StealthGas Inc Page 1

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2 Disclaimer Forward-Looking Statements This presentation contains forward-looking statements within the meaning of applicable federal securities laws. Such statements are based upon current expectations that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as may, will, should, estimates, predicts, potential, continue, strategy, believes, anticipates, plans, expects, intends and similar expressions are intended to identify forward-looking statements. Actual results and the timing of certain events may differ significantly from the results discussed or implied in the forward-looking statements. Among the factors that might cause or contribute to such a discrepancy include, but are not limited to, the risk factors described in the Company s Registration Statement filed with the Securities and Exchange Commission, particularly those 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. Page 2

3 Research for this presentation was provided by: LORENTZEN & STEMOCO AS Page 3

4 Vafias Group - Maritime activities commenced 1972 Ranked by number of vessels owned among the top 5 largest shipping groups in Greece The Group controls 65 vessels operating in dry, oil and LPG transportation sectors Brave Maritime Corp. Inc. Established in 1987 Specializing in Dry Bulk transportation Current fleet 3 vessels, 2 Bulker New Buildings ordered for delivery New Building Gas vessels ordered for delivery between 2008 and 2010 StealthGas Inc. (Ticker Symbol GASS ) Established in 2004 Successfully listed on Nasdaq October 2005 Current fleet 29 vessels, 1 New Building or delivery Q second hand vessels for delivery in Q Largest single owner of Handy Size LPG vessels in the world with 12% marked share Stealth Maritime Corp. S.A Established 1999 Currently operates 5 VLCC and Aframax Crude Oil Tankers all on long term charters 2 New Building Product Tankers ordered for delivery early 2008 Brave Bulk Transport LTD Established in 2003 located in Australia Largest worldwide shipper by volume of grain to the Middle East Currently charters in 7 Panamax dry bulk vessels Page 4

5 StealthGas Inc. StealthGas Inc. The No.1 Owner of Handysize LPG Vessels in the World You might not have heard of us, we've only been operating since the end of But in that time, we've gone from nothing to being the biggest fleet of Handysize Liquified Petroleum carriers in the world. With 30 vessels ranging from 1,600 to 7,500 cbm we are able to transport various LPG and petchem gases in our modern fleet with an average age of just 11 years. StealthGas is listed on the Nasdaq Stock Exchange in New York under the ticker symbol 'GASS' and our IPO was nearly three times oversubscribed. Page 5

6 Why did we invest in this sector? The Outlook for LPG s International seaborne LPG trade is 50 mill tons and will increase to over 70 million tons in 2009 Volatile and unreliable feedstock from Saudi Arabia will be replaced by more reliable LNG derived cargo volumes Increased export from Middle East and West Africa Increased demand from US, India and China Fleet growth will be more than absorbed by fleet replacement and stable demand Niche Market, we have been able to consolidate sector and derive economies of scale due to 11% market share. Page 6

7 Increased LPG Supplies => Higher Freight Rates Expanding LPG supplies are driven by increased LNG production and crude oil refining LNG Production 14 CAGR = 12% Trillion Cubic Feet E 2006E 2007E 2008E 2009E 2010E LNG Production LPG supplies are expected to increase by 50% from the present 50 million tons to 75 million tons by 2010 and then to 85 million tons by 2015 Increased LPG supplies have already had a beneficial impact on freight rates and we believe this trend will continue Source: CMAI, Drewrys, VLO, ESAI, Purvin Gertz, PIRA, Poten & Partners. Page 7

8 LPG Macro Consumption Trends Increasing Urbanization and Rising Living Standards --> Rapid increase in consumption Japanese LPG consumption steady post-rapid development Average 22 years rapid growth, China should realize another decade China Urbanization: 20 Million/p.a., India: Further growth potential 25.0 LPG Consumption - Japan 100 Household LPG Usage in Asia Million Tons Japanese LPG Consumption Periods of Rapid LPG Demand Growth 0 Japan Malaysia Taiwai Korea Thailand Philippines China Duration kg per capita India Wietnam Indonesia Pakistan America years Europe Japan years 23 years Korea years China years so far Page 8

