Forward-Looking Statements

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1 3 rd StealthGas Inc. rd Quarter & Nine Months 2010 Results November 16 th, 2010

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 2 LPG Carriers in 2009, and 5 so far in 2010 Acquiring 4 new LPG Carriers in 2011 and 1 more in 2012 Acquired new Aframax Crude Oil Tanker in July 2010 Moderate Leverage Third Quarter 2010 net debt to capitalization: 45.7% Visible Revenue Stream Consistency Modern Fleet Close Customer Relations Cost-Efficient Operations Consistent Breakeven Common Stock Re-Purchase 78% of voyage days fixed for FY % of voyage days fixed for FY 2011 Adjusted average TCE for entire fleet for Q $7,792 per day, compared to Q $7,835 and $ 7,802 in Q Our fleet average age is 11.8 years Industry average age is 22.0 years High quality customer base low counterparty risk Net Income Breakeven of $6,311 per day in Q (net of realized loss on interest rate swaps) compared to $5,963 in Q and $5,665 in Q Instigated plan to buy-back up to $15 Million worth of Common Stock Total stock repurchased as of November 16 th 2010 circa 1.2million 2

4 Fleet Development No scheduled vessel deliveries until Q1 of 2011 Acquisition strategy for fleet to number of 42 ships by year end 2011, 43 by 2012 Selective sale of older & smaller tonnage in 2009/10 3

5 Fleet Employment Profile 4

6 Third Quarter 2010 Financial Highlights Third Quarter 2010 Q3 Net Income of $1.0 million, net revenues of $26.7 million, EBITDA of $9.7 million Q3 Net income of $0.9 million before net non cash loss of $1.0 million on interest rate swaps and foreign currency hedging arrangements, $1.1 million gain on unrealized exchange difference, and $0.04 million provision for stock related compensation. EPS of $0.05 per share (EPS $0.04 per share before non cash loss on interest rate swaps and foreign currency hedging arrangements, gain on unrealized exchange difference and stock-based compensation) on 21.0 million shares outstanding Free cash balance of circa $31.0 million Conservative leverage: net debt to capitalization of 45.7% 5

7 Third Quarter 2010 Income Statement In US$ 000, except per share amounts 3Q09 4Q09 1Q10 2Q10 3Q10 Net Revenues $28,384 $28,381 $28,757 $26,870 $26,727 Operating Income 6,772 (20,843) 6,611 (3) 6,056 (1) 4,540 Net Income 7,159 (2) (27,151) 1,614 (3) 4,146 (1) 990 Net Income, net of interest rate swap, stock based compensation, impairment loss, gain on sale of vessel, unrealized exchange difference, contract termination fees and forfeiture of vessel deposit 2,793 2,270 3,274 1, EBITDA 16,556 (2) (17,645) 9,918 (3) 12,221 (1) 9,703 EPS 0.32 (2) (1.22) 0.07 (3) 0.19 (1) 0.05 EPS, net of interest rate swap, stock based compensation, impairment loss, gain on sale of vessel, unrealized exchange difference, contract termination fees and forfeiture of vessel deposit Number of Shares, basic 22,245,939 22,291,064 22,276,680 21,763,071 21,084,060 (1) Includes $ 1.1 million unrealized exchange difference on foreign currency deposit (2) Includes impairment loss $ 9.9 million and $10.75 million payment on termination of vessel acquisition contract plus forfeiture of vessel deposit (3) Includes $ 1.0 million gain on sale of vessel 6

8 Third Quarter 2010 Operating Highlights Fleet Data & Daily Results Fleet Data FY08 FY09 3Q09 4Q09 1Q10 2Q10 3Q10 Average number of vessels in fleet Period end number of vessels in fleet Total calendar days for fleet 14,113 15,335 3,944 3,934 3,690 3,418 3,471 Total voyage days for fleet 14,018 15,240 3,918 3,898 3,615 3,361 3,394 Fleet utilization 99.3% 99.4% 99.3% 99.1% 98.0% 98.3% 97.8% Total charter days for fleet 13,318 12,276 3,155 2,941 2,760 2,454 2,513 Total spot market days for fleet 700 2, Fleet operational utilization 97% 90.2% 89.3% 86.8% 86.2% 87.1% 83.9% Average Daily Results (in $) FY08 FY09 3Q09 4Q09 1Q10 2Q10 3Q10 Time Charter Equivalent TCE $9,056* $7,712* $7,802* $7,324* $7,989* $7,835* $7,792* Vessel Operating Expenses 3,736* 3,464* 3,675* 3,473* 3,513* 3,684* 3,778* Management Fees General & Administrative Expenses Total Vessel Operating Expenses 4,074* 3,696* 3,918* 3,671* 3,683* 3,919* 4,002* * Assuming no vessels on Bareboat Charter 7

