UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2024

Commission File Number 001-36797

 

 

STEALTHGAS INC.

(Translation of registrant’s name into English)

 

 

331 Kifissias Avenue Erithrea 14561 Athens, Greece

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒    Form 40-F ☐

 

 

 

Financial and Operating Results for the three months ended March 31, 2024

The press release issued by StealthGas Inc. (the “Company”) on May 22, 2024 announcing its financial and operating results for the three months ended March 31, 2024, is attached hereto as Exhibit 99.1.

EXHIBIT INDEX

 

99.1    StealthGas Inc. Press Release dated May 22, 2024

****

This report on Form 6-K (other than the section of exhibit 99.1 hereto entitled “CEO Harry Vafias Commented”) is hereby incorporated by reference into the Company’s Registration Statement on Form F-3 (Reg. No. 333-143804) and Registration Statements on Form S-8 (Reg. Nos. 333-144240, 333-207168 and 333-278984).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 23, 2024

 

STEALTHGAS INC.
By:   /s/ Harry Vafias
Name:   Harry Vafias
Title:   Chief Executive Officer

Exhibit 99.1

 

LOGO

STEALTHGAS INC. REPORTS FIRST QUARTER 2024 FINANCIAL AND OPERATING RESULTS

ATHENS, GREECE, May 22, 2024. STEALTHGAS INC. (NASDAQ: GASS), a ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today its unaudited financial and operating results for the first quarter ended March 31, 2024.

OPERATIONAL AND FINANCIAL HIGHLIGHTS

 

  •  

All-time record quarterly Net Income of $17.7 million for the first quarter of 2024, a 5.4% increase compared to last year’s first quarter, corresponding to a basic EPS of $0.49.

 

  •  

Revenues increased by 9.2% compared to the same period of last year to $41.6 million. Voyage and operating expenses decreased by 22.7% and Income from operations increased by 80.0% compared to the same period of last year.

 

  •  

Further increased period coverage. About 73% of fleet days for remainder of 2024 are secured on period charters, with total fleet employment days for all subsequent periods generating over $180 million (excl. JV vessels) in contracted revenues.

 

  •  

Continued to repay debt, making $32.0 million in debt repayments during the first quarter and $53.3 million so far during the second quarter.

 

  •  

Maintaining ample cash and cash equivalents (incl. restricted cash) of $83.6 million as of March 31, 2024 enabling the Company to further reduce debt.

First Quarter 2024 Results:

 

  •  

Revenues for the three months ended March 31, 2024 amounted to $41.6 million compared to revenues of $38.1 million for the three months ended March 31, 2023, an increase of $3.5 million, or 9.2%, while the number of vessels in our fleet declined to 27 vessels at the end of Q1 2024 from 32 vessels at the end of Q1 2023. The vessels remaining in the fleet earned higher revenues compared to the same period in the prior year mainly due to improved market conditions.

 

  •  

Voyage expenses and vessels’ operating expenses for the three months ended March 31, 2024 were $2.9 million and $11.5 million, respectively, compared to $4.0 million and $14.5 million, respectively, for the three months ended March 31, 2023. The $1.1 million, or 28%, decrease in voyage expenses was the result of the reduction in spot market days, while the $3.0 million, or 21%, decrease in vessels’ operating expenses was mainly due to the decrease in the average number of owned vessels in our fleet.

  •  

Drydocking costs for the three months ended March 31, 2024 and 2023 were nil and $1.1 million, respectively. No vessels were drydocked during the first quarter of 2024, while drydocking expenses during the first quarter of 2023 mainly relate to the drydocking of one vessel and preparation of others.

 

  •  

Management fees for the three months ended March 31, 2024 and 2023 were $1.1 million and $1.2 million, respectively. The change is attributed to the decrease in the average number of owned vessels in our fleet.

 

  •  

General and administrative expenses for the three months ended March 31, 2024 and 2023 were $2.2 million and $0.8 million, respectively. The change is mainly attributed to the increase in stock-based compensation expense.

 

  •  

Depreciation for the three months ended March 31, 2024 and 2023 was $6.5 million and $6.6 million, respectively, slightly decreased due to the lower average number of vessels owned compared to the same period in 2023, partly offset by the depreciation attributable to the two new 40,000 cbm LPG carriers acquired in the first quarter of 2024.

