StealthGas: Update on Share Buy Back Program, New Charters

Gas Monarch LPG carrier

By MarEx 2015-01-08 15:46:52

StealthGas Inc. (GASS), a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced the sale and leaseback of one of its vessels, five new charter arrangements and an update on the share buy back program.

Share Buy Back Program

Pursuant to its share repurchase program previously announced in November 2014 the Company has, up to today, repurchased 1,075,078 shares of its common stock at an average price of $6.28 per share for a total consideration of $6.8 million.

Sale of Vessel

The Company entered into a sale and leaseback agreement for one vessel in its fleet, the 7,517cbm, built 2001, LPG carrier, Gas Cathar in the fourth quarter of 2014. The proceeds from the sale of the vessel are $14.3 million and net proceeds after debt repayment are approximately $7 million. The Company will continue to operate the vessel and entered into an agreement to bareboat charter back the vessel for four years.

Charter Arrangements for Vessels

The Company also announced the conclusion of the following chartering arrangements:

A one year time charter extension for its 3,434 cbm, 1991 built, LPG carrier, Gas Ice, to an established owner-operator.

A one year time charter for its 5,000 cbm, 2011 built, LPG carrier, Gas Myth, to an European oil major, with a charterer's option to extend for a further two years.

A three month time charter extension for its 3,500 cbm, 2014 built, LPG carrier, Eco Corsair, to an established operator.

A three month time charter for its 5,018 cbm, 1997 built, LPG carrier, Gas Monarch, to an international trading house.

A three month time charter for its 3,500 cbm, 2015 built, LPG carrier, Eco Lucidity, to an international trading house starting with the delivery of the vessel in January 2015.

With these charters, the Company has contracted revenues for its fleet of approximately $220 million. Total voyage days of our fleet are 65 pct covered for 2015 and 31 pct for 2016. Seven vessels are currently operating in the spot market.

Chairman Michael Jolliffe commented: “We are excited to start the new year with good news for our company. Firstly we sold another of our middle aged ships at a very firm price and simultaneously we are continuing to buy back our stock at a big discount to NAV! In addition we are very pleased with the new charters announced especially the one for our 24 year old vessel.”

The products and services herein described in this press release are not endorsed by The Maritime Executive.