STEALTHGAS Inc., a ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry, has announced its unaudited financial and operating results for the second quarter and the six months ended June 30, 2026. The Athens-headquartered company operates a fleet of small- and mid-sized LPG carriers, which typically transport cargoes of ammonia and petrochemical gases as well as LPG on regional and inter-regional routes, a segment of the gas shipping market distinct from the very large gas carrier (VLGC) trade.

Operational and Financial Highlights

Profitability remained strong in the second quarter. Net income came in at $17.3 million, corresponding to basic earnings per share (EPS) of $0.46. This was 8.8% higher than the previous quarter's $15.9 million, although below the $20.4 million recorded in the second quarter of 2025.

Revenues for the second quarter were $42.9 million, unchanged from the previous quarter. Time charter equivalent (TCE) rates improved for the company's larger vessels but eased slightly for smaller vessels due to idle time, with the fleet averaging a daily TCE of $15,709.

The company maintained its focus on period coverage, with about 60% of fleet days for the remainder of 2026 secured on period charters. This emphasis on longer-term employment is a common fleet-employment strategy in gas shipping, used to smooth revenue through the sector's freight-rate cycles. Total fleet employment days across all periods are expected to generate roughly $90 million in contracted revenues, excluding the company's single joint-venture (JV) vessel.

All vessels in the fully owned fleet are unencumbered, and the company has paid down all of its bank debt since the third quarter of 2025. A fully debt-free owned fleet is uncommon in shipping, where vessel financing has traditionally relied heavily on bank lending, and it leaves the company with an unencumbered balance sheet at a time when many operators continue to service secured debt.

STEALTHGAS strengthened its liquidity position, holding cash and cash equivalents and short-term investments of $168.3 million as of June 30, 2026. Liquidity has since been enhanced to more than $250 million following the successful resolution of an insurance claim for the loss of one of its vessels.

Second Quarter 2026 Results

Revenues for the three months ended June 30, 2026 amounted to $42.9 million, compared with $47.2 million for the three months ended June 30, 2025, based on an average of 26.4 vessels and 28.3 vessels owned, respectively. The revenue decrease was attributable to the smaller number of vessels, a result of the company's ongoing program of selling older tonnage from its fleet.

Voyage expenses and vessel operating expenses for the quarter were $7.2 million and $12.8 million, respectively, versus $4.4 million and $12.8 million a year earlier. The $2.8 million rise in voyage expenses was mainly driven by higher bunker costs, reflecting more spot-market days for the fleet and higher bunker prices. Vessel operating expenses remained at the same level despite the reduction in the average number of vessels.

Drydocking costs were $0.5 million for the quarter, compared with $0.6 million in the prior-year period. General and administrative expenses were $1.9 million versus $2.0 million, a change mainly attributed to lower stock-based compensation expense.

Depreciation was $5.9 million, down $0.7 million from $6.6 million a year earlier, mainly due to the lower average number of vessels owned.

The company recognized a gain on sale of vessels of $1.3 million for the quarter, compared with a loss of $0.1 million in the same period last year. The gain related to the sale of one vessel during the quarter, whereas a loss had been recognized on the sale of one vessel in the corresponding 2025 period.

Interest and finance costs fell to $0.006 million from $0.6 million, a decrease primarily due to full debt prepayments. Interest income rose to $1.2 million from $0.7 million, mainly due to larger amounts of time deposits.

Equity earnings in joint ventures were a gain of $1.3 million, up $0.6 million from $0.7 million a year earlier, primarily due to higher charter rates for the JV vessel.

As a result, the company reported net income of $17.3 million for the quarter, compared with $20.4 million for the second quarter of 2025. The weighted average number of basic shares outstanding was 36.7 million, versus 35.8 million a year earlier.

Basic EPS was $0.46, compared with $0.55 in the same period of 2025. Adjusted net income was $17.2 million, corresponding to adjusted EPS of $0.46, versus adjusted net income of $21.7 million and adjusted EPS of $0.59 a year earlier.

