GASS

Image source: The Motley Fool. Wed., Sept. 2, 2026 at 10 a.m. ET Chief Executive Officer - Harry N. Vafias Chairman - Michael G. Jolliffe Investor Relations - Konstantinos Sistovaris Operator: Good day, and thank you for standing by. Welcome to the StealthGas Second Quarter 26 Results Conference Call and Webcast. At this time, all participants are in listen-only mode. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Harry N. Vafias. Harry N. Vafias: Good morning, everyone, and welcome to our second quarter 2026 earnings and conference call. This is Harry Vafias, the CEO, and joining me today is as usual our Chairman, Mister Jolliffe, and Sistovaris from Investor Relations. Before we commence the 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. Risks are further disclosed in our filings with the Securities and Exchange Commission. Let's proceed on Slide 3 for an overview of the quarter and our strategy implementation. While the market for the second quarter was relatively stable, for the smaller ships and strengthening for the larger ones, our company managed to achieve revenues of 42.8 million similar to the previous quarter, but somewhat reduced from the record of 47 million achieved last year. The company continued to generate superior returns with profits of 17.3 million for the quarter, improving on the $15.9 million achieved in the previous quarter. Thus far in 2026, the performance has been very strong, reporting earnings per share of $0.46 for the second quarter and $0.89 for the first half, underlying the fact that the company stock is very attractive on a price to earnings multiple. Our focus has been on delivering on our strategic principles. In terms of our commercial strategy, that means keeping visible revenue stream and reducing our exposure to the volatile spot market. Currently, 45% of the fleet calendar days are covered by the time charters and total secured future revenues are 90 million. The company has also made prudent use of its capital by mostly paying down its debt over 350 million of debt prepaid over the last few years. Being 1 of the few public shipping companies having achieved zero leverage. While at the same time allocating funds for a share repurchase program and having spent about $21 million in buyback since 2023. But as the share price has appreciated, we would not buy back any shares during the second quarter. it is also part of our strategy to sell older tonnage while the market is high in order to crystallize returns and improve the averages of the fleet. With 13 vessel sales excluding JV vessels, since the start of 2023 but have amounted to approximately a 170 million. We have reduced the overall fleet from approximately 40 vessels at the start of 2023 down to 20-5 vessels. With the last latest exits, vehicle was a direct and just this week, the delivery of the Echo Royalty. We will continue to sell older and smaller tonnage although the market for LPG vessels is not very liquid in that respect. This has also allowed us to raise cash and improve the liquidity of the company. As of June 30, the cash position was 168 million. Since then, through our operational cash flow and especially the money received after successful conclusion of the EchoWizard insurance case, of over 77 million. So current liquidity has grown to over $250 million. With our cash sitting at an all-time high no outstanding issues, the market being firm, in a favorable position to deploy some of the liquidity. We have always been patient and conservative in deploying funds. Our board is reviewing all the options with a focus on the long term benefit of our company and its shareholders. On slide 4, we see our fleet employment as of September. Charging activity was relatively consistent over the past few months. We did conclude 4 new pure charts of 3 months or longer. 1 of those was for 2 years, 1 for 1 year, and the other 2 were for 6 months extensions. That leaves 4 ships operating in the spot market including 2 of the handy sizes. As we enter the winter months, we expect to find more opportunities to secure more time charters. Overall, we continue to maintain high period coverage, albeit lower than in the past. As of September, for the remainder of 2026, we have secured 60% of the fee days bringing about 50 million in revenues for the remainder of the year. for 2027, we have secured about 30 million in revenues. 1 year forward coverage stands at 45%. The total revenue secured for all future periods up to 2029 are about 90 million. Which is slightly below where we would like, but with the market being historically high, and the uncertainty surrounding the geopolitical situation, some charters are hesitant to commit to longer term business at historically high day rates. In term of dry docking, 5 ships were scheduled during this year. So far, 4 of these were completed. During the first half, and 1 vessel remains to be dry docked in the remainder of the year. Looking at the geographical allocation of the fleet, on slide 5, our company mainly focuses on regional trade and local distribution of gas, while the larger ships mostly engage in inter intercontinental voyages like loading in the in the US. Produced discharge in Europe. We continue to position the majority of our fleet, 2-thirds West of Suez, particularly in Europe and the Med, where rates can be about 30% higher than in the East and with the more active spot market. The 1 smaller ship we had in the Far East, we decided to relocate West during the summer as it faced increased of highs and is now trading in Northwest Europe. East of Suez, we only have 1 of our vessels remaining. The larger vessel that was stranded for some time inside the Persian Gulf, Harry in the summer, when there seemed to be a lot of hostilities, that vessel managed to safely exit the Hormuz Strait. The ceasefire, unfortunately, proved to be brief, and now the passage is dangerous again as both sides target vessels going through. Yet, as we hear in the news, there are still corridors being used in some vessels still managed to make this passage. I am now handing you over to Mister Sistovaris for the financial performance. Konstantinos Sistovaris: Thank you, Harry. Starting with slide 6 where we have a snapshot of the income statement for the second quarter against the same period of 2025. The second quarter was a very profitable quarter that would rank amongst the 4 best quarters on record, both in terms of revenue generation and overall profitability. However, when compared to last year, the reduced number of operational vessels in the fleet as well as an increase in idle time for the 3 of the smaller vessels operating in the spot market showed a reduction in revenues to the level of 42.9 million which was same as the previous quarter, the first quarter of 2026. Voyage expenses were higher at 7.2 million mainly as a result of increased bunker expenses and some additional insurance premiums related to the Persian Gulf. That would give a time charter equivalent rate of $15.7 thousand per vessel per day. Operating expenses were flat at 12.8 million for the quarter albeit with a smaller fleet as there was that there were cost pressures, particularly related to crew expenses. That being said, with an average of operating expenses around $5.11 thousand per vessel per day, the company continues to run amongst the most efficient shipping operators in terms of cost structure. This quarter, only 1 vessel was dry docked towards the end of the quarter, so we may have some spillover next quarter. Another item that influenced the results this quarter positively was a small gain of 1.3 million from the S&P activity. Also note that we benefited by an increase in financial gains of $1 million as we saw both a reduction in interest costs and an increase in interest income compared to last year. As the company no longer pays any loan interest following the debt extinguishment and has considerably increased its cash balances. Net income for the second quarter was 17.3 million, 15% below the 20.4 million achieved last year. Earnings per share for the quarter were $0.46, on an adjusted and non-adjusted basis. The company continues to operate on a very high profit margin of 40%, meaning for every dollar of revenue, is converted to $0.40 of profit. Looking at the balance sheet at the next slide, 7, as of 6/30/2026, the most important point to consider is the fast growth in the company's cash position. In the space of 6 months, the company grew its liquidity consisting of cash and short term investments by 70% from 99 million to 168.3 million. This 70 million increase in the liquidity position was achieved through the sale of 2 small vessels and a $40 million improvement in operational cash flow. Vessels held for sale as of June 30 was $10 million with the proceeds expected to boost the cash position in Q3. The book value of the 20-4 vessels in the fleet was 473 million, reduced by 3.7%. Current assets were steady at 81.5 million with a large part the 64 million being the book value and related expenses of the medium gas carrier, as this was resolved in the next quarter the company received all the proceeds and more, based on the market values and this will be moved to the cash in the next quarter. On the liability side, we want to show again that debt remains zero debt and the total liabilities of the company are a mere 28 million. All current, mainly trade payables from its operations and deferred income from monthly hires. In a very short time, the company has achieved 1 of the healthiest balance sheets in the shipping space. Shareholders' equity increased over the 6 month period by 36.4 million to 726 million. A 5% increase. Moving on to slide 8, where we repeat how StealthGas achieved its strategic goal of deleverage. The company in the past always relied on moderate leverage to finance its capital requirements. Since the beginning of 2023, in a little over 2.5 years, our cash flow improved, it, it aggressively repaid about 350 million and became, in July 2025, A little over a year ago, for the first time, a debt free company. The elimination of bank debt enhanced dramatically the financial flexibility of the company. When the time comes for expansion. While at the same time achieving significant savings in interest costs with no debt amortization or interest payments the cash flow breakeven for the fleet is significantly reduced. Enhancing the fleet competitiveness while at the same time and also due to S and P activity, liquidity has been improving every quarter and is at the highest point it has ever been. I will now hand you over to our Chairman, Mister Michael Jolliffe, for some insights on the market. Michael Jolliffe: Good morning. At the forefront, of course, is the conflict with Iran. And the closure of the straits. 1-third of LPG supply came from The Middle East and the majority going through the Straits of Hormuz. As a result of the conflict in the Persian Gulf, global exports of LPG in the first half of 2026 fell by 8%. This is certainly a large number, and would have led to significant downward pressure in rates were it not for the increase in tonne miles. Instead, rates for VLGCs hit new records and continue to remain at very high levels as more product was sourced from The US. It was reported that US LPGX exports hit a record of 2.9 million barrels per day in May, while EIA data show that propane ex exports were up by 9% in the second quarter. Many vessels previously trading in Middle East have been repositioned to The US, and many of these, 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. We also read reports lately of increasing Panama Canal fees and possible restrictions in the number of vessels passing through there, due to low water levels, result of drought caused by El Nino. This ramp up of US exports is an ongoing theme. As exports from The US have been rising consistently for many years, and The US currently accounts for 55% of the world's air FPG supply. As previously discussed, the expansion of terminals in The US will continue with projects running into the early 2030s, and the more recent news on that front was that Energy Transfer announced in June another project to increase export capacity from Netherland. On the other side of the Atlantic, Europe remained well supplied with US product. As more propane cargoes entered the continent, the propane and naphtha differential induced petrochemical producers to favor the former keeping the market active. In addition, 2 crackers in Ternes Inn and Sea Nest came back online after a long absence supporting petrochemical demand. On the other hand, residential demand weakened as a result of lack of heating needs during the summer. There may be premature expectation of the conflict resolution seen in backward dated future prices also discouraged stock building. So while Europe remained well supplied the situation in the Strait of Hormuz has not changed. Asian countries imported 46% of their LPG supply from that area, before the conflict began. Now we only see a handful of LPG vessels daring to cross the straits while efforts to bypass the straits and export through Oman or the Red Sea produced some additional volumes not enough to cover Asian customers. Recently, the Houthis have started targeting Saudi vessels while in the Red Sea, and if this escalates, it could become another blocked choke point. As a result of the geopolitical turmoil demand in Asia, registered large drops India, the second largest importer of LPG, saw demand fall by 20%. But the establishment of new trading routes is going to have a longer lasting effect once the conflict ends. Last month, it was reported in the Indian press that there are plans to diversify the sources of LPG and start importing at least 25% from The US through supply contracts with US exporters. To remind you, it was about a year ago during the trade disputes that India had just announced they would increase their LNG imports from The US from nearly 0 to 10%. Similar to the situation in India, China, the world's largest importer of LPG, saw imports fall by 29% in the second quarter. The temporary reopening of the straits during July saw a temporary surge in imports, but demand remains weaker as a result of continuous low utilization rates from PDH plants, and higher propane prices, and that has an effect on local trading smaller vessels. The conflict in Iran has shown how important it is to have resilient supply chains and the need for strategic reserves. For the time being, it seems the conflict has entered a stalemate. The beneficiaries at this point are The US exporters and shipping, But if the situation persists in the longer term, it could 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. After this brief overview of the product market, let us move to how our shipping market has performed over this period. Moving to slide 10 to update you on the commercial side. The spot market in Quarter 2 followed the typical seasonal trend of softening compared to Quarter 1. Although rates have still remained at firm levels compared to the historical average. TCE rates remained relatively flat as the balance between tonnage supply and demand has remained relatively balanced with limited movement of vessels in and out. There were a handful of new orders for vessels, enough to keep the supply steady at a low pace. I am not worried about the order book as for quite some time now, it has been restrained. While the existing fleet has a large number of older vessels, that will eventually need to be scrapped. Roughly 1-third of the fleet is over 20 years of age but with the firm market, we continue to see only a few vessels being decommissioned. Handysize owners enjoyed a firming spot market in Quarter 2 as the effects of the US Iran war and the Hormuz closure trickled down from the larger sizes. LPG trading on the handies became more active as the MGCs disappeared from the position lists. On the time charter side, rates are holding at historically very firm levels. Again, there were no new orders for this size of vessel and the current order book sitting close to 10% over the next few years remains very healthy. The MGC spot market got a significant boost in Quarter 2 as the VLGCs shot up to all time highs following the closure of Hormuz and the significant increase in US loadings. To compensate for the AG shortfalls. This led to significant increase in the requirements for transatlantic voyages on the MGCs, with swap rates jumping to levels never seen before. Time charter rates improved significantly through Quarter 2 and are currently sitting at historically very firm levels. The firming market helped absorb the incoming new buildings as we are now in a period where the vessels previously ordered are starting to enter the fleet. Unlike the VLGC market where once more we saw a larger number of orders being placed over the last 3 months, the MGC order book with no new orders has started coming down. Yet the order book sits around 40% of the existing fleet, And while in the short term, conflicts of increased tonne miles, it could prove detrimental to rates in the future if demand does not keep pace despite the optimism. To conclude today's presentation, the second quarter was challenging to navigate due to the developing geopolitical turbulence. Through our strong operating platform and solid business, we once more reported superior returns for our shareholders. For the first 6 months of this year, we already recorded earnings per share of $0.89. We are confident that profitability will remain elevated in the second half of the year. After having successfully resolved all major outstanding issues, our attention turns to the optimal utilization of our growing liquidity. That has reached an all time high of over $250 million currently. Our intention is to invest in renewing the fleet We have placed StealthGas in the very fortunate position of having a fully flexible balance sheet with zero debt and a growing cash pile operating in a niche market with solid fundamentals. We have now reached the end of our presentation. We would like to thank you for joining us at our conference call today We look forward to having you with us again at our next conference call for our third quarter results. Thank you. Operator: This concludes today's conference call. Thank you. You may now all disconnect. Have a nice day. Before you buy stock in StealthGas, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and StealthGas wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $435,803!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,577!* Now, it’s worth noting Stock Advisor’s total average return is 966% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 2, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. StealthGas (GASS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in StealthGas, Inc.? Here are five stocks we like better. StealthGas remained profitable in Q2, reporting net income of $17.3 million, or $0.46 per share, despite revenue falling to about $42.8 million from $47 million a year earlier due to a smaller fleet and vessel idle time. The company strengthened its financial position, with liquidity exceeding $250 million after vessel sales, operating cash flow and a $77 million insurance settlement. StealthGas remained debt-free and plans to prioritize fleet renewal and capital deployment. Geopolitical disruptions reshaped LPG trade flows and supported freight rates, particularly for Handysize and medium gas carriers. Management expects profitability to remain elevated in the second half of 2026 while increasing time-charter coverage and positioning most of the fleet west of Suez. Best Ultra-Value Stocks Set for Long-Term Growth StealthGas (NASDAQ:GASS) reported second-quarter net income of $17.3 million, or $0.46 per share, as the liquefied petroleum gas shipping company maintained profitability despite lower revenue than a year earlier and a smaller operating fleet. Chief Executive Officer Harry Vafias said quarterly revenue totaled $42.8 million, roughly in line with the first quarter but below the $47 million reported in the prior-year period. He said the market was relatively stable for smaller vessels during the quarter and strengthened for larger ships. → Boarding Call: EHang Secures First-Mover Altitude The company reported first-half earnings per share of $0.89. Vafias said StealthGas has continued to focus on increasing revenue visibility through time-charter coverage while reducing exposure to the spot market. As of September, StealthGas had secured approximately $90 million in future revenue through 2029, with 45% of fleet calendar days covered by time charters on a one-year-forward basis. The company had secured about $50 million of revenue for the remainder of 2026, representing 60% of fleet days, and about $30 million for 2027. → Medtronic’s Stars Are Aligning for a Price Recovery Vafias said the company completed four new period charters lasting at least three months, including one two-year contract, one one-year contract and two six-month extensions. Four vessels remained in the spot market, including two Handysize vessels. “As we enter the winter months, we expect to find more opportunities to secure more time charters,” Vafias said. → Dutch Bros Sell-Off Creates a Growth Opportunity He added that long-term charter commitments have been more difficult to secure because charterers have been hesitant to lock in historically high day rates amid geopolitical uncertainty. The company continued to sell older and smaller vessels as part of its fleet-renewal strategy. Since the beginning of 2023, StealthGas has sold 13 vessels, excluding joint-venture vessels, for approximately $170 million. Its fleet has declined from about 40 vessels at the start of 2023 to 25 vessels following the latest exits, including the Eco Wizard and Eco Royalty. The company completed four of five scheduled dry dockings during the first half, with one remaining for the rest of the year. Konstantinos Sistovaris, StealthGas’ head of investor relations, said second-quarter revenue was $42.9 million, compared with $47 million a year earlier. The decline reflected the smaller fleet and increased idle time for three smaller vessels operating in the spot market, he said. Voyage expenses rose to $7.2 million, driven primarily by higher bunker costs and additional insurance premiums associated with the Persian Gulf. Time-charter-equivalent rates were $15,710 per vessel per day. Operating expenses were $12.8 million, or approximately $5,310 per vessel per day. The company recorded a $1.3 million gain from vessel sale-and-purchase activity. Financial gains increased by $1 million from the prior-year period as interest costs declined and interest income rose. Net income was down 15% from $20.4 million in the second quarter of 2025. Sistovaris said the company’s profit margin was 40%, meaning it converted $0.40 of every revenue dollar into profit. StealthGas reported liquidity, consisting of cash and short-term investments, of $168.3 million as of June 30, up 70% from $99 million at the start of the year. The increase was supported by sales of two smaller vessels and a $40 million improvement in operating cash flow. Vafias said liquidity had subsequently exceeded $250 million, supported by operational cash flow and more than $77 million received following the resolution of the Eco Wizard insurance case. The company had no outstanding debt as of June 30, while total liabilities were $28 million, primarily consisting of operational trade payables and deferred charter income. StealthGas repaid more than $350 million of debt over the past several years and became debt-free in July 2025, according to Sistovaris. StealthGas has also spent approximately $21 million on share repurchases since 2023, although Vafias said it did not repurchase shares in the second quarter because the stock price had appreciated. Chairman Michael Jolliffe said the conflict involving Iran and the closure of the Strait of Hormuz had reshaped LPG trade flows. He said global LPG exports fell 8% in the first half of 2026, but greater ton-mile demand helped support freight rates as more cargoes were sourced from the United States. U.S. LPG exports reached a record 2.9 million barrels per day in May, while U.S. propane exports rose 9% during the second quarter, according to data cited by Jolliffe. He said vessels that had previously operated in the Middle East had repositioned toward the U.S. and were often returning to Asia via the Cape of Good Hope, adding approximately 45 days to voyages. StealthGas has positioned about two-thirds of its fleet west of Suez, particularly in Europe and the Mediterranean, where Vafias said rates can be approximately 30% higher than in the East and the spot market is more active. The company relocated one smaller vessel from the Far East to Northwest Europe during the summer after it faced increased off-hire time. The company has one vessel remaining east of Suez. Vafias said a larger vessel that had been stranded in the Persian Gulf earlier in the summer exited the Strait of Hormuz during a lull in hostilities, though conditions in the passage subsequently became dangerous again. Jolliffe said Asian demand had weakened amid the conflict and higher propane prices. India’s LPG demand fell 20%, while China’s imports declined 29% in the second quarter, he said. However, he noted that supply-chain disruptions could lead importers to diversify sourcing, including potential increased U.S. LPG purchases by India. Jolliffe said Handysize spot rates strengthened in the second quarter as disruptions in larger vessel markets filtered down into smaller segments. Medium gas carrier spot rates also rose sharply as higher U.S. loadings increased demand for transatlantic voyages. He said the Handysize order book remained near 10% of the fleet over the next several years, while approximately one-third of the existing fleet is more than 20 years old. The medium gas carrier order book stands at about 40% of the current fleet, however, which could pressure rates if demand does not keep pace. With no debt and more than $250 million of current liquidity, management said its attention has turned to deploying capital, with fleet renewal identified as its intended investment focus. Jolliffe said the company expects profitability to remain elevated in the second half of 2026. StealthGas Inc is an international shipping company specializing in the seaborne transportation of liquefied petroleum gases (LPG), including propane, butane and ammonia. The company operates a fleet of modern pressurized LPG carriers with capacities ranging from approximately 2,500 to 9,100 cubic meters, providing safe and efficient carriage of petrochemical gases worldwide. Founded in 2005 and incorporated in the Republic of the Marshall Islands, StealthGas is headquartered in Athens, Greece, with additional commercial and operational offices in major shipping centers across Europe and Asia. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "StealthGas Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

This article first appeared on GuruFocus. Release Date: September 02, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. StealthGas Inc (NASDAQ:GASS) reported strong second-quarter 2026 profits of $17.3 million, improving from the previous quarter's $15.9 million, with earnings per share of $0.46 for the quarter and $0.89 for the first half of the year. The company has achieved a debt-free balance sheet, having prepaid over $350 million in debt since 2023, which has significantly reduced its cash flow breakeven and enhanced financial flexibility. StealthGas Inc (NASDAQ:GASS) has a robust liquidity position, with cash and short-term investments growing to over $250 million, an all-time high, providing ample capital for future fleet renewal and strategic investments. The company maintains a high profit margin of 40%, converting $0.40 of every dollar of revenue into profit, and continues to operate with one of the most efficient cost structures in the shipping industry, with average operating expenses around $5,310 per vessel per day. The LPG shipping market is experiencing firm rates, particularly for MGCs and Handysize vessels, driven by increased tonne-miles from US exports and geopolitical disruptions, which has led to historically high spot and time charter rates. StealthGas Inc (NASDAQ:GASS) experienced a 15% year-over-year decline in net income for the second quarter, with revenues falling to $42.9 million from the record $47 million achieved last year, partly due to a reduced fleet size and increased idle time for smaller vessels. The company faces higher voyage expenses, which increased to $7.2 million due to elevated bunker costs and additional insurance premiums related to operations in the Persian Gulf region. Geopolitical tensions, particularly the conflict with Iran and the closure of the Strait of Hormuz, have created significant uncertainty, leading to a 8% drop in global LPG exports and potential long-term demand destruction if the situation persists. The orderbook for MGCs remains high at around 40% of the existing fleet, which could prove detrimental to future rates if demand does not keep pace with the incoming newbuildings. StealthGas Inc (NASDAQ:GASS) has secured lower future revenues than desired, with total secured revenues of about $90 million up to 2029, as charterers are hesitant to commit to long-term contracts at historically high day rates due to geopolitical uncertainty. Warning! GuruFocus has detected 7 Warning Sign with GASS. Is GASS fairly valued? Test your thesis with our free DCF calculator. Q: What were the key financial highlights for StealthGas in the second quarter of 2026, and how did they compare to previous periods?A: Harry Vafias (CEO) reported revenues of $42.8 million, similar to the