StealthGas(GASS) - 2024 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported record quarterly profits for Q1 2024, with net voyage revenues increasing to $38.7 million, a 14% year-over-year increase and a 26% increase compared to the previous quarter [4][7] - Net income for Q1 2024 was$ 17.7 million, a 5% increase from $16.8 million in the same quarter last year, marking the highest quarterly profit ever recorded by the company [4][8] - Earnings per share were reported at$ 0.49, with an adjusted basis of $0.53, benefiting from a reduced share count due to share buybacks [4][8] - Total debt increased by$ 37.1 million to $160.6 million, primarily due to a$ 70 million loan drawn down for financing [15] Business Line Data and Key Metrics Changes - The company sold two smaller vessels and took delivery of two new medium gas carriers during the first quarter, maintaining a focus on enhancing fleet capacity [11] - Contracted revenues for 2024 reached over $180 million, with 73% of fleet days covered by contracts, indicating a strong focus on securing period charters [11][12] Market Data and Key Metrics Changes - LPG exports increased by 4.3% in 2023, with a 5% increase in the first quarter of 2024, driven by strong US export growth [17] - The company noted a significant 27% year-on-year increase in LPG import demand from China, alongside supportive government policies in India for LPG usage [30] Company Strategy and Development Direction - The company is strategically shifting towards larger vessels to maintain a young fleet profile and provide comprehensive services to industrial customers [22] - The focus remains on reducing spot exposure and increasing period charters to stabilize revenue streams [11][12] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term market fundamentals despite entering seasonally weaker summer months, citing strong demand from China and India [20][30] - The company anticipates continued profitability driven by higher revenues and reduced expenses, with a focus on maintaining a competitive edge in the LPG shipping market [20][33] Other Important Information - The company has successfully reduced its debt significantly, with 23 unencumbered vessels and a debt ratio below 15% [20][27] - The book value of the company's investments in joint ventures stood at$ 42.3 million, with a notable interim distribution of $24 million from the sale of a vessel [23] Summary of Q&A Session Questions and Answers - There was no question-and-answer session during the conference call, as all participants were on listen-only mode [1]