SOURCE: StealthGas Inc.

November 13, 2007 09:28 ET

STEALTHGAS INC. Reports Third Quarter and Nine Months 2007 Results and Announces Quarterly Cash Dividend of $0.1875 per Common Share

ATHENS, GREECE--(Marketwire - November 13, 2007) - 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 quarter and nine months ended September 30, 2007.

Third Quarter 2007 Results:

For the quarter ended September 30, 2007, net revenues amounted to $23.2 million and net income was $4.0 million an increase of $4.6 million or 24.4% and an increase of $1.9 million or 91.0% respectively from net revenues of $18.7 million and net income of $2.1 million for the quarter ended September 30, 2006.

Basic and diluted earnings per share, calculated on 20,574,635 basic weighted average number of shares and 20,633,070 diluted weighted average number of shares were $0.19 for the quarter ended September 30, 2007 as compared to earnings per share of $0.15, basic and diluted, calculated on 14,239,130 weighted average number of shares for the third quarter of 2006.

Adjusted EBITDA for the third quarter of 2007 was $9.7 million, an increase of $2.3 million or 30.5%, from $7.4 million for the same period of 2006. A reconciliation of Adjusted EBITDA to Net Income and to Net Cash provided by operating activities is set forth below.

For the third quarter of 2007, the Company reported a non-cash expense of $2.7 million, which includes an unrealized, non-cash loss of approximately $1.7 million on three previously disclosed interest rate swap arrangements and a provision of approximately $1.0 million for restricted-stock portion of deferred stock-based compensation for the Company's employees and directors. This compares to an approximately $1.5 million unrealized non-cash loss on three previously disclosed interest rate swap arrangements for the third quarter of 2006. Excluding these non-cash items, net income would have been $6.7 million, or $0.33 per share, basic and diluted for third quarter 2007 as compared to $3.6 million, or $0.25 per share, basic and diluted for the third quarter of 2006.

An average of 35.1 vessels were owned by the Company in the third quarter of 2007, earning an average time-charter-equivalent rate of approximately $6,747 per day as compared to 28.0 vessels and earning an average of $6,675 per day for the same period of 2006.

Nine Months 2007 Results:

For the nine months ended September 30, 2007, net revenues amounted to $63.9 million and net income was $16.3 million an increase of $11.1 million or 21.0% and an increase of $2.46 million or 19.0% respectively from net revenues of $52.8 million and net income of $13.7 million for the nine months ended September 30, 2006.

Basic and diluted earnings per share, calculated on 16,480,829 basic weighted average number of shares and 16,500,522 diluted weighted average number of shares were $0.99 for the first nine months ended September 30, 2007 as compared to earnings per share of $0.97, basic and diluted, calculated on 14,080,586 weighted average number of shares outstanding for the first nine months of 2006.

Adjusted EBITDA for the period ended September 30, 2007 was $33.6 million, an increase of $7.1 million or 27.0%, from $26.5 million for the same period of 2006. A reconciliation of Adjusted EBITDA to Net Income and to Net Cash provided by operating activities is set forth below.

For the first nine months of 2007, the Company reported a non-cash expense of $2.4 million, which includes a unrealized, non-cash loss of $1.4 million on three previously disclosed interest rate swap arrangements and a provision of approximately $1.0 million for restricted-stock portion of deferred stock-based compensation for the Company's employees and directors as compared to the first nine months of 2006, where the Company reported a non-cash loss of $0.2 million on three previously disclosed interest rate swap arrangements. Excluding these non-cash items, net income would have been $18.8 million, or $1.14 per share, basic and diluted for nine months ended September 30, 2007 as compared to $13.8 million, or $0.98 per share, basic and diluted for the nine months ended September 30, 2006.

An average of 31.3 vessels were owned by the Company in the first nine months of 2007, earning an average time-charter-equivalent rate of approximately $7,095 per day as compared to 25.2 vessels earning an average of $7,117 per day for the same period of 2006.

Management Commentary:

CEO Harry Vafias commented: "During the third quarter of 2007, we were able to achieve a strong quarter in our financial and operational performance as a result of the charter rates secured by our fleet under our period charters. We also took delivery of two vessels that we had previously announced to acquire further expanding our fleet to 36 vessels during the third quarter. Additionally, we are pleased to have announced during the third quarter the renewals of charters for eleven of our vessels at higher rates, which emphasize our strong relationships with major international operators in the LPG industry. In this context, we have already secured 86% of our fleet under period contracts for 2008 and 45% for 2009. We believe that the outlook for the handy size LPG sector will remain positive over the next two to three years, thereby providing opportunities for further fixtures at higher rates and in turn increasing our voyage revenues and thus our profitability.

