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Date

Friday, June 5, 2026 at 10 a.m. ET

Call participants

• Chairman of the Board of Directors — Michael Jolliffe
• Chief Executive Officer — Harry Vafias
• Investor Relations — Konstantinos Sistovaris

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Takeaways

• Revenue -- $42.8 million, up 1.9% year over year and 9% sequentially from $39.4 million.
• Adjusted Net Income -- $15 million, a decrease from $16 million year over year, but above the previous quarter's $13.3 million.
• Adjusted Earnings Per Share -- $0.40, reflecting management's view of "very attractive on price to earnings multiples."
• Net Income -- $15.9 million, an increase of 12.9% year over year.
• Reported Earnings Per Share -- $0.43 for the quarter.
• No Bank Debt -- Company maintains zero bank debt following full deleveraging by July 2025.
• Share Repurchase Program -- $21.2 million of shares repurchased since 2023; no shares bought back during the quarter as share price appreciated.
• Contracted Revenues -- Approximately $100 million contracted, with charter coverage into 2029.
• Secured Fleet Days -- 55% of remaining 2026 fleet days and 45% of one-year-forward days covered by period charters.
• Dry Docking -- Three vessels dry docked in the quarter, increasing dry dock expenses; two more scheduled in 2026.
• Cash Position -- Grew 32% in the quarter, from $99 million to $131.2 million, primarily from operational cash flow and vessel sale; updated to $155 million "today."
• Vessel Sales -- $2.5 million gain from one vessel sold in March; two more vessels delivered or scheduled for sale, with expected proceeds of about $26 million.
• Book Value of Fleet -- $475 million at quarter-end, a decrease of 3.4% following vessel sale and regular depreciation.
• Total Liabilities -- $26 million, all classified as current, reflecting the deleveraged balance sheet.
• Shareholders’ Equity -- Increased by $17.2 million in three months to $708 million (up 2.5%).
• LPG Market Impact -- Global LPG exports dropped by an estimated 3% in the first quarter due to the closure of the Straits of Hormuz; Q2 impact expected to be steeper.
• U.S. Propane Exports -- Reached a weekly record in late May, surpassing 2.6 million barrels, up 22% year over year for that week.
• Fleet Geographical Focus -- Two-thirds of vessels positioned west of Suez, mainly in Europe and the Mediterranean, targeting stronger rates.
• Order Book Trends -- Ordering of new LPG vessels for 2028 and 2029 remains slow, with only a handful for larger sizes; significant portion of the fleet is over 20 years old.
• MGC Market Dynamics -- Market "extremely tight," with spot rates at or near all-time highs, supported by VLGC rates; order book for MGC segment remains substantial at close to 40%.
• Spot Market Exposure -- Five vessels operating on the spot market; management aims to reduce exposure due to higher volatility.
• Eco Wizard Vessel -- "remains impaired," since last July's incident, with insurance discussions ongoing; update expected within the current or next quarter.
• Operating Expenses -- $13.8 million for the quarter, only slightly higher year over year.
• Interest Expense -- Reduced by $1.4 million versus last year due to absence of debt service.

Summary

StealthGas (GASS +2.40%) presented quarter over quarter and year-over-year revenue growth alongside increased cash and zero bank debt, underscoring the company's financial flexibility and resilience. The firm disclosed that 55% of remaining 2026 fleet days and $52 million in related revenues are secured by period charters, with a total of $100 million in contracted revenues extending through 2029. Management specifically highlighted serious geopolitical disruptions in the LPG shipping market from the ongoing Iran conflict, including a 3% drop in global exports and a corresponding reorientation of trade flows toward U.S. exports. The company confirmed that insurance and operational uncertainties persist for the impaired Eco Wizard vessel, with management expecting an imminent resolution. The balance sheet showed shareholder equity growth and sustained capital discipline, signaling readiness for opportunistic fleet renewal once the Eco Wizard issue concludes.

