StealthGas(GASS) - 2024 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported record net income of $25.8 million for Q2 2024, a 146% increase from$ 10.5 million in Q2 2023, with earnings per share rising to $0.70, marking a 159% increase [5][17] - Voyage revenues increased to$ 41.8 million, a 14% year-over-year increase, while net revenues for the quarter were $39.1 million, an 18% increase [5][13] - Operating expenses decreased by 7% to$ 12.5 million for the quarter, contributing to a 60% increase in income from operations to $16.1 million [14][15] Business Line Data and Key Metrics Changes - The company sold two smaller vessels and received two new medium gas carriers, maintaining a focus on chartering with 55% of fleet days contracted for 2025 [4][6] - Contracted revenues for future periods exceeded$ 220 million, with 85% of fleet days secured for 2024 [8][31] Market Data and Key Metrics Changes - LPG exports from the U.S. increased by 11% in the first half of 2024, while Middle East exports remained flat due to OPEC production cuts [22][23] - Seaborne import volumes in China rose by 11% year-on-year, indicating strong demand, while India is expected to grow its LPG demand alongside economic growth [23][24] Company Strategy and Development Direction - The company is focused on debt reduction, having prepaid $107 million in debt and maintaining a net debt ratio below 5% [6][20][31] - The strategy includes securing long-term charters to stabilize cash flow, with all vessels currently fixed and a significant portion of future revenues contracted [8][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the LPG market, anticipating increased activity during the winter months due to rising heating demand [30] - The company remains cautious about potential oversupply in the medium-sized ship segment but sees strong fundamentals in the Handy Size segment due to a limited order book [28][29] Other Important Information - The book value of the company's investments in joint ventures decreased to$ 30 million due to the sale of a medium gas carrier [9][18] - The company has eliminated refinancing risk with only a $15 million balloon payment due at the end of 2025 [21] Summary of Q&A Session Questions and Answers - There was no Q&A session following the conference call, as indicated in the records [33]