StealthGas (NASDAQ: GASS) reported Q2 EPS of $0.09, $0.08 better than the analyst estimate of $0.01. Revenue for the quarter came in at $43.4 million versus the consensus estimate of $37.32 million.

• Revenues for the three months ended June 30, 2018 amounted to $43.4 million, an increase of $4.1 million, or 10.4%, compared to revenues of $39.3 million for the three months ended June 30, 2017, mainly as a result of improved market rates that led to an increase in both our time charter revenues and spot revenues compared to the same period of last year.
• Voyage expenses and vessels’ operating expenses for the three months ended June 30, 2018 were $4.3 million and $14.9 million respectively, compared to $4.5 million and $14.4 million respectively, for the three months ended June 30, 2017. The $0.2 million decrease in voyage expenses was mainly attributed to a quarter on quarter reduction of spot days, partially offset by a 26.8% increase in our bunker costs compared to the same period of last year. The 3.5% increase in vessels’ operating expenses compared to the same period of 2017, in spite of the net reduction in the average number of our owned vessels by one, was mostly due to the operation of the new large LPG semi refrigerated vessels that were not in our fleet in the same period of last year; in addition one of our small LPG vessels currently operating under time charter was on bareboat in the same period of last year.
• Drydocking costs for the three months ended June 30, 2018 and 2017 were $0.7 million and $1.2 million, respectively. The costs for the second quarter of 2018 corresponded to the drydocking of two LPG vessels, while in the same period of 2017 the Company completed the drydocking of three LPG vessels.
• Depreciation for the three months ended June 30, 2018 was $10.5 million, a $0.8 million increase from $9.7 million for the same period of last year due to the addition of the three new 22,000 cbm semi-refrigerated LPG vessels.
• Included in the second quarter 2018 results were net gain from interest rate derivative instruments of $0.01 million compared to a net loss of $0.1 million incurred in the same period of last year. Interest paid on interest rate derivative instruments amounted to $0.02 million compared to interest of $0.1 million paid in the same period of last year. The net gain from interest rate derivative instruments and the reduction of interest paid on derivatives, are an outcome of the increase in LIBOR rates.
• The Company realized a $0.2 million loss on sale of one vessel in the three months ended June 30, 2018.
• The Company recorded an impairment loss of $3.8 million for the three months ended June 30, 2018 for five of its vessels, one of which has been classified as held for sale as of June 30, 2018, while the Company entered into agreements to sell the remaining four vessels subsequent to June 30, 2018. For the three months ended June 30, 2017, the Company had recorded an impairment loss of $3.2 million for three of its oldest vessels, two of which had been classified as held for sale, as of June 30, 2017.
• Other operating income for the three months ended June 30, 2018 was $0.7 million and related to legal claim receipts, while other operating costs for the three months ended June 30, 2017 was $0.4 million and mainly related to the delay of the delivery of our new 22,000 cbm semi-refrigerated vessels.
• Interest and finance costs for the three months ended June 30, 2018 were $6.0 million compared to $4.1 million in the same period of 2017. This increase of $1.9 million is attributed both to the increase in our bank debt and also to increased LIBOR rates.
• As a result of the above, for the three months ended June 30, 2018, the Company reported a net loss of $0.4 million, compared to a net loss of $1.7 million for the three months ended June 30, 2017. The weighted average number of shares for the three months ended June 30, 2018 was 39.9 million compared to 39.8 million for the same period of 2017. Loss per share, basic and diluted, for the three months ended June 30, 2018 amounted to $0.01 compared to loss per share of $0.04 for the same period of last year.
• Adjusted net income was $3.6 million or $0.09 earnings per share for the three months ended June 30, 2018 compared to adjusted net income of $1.5 million or $0.04 earnings per share for the same period of last year.
• EBITDA for the three months ended June 30, 2018 amounted to $16.0 million and Adjusted EBITDA was $ 20.0 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Loss are set forth below.
• An average of 52.2 vessels were owned by the Company during the three months ended June 30, 2018, compared to 53.4 vessels for the same period of 2017.

Board Chairman Michael Jolliffe comments, "In spite of the seasonally weak period for our market, the second quarter of 2018, was a very solid quarter as we managed to achieve an operational utilization of 97.8%, our best performance since the first quarter of 2014. The combined effect of the improving market and the Company’s sound management positively impacted our results. Market rates for the small LPG carrier segment continued to rise resulting in an increase in both our time charter and spot revenues. We believe that market fundamentals in terms of demand for LPG and a limited orderbook will improve the day rates even further. Our Company is well positioned to take advantage of these opportunities. We are focused on following a chartering policy in line with what the market dictates and at the same time seeking to contain costs. We have been very active lately in terms of our sale and purchase activity, since the beginning of the year having agreed to sell seven small LPG vessels, mostly older ones that will enhance our cash position by approximately $30 million. With strong balance sheet in terms of liquidity and low leverage, a top quality fleet and promising market fundamentals we are optimistic about the future of StealthGas."

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