StealthGas Inc. Achieves Record Q2 2024 Results with Growth
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StealthGas Inc. Reports Strong Second Quarter Results for 2024
ATHENS, Greece — StealthGas Inc. (NASDAQ: GASS), a key player in the liquefied petroleum gas (LPG) shipping industry, has shared its impressive financial results for the second quarter and first half of 2024, revealing significant growth and strategic advancements.
Outstanding Operational and Financial Highlights
In a remarkable achievement, StealthGas reported a record quarterly net income of $25.8 million for Q2 2024. This figure represents a significant increase of 145.8% compared to the same period last year. This stellar performance translates to a basic earnings per share (EPS) of $0.70.
- The company experienced a revenue increase of 13.9% year-over-year, totaling $41.8 million.
- Voyage and operating expenses saw a decline, which contributed to a notable 59.5% increase in income from operations.
- StealthGas secured about 85% of its fleet days for the remainder of 2024 through period charters, resulting in $220 million in contracted revenues.
- The company continued its proactive debt repayment strategy, reducing its debt by $85.3 million in the first half of the year.
- As of June 30, 2024, StealthGas had cash and equivalents totaling $76.6 million, supporting further debt reduction initiatives.
Dive into the Second Quarter Financials
The financial results for the quarter ending June 30, 2024, highlighted some fascinating trends:
- Revenues rose to $41.8 million from $36.7 million year-over-year, benefiting from better market conditions and operational efficiency.
- Operating Expenses decreased significantly, with voyage expenses dropping to $2.7 million from $3.5 million.
- Drydocking costs came down to $0.6 million, connected to the completion of one vessel's drydocking.
- General and administrative expenses increased due to higher stock-based compensation, reaching $2.4 million, compared to last year’s $1.2 million.
- Depreciation rose slightly to $6.5 million, attributed to the replacement of older vessels with bigger, more costly ones.
- Notably, the net income surged to $25.8 million, a fantastic leap from the previous year’s $10.5 million, reflecting the company’s operational excellence.
- Basic and diluted earnings per share climbed to $0.70 from $0.27, showcasing solid financial health.
- Adjusted net income also saw a sharp increase to $27.5 million, corresponding to an adjusted EPS of $0.75, up from $10.7 million and $0.28, respectively, in the same quarter last year.
Highlights from the First Half of 2024
For the six months ending June 30, 2024, the company maintained a robust trajectory:
- Revenues climbed to $83.4 million, which marks an 11.6% increase compared to $74.7 million in the prior year.
- Operational costs continued to drop, with voyage expenses decreasing from $7.5 million to $5.5 million.
- Total drydocking costs for the first half were reported at $0.6 million, significantly lower than $2.6 million from the same period in 2023.
- General and administrative expenses jumped to $4.6 million, reflecting the added costs from stock-based compensation.
- Despite the rise in depreciation to $13.0 million, the financial position remained strong, with no impairment loss reported this year.
- The first half net income was a commendable $43.5 million, contrasted with $27.3 million last year, with earnings per share increasing accordingly.
- Adjusted net income reached $46.7 million, which gives an adjusted EPS of $1.28.
Fleet Updates and Market Outlook
Since the previous announcement, several chartering arrangements have been finalized, strengthening the company’s revenue position:
- Three-year time charter extensions for EkO Oracle and Gas Alice.
- New charters secured for Eco Invictus and Gas Cerberus.
As of September 2024, StealthGas has approximately $220 million in total contracted revenues, with 85% of fleet days secured for the rest of 2024 and 55% contracted for 2025.
CEO’s Perspective on Ongoing Success
In commentary, CEO Harry Vafias remarked on the record-breaking results, emphasizing the company’s continual focus on reducing operational costs while capitalizing on a robust chartering environment. The successful sales and strategic charters solidify StealthGas’s position in the vibrant LPG sector, maintaining a net debt ratio still below 5%.
Frequently Asked Questions
What did StealthGas report for Q2 2024 in terms of net income?
StealthGas reported a record net income of $25.8 million for the second quarter of 2024, marking a 145.8% increase from the previous year.
How did revenues for the first half of 2024 compare to the same period last year?
Revenues for the first half of 2024 amounted to $83.4 million, an increase of 11.6% compared to $74.7 million in the first half of 2023.
What measures has StealthGas taken regarding debt?
The company has proactively repaid $85.3 million in debt during the first half of 2024, aiming to enhance financial stability.
How successful are the company’s charter agreements?
StealthGas has successfully secured approximately 85% of its fleet days for the remainder of 2024 under period contracts.
What is the future outlook for the company?
The outlook appears strong with CEO Harry Vafias indicating bullish market sentiment and increased demand from charterers for longer terms, positioning StealthGas for sustained growth.
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