STEALTHGAS INC. Reports Third Quarter 2016 Financial And Operating Results

ATHENS, Greece, Nov. 29, 2016 (GLOBE NEWSWIRE) -- STEALTHGAS INC. (NASDAQ:GASS), a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today its unaudited financial and operating results for the third quarter ended September 30, 2016.

OPERATIONAL AND FINANCIAL HIGHLIGHTS
  • 12.4% increase in vessel calendar days in 9M 2016 compared to 9M 2015, surpassing 15,000 days.
  • Operational utilization of 88.1% in Q3 2016 (94.4% in Q3 2015).
  • 87% of fleet days secured on period charters for the remainder of 2016, with a total of $175 million in contracted revenues.
  • Average fleet age of 9.4 years (12 years market average).
  • Deferral of the deliveries for our four 22,000 cbm semi refrigerated newbuildings.
  • Revenues in Q3 2016 of $ 34.4 million decreased by 4% compared to Q3 2015- in a challenging market environment.
  • EBITDA in Q3 2016 of $11.2 million ($13.4 million in Q3 2015).
  • Cash on hand of $60.7 million with operating cashflow of $25.2 million for 9M 2016.

Third quarter 2016 Results:
  • Revenues for the three months ended September 30, 2016 amounted to $34.4 million, a decrease of $1.4 million, or 3.9%, compared to revenues of $35.8 million for the three months ended September 30, 2015, primarily due to low seasonal demand which led to lower fleet utilization of 88.1% compared to 94.4% in the same period of last year.
  • Voyage expenses and vessels' operating expenses for the three months ended September 30, 2016 were $4.0 million and $14.6 million respectively, compared to $5.2 million and $13.4 million respectively, for the three months ended September 30, 2015. The $1.2 million decrease in voyage expenses was primarily due to the increase in time charter days by 19% and overall lower fleet utilization. The 9.0% increase in operating expenses compared to the same period of 2015, is due to a net fleet expansion by one vessel, and two vessels coming off bareboat.
  • Drydocking costs for the three months ended September 30, 2016 and 2015 were $1.0 million and $ 0.5 million, respectively. The cost for the third quarter of 2016 corresponds to the drydocking of two vessels compared to one for the same period of last year. Overall, for the remainder of 2016 the Company has one more scheduled drydocking.
  • Depreciation for the three months ended September 30, 2016, was $9.9 million, a $0.7 million increase from $9.2 million for the same period of last year. This increase was due to the net addition of one vessel.
  • Included in the third quarter 2016 results are net losses from interest rate derivative instruments of $0.2 million. Interest paid on interest rate derivative instruments amounted to $0.2 million.
  • As a result of the above, for the three months ended September 30, 2016, the Company reported a net loss of $2.5 million, compared to net income of $1.0 million for the three months ended September 30, 2015. The weighted average number of shares for the three months ended September 30, 2016 decreased to 39.7 million compared to 41.2 million for the same period of last year, mainly due to the repurchase of 1.7 million shares from July 2015 to September 30, 2016. Loss per share, basic and diluted, for the three months ended September 30, 2016 amounted to $0.06 compared to earnings per share, basic and diluted, of $0.03 for the same period of last year.
  • Adjusted net loss was $2.4 million or $0.06 per share for the three months ended September 30, 2016 compared to adjusted net income of $0.9 million or $0.02 per share for the same period of last year.
  • EBITDA for the three months ended September 30, 2016 amounted to $11.2 million. Reconciliations of Adjusted Net Income/(Loss), EBITDA and Adjusted EBITDA to Net Income/(Loss) are set forth below.
  • An average of 54.0 vessels were owned by the Company during the three months ended September 30, 2016, compared to 50.2 vessels for the same period of 2015. 

Nine Months 2016 Results:
  • Revenues for the nine months ended September 30, 2016, amounted to $106.7 million, an increase of $2.8 million, or 2.7%, compared to revenues of $103.9 million for the nine months ended September 30, 2015, primarily due to the higher number of vessels in our fleet in the 2016 period.
  • Voyage expenses and vessels' operating expenses for the nine months ended September 30, 2016 were $11.7 million and $44.3 million, respectively, compared to $13.4 million and $36.5 million for the nine months ended September 30, 2015. The $1.7 million decrease in voyage expenses was mainly due to the lower bunker prices prevailing in the first nine months of 2016 compared to the same period of 2015. The increase in operating expenses, was mainly driven by our fleet expansion and the two vessels coming off bareboat compared to the same period of 2015.
  • Drydocking Costs for the nine months ended September 30, 2016 and 2015 were $3.2 million and $1.0 million, respectively. In the first nine months of 2016 we had nine vessels drydocked compared to two vessels in the same period of 2015.
  • Depreciation for the nine months ended September 30, 2016, was $29.2 million, a $3.0 million increase from $26.2 million for the same period of last year. This increase was due to the higher number of vessels in our fleet in the 2016 period.
  • Included in the first nine months of 2016 results are net losses from interest rate derivative instruments of $0.6 million. Interest paid on interest rate swap arrangements amounted to $0.9 million and gains from change in fair value of the same interest rate derivative instruments amounted to $0.3 million.
  • The Company realized a $0.3 million gain on sale of vessel in the first nine months of 2016.
  • As a result of the above, for the nine months ended September 30 2016, the Company reported a net loss of $3.4 million, compared to net income of $5.6 million for the nine months ended September 30, 2015. The average number of shares outstanding for the nine months ended September 30, 2016 decreased to 39.8 million compared to 41.6 million for the same period of last year, mainly due to the repurchase of 3.0 million shares from the beginning of 2015 to September 30, 2016. Loss per share for the nine months ended September 30, 2016 amounted to $0.09 compared to earnings per share of $0.13 for the same period of last year.
  • Adjusted net loss was $3.8 million or $0.09 per share for the nine months ended September 30, 2016 compared to adjusted net income of $9.1 million or $0.22 per share for the same period last year.
  • EBITDA for the nine months ended September 30, 2016 amounted to $36.9 million. Reconciliations of Adjusted Net Income/(Loss), EBITDA and Adjusted EBITDA to Net Income/(Loss) are set forth below.
  • An average of 53.3 vessels were owned by the Company during the nine months ended September 30, 2016, compared to 47.4 vessels for the same period of 2015.
  • As of September 30, 2016, cash and cash equivalents amounted to $60.7 million and total debt amounted to $410.0 million. During the nine months ended September 30, 2016 debt repayments amounted to $43.4 million.

Share Repurchase Program

Since December 1, 2014 to date, the Company has repurchased a total of 3,872,232 shares at an average price of $5.24 per share for a total consideration of $20.3 million, under its $30.0 million buyback program.

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