3 rd Quarter 2013 Results November 22th, 2013

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1 3 rd Quarter 2013 Results November 22th, 2013

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

3 Business Strategy Fully-Pressurized LPG Fleet Market Share 1 Built-In Growth (15 NBs LPG) Remaining Capex: $240mil Available cash: $90mil Leverage: 60-70% ($200mil) Current Fleet: 38 LPG Vessels Current Fleet NBs LPG vessels 1 Targeted Fleet: ~55-60 LPG Vessels Leading owner of Handysize LPG vessels Maintain a modern fleet. Average age of current LPG fleet 11 years. Maintain moderate leverage with net debt to cap around 55-60%. Maintain a visible revenue stream: 90% voyage days fixed for 2013, 64% for 2014 and 31% for 2015 Maintain cost efficient operations with the lowest breakeven operating cost in the industry StealthGas has significantly greater scale than its second largest competitor and expects to continue to capture market share 2 1 Market share data for 3,000 8,000 cbm LPG vessels only

4 Fleet Development Current fleet of 38 LPG vessels, 3 product tankers and 1 aframax tanker Contracted 15 eco-type LPG vessels Investments in modern vessels and newbuilding LPG carriers 3

5 2013 Q3 Income Statement In US$ 000, except per share amounts Q Q M M 2013 Net Revenues $30,357 $29,738 $88,627 $89,449 Voyage Costs 3,547 2,895 8,848 10,984 Running Costs 7,699 9,852 22,858 26,514 Operating Income 9,448 6,132 29,447 21,429 Net Income 6,634 4,147 21,199 15,685 Net Income, adjusted 5,793 3,700 17,469 13,462 Drydocking Costs 262,8 1,086 2,046 2,457 EBITDA 17,594 14,446 53,326 46,452 EPS EPS, adjusted Number of Shares, diluted 20,552,568 32,052,568 20,552,568 26,997,623 4

6 Balance Sheet December 31, September 30, Cash and Cash Equivalents incl. restricted 50,913, ,822,265 Current Assets excl. cash 6,649,752 9,281,386 Advances for vessels under construction 19,321,045 46,283,936 Vessels, net 634,634, ,112,848 Other assets 1,519,908 1,994,165 Total Assets 713,039, ,494,600 Current portion of long term debt 35,787,544 72,873,605 Current Liabilities 20,021,170 22,126,786 Long Term Debt 309,564, ,673,584 Other Liabilities 5,632,107 3,792,450 Stockholders' Equity 342,033, ,028,175 Total Liabilities and Stockholders Equity 713,039, ,494,600 5

7 2013 Q3 Operating Highlights Fleet Data Q Q M M 2013 Average number of vessels in fleet Period end number of vessels in fleet Total calendar days for fleet 3,404 3,735 10,090 10,535 Total voyage days for fleet 3,388 3,665 9,941 10,376 Fleet utilization 99.5% 98.1% 98.5% 98.5% Total charter days for fleet 2,883 3,025 8,714 8,531 Total spot market days for fleet ,227 1,845 Fleet operational utilization 95.7% 87.0% 95.3% 91.4% Average Daily Results (in $) Q Q M M 2013 Time Charter Equivalent TCE $9,799* $8,817* $9,798* $9,135* Vessel Operating Expenses 4,122 4,321* 4,155* 4,308* Management Fees General & Administrative Expenses Total Vessel Operating Expenses 4,411* 4,496* 4,369* 4,488* * Assuming no vessels on Bareboat Charter 6

8 Fleet Employment Profile 7 39 vessels out of 42 on period charters to secure visible revenue stream $183 million in secured revenues

9 What is LPG? StealthGas Seaborne Trade Model LPG is the World s Most Multi-Purpose Energy: accessible, environmentally friendly, available supply, less expensive than other fuel sources 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 transports LPG/Petchem Currently ~60% of our ships trade in the Far East, ~30% in Europe and ~10% in the Gulf of Mexico / Caribbean 8

10 LPG Shipping is a Resilient and Growing Sector LPG Production by Region 2012 & 2016 LPG Consumption by Region 2012 & 2016 Key Drivers LPG Seaborne Trade Forecast GDP growth in emerging economies Growth in demand for LNG creates by-product that needs to be shipped (too expensive to store) Increasing distance between feedstock supplies, LPG production and end-users U.S. shale gas driving increased trade volumes 9 Source: MSI, EIA

