Q2 2025 | 6M 2024 | 6M 2025 | | :----------------------------------- | :------ | :------ | :------ | :------ | | EPS — Basic | 0.70 | 0.55 | 1.20 | 0.93 | | Adjusted EPS — Basic | 0.75 | 0.59 | 1.28 | 1.02 | Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements, including statements of income, balance sheets, and cash flows, for the specified periods Condensed Consolidated Statements of Income The unaudited condensed consolidated statements of income provide a detailed breakdown of revenues, expenses, and net income for the second quarter and six-month periods ended June 30, 2025 and 2024 Unaudited Condensed Consolidated Statements of Income | | Quarters Ended June 30, | | Six Month Periods Ended June 30, | | | :----------------------------------- | :----------- | :----------- | :----------- | :----------- | | | 2024 | 2025 | 2024 | 2025 | | Revenues | 41,786,154 | 47,234,265 | 83,350,062 | 89,260,252 | | Total expenses | 25,686,276 | 27,537,238 | 49,735,146 | 56,940,259 | | Income from operations | 16,099,878 | 19,697,027 | 33,614,916 | 32,319,993 | | Net Income | 25,788,509 | 20,437,326 | 43,518,225 | 34,545,006 | | Earnings per share - Basic | 0.70 | 0.55 | 1.20 | 0.93 | | Weighted average number of shares - Basic | 35,241,126 | 35,808,017 | 35,180,313 | 35,767,096 | Condensed Consolidated Balance Sheets The unaudited condensed consolidated balance sheets present the company's financial position, including assets, liabilities, and stockholders' equity, as of December 31, 2024, and June 30, 2025 Unaudited Condensed Consolidated Balance Sheets | | December 31, 2024 | June 30, 2025 | | :----------------------------------- | :---------------- | :-------------- | | Total current assets | 92,070,405 | 96,899,964 | | Total non current assets | 640,169,459 | 620,432,290 | | Total assets | 732,239,864 | 717,332,254 | | Total current liabilities | 43,943,632 | 25,059,906 | | Total non current liabilities | 61,769,418 | 30,035,397 | | Total liabilities | 105,713,050 | 55,095,303 | | Total stockholders' equity | 626,526,814 | 662,236,951 | | Total liabilities and stockholders' equity | 732,239,864 | 717,332,254 | Condensed Consolidated Statements of Cash Flows The unaudited condensed consolidated statements of cash flows detail the cash generated from or used in operating, investing, and financing activities for the six-month periods ended June 30, 2025 and 2024 Unaudited Condensed Consolidated Statements of Cash Flows | | Six Month Periods Ended June 30, | | | :----------------------------------- | :----------- | :----------- | | | 2024 | 2025 | | Net cash provided by operating activities | 67,950,898 | 54,042,143 | | Net cash (used in)/provided by investing activities | (59,694,245) | 3,827,744 | | Net cash used in financing activities | (15,363,058) | (55,043,427) | | Net (decrease)/increase in cash, cash equivalents and restricted cash | (7,106,405) | 2,826,460 | | Cash, cash equivalents and restricted cash at end of period | 76,649,296 | 87,347,610 | Corporate Information This section provides an overview of StealthGas Inc., its business in the LPG shipping sector, details on forward-looking statements, and information regarding the upcoming conference call About StealthGas Inc. StealthGas Inc. is a ship-owning company specializing in the liquefied petroleum gas (LPG) sector of the international shipping industry, operating a fleet of 30 LPG carriers and listed on Nasdaq - StealthGas Inc. is a ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry[16] - Operates a fleet of 30 LPG carriers, including one Joint Venture vessel, with a total capacity of 344,152 cubic meters (cbm)[16] - Shares are listed on the Nasdaq Global Select Market under the symbol "GASS"[16] Forward-Looking Statements This section contains forward-looking statements regarding future events and financial performance, which are subject to significant uncertainties and contingencies that could cause actual results to differ - Forward-looking statements reflect current views on future events and financial performance, including plans, objectives, goals, strategies, and underlying assumptions[17] - These statements are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond the company's control[17] - Important factors that could cause actual results to differ include world economies, geopolitical conditions (e.g., conflicts in Ukraine, Israel and Gaza, Red Sea attacks), market conditions (charter rates, vessel values), operating expenses, financing ability, the ECO WIZARD incident, regulatory actions, and litigation[17] - Risks and uncertainties are further described in reports filed with the U.S. Securities and Exchange Commission[18] Conference Call Details StealthGas Inc. will host a conference call on August 28, 2025, to discuss its financial and operating results and outlook, requiring pre-registration for participants - A conference call will be held on August 28, 2025, at 10:00 am ET, for management to discuss results, operations, and outlook[13] - Participants must pre-register to receive dial-in numbers and a personal PIN[13] - A live and archived webcast of the conference call will be available through the STEALTHGAS INC. website (**www.stealthgas.com**)[15](index=15&type=chunk)