"Finally, we have declared our eighth consecutive dividend of 18.75 cents per share, and since we went public in October 2005 we have declared aggregate dividends of $1.50 per share. We believe that our emphasis on fleet growth and securing our vessels on profitable time and bare boat charters will further enable us to reward our shareholders in the long term."

CFO Andrew Simmons commented: "We are pleased to announce that we have managed to strengthen the company's financial structure with our cash resources having increased from $11.1 million at the end of third quarter of 2006 to $67.5 million at the end of third quarter of 2007, due in part to the successful follow on equity offering we undertook in July of 2007. In addition, at the end of third quarter 2007, our net debt to capitalization stood at 17.8% down from 49.2% at the end of second quarter 2007. Hence, we believe that we have significant capacity to continue with our fleet expansion strategy as and when opportunities arise in the future, whilst at the same time continuing our policy of a well structured financial position."

Quarterly Dividend:

At today's meeting, the Company's Board of Directors declared a quarterly cash dividend of $0.1875 per common share, payable on November 30, 2007 to shareholders of record on November 23, 2007.

This is the eighth consecutive quarterly dividend since the company went public in October 2005. Since then, STEALTHGAS has declared quarterly dividends aggregating $1.50 per common share.

Completion of Follow-on Offering:

In July 2007, the Company concluded a follow-on offering of 7,660,105 shares of common stock, including 460,105 over-allotment shares, resulting in net proceeds, after deducting the underwriting discounts and commissions and the estimated offering expenses, of approximately $129.6 million. The shares were sold to the public at a price of $18.00 per share. The final number of shares offered represented an increase of 1,660,105,000 shares from the originally proposed offering size.

Citigroup Global Markets Inc. and Cantor Fitzgerald & Co. acted as the joint bookrunning managers in the offering. Johnson Rice & Company L.L.C., Morgan Keegan & Company, Inc., DVB Capital Markets LLC and Scotia Capital (USA) Inc. acted as co-managers.

The Company has used a portion and intends to use the remaining net proceeds of the offering to pay the remaining balance of the purchase price for five LPG carriers which it had previously agreed to acquire (all of which have now been delivered to the Company), repay outstanding indebtedness incurred to acquire certain vessels in its current fleet, and for general corporate purposes.

Fleet Developments:

As previously announced, the Company has agreements to acquire three additional LPG carriers, the M/V "Gas Sophie," a 1995 built 3,500 cbm Fully Pressurized ("F.P.") LPG carrier, the M/V Gas Haralambos, a 2007 built 7,000 cbm Fully Pressurized ("F.P.") LPG carrier to be delivered in the fourth quarter of 2007 and the the M/V "Gas Premiership," a 2001 built, 7,200 cbm Fully Pressurized ("F.P.") LPG carrier with expected delivery in February 2008. Once these acquisitions are completed, the Company's fleet will be composed of 39 LPG carriers with a total capacity of 171,629 cubic meters (cbm).

On September 18, 2007, the Company also announced new charter arrangements at higher rates as follows new time charter agreements M/V "Gas Czar" and M/V "Gas Nemesis." In addition, the Company has entered into a new bareboat charter for M/V "Gas Ice" and extended time charters for M/V "Gas Renovatio," M/V "Gas Zael," M/V "Gas Sincerity," M/V "Gas Shanghai," M/V "Gas Kalogeros," M/V "Gas Legacy," M/V "Gas Icon" and the M/V "Gas Spirit."

Fleet Profile and Fleet Deployment:

             Vessel                                              Charter
              Size   Vessel    Year    Delivered To Employment Expiration
Vessel       (cbm)    Type     Built       GASS       Status       (1)
             ------- ------- --------- ------------ ---------- ------------
CURRENT
 FLEET
             --------------------------------------------------------------

