Release Date: February 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• StealthGas Inc (NASDAQ:GASS) reported record revenues of $167.3 million for 2024, marking the highest in the company's history.
• The company achieved a record yearly profit of $77 million on an adjusted basis, continuing a three-year streak of record profits.
• StealthGas Inc (NASDAQ:GASS) has significantly reduced its debt, bringing it below $100 million for the first time and is now close to being net debt-free.
• The company has secured over $200 million in future revenues with 70% of fleet days covered for 2025.
• StealthGas Inc (NASDAQ:GASS) has authorized an additional $10.5 million for share repurchases, demonstrating a commitment to returning value to shareholders.

Negative Points

• Operating expenses increased by 6% in the fourth quarter due to higher crew costs and maintenance fees.
• The company faced downtime and revenue impact due to the dry docking of three vessels in the fourth quarter.
• Geopolitical uncertainties, such as the Russia-Ukraine conflict and potential tightening of Iranian sanctions, pose risks to LPG trade.
• The Suez Canal situation remains volatile, potentially affecting shipping routes and costs.
• The order book for medium gas carriers (MGCs) is worrisome, with a ratio surpassing 50% of the existing fleet, which could lead to market oversupply.

Q & A Highlights

• Warning! GuruFocus has detected 5 Warning Signs with RYI.

Q: Can you provide more details on the company's debt reduction strategy and its impact on financial performance? A: Konstantinos Sistovaris, CFO, explained that the company has significantly reduced its debt, bringing it below $100 million for the first time during the third quarter of 2024. With further repayments, the debt level is now close to $50 million. This reduction allows for faster cash accumulation and lowers cash flow break-even for vessels, enhancing competitiveness.

Q: What are the company's plans regarding fleet diversification and renewal? A: Michael Jolliffe, Chairman, stated that the strategy is to conservatively diversify and renew the fleet. There were no new announcements in this call, but past actions included selling two smaller LPGs and acquiring two new medium gas carriers, which significantly boosted 2024 results.

Q: How is StealthGas addressing geopolitical risks affecting the LPG market? A: Harry Vafias, CEO, acknowledged various geopolitical risks, such as sanctions on Russian LPG exports and potential tightening of Iranian sanctions. While these factors could impact LPG trade, the company remains confident in its solid state and continues to monitor these developments closely.

Q: Could you elaborate on the company's share repurchase program? A: Michael Jolliffe, Chairman, mentioned that over the last two years, StealthGas has spent close to $20 million buying back almost 4 million shares. The Board has decided to reserve additional funds, authorizing management to invest up to $10.5 million for further share repurchases.

Q: What is the outlook for the LPG market and StealthGas's positioning within it? A: Harry Vafias, CEO, noted that global LPG exports have been on an upward path, with significant growth in the US, China, and India. Despite geopolitical uncertainties, the company is well-positioned with a strong fleet and strategic priorities focused on modernization and securing revenues.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.