 

  •  

Interest and finance costs for the three months ended March 31, 2024 and 2023 were $3.2 million and $2.6 million, respectively. The $0.6 million, or 23%, increase from the same period of last year is mostly due to the reduction of income from closing of interest rate swap positions as a result of debt prepayments and due to the increase in variable interest rates.

 

  •  

Interest income for the three months ended March 31, 2024 and 2023 was $0.8 million and $1.0 million, respectively. The decrease is mainly attributed to decreases in time deposits over the corresponding period.

 

  •  

Equity earnings in joint ventures for the three months ended March 31, 2024 and 2023 was a gain of $2.6 million and $8.8 million, respectively. The $6.2 million decrease from the same period of last year is mainly due to the profitable sale of a vessel during the first quarter of 2023 by one of the joint ventures.

 

  •  

As a result of the above, for the three months ended March 31, 2024 the Company reported net income of $17.7 million, compared to net income of $16.8 million for the three months ended March 31, 2023, an increase of $0.9 million, or 5%. The weighted average number of shares outstanding, basic, for the three months ended March 31, 2024 and 2023 was 35.1 million and 38.0 million, respectively.

 

  •  

Earnings per share, basic, for the three months ended March 31, 2024 amounted to $0.49 compared to earnings per share of $0.44 for the same period of last year.

 

  •  

Adjusted net income1 was $19.1 million corresponding to an Adjusted EPS1 of $0.53 for the three months ended March 31, 2024 compared to Adjusted net income of $17.3 million corresponding to an Adjusted EPS of $0.45 for the same period of last year.

 

  •  

EBITDA1 for the three months ended March 31, 2024 amounted to $26.6 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA1 to Net Income are set forth below.

 

  •  

An average of 27.04 vessels were owned by the Company during the three months ended March 31, 2024 compared to 32.26 vessels for the same period of 2023.

Fleet Update Since Previous Announcement

The Company announced the conclusion of the following chartering arrangements (of three or more months duration):

 

  •  

A three years time charter extension for its 2014 built LPG carrier Eco Elysium, until May 2027.

 

  •  

A twelve months time charter extension for its 2014 built LPG carrier Eco Stream, until Jun 2025 with a charterer’s option to extend for a further twelve months.

 

  •  

A twelve months time charter extension for its 2016 built LPG carrier Eco Nical, until Apr 2025.

 

  •  

A six months time charter for its 2011 built LPG carrier Gas Elixir, until Oct 2024.

 

  •  

A three months time charter for its 2018 built LPG carrier Eco Arctic, until Jul 2024 with a charterer’s option to extend for a further three months.

 

1

EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Refer to the reconciliation of these measures to the most directly comparable financial measure in accordance with GAAP set forth later in this release.

As of May 2024, the Company has total contracted revenues of approximately $180 million.

For the remainder of the year 2024 the Company has circa 73% of fleet days secured under period contracts, and 30% for the year 2025.

In addition, the following charter arrangements were concluded for the joint venture vessels:

 

  •  

A twelve months time charter extension for the 2015 built LPG carrier Eco Lucidity, until Apr 2025.

 

  •  

A six months time charter for the 2008 built LPG carrier Gas Defiance, until Dec 2024.

The previously announced sale of the joint venture vessel Eco Ethereal was concluded in late April 2024 and the Company received a $24 million interim distribution from the joint venture.

CEO Harry Vafias Commented

Today we announce yet another record breaking quarter. Profits of $17.7 million for the first quarter of 2024 are an all time high for our company in the 20 years since its inception. These exceptional results were mainly driven by higher revenues and reduced expenses, and the two MGC vessels that were added to the fleet immediately started producing results. The reduced share count as a result of the share buybacks further enhances the bottom line on an earnings per share basis. In the current quarter we have so far repaid over $53 million of debt and now have 23 unencumbered vessels and a debt ratio below 15%. We continue to benefit from the positive market backdrop and we look forward to continue rewarding our shareholders’ trust with more positive quarters.

Conference Call details:

On May 22, 2024 at 11:00 am ET, the company’s management will host a conference call to discuss the results and the company’s operations and outlook.

Conference call participants should pre-register using the below link to receive the dial-in numbers and a personal PIN, which are required to access the conference call.

