StealthGas (GASS) Q3 2024 earnings summary

Executive summary

• Achieved record nine-month adjusted net income of $61 million and adjusted EPS of $1.67, up 61% year-over-year; Q3 2024 adjusted net income was $14.2 million and adjusted EPS $0.38, up 18% and 23% year-over-year, respectively.

• Q3 2024 revenues rose 17% year-over-year to $40.4 million, with nine-month revenues up 13.2% to $123.8 million, driven by higher charter rates and improved market conditions.

• Focus remains on deleveraging, with $106.6 million in debt repaid year-to-date, $70 million in new debt raised, and 25 of 28 vessels unencumbered.

• Approximately 65% of 2025 fleet days are secured on period charters, with over $220 million in contracted revenues.

• Strong liquidity with $77.4 million in cash and total assets of $720.7 million at quarter-end.

Financial highlights

• Net revenues for Q3 were $40.4 million, up 17% year-over-year; nine-month net revenues were $115.3 million, up 16%.

• Adjusted EBITDA for Q3 was $21.7 million, with nine-month adjusted EBITDA reaching $85.4 million.

• Operating expenses for Q3 were $12.3 million, flat year-over-year; nine-month operating expenses were $36.2 million, down 10%.

• Q3 2024 fleet utilization was 95.9%, down from 99.7% in Q3 2023 due to drydocking.

• Shareholders' equity increased by 11% over nine months.

Outlook and guidance

• About 65% of 2025 fleet days are secured, with contracted revenues of approximately $100 million for next year and over $220 million in total contracted revenues.

• Market expected to strengthen in winter, with period rates for pressurized ships at historical highs.

• Positive fundamentals: low orderbook and aged fleet in small and Handy segments, strong Asian demand, and increasing US exports.