previous quarter but down from the $47 million record in Q2 2025. Net income was $17.3 million, improving from $15.9 million in Q1 2026, with earnings per share of $0.46 for the quarter and $0.89 for the first half. The company maintained a high profit margin of 40%, and its cash position grew to an all-time high of over $250 million following the resolution of the Eco Wizard insurance case. Q: How is the company positioned regarding its fleet employment and future revenue coverage?A: Harry Vafias (CEO) stated that 45% of fleet calendar days are covered by time charters, securing $90 million in total future revenues. For the remainder of 2026, 60% of fleet days are secured, bringing in about $50 million, while 2027 has $30 million in secured revenues. The company concluded four new period charters, including a two-year and a one-year charter, and expects more opportunities to secure time charters as it enters the winter months. Q: What is the company's current balance sheet and liquidity position, and how has it changed?A: Konstantinos Sistovaris (CFO) highlighted that the company achieved zero debt in July 2025 and has since grown its liquidity by 70% in six months, from $99 million to $168.3 million as of June 30. After receiving over $77 million from the Eco Wizard insurance case, current liquidity exceeds $250 million. Total liabilities are a mere $28 million, and shareholders' equity increased by $36.4 million to $726 million. Q: How has the geopolitical situation in the Persian Gulf affected the LPG shipping market and StealthGas's operations?A: Michael Jolliffe (Chairman) explained that the conflict and closure of the Strait of Hormuz led to an 8% fall in global LPG exports in H1 2026. However, rates for VLGCs hit new records due to increased tonne-miles as more product was sourced from the US, with US LPG exports reaching a record 2.9 million barrels per day in May. StealthGas had one vessel stranded in the Persian Gulf that safely exited during a brief ceasefire, but the passage has since become dangerous again. Q: What is the company's strategy regarding vessel sales and fleet renewal?A: Harry Vafias (CEO) noted that since the start of 2023, the company has sold 13 vessels for approximately $170 million, reducing the fleet from about 40 vessels to 25. The latest exits were the Eco Wizard and Eco Royalty. The company plans to continue selling older and smaller tonnage while the market is high to crystallize returns and improve the average age of the fleet, with the intention to invest in renewing the fleet using its growing liquidity. Q: How did the company's operating expenses and cost structure perform during the quarter?A: Konstantinos Sistovaris (CFO) reported that operating expenses were flat at $12.8 million for the quarter, despite a smaller fleet, due to cost pressures particularly related to crew expenses. The average operating expense was around $5,310 per vessel per day, which the company states continues to rank it among the most efficient shipping operators in terms of cost structure. Q: What are the current market conditions for the different vessel sizes in the LPG sector?A: Michael Jolliffe (Chairman) stated that Handysize owners enjoyed a firming spot market in Q2 as the effects of the Hormuz closure trickled down from larger sizes, with no new orders for this size and a healthy orderbook around 10%. The MGC spot market got a significant boost as VLGC rates hit all-time highs, leading to MGC spot rates jumping to levels never seen before. However, the MGC orderbook sits around 40% of the existing fleet, which could prove detrimental to rates in the future if demand does not keep pace. Q: How has the company's share repurchase program progressed, and why were no shares bought back in Q2?A: Harry Vafias (CEO) mentioned that the company has spent about $21 million on buybacks since 2023. However, as the share price has appreciated, the company did not buy back any shares during the second quarter of 2026. The Board is reviewing all options for deploying the company's growing liquidity with a focus on long-term benefit for the company and its shareholders. Q: What impact have the geopolitical issues had on demand in key Asian markets?A: Michael Jolliffe (Chairman) reported that Asian countries imported 46% of their LPG supply from the Persian Gulf before the conflict. India, the second-largest importer, saw demand fall by 20%, while China, the world's largest importer, saw imports fall by 29% in Q2. There are plans for India to diversify sources and start importing at least 25% from the US, which could have longer-lasting effects on trading routes once the conflict ends. Q: What is the outlook for the second half of 2026, and what are the company's priorities?A: Harry Vafias (CEO) expressed confidence that profitability will remain elevated in the second half of the year. The company's attention now turns to the optimal utilization of its growing liquidity, which has reached an all-time high of over $250 million. The intention is to invest in renewing the fleet, leveraging the company's fully flexible balance sheet with zero debt and a growing cash pile operating in a niche market with solid fundamentals. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a debt-free balance sheet following $350 million in prepayments since 2023, significantly reducing cash flow breakeven points and enhancing financial flexibility. Maintained high profitability with a 40% margin, driven by efficient cost structures and increased interest income from a growing cash position. Executed a fleet optimization strategy by selling 13 older vessels since 2023 to crystallize returns and improve the average age of the fleet. Shifted vessel allocation to the West of Suez (Europe and Med) where spot rates are approximately 30% higher than in Eastern markets. Navigated significant geopolitical disruptions in the Persian Gulf, successfully extracting a stranded vessel from the Hormuz Strait during a brief ceasefire. Reduced exposure to the volatile spot market by securing time charters for 45% of fleet calendar days, despite charterer hesitation at historically high day rates. Management is evaluating options to deploy a record liquidity position of over $250 million, with a primary focus on fleet renewal and long-term shareholder benefit. Anticipates increased opportunities to secure time charters during the winter months as seasonal demand typically firms. Projects continued profitability through the second half of 2026, supported by $50 million in already secured revenues for the remainder of the year. Monitors potential demand destruction risks if Middle East conflicts persist, which could lead to the abandonment of long-term production and petrochemical investments. Expects US LPG exports to remain a dominant market driver through the early 2030s as terminal expansions continue to increase global supply share. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Successfully concluded the Echo Wizard insurance case, resulting in a cash inflow of over $77 million in the third quarter. Suspended share buybacks during the second quarter due to the appreciation of the company's stock price. Identified the MGC order book at 40% of the existing fleet as a potential future risk if demand growth does not keep pace with new vessel deliveries. Noted that while the US-Iran conflict has increased ton-miles, it has caused a 20% drop in LPG demand in India and a 29% drop in China during Q2.