9 Nine Months 2010 Financial Highlights Nine Months 2010 Nine months Net income of $6.8 million, net revenues of $82.4 million, EBITDA of $31.8 million Nine months Net income of $6.1 million before net non cash loss of $1.3 million on interest rate swaps and foreign currency hedging arrangements, $1.0 million gain on sale of vessel, $1.1 million gain on unrealized exchange difference and $0.1 million provision for stock related compensation. EPS of $0.31 per share (EPS $0.28 per share before non cash loss on interest rate swaps and foreign currency hedging arrangements, gain on sale of vessel, gain on unrealized exchange difference and stock-based compensation) on 21.7 million shares outstanding. Debt to market value of existing fleet among the lowest of quoted U.S. shipping companies. 8

10 Nine Months 2010 Income Statement In US$ 000, except per share amounts Nine Months 2009 Nine Months 2010 Net Revenues $84,665 $82,354 Operating Income 22,129 17,207 Net Income 13,839 6,750 Net Income, net of interest rate swap, gain on sale of vessel, unrealized exchange difference and stock based compensation 13,605 6,140 EBITDA 39,777 31,843 EPS EPS, net of interest rate swap, gain on sale of vessel, unrealized exchange difference and stock based compensation Number of Shares, basic 22,222,330 21,705,902 9

11 Daily Breakeven Q vs Q Daily Cashflow and Net Income Breakeven Composition ($ per vessel per day) Q fleet calendar days: 3,418 Q fleet calendar days: 3,471 Q Q Expenses Cash Flow Net Income Cash Flow Net Income Operating $2,715 (1) $2,715 (1) $2,934 (1) $2,934 (1) Management Fees, General & Administrative Management Fees, General & Administrative, net of stock-based compensation Maintenance (surveys/drydockings) Interest Realized loss on derivatives Principal 2, ,420 0 Depreciation & Amortization 0 1, ,941 Total 6,694 6,382 7,254 6,775 Total, net of stock-based compensation 6,680 6,368 7,242 6,763 (1) Includes eight vessels on Bareboat Charter as of and

12 Financial Estimator ($ in millions) 38 Vessels by 31/12/ E Non Contracted Voyage Days 920 Daily Spot Charter Rate - 4,250 cbm vessel? Spot Revenue? Period Charter Revenue (T/C and Bareboat) $104.3 Total Revenue? Operating Expenses 48.1 SG&A and Management Fees 7.9 Commissions 3.2 Maintenance CapEx 2.7 Total Expenses 61.9 EBITDA? D&A 26.8 Net Interest

13 USD 1000's per month LPGC Freight Rates Average earnings in the spot market excluding waiting time / 1 yr TC rates SR TCE 8000 ETH TCE 6500 SR TCE 3500 SR 1yr TC 3500 PR 1yr TC east 100 INGE STEENSLAND AS 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 250, , ,000 3,500 CBM P/R 227, , ,000 5,000 CBM P/R 260, , ,000 6,000 CBM S/R 450, , ,000 15,000 CBM S/R 500, , ,000 35,000 CBM 600, , ,000 60,000 CBM 670, , ,000 78,000 CBM 705, , ,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* % % INGE STEENSLAND AS 5% 0% -5% -10% 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 NAV P/NAV P/E Ratio StealthGas Inc. GASS $ x 10.24x Diana Shipping Inc. * DSX $ x 8.55x DryShips Inc. * DRYS $ x 6.49x Nordic American Tanker Shipping Ltd. * NAT $ x 86.77x Seaspan Corporation * SSW $ x 11.68x Capital Product Partners ** CPLP $ x 14.8x * Source: Cantor & Fitzgerald & Co., as of November 12 th, 2010 ** Source: Oppenheimer & Co. Inc., as of November 15 th,

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