SOURCE: StealthGas Inc.

February 23, 2007 16:05 ET

STEALTHGAS INC. Reports Fourth Quarter and Full-Year 2006 Results and Announces Quarterly Cash Dividend of $0.1875 per Common Share

ATHENS, GREECE -- (MARKET WIRE) -- February 23, 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 fourth quarter and full-year period ended December 31, 2006.

Fourth Quarter 2006 Results

For the fourth quarter ended December 31, 2006, net revenues amounted to $20.4 million and net income was $4.8 million. Earnings per share, basic and diluted, calculated on 14,400,000 weighted average number of shares outstanding, were $0.33. EBITDA for the fourth quarter of 2006 was $10.2 million.

For the fourth quarter of 2006, the Company reported an unrealized, non-cash loss of $28,777 on three previously disclosed interest rate swap arrangements. Before these non-cash charges, net income was $4.8 million, or $0.34 per share, basic and diluted.

An average of 28 vessels were owned and operated in the fourth quarter of 2006, earning an average time-charter-equivalent rate of approximately $7,323 per day.

Full-Year 2006 Results

For the twelve-month period ended December 31, 2006, net revenues amounted to $73.3 million and net income was $18.5 million. Earnings per share, basic and diluted, calculated on 14,161,096 weighted average number of shares outstanding, were $1.31. EBITDA for the twelve-months of 2006 was $36.7 million.

For the full-year period 2006, the non-cash unrealized loss on the above mentioned swap arrangements was $0.2 million. Before these non-cash charges, net income for the year was $18.7 million or $1.32 per share, basic and diluted.

An average of 25.9 vessels were owned and operated in the full-year of 2006 earning an average time-charter-equivalent rate of approximately $7,174 per day.

CEO Harry Vafias commented: "We are very pleased to report an improvement in our financial performance in the fourth quarter of 2006 as compared to the previous two quarters of 2006, mainly due to an improvement in charter rates during the latter part of the fourth quarter and continued tight management of our operating costs. The company's financial performance compared to the previous two quarters also benefited from a lower number of dry dockings. These costs are taken directly to our profit and loss account at the time they are incurred, and are not amortized.

"I would also note that currently the outlook in terms of charter rates for the handy size LPG sector has improved dramatically over the past several weeks, particularly in the semi refrigerated sector, where for instance the Gas Crystal is currently trading on a spot basis and is earning very attractive charter hires. About 74% of our fleet days for 2007 are already fixed in terms of their employment for the Fiscal year of 2007, and we expect to derive benefits from this upturn in rates through vessels that are currently trading in the spot market, and from those whose charters are due for renewal in the coming weeks.

"In terms of 2006 overall, this proved to perhaps be a more challenging year than we anticipated, as two dull quarters in terms of charter rates, in the second and third quarter, plus a heavy dry docking schedule at the same time, slowed down our performance, however as mentioned previously this has rebounded quite well in the fourth quarter.

"We have continued our policy of majority period employment for our vessels and I am pleased that 74% of the fleet's charter days are already fixed for 2007. We have as previously announced been rationalizing the management of our vessels, reducing the number of out sourced third party managers down to the more cost efficient ones, and also bringing more vessels under the management of our affiliate, Stealth Maritime Corp, which I believe will allow us to continue to deliver operating expenses that are below the industry norm. I should add, however that, as with most sectors of shipping, but in particular the gas sector, we are facing intense cost pressures with regard to crewing due to a scarcity of qualified sea farers and this is an area that is some cause for concern in my view going forward, not just from a STEALTHGAS standpoint, but the industry overall.

"We have continued our dividend policy during 2006 which I believe is a commendable one from a yield standpoint when we consider how rapidly the company has grown in just the 14 months since we went public in October of 2005. I am also proud to state that all of the strategic developments that were outlined to potential investors at the time that we went public have been met.

"We have invested in upgrading our computer and accounting systems and we intend to maintain and develop the highest levels of corporate governance within our organization.

"We look forward to our continued development in 2007, and in this context, on February 1st, 2007, we took delivery of our first newbuilding, and expect to take delivery of the second newbuilding in October 2007."

