Third Quarter 2014 Results November 21 st, 2014

Transcription

1 Third Quarter 2014 Results November 21 st, 2014

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 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 1 income StealthGas Inc and profitability as well as the value of the Company s fleet.

3 StealthGas The Largest LPG Owner Top LPG Owners Ranked by Number of Vessels (Small Class) Company Sailing Fleet New building Total StealthGas * China Government Epic Gas ** Lauritzen J Hartmann Schif Ino Gas Trans Siam Gas & Oil Daelim Vitol Evergas Exmar Leading owner of Small Class LPG vessels. Maintain a modern fleet. Average age of our current LPG fleet is 10.7 years and will be reduced to 9.1 years after the majority of the newbuildings deliver by Maintain moderate leverage about 55% to 60%. (Current Net Debt to Total Cap approx. 25%). Maintain a visible revenue stream: 85% voyage days fixed for 2014, 55% for 2015, and 28% for Maintain cost efficient operations with a very low breakeven operating cost. *Including 4 tankers **Excluding chartered in vessels. 2

4 Fleet Employment Profile 42 vessels out of 47 on period charters securing visible revenue stream. $225 million in secured revenues. Seven ships Chartered for longer periods extending to No Spot Vessels until end of February

5 Fleet Development Current fleet consists of 43 LPG vessels, 3 product tankers and 1 aframax tanker. Contracted 21 eco-type LPG vessels, most of them in Japan, 5 of which have already delivered this year FY 2011 FY 2012 FY 2013 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q

6 LPG is a Supply Driven Market Phenomenal Output Growth in recent years. Most versatile form of Clean Energy. Most popular uses: Cooking, Heating, Autogas, Power Generation. 5 5

7 What is LPG? StealthGas Seaborne Trade Model LPG is the World s Most Versatile Energy: accessible, environmentally friendly, abundant, easier to transport. Natural Gas (LNG) Production (~60%) 10% is LPG StealthGas hub and spoke model Commercial/ Residential (52%) Industrial (9%) Crude Oil Refining (~40%) 3% is LPG Engine Fuel (8%) Refinery (6%) Other (2%) VLGCs transport LPG on longhaul trade vs StealthGas does regional trade and local distribution of Gas. Currently ~55% of our ships trade in the Far East, ~25% in Europe and ~20% in South America. 6 6

8 2014 Income Statement In US$ 000, except per share amounts Q Q Nine Months 2013 Nine Months 2014 Net Revenues $29,738 $31,232 $89,449 $96,982 Voyage Costs 2,895 4,011 10,984 10,583 Running Costs 9,852 12,346 26,514 33,676 Drydocking Costs 1,086-2, Operating Income 6,132 4,251 21,429 21,090 Net Income 4,147 1,571 15,685 13,873 Net Income, adjusted 3,700 1,478 13,462 13,053 EBITDA 14,000 12,894 44,229 46,315 EPS EPS, adjusted Number of Shares, diluted 32,052,568 41,830,308 26,997,623 37,971,

9 Balance Sheet December 31, September 30, Cash and Cash Equivalents incl. restricted 92,040, ,471,083 Current Assets excl. cash 8,144,638 7,315,240 Advances for vessels under construction 70,577,435 86,123,429 Vessels, net 677,022, ,400,867 Other assets 3,199,349 3,523,608 Total Assets 850,984, ,834,227 Current portion of long term debt 41,263,165 45,010,713 Current Liabilities 21,807,079 23,517,104 Long Term Debt 311,605, ,263,214 Other Liabilities 3,714,599 3,198,666 Stockholders' Equity 472,594, ,844,530 Total Liabilities and Stockholders Equity 850,984, ,834,

10 2014 Operating Highlights Fleet Data Q Q Nine Months 2013 Nine Months 2014 Average number of vessels in fleet Period end number of vessels in fleet Total calendar days for fleet 3,735 4,088 10,535 11,812 Total voyage days for fleet 3,665 4,062 10,376 11,714 Fleet utilization 98.1% 99.4% 98.5% 99.2% Total charter days for fleet 3,025 3,297 8,531 10,068 Total spot market days for fleet , Fleet operational utilization 87.0% 88.6% 91.4% 92.9% Average Daily Results (in $) Q Q M2013 9M2014 Time Charter Equivalent TCE 8,817* 8,331* 9,135* 9,034* Modern Fleet under 17 yrs old - TCE 10,277* 9,912* 10,436* 10,347* Older Fleet over 17 yrs old - TCE 5,394* 4,859* 6,304* 6,239* Vessel Operating Expenses 4,321* 4,689* 4,308* 4,742* Management Fees General & Administrative Expenses Total Vessel Operating Expenses 4,496* 4,828* 4,488* 4,927* * Assuming no Bareboat Charters 9 9

