STEALTHGAS INC., a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced yesterday its unaudited financial and operating results for the second quarter and six months ended June 30, 2021.
OPERATIONAL AND FINANCIAL HIGHLIGHTS1
Fleet utilization of 98.1% – with 60 days of technical off hire mainly as a result of three drydockings completed within Q2 2021.
Operational utilization of 96.3%, a stronger performance compared to the first quarter of 2021, mainly due to the decreased activity in the spot market along with the reduction of commercial off hire days by 45%.
About 74% of fleet days secured on period charters for the remainder of 2021, with total fleet employment days for all subsequent periods generating approximately $66 million (excl. JV vessels) in contracted revenues. Period coverage for the remainder of Q3 21’ is currently 87%.
Agreement to sell two small LPG vessels – both for further trading.
Voyage revenues of $39.2 million in Q2 21’, an increase of $2.9 million compared to Q2 20’ mostly due to a 54% reduction of bareboat activity where revenues are by default lower than time charter and spot earnings.
Net income of $1.6 million for Q2 21’ corresponding to an EPS of $0.04 compared to net income of $8.9 million corresponding to an EPS of $0.23 in the same period of last year.
EBITDA of $14.2 million in Q2 21’ compared to $21.8 million in Q2 20’.
Adjusted EBITDA of $17.3 million in Q2 21’ compared to $22.4 million in Q2 20’- mainly due to higher voyage, operating and drydocking costs.
Low gearing, as debt to assets stands at 37.1%, and a reduction in finance costs by $1.8 million for the six months ended June 30, 2021 compared to the same period in prior year.
Total cash, including restricted cash, of $48.5 million.
Adjusted net Income of $4.8 million for Q2 21’ corresponding to an EPS of $0.13.
Second Quarter 2021 Results:
Revenues for the three months ended June 30, 2021 amounted to $39.2 million, an increase of $2.9 million, or 8.0%, compared to revenues of $36.3 million for the three months ended June 30, 2020, mainly due to six vessels, now operating either in the spot market or under a time charter contract which were employed on bareboat charters in the same period of last year.
Voyage expenses and vessels’ operating expenses for the three months ended June 30, 2021 were $6.0 million and $15.8 million, respectively, compared to $2.1 million and $11.6 million, respectively, for the three months ended June 30, 2020. The $3.9 million increase in voyage expenses is attributed to the 121% (or 486 days) increase in spot days. The 36.2% increase in vessels’ operating expenses compared to the same period of 2020, is a result of six fewer vessels on bareboat, which vessels are now operating either on time charter or in the spot market along with an increase of our daily crew costs crew due to the COVID-19 pandemic.
General and administrative expenses: for the three months ended June 30, 2021 and 2020 were $0.9 million and $0.5 million, respectively. This $0.4 milion increase compared to the same period of last year is primarily due to legal expenses and management fees paid to unaffiliated third parties.
Drydocking costs for the three months ended June 30, 2021 and 2020 were $2.0 million and $0.2 million, respectively. Drydocking expenses during the second quarter of 2021 relate to the drydocking of three vessels and to the drydocking preparation of four vessels compared to the drydocking in progress of one vessel in the same period of last year.
Depreciation for the three months ended June 30, 2021 and 2020 was $9.6 million and $9.2 million, respectively, due to the slight increase in the average number of our vessels.
Impairment loss for the three months ended June 30, 2021 was $3.1 million relating to three vessels, one older vessel plus two vessels for which the Company has entered into separate agreements to sell them to third parties. Impairment loss for the three months ended June 30, 2020 was $0.7 million relating to two of its oldest vessels.
Interest and finance costs for the three months ended June 30, 2021 and 2020 were $3.0 million and $3.7 million, respectively. The $0.7 million decrease from the same period of last year is mostly due to the decline of LIBOR rates.
Equity earnings in joint ventures for the three months ended June 30, 2021 and 2020 was a gain of $4.2 million and a gain of $1.9 million, respectively. The $2.3 million increase from the same period of last year is mainly due to the gain on sale of one of the vessels owned by the MGC joint venture arrangement.
As a result of the above, for the three months ended June 30, 2021, the Company reported net income of $1.6 million, compared to net income of $8.9 million for the three months ended June 30, 2020. The weighted average number of shares outstanding for the three months ended June 30, 2021 and 2020 was 37.9 million and 38.3 million, respectively. This decrease in the number of shares is a result of our share buyback program and the tender offer that was completed in April 2020.
Earnings per share, basic and diluted, for the three months ended June 30, 2021 amounted to $0.04 compared to earnings per share of $0.23 for the same period of last year.
Adjusted net income was $4.8 million or $0.13 per share for the three months ended June 30, 2021 compared to adjusted net income of $9.5 million or $0.25 per share for the same period of last year.
EBITDA for the three months ended June 30, 2021 amounted to $14.2 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
An average of 42.0 vessels were owned by the Company during the three months ended June 30, 2021 compared to 41.1 vessels for the same period of 2020.
Six Months 2021 Results:
Revenues for the six months ended June 30, 2021, amounted to $76.7 million, an increase of $6.1 million, or 8.6%, compared to revenues of $70.6 million for the six months ended June 30, 2020, primarily due to the reduction of our bareboat activity by 56% (equivalent to 1,166 days) where revenues are inherently lower.
