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StealthGas Inc. Informational Roadshow. NASDAQ: “GASS”. March 2006. Disclaimer. Forward-Looking Statements

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stealthgas inc

StealthGas Inc.

Informational Roadshow

NASDAQ: “GASS”

March 2006

disclaimer
Disclaimer

Forward-Looking Statements

This presentation contains forward-looking statements within the meaning of applicable federal securities laws. Such statements are based upon current expectations that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as “may,” “will,” “should,” “estimates,” “predicts,” “potential,” “continue,” “strategy,” “believes,” “anticipates,” “plans,” “expects,” “intends” and similar expressions are intended to identify forward-looking statements. Actual results and the timing of certain events may differ significantly from the results discussed or implied in the forward-looking statements. Among the factors that might cause or contribute to such a discrepancy include, but are not limited to, the risk factors described in the Company’s Registration Statement filed with the Securities and Exchange Commission, particularly those describing variations on charter rates and their effect on the Company’s revenues, net income and profitability as well as the value of the Company’s fleet.

about stealthgas
About StealthGas

A ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry.

Listed on NASDAQ (Symbol: GASS)

The only pure LPG company listed in the United States

Established in December 2004 - Went public in October 2005 raising $ 109 million (8 million shares are $ 14.50 per share) (14 million shares outstanding today)

Current fleet of 24 LPG carriers – intend to expand to 28 vessels within 2006

Grew the fleet from 9 vessels pre-IPO (October 2004) to 24 vessels today

Rank # 1 globally in owned vessels in the segment we focuses on (3,000 to 8,000 cbm – cubic meters)

what is lpg
What is LPG?
  • Liquid petroleum gas also refers to petrochemical gases and ammonia
  • Extracted from natural gas production (60%) and crude oil refining (40%)
  • LPG in gaseous state at atmospheric pressure and normal temperature

Ammonia

Production

Natural Gas

Liquid Petroleum Gases

10% of natural gas is LPG, 3% of crude oil refined into LPG

Refining

Petrochemical

Feedstock

Petrochemical Gases

  • Propane
  • Butane
  • Ethane

Crude Oil

Propylene

Ethylene

Butadiene

VCM

LPG competes with naphtha and gas oil as petrochemical feedstock

High oil prices  higher naphtha and gas oil prices  LPG cheaper alternative

lpg shipping
LPG Shipping
  • Liquefied for seaborne transportation with pressure and/or refrigeration on terminal or on board LPG carriers
  • Minimal land infrastructure - No Large Liquefaction or regasification plants (LNG)
  • Environmentally-friendly, superior safety record to tankers

StealthGas

24 Vessels

  • Certain semi-refrigerated carriers with gas plats are able to cool cargoes to minus 104 degrees Celsius and are referred to as ethylene carriers.
lpg fleet
LPG Fleet

We operate in the semi-refrigerated and fully-pressurized segments

All orderbook for fleet replacement

  • Fully-refrigerated vessels do not compete in short-haul routes and cargo sizes

74% of the orderbook in very large gas carriers

(1) Small size 20+ year old fleet and 25+ year old fleets are assumed to have the same percentages

Source: Drewry’s

why lpg shipping strong fundamentals
Why LPG Shipping? – Strong Fundamentals
  • Limited Fleet Supply
    • Increasingly stringent chartering requirements
      • 35% of fleet > 20 year vessels
    • Low orderbook in the SR, FP segments
      • 14% of current fleet on order through the beginning of 2009
    • Fewer yards construct LPG carriers
    • Specialized sector, higher barriers to entry

LPG CarrierSupply and Demand

Tight

Market

Range

Million Cubic Meters

  • Attractive Trade Prospects
    • LPG supply to grow on increasing NG production
    • Increasing demand from developed and developing countries:
      • LPG: US, China
      • Petchems: EU, China, India
      • Ammonia: Worldwide

Source: Drewry

global production trade and consumption
Global Production, Trade and Consumption

LPG accounts for 71% of seaborne gas trade

Production

LPG Consumption (1)

(525 million tons)

Seaborne Trade

(71 million tons)

Asia (32%), Americas (39%)

