Slide 1: Fourth Quarter and Full Year 2014 Results
Fourth Quarter and Full Year 2014 Results February 26, 2014
Slide 2: Disclaimer
Disclaimer 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 deeme
Slide 3: Agenda
Agenda ❶ Highlights Harry Vafias –CEO/ President ❷ Financials ❸ Market Update ❹ Share Performance ❺ Outlook 3
Slide 4: StealthGas Key Highlights for 2014
❶ Highlights StealthGas Key Highlights for 2014 Fleet & • Delivery of 5 LPG newbuildings, divestment of 2 exisiting middle aged vessels reaching a sailing fleet of 45 vessels Operations • Running costs kept at low levels • 85% of vessels on period charters thus securing steady cashflow • Proven and
Slide 5: StealthGas The Largest LPG Owner
❶ Highlights StealthGas The Largest LPG Owner StealthGas Selected Peer Group StealthGas Positioning against Peers Company Sailing Fleet New Building Total • Highest number of sailing fleet, one of the biggest number of new orders and a market leader in terms of total number of StealthGas 45 16 61 ve
Slide 6: Fleet Employment Analytics
❶ Highlights 31/12/2016 Fleet Employment Analytics 2015 2016 2017 EARNINGS VISIBILITY Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Vessel Gas Exelero Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
Slide 7: Fleet Trading Profile
❶ Highlights Fleet Trading Profile 25% 55% • Stealthgas focuses on regional trade and local distribution of gas • Currently 55% of the fleet trades in the Middle- Far East , 25% in Europe and 20% in South America 20% 7
Slide 8: Fleet Development
❶ Highlights Fleet Development 61 2 LPG 60 57 4 Vessels 55 sold 2 4 51 4 4 • Three vessels were delivered to the fleet in Q4 2014 50 4 45 6 42 42 • Two middle aged vessels were sold in Q4 2014 and hired back 40 4 4 40 4 4 by the company on a bareboat basis 4 Newbuildings 30 Tanker • On going investm
Slide 9: Capex Program Analysis
❶ Highlights Capex Program Analysis STEALTHGAS New buildings Capital Expenditure Analysis • Investment program of c. 432 USD mm. for the period 2015-2017 (Amounts in USD mm.) • 15 new LPG orders of 146,900 cbm aggregate capacity (Note: Nb’s schedule excludes 1 vessel delivered in January 2015) 450 7
Slide 10: Financials – Income Statement 2014
❷ Financials Financials – Income Statement 2014 Incom e Sta tem ent Q4 Q4 December 31 December 31 ( A m ounts i n U SD' 000s ) 2013 2014 2013 2014 Comparing Q4 2014 to Q4 2013 Voyage revenues 32,033 34,991 121,482 131,973 % of net revenues (10.36%) (10.01%) (11.77%) (10.67%) • Net Revenues increased
Slide 11: Financials - Performance Highlights 2014
❷ Financials Financials -Performance Highlights 2014 Key Comments Fleet Data Q4 2013 Q4 2014 12 m 2013 12 m 2014 Average number of vessels in fleet 42 46 39 44 Period number of vessels in fleet 42 45 42 45 • Higher operational fleet utilization in 12M 2014 Total calendar days for fleet 3,864 4,324 1
Slide 12: Financials – Balance Sheet 2014
❷ Financials Financials – Balance Sheet 2014 Key Remarks Balance Sheet December 31 December 31 (Amounts in #039;000s) 2013 2014 Assets 2014 Assets • Key component is the net value of vessels (75% of total assets) that increased by 5% compared to 2013, following: Cash & cash equivalents 86,219 129,115 O
Slide 13: LPG Sector Highlights & Trends
❸ Market Update LPG Sector Highlights & Trends Demand Supply • LPG demand remains centered around Asian imports • From the supply side, US has become a major exporter of LPG, 59.3% yoy export increase in 2014, and it is anticipated that it LPG Demand % Annual Change 2014 will become a primary export
Slide 14: Historical Charter Rates
❸ Market Update Historical Charter Rates • Lower oil prices have reduced rates from their historical levels Monthly Rates Monthly Rates Forecast (Amounts in USD) Q4 2014 Average Current Q2 2015 Forecast 3,500 CBM P/R 198,269 182,500 175,000 5,000 CBM P/R 256,538 250,000 245,000 Source: Fearnely Secu
Slide 15: LPG Sector Highlights & Trends
❸ Market Update LPG Sector Highlights & Trends LPG Fleet Age LPG Second Hand Values • 25% of LPG fleet is above 25 yrs old and therefore the • Small LPG carriers have seen a narrow price variability in terms of second hand values market is expected to move towards scrapping. LPG Carriers Age Profile
Slide 16: LPG Sector Highlights & Trends
❸ Market Update LPG Sector Highlights & Trends Orderbook Data Fleet Utilization • Increase in nb’s deliveries in 2015-2016- most of new orders are VLGC’s • Despite the 2015 forecast for broader shipping industry is not as positive as previous years, according to Clarkson estimates Fleet Overview 201
Slide 17: StealthGas Share Performance
❹ Share Performance StealthGas Share Performance 4/30/14: 8/6/14: 2/3/14 : Completes $47 Completes $35 14,00 Announces million FO at price of million FO at price $10.10 11/26/14: acquisition of two $10.50 per share per share (NAV/Share: Announces share buy newbuilding LPG vessels (NAV/Share: $13.16)
Slide 18: Gas Peers Share Performance
❹ Share Performance Gas Peers Share Performance GasLog (2014) Navigator Gas (2014) 35 35,00 30 30,00 25 25,00 20 20,00 15 15,00 $ $ 10 10,00 5 5,00 0 0,00 Crude Oil Prices 140 120 • Strong correlation between StealthGas and 100 competitors share performance • All shares follow crude oil price trend
Slide 19: Time Charter Equivalent – Sensitivity Analysis
❺ Outlook Time Charter Equivalent – Sensitivity Analysis (Amounts in $ '000s) Average TC / EBITDA Q1 2015 Q2 2015 Q3 2015 Q4 2015 Total 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Total 2016 Number of Operating Vessels 47 48 52 57 57 57 58 59 59 59 Coservative Scenarios Lower Case TC 8,000 & Utilization 90
Slide 20: Valuation – Listed Companies Comparables
❺ Outlook Valuation – Listed Companies Comparables P/NAV EV/ASSETS EV/EBITDA (15E) Avance Gas 0.81 0.83 5 BW LPG 0.68 0.75 3.9 Dorian LPG 0.63 0.78 8.3 EPIC GAS 0.45 0.72 27.3 Average 0.64 0.77 11.13 StealthGas 0.45 0.63 6.8 StealthGas Discount to Comps 30% 18% 39% Source: RS Platou Markets, Februar
Slide 21: Q&A
Draft Q&A 21