Online Registration:

https://register.vevent.com/register/BIfef0702d7f65423ca8c51fdafd4f6556

Slides and audio webcast:

There will also be a live and then archived webcast of the conference call, through the STEALTHGAS INC. website (www.stealthgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About STEALTHGAS INC.

StealthGas Inc. is a ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry. StealthGas Inc. has a fleet of 32 LPG carriers, including five Joint Venture vessels in the water. These LPG vessels have a total capacity of 354,188 cubic meters (cbm). StealthGas Inc.’s shares are listed on the Nasdaq Global Select Market and trade under the symbol “GASS.”

Visit our website at www.stealthgas.com

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, including those related to future revenues and profitability, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although STEALTHGAS INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, STEALTHGAS INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in STEALTHGAS INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, the conflict in Ukraine and related sanctions, the conflict in Israel and Gaza, potential disruption of shipping routes due to ongoing attacks by Houthis in the Red Sea and Gulf of Aden or accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by STEALTHGAS INC. with the U.S. Securities and Exchange Commission.

Fleet List

For information on our fleet and further information:

Visit our website at www.stealthgas.com

Company Contact:

Konstantinos Sistovaris

Investor Relations

STEALTHGAS INC.

00-30-210-6250-001

E-mail: info@stealthgas.com

Fleet Data:

The following key indicators highlight the Company’s operating performance during the periods ended March 31, 2023 and March 31, 2024.

 

FLEET DATA

    Q1 2023     Q1 2024  

Average number of vessels (1)

      32.26       27.04  

Period end number of owned vessels in fleet

      32       27  

Total calendar days for fleet (2)

      2,903       2,461  

Total voyage days for fleet (3)

      2,871       2,439  

Fleet utilization (4)

      98.9 %      99.1 % 

Total charter days for fleet (5)

      2,625       2,232  

Total spot market days for fleet (6)

      246       207  

Fleet operational utilization (7)

      97.3 %      97.7 % 

 

1)

Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.

2)

Total calendar days for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.

3)

Total voyage days for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.

4)

Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.

5)

Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.

6)

Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.

7)

Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days excluding commercially idle days by fleet calendar days for the relevant period.

Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS:

Adjusted net income represents net income before gain/loss on derivatives excluding swap interest paid/received, impairment loss, net gain/loss on sale of vessels and share based compensation. EBITDA represents net income before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents net income before interest and finance costs, interest income, depreciation, impairment loss, net gain/loss on sale of vessels, share based compensation and gain/loss on derivatives.

Adjusted EPS represents Adjusted net income divided by the weighted average number of shares. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries. In evaluating Adjusted EBITDA, Adjusted net income and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.

EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we and our investors assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide investors with a means of better evaluating and understanding our operating performance.

 

(Expressed in United States Dollars,

except number of shares)

    Three Months Period Ended
March 31,		  
     2023      2024  

Net Income—Adjusted Net Income

      

Net income

      16,816,191        17,729,716  

Plus/(Less) loss/(gain) on derivatives

      62,314        (99,286 ) 

Plus swap interest received

      193,318        208,127  

Plus/(Less) net loss/(gain) on sale of vessels, net

      23,354        (46,384 ) 

Plus impairment loss

      57,319        —   

Plus share based compensation

      175,569        1,345,409  

Adjusted Net Income

      17,328,065        19,137,582  

Net income—EBITDA

      

Net income

      16,816,191        17,729,716  

Plus interest and finance costs

      2,622,686        3,169,061  

Less interest income

      (1,040,944 )       (753,396 ) 

Plus depreciation

      6,578,366        6,492,376  

EBITDA

      24,976,299        26,637,757  

Net income—Adjusted EBITDA

      

Net income

      16,816,191        17,729,716  

Plus/(Less) loss/(gain) on derivatives

      62,314        (99,286 ) 

Plus/(Less) net loss/(gain) on sale of vessels, net

      23,354        (46,384 ) 

Plus impairment loss

      57,319        —   

Plus share based compensation

      175,569        1,345,409  

Plus interest and finance costs

      2,622,686        3,169,061  

Less interest income

      (1,040,944 )       (753,396 ) 

Plus depreciation

      6,578,366        6,492,376  

Adjusted EBITDA

      25,294,855        27,837,496  

EPS—Adjusted EPS

      

Net income

      16,816,191        17,729,716  

Adjusted net income

      17,328,065        19,137,582  

Weighted average number of shares, basic

      38,030,309        35,119,500  

EPS—Basic

      0.44        0.49  

Adjusted EPS—Basic

      0.45        0.53  

StealthGas Inc.