9 LPGC freight rates Average earnings in the spot market excluding waiting time / 1 yr TC rates Page 9

10 Small LPG Fleet Growth Profile Stealthgas focuses on the Small LPG Segment Small LPG Segment ( cbm) has balanced outlook with average fleet growth ahead % Earnings/TC rates in USD 1000's /month (lines) % 12% 10% 8% 6% 4% 2% 0% -2% Fleet growth in % (bars) % Overall fleet growth S/R fleet growth Page 10

11 Business Strategy Since IPO (Oct 05) to Present Day Business Strategy Triple Fleet by mid-2006 Implementation Doubled Fleet by end of Q1 06 Tripled fleet (27 vessels) by end of Q2 06 Currently owns 29 vessels plus one N.B due October Moderate Leverage Visible Revenue Stream Modern Fleet Close Customer Relations Cost-Efficient Operations Pay Dividends 2006 Year end net debt to capitalization: 45.6% Current net debt to values circa 40% 74% of voyage days fixed for FY % of voyage days fixed for FY 2008 Our fleet average age is 11.2 years Industry average age is 17 years Fleet utilization of 98.8 % in 2006 High quality customer base low counterparty risk Low Net Income breakeven $5,229 per day in 2006 compared to $5,325 in 2005 Paid fourth consecutive dividend of cents per share on December 5, 2006 to shareholders of record on December 1, 2006 Page 11

12 Fleet Development Grew fleet to 21 vessels by end of 2005 Fleet currently numbers 29 vessels StealthGas ranks #1 in owned vessels in 3,000 to 8,000 CBM segment Expected to acquire minimum 3 further ships during 2 nd half IPO Established October Q Q Q Q Q Q Q Q Q Q Fleet Projected Q3 Page 12

13 Transparent Earnings Outlook Page 13

14 4th Quarter & Twelve Months 2006 Financial Highlights 4 th Quarter 2006 Q4 Net income of $4.8 million, revenues of $20.4 million, EBITDA of $10.2 million Q4 Net income of $4.8 million before non cash loss on interest rate swaps of $29 thousand EPS of $0.33 cents per share ($0.34 cents per share before the non cash interest rate swap loss) on 14.4 million shares outstanding Declared fifth consecutive dividend of cents per share since IPO in October 2005 Cash balance of $15.5 million Conservative leverage: net debt to capitalization of 41.2% Twelve Months 2006 Net income of $ 18.5 million, revenues of $ 73.3 million, EBITDA of $ 36.7 million EPS of $ 1.31 on 14.2 million average shares outstanding Total dividend payments of $0.75 per share paid in 2006 Declared divided of $ per share in Q Page 14

15 Daily Breakeven Q vs Q Daily Cashflow and Net Income Breakeven Composition ($ per vessel per day) Q fleet calendar days: 2,576 Q fleet calendar days: 2,576 Q Q Expenses Cash Flow Net Income Cash Flow Net Income Operating $1,927 $1,927 $2,113 $2,113 Management Fees, General & Administrative Maintenance (surveys/drydockings) Interest Principal 1, ,580 0 Depreciation & Amortization 0 1, ,401 Total 5,221 4,936 5,696 5,517 Page 15

16 So Where Do You Go From Here? Page 16

17 StealthGas Inc. Our Future SO WHERE DO WE GO FROM HERE? What are our possible future financing needs and how will we go about securing them? Principally, to increase growth through the expansion of the Fleet Strategic acquisition of another company in similar or related sector Page 17

18 StealthGas Inc. Our Future WHY? To increase our Market Capitalization To increase our share count and float To increase the number of analysts covering our stock To increase our capital base in order to attract flexible and competitive funding options To increase market share and economies of scale and to further tighten market control in the Handysize sector Page 18

19 Contacts Company Contact: Andrew J. Simmons Chief Financial Officer StealthGas Inc Investor Relations/Media: Nicolas Bornozis Capital Link, Inc.(New York) Tel Visit our Website at: Weekly LPG Market Report updated every Monday Comprehensive Investor Relations Information Page 19