4 th StealthGas Inc. th Quarter 2010 Results February 23 rd, 2010 CONSISTENCY & GREAT VALUE
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
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 2011 35% 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 Q4 2010 (net of realized loss on interest rate swaps) compared to $6,311 in Q3 2010 and $5,963 in Q2 2010. 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
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
Fleet Employment Profile 4
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 $30.0 million Conservative leverage: net debt to capitalization of 45.8% 5
Fourth Quarter 2010 Income Statement In US$ 000, except per share amounts Q4 2009 Q3 2010 Q4 2010 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 2,270 942 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 0.10 0.04 0.12 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
Fourth Quarter 2010 Operating Highlights Fleet Data & Daily Results Fleet Data Q4 2009 Q4 2010 FY 2009 FY 2010 Average number of vessels in fleet 42.8 38.0 42.0 38.6 Period end number of vessels in fleet 42 38 42 38 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 957 865 2,964 3,508 Fleet operational utilization 86.8% 92.2% 90.2% 87.3% Average Daily Results (in $) Q4 2009 Q4 2010 FY 2009 FY 2010 Time Charter Equivalent TCE $7,324* $8,024* $7,712* $7,810* Vessel Operating Expenses 3,473* 3,643* 3,464* 3,571* Management Fees 355 379 341 368 General & Administrative Expenses 198 235 232 215 Total Vessel Operating Expenses 3,671* 3,878* 3,696* 3,786* * Assuming no vessels on Bareboat Charter 7
Daily Breakeven Q4 2010 & FY 2010 Daily Cash Flow and Net Income Breakeven Composition ($ per vessel per day) Q4 2010 fleet calendar days: 3,496 FY 2010 fleet calendar days: 14,075 Q4 2010 Q4 2010 Cash Flow Net Income FY 2010 FY 2010 Cash Flow Net Income 8
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 $0.40 per share before non cash gain on interest rate swaps and foreign currency hedging arrangements, gain on sale of vessel, gain on unrealized exchange difference and stock-based compensation) on 21.6 million shares outstanding. Debt to market value of existing fleet among the lowest of quoted U.S. shipping companies. 9
Full Year 2010 Income Statement In US$ 000, except per share amounts 12 Months 2009 12 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 0.71 0.40 Number of Shares, basic 22,219,442 21,553,659 10
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
USD 1000's per month LPGC Freight Rates Average earnings in the spot market excluding waiting time / 1 yr TC rates 800 700 600 500 400 300 200 100 INGE STEENSLAND AS 2003 2004 2005 2006 2007 2008 2009 2010 2011 15000 SR TCE 8000 ETH TCE 6500 SR TCE 3500 SR 1yr TC 3500 PR 1yr TC east Source: Inge Steensland AS 12
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
Charter Market Rate Indicator (12 Month TCs) Q4 2010 Average Current Q1 2011 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 256,000 270,000 270,000 232,000 248,000 255,000 265,000 295,000 310,000 450,000 450,000 450,000 514,000 525,000 540,000 591,000 620,000 650,000 650,000 650,000 650,000 711,000 725,000 725,000 Source: Lorentzen & Stemoco 14
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 TC equiv. spot earnings TC rates in USD 1000's per month (lines) Fleet growth in % (bars) 3000-7999 cbm Fleet Development Vs. TC Rates/Earnings* 600 15% 500 400 10% 300 5% 200 100 0% - INGE STEENSLAND AS -5% Overall 3000-7999 fleet growth S/R 3000-7999 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
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
Shipping Sector Value Comparison Company Name Symbol LT Debt/CAP NAV P/NAV Latest Price StealthGas Inc. GASS 48.0% $13.00 0.51x 6.59 Diana Shipping Inc. * DSX 23.0% $13.75 1.01x 12.56 DryShips Inc. * DRYS 47.0% $7.35 0.62x 4.88 Nordic American Tanker Shipping Ltd. * NAT 5.0% $14.6 1.70x 24.63 Double Hull Tankers * DHT 58.0% $4.76 1.01x 4.85 Crude Carriers * CRU 32.0% $19.00 0.81x 15.43 * Source: for LT/Cap and NAV Cantor & Fitzgerald & Co., as of February 14 th, 2011 17
Contacts Company Contact: Konstantinos Sistovaris Chief Financial Officer StealthGas Inc. 011-30-210-6250-001 E-mail: sistovaris@stealthgas.com www.stealthgas.com Visit our Website at: www.stealthgas.com Weekly LPG Market Report updated every Monday Comprehensive Investor Relations Information 18