CFO Andrew Simmons commented: "Our rapid growth has not been at the expense of our balance sheet structure and we have remained with a relatively modest level of leverage throughout 2006. We have been able to secure further bank financing from our two main banks at very competitive levels of pricing, and several other lenders have shown a strong interest in assisting us with our financing needs in the future.

"As such with the existing structure of the business both financially and commercially we believe we are well placed to move forward over the course of 2007 and beyond."

Quarterly Dividend

At its latest meeting held today, the Company's Board of Directors declared a quarterly cash dividend of $0.1875 per common share, payable on March 12, 2007 to shareholders of record on March 5, 2007.

This is the fifth consecutive quarterly dividend since the company went public in October 2005 and since then STEALTHGAS has declared quarterly dividends aggregating $0.9375 per common share.

Updated Fleet Profile and Fleet Deployment:


The table below describes our fleet development and deployment as of today:

                                                               Monthly
           Vessel                Delivered             Charter  Rate
            Size   Vessel  Year     To     Employment  Expira-  (1*)
Vessel     (cbm)    Type    Built  GASS     Status      tion     US$
           ------- ------ ------- ------- ------------ ------- -------
CURRENT FLEET
Gas Cathar   7,517   F.P.    2001  Oct-05 Time Charter  Aug-07 355,000
           ------- ------ ------- ------- ------------ ------- -------
Gas
 Marathon    6,572   F.P.    1995  Nov-05     Bareboat  Oct-07 220,000
           ------- ------ ------- ------- ------------ ------- -------
Gas
 Chios(4)    6,562   F.P.    1991  Oct-05 Time Charter  Mar-07 300,000
           ------- ------ ------- ------- ------------ ------- -------
Gas Amazon   6,526   F.P.    1992  May-05 Time Charter Nov -07 252,500
           ------- ------ ------- ------- ------------ ------- -------
Gas Flawless 6,300   F.P.    2007  Feb-07 Time Charter  Feb-09 299,000
           ------- ------ ------- ------- ------------ ------- -------
Gas Monarch  5,018   F.P.    1997  Dec-05 Time Charter  Jun-07 295,000
           ------- ------ ------- ------- ------------ ------- -------
Gas Nemesis  5,016   F.P.    1995  Jun-06 Time Charter June-07 225,000
           ------- ------ ------- ------- ------------ ------- -------
Lyne (2)     5,014   F.P.    1996  May-06     Bareboat  May-09 163,636
           ------- ------ ------- ------- ------------ ------- -------
Gas Emperor  5,013   F.P.    1995  Feb-05 Time Charter  Jun-07 245,000
           ------- ------ ------- ------- ------------ ------- -------
Birgit
 Kosan(6)    5,012   F.P.    1995  Apr-05     Bareboat  Apr-07 190,000
           ------- ------ ------- ------- ------------ ------- -------
Catterick    5,001    F.P    1995  Nov-05 Time Charter  Jan-08 217,000
           ------- ------ ------- ------- ------------ ------- -------
Sir Ivor(3)  5,000   F.P.    2003  May-06     Bareboat  May-09 163,636
           ------- ------ ------- ------- ------------ ------- -------
Gas
 Sincerity   4,123   F.P.    2000  Nov-05 Time Charter  Jul-07 245,000
           ------- ------ ------- ------- ------------ ------- -------
Gas Spirit   4,112   F.P.    2001  Dec-05 Time Charter  Jun-07 250,000
           ------- ------ ------- ------- ------------ ------- -------
Gas Zael     4,111   F.P.    2001  Dec-05 Time Charter  Mar-07 402,800
           ------- ------ ------- ------- ------------ ------- -------
Gas
 Courchevel  4,109   S.R.    1991  Nov-04 Time Charter  Mar-07 390,000
           ------- ------ ------- ------- ------------ ------- -------
Gas
 Prophet(5)  3,556   F.P.    1996  Oct-04     Bareboat  Sep-09 110,000
           ------- ------ ------- ------- ------------ ------- -------
Gas
 Shanghai(8) 3,526   F.P.    1999  Dec-04 Time Charter  Mar-07 194,000
           ------- ------ ------- ------- ------------ ------- -------
Gas Czar     3,510   F.P.    1995  Feb-06 Time Charter  Nov-07 190,000
           ------- ------ ------- ------- ------------ ------- -------
Gas Legacy   3,500   F.P.    1998  Oct-05 Time Charter  Apr-07 250,000
           ------- ------ ------- ------- ------------ ------- -------
Gas Fortune  3,500   F.P.    1995  Feb-06 Time Charter  Dec-07 186,000
           ------- ------ ------- ------- ------------ ------- -------
Gas
 Eternity(7) 3,500   F.P.    1998  Mar-06     Bareboat  Apr-10 122,500
           ------- ------ ------- ------- ------------ ------- -------
Gas Artic    3,434   S.R.    1992  Apr-05     Bareboat  Apr-09 190,000
           ------- ------ ------- ------- ------------ ------- -------
Gas Ice      3,434   S.R.    1991  Apr-05     Bareboat  Apr-08 174,250
           ------- ------ ------- ------- ------------ ------- -------
Batangas     3,244   F.P.    1995  Jun-06     Bareboat  Jul-08 106,000
           ------- ------ ------- ------- ------------ ------- -------
Gas Crystal  3,211   S.R.    1990  Nov-05         Spot     N/A     N/A
           ------- ------ ------- ------- ------------ ------- -------
Gas Oracle   3,014   F.P.    1990  Dec-05 Time Charter  Dec-07 220,000
           ------- ------ ------- ------- ------------ ------- -------
Gas Prodigy  3,014   F.P.    1995  Oct-05 Time Charter  Dec-07 180,000
           ------- ------ ------- ------- ------------ ------- -------
Gas Tiny     1,320   S.R.    1991  Oct-04 Time Charter  Jan-09 140,000
           ------- ------ ------- ------- ------------ ------- -------
FLEET
TOTAL      126,769
29 VESSELS Cbm