11 LPG Imports and Exports Regions Exporting LPG The Middle East continues to account for >50% of total exports U.S. market share of global seaborne LPG exports is steadily increasing and forecasted to triple by 2016 to 12.1mm tons (11% global total), up from 4.5mm tons in 2011 (4% global total) Regions Importing U.S LPG U.S. LPG exports primarily going to Mexico, Central and South America and Europe. Increased demand likely to come from the Far East The Panama Canal will play a key role in reducing vessel travel time and increase the likelihood of U.S. LPG exports to Asia 10 Source: IHS, Facts Global Energy

12 U.S. Shale Gas - The Game Changer U.S. Net Exports of LPG EIA projects that the U.S. will continue to be a net exporter of LPG through 2040, mainly because of continued increases in natural gas and oil production. U.S. LPG Trade: International Prices Support Exports LPG needs to be shipped due to limited domestic demand, high storage cost and the Kyoto Protocol s prohibition of gas flaring The price differential between US propane, the Far East and Europe is ~ 40-45% which keeps inquiry for exports rather high US exports of propane have averaged 250,000 bpd vs 165,000 bpd during the first half of 2013 and 120,000 bpd during 2012 Global Propane Price 11 Source: EIA, Argus

13 Limited LPG Fleet Growth Age Profile Orderbook as % of Fleet 1 35,0% 30,0% 31,0% 25,0% 20,0% 19,8% 19,0% 15,0% 12,8% 10,0% 9,7% 2 9,2% 5,0% 0,0% LNG Container Dry Bulk Product Tankers Crude Tankers LPG (3-8k cbm) 2 Our niche LPG shipping segments remains smaller than other sector More than 20% of the 3,000 8,000 cbm fleet is 20+ years old Small orderbook and strong demand dynamics support stable charter rates 12 1 By number of vessels 2 Fully-pressurized fleet and semi-ref Source: Banchero Costa, Clarksons Research Services

14 Limited LPG Fleet Growth Has Led to Greater Charter Rate Stability LPG Timecharter Rates Historically Less Volatile ($ Thousands / Month) $2,500 5k CBM Pressurized (Trading East) Tanker Earnings Dry Bulk Earnings $2,000 $1,500 $1,000 $500 $0 2 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 LPG time charter rates have remained far more stable than those of peer sectors The small orderbook and strong demand dynamics support stable charter rates and high utilization LPG charter rates volatility history: $7,000 during the bottom of the cycle vs $13,000 at the peak Average all inclusive Breakeven is at ~$6,000 LPG time charter rates have remained far more stable than those of peer sectors 13 Source: Clarksons Research Services

15 Q & A

16 Appendix - Indicative EBITDA calculator Fleet Data Q1-Q2-Q Q Contracted Gross revenues $89.5mil $28.2mil Spot Revenues N/A? Commissions (Voyage Expenses) $2.4mil? Other Voyage Expenses (Spot vessels) $8.6mil? Total Days 10, Available Days 10, Spot Days N/A 370 Bareboat Days N/A 1290 TCE Revenues $78.5mil? -Operating Expenses $26.5mil $10.0 -Dry-dock $2.5mil $0.75 -Management Fees $3.5mil $1.3 -G&A $1.8mil $0.6 EBITDA (adj) Average Daily Results (in $) $46.5mil Operating Expenses (excl vsls on bb) 4,308 Dry-dock 5 vessels 2 vessels

17 Appendix Listed Companies Comparables Company P/NAV EV/EBITDA 2015 P/EPS 2014 GASLOG (GLOG) 115.7% 7.8x 13.6x GOLAR LNG (GLNG) 143.4% 7.5x 23.1x SCORPIO TANKERS (STNG) 155.7% 4.2x 24.5x CAPITAL PRODUCT PARTNERS (CPLP) 168.1% 10.8x 20.3x TEEKAY TANKERS (TNK) 153.7% 11.3x 69.0x SAFE BULKERS (SB) 153.9% 7.1x 9.6x DYNAGAS LNG (DLNG) 153.9% 11.6x 9.6x AVANCE GAS (AGHL) 137.0% 9.5x 13.4x DORIAN LPG (DORIAN LPG) 120.0% 13.0x 46.6x STEALTHGAS (GASS) 94.0% 5.9x 10.2x

18 Contacts Company Contact: Harry Charogiannis Chief Financial Officer StealthGas Inc Weekly LPG Market Report updated every Monday Comprehensive Investor Relations Information Visit our Website at: