SOURCE: StealthGas Inc.

August 14, 2007 09:00 ET

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

ATHENS, GREECE--(Marketwire - August 14, 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 six months ended June 30, 2007.

Second Quarter 2007 Results:

For the quarter ended June 30, 2007, net revenues amounted to $19.9 million and net income was $5.7 million, an increase of $2.7 million or 15.7% and an increase of $1.1 million or 23.9% respectively from net revenues of $17.2 million and net income of $4.6 million for the quarter ended June 30, 2006.

Earnings per share, basic and diluted, calculated on 14,400,000 weighted average number of shares outstanding, were $0.40 for the quarter ended June 30, 2007 as compared to earnings per share of $0.33, basic and diluted, calculated on 14,000,000 weighted average number of shares outstanding for the second quarter of 2006.

Adjusted EBITDA for the second quarter of 2007 was $11.7 million, an increase of $2.8 million or 31.5%, from $8.9 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 second quarter of 2007, the Company reported an unrealized, non-cash gain of $0.3 million on two previously disclosed interest rate swap arrangements as compared to the second quarter 2006 where the company reported a non-