           ------- ------ ------- ------- ------------ ------- -------
Additional Vessels (with expected delivery date)
Gas
Haralambos   7,000   F.P.  Oct-07  Oct-07
FLEET
TOTAL      133,769
30 VESSELS cbm
           ------- ------ ------- ------- ------------ ------- -------

--  F.P.: Fully-Pressurized
--  S.R.: Semi-Refrigerated
--  (1) To calculate daily rate divide by 30.4. All rates are quoted on a
    gross basis and do not take into account chartering commissions
--  (2) Lyne is employed under a bareboat charter until May 2009 at the
    rate of USD 163,636 per calendar month. Thereafter, at charterer's option,
    the bareboat charter can be extended for a further one year at the rate of
    USD 171,717 per calendar month.
--  (3) Sir Ivor is employed under a bareboat charter until May 2009 at
    the rate of USD 163,636 per calendar month. Thereafter, at charterer's
    option, the bareboat charter can be extended for a further one year at the
    rate of USD 171,717 per calendar month.
--  (4) Gas Chios charter has been extended for an additional twelve-month
    period at the rate of USD 252,500 per month. The charter will commence in
    March 2007.
--  (5) Gas Prophet has for the three year duration of her bareboat
    charter been renamed the M.T. Ming Long.
--  (6) Birgit Kosan is currently employed under a bareboat charter to an
    international owner of LPGs expiring in April 2007. This bareboat charter
    has been extended for 6 months from April 2007 to October 2007 at a rate of
    USD 150,000 per calendar month.
--  (7) Gas Eternity will, from the commencement of her three year
    bareboat charter in March 2007, be renamed the M.T Yu Tian 9.
--  (8) Gas Shanghai is currently employed under a time charter until
    March 2007. Thereafter she will be employed on a further six month time
    charter at the rate of USD 225,000 per calendar month.
    
Fleet Data

The following key indicators highlight the Company's operating performance during the fourth quarter ended December 31, 2006 and December 31, 2005.


