Stealthgas, Inc. · NASDAQ:GASS
Stealthgas — Non-Deal Roadshow (March 2006)
27 slides from Stealthgas's roadshow presentation, March 2006
Slide 1: StealthGas Inc. Informational Roadshow
StealthGas Inc. Informational Roadshow NASDAQ: “GASS” March 2006
Slide 2: Disclaimer
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 h
Slide 3: About StealthGas
About StealthGas A ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry. Listed on NASDAQ (Symbol: GASS) The only pure LPG company listed in the United States Established in December 2004 - Went public in October 2005 raising $ 109 million (8 mi
Slide 4: What is LPG?
What is LPG? Liquid petroleum gas also refers to petrochemical gases and ammonia Extracted from natural gas production (60%) and crude oil refining (40%) LPG in gaseous state at atmospheric pressure and normal temperature Ammonia Production Natural Gas 10% of natural gas Liquid Petroleum Gases is LP
Slide 5: LPG Shipping
LPG Shipping Liquefied for seaborne transportation with pressure and/or refrigeration on terminal or on board LPG carriers Minimal land infrastructure - No Large Liquefaction or regasification plants (LNG) Environmentally-friendly, superior safety record to tankers Gas Categories Products Vessel Typ
Slide 6: LPG Fleet
LPG Fleet We operate in the semi-refrigerated and fully-pressurized segments All orderbook Fully-refrigerated vessels do not compete in short-haul routes and cargo sizes for fleet replacement Cargo Primary Number Orderbook 20+ 25+ Gas Carrier Capacity Liquefaction of CBM No. of Orderbook Orderbook Y
Slide 7: Why LPG Shipping? – Strong Fundamentals
Why LPG Shipping? – Strong Fundamentals Limited Fleet Supply Increasingly stringent chartering requirements − 35% of fleet > 20 year vessels LPG Carrier Low orderbook in the SR, FP segments 18 Supply and Demand 2.0 − 14% of current fleet on order through 16 the beginning of 2009 14 1.5 12 Million Cu
Slide 8: Global Production, Trade and Consumption
Global Production, Trade and Consumption LPG accounts for 71% of seaborne gas trade Production (525 million tons) Ammonia, 109mt, 21% LPG Consumption (1) 70.0 65.3 60.0 55.7 50.0 40.0 29.8 Petchem, LPG, 211mt, 30.0 25.7 205mt, 39% 40% 20.0 15.3 Seaborne Trade 7.8 7.6 10.0 Ammonia, (71 million tons)
Slide 9: Seaborne Trading Patterns
Seaborne Trading Patterns 75% of 71 million tons global trade are represented by these routes Middle East exports to Asia account for 31% of world trade Asia accounts for 50-60% of world imports Natural Gas & Petrochemical Industry growth 14% Intra Europe 2.1 16% 0.9 5.7 31% Intra Asia Middle East 7
Slide 10: Harry Vafias – Chief Executive Officer
Harry Vafias – Chief Executive Officer ¾ Harry Vafias a charismatic young entrepreneur, who started in the tanker business in 1999 ¾ Long established family history in shipping, The Vafias family in dry bulk shipping since 1973. ¾ Between 1999 and 2004, he turned a $ 4 million investment into $ 400
Slide 11: StealthGas Business Strategy – Since IPO to Present Day
StealthGas Business Strategy – Since IPO to Present Day Business Strategy Implementation Triple Fleet by mid-2006 • 9 of 10 Identified Vessels delivered, 1 expected by early March 2006 • Acquired 5 of 9 Additional Vessels – Ahead of vessel acquisition schedule outlined during IPO Road Show Moderate
Slide 12: Fleet Development
Fleet Development Grew fleet to 21 vessels by end of FY 2005 Fleet to number 24 vessels by early March 2006 Ahead of acquisition timetable outlined during IPO Road Show StealthGas ranks #1 in owned vessels in 3,000 to 8,000 CBM segment 28 28 IPO 24 24 9 21 5 20 3 16 Established 9 10 10 12 Oct. 2004
Slide 13: Fleet Employment Profile
Fleet Employment Profile Page 13 StealthGas Inc. © 2006
Slide 14: “Blue-Chip” Customers
“Blue-Chip” Customers Include oil majors, chemical companies and traders We focus on repeat business Page 14 StealthGas Inc. © 2006
Slide 15: 4th Quarter 2005 Financial Highlights
4th Quarter 2005 Financial Highlights 4th Quarter ¾ Q4 Net Income $4.5 million, revenues of $12.8 million, EBITDA of $7.2 million ¾ EPS $0.33 – 13.6 million shares outstanding ¾ Cash balance of $23.2 million ¾ Conservative leverage: net debt to capitalization of 30.6% ¾ Fully utilized IPO proceeds t
