StealthGas, Inc.

Thank you for standing by. Welcome to the Stealth Gas third quarter 2025 results conference call. At this time, all participants are in listen-only mode. Please be advised that this conference is being recorded. I would now like to hand the conference over to our speaker today, Harry Vafias, CEO of the Stealth Gas. Please go ahead.

Good morning, everybody, and welcome to our Q3 2025 earnings conference call. This is Harry Vafias, the CEO of And joining me today is Mrs. Sistovares from our investor relations. Before we commence our presentation, I'd like to remind you that we'll be discussing forward-looking statements which reflect current views with respect to future events and financial performance and are subject to material risks and uncertainties. So if you could all take a moment to read our disclaimer on slide two of this presentation. Risks are further disclosed in our filings with the SEC. So let's proceed with slide three. I'll give you some highlights. In our LPG market, the third quarter is traditionally the weakest quarter due to the seasonality in demand. This was the case this year as well, and we did incur increased idle time on the spot vessels. Despite that, the revenues we produced were high, coming in at 44.5 million, 10% higher compared to 40.4 million of last year, but below the record of 47.2 million that was achieved in Q2. While we did grow our revenues, expenses also grew considerably during the third quarter. As a result, adjusted net income for Q3 was 14.4 million, only slightly above that of last year. In terms of earnings per share, on an adjusted basis, these were 39 cents for the quarter. While for the nine months of 25, we have reported 1.42 cents. In terms of our strategic objective of deleveraging, we reached that goal during the third quarter, repaying the last bank loan, and after having repaid $86 million in total during 2025 and $350 million in the last three years, we now have all our vessels in the fully-owned fleet debt-free. With regards to our share repurchase program, we have bought back shares worth $1.8 million in Q1 and Q2 of this year, bringing the total up to 21.2 million since we began in 2023, but we did not buy back any shares during the third quarter. As far as our objectives, we continue to be conservative by maintaining a visible revenue stream with $130 million in contracted revenues and 57% of the fleet calendar days one year forward secured as of November 2025. In terms of sell and purchase activity, we continue to look for opportunities to sell some of the older tonnage and possibly replace with newer tonnage. The latest news on that front is that we recently agreed to sell the 2014 built Eco Invictus with delivery most likely in January or February 26, and we expect to book a profit from that sale at that time. Finally, there is the issue of the Eco Wizard that we discussed last time that was proven quite difficult and time-consuming to resolve. The vessel underwent temporary repairs that were completed, and it's now a matter of having the vessel moved to a dry dock facility outside of Russia in order to perform more permanent repairs. However, during the current geopolitical situation, even the approval of payments by the EU authorities for works performed are a time-consuming process. On slide four is our fleet employment as of November. Chartering activity was relatively more muted over the past few months. We did conclude, though, five new period charters, of which one was for a one-year duration and the other four were between three and seven months. Lately, as the market is firming, we are seeing some renewed interest in longer period charters. At the moment, we only have two of our active vessels trading in the spot market, with one of these vessels being on subject for a period charter. Overall, we maintain high period coverage. As of November, One year forward coverage is slightly below 60%. Already for 26, we have secured 46% of the fleet days, securing $77 million in revenues for next year. Fixing one more vessel for a year, and we'll have secured half of our revenues for next year. Total revenue secured for all future periods up to 2027 were reduced to about $130 million. In terms of dry docking, We have a scheduled dry docking for two more vessels in Q4, four in total this year, and next year we will have six vessels due for dry dock. In terms of fleet geography in slide five, our company mainly focuses on regional trade and local distribution of gas, while the larger ships go mostly into continental voyages, often loading U.S. to discharge in Europe. Market dynamics that we have discussed in the past have led us to position the majority of the fleet west of Suez, Two-thirds of the fleet trades in Northern Europe and Mediterranean. Our vessels get a premium, but there are also more costs involved, particularly related to environmental regulations recently implemented like the EU ETS scheme for carbon emissions. We only have three vessels trading east of Suez, a low number considering that in the past as much as half of our fleet was located there. And in fact, only one vessel trades in the Far East and is currently located in Australia. So when the trade dispute between U.S. and China escalated in October, leading to a truce in November, we didn't expect any direct impact to our operations. That being said, we still need to acknowledge that Chinese demand for LPG has a major influence in markets. Further west, we have the de-escalation of tension in the West Suez, with the Huvis stopping their attacks for now on ships crossing this vital trade route. This may lead to more vessels moving east to west, One of our handy vessels trading in the Middle East was recently repositioned in Europe via the Swiss, but generally we don't expect any significant effect in trade routes. I turn now to the call to Mr. Konstantinos Stovais for a financial performance.