11 Small Class Orderbook Smallest in LPG Segment Supply Market Characteristics and Estimates (cb.m) 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% LPG Carrier Orderbook as Proportion of Trading Fleet (over ) 9% 40% 27% 44% 18% yrs 13% yrs 8% Age profile in Units LPG Carrier ( Cu.m.) 31 yrs + 17% yrs 19% up to 5 yrs 19% 25% of the Fleet over 25 years old yrs 10% 6-10 yrs 14% 0.0% 1-12,999 cu.m ,999 cu.m ,999 cu.m. 70,000+ cu.m. Total Source: LHS Banchero Costa, Fleet growth at 9% for the period of for the 1,000 12,999 cbm fleet. Stealthgas fleet average age is 10.7 years and will be reduced to 9.1 years after the majority of newbuildings deliver by 2016 More than 25% of the 1,000 12,999 cbm fleet is 25+ years old, that means ample Scrapping capacity if rates decrease further

12 Historical Charter Rate Stability & Barriers to Entry LPG Timecharter Rates Historically Less Volatile $2,500 5k CBM Pressurized (Trading East) Tanker Earnings Dry Bulk Earnings $2,000 ($ Thousands / Month) $1,500 $1,000 $500 $0 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 The small orderbook and strong demand dynamics support stable charter rates and high utilization. 2 LPG charter rates volatility history: $7,000 during the bottom of the cycle vs $13,000 at the peak. Average all inclusive Breakeven is ~$6,400 per ship. Current average rate for Modern vessels is $8,500 per day. BARRIERS TO ENTRY 1. Crew and Office staff needs lengthy, specialized training before operating these vessels. 2. Only few yards in Japan can build these ships, and they are fully booked through Q LPG tanks are costlier and more difficult to construct therefore creating a bottleneck for the industry. Source: Clarksons Research Services 11

13 Million Dollars Capex Program Analysis STEALTHGAS ORDERBOOK ORDERBOOK ADDITIONS Semi refrigerated ships are more versatile than pressurized ships as they can cool cargo down to -48 degrees Celsius and so they can carry a bigger variety of gasses CAPITAL EXPENDITURE ANALYSIS 450 Capex program 85 Advances Paid 170 Commited Bank Debt Negotiated Equity from Bank Debt Cash and future Cashflow * This year we already took delivery of 5 LPG vessels. 12

14 Sensitivity Analysis -Average Time Charter Equiv. Rates 59 vessels in 2016 LOW CASE SCENARIO BASE CASE SCENARIO MEDIUM CASE SCENARIO STRONG CASE SCENARIO EBITDA (m$) SENSITIVITY TO AVG RATES INCREASE (+1000) TCE Q1 2016E Q2 2016E Q3 2016E Q4 2016E FY2016E 7, , , , , , , , will be the first year that we will operate with 59 vessels. When Large Scale US projects materialize rates are expected to Increase. Adding to our fleet, 16 new eco LPG carriers, positions Stealthgas to capture the upside, and have the largest quality eco fleet available for employment in the small class LPG space. LPG charter rates volatility history: $7,000 during the bottom of the cycle vs. $13,000 at the peak. * Analysis assumes all vessel are open and available for charter, includes discount for lower utilization and increased idle time for the older ships and excludes the 4 larger Semi refrigerated vessels with delivery in

15 Attractive Valuation Listed Companies Comparables* P/NAV P/E (15E) EV/EBITDA (15E) Dorian LPG 0.8x 6.6x 6.7x GasLog 1.0x 17.2x 13.6x Golar LNG 1.4x 50.5x 41.2x Navigator Gas 1.4x 12.0x 9.4x Avance Gas 0.8x 4.4x 4.4x Average 1.1x 18.1x 15.1x StealthGas x 8.0x 7.2x StealthGas Discount to Comps -45% -56% -52% Note : StealthGas x 5.6x Source: Factset, Fearnley Research * Excludes our closest competitor Epic Gas 14

16 Q & A

17 Contacts Company Contact: Stavros Papantonopoulos Finance Manager StealthGas Inc Weekly LPG Market Report updated every Monday Comprehensive Investor Relations Information Visit our Website at: