StealthGas (GASS) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly net income of $25.8 million for Q2 2024, up 146% year-over-year, with basic EPS of $0.70, and six-month net income of $43.5 million, up 60% year-over-year.

• Revenues for Q2 2024 rose 14% year-over-year to $41.8 million, driven by new vessel deliveries and improved market conditions.

• All vessels are fixed on period charters, with 85% of 2024 and 55% of 2025 fleet days contracted, securing over $220 million in future revenues.

• Completed sale of three vessels and took delivery of two newbuild MGCs, enhancing fleet efficiency.

• Continued focus on debt reduction, with net debt ratio below 5% and 24 out of 27 vessels unencumbered.

Financial highlights

• Net revenues for Q2 were $39.1 million, up 18% year-over-year; operating expenses fell 7% to $12.5 million.

• Adjusted net income for Q2 was $27.5 million, up 158% year-over-year, with adjusted EPS of $0.75.

• EBITDA for Q2 2024 was $34.1 million, nearly doubling year-over-year.

• Six-month net income reached $43.5 million, a 60% increase year-over-year; liquidity at quarter-end was $76.6 million.

• Equity earnings in joint ventures surged to $11.5 million in Q2 2024, mainly from a vessel sale.

Outlook and guidance

• Entering the seasonally strong winter period, with expectations for increased activity and demand for LPG.

• 85% of fleet days for the rest of 2024 and 55% for 2025 are secured under period contracts, increasing revenue visibility.

• Medium- to long-term fundamentals remain strong, especially for pressurized and handysize segments due to low order books and aging fleets.

• Positive demand outlook from China and India, with US exports at record highs.

• Persistently high interest rates and inflation may impact costs and demand.