ATHENS, Greece, Sept. 02, 2026 (GLOBE NEWSWIRE) -- STEALTHGAS INC. (NASDAQ: GASS), a ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today its unaudited financial and operating results for the second quarter and six months ended June 30, 2026. OPERATIONAL AND FINANCIAL HIGHLIGHTS Strong profitability continued for the second quarter, with Net income of $17.3 million corresponding to a basic EPS of $0.46, 8.8% higher than the previous quarter’s $15.9 million but reduced compared to the $20.4 million achieved in the second quarter of 2025. Revenues recorded were $42.9 million in the second quarter, same as the previous quarter. TCE rates improved for the larger vessels but were slightly reduced for the smaller vessels due to idle time, representing an average daily TCE of $15,709. Continued focus on period coverage. About 60% of fleet days for the remainder of 2026 are secured on period charters, with total fleet employment days for all periods generating about $90 million (excl. our single JV vessel) in contracted revenues. All of the vessels in the fully owned fleet are unencumbered. The Company has paid down all its bank debt since Q3 2025. The Company strengthened its liquidity with cash and cash equivalents and short term investments of $168.3 million as of June 30, 2026 and has enhanced it further to over $250 million currently following the successful resolution of the insurance claim for the loss of one of its vessels. Second Quarter 2026 Results1: Revenues for the three months ended June 30, 2026, amounted to $42.9 million compared to revenues of $47.2 million for the three months ended June 30, 2025, based on an average of 26.4 vessels and 28.3 vessels owned by the Company, respectively. The decrease in revenue is attributable to the decreased number of vessels. Voyage expenses and vessels’ operating expenses for the three months ended June 30, 2026 were $7.2 million and $12.8 million, respectively, compared to $4.4 million and $12.8 million, respectively, for the three months ended June 30, 2025. The $2.8 million increase in voyage expenses was mainly due to an increase in bunkers costs driven by an increase in the number of spot market days for the fleet and higher bunker prices. The vessels’ operating expenses remained at the same level, despite decrease in average number of vessels. Drydocking costs for both the three months ended June 30, 2026 and 2025 were $0.5 million and $0.6 million, respectively. General and administrative expenses for the three months ended June 30, 2026 and 2025 were $1.9 million and $2.0 million, respectively. The change is mainly attributed to the decrease in stock-based compensation expense. Depreciation for the three months ended June 30, 2026 and 2025 was $5.9 million and $6.6 million, respectively. The $0.7 million decrease is mainly related to the decrease in average number of vessels owned by the Company. Gain on sale of vessels for the three months ended June 30, 2026 was $1.3 million compared to loss of $0.1 million for the same period last year. The gain was attributable to the sale of one vessel during the three months ended June 30, 2026 compared to a loss recognized on the sale of one vessel during the corresponding period in 2025. Interest and finance costs for the three months ended June 30, 2026 and 2025, were $0.006 million and $0.6 million, respectively. The $0.6 million decrease from the same period of last year is primarily due to full debt prepayments. Interest income for the three months ended June 30, 2026 and 2025, was $1.2 million and $0.7 million, respectively. The $0.5 million increase from the same period of last year is primarily due to increase in amounts of time deposits. Equity earnings in joint ventures for the three months ended June 30, 2026 and 2025 were a gain of $1.3 million and $0.7 million, respectively. The $0.6 million increase is primarily due to the higher charter rates of the JV vessel. As a result of the above, for the three months ended June 30, 2026, the Company reported net income of $17.3 million, compared to net income of $20.4 million for the three months ended June 30, 2025. The weighted average number of shares outstanding, basic, for the three months ended June 30, 2026 and 2025 was 36.7 million and 35.8 million, respectively. Earnings per share, basic, for the three months ended June 30, 2026, amounted to $0.46 compared to earnings per share, basic, of $0.55 for the same period of last year. Adjusted net income was $17.2 million corresponding to an Adjusted EPS of $0.46 for the three months ended June 30, 2026 compared to Adjusted net income of $21.7 million corresponding to an Adjusted EPS of $0.59 for the same period of last year. EBITDA for the three months ended June 30, 2026 amounted to $22.1 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below. An average of 26.4 vessels were owned by the Company during the three months ended June 30, 2026 compared to 28.3 vessels for the same period of 2025. Six Months 2026 Results1: Revenues for the six months ended June 30, 2026, amounted to $85.8 million compared to revenues of $89.3 million for the six months ended June 30, 2025, based on an average of 27.1 vessels and 28.1 vessels owned by the Company, respectively. The decrease in revenue is attributable to the decreased number of vessels. Voyage expenses and vessels’ operating expenses for the six months ended June 30, 2026, were $13.4 million and $26.6 million, respectively, compared to $9.5 million and $26.2 million, respectively, for the six months ended June 30, 2025. The $3.9 million increase in voyage expenses was mainly due to an increase in war risk insurance expenses. The vessels’ operating expenses mainly remained at the same levels. Drydocking costs for the six months ended June 30, 2026 and 2025 were $3.0 million and $1.0 million, respectively. Drydocking expenses during the six months of 2026 mainly relate to the completion of three vessels’ drydockings, compared to the same period of last year which included the completion of one vessel’s drydocking and the ongoing drydocking of another vessel. General and administrative expenses for the six months ended June 30, 2026 and 2025 were $3.9 million and $4.2 million, respectively. The change is mainly attributed to the decrease in stock-based compensation expense. Depreciation for the six months ended June 30, 2026 and 2025 was $11.6 million and $13.3 million, respectively, a $1.7 million decrease is mainly related to the decrease in average number of vessels owned by the Company. Impairment loss for the six months ended June 30, 2026 and 2025 was $0.3 million and $0.5 million, respectively. As a result of the agreed sale terms for one vessel expected to be delivered in the third quarter of 2026, a non-cash impairment loss of $0.3 million was recognized in the first quarter of 2026. Gain on sale of vessels for the six months ended June 30, 2026 was $3.9 million compared to loss of $0.1 million for the same period last year. The gain was attributable to the sale of two vessels during the six months ended June 30, 2026 compared to a loss recognized on the sale of one vessel during the corresponding period in 2025. Interest and finance costs for the six months ended June 30, 2026 and 2025, were $0.01 million and $2.0 million, respectively. The $1.99 million decrease from the same period of last year is primarily due to full debt prepayments. Interest income for the six months ended June 30, 2026 and 2025, was $2.1 million and $1.5 million, respectively. The increase of $0.6 million is mainly attributed to the increase in the amounts of time deposits. Equity earnings in joint ventures for the six months ended June 30, 2026 and 2025 were a gain of $2.4 million and $2.9 million, respectively. The $0.5 million decrease is primarily due to decrease in number of the vessels owned by our joint ventures compared to the same period of last year. As a result of the above, for the six months ended June 30, 2026, the Company reported net income of $33.2 million, compared to net income of $34.5 million for the six months ended June 30, 2025. The weighted average number of shares outstanding, basic, for the six months ended June 30, 2026 and 2025 was 36.6 million and 35.8 million, respectively. Earnings per share, basic, for the six months ended June 30, 2026 amounted to $0.89 compared to earnings per share, basic, of $0.93 for the same period of last year. Adjusted net income was $32.2 million corresponding to an Adjusted EPS of $0.86 for the six months ended June 30, 2026 compared to Adjusted net income of $37.9 million corresponding to an Adjusted EPS of $1.02 for the same period of last year. EBITDA for the six months ended June 30, 2026 amounted to $42.8 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below. An average of 27.1 vessels were owned by the Company during the six months ended June 30, 2026 compared to 28.1 vessels for the same period of 2025. 1 EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Refer to the reconciliation of these measures to the most directly comparable financial measure in accordance with GAAP set forth later in this release. Fleet Update Since Previous Announcement The Company announced the conclusion of the following chartering arrangements (of three or more months duration): A two year time charter for its 2007 built LPG carrier Gas Flawless until Jul 2028. A one year time charter for its 2016 built LPG carrier Eco Dominator until Sep 2027. A six months time charter extension for its 2012 built LPG carrier Gas Husky until Mar 2027. A six months time charter extension for the JV owned 2023 built LPG carrier Eco Sorcerer until Feb 2027. As of September 2026, the Company has total contracted revenues of approximately $90 million (excluding the JV vessel), while for the remainder of the year the Company has circa 60% of fleet days secured under period contracts and contracted revenues of approximately $30 million (excluding the JV vessel). CEO Harry Vafias Commented The second quarter was challenging to navigate due to the developing geopolitical turbulence. The continuous rise in attacks on commercial vessels is a worrying development for everyone involved in shipping. Through our strong, debt-free operating platform and solid business, we once more reported superior returns for our shareholders. For the first six months of this year we recorded earnings per share of $0.89. We are confident that profitability will remain elevated. After having successfully resolved all major outstanding issues, our attention turns to the optimal utilization of our growing liquidity that has reached an all-time high of over $250 million currently. As always, we are guided by patience and dynamism in order to secure the long term success of the Company. Conference Call details: On September 2, 2026 at 10:00 am ET, the company’s management will host a conference call to discuss the results and the company’s operations and outlook.Conference call participants should pre-register using the below link to receive the dial-in numbers and a personal PIN, which are required to access the conference call.https://register-conf.media-server.com/register/BI7c97b65f674a48169d15851ed05283e3 Slides and audio webcast: There will also be a live and then archived webcast of the conference call, through the STEALTHGAS INC. website (www.stealthgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast. About STEALTHGAS INC. StealthGas Inc. is a ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry. StealthGas Inc. has a fleet of 26 LPG carriers, including one Joint Venture vessel, in the water. These LPG vessels have a total capacity of 288,542 cubic meters (cbm). StealthGas Inc.’s shares are listed on the Nasdaq Global Select Market and trade under the symbol “GASS.”Visit our website at www.stealthgas.com Forward-Looking Statements Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, including regarding contracted revenue, market conditions and pending vessel sales, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although STEALTHGAS INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, STEALTHGAS INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, geopolitical conditions, including any trade disruptions resulting from tariffs and other protectionist measures imposed by the United States, China or other countries, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in STEALTHGAS INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in any financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, the conflict in Ukraine and related sanctions, tensions in the Middle East and particularly the war in the Persian Gulf, potential disruption of shipping routes due to attacks by Houthis in the Red Sea and Gulf of Aden, accidents and political events or acts by terrorists. Risks and uncertainties are further described in reports filed by STEALTHGAS INC. with the U.S. Securities and Exchange Commission. Fleet List        For information on our fleet and further information:Visit our website at www.stealthgas.com Fleet Data: The following key indicators highlight the Company’s operating performance during the periods ended June 30, 2025 and June 30, 2026. 1) Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.2) Total calendar days for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.3) Total voyage days for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.5) Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.6) Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.7) Fleet operational utilization is the percentage of time that our vessels generated revenue and is determined by dividing voyage days excluding commercially idle days by fleet calendar days for the relevant period. Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS: Adjusted net income represents net income before impairment loss, net gain/loss on sale of vessels and share based compensation. EBITDA represents net income before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents net income before interest and finance costs, interest income, depreciation, impairment loss, net gain/loss on sale of vessels and share based compensation. Adjusted EPS represents Adjusted net income divided by the weighted average number of shares. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we and our investors assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide investors with a means of better evaluating and understanding our operating performance. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries. In evaluating Adjusted EBITDA, Adjusted net income and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. CONTACT: Company Contact: Konstantinos Sistovaris Investor Relations STEALTHGAS INC. 00-30-210-6250-001 E-mail: [email protected]

Image source: The Motley Fool. Friday, June 5, 2026 at 10 a.m. ET Chairman of the Board of Directors — Michael Jolliffe Chief Executive Officer — Harry Vafias Investor Relations — Konstantinos Sistovaris Need a quote from a Motley Fool analyst? Email [email protected] 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. Before you buy stock in StealthGas, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and StealthGas wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,847!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,342,065!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of June 5, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. StealthGas (GASS) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Interested in StealthGas, Inc.? Here are five stocks we like better. StealthGas posted higher Q1 revenue of $42.8 million, with adjusted net income of $15 million and adjusted EPS of $0.40. The company said results were supported by a firm LPG shipping market despite fewer revenue-earning days. The balance sheet remains debt-free and cash-rich, with cash rising to $131.2 million at quarter-end and management later citing about $155 million on the call. StealthGas has repaid $350 million of debt over three years and says the zero-debt structure improves flexibility and lowers breakeven costs. Revenue visibility is strong, with about $100 million in contracted revenue and 55% of fleet days for the rest of 2026 already fixed. Management also said the company is selling older vessels, while the unresolved Eco Wizard insurance matter should be settled within the current month or next quarter. Best Ultra-Value Stocks Set for Long-Term Growth StealthGas (NASDAQ:GASS) reported higher first-quarter revenue and continued to emphasize its debt-free balance sheet, growing cash position and charter coverage during its first-quarter 2026 earnings call. Chairman Michael Jolliffe said revenue rose to $42.8 million in the quarter, up 2% from $42 million in the first quarter of 2025 and 9% from $39.4 million in the prior quarter. Adjusted net income was $15 million, compared with $16 million a year earlier and $13.3 million in the previous quarter. Adjusted earnings per share were $0.40. → Coke's $10B India IPO Plan Pops the Top on Hidden Value Jolliffe said the company has maintained “a very flexible capital structure” after completing its strategic deleveraging goal last July. He noted that StealthGas repaid $350 million of debt over the prior three years and now has zero bank debt. The company has also repurchased $21.2 million of shares since 2023, though it did not repurchase shares during the first quarter as the stock price appreciated. StealthGas said it had about $100 million in contracted revenue as of June, with charters extending as far as 2029. Jolliffe said 45% of fleet calendar days one year forward are secured by period charters, while 55% of fleet days for the remainder of 2026 are already fixed, representing about $52 million in revenue for the rest of the year. → MongoDB Is the Latest SaaS Apocalypse Victim to Say "Not Today" The company concluded five new period charters of three months or longer during the period following its prior update. Jolliffe said one charter was for two years, one for one year and three for six months. Despite that activity, he said spot exposure had increased entering the summer months, with five operating vessels in the spot market. “Our intention is to reduce the spot exposure,” he said. StealthGas also continued to sell older tonnage. Jolliffe said the company entered into a contract in March to sell the Eco Royalty, with delivery expected in September. Two other vessels previously agreed for sale were delivered to buyers in March and May. → Microsoft Build 2026 Is Really Just One Big AI Stress Test The company also addressed the Eco Wizard, which remains non-operational following an incident last July. Jolliffe said discussions with the vessel’s insurers are progressing but declined to disclose details. He said the company expects the matter to be resolved “within the current month or coming quarter.” Constantinos Christovaris of investor relations said StealthGas operated a fleet that was “almost similar” to the prior-year period at 28 vessels, but revenue-earning days declined by 8.5%. He attributed the decrease to dry dock timing, when vessels are off hire, and the inclusion of the non-operational Eco Wizard. Despite fewer revenue-earning days, revenue increased 1.9% year over year. Christovaris said vessels continued to operate in a firm market, with larger vessel sizes reporting improved results. Voyage expenses increased by $1 million, including additional insurance premiums related to the Middle East conflict. Operating expenses were $13.8 million, only slightly higher than a year earlier. Dry docking costs increased significantly because three of the five vessels scheduled for dry docking in 2026 were dry docked in the first quarter, compared with one vessel in the prior-year period. The company also recorded a $2.5 million gain from the sale of one vessel, with the sale agreement signed last year and delivery completed in March. Interest costs fell by $1.4 million year over year because the company no longer pays interest following its debt elimination. Net income for the quarter was $15.9 million, up 12.9% year over year. Earnings per share were $0.43, while adjusted earnings were $15 million, or $0.40 per share. Christovaris said the quarter ranked among the company’s five best in terms of profit, though it was not a record. StealthGas ended the quarter with $131.2 million in cash, up 32% from $99 million three months earlier. Christovaris said the increase came from the sale of one vessel and $18 million in operating cash flow. He said proceeds from two vessel sales — one delivered in May and one expected in September — are expected to add about $26 million to the company’s cash position. The book value of vessels in the fleet was $475 million as of March 31, down 3.4% due to one vessel being moved to held-for-sale status and regular depreciation. Current assets were $79.7 million and mostly included the book value and related expenses of the MGC vessel pending resolution with insurers. Total liabilities were $26 million, all current, and the company had no debt. Shareholders’ equity increased by $17.2 million during the quarter to $708 million. Christovaris said the elimination of debt has lowered the company’s cash flow breakeven and improved its flexibility. He added that the company is in a stronger negotiating position with banking partners if it chooses to expand. Chief Executive Harry Vafias said the LPG market is being influenced by the conflict involving Iran and the closure of the Straits of Hormuz. He said about one-third of LPG supply comes from the Middle East, with most of it passing through the straits. StealthGas has one MGC vessel inside the Persian Gulf that had gone to load LPG in Saudi Arabia before the conflict began. Jolliffe said the company has not attempted to exit the vessel because it does not consider passage safe, and the vessel remains on time charter. Vafias said global LPG exports fell an estimated 3% in the first quarter and that second-quarter data could show a steeper drop. He said many vessels previously trading in the Middle East have repositioned to the U.S., with some returning to the Far East via the Cape of Good Hope, increasing ton-miles. U.S. LPG exports have continued to rise, Vafias said, with propane exports surpassing 2.6 million barrels in the last week of May, a 22% year-over-year increase. He said terminal expansions in the U.S. have proven well-timed and that the company expects LPG exports to continue growing. In shipping markets, Vafias said European pressurized vessel rates remained firm in the first quarter due to relatively tight tonnage availability, though the time-charter market may “take somewhat of a breather” over the summer. He said ordering remains slow and the orderbook is healthy, while roughly one-third of the fleet is over 20 years old. For Handysize vessels, Vafias said first-quarter inefficiencies supported a firm freight environment, with rates continuing to firm into the second quarter. He said no new vessels were ordered in that size segment and the orderbook remains close to 10% over the next few years. The MGC market tightened significantly after the Middle East conflict began, Vafias said, with spot rates near all-time highs. However, he noted that the MGC orderbook remains substantial at close to 40%, making long-term demand growth important to absorb fleet expansion. Vafias said StealthGas intends to invest in fleet renewal once the Eco Wizard matter is resolved. He said the company’s cash had increased to $155 million as of the call and described StealthGas as positioned with “a fully flexible balance sheet with zero debt and a growing cash pile.” StealthGas Inc is an international shipping company specializing in the seaborne transportation of liquefied petroleum gases (LPG), including propane, butane and ammonia. The company operates a fleet of modern pressurized LPG carriers with capacities ranging from approximately 2,500 to 9,100 cubic meters, providing safe and efficient carriage of petrochemical gases worldwide. Founded in 2005 and incorporated in the Republic of the Marshall Islands, StealthGas is headquartered in Athens, Greece, with additional commercial and operational offices in major shipping centers across Europe and Asia. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "StealthGas Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for June 2026.