3rd quarter 2013 results november 22th , 2013 · 2017-10-01 · 2013 q3 operating highlights *...
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3rd Quarter 2013 Results
November 22th , 2013
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 prof i tabi l i ty as wel l as the value of the Company’s f leet .
1
1 Market share data for 3,000 – 8,000 cbm LPG vessels only
Fully-Pressurized LPG Fleet Market Share1
2
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
Business Strategy
Current Fleet: 38 LPG Vessels
Current Fleet 38 + 15 NBs LPG vessels
Targeted Fleet: ~55-60 LPG Vessels
Remaining Capex: $240mil
Available cash: $90mil
Leverage: 60-70% ($200mil)
Built-In Growth (15 NBs LPG)
1
Fleet Development
Current fleet of 38 LPG vessels, 3 product tankers and 1 aframax tanker
Contracted 15 eco-type LPG vessels
Investments in modern vessels and newbuilding LPG carriers
3
2013 Q3 Income Statement
4
In US$ 000, except
per share
amounts
Q3 2012 Q3 2013 9M 2012 9M 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 0.32 0.13 1.03 0.58
EPS, adjusted 0.28 0.11 0.85 0.49
Number of Shares,
diluted 20,552,568 32,052,568 20,552,568 26,997,623
Balance Sheet
5
December 31, September 30,
2012 2013
Cash and Cash Equivalents incl. restricted 50,913,655 104,822,265
Current Assets excl. cash 6,649,752 9,281,386
Advances for vessels under construction 19,321,045 46,283,936
Vessels, net 634,634,671 685,112,848
Other assets 1,519,908 1,994,165
Total Assets 713,039,031 847,494,600
Current portion of long term debt 35,787,544 72,873,605
Current Liabilities 20,021,170 22,126,786
Long Term Debt 309,564,768 281,673,584
Other Liabilities 5,632,107 3,792,450
Stockholders' Equity 342,033,442 467,028,175
Total Liabilities and Stockholders Equity 713,039,031 847,494,600
2013 Q3 Operating Highlights
* Assuming no vessels on Bareboat Charter
6
Fleet Data Q3 2012 Q3 2013 9M 2012 9M 2013
Average number of vessels in fleet 37.0 40.6 36.82 38.6
Period end number of vessels in fleet 37 42 37 42
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 505 640 1,227 1,845
Fleet operational utilization 95.7% 87.0% 95.3% 91.4%
Average Daily Results (in $) Q3 2012 Q3 2013 9M 2012 9M 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 317 341 318 332
General & Administrative Expenses 290 174 213 180
Total Vessel Operating Expenses 4,411* 4,496* 4,369* 4,488*
Fleet Employment Profile
7
39 vessels out of 42 on period charters to secure visible revenue stream
$183 million in secured revenues
8
What is LPG? StealthGas Seaborne Trade Model
Natural Gas (LNG) Production (~60%)
10% is LPG
Crude Oil Refining (~40%) 3% is LPG
Commercial/
Residential
(52%)
Industrial
(9%)
Engine
Fuel (8%)
Refinery
(6%)
Other
(2%)
StealthGas hub and spoke model
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
LPG is the World’s Most Multi-Purpose Energy:
accessible, environmentally friendly, available supply, less expensive than other fuel sources
LPG Shipping is a Resilient and Growing Sector
Source: MSI, EIA
9
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
Key Drivers
LPG Production by Region 2012 & 2016 LPG Consumption by Region 2012 & 2016
LPG Seaborne Trade 2005 – 2016 Forecast
LPG Imports and Exports
10
Regions Exporting LPG
Regions Importing U.S 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)
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
Source: IHS, Facts Global Energy
U.S. Shale Gas - The Game Changer
11
U.S. Net Exports of LPG 2005 -2040
• 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.
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
U.S. LPG Trade: International Prices Support Exports
Source: EIA, Argus
Limited LPG Fleet Growth
Orderbook as % of Fleet1
12
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
2
31,0%
19,8%19,0%
12,8%
9,7% 9,2%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
LNG Container Dry Bulk Product
Tankers
Crude
Tankers
LPG (3-8k
cbm)
Age Profile
1 By number of vessels
2 Fully-pressurized fleet and semi-ref
2
Source: Banchero Costa, Clarksons Research Services
$0
$500
$1,000
$1,500
$2,000
$2,500
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13
5k CBM Pressurized (Trading East) Tanker Earnings Dry Bulk Earnings
13
LPG Timecharter Rates Historically Less Volatile
($ Thousands / Month)
LPG time charter rates have remained far more stable than those of peer sectors
2
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
Limited LPG Fleet Growth Has Led to Greater Charter Rate Stability
Source: Clarksons Research Services
Q & A
Appendix - Indicative EBITDA calculator
Fleet Data Q1-Q2-Q3
2013
Q4 2013
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 10,535 3863
Available Days 10,376 3823
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) $46.5mil
Average Daily Results (in $)
Operating Expenses (excl vsls on bb) 4,308
Dry-dock 5 vessels 2 vessels
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
Contacts
Weekly LPG Market Report updated every Monday
Comprehensive Investor Relations Information
Visit our Website at: www.stealthgas.com
Company Contact:
Harry Charogiannis
Chief Financial Officer
StealthGas Inc.
011-30-210-6250-001
E-mail: info@stealthgas.com
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