Thank you. Starting with slide six, where we have a snapshot of the income statement for the third quarter and the nine months of 2025, against the same period of 2024. Due to sale and purchase transactions that took place over the period, there was an increase in fleet pays of 7%. So driving the results was the addition of two vessels in the fleet and our MGC that was out of action but still incurring costs. Revenues for the third quarter were at 44.5 million, marking a 10% increase year-on-year. mostly driven by the two additional vessels in the fleet, while the hunting sizes also performed well in terms of revenue generation. During the quarter, we also had more vessels operating in the spot market. That led to two things. Firstly, an increase in voyage expenses to $7.2 million, particularly port expenses and bunker expenses. And secondly, an increase of hire days. as there was more idle time incurred between voyages. Hence, we saw a reduction in the operational utilization to 90.3%. The TCE revenues for the quarter were 37.3 million, a seasonally low in par with last year's. Operating expenses were 15 million for the quarter on the high side, driven by the additional vessels, as well as expenses incurred for repairs and an overall increase in costs, particularly crew, across the board. Although we do pride ourselves on running these ships at cost levels below our peers, we have faced inflationary cost pressures this year. In terms of other expenses, we had reduced dry dock expenses, reduced G&A expenses, and particularly reduced interest costs of just $0.2 million as during the quarter we repaid the last loan on the books. As a result, the reported net income for the third quarter was $13.3 million compared to $12.1 million for the same quarter of last year, a 10% increase. Earnings per share for the quarter were $0.36 and on an adjusted basis $0.39. So the bottom line reflects the seasonal drop in activity that was pretty much expected during the third quarter. But overall, the company retains its high profitability as the LPG charter rates continue to be at historically elevated levels. Looking at the balance in the next slide, as of September 30th, the company continued to maintain strong liquidity with cash of $70 million. and zero restricted cash after having repaid $32 million in debt over that quarter and $86 million over the whole nine months, and also after having invested about $8 million for the share in the JV vessels in the previous quarter, while receiving $12.2 million net from the sale of one vessel earlier in the year. Two vessels were held for sale as of September 30th, one delivered already in the current quarter, the other next year. And the process of these sales will boost the cash position by slightly over $25 million. Together with the operational cash flow, the company's cash is expected to hit the $100 million mark before the end of the year. On the liability side, debt is now zero, and the total liabilities of the company are a mere $21 million. In a very short time, the company has achieved one of the strongest balance sheets in the public shipping space. Shareholder's equity increased over the nine months by $50 million to 676.4 million, an 8% increase. Moving to the next slide, eight, to recap what has been a very swift and successfully executed debt reduction strategy. Since the beginning of 2023, in a little over two and a half years, the company, using its operational cash flow as well as proceeds from vessel sales, repaid about $350 million and became, for the first time since its inception, a debt-free company with a fleet of 28 vessels, none of which is financed. This gives the company much more leverage when it comes time for expansion. while achieving significant savings in interest costs. It also means that the cash flow break-even for the fleet is significantly reduced, enhancing its competitiveness. At the moment, we estimate the cash flow break-even at $6,500 to $7,000 daily, which means that even if the market was to fall by 50% and all the vessel rates readjusted, something unlikely to happen, the company would still be increasing its cash position. I will now hand you back over to our CEO, Mr. Harry Vafios, for some insights on the market.