                                                         Time
Gas Cathar     7,517    F.P.      2001       Oct-05    Charter       Aug-08
             ------- ------- --------- ------------ ---------- ------------
Gas                                                      Time
 Haralambos    7,000    F.P.      2007       Oct-07    Charter       Oct-09
             ------- ------- --------- ------------ ---------- ------------
Gas Marathon   6,572    F.P.      1995       Nov-05   Bareboat       Oct-09
             ------- ------- --------- ------------ ---------- ------------
                                                         Time
Gas Chios      6,562    F.P.      1991       Oct-05    Charter       Mar-08
             ------- ------- --------- ------------ ---------- ------------
                                                         Time
Gas Amazon     6,526    F.P.      1992       May-05    Charter      Nov -08
             ------- ------- --------- ------------ ---------- ------------
                                                         Time
Gas Flawless   6,300    F.P.      2007       Feb-07    Charter       Feb-09
             ------- ------- --------- ------------ ---------- ------------
Gas Monarch    5,018    F.P.      1997       Dec-05   Bareboat       Jun-10
             ------- ------- --------- ------------ ---------- ------------
Gas Nemesis                                              Time
 (2)           5,016    F.P.      1995       Jun-06    Charter       May-09
             ------- ------- --------- ------------ ---------- ------------
Lyne (3)       5,014    F.P.      1996       May-06   Bareboat       May-09
             ------- ------- --------- ------------ ---------- ------------
                                                         Time
Gas Emperor    5,013    F.P.      1995       Feb-05    Charter       Jun-08
             ------- ------- --------- ------------ ---------- ------------
Birgit Kosan   5,012    F.P.      1995       Apr-05   Bareboat       Oct-11
             ------- ------- --------- ------------ ---------- ------------
Catterick                                                Time
 (4)           5,001     F.P      1995       Nov-05    Charter       Jan-09
             ------- ------- --------- ------------ ---------- ------------
Sir Ivor (5)   5,000    F.P.      2003       May-06   Bareboat       May-09
             ------- ------- --------- ------------ ---------- ------------
                                                         Time
Gas Icon (6)   5,000    F.P.      1994       Jun-07    Charter       Jul-10
             ------- ------- --------- ------------ ---------- ------------
Gas
 Kalogeros                                               Time
 (7)           5,000    F.P.      2007       Jul-07    Charter       Apr-10
             ------- ------- --------- ------------ ---------- ------------
Gas
 Sincerity                                               Time
 (8)           4,123    F.P.      2000       Nov-05    Charter       Jul-09
             ------- ------- --------- ------------ ---------- ------------
Gas Spirit                                               Time
 (9)           4,112    F.P.      2001       Dec-05    Charter       Jun-10
             ------- ------- --------- ------------ ---------- ------------
Gas Zael                                                 Time
 (10)          4,111    F.P.      2001       Dec-05    Charter       Mar-09
             ------- ------- --------- ------------ ---------- ------------
Gas                                                      Time
 Courchevel    4,109    S.R.      1991       Nov-04    Charter       Feb-08
             ------- ------- --------- ------------ ---------- ------------
Gas Prophet
 (11)          3,556    F.P.      1996       Oct-04   Bareboat       Sep-09
             ------- ------- --------- ------------ ---------- ------------
Gas Shanghai                                             Time
 (12)          3,526    F.P.      1999       Dec-04    Charter       Sep-09
             ------- ------- --------- ------------ ---------- ------------
Sea Bird II    3,518    F.P.      1996       May-07   Bareboat       May-09
             ------- ------- --------- ------------ ---------- ------------
Gas                                                      Time
 Evoluzione    3,517    F.P.      1996       Jul-07    Charter       Aug-08
             ------- ------- --------- ------------ ---------- ------------
Gas Czar                                                 Time
 (13)          3,510    F.P.      1995       Feb-06    Charter       Dec-08
             ------- ------- --------- ------------ ---------- ------------
                                                         Time
Gas Sophie     3,500    F.P.      1995       Oct-07    Charter       Oct-08
             ------- ------- --------- ------------ ---------- ------------
Gas Legacy                                               Time
 (14)          3,500    F.P.      1998       Oct-05    Charter       Apr-10
             ------- ------- --------- ------------ ---------- ------------
Gas Fortune                                              Time
 (15)          3,500    F.P.      1995       Feb-06    Charter       Dec-08
             ------- ------- --------- ------------ ---------- ------------
Gas Eternity
 (16)          3,500    F.P.      1998       Mar-06   Bareboat       Apr-10
             ------- ------- --------- ------------ ---------- ------------
Gas Sikousis                                             Time
 (17)          3,500    F.P.      2006       Aug-07    Charter       May-09
             ------- ------- --------- ------------ ---------- ------------
Gas Arctic     3,434    S.R.      1992       Apr-05   Bareboat       Apr-09
             ------- ------- --------- ------------ ---------- ------------
Gas Ice (18)   3,434    S.R.      1991       Apr-05   Bareboat       Apr-11
             ------- ------- --------- ------------ ---------- ------------
Gas
 Renovatio                                               Time
 (19)          3,313    F.P.      1997       May-07    Charter       Jan-09
             ------- ------- --------- ------------ ---------- ------------
Chiltern       3,312    F.P.      1997       Jun-07   Bareboat       Mar-08
             ------- ------- --------- ------------ ---------- ------------
Batangas       3,244    F.P.      1995       Jun-06   Bareboat       Jul-08
             ------- ------- --------- ------------ ---------- ------------
                                                         Time
Gas Crystal    3,211    S.R.      1990       Nov-05    Charter       Jul-08
             ------- ------- --------- ------------ ---------- ------------
Gas Oracle     3,014    F.P.      1990       Dec-05       Spot            -
             ------- ------- --------- ------------ ---------- ------------
Gas Prodigy                                              Time
 (20)          3,014    F.P.      1995       Oct-05    Charter       Dec-08
             ------- ------- --------- ------------ ---------- ------------
                                                         Time
Gas Tiny       1,320    S.R.      1991       Oct-04    Charter       Jan-09
             ------- ------- --------- ------------ ---------- ------------
FLEET TOTAL
             164,429
38 VESSELS       Cbm
             ------- ------- --------- ------------ ---------- ------------
Additional Vessels (with expected delivery date)
             --------------------------------------------------------------
Gas
 Premiership                                             Time
 (21)          7,200    F.P.      2001       Feb-08    Charter       Feb-12
             ------- ------- --------- ------------ ---------- ------------
FLEET TOTAL
             171,629
39 VESSELS       cbm
             ------- ------- --------- ------------ ---------- ------------

