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Issues 2015 Q2 results
STEALTHGAS INC. (NASDAQ:GASS), a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today its unaudited financial and operating results for the second quarter ended June 30, 2015.
Second quarter 2015 Results:
– Revenues for the three months ended June 30, 2015 amounted to $32.4 million, an increase of $0.5 million, or 1.6%, compared to revenues of $31.9 million for the three months ended June 30, 2014, primarily due to the net addition of 4 vessels which increased the number of operating vessels to 48 as of the end of June 2015.
– Voyage expenses and vessels’ operating expenses for the three months ended June 30, 2015 were $3.9 million and $11.4 million, respectively, compared to $3.5 million and $10.7 million, respectively, for the three months ended June 30, 2014. The $0.4 million increase in voyage expenses was primarily due to the higher number of vessels under spot charters in the 2015 period. As of the end of June 2015 the Company had 11 vessels operating in the spot market compared to 7 at the end of the 2014 period. It is noted that voyage expenses were positively affected during the second quarter of 2015 by the decline in oil prices, as bunker fuel costs marked only a moderate increase of 6% compared to the 2014 period, in spite of the increased spot market activity. The $0.7 million increase in vessels’ operating expenses was primarily attributable to the fleet expansion. The increased crew costs of this quarter due to the vessel additions, were partly offset by a decrease in stores and maintenance costs.
– Drydocking costs for the three months ended June 30, 2015 and June 30, 2014 were $0.4 million and $0.1 million respectively, representing the costs of one vessel being drydocked in each period. Overall, in 2015, the Company has scheduled for a remaining two vessels to be drydocked; however this number might increase as some vessels scheduled to be drydocked at the beginning of 2016 could potentially be accommodated at the end of 2015.
– Depreciation for the three months ended June 30, 2015, was $8.6 million, a $0.2 million increase from $8.4 million for the same period of last year. This increase was due to the additional depreciation for eight vessels joining the fleet from the second quarter of 2014 until the second quarter of 2015, which was partly offset by the decrease in depreciation caused by our Company’s decision to sell and lease back in Q4 2014 two of our LPG vessels, the Gas Cathar and the Gas Premiership, as well as our strategic decision to scrap, in April 2015, two of our oldest LPG carriers, the Gas Kaizen and the Gas Crystal.
– Included in the second quarter 2015 results are net losses from interest rate derivative instruments and foreign currency forward arrangements of $0.10 million. Interest paid on interest rate swap arrangements amounted to $0.25 million, and net gains from change in fair value of the same interest rate derivative instruments and foreign currency forward arrangements amounted to $0.15 million.
– The Company realized a $0.03 million gain on sale of vessels in the three months ended June 30, 2015. The Company also recorded an impairment loss of $3.6 million in the three months ended June 30, 2015, as a result of accounting for the possibility of scrapping one of its oldest vessels by the end of 2015.
– As a result of the above, the Company reported a net loss for the three months ended June 30, 2015 of $1.3 million, compared to a net income of $4.7 million for the three months ended June 30, 2014. The weighted average number of shares for the three months ended June 30, 2015 increased to 41.5 million compared to 38.2 million for the same period of last year. This was mainly due to the offerings of a total of 8.0 million shares in May and August of 2014, the effect of which was partly offset by the repurchase of 2.2 million shares since December 2014. Loss per share for the three months ended June 30, 2015 amounted to ($0.03) compared to earnings per share of $0.12 for the same period of last year.
– Adjusted net income was $2.4 million or $0.06 per share for the three months ended June 30, 2015 compared to $4.4 million or $0.12 per share for the same period of last year.
– and EBITDA to Net Income, and Adjusted EBITDA to Adjusted Net Income are set forth below.
– An average of 46.0 vessels were owned by the Company during the three months ended June 30, 2015, compared to 43.3 vessels for the same period of 2014.
Six Months 2015 Results:
– Revenues for the six months ended June 30, 2015, amounted to $68.1 million, an increase of $2.4 million, or 3.65%, compared to revenues of $65.7 million for the six months ended June 30, 2014, primarily due to the higher number of vessels in our fleet in the 2015 period.
– $23.1 million, respectively, compared to $6.6 million and $21.3 million for the six months ended June 30, 2014. The $3.3 million increase in voyage and operating expenses was primarily due to the higher number of vessels that operated in 2015. Increase in voyage expenses was partially offset by lower bunker prices, while operating expenses increase was mainly driven by our fleet expansion. Operating costs on a daily basis excluding Bareboat charters, decreased as a result of our fleet expansion with new eco LPG vessels, which generally are less expensive to operate and the continued implementation of efficient management policies.
– Drydocking Costs for the six months ended June 30, 2015 and 2014 were $0.4 million and $0.5 million, respectively, representing the costs of one vessel drydocked in each period.
– Depreciation for the six months ended June 30, 2015, was $17.0 million, a $0.5 million increase from $16.5 million for the same period of last year. This increase was due to the higher number of vessels in our fleet in the 2015 period.
– Included in the first six months of 2015 results are net losses from interest rate derivative instruments and foreign currency forward arrangements of $0.16 million. Interest paid on interest rate swap arrangements amounted to $0.66 million and gains from change in fair value of the same interest rate derivative instruments and foreign currency forward arrangements amounted to $0.50 million.
– The Company realized a $0.03 million gain on sale of vessels in the first six months of 2015. The Company also recorded an impairment loss of $3.6 million in the first six months of 2015, as a result of accounting for the possibility of scrapping one of our oldest vessels by the end of 2015.
– As a result of the above, the Company reported a net income for the six months ended June 30, 2015 of $4.6 million, compared to net income of $12.3 million for the six months ended June 30, 2014. The average number of shares outstanding as of June 30, 2015 increased to 41.8 million compared to 36.0 million for the same period of last year, mainly due to the offering of a total of 11.4 million shares in February, May and August of 2014, and the effect of which was partly offset by the repurchase of 2.2 million shares since December 2014. Earnings per share for the six months ended June 30, 2015 amounted to $0.11 compared to $0.34 for the same period of last year.
– Adjusted net income was $8.2 million or $0.20 per share for the six months ended June 30, 2015 compared to $11.6 million or $0.32 per share for the same period last year.
– EBITDA for the six months ended June 30, 2015 amounted to $26.6 million. Reconciliations of Adjusted Net Income and EBITDA to Net Income, and Adjusted EBITDA to Adjusted Net Income are set forth below. An average of 46.0 vessels were owned by the Company during the six months ended June 30, 2015, compared to 42.7 vessels for the same period of 2014.
– As of June 30, 2015, cash and cash equivalents amounted to $89.8 million and total debt amounted to $327.1 million. During the six months ended June 30, 2015 debt repayments amounted to $35.1 million.