EBITDA for the quarter amounted to $22.1 million. Reconciliations of adjusted net income, EBITDA, and adjusted EBITDA to net income are provided in the company's release.

An average of 26.4 vessels were owned during the quarter, compared with 28.3 vessels in the same period of 2025.

Six Months 2026 Results

Revenues for the six months ended June 30, 2026 amounted to $85.8 million, compared with $89.3 million for the first half of 2025, based on an average of 27.1 vessels and 28.1 vessels owned, respectively. The decrease was attributable to the reduced number of vessels.

Voyage expenses and vessel operating expenses for the period were $13.4 million and $26.6 million, respectively, compared with $9.5 million and $26.2 million a year earlier. The $3.9 million increase in voyage expenses was mainly due to higher war risk insurance expenses, while vessel operating expenses largely remained at the same levels. Rising war risk insurance costs have been a sector-wide cost pressure for shipowners as vessel attacks in shipping lanes have increased.

Drydocking costs were $3.0 million, compared with $1.0 million for the first half of 2025. The 2026 expenses mainly relate to the completion of three vessels' drydockings, whereas the prior-year period included the completion of one vessel's drydocking and the ongoing drydocking of another.

General and administrative expenses were $3.9 million, versus $4.2 million a year earlier, mainly reflecting lower stock-based compensation expense. Depreciation was $11.6 million, a decrease of $1.7 million from $13.3 million, mainly related to the smaller average fleet.

Impairment losses were $0.3 million, compared with $0.5 million in the first half of 2025. In connection with 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.

The gain on sale of vessels was $3.9 million for the six-month period, compared with a loss of $0.1 million a year earlier, attributable to the sale of two vessels during the first half of 2026 versus a loss on the sale of one vessel in the corresponding 2025 period.

Interest and finance costs fell to $0.01 million from $2.0 million, a $1.99 million decrease primarily due to full debt prepayments. Interest income rose to $2.1 million from $1.5 million, an increase of $0.6 million mainly attributed to larger time deposits.

Equity earnings in joint ventures were a gain of $2.4 million, down $0.5 million from $2.9 million a year earlier, primarily due to a decrease in the number of vessels owned by the joint ventures.

For the six months ended June 30, 2026, the company reported net income of $33.2 million, compared with $34.5 million for the same period of 2025. The weighted average number of basic shares outstanding was 36.6 million, versus 35.8 million a year earlier.

Basic EPS was $0.89, compared with $0.93 in the first half of 2025. Adjusted net income was $32.2 million, corresponding to adjusted EPS of $0.86, versus adjusted net income of $37.9 million and adjusted EPS of $1.02 a year earlier.

EBITDA for the six-month period amounted to $42.8 million.

An average of 27.1 vessels were owned during the period, compared with 28.1 vessels in the first half of 2025.

Note: EBITDA, adjusted EBITDA, adjusted net income, and adjusted EPS are non-GAAP measures. Reconciliations of these measures to the most directly comparable GAAP financial measures are set forth in the company's release.

Fleet Update Since Previous Announcement

The company announced the conclusion of the following chartering arrangements, each of three or more months' duration:

• A two-year time charter for the 2007-built LPG carrier Gas Flawless, until July 2028.
• A one-year time charter for the 2016-built LPG carrier Eco Dominator, until September 2027.
• A six-month time charter extension for the 2012-built LPG carrier Gas Husky, until March 2027.
• A six-month time charter extension for the JV-owned 2023-built LPG carrier Eco Sorcerer, until February 2027.

As of September 2026, the company has total contracted revenues of approximately $90 million, excluding the JV vessel. For the remainder of the year, approximately 60% of fleet days are secured under period contracts, representing contracted revenues of approximately $30 million, excluding the JV vessel.

CEO Commentary

Chief Executive Officer 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."

Source: STEALTHGAS Inc. (via Hellenic Shipping News)