• Management noted that "the total liabilities of the company are a mere $26 million, all current," representing a unique position among public shipping companies.
• While cash levels increased to $131.2 million at quarter-end and $155 million currently, management reiterated that immediate use of proceeds depends on finalizing the Eco Wizard insurance outcome.
• Longer period charter durations were secured this quarter compared to last, contributing to visible future cash flows and moderating spot risk exposure.
• The call confirmed that one MGC vessel remains in the Persian Gulf on chartered freight due to unresolved regional security concerns, but management did not report any immediate loss of income from this exposure.

Industry glossary

• LPG: Liquefied Petroleum Gas, transported by specialized gas carriers operated by StealthGas.
• VLGC: Very Large Gas Carrier, a major segment referenced for market rates and trade flows.
• MGC: Medium Gas Carrier, a vessel class used for transporting LPG with significant market segment discussion in the call.
• Time Charter (TC): Contract where vessel rental is for a set period at a fixed rate, regardless of cargo quantity moved.
• Spot Market: Shipping contracts for single voyages—exposed to short-term rate fluctuations and volatility.
• Dry Docking: Regularly scheduled maintenance event when vessels are withdrawn from service for inspection and repairs.
• Handysizes: Industry term for a smaller size category of LPG carrier, discussed in relation to fleet composition and order book.

Full Conference Call Transcript

Michael Jolliffe: Thank you, and good morning, everyone, and welcome to our first quarter 2026 earnings conference call and webcast. I'm Michael Jolliffe, Chairman of the Board of Directors. And joining me on our call today, as usual, is our CEO, Harry Vafias and Konstantinos Sistovaris from Investor Relations. Before we commence our presentation, I would like to remind you that we will be discussing forward-looking statements, which reflect current views with respect to future events and financial performance and are subject to material risks and uncertainties. So if you could all take a moment to read our disclaimer on Slide 2 of this presentation. Risks are further disclosed in our filings with the Securities and Exchange Commission.

So let's proceed with the presentation on Slide 3 for a brief overview of another successful quarter. Revenues were high at $42.8 million in quarter 1, 2026, 2% higher than the $42 million of quarter 1, 2025 and 9% higher than the previous quarter's $39.4 million. Adjusted net income for the quarter was $15 million, lower compared to the $16 million achieved last year, but higher than the $13.3 million of the previous quarter. In terms of adjusted earnings per share, these were $0.40 for the quarter and underlying the fact that the company's stock is very attractive on price to earnings multiples.

Since achieving our strategic goal of deleveraging the company completely last July and repaying over the previous 3 years, $350 million in debt, we continue to maintain a very flexible capital structure. We are one of the very few, if not the only public shipping company that has managed to achieve 0 bank debt. We also do have a share repurchase program in place and bought back $21.2 million worth of shares since 2023. But as the share price has appreciated, we did not buy back any shares during the first quarter. This company also has a strategic objective of maintaining a visible revenue stream, opting for longer period charters when available.

And so as of June, we have $100 million in contracted revenues with charters up to 2029 and 45% of the fleet calendar days 1 year forward are secured by period charters. In terms of sale and purchase activity, we continue to look for opportunities to sell some older tonnage and possibly replace them with newer tonnage. We entered in March into a contract to sell another one of the smaller ships, the Eco Royalty and expect to deliver her in September. Two more vessels that we have previously agreed to sell, one was delivered in March to her buyers and the other one in May.

Finally, let me mention again the Eco Wizard situation following last July's incident as the vessel remains impaired, both in a literal sense and in terms of accounting as advised previously. The company is in discussions with the insurers of the vessel, and I'm afraid I cannot disclose more at this time. Suffice it to say that discussions are progressing, and we expect within the current month or coming quarter to have resolved the situation. So you should hear something on this fairly soon. Let us move on to Slide 4 for our fleet employment as at the end of May. Chartering activity was relatively consistent over the past few months.

We did conclude 5 new period charters of 3 months or longer, same as last quarter, but this time, the durations were longer. One charter was for 2 years, was for 1 year and the remaining 3 for 6 months duration. As we enter the summer months and the geopolitical situation remains fluid, the spot exposure for our fleet has actually increased, and we currently have 5 of our operating vessels in the spot market. Our intention is to reduce the spot exposure. Overall, we continue to maintain high period coverage.

