StealthGas (GASS) Misses Q4 EPS by 6c, Revenues Beat

February 25, 2021 9:37 AM EST

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StealthGas (NASDAQ: GASS) reported Q4 EPS of $0.03, $0.06 worse than the analyst estimate of $0.09. Revenue for the quarter came in at $37.3 million versus the consensus estimate of $33.87 million.

Fourth Quarter 2020 Results:

  • Revenues for the three months ended December 31, 2020 amounted to $37.3 million, an increase of $2.1 million, or 6.0%, compared to revenues of $35.2 million for the three months ended December 31, 2019, following an increase of our time charter revenue stemming from our 22,000 semi–refrigerated LPG vessels and our aframax tanker, an increase of our freight revenues, along with the 50% reduction of bareboat activity.
  • Voyage expenses and vessels’ operating expenses for the three months ended December 31, 2020 were $5.3 million and $14.7 million, respectively, compared to $4.1 million and $12.6 million, respectively, for the three months ended December 31, 2019. The $1.2 million increase in voyage expenses is attributed to the 82.5% increase in spot days. Due to our increased spot activity we witnessed this quarter a sharp increase of both port expenses and bunker costs. The 16.7% increase in vessels’ operating expenses compared to the same period of 2019, is a result of six less vessels on bareboat, which vessels are now operating either on time charter or in the spot market along with an increase of crew costs due to the COVID-19 pandemic.
  • Drydocking costs for the three months ended December 31, 2020 and 2019 were $0.9 million and $0.4 million, respectively. Drydocking expenses during the fourth quarter of 2020 relate to the drydocking of two vessels compared to the drydocking of one vessel in the same period of last year.
  • Depreciation for the three months ended December 31, 2020 and 2019 was $9.5 million and $9.3 million, respectively.
  • Impairment loss for the three months ended December 31, 2020 was $0.7 million and related to one of our oldest vessels. The impairment loss for the three months ended December 31, 2019 was $1.0 million and related to two vessels.
  • Net loss on sale of vessels for the three months ended December 31, 2020 was $1.1 million and relates to the sale of two of our oldest LPG vessels.
  • Interest and finance costs for the three months ended December 31, 2020 and 2019 were $3.1 million and $4.5 million, respectively. The $1.4 million decrease from the same period of last year is mostly due to the decline of LIBOR rates and the decrease of our indebtedness.
  • Equity (loss)/gain in joint ventures for the three months ended December 31, 2020 and 2019 was a loss of $0.5 million and a gain of $0.2 million, respectively. The $0.7 million decrease from the same period of last year, is mainly due to the operating losses stemming from the three secondhand (2010 built) 35,000 cbm medium gas carriers which operate under a joint venture arrangement since Q1 ’20, as two of these vessels completed their drydocking within the fourth quarter of 2020.
  • As a result of the above, for the three months ended December 31, 2020, the Company reported a net loss of $0.7 million, compared to net income of $0.5 million for the three months ended December 31, 2019. The weighted average number of shares outstanding for the three months ended December 31, 2020 and 2019 was 37.9 million and 39.7 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.
  • Loss per share, basic and diluted, for the three months ended December 31, 2020 amounted to $0.02 compared to earnings per share of $0.01 for the same period of last year.
  • Adjusted net income was $1.1 million or $0.03 per share for the three months ended December 31, 2020 compared to adjusted net income of $1.5 million or $0.04 per share for the same period of last year.
  • EBITDA for the three months ended December 31, 2020 amounted to $11.8 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net (Loss)/Income are set forth below.
  • An average of 42.1 vessels were owned by the Company during the three months ended December 31, 2020 compared to 41.0 vessels for the same period of 2019.

Board Chairman Michael Jolliffe Commented

The year 2020 will always be remembered globally for precarious reasons and the shipping world was not spared. With regards to the segment we operate in, LPG demand marked a decline and rates for the majority of the sub-segments we operate in were soft- particularly during the second half of 2020. The tanker market was affected as well as, currently, rates are at very low levels in the shipping cycle. On top of that, we were hit with the bankruptcy of one of our charterers which had to redeliver four of our ships earlier than was agreed.

Nevertheless, with an Adjusted Net Income of almost $17 million, corresponding to an Adjusted EPS of $0.44 generated in 2020, we feel positive for 2021.

Looking ahead, we recognize that market turbulence due to the COVID-19 pandemic might last – possibly even throughout the whole of 2021. However, we can leverage upon our strengths including our solid cash base and balance sheet, our low gearing and the significant operating leverage we have, as including our JV vessels we operate a fleet of 50 ships.

As our shares trade at low levels, we strongly believe that this is an opportunity for potential investors as we have a long standing record of a sturdy and prudent company with a strong position in the segment in which we operate in.

For earnings history and earnings-related data on StealthGas (GASS) click here.



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