Transcript of "StealthGas Q3 2012 results presentation"
StealthGas Inc. 3rd Quarter 2012 Results November 27th , 2012CONSISTENCY & GREAT VALUE
Disclaimer Forward-Looking StatementsThis presentation contains forward-looking statements within the meaning of applicablefederal securities laws. Such statements are based upon current expectations that involverisks and uncertainties. Any statements contained herein that are not statements ofhistorical fact may be deemed to be forward-looking statements. For example, wordssuch as “may,” “will,” “should,” “estimates,” “intends,” and similar expressions areintended to identify forward-looking statements. Actual results and the timing of certainevents may differ significantly from the results discussed or implied in the forward-looking statements. Among the factors that might cause or contribute to such adiscrepancy include, but are not limited to the risk factors described in the Company’sRegistration Statement filed with the Securities and Exchange Commission, particularlythose describing variations on charter rates and their effect on the Company’s revenues,net income and profitability as well as the value of the Company’s fleet. 1
Business StrategyBusiness Strategy ImplementationConsolidation and fleet Took delivery of 5 Newbuilding LPG carriers (February, April & September 2011, January & June 2012)renewal Sold 4 LPG carriers in 2011 & 2 LPG carriers in 2012 Acquired 4 Newbuilding LPG carriers to be delivered in 2014Moderate Leverage Q3 2012 net debt to capitalization: 47.9%Visible Revenue Stream – 68% of voyage days fixed for FY 2013Consistency 41% of voyage days fixed for FY 2014Modern Fleet Our fleet average age is 10.7 yearsClose Customer Relations High quality customer base – low counterparty riskCost-Efficient Operations Net Income Breakeven of $5,991 per day in Q3 2012 (net on interest rate swaps) compared to $5,816 in Q2 2012 and $5,847 in Q1 2012.Consistent BreakevenShare Repurchases 15 million share repurchase program, 1.8 million shares since the program’s inception (cost $8.5 million). 2
Fleet Development Newbuilding program of 12 LPG carriers completed with the 2 latest deliveries in 2012 Remaining newbuilding vessels have committed financing Selective sale of older & smaller tonnage in 2011/12 3
Financial HighlightsThird Quarter 2012 Q3 Net Income of $6.6 million, net revenues of $30.4 million, EBITDA of $16.4 million. EPS of $0.32 per share on 20.6 million shares outstanding. Q3 Adjusted Net Income of $5.8 million and Adjusted EPS $0.28 per share, before net non cash loss of $0.4 million on interest rate swaps, $1.2 million on swap interest paid.Nine Months 2012 9 Months Income of $21.2 million, net revenues of $88.6 million, EBITDA of $49.7 million. EPS of $1.03 per share on 20.6 million shares outstanding. 9 Months Adjusted Net Income of $17.5 million and Adjusted EPS $0.85 per share, before net non cash loss of $1.2 million on interest rate swaps, $3.6 million on swap interest paid, $1.4 million gain on sale of vessel and $0.1 million unrealized exchange loss. Cash balance of circa $41 million 5
Balance Sheet December 31, September 30, 2011 2012Cash and Cash Equivalents incl. restricted 51,793,666 47,347,912Current Assets excl. cash 5,106,792 5,708,360Vessels held for sale 921,285 --Advances for vessels under construction 22,347,811 19,200,000Vessels, net 613,832,973 641,968,871Other assets 1,707,624 1,382,047Total Assets 695,710,151 715,607,190Current portion of long term debt 33,166,887 35,162,544Current portion of long term debt associatedwith vessel held for sale 791,823 --Current Liabilities 22,142,145 22,114,615Long Term Debt 317,109,471 318,107,439Other Liabilities 9,401,798 5,913,326Stockholders Equity 313,098,027 334,309,266Total Liabilities and Stockholders Equity 695,710,151 715,607,190 7
2012 Operating HighlightsFleet Data & Daily ResultsFleet Data Q3 2011 Q2 2012 Q3 2012Average number of vessels in fleet 36.3 36.5 37.0Period end number of vessels in fleet 37 37 37Total calendar days for fleet 3,335 3,319 3,404Total voyage days for fleet 3,247 3,288 3,388Fleet utilization 97.4% 99.1% 99.5%Total charter days for fleet 2,514 2,869 2,883Total spot market days for fleet 733 419 505Fleet operational utilization 88.1% 94.3% 95.7%Average Daily Results (in $) Q3 2011 Q2 2012 Q3 2012Time Charter Equivalent – TCE $8,691* $9,853* $9,800*Vessel Operating Expenses 4,297 4,144 4,122Management Fees 337 316 317General & Administrative Expenses 194 163 290Total Vessel Operating Expenses 4,492* 4,307* 4,411* * Assuming no vessels on Bareboat Charter 8