As of June, for the remainder of 2026, we have secured 55% of the fleet days on period charters, bringing in about $52 million in revenues for the remainder of the year. One-year forward coverage is at 45%. Total revenues secured for all future periods up to 2029 are around $100 million. In terms of dry dockings, 5 vessels were scheduled during 2026, an average number. Two of these dry dockings were for the first quarter, and we actually performed more earlier than schedule. So in total, during quarter 1 2026, we dry docked 3 vessels, hence, the increased dry dock expenses. Two vessels remain to be dry docked during 2026.

Looking at the geographical location of our fleet presented in Slide 5, our company mainly focuses on regional trades and local distribution of gas, while the larger vessels mostly engaging intercontinental voyages like loading in the U.S. to discharge in Europe. We continue to position the majority of our fleet, 2/3 west of Suez and particularly in Europe and the Med in order to take advantage of the higher rates and more liquid market. In the Far East, we only have one of our older vessels and for the time being, do not intend to reallocate more vessels there as the rates continue to be lower in the East.

We also have 4 vessels trading in Africa, and we are building relationships there as we are optimistic that in Africa, demand for LPG will grow faster. There are many LPG storage facilities under construction on the continent that will increase seaborne trading in the future. Insofar as the conflict in Iran is concerned, we have not seen any particular change in trading patterns for the smaller vessels. Most affected were the VLGCs that were used for the majority of Persian Gulf exports and to a lesser extent, MGCs and Handysizes, particularly for Iraqi exports. As we said last time, we have one MGC vessel inside the Pershian Gulf where it remains until today.

The vessel had gone to load LPG in Saudi Arabia just before the conflict began. We are anxiously monitoring the situation, but have not attempted to exit as we do not consider the passage to be safe for the time being. The vessel is on time charter, so the freight for the time the vessel has stayed there has been paid. We hope the situation is resolved swiftly. I will now turn the call over to Konstantinos Sistovaris for our financial performance. Thank you.

Konstantinos Sistovaris: Thank you, Michael. Starting with Slide 6, where we have a snapshot of the income statement for the first quarter against the same period of 2025. While the fleet was almost similar at 28 vessels counting the vessels that entered and exited, the days the vessels were earning revenue was reduced by 8.5% and this was due to the timing of the dry dockings when vessels are off-hire and also the inclusion of one still nonoperational vessel, the Eco Wizard, until this case is resolved.

Despite this reduction, revenues for the first quarter came in strong at $42.8 million, marking a 1.9% increase year-on-year as the vessels continue to operate in a firm market with especially the largest sizes reporting improved results. Voyage expenses were higher by $1 million as they include some additional insurance premiums related to the conflict in the Middle East. Operating expenses were $13.8 million for the quarter and were contained only slightly higher than last year's.

This quarter, we had a significant increase in dry docking costs, which depend on the timing the vessels are sent to the yard as 3 out of the 5 vessels that were due for drydocking this year were dry docked during the first quarter compared to only a single vessel last year. Another item that influenced the results this quarter positively was the gain of $2.5 million from the sale of 1 vessel. The agreement for the sale was done last year, but the delivery took place in March. We also note a reduction in the interest cost by $1.4 million compared to last year as the company no longer pays any interest following the debt extinguishment.

Net income for the first quarter was $15.9 million, marking a 12.9% increase. And earnings per share for the quarter were $0.43. On an adjusted basis, earnings were $15 million and $0.40 per share. So overall, the company maintained high profitability. It has been enjoying lately. And although this was not a record quarter, it classifies among the best 5 quarters in its history in terms of profits. Looking at the balance sheet in the next slide.

