Forward-Looking Statements

Transcription

1 4 th StealthGas Inc. th Quarter 2010 Results February 23 rd, 2010 CONSISTENCY & GREAT VALUE

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, 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 forwardlooking 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. 1

3 Business Strategy Business Strategy Consolidation and fleet renewal Implementation Sold 5 LPG carriers in 2010 Acquiring 5 Newbuilding LPG Carriers (4 in 2011 and 1 in 2012) Acquired Newbuilding Aframax Crude Oil Tanker in 2010 Moderate Leverage Fourth Quarter 2010 net debt to capitalization: 45.8% Visible Revenue Stream Consistency Modern Fleet Close Customer Relations Cost-Efficient Operations Consistent Breakeven Common Stock Re-Purchase 61% of voyage days fixed for FY % of voyage days fixed for FY 2012 During 2010 announced 20 new charter arrangements of duration 12months or more. Our fleet average age is 12.0 years Sector average age is 18.5 years High quality customer base low counterparty risk Net Income Breakeven of $6,188 per day in Q (net of realized loss on interest rate swaps) compared to $6,311 in Q and $5,963 in Q Instigated plan to buy-back up to $15 Million worth of Common Stock As of December 31 st 2010, repurchased 5.6 % of stocks outstanding. 2

4 Fleet Development Newbuilding program of 4 LPG carriers delivering in 2011 and 1 delivering in 2012 Newbuilding program has committed financing Selective sale of older & smaller tonnage in 2010/11 3

5 Fleet Employment Profile 4

6 Fourth Quarter 2010 Financial Highlights Fourth Quarter 2010 Q4 Net Income of $4.3 million, net revenues of $29.1 million, EBITDA of $13.2 million Q4 Net income of $2.4 million before net non cash gain of $1.3 million on interest rate swaps and foreign currency hedging arrangements, $0.6 million gain on unrealized exchange difference EPS of $0.21 per share (EPS $0.12 per share before non cash gain on interest rate swaps and foreign currency hedging arrangements, gain on unrealized exchange difference) on 21.1 million shares outstanding Free cash balance of circa $30.0 million Conservative leverage: net debt to capitalization of 45.8% 5

7 Fourth Quarter 2010 Income Statement In US$ 000, except per share amounts Q Q Q Net Revenues $28,381 $26,727 $29,056 Operating Income (20,843) (1) 4,540 (2) 5,817 Net Income (3) (27,151) (1) 990 (2) 4,343 Net Income, net of interest rate swap, stock based compensation, impairment loss, unrealized exchange difference, contract termination fees and forfeiture of vessel deposit 2, ,440 EBITDA (3) (17,645) (1) 9,703 (2) 13,232 EPS (3) (1.22) (1) 0.05 (2) 0.21 EPS, net of interest rate swap, stock based compensation, impairment loss, unrealized exchange difference, contract termination fees and forfeiture of vessel deposit Number of Shares, diluted 22,291,064 21,091,139 21,101,882 (1) Includes gain $ 1.1 million unrealized exchange difference on foreign currency deposit (2) Includes gain $ 0.6 million unrealized exchange difference on foreign currency deposit (3) Includes impairment loss $ 9.9 million and $10.75 million payment on termination of vessel acquisition contract plus forfeiture of vessel deposit 6

8 Fourth Quarter 2010 Operating Highlights Fleet Data & Daily Results Fleet Data Q Q FY 2009 FY 2010 Average number of vessels in fleet Period end number of vessels in fleet Total calendar days for fleet 3,934 3,496 15,335 14,075 Total voyage days for fleet 3,898 3,470 15,240 13,835 Fleet utilization 99.1% 99.3% 99.4% 98.3% Total charter days for fleet 2,941 2,605 12,276 10,327 Total spot market days for fleet ,964 3,508 Fleet operational utilization 86.8% 92.2% 90.2% 87.3% Average Daily Results (in $) Q Q FY 2009 FY 2010 Time Charter Equivalent TCE $7,324* $8,024* $7,712* $7,810* Vessel Operating Expenses 3,473* 3,643* 3,464* 3,571* Management Fees General & Administrative Expenses Total Vessel Operating Expenses 3,671* 3,878* 3,696* 3,786* * Assuming no vessels on Bareboat Charter 7

9 Daily Breakeven Q & FY 2010 Daily Cash Flow and Net Income Breakeven Composition ($ per vessel per day) Q fleet calendar days: 3,496 FY 2010 fleet calendar days: 14,075 Q Q Cash Flow Net Income FY 2010 FY 2010 Cash Flow Net Income 8