FLEET DATA                                             Q4 2006    Q4 2005
                                                      ---------  ---------
Average number of vessels (1)                              28.0       17.2
                                                      ---------  ---------
Period end number of vessels in fleet                      28.0       21.0
                                                      ---------  ---------
Total calendar days for fleet (2)                         2,576      1,585
                                                      ---------  ---------
Total voyage days for fleet (3)                           2,564      1,581
                                                      ---------  ---------
Fleet utilization (4)                                      99.5%      99.7%
                                                      ---------  ---------
Total time charter days for fleet (5)                     2,281      1,532
                                                      ---------  ---------
Total spot market days for fleet (6)                        283         49
                                                      ---------  ---------

AVERAGE DAILY RESULTS                                   Q4 2006    Q4 2005
                                                      ---------- ----------
Time Charter Equivalent - TCE (7)                     $    7,323 $    8,125
                                                      ---------- ----------
Vessel operating expenses (8)                              2,113      2,092
                                                      ---------- ----------
Management fees                                              320        337
                                                      ---------- ----------
General and administrative expenses                          568        272
                                                      ---------- ----------
Total vessel operating expenses (9)                        2,682      2,364
                                                      ---------- ----------
The following key indicators highlight the Company's operating performance during the full-year period ended December 31, 2006 and December 31, 2005.

FLEET DATA                                            12M 2006   12M 2005
                                                      ---------  ---------
Average number of vessels (1)                              25.9       11.9
                                                      ---------  ---------
Period end number of vessels in fleet                      28.0       21.0
                                                      ---------  ---------
Total calendar days for fleet (2)                         9,451      4,334
                                                      ---------  ---------
Total voyage days for fleet (3)                           9,346      4,288
                                                      ---------  ---------
Fleet utilization (4)                                      98.9%      98.9%
                                                      ---------  ---------
Total time charter days for fleet (5)                     8,209      4,105
                                                      ---------  ---------
Total spot market days for fleet (6)                      1,137        183
                                                      ---------  ---------


AVERAGE DAILY RESULTS                                  12M 2006   12M 2005
                                                      ---------- ----------
Time Charter Equivalent - TCE (7)                     $    7,174 $    7,919
                                                      ---------- ----------
Vessel operating expenses (8)                              2,061      2,099
                                                      ---------- ----------
Management fees                                              325        340
                                                      ---------- ----------
General and administrative expenses                          366        180
                                                      ---------- ----------
Total vessel operating expenses (9)                        2,426      2,279
                                                      ---------- ----------

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, drydocks 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 vessel operating expenses, or TVOE, is a measurement of our total expenses associated with operating our vessels. TVOE is the sum of vessel operating expenses and general and administrative expenses. Daily TVOE is calculated by dividing TVOE by fleet calendar days for the relevant time period.

EBITDA Reconciliation

EBITDA represents net earnings before interest, taxes, depreciation and amortization. EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by United States generally accepted accounting principles, or U.S. GAAP, and our calculation of EBITDA may not be comparable to that reported by other companies.

EBITDA is included herein because it is a basis upon which we assess our liquidity position and because we believe that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness. The Company's definition of EBITDA may not be the same as that used by other companies in the shipping or other industries.

EBITDA reconciliation for the fourth quarter ended December 31, 2006 and December 31, 2005:

(figures in US $)                                 Q4 2006       Q4 2005
                                                ------------  ------------
Net Cash Provided By (Used in) Operating
 Activities                                     $  5,978,537  $  7,061,620
                                                ------------  ------------
Net increase in current assets, excluding cash       612,443    (2,741,425)
                                                ------------  ------------
Net (increase) in current liabilities,
 excluding short-term portion of long term
 debt.                                             1,652,483     3,081,893
                                                ------------  ------------

                                                ------------  ------------
Interest income                                     (226,324)     (454,235)
                                                ------------  ------------
Interest and finance costs, net                    2,239,484     1,123,095
                                                ------------  ------------
Amortization of finance fees                          (8,829)      (24,805)
                                                ------------  ------------
Net income of vessel acquired from the Vafias
 Group                                                     0       (16,947)
                                                ------------  ------------
Change in fair value of derivatives                  (28,777)        7,000
                                                ------------  ------------
EBITDA                                          $ 10,219,017  $  8,036,196
                                                ------------  ------------


