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StealthGas(GASS) - 2024 Q3 - Earnings Call Transcript
GASSStealthGas(GASS)2024-11-26 01:54

Financial Data and Key Metrics Changes - Revenues for Q3 2024 were 40.4million,down340.4 million, down 3% from the previous quarter but up 17% year-over-year [6] - Adjusted net income for Q3 was 14.2 million, an 18% increase from 12millioninthesamequarterlastyear[6][32]−Adjustedearningspersharewere12 million in the same quarter last year [6][32] - Adjusted earnings per share were 0.38 for the quarter, a 23% increase, and 1.67forthenine−monthperiod,markinga611.67 for the nine-month period, marking a 61% increase [7][33] - The company reduced its total debt to below 100 million for the first time, with total debt at 86.4millioncomparedtocashof86.4 million compared to cash of 77.4 million [8][39][65] Business Line Data and Key Metrics Changes - Net revenues after voyage expenses for Q3 were 37.5million,a1637.5 million, a 16% increase, attributed to rechartering vessels at higher rates and the addition of larger vessels [27] - Operating expenses remained stable at 12.3 million for the quarter, with a 10% decrease for the nine-month period [28] - Dry-docking expenses for Q3 were 2.9millionduetofourvesselsundergoingdry−dock,impactingoverallprofitability[29][30]MarketDataandKeyMetricsChanges−GlobalLPGexportsincreasedby5.52.9 million due to four vessels undergoing dry-dock, impacting overall profitability [29][30] Market Data and Key Metrics Changes - Global LPG exports increased by 5.5% in the first nine months of 2024, with US propane exports growing by 12% year-over-year [43] - The LPG shipping market saw a divergence between East and West, with the West maintaining firm rates while the East experienced slower activity [53][55] - The order book for handysize vessels remains healthy, supporting period market rates going into the next year [60] Company Strategy and Development Direction - The company is focused on deleveraging and optimizing cash generation, having made 108 million in debt repayments [8][40] - The fleet strategy includes diversifying and renewing, with recent sales and acquisitions of vessels [9][10] - The company aims to secure 65% of contracted days for 2025, amounting to approximately 100millioninrevenue[12][64]ManagementCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedconfidenceinachievinganotherrecordyear,despiteaheavydry−dockscheduleimpactingfleetutilization[63]−ThecompanyanticipatescontinuedhigherratesintheWestduetoashortageofwell−maintainedvessels[17]−Theimpactofgeopoliticalevents,suchastheHouthiattacksintheRedSea,isexpectedtoinfluencetraderoutesanddemanddynamics[19]OtherImportantInformation−Thecompanyhaseliminatedrefinancingrisk,withonly100 million in revenue [12][64] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another record year, despite a heavy dry-dock schedule impacting fleet utilization [63] - The company anticipates continued higher rates in the West due to a shortage of well-maintained vessels [17] - The impact of geopolitical events, such as the Houthi attacks in the Red Sea, is expected to influence trade routes and demand dynamics [19] Other Important Information - The company has eliminated refinancing risk, with only 115 million due at the end of 2025 [42] - The book value of investments in joint ventures was $30.9 million, with expectations of further reductions [36][22] Q&A Session Summary - No specific questions or answers were recorded in the provided content [69]