10 Full Year 2010 Financial Highlights 12 Months 2010 Full Year Net income of $11.1 million, net revenues of $111.4 million, EBITDA of $45.1 million Full Year Net income of $8.6 million before net non cash gain of $0.02 million on interest rate swaps and foreign currency hedging arrangements, $1.0 million gain on sale of vessel, $1.7 million gain on unrealized exchange difference and $0.15 million provision for stock related compensation. EPS of $0.51 per share (EPS $0.40 per share before non cash gain on interest rate swaps and foreign currency hedging arrangements, gain on sale of vessel, gain on unrealized exchange difference and stock-based compensation) on 21.6 million shares outstanding. Debt to market value of existing fleet among the lowest of quoted U.S. shipping companies. 9

11 Full Year 2010 Income Statement In US$ 000, except per share amounts 12 Months Months 2010 Net Revenues $113,046 $111,410 Operating Income 1,287 23,024 Net Income (13,312) 11,093 Net Income, net of interest rate swap, loss/(gain) on sale of vessel, unrealized exchange difference and stock based compensation 15,876 8,580 EBITDA 22,132 45,075 EPS (0.60) 0.51 EPS, net of interest rate swap, loss/(gain) on sale of vessel, unrealized exchange difference and stock based compensation Number of Shares, basic 22,219,442 21,553,659 10

12 Financial Estimator 2011 Contracted Revenues $77 million Non contracted Voyage days 5,370 Operating, G&A, Management Fees, Commissions at similar levels to 2010 Drydock Expenses $5.1 million (11 vessels) Interest & Swaps (cash portion) D&A $14.2 million $29.0 million Remaining Payments for Newbuildings $65.0 million (2011) $21million (2012) 11

13 USD 1000's per month LPGC Freight Rates Average earnings in the spot market excluding waiting time / 1 yr TC rates INGE STEENSLAND AS SR TCE 8000 ETH TCE 6500 SR TCE 3500 SR 1yr TC 3500 PR 1yr TC east Source: Inge Steensland AS 12

14 1-Year TC Rate Volatility Since 2000 But, small LPG rates remain relatively stable Small LPG tanker rates are less volatile than crude tanker and drybulk rates 1-Year TC Rate Volatility Since 2000 Data source: Clarkson Research Services 2009 Rates: 1-year TC measured weekly Dry Bulk: average of Cape, Panamax, Handymax, and Handysize rates Crude Tanker: average of VLCC, Suezmax, and Aframax rates 13

15 Charter Market Rate Indicator (12 Month TCs) Q Average Current Q Forecast 3,200 CBM S/R 3,500 CBM P/R 5,000 CBM P/R 6,000 CBM S/R 15,000 CBM S/R 35,000 CBM 60,000 CBM 78,000 CBM 256, , , , , , , , , , , , , , , , , , , , , , , ,000 Source: Lorentzen & Stemoco 14

16 TC equiv. spot earnings TC rates in USD 1000's per month (lines) Fleet growth in % (bars) cbm Fleet Development Vs. TC Rates/Earnings* % % 300 5% % - INGE STEENSLAND AS -5% Overall fleet growth S/R fleet growth SR 6500 cbm TCE SR 3500 cbm 1yr TC PR 3500 cbm 1yr TC East TC equivalent spot earnings are assessed average earnings in the spot market excluding waiting time Fleet growth excl. Chinese fleet Source: Inge Steensland AS 15

17 Despite a stop in new ordering, lots of ships will be delivered But not in the LPG space 70 % Orderbooks in Percent of Existing Fleet 60 % 50 % 40 % 30 % 20 % 10 % 0 % Tank Drybulk Product Chemical LPG* LNG Container Reefer PCC sep.09 jan.10 Source: DnB NOR Markets Shipping Sector Outlook 2010 * Includes all LPG Carriers size categories 16

18 Shipping Sector Value Comparison Company Name Symbol LT Debt/CAP NAV P/NAV Latest Price StealthGas Inc. GASS 48.0% $ x 6.59 Diana Shipping Inc. * DSX 23.0% $ x DryShips Inc. * DRYS 47.0% $ x 4.88 Nordic American Tanker Shipping Ltd. * NAT 5.0% $ x Double Hull Tankers * DHT 58.0% $ x 4.85 Crude Carriers * CRU 32.0% $ x * Source: for LT/Cap and NAV Cantor & Fitzgerald & Co., as of February 14 th,

19 Contacts Company Contact: Konstantinos Sistovaris Chief Financial Officer StealthGas Inc Visit our Website at: Weekly LPG Market Report updated every Monday Comprehensive Investor Relations Information 18