(figures in US $)                                 Q4 2006       Q4 2005
                                                ------------  -------------
Net Income                                      $  4,817,976  $   5,658,423
                                                ------------  -------------
Plus net interest expense                          2,239,484        668,860
                                                ------------  -------------
Less Interest income                                (226,324)             0
                                                ------------  -------------
Plus depreciation                                  3,607,787      1,708,913
                                                ------------  -------------
Plus Amortization of fair value                     (219,906)             0
                                                ------------  -------------
EBITDA                                          $ 10,219,017  $   8,036,196
                                                ------------  -------------

EBITDA reconciliation for the full-years ended December 31, 2006 and December 31, 2005:

(figures in US $)                                 12M 2006      12M 2005
                                                ------------  ------------
Net Cash Provided By (Used in) Operating
 Activities                                     $ 33,224,984  $ 24,414,729
                                                ------------  ------------
Net increase in current assets, excluding cash     1,993,989      (742,021)
                                                ------------  ------------
Net (increase) in current liabilities,
 excluding short-term portion of long term
 debt.                                            (5,364,946)   (5,063,296)
                                                ------------  ------------
Non-cash G&A expenses                                      0      (243,750)
                                                ------------  ------------
Interest income                                     (735,090)     (780,434)
                                                ------------  ------------
Interest and finance costs, net                    7,705,602     2,685,207
                                                ------------  ------------
Amortization of finance fees                         (46,080)      (41,344)
                                                ------------  ------------
Net income of vessel acquired from the Vafias
 Group                                                99,870       (16,947)
                                                ------------  ------------
Change in fair value of derivatives                 (192,664)      (67,000)
                                                ------------  ------------
EBITDA                                          $ 36,685,665  $ 20,145,144
                                                ------------  ------------


(figures in US $)                                   12M 2006      12M 2005
                                                ------------  ------------
Net Income                                      $ 18,492,509  $ 14,536,051
                                                ------------  ------------
Plus net interest expense                          7,705,602     2,685,207
                                                ------------  ------------
Less Interest income                                (735,090)     (780,434)
                                                ------------  ------------
Plus depreciation                                 13,058,316     5,611,942
                                                ------------  ------------
Plus Amortization of fair value                   (1,835,672)   (1,907,622)
                                                ------------  ------------
EBITDA                                          $ 36,685,665  $ 20,145,144
                                                ------------  ------------
Conference Call and Webcast:

As previously announced, on Monday, February 26, 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(from the US), 0800 953 0329 (from the UK) or +44 (0) 1452 542 301 (from outside the US). Please quote "STEALTHGAS."

In case of any problem with the above numbers, please dial 1866 869 2352 (from the US), 800 694 1449 (from the UK) or +44 (0) 1452 560 304 (from outside the US). Quote: "STEALTHGAS."

A telephonic replay of the conference call will be available until March 5, 2007 by dialing 1866 247 4222 (from the US), 0800 953 1533 (from the UK) or +44 1452 550 000 (from outside the US). Access Code: 2201616#

Slides and audio webcast:

There will also be a live -- and then archived -- webcast of the conference call, through the internet 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.
                   Consolidated  Statements  of  Income
 For  the  quarters  ended  December  31,  2005  and  December  31,  2006
                 (Expressed  in  United  States  Dollars)

                                                  For the Quarter Ended
                                                December 31,  December 31,
                                                    2005          2006
                                                (Unaudited)   (Unaudited)
                                                ------------  ------------
Revenues
  Voyage revenues                               $ 13,816,745  $ 20,424,199
                                                ------------  ------------

Expenses
  Voyage expenses                                    970,346     1,648,840
  Vessels' operating expenses                      3,314,930     5,444,135
  Dry-docking costs                                   20,373       545,455
  Management fees                                    533,830       824,896
  General and administrative expenses                431,879     1,464,036
  Depreciation                                     2,219,000     3,607,787
                                                ------------  ------------
Total expenses                                     7,490,358    13,535,149
                                                ------------  ------------

Income from operations                          $  6,326,387  $  6,889,050
                                                ------------  ------------

Other income and (expense)
  Interest and finance costs, net                 (1,123,095)   (2,239,484)
  Change in fair value of derivatives                  7,000       (28,777)
  Interest income                                    454,235       226,324
  Foreign exchange loss                               (6,104)      (29,137)
                                                ------------  ------------
Other expenses, net                                 (667,964)   (2,071,074)
                                                ------------  ------------