As of March 31, 2026, the most important point to consider is the fast growth in the company's cash position that grew 32% from $99 million to $131.2 million in the space of 3 months through the sale of 1 vessel and $18 million in operational cash flow. Two vessels were held for sale as of March 31, one already delivered in May and one expected to be delivered in September upon the termination of its charter with the proceeds of these sales expected to boost the cash position by about $26 million.

The book value of the vessels in the fleet was $475 million, reduced by 3.4% as one vessel was moved to held for sale as well as the regular depreciation. Current assets were $79.7 million, close to the previous quarter and mostly include the book value and related expenses of the MGC vessel pending resolution with insurers. On the liability side, we want to show again that debt remains 0 and the total liabilities of the company are a mere $26 million, all current. In a very short time, the company has achieved one of the healthiest balance sheets in the shipping space. Shareholders' equity increased over the 3-month period by $17.2 million to $708 million, a 2.5% increase.

Moving on to Slide 8, what most of you may be familiar, but it's worth repeating for those listeners who are new. The company in the past always relied on debt to finance its operations and had a sizable amount of debt over $350 million, but always moderately leveraged. Through asset sales and operational cash flow, it embarked on a strategic goal of eliminating debt while at the same time, maintaining its liquidity. Particularly since the beginning of 2023, in a little over 2.5 years, it repaid about $350 million and became in July 2025 for the first time since its inception 20 years ago, a debt-free company with a fleet of 26 unencumbered vessels.

Only the joint venture vessel is currently financed, but it's not consolidated in the results. And during January and April of this year, also repaid most of its debt with $7 million remaining. With no debt amortizing or interest payments, the cash flow breakeven for the fleet is significantly reduced, enhancing its competitiveness. The elimination of debt also gives the company much more leverage and agility when the time comes for expansion and puts it in a significantly better negotiating position with its banking partners while achieving significant savings in interest costs in the meantime. I will now hand you back to our CEO, Harry Vafias, for some insights on the market.

Harry Vafias: Let's continue on Slide 9. a world view on the LPG market. at the forefront of, of course, is the conflict with Iran and the closure of the straits. 1/3 of LPG supply came from the Middle East and the majority going through the Straits of Hormuz. At the moment, the straits are closed. We know as we have a vessel there and want to exit, but cannot do it. The immediate impact was a drop in the global LPG exports estimated at 3% for the first quarter. Of course, when we get the second quarter data, we expect to see a much more steeper drop.

The effects of vessel repositioning took some time to appear in the LPG market, while tanker rates hit their highs in early March. VLGC rates reached their highs in late May. For LPG, the alternative sources is U.S. so many vessels previously trading in the Middle East has been repositioned to the U.S. and currently, many of those once loaded returned to the Far East taking the longer route via the Cape of Good Hope, a 45-day journey adding significant ton miles to the equation. U.S. LPG companies are wrapping up their exports, and we saw a record amount of propane being exported for the last week of May, surpassing 2.6 million barrels, a 22% year-on-year increase.

This is a very short time frame and quarterly increases are lower, but it goes to show that new records are broken and exports are ramping up. This is an ongoing theme as exports from the U.S. have been rising consistently for many years and the expansion of terminals in the U.S. with the most recent additions by Enterprise of the Houston Channel and Neches River expansions proved extremely well timed. Even if the pace of export increases eventually moderates, the underlying investment thesis for the planned capacity additions is proving to be sound. So we expect LPG exports to continue growing and more plans for new additions. It's important that supply chains are operating in time of strains.

In that respect, Europe proved to be less impacted as it was well supplied at the start of the conflict. LPG prices did increase impacting demand, but also naphtha prices rose even more. During May, the propane naphtha differential reached a yearly high of over $250 opening up a short window for increasing use of propane in the petrochemical sector. But in generally, high temperatures in Europe are expected to weigh in the demand. It was a different story in the East. China rushed to secure supplies.

It has just recently decreased its imports from the U.S. to 30% due to trade tensions and now unable to get Middle East supplies, the share of U.S. imports have jumped back to over 60%. India, the second largest importer was the most impacted nation. India depends on imports for 60% of its LPG consumption, mostly residential, of which 90% came from the Middle East. It has just this last November made a historic agreement with the U.S. to start importing U.S. LPG, but this diversification was not fast enough nor big enough. The immediate effect from the crunch was a drop in demand, while the government put cars on industrial consumption and renewed subsidies on residential consumption.

