StealthGas(GASS) - 2025 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported record revenues of $47.2 million for Q2 2025, a 13% increase year-on-year compared to $41.8 million in Q2 2024 [3][16] - Adjusted net income for Q2 2025 was $21.7 million, a 35% increase from the previous quarter but a 20% decrease from the same quarter last year [4][18] - Earnings per share on an adjusted basis were $0.59 for the quarter, marking the second most profitable quarter in the company's history [4][19] - Total debt was reduced to €32 million, with all vessels in the fully owned fleet now debt-free following the final repayment in July [5][20] Business Line Data and Key Metrics Changes - The company maintained a high period coverage of over 70% of fleet days for 2025, securing approximately $150 million in future revenues [5][11] - Operating expenses for Q2 were €12.7 million, reflecting a mere 1.5% increase from last year [16] - Earnings from investments in joint ventures were only $700,000 for the quarter, a significant decrease due to fewer vessels and the absence of a large dividend from vessel sales as seen in the previous year [17][18] Market Data and Key Metrics Changes - Global LPG exports grew by 6.6% in the first half of 2025, with U.S. exports continuing to increase year-on-year [22] - China's LPG imports in May 2025 climbed to 3.4 million tons, a 6.7% increase [24] - The shipping market remains stable, with firm rates in Europe, although there was a slight drop in activity typical of seasonal trends [26] Company Strategy and Development Direction - The company has successfully completed its strategic objective of deleveraging, repaying $86 million in debt this year and nearly $350 million since early 2023 [5][30] - The company is focusing on maintaining a visible revenue stream and is looking for opportunities to sell older vessels while potentially replacing them with newer ones [6][12] - The fleet's geographical focus has shifted, with over 70% now trading in Europe and the Mediterranean due to better rates compared to Asia [12][13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the market due to trade frictions but noted that the fundamentals for LPG shipping remain positive [22][30] - The company expects chartering activity to pick up in the fourth quarter as it exits the seasonally weaker summer months [31] - The incident involving the Echo Wizard vessel is expected to impact revenue generation in the near future, but management is committed to resolving the situation swiftly [29] Other Important Information - The company completed the acquisition of shares in two vessels previously owned through a joint venture [6] - The Echo Wizard vessel sustained damage from explosions but is expected to undergo temporary repairs and return to operations within a month [9][10] Q&A Session Summary Question: What impact will the Echo Wizard incident have on revenue? - Management indicated that the Echo Wizard incident will keep the vessel out of employment for some time, impacting revenue generation in the near future [29] Question: How is the company positioned in the LPG market? - Management expressed confidence in the company's favorable position to take advantage of rising demand in the LPG shipping sector, despite current market uncertainties [30][31]