Voyage expenses and vessels’ operating expenses for the six months ended June 30, 2021 were $12.9 million and $30.9 million, respectively, compared to $4.9 million and $24.8 million for the six months ended June 30, 2020. The $8.0 million increase in voyage expenses was mainly due to the 182% (or 1,318 days) increase of spot days. The $6.1 million increase in vessels’ operating expenses, is due to the seven vessels (six small LPGs and our aframax tanker), previously on bareboat, now operating either on time charter or in the spot market for which we incur operating costs along with a rise of crew related costs due to the COVID-19 pandemic.
General and administrative expenses: for the six months ended June 30, 2021 and 2020 were $1.8 million and $1.1 million, respectively. This $0.7 milion increase compared to the same period of last year is primarily due to legal expenses and management fees paid to unaffiliated third parties.
Drydocking costs for the six months ended June 30, 2021 and 2020 were $2.6 million and $0.4 million, respectively. The costs for the six months ended June 30, 2021 mainly related to the drydocking of four small LPG vessels, while the costs for the same period of last year related to the drydocking of one vessel.
Depreciation for the six months ended June 30, 2021, was $19.1 million, a $0.5 million increase from $18.6 million for the same period of last year, due to the slight increase in the average number of our vessels.
Impairment loss for the six months ended June 30, 2021 and 2020 was $3.1 million relating to three vessels, one older vessel plus two vessels for which the Company has entered into separate agreements to sell them to third parties. Impairment loss for the six months ended June 30, 2020 was $0.7 million relating to two of the Company’s oldest vessels.
Interest and finance costs for the six months ended June 30, 2021 and 2020 were $6.1 million and $7.9 million respectively. The $1.8 million decrease from the same period of last year, is mostly due to the decline of LIBOR rates, along with the decrease of our indebtedness.
Equity earnings in joint ventures for the six months ended June 30, 2021 and 2020 was a gain of $5.3 million and a gain of $2.5 million, respectively. The $2.8 million increase from the same period of last year is mainly due to the gain on sale of one of the vessels owned by the MGC joint venture arrangement.
As a result of the above, the Company reported a net income for the six months ended June 30, 2021 of $2.4 million, compared to a net income of $11.9 million for the six months ended June 30, 2020. The weighted average number of shares outstanding as of June 30, 2021 and 2020 was 37.9 million and 38.9 million, respectively. Earnings per share for the six months ended June 30, 2021 amounted to $0.06 compared to earnings per share of $0.31 for the same period of last year.
Adjusted net income was $5.4 million, or $0.14 per share, for the six months ended June 30, 2021 compared to adjusted net income of $12.6 million, or $0.32 per share, for the same period of last year.
EBITDA for the six months ended June 30, 2021 amounted to $27.6 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below. An average of 41.8 vessels were owned by the Company during the six months ended June 30, 2021, compared to 41.1 vessels for the same period of 2020.
As of June 30, 2021, cash and cash equivalents amounted to $33.0 million and total debt amounted to $352.1 million. During the six months ended June 30, 2021 debt repayments amounted to $47.6 million.
Fleet Update Since Previous Announcement
The Company announced the conclusion of the following chartering arrangements:
- A two-year time charter extension for its 2006 built LPG carrier the Gas Alice, to an International oil major up until August 2023.
- A one-year time charter for its 2015 built LPG carrier the Eco Green, to an International oil major up until June 2022.
- A six months’ time charter extension for its 2012 built LPG carrier the Gas Esco, to an International LPG trader up until March 2022.
- A six months’ time charter extension for its 2020 built LPG carrier the Eco Alice, to an International LPG trader up until January 2022.
- A six months’ time charter for its 2015 built LPG carrier the Eco Dream, to an International oil major up until December 2021.
- A three months’ time charter extension for its 2020 built LPG carrier the Eco Texiana, to an International LPG trader up until December 2021.
- A four months’ time charter for its 2011 built LPG carrier the Gas Cerberus, to an International LPG trader up until October 2021.
- A one month time charter for its 1997 built LPG carrier the Gas Monarch, to an International LPG trader up until September 2021.
- A one month time charter for its 2015 built LPG carrier the Eco Galaxy, to an International LPG trader up until September 2021.
- With these charters, the Company has total contracted revenues of approximately $66 million.
Total anticipated fleet days of our fleet is 74% covered with charter contracts for the remainder of 2021
Board Chairman Michael Jolliffe Commented
During the second quarter of 2021 we managed to improve our revenues and reduce our commercial off hire. In addition period activity picked up particularly for vessels above 5,000 cbm and consequently we were able to conclude and extend period charters and therefore reduce the number of spot vessels reaching nearly pre pandemic levels. However compared to the same period of last year we had six additional vessels concluding their bareboat charters thus adding to our operating cost base, we faced additional costs due to the COVID-19 pandemic, particularly crew expenses related to medical and crew changes. Additionally our voyage costs were burdened as daily bunker costs increased by 70% compared to the same period of last year. Added to this we underwent three drydockings at a time of strict yard restirctions, again due to the COVID-19 pandemic thus adding further to our costs.
Due to these reasons our revenue generation was not reflected in our operating profitability.
It is difficult to predict how our market will behave in the quarters ahead as the global economy due to the COVID-19 pandemic and related variants still remains fragile.
Nevertheless we own a strong and diversified fleet across the broader LPG spectrum, we enjoy adequate liquidity, further enhanced by our recent agreement to sell two small LPG vessels, and low debt levels which will allow us to gain leverage regardless on how the global economy will respond to the recent COVID-19 pandemic escalation.
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Source: StealthGas Inc.