Financial Estimator 2012 Q4 Contracted Revenues $24 million Non contracted Voyage days 546 Operating Expenses $8 million per quarter Drydock Expenses No vessel to be drydocked in Q4 Interest & Swaps (cash portion) $3.3 million D&A $7.3 million EBITDA Estimates if all the LPG vessels in the fleet were chartered at the TC rate below: Average Rate $11,000 $12,000 $13,000 EBITDA 82million 97million 112million 9
LPG Major Trades Seaborne LPG trade up 10% in 2012 driven by demand from emerging economies: increasingconsumption vs limited production capacity is offering bright prospects for the future in these countries. Low prices for LPG products lead importing nations to fill up stocks; Asian imports expected to rise upby 12% for 2012, contributing to 90% of growth rate in LPG seaborne trade. 10
LPG Major Trades The Middle East remained the main supplier and the single largest contributor to growth in total LPG exports in 2012, with LPG supply for Middle East exports expected to increase by 12%. 2/3 of our fleet operates in the Far East, while the rest usually operates in the Middle East, the Mediterranean, North West Europe and Latin America. New prospects in the US for oil and natural gas output growth are expected to change regional dynamics andfuture seaborne global energy flows in the next decades to come. Positive news for pressurized owners, USCG confirm that pressure vessels type tanks based on IGC Codestress factors are acceptable (18 bars instead of 12,75). Hence, it will be possible for pressurized owners toload Propane in the US. This can lead to several smaller export terminals being developed in the US based onless expensive and quicker to build pressurized terminals especially for the Caribbean market which to a greatextent have pressurized receiving terminals. 11
3000-8000 cbm Fleet Development Vs. TC Rates/Earnings* 600 10% INGE STEENSLAND ASTC rates in USD 1000s per month (lines) 500 Fleet growth in % (bars) TC equiv. spot earnings 400 5% 300 200 0% 100 Overall 3000-7999 fleet growth SR 3000-7999 fleet growth SR 6500 cbm TCE SR 3500 cbm 1yr TC PR 3500 cbm 1yr TC East - -5% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 •TC equivalent spot earnings are assessed average earnings in the spot market excluding waiting time. Yearly average •Fleet growth excl. Chinese fleet, assuming 30 year scrap age by end 2013. Source: Inge Steensland AS 13
An overloaded orderbook in mainstream segments But not in the LPG space30%25% 24% 22% 22%20% 19%15% 13% 12%10%5%0% Offshore Drybulk LNG Container Crude Tankers LPG LPG orderbook still remains smaller than other shipping segments with a limited fleet growth of pressurized vessels for 2012 and a negative fleet growth from 2013 onwards. StealthGas is in a position to take advantage of positive market dynamics. * Includes all LPG Carriers size categories 14
Valuations comparison Company P/NAV GASLOG (GLOG) 128.4% GOLAR LNG (GNLG) 159% SCORPIO TANKERS (STNG) 175% CAPITAL PRODUCT PARTNERS (CPLP) 202.4% TEEKAY TANKERS (TNK) 242.9% STEALTHGAS (GASS) 53.5% Shipping companies listed in the US listed operating in different sectors such as gas, tankers and drybulk,are trading above net asset values. Although there may be a variety of reasons for that, we believe there areno other US listed company operating in a sector that has better fundamentals than our LPG sector; and yetour stock continues to trade far below our net asset value. Based on Wells Fargo, Morgan Stanley and Seaborne Capital Advisors April 2012. For StealthGas, based on company’s estimates. 15
ContactsCompany Contact:Konstantinos Sistovaris Visit our Website at:Chief Financial Officer www.stealthgas.comStealthGas Inc. Weekly LPG Market Report011-30-210-6250-001 updated every MondayE-mail: email@example.com Comprehensive Investor Relations Information 18
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