Unaudited Condensed Consolidated Statements of Income

(Expressed in United States Dollars, except for number of shares)

 

     For The Three Months Ended March 31,  
     2023     2024  

Revenues

     

Revenues

      38,062,170       41,563,908  

Expenses

     

Voyage expenses

      3,518,691       2,345,200  

Voyage expenses—related party

      473,682       513,247  

Vessels’ operating expenses

      14,288,781       11,235,359  

Vessels’ operating expenses—related party

      257,500       241,500  

Drydocking costs

      1,090,042       —   

Management fees—related party

      1,234,120       1,053,719  

General and administrative expenses

      808,929       2,213,853  

Depreciation

      6,578,366       6,492,376  

Impairment loss

      57,319       —   

Net loss/(gain) on sale of vessels

      23,354       (46,384 ) 
  

 

 

    

 

 

  

Total expenses

      28,330,784       24,048,870  
  

 

 

    

 

 

  

Income from operations

      9,731,386       17,515,038  
  

 

 

    

 

 

  

Other (expenses)/income

     

Interest and finance costs

      (2,622,686 )      (3,169,061 ) 

(Loss)/gain on derivatives

      (62,314 )      99,286  

Interest income

      1,040,944       753,396  

Foreign exchange loss

      (104,326 )      (49,044 ) 
  

 

 

    

 

 

  

Other expenses, net

      (1,748,382 )      (2,365,423 ) 
  

 

 

    

 

 

  

Income before equity in earnings of investees

      7,983,004       15,149,615  

Equity earnings in joint ventures

      8,833,187       2,580,101  
  

 

 

    

 

 

  

Net Income

      16,816,191       17,729,716  
  

 

 

    

 

 

  

Earnings per share

     

- Basic

      0.44       0.49  
  

 

 

    

 

 

  

-Diluted

      0.44       0.49  
  

 

 

    

 

 

  

Weighted average number of shares

     

- Basic

      38,030,309       35,119,500  

- Diluted

      38,030,309       35,247,529  
  

 

 

    

 

 

  

StealthGas Inc.

Unaudited Condensed Consolidated Balance Sheets

(Expressed in United States Dollars)

 

     December 31,
2023		     March 31,
2024		  

Assets

     

Current assets

     

Cash and cash equivalents

      77,202,843       77,085,417  

Receivable from related parties

      —        448,610  

Trade and other receivables

      4,506,741       4,484,464  

Other current assets

      130,589       1,396  

Claims receivable

      55,475       55,475  

Inventories

      1,979,683       1,872,655  

Advances and prepayments

      1,409,418       1,569,161  

Restricted cash

      659,137       —   

Assets held for sale

      34,879,925       —   
  

 

 

    

 

 

  

Total current assets

      120,823,811       85,517,178  
  

 

 

    

 

 

  

Non current assets

     

Advances for vessel acquisitions

      23,414,570       —   

Operating lease right-of-use assets

      99,379       74,634  

Vessels, net

      504,295,083       617,632,086  

Other receivables

      48,040       105,460  

Restricted cash

      5,893,721       6,550,540  

Investments in joint ventures

      39,671,603       42,251,704  

Deferred finance charges

      1,105,790       —   

Fair value of derivatives

      1,858,677       804,150  
  

 

 

    

 

 

  

Total non current assets

      576,386,863       667,418,574  
  

 

 

    

 

 

  

Total assets

      697,210,674       752,935,752  
  

 

 

    

 

 

  

Liabilities and Stockholders’ Equity

     

Current liabilities

     

Payable to related parties

      955,567       —   

Trade accounts payable

      9,953,137       9,479,109  

Accrued liabilities

      5,681,144       5,921,347  

Operating lease liabilities

      71,173       74,634  

Deferred income

      5,386,126       7,339,669  

Current portion of long-term debt

      16,624,473       15,185,485  
  

 

 

    

 

 

  

Total current liabilities

      38,671,620       38,000,244  
  

 

 

    

 

 

  

Non current liabilities

     