    --  F.P.: Fully-Pressurized
    --  S.R.: Semi-Refrigerated

(1)  Earliest date charters could expire. Most charters include options
     to shorten or extend their term.
(2)  Gas Nemesis is currently employed under a time charter until May 2008.
     Thereafter, she will be employed under a new time charter until May
     2009.
(3)  Lyne is employed under a bareboat charter until May 2009. Thereafter,
     at the charterer's option, the bareboat charter can be extended for an
     additional year.
(4)  Catterick is currently employed under a time charter with an initial
     term expiring in January 2008, which has been extended to January
     2009.
(5)  Sir Ivor is employed under a bareboat charter until May 2009.
     Thereafter, at the charter's option, the bareboat charter can be
     extended for an additional year.
(6)  Gas Icon is currently employed under a time charter with an initial
     term expiring in July 2008, which has been extended for two years
     until July 2010.
(7)  Gas Kalogeros is currently employed under a time charter until May
     2008, which has been extended to April 2010.
(8)  Gas Sincerity is currently employed under a time charter until July
     2008, which has been extended to July 2009.
(9)  Gas Spirit is currently employed under a time charter until June 2008,
     which has been extended to June 2010.
(10) Gas Zael is currently employed under a time charter until March 2008,
     which has been extended to March 2009.
(11) Gas Prophet has for the three year duration of bareboat charter been
     renamed the M.T. Ming Long.
(12) Gas Shanghai is currently employed under a time charter until
     September 2008, which has been extended until September 2009.
(13) Gas Czar is currently employed under a time charter until December
     2007. Thereafter, she will be employed under a new time charter until
     December 2008.
(14) Gas Legacy is currently employed under a time charter until April
     2008, which has been extended for two years until April 2010.
(15) Gas Fortune is currently employed under a time charter expiring in

     December 2007, which has been extended until December 2008.
(16) Gas Eternity has for the duration of bareboat charter been renamed the
     M.T. Yu Tian 9.
(17) Gas Sikousis is currently employed under a time charter until May
     2009. Thereafter, at the charterer' option, the time charter can be
     extended for two one-year periods, the first one to be negotiated in
     May 2009.
(18) Gas Ice is currently employed under a bareboat charter until April
     2008. Thereafter, she will be employed under a new three year bareboat
     charter, until April 2011.
(19) Gas Renovatio is currently employed under a time charter until January
     2008, which has been extended for twelve months until January 2009.
(20) Gas Prodigy is currently employed under a time charter expiring in
     December 2007, which has been extended until December 2008.
(21) Gas Premiership will commence a four year charter upon expected
     delivery in February 2008 expiring in February 2012.

Fleet Data:

The following key indicators highlight the Company's operating performance during the quarters ended September 30, 2007 and September 30, 2006.

FLEET DATA                                      Q3 2007       Q3 2006
                                              ------------  ------------
Average number of vessels (1)                         35.1          28.0
                                              ------------  ------------
Period end number of vessels in fleet                 36.0          28.0
                                              ------------  ------------
Total calendar days for fleet (2)                    3,231         2,576
                                              ------------  ------------
Total voyage days for fleet (3)                      3,213         2,514
                                              ------------  ------------
Fleet utilization (4)                                 99.4%         97.6%
                                              ------------  ------------
Total time charter days for fleet (5)                2,952         2,142
                                              ------------  ------------
Total spot market days for fleet (6)                   261           372


AVERAGE DAILY RESULTS                           Q3 2007       Q3 2006
                                              ------------- -------------
Time Charter Equivalent - TCE (7)             $       6,747 $       6,675
                                              ------------- -------------
Vessel operating expenses (8)                         2,046         1,927
                                              ------------- -------------
Management fees                                         341           328
                                              ------------- -------------
General and administrative expenses                     588           149
                                              ------------- -------------
Total operating expenses (9)                          2,634         2,076
                                              ------------- -------------

The following key indicators highlight the Company's operating performance during the nine months ended September 30, 2007 and September 30, 2006.

FLEET DATA                                      9M 2007       9M 2006
                                              ------------  ------------
Average number of vessels (1)                         31.3          25.3
                                              ------------  ------------
Period end number of vessels in fleet                 36.0          28.0
                                              ------------  ------------
Total calendar days for fleet (2)                    8,533         6,875
                                              ------------  ------------
Total voyage days for fleet (3)                      8,467         6,782
                                              ------------  ------------
Fleet utilization (4)                                 99.2%         98.7%
                                              ------------  ------------
Total time charter days for fleet (5)                7,932         5,928
                                              ------------  ------------
Total spot market days for fleet (6)                   535           854
                                              ------------  ------------


AVERAGE DAILY RESULTS                           9M 2007       9M 2006
                                              ------------- -------------
Time Charter Equivalent - TCE (7)             $       7,095 $       7,117
                                              ------------- -------------
Vessel operating expenses (8)                         2,045         2,041
                                              ------------- -------------
Management fees                                         345           326
                                              ------------- -------------
General and administrative expenses                     421           290
                                              ------------- -------------
Total operating expenses (9)                          2,466         2,331
                                              ------------- -------------


1)  Average number of vessels is the number of 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  are  the total days  the  vessels  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 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  time  charter days for fleet are the number of voyage  days  the
vessels in our fleet operated on time charters for the relevant period.
6)  Total spot market charter days for fleet are the number of voyage  days
the  vessels in our fleet operated on spot market charters for the relevant
period.
7)  Time  charter  equivalent, or TCE, is a measure of  the  average  daily
revenue  performance  of  a vessel on a per voyage  basis.  Our  method  of
calculating TCE is consistent with industry standards and is determined  by
dividing  voyage revenues (net of voyage expenses) by voyage days  for  the
relevant time period. Voyage expenses primarily consist of port, canal  and
fuel costs that are unique to a particular voyage, which would otherwise be
paid  by  the  charterer  under  a  time  charter  contract,  as  well   as
commissions.  TCE is a standard shipping industry performance measure  used
primarily  to  compare  period-to-period changes in  a  shipping  company's
performance  despite  changes  in the mix  of  charter  types  (i.e.,  spot
charters, time charters and bareboat charters) under which the vessels  may
be employed between the periods.
8)  Vessel  operating expenses, which include crew costs, provisions,  deck
and  engine stores, lubricating oil, insurance, maintenance and repairs  is
calculated by dividing vessel operating expenses by fleet calendar days for
the relevant time period.
9) Total operating expenses, or TOE, is a measurement of our total expenses
associated  with operating our vessels. TOE is the sum of vessel  operating
expenses  and general and administrative expenses. Daily TOE is  calculated
by dividing TOE by fleet calendar days for the relevant time period.

Adjusted EBITDA Reconciliation:

Adjusted EBITDA represents net earnings before interest, taxes, depreciation, amortization and amortization of fair value of acquired time charters. Adjusted EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by the accounting standards generally accepted in the United States of America, and our calculation of Adjusted EBITDA may not be comparable to that reported by other companies in the shipping or other industries.

Adjusted EBITDA is included herein because it is a basis upon which we assess our financial performance and liquidity position and because we believe that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness.

Adjusted EBITDA reconciliation for the quarters ended September 30, 2007
and September 30, 2006:

(figures in US $)                                 Q3 2007       Q3 2006
                                                ------------  ------------
Net Cash Provided By Operating Activities       $  3,587,979  $ 10,656,686
                                                ------------  ------------
Net increase in current assets, excluding cash       806,125       191,558
                                                ------------  ------------
Net decrease / (increase) in current
 liabilities, excluding short-term portion
 of long term debt.                                6,321,081    (4,127,968)
                                                ------------  ------------
Interest income                                     (831,801)     (157,130)
                                                ------------  ------------
Interest and finance costs, net                    2,538,701     2,374,728
                                                ------------  ------------
Amortization of finance fees                         (19,776)      (17,964)

                                                ------------  ------------
Share based compensation                            (990,380)           --
                                                ------------  ------------
Change in fair value of derivatives               (1,751,915)   (1,482,343)
                                                ------------  ------------
Adjusted EBITDA                                 $  9,660,014  $  7,437,567
                                                ------------  ------------


(figures in US $)                                   Q3 2007      Q3 2006
                                                  -----------  -----------
Net Income                                        $ 4,000,186  $ 2,094,180
                                                  -----------  -----------
Plus interest and finance costs                     2,538,701    2,374,728
                                                  -----------  -----------
Less Interest income                                 (831,801)    (157,130)
                                                  -----------  -----------
Plus Depreciation                                   4,468,629    3,515,518
                                                  -----------  -----------
Plus Amortization of fair value of acquired time
 charters                                            (515,701)    (389,729)
                                                  -----------  -----------
Adjusted EBITDA                                   $ 9,660,014  $ 7,437,567
                                                  -----------  -----------


Adjusted EBITDA reconciliation for the nine months ended September 30, 2007
and September 30, 2006:

(figures in US $)                                 9M 2007       9M 2006
                                                ------------  ------------
Net Cash Provided By Operating Activities       $ 28,258,498  $ 27,246,447
                                                ------------  ------------
Net increase in current assets, excluding cash       602,191     1,381,546
                                                ------------  ------------
Net decrease / (increase) in current
 liabilities, excluding short-term portion of
 long term debt.                                   1,076,988    (7,017,429)
                                                ------------  ------------
Interest income                                   (1,203,329)     (508,766)
                                                ------------  ------------
Interest and finance costs                         7,408,536     5,466,118
                                                ------------  ------------
Amortization of finance fees                         (58,033)      (37,251)
                                                ------------  ------------
Net income of vessel acquired from the Vafias
 Group                                                    --        99,870
                                                ------------  ------------
Share based compensation                            (990,380)           --
                                                ------------  ------------
Change in fair value of derivatives               (1,450,339)     (163,887)
                                                ------------  ------------
Adjusted EBITDA                                 $ 33,644,132  $ 26,466,648
                                                ------------  ------------


(figures in US $)                                 9M 2007       9M 2006
                                                ------------  ------------
Net Income                                      $ 16,311,665  $ 13,674,533
                                                ------------  ------------
Plus interest and finance costs                    7,408,536     5,466,118
                                                ------------  ------------
Less Interest income                              (1,203,329)     (508,766)
                                                ------------  ------------
Plus depreciation                                 11,932,622     9,450,529
                                                ------------  ------------
Plus Amortization of fair value of acquired
 time charters                                      (805,362)   (1,615,766)
                                                ------------  ------------
Adjusted EBITDA                                 $ 33,644,132  $ 26,466,648
                                                ------------  ------------

Conference Call and Webcast:

As previously announced, on November 14, 2007 at 10:00 A.M. EST, the company's management will host a conference call to discuss the results and the company's operations and outlook.

Conference Call details:

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1866 819 7111(US Toll Free Dial In), 0800 953 0329 (UK Toll Free Dial In) or +44 (0) 1452 542 301 (Standard International Dial In). Please quote "STEALTHGAS."

In case of any problems with the above numbers, please dial 1866 223 0615 (US Toll Free Dial In), 0800 694 1503 (UK Toll Free Dial In) or +44 (0) 1452 586 513 (Standard International Dial In). Please quote "STEALTHGAS."

A telephonic replay of the conference call will be available until November 21, 2007 by dialing 1866 247 4222 (US Toll Free Dial In), 0800 953 1533 (UK Toll Free Dial In) or +44 1452 550 000 (Standard International Dial In). Access Code: 2201616#

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.


                              STEALTHGAS INC.
               Condensed Consolidated Statements of Income
      For the quarters ended September 30, 2006 and September 30, 2007
                    (Expressed in United States Dollars)


                                                  For the Quarter Ended
                                                  September     September
                                                  30, 2006      30, 2007
                                                (Unaudited)   (Unaudited)
                                                ------------  ------------
Revenues
  Voyage revenues                               $ 18,682,207  $ 23,241,691
                                                ------------  ------------

Expenses
  Voyage expenses                                  1,898,450     1,564,081
  Vessels' operating expenses                      4,963,545     6,610,468
  Dry-docking costs                                1,265,014       116,793
  Management fees                                    844,928     1,102,860
  General and administrative expenses                383,049     1,900,331
  Depreciation                                     3,515,518     4,468,629
                                                ------------  ------------
Total expenses                                    12,870,504    15,763,162
                                                ------------  ------------

Income from operations                          $  5,811,703  $  7,478,529
                                                ------------  ------------

Other income and (expense)
  Interest and finance costs                      (2,374,728)   (2,538,701)
  Change in fair value of derivatives             (1,482,343)   (1,751,915)
  Interest income                                    157,130       831,801
  Foreign exchange loss                              (17,582)      (19,528)
                                                ------------  ------------
Other expenses, net                               (3,717,523)   (3,478,343)
                                                ------------  ------------

Net income                                      $  2,094,180  $  4,000,186
                                                ------------  ------------

Basic Earnings per Share                        $       0.15  $       0.19
                                                ============  ============

Basic Weighted Average Number of Shares,
 Outstanding                                      14,239,130    20,574,635
                                                ============  ============

Diluted Earnings per Share                              0.15          0.19
                                                ============  ============

Diluted Weighted Average Number of Shares,
 Outstanding                                      14,239,130    20,633,070
                                                ============  ============



                                 STEALTHGAS INC.
                  Condensed Consolidated Statements of Income
      For the nine months ended September 30, 2006 and September 30, 2007
                     (Expressed in United States Dollars)


                                                For the Nine Months Ended
                                                  September     September
                                                  30, 2006      30,  2007
                                                (Unaudited)   (Unaudited)
                                                ------------  ------------
Revenues
  Voyage revenues                               $ 52,835,170  $ 63,865,847
                                                ------------  ------------

Expenses
  Voyage expenses                                  4,564,964     3,797,673
  Vessels' operating expenses                     14,030,209    17,449,230
  Dry-docking costs                                1,697,940       116,793
  Management fees                                  2,243,713     2,943,710

  General and administrative expenses              1,993,652     3,596,361
  Depreciation                                     9,450,529    11,932,622
                                                ------------  ------------
Total expenses                                    33,981,007    39,836,389
                                                ------------  ------------

Income from operations                          $ 18,854,163  $ 24,029,458
                                                ------------  ------------

Other income and (expense)
  Interest and finance costs                      (5,466,118)   (7,408,536)
  Change in fair value of derivatives               (163,887)   (1,450,339)
  Interest income                                    508,766     1,203,329
  Foreign exchange loss                              (58,391)      (62,247)
                                                ------------  ------------
Other expenses, net                               (5,179,630)   (7,717,793)
                                                ------------  ------------

Net income                                      $ 13,674,533  $ 16,311,665
                                                ------------  ------------

Basic Earnings per Share                        $       0.97  $       0.99
                                                ============  ============

Basic Weighted Average Number of Shares,
 Outstanding                                      14,080,586    16,480,829
                                                ============  ============

Diluted Earnings per Share                              0.97          0.99
                                                ============  ============

Diluted Weighted Average Number of Shares,
 Outstanding                                      14,080,586    16,500,522
                                                ============  ============



                                  STEALTHGAS INC.
                       Condensed Consolidated Balance Sheets
                   As of December 31, 2006 and September 30, 2007
                         (Expressed in United States Dollars)


                                                December 31,  September 30,
                                                    2006          2007
                                                (Unaudited)   (Unaudited)
                                                ------------- -------------
Assets
Current assets
  Cash and cash equivalents                     $  11,146,871 $  67,476,979
  Trade receivables                                 1,096,645     1,550,385
  Claim receivable                                    289,922        32,479
  Inventories                                         746,874       956,811
  Advances and prepayments                            270,370       196,434
  Fair value of above market acquired time
   charter                                             23,718            --
  Restricted cash                                   4,317,338     4,601,021
                                                ------------- -------------
Total current assets                            $  17,891,738 $  74,814,109
                                                ------------- -------------

 Non current assets
  Advances for vessels acquisitions                 3,483,750     4,055,000
  Vessels, net                                    297,950,257   392,904,608
  Restricted cash                                          --       200,000
  Deferred finance charges, net of accumulated
   amortization of $87,424 and $145,457               279,576       367,338
  Fair value of derivatives                           368,119        61,522
                                                ------------- -------------
Total non current assets                        $ 302,081,702 $ 397,588,468
                                                ------------- -------------
Total assets                                    $ 319,973,440 $ 472,402,577
                                                ------------- -------------

 Liabilities and Stockholders' Equity
Current liabilities
  Payable to related party                          2,198,456     1,121,694
  Trade accounts payable                            2,049,456     3,405,704
  Other accrued liabilities                         4,681,488     3,453,788
  Customer deposits                                   660,000       643,500
  Deferred income                                   2,889,998     2,761,224
  Current portion of long-term debt                16,149,600    15,505,064
                                                ------------- -------------
Total current liabilities                       $  28,628,998 $  26,890,974

 Non current liabilities
  Fair value of derivatives                           404,021     1,522,687
  Customer deposits                                 1,323,272     3,324,157
  Fair value of below market acquired time
   charter                                          1,016,281     1,759,201
  Long-term debt                                  124,798,640   137,526,791
                                                ------------- -------------
Total non current liabilities                   $ 127,542,214 $ 144,132,836
                                                ------------- -------------
Total liabilities                               $ 156,171,212 $ 171,023,810
                                                ------------- -------------

 Commitments and contingencies                             --            --

 Stockholders' equity
  Capital stock
  5,000,000 preferred shares authorized and
   zero outstanding with par value of
  $0.01 per share 100,000,000 common shares
   authorized 14,400,000 and 22,060,105 shares
  issued and outstanding with a par value of
   $0.01 per share                                    144,000       220,601
  Additional paid-in capital                      150,607,621   281,307,088
  Retained earnings                                12,826,845    19,602,240
  Accumulated other comprehensive income              223,762       248,838
                                                ------------- -------------
Total stockholders' equity                      $ 163,802,228 $ 301,378,767
                                                ------------- -------------
Total liabilities and stockholders' equity      $ 319,973,440 $ 472,402,577
                                                ------------- -------------



                              STEALTHGAS INC.
              Condensed Consolidated Statements of Cash Flows
                    (Expressed in United States Dollars)


                                              For the Nine Months Ended
                                            September 30,   September 30,
                                                 2006            2007
                                              (Unaudited)     (Unaudited)
                                            --------------  --------------
Cash flows from operating activities
   Net income for the period                $   13,674,533  $   16,311,665

Items included in net income not affecting
  cash flows:
   Depreciation and amortization                 9,487,780      11,990,655
   Amortization of fair value of time
    charter                                     (1,615,766)       (805,362)
   Net (income) of vessel acquired from the
    Vafias Group                                   (99,870)             --
   Share based compensation                             --         990,380
   Change in fair value of derivatives             163,887       1,450,339

Changes in operating assets and
 liabilities:
   (Increase)/Decrease in
   Trade receivables                              (592,513)       (453,740)
   Claim receivable                               (128,373)        (12,450)
   Inventories                                    (568,752)       (209,937)
   Advances and prepayments                        (91,908)         73,936
   Increase/(Decrease) in
   Payable to related party                      3,209,924      (1,076,762)
   Trade accounts payable                        1,978,136       1,356,248
   Other accrued liabilities                     1,065,061      (1,227,700)
   Deferred income                                 764,308        (128,774)
                                            --------------  --------------
Net cash provided by operating activities   $   27,246,447  $   28,258,498
                                            --------------  --------------

Cash flows from investing activities
   Insurance proceeds                                   --         269,893
   Advances for vessels acquisitions                    --      (1,700,000)
   (Increase) in restricted cash account        (2,786,124)       (483,683)
   Acquisition of vessels                      (78,278,904)   (104,186,223)
                                            --------------  --------------
Net cash (used in) investing activities     $  (81,065,028) $ (106,100,013)
                                            --------------  --------------

Cash flows from financing activities
   Capital stock                                     4,000          76,601
   Additional paid-in-capital                    5,012,000
   Follow-on offering                                  --      129,600,000
   Underwriters’ over allotment option
    exercised                                          --        8,281,890
   Issuance costs                                      --       (8,172,803)
   Deemed dividends                               (287,500)             --
   Dividends paid                               (7,950,000)     (9,536,270)
   Deferred finance charges                       (110,000)       (145,795)
   Overdraft facility                             (200,000)             --
   Customer deposits                             1,321,149       1,984,385

   Loan repayment                              (54,514,000)    (41,483,885)
   Proceeds from short-term bridge facility             --      26,500,000
   Proceeds from long-term debt                100,430,000      27,067,500
                                            --------------  --------------
Net cash provided by financing activities   $   43,705,649  $  134,171,623
                                            --------------  --------------

Net (decrease) in cash and cash equivalents    (10,112,932)     56,330,108
Cash and cash equivalents at beginning of
 period                                         23,210,243      11,146,871
                                            --------------  --------------
Cash and cash equivalents at end of period  $   13,097,311  $   67,476,979
                                            --------------  --------------
Supplemental Cash Flow Information:
   Cash paid during the period for
    interest:                               $    4,656,306  $    7,840,223
                                            ==============  ==============
   Non cash items:
   Fair value of below market acquired time
    charter                                 $    1,982,000  $    1,572,000
                                            ==============  ==============

About STEALTHGAS INC.

Headquartered in Athens, Greece, STEALTHGAS INC. is a ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry. STEALTHGAS INC. currently has a fleet of 38 LPG carriers with a total capacity of 164,429 cubic meters (cbm). In addition, STEALTHGAS INC. has entered into an agreement to acquire one second-hand LPG carrier with expected delivery in February 2008. Once this acquisition is complete, STEALTHGAS INC.'s fleet will be composed of 39 LPG carriers with a total capacity of 171,629 cubic meters (cbm). STEALTHGAS Inc.'s shares are listed on NASDAQ and trade under the symbol "GASS."


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, 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, general market conditions, including changes in charterhire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in STEALTHGAS INC.'s operating expenses, including bunker prices, dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by STEALTHGAS INC. with the US Securities and Exchange Commission.

Visit our website at www.stealthgas.com

Contact Information

  • Company Contact:
    Andrew J. Simmons
    Chief Financial Officer
    STEALTHGAS INC.
    011-30-210-6250-001
    E-mail: simmons@stealthgas.com

    Investor Relations/Media:
    Nicolas Bornozis
    Capital Link, Inc. (New York)
    Tel. 212-661-7566
    E-mail: nbornozis@capitallink.com