At the same time, local production in March increased by 30%. As more cargoes from the U.S. find their way in India, the situation should normalize. The conflict in Iran has shown how important is to have a resilient supply chains and the need for strategic reserves. We also need to keep in mind that the prolonged conflict could also eventually lead to demand destruction and longer-term investments could be abandoned, be it production facilities in the Middle East like the Qatari projects or PDH plants in China. We have not even reached a resolution yet. But even when this is done, it will take some time for the situation to normalize.

Ships will need time to reroute and installations that have been hit, particularly in Saudi Arabia will need to be repaired to be back to full operation. Countries will need to reconsider their supply agreements and their strategic reserves they hold and will need to replenish. But all this is clouded in uncertainty, and we're not in the business of making predictions. Let's move to how actually our shipping market has performed over this period. Slide 10. The market in Q1 was building on the strengthening seen in Q4, and we saw a reasonable tight tonnage availability in Europe through the quarter, resulting in rates remaining at firm levels.

The size of the European pressurized market has grown in recent years with more volumes and more vessels, and there is, in general, decent liquidity in the market compared to Southeast Asia, where we see significantly less liquidity. The 3.5 cubic meter ships and the larger pressurized ships have corrected a bit downwards from the peak as a few more vessels have positioned into this region. We expect the TC market to take somewhat of a breather over the summer as spot vessel availability increases. Ordering continue at a very slow pace, a handful of vessels mostly for [ 28 ] and [ 29 ] deliveries, some for the larger sizes of 11,000 cubic meters.

And we continue to believe that the order book remains very healthy, while the existing fleet has a large number of older ships that will eventually need to be scrapped. -- roughly 1/3 of the fleet over 20 years of age, but with a firm market, we continue to see only a few vessels being scrapped. For the handysizes, the events and inefficiencies seen in Q1 resulted in a firm freight environment overall. Rates were on a slightly firming trend Q1 and the same trend was continuing into Q2.

Most of the TCs concluded that for LPG, very few of the petchem players are willing to commit on TC as the trading environment on the petchem fluctuates significantly both on price and cargo availability. There were no new orders for the size of vessels and the current order book sitting close to 10% over the next few years remains very healthy. Similarly to Handys, the MGC market was also influenced by the commencement of the war in the Middle East. Until the war started, we were seeing a normal seasonal pattern with the firm market, but nothing extraordinary. After the war started, the market had become extremely tight and the rates for spot voyages have firmed a lot.

At the time, the MGC spot market is around all-time high, very strong, supported by a VLGC spot market, which is also at all-time high. The firming market helped absorb the incoming new buildings as we are now in a period where the vessels already ordered are starting to enter the fleet. On the plus side, unlike what continues to happen with the VLGCs, the ordering for MGCs seems to have abated. Only 2 vessels were ordered. Still the remaining order book remains substantial at close to 40%. So much will depend on demand growth in the long term to keep pace with the fleet expansion.

To conclude today's presentation, we announced today another highly profitable quarter with $16 million in net income. By zeroing the debt, we are now improving the cash flow considerably and continue to sell some of the older smaller vessels in our fleet. That means that we have grown our cash from $99 million to $131 million at the end of the quarter and to $155 million today. Our intention is to invest in renewing the fleet once the situation with the Eco Wizard is resolved.

We can neither predict nor much less influence what happens in the market, but we have steered this company in a very fortunate position with a fully flexible balance sheet with 0 debt and a growing cash pile to either weather any storm that may come or take advantage of new opportunities or simply enjoy the fruits of a very firm market. StealthGas is a solid company in a niche market with a bright outlook. We have now reached the end of our presentation. I would like to thank you for joining us at our conference call and look forward to having you with us again at our next call for our Q2 results. Thank you very much.

Operator: This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you.