Source: CMAI, Drewry

(1) 2003 data

seaborne trading patterns
Seaborne Trading Patterns

75% of 71 million tons global trade are represented by these routes

Middle East exports to Asia account for 31% of world trade

Asia accounts for 50-60% of world imports

Natural Gas &

Petrochemical

Industry growth

14%

Intra Europe

16%

31%

Intra Asia

Middle East

to Asia

7%

Intra Americas

6%

Africa to

Europe

Million tons

slide10

Harry Vafias – Chief Executive Officer

  • Harry Vafias a charismatic young entrepreneur, who started in the tanker business in 1999
  • Long established family history in shipping, The Vafias family in dry bulk shipping since 1973.
  • Between 1999 and 2004, he turned a $ 4 million investment into $ 400 million.
  • In 2004, he spotted the LPG sector as the next growth opportunity.
  • Established StealthGas, took it public and built a fleet of 24 vessels in less than 1 ½ years. StealthGas now ranks # 1 globally in owned vessels in its segment.
fleet development
Fleet Development
  • Grew fleet to 21 vessels by end of FY 2005
    • Fleet to number 24 vessels by early March 2006
  • Ahead of acquisition timetable outlined during IPO Road Show
    • StealthGas ranks #1 in owned vessels in 3,000 to 8,000 CBM segment

28

IPO

24

21

Established Oct. 2004

blue chip customers
“Blue-Chip” Customers

Include oil majors, chemical companies and traders

We focus on repeat business

4th quarter 2005 financial highlights
4th Quarter 2005 Financial Highlights

4th Quarter

  • Q4 Net Income $4.5 million, revenues of $12.8 million, EBITDA of $7.2 million
  • EPS $0.33 – 13.6 million shares outstanding
  • Cash balance of $23.2 million
  • Conservative leverage: net debt to capitalization of 30.6%
  • Fully utilized IPO proceeds to acquire 9 of 10 Identified Vessels plus 3 additional vessels
  • Arranged $50 million 10 year facilitysecured by 6 vessels: since increased to $64 million; secured by 8 vessels

FY 2005 and Post 4th Quarter Highlights

  • FY 2005 Net Income $12.2 million, revenues of $29.3 million, EBITDA of $18.0 million
  • EPS $1.54 – 7.9 million average shares outstanding
  • As of today, 7 out of the 23 vessels delivered to us remain debt free
  • Already acquired 5 of the expected 9 additional vessels, as outlined during IPO Road Show
4 th quarter income statement
4th Quarter Income Statement

Note: The total number of shares outstanding after the IPO is 14,000,000

daily breakeven
Daily Breakeven

Q4 2005 Daily Cashflow and Net Income Breakeven Composition

($ per vessel per day) Q4 2005 fleet calendar days: 1,387

FY 2005 fleet calendar days 3,382

Note: G&A includes Management Fees

4 th quarter balance sheet and adjustments
4th Quarter Balance Sheet and Adjustments

Pro forma and adjusted balance sheet does not include Q1 2006 and Q2 2006 cashflow from operations

Includes 1 Identified Vessel to be delivered in March 2006

acquisition capex
Acquisition Capex

Estimated equity investment of $131.6 million to be funded with $109.0 million net IPO proceeds and $22.6 million cash from operations

Expect to use approximately $26.2 million of Q1 and Q2 2006 cash flow and approximately $46 million of new debt to fund 1 remaining identified vessel plus 2 additional vessels already delivered and 4 additional vessel acquisitions by mid 2006

Note: Estimated numbers, actual figures may vary depending on market conditions

increased lpg supplies higher freight rates
Increased LPG Supplies => Higher Freight Rates

Expanding LPG supplies are driven by increased LNG production and crude oil refining

LNG Production

CAGR = 12%

Trillion Cubic Feet

LPG supplies are expected to increase by 50% from the present 50 million tons to 75 million tons by 2010 and then to 85 million tons by 2015

Increased LPG supplies have already had a beneficial impact on freight rates and we believe this trend will continue

Source: CMAI, Drewrys, VLO, ESAI, Purvin Gertz, PIRA, Poten & Partners.

slide23

LPG Macro Consumption Trends

Increasing Urbanization and Rising Living Standards --> Rapid increase in consumption

Japanese LPG consumption steady post-rapid development

Average 22 years rapid growth, China should realize another decade

China Urbanization: 20 Million/p.a., India: Further growth potential

LPG Consumption - Japan

Household LPG Usage in Asia

Million Tons

Periods of Rapid LPG Demand Growth

Source: Poten & Partners.

strong lpgc freight rates
Strong LPGC freight rates

Average earnings in the spot market excluding waiting time / 1 yr TC rates

Source: Inge Steensland AS Shipbrokers

balanced outlook
Balanced Outlook

3-8000 cbm fleet development vs TC rates/earnings

Source: Inge Steensland AS Shipbrokers

contacts
Company Contact:

Andrew J. Simmons Visit our Website at:

Chief Financial Officer www.stealthgas.com

StealthGas Inc.

011-30-210-6250-001

E-mail: [email protected]

www.stealthgas.com

Investor Relations/Media:

Nicolas Bornozis

Capital Link, Inc.(New York)

Tel. 212-661-7566

E-mail: [email protected]

www.capitallink.com

Contacts

Weekly LPG Market Report updated every Monday

Comprehensive Investor Relations Information

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