StealthGas (GASS) Q1 2026 Earnings Transcript

Chairman of the Board of Directors — Michael Jolliffe Investor Relations — Konstantinos Sistovaris Need a quote from a Motley Fool analyst? Email pr@fool.com 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,

StealthGas (GASS) Q1 2026 Earnings Transcript

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StealthGas (GASS) Q1 2026 Earnings Transcript

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