Operating lease liabilities

      28,206       —   

Deferred income

      1,928,712       663,769  

Long-term debt

      106,918,176       145,442,266  
  

 

 

    

 

 

  

Total non current liabilities

      108,875,094       146,106,035  
  

 

 

    

 

 

  

Total liabilities

      147,546,713       184,106,279  
  

 

 

    

 

 

  

Commitments and contingencies

     

Stockholders’ equity

     

Capital stock

      453,434       454,684  

Treasury stock

      (44,453,836 )      (44,792,012 ) 

Additional paid-in capital

      446,938,868       448,639,277  

Retained earnings

      145,993,681       163,723,397  

Accumulated other comprehensive income

      731,814       804,127  
  

 

 

    

 

 

  

Total stockholders’ equity

      549,663,961       568,829,473  
  

 

 

    

 

 

  

Total liabilities and stockholders’ equity

      697,210,674       752,935,752  
  

 

 

    

 

 

  

StealthGas Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

(Expressed in United States Dollars)

 

     For The Three Months Ended March 31,  
     2023     2024  

Cash flows from operating activities

     

Net income for the period

      16,816,191       17,729,716  

Adjustments to reconcile net income to net cash provided by operating activities:

     

Depreciation

      6,578,366       6,492,376  

Amortization of deferred finance charges

      329,383       258,295  

Non-cash lease expense

      23,189       24,745  

Share based compensation

      175,569       1,345,409  

Change in fair value of derivatives

      385,655       108,840  

Proceeds from disposal of interest rate swaps

      —        1,018,000  

Equity earnings in joint ventures

      (8,833,187 )      (2,580,101 ) 

Impairment loss

      57,319       —   

Loss/(Gain) on sale of vessels

      23,354       (46,384 ) 

Changes in operating assets and liabilities:

     

(Increase)/decrease in

     

Trade and other receivables

      1,799,807       (35,143 ) 

Other current assets

      183,299       129,193  

Inventories

      762,634       353,756  

Changes in operating lease liabilities

      (23,189 )      (24,745 ) 

Advances and prepayments

      (19,504 )      (159,743 ) 

Increase/(decrease) in

     

Balances with related parties

      (214,731 )      (1,390,625 ) 

Trade accounts payable

      2,060,374       (475,368 ) 

Accrued liabilities

      118,849       240,202  

Deferred income

      (545,247 )      688,600  
  

 

 

    

 

 

  

Net cash provided by operating activities

      19,678,131       23,677,023  
  

 

 

    

 

 

  

Cash flows from investing activities

     

Insurance proceeds

      126,666       —   

Proceeds from sale of vessels, net

      9,416,242       34,679,584  

Acquisition and improvement of vessels

      (71,729 )      (96,413,470 ) 

Advances to joint ventures

      —        (1,705 ) 

Maturity in short term investments

      15,000,000       —   
  

 

 

    

 

 

  

Net cash provided by/(used in) investing activities

      24,471,179       (61,735,591 ) 
  

 

 

    

 

 

  

Cash flows from financing activities

     

Proceeds from exercise of stock options

      —        356,250  

Stock repurchase

      —        (338,176 ) 

Deferred finance charges paid

      (215,833 )      (22,167 ) 

Advances from/(to) joint ventures

      2,698       (11,848 ) 

Loan repayments

      (32,021,772 )      (32,045,235 ) 

Proceeds from long-term debt

      —        70,000,000  
  

 

 

    

 

 

  

Net cash (used in)/provided by financing activities

      (32,234,907 )      37,938,824  
  

 

 

    

 

 

  

Net increase/(decrease) in cash, cash equivalents and restricted cash

      11,914,403       (119,744 ) 

Cash, cash equivalents and restricted cash at beginning of period

      69,154,944       83,755,701  
  

 

 

    

 

 

  

Cash, cash equivalents and restricted cash at end of period

      81,069,347       83,635,957  
  

 

 

    

 

 

  

Cash breakdown

     

Cash and cash equivalents

      69,827,552       77,085,417  

Restricted cash, current

      1,802,116       —   

Restricted cash, non current

      9,439,679       6,550,540  
  

 

 

    

 

 

  

Total cash, cash equivalents and restricted cash shown in the statements of cash flows

      81,069,347       83,635,957  
  

 

 

    

 

 

  
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