The following is a summary of the StealthGas, Inc. (GASS) Q3 2024 Earnings Call Transcript:
Financial Performance:
Q3 revenue was $40.4 million, slightly down by 3% from the previous quarter but up 17% year over year.
Adjusted net income for Q3 was $14.2 million, up 18% year over year, with a record $61 million for the first nine months.
Earnings per share for Q3 were $0.38, a 23% increase, with $1.67 for the nine-month period, marking a 61% increase.Total debt reduced to below $100 million for the first time, with $86.4 million in total compared to $77.4 million in cash on hand, positioning the company close to being net debt-free.
Business Progress:
Expanded fleet with two medium gas carriers added in January.
Sold two smaller LPGs and one medium gas carrier by a joint venture, plus scheduled sale of another small vessel in early 2025.
Increased contractual coverage for 2025 to 65%, securing about $100 million in revenues.
Heavy drydocking schedule handled with four vessels undergoing maintenance. As part of fleet management, focused heavily on reducing debt, with $108 million repaid up to date.
Opportunities:
Revenue growth primarily driven by higher charter rates and the addition of larger, more profitable vessels to the fleet.
Strategic focus on Europe where freight rates are higher due to a shortage of well-maintained vessels and geographic trade restrictions that limit vessel movement from East to West.
Risks:
Potential fluctuations in market demand and freight rates impact profitability. The need to navigate costly European drydocking due to geographic operational constraints adds to operational expenses.
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