Net income                                      $  5,658,423  $  4,817,976
                                                ------------  ------------

Earnings per share, basic and diluted           $       0.42  $       0.33
                                                ============  ============

Weighted average number of shares, outstanding    13,565,217    14,400,000
                                                ============  ============


                              STEALTHGAS INC
                    Consolidated Statements of Income
        For the years ended December 31, 2005 and December 31, 2006
                  (Expressed in United States Dollars)


                                                  For the Twelve Months
                                                          Ended
                                                December 31,  December 31,
                                                    2005          2006
                                                              (Unaudited)
                                                ------------  ------------
Revenues
   Voyage revenues                              $ 36,644,591  $ 73,259,369
                                                ------------  ------------

Expenses
   Voyage expenses                                 2,688,155     6,213,804
   Vessels' operating expenses                     9,095,576    19,474,344
   Dry-docking costs                                 470,384     2,243,395
   Management fees                                 1,473,080     3,068,609
   General and administrative expenses               779,539     3,457,688
   Depreciation                                    5,611,942    13,058,316
                                                ------------  ------------
Total expenses                                  $ 20,118,676  $ 47,516,156
                                                ------------  ------------

Income from operations                          $ 16,525,915  $ 25,743,213
                                                ------------  ------------

Other revenues and (expense)
   Interest and finance costs, net                (2,685,207)   (7,705,602)
   Change in fair value of derivatives               (67,000)     (192,664)
   Interest income                                   780,434       735,090
   Foreign exchange loss                             (18,091)      (87,528)
                                                ------------  ------------
Other income, net                                 (1,989,864)   (7,250,704)
                                                ------------  ------------

Net income
                                                $ 14,536,051  $ 18,492,509
                                                ------------  ------------

Earnings per share, basic and diluted           $       1.84  $       1.31
                                                ============  ============

Weighted average number of shares, outstanding     7,906,849    14,161,096
                                                ============  ============



                              STEALTHGAS INC
                        Consolidated Balance Sheets
              As of December 31, 2005 and December 31, 2006
                   (Expressed in United States Dollars)

                                                ------------- -------------
                                                December 31,  December 31,
                                                    2005          2006
                                                              (Unaudited)
                                                ------------- -------------
Assets
Current assets
   Cash and cash equivalents                    $  23,210,243 $  11,146,871
   Trade receivables                                   13,330     1,096,645
   Claim receivable                                        --       289,922
   Inventories                                        399,624       746,874
   Advances and prepayments                           161,094       270,370
   Fair value of above market acquired time
    charter                                           597,754        23,718
   Restricted cash                                  1,634,203     4,317,338
                                                ------------- -------------
Total current assets                            $  26,016,248 $  17,891,738
                                                ------------- -------------

Non current assets
   Advances for vessels acquisitions                  983,000            --
   Advances for vessels under construction                 --     3,483,750
   Vessels, net                                   229,763,864   297,950,257
   Deferred finance charges                           215,656       279,576
                                                ------------- -------------
Total non current assets                        $ 230,962,520 $ 301,713,583
                                                ------------- -------------
Total assets                                    $ 256,978,768 $ 319,605,321
                                                ------------- -------------

Liabilities and Stockholders' Equity
Current liabilities
   Overdraft facility                                 200,000            --
   Payable to related party                         1,549,837     2,198,456
   Trade accounts payable                             984,997     2,049,456
   Other accrued liabilities                        1,635,040     4,681,488
   Customer deposits                                       --       660,000
   Fair value of below market acquired time
    charter                                         1,443,989     1,016,281
   Deferred income                                  2,284,578     2,889,998
   Current portion of long-term debt               12,627,000    16,149,600
                                                ------------- -------------
Total current liabilities                       $  20,725,441 $  29,645,279

Non current liabilities
   Derivative liability                                67,000        35,902
   Customer deposits                                       --     1,323,272
   Long-term debt                                  85,079,000   124,798,640
                                                ------------- -------------
Total non current liabilities                   $  85,146,000 $ 126,157,814
                                                ------------- -------------
Total liabilities                               $ 105,871,441 $ 155,803,093
                                                ------------- -------------

Commitments and contingencies                              --            --

Stockholders' equity
   Capital stock 14,400,000 shares authorized
    and outstanding with a par value of $.01          140,000       144,000
   Additional paid-in capital                     145,883,121   150,607,621
   Retained earnings                                5,084,206    12,826,845
   Accumulated other comprehensive income                  --       223,762
                                                ------------- -------------
Total stockholders' equity                      $ 151,107,327 $ 163,802,228
                                                ------------- -------------
Total liabilities and stockholders' equity      $ 256,978,768 $ 319,605,321
                                                ------------- -------------



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

                                                     December 31,
                                                 2005            2006
                                                              (Unaudited)
                                            --------------  --------------
Cash flows from operating activities
   Net income for the year                  $   14,536,051  $   18,492,509

Items included in net income not affecting
 cash flows:
   Depreciation and amortization                 5,653,286      13,104,396
   Amortization of fair value of time
    charter                                     (1,907,622)     (1,835,672)
   Non cash general and administrative
    expenses                                       243,750              --
   Net loss/(income) of vessel acquired
    from the Vafias Group                           16,947         (99,870)
   Change in fair value of derivatives              67,000         192,644

Changes in operating assets and
 liabilities:
   (Increase)/Decrease in
   Receivable from related party                 1,162,470              --
   Trade receivables                                 6,293      (1,083,315)
   Claim receivable                                     --        (454,148)
   Inventories                                    (274,778)       (347,250)
   Advances and prepayments                       (151,964)       (109,276)
   Increase/(Decrease) in
   Payable to related party                      1,549,837         648,619
   Trade accounts payable                          489,072       1,064,459
   Other accrued liabilities                     1,274,222       3,046,448
   Deferred income                               1,750,165         605,420
                                            --------------  --------------
Net cash provided by operating activities   $   24,414,729  $   33,224,984
                                            --------------  --------------

Cash flows from investing activities
   Insurance proceeds                                   --         164,226
   Advances for vessels acquisitions              (983,000)             --
   Advances for vessels under construction              --      (3,483,750)
   Increase in restricted cash account          (1,634,203)     (2,683,135)
   Acquisition of vessels                     (196,074,506)    (80,261,709)
   Fair value of acquired time charter             911,000       1,982,000
                                            --------------  --------------
Net cash (used in) investing activities     $ (197,780,709) $  (84,282,368)
                                            --------------  --------------

Cash flows from financing activities
   Capital stock                                    80,000           4,000
   Additional paid-in capital                   62,752,877       5,012,000
   Initial Public Offering                     116,000,000              --
   Issuance costs                               (8,694,657)             --
   Deemed dividends                             (6,312,500)       (287,500)
   Vafias group of LPG carriers                (54,898,497)             --
   Dividends paid                              (10,000,000)    (10,650,000)
   Deferred finance charges                       (257,000)       (110,000)
   Overdraft facility                              200,000        (200,000)
   Customer deposits                                    --       1,983,272
   Loan repayment                              (42,294,000)    (57,187,760)
   Proceeds from long-term debt                140,000,000     100,430,000
                                            --------------  --------------
Net cash provided by financing activities   $  196,576,223  $   38,994,012
                                            --------------  --------------

Net Increase (Decrease) in cash and cash
 equivalents                                    23,210,243     (12,063,372)
Cash and cash equivalents at beginning of
 year                                                   --      23,210,243
                                            --------------  --------------
Cash and cash equivalents at end of period  $   23,210,243  $   11,146,871
                                            --------------  --------------
Supplemental Cash Flow Information:
   Cash paid during the year for:
   Interest payments                        $    2,130,228  $    5,968,892
                                            ==============  ==============

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 29 LPG carriers with a total capacity of 126,769 cubic meters (cbm). In addition, the company has agreed to acquire one newbuilding LPG carrier expected to be delivered to STEALTHGAS INC. in early October 2007. Once this acquisition is complete, STEALTHGAS INC.'s fleet will be composed of 30 LPG carriers with a total capacity of 133,769 cubic meters (cbm). STEALTHGAS's shares are listed on NASDAQ and trade under the symbol "GASS."

Forward-Looking Statement

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