StealthGas(US:GASS)2025-05-28 15:02Financial Data and Key Metrics Changes - The company generated $42 million in revenues during Q1 2025, compared to $41.6 million in Q1 2024 and $43.5 million in Q4 2024, indicating resilience in commercial operations [4] - Adjusted net income for Q1 2025 was $16.1 million, similar to Q4 2024 but lower than Q1 2024, primarily due to increased expenses [4] - Earnings per share on an adjusted basis were 44 cents for the quarter [4] - The company reduced debt by $54 million in 2025, bringing current debt levels close to $30 million, while maintaining a free cash balance of more than double that amount [5][24] Business Line Data and Key Metrics Changes - The company maintained period coverage for 2025 at 70% of fleet days and secured over $165 million in future revenues [6][10] - Operating expenses increased by 17% to $13.5 million, mainly due to higher crew costs and maintenance fees [18] - The company concluded three period charters during the quarter, with two extensions, leaving five vessels operating in the spot market [9] Market Data and Key Metrics Changes - The U.S. accounted for 63% of imports in Northern Europe in Q1 2025, up from 55% in the previous quarter [11] - The LPG market saw a steady upward path with global exports increasing by 4.4% in 2024, and the U.S. marked an 8% year-on-year growth for Q1 2025 [25][26] - China and India increased their LPG imports by 8% and 10% year-on-year, respectively, despite geopolitical tensions affecting trade [29] Company Strategy and Development Direction - The company is focused on deleveraging and has achieved a net debt-free status, with plans to continue accumulating cash faster [5][24] - The strategy includes diversifying and renewing the fleet, with recent agreements to acquire shares in two jointly owned vessels [7][16] - The company aims to return value to shareholders through share repurchase programs, spending approximately $1.8 million since March 2025 [5][41] Management's Comments on Operating Environment and Future Outlook - Management noted that the market is expected to pay premium rates West of Suez due to a shortage of suitable vessels in Europe [12] - The company remains cautious but confident in sustaining momentum throughout 2025, with almost every major LPG importer increasing imports [40][41] - The firm believes that the medium-term climate may lead to new trade routes, positively impacting ton-mile demand [32] Other Important Information - The company has scheduled drydockings for three vessels for the remainder of the year, indicating a light year in terms of drydockings [10] - The company has seen a significant reduction in interest costs, which are expected to be further halved in upcoming quarters [19][24] Q&A Session Summary Question: What is the outlook for the LPG market? - The company expects continued growth in global LPG exports, with the U.S. maintaining a strong position despite recent trade tensions [25][28] Question: How is the company managing its debt? - The company has successfully reduced its debt significantly and is now net debt-free, allowing for faster cash flow accumulation [24] Question: What are the company's plans for fleet expansion? - The company is looking for opportunities to sell older vessels and replace them with newer tonnage, while also acquiring shares in jointly owned vessels [7][16]