Slide 16: 4th Quarter Income Statement
4th Quarter Income Statement In US$ 000, except per share amounts Q 3 2005 Q 4 2005 12 M 2005 Net Revenues $6,895 $12,810 $29,298 Operating Income 3,786 5,111 13,713 Net Income 3,624 4,536 12,209 EBITDA 5,093 7,181 18,031 EPS 0.60 0.33 1.54 Number of Shares 6,000,000 13,565,217 7,906,849 Note: The t
Slide 17: 4th Quarter & 12M 2005 Operating Highlights – Fleet Data & Daily Results
4th Quarter & 12M 2005 Operating Highlights – Fleet Data & Daily Results Fleet Data Q 3 2005 Q 4 2005 12 M 2005 Average number of vessels in fleet 9.0 15.1 9.3 Period end number of vessels in fleet 9.0 21.0 21.0 Total calendar days for fleet 828 1,387 3,382 Total voyage days for fleet 828 1,383 3,37
Slide 18: Daily Breakeven
Daily Breakeven Q4 2005 Daily Cashflow and Net Income Breakeven Composition ($ per vessel per day) Q4 2005 fleet calendar days: 1,387 FY 2005 fleet calendar days 3,382 Q4 FY05 Expenses Cash Net Cash Net Flow Income Flow Income Operating $2,277 $2,277 $2,097 $2,097 General & Administrative 678 678 56
Slide 19: 4th Quarter Balance Sheet and Adjustments
4th Quarter Balance Sheet and Adjustments Pro forma and adjusted balance sheet does not include Q1 2006 and Q2 2006 cashflow from operations Includes 1 Identified Vessel to be delivered in March 2006 Four Dec 31, 2005 Dec 31 2005 Three Dec 31, 2005 Additional Pro-Forma (USD in millions) Actual Vesse
Slide 20: Acquisition Capex
Acquisition Capex Estimated equity investment of $131.6 million to be funded with $109.0 million net IPO proceeds and $22.6 million cash from operations Expect to use approximately $26.2 million of Q1 and Q2 2006 cash flow and approximately $46 million of new debt to fund 1 remaining identified vess
Slide 21: Financial Estimator
Financial Estimator ($ in millions) 24 Vessels 28 Vessels 2006E 2006E Spot Voyage Days 2,049 3,036 Daily Spot Charter Rate - 4,250 cbm vessel ? ? Spot Revenue ? ? Period Charter Revenue (T/C and Bareboat) $49.5 $49.5 Total Revenue ? ? Operating Expenses 18.7 21.5 SG&A 4.8 5.7 Commissions 1.4 1.9 Mai
Slide 22: Increased LPG Supplies => Higher Freight Rates
Increased LPG Supplies => Higher Freight Rates Expanding LPG supplies are driven by increased LNG production and crude oil refining LNG Production CAGR = 12% 14 12 Trillion Cubic Feet 10 8 6 4 2 0 2004 2005E 2006E 2007E 2008E 2009E 2010E LNG Production LPG supplies are expected to increase by 50% fr
Slide 23: LPG Macro Consumption Trends
LPG Macro Consumption Trends Increasing Urbanization and Rising Living Standards --> Rapid increase in consumption Japanese LPG consumption steady post-rapid development Average 22 years rapid growth, China should realize another decade China Urbanization: 20 Million/p.a., India: Further growth pote
Slide 24: Strong LPGC freight rates
Strong LPGC freight rates Average earnings in the spot market excluding waiting time / 1 yr TC rates 700 600 500 USD 1000 per month 15000 SR 400 8000 ETH 6500 SR 300 3500 SR 1yr tc 3500 PR 1yr tc 200 100 0 2000 2001 2002 2003 2004 2005 2006 Source: Inge Steensland AS Shipbrokers Page 24 StealthGas I
Slide 25: Charter Market Rate Indicator (12 Month TCs)
Charter Market Rate Indicator (12 Month TCs) Q4 2005 Average Current Q1 2006 Forecast 3,200 CBM S/R 295,000 305,000 305,000 3,500 CBM P/R 250,000 240,000 240,000 6,000 CBM S/R 430,000 450,000 450,000 15,000 CBM S/R 725,000 775,000 775,000 38,000 CBM 970,000 1,000,000 1,000,000 60,000 CBM 985,000 1,0
Slide 26: Balanced Outlook
Balanced Outlook 3-8000 cbm fleet development vs TC rates/earnings 600 16% 14% 500 12% 10% Percentage growth (bars) 400 USD 1000's pcm (lines) 8% 300 6% 4% 200 2% 0% 100 -2% - -4% 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 All 3000-8
Slide 27: Contacts
Contacts Company Contact: Andrew J. Simmons Visit our Website at: Chief Financial Officer www.stealthgas.com StealthGas Inc. 011-30-210-6250-001 Weekly LPG Market Report E-mail: simmons@stealthgas.com updated every Monday www.stealthgas.com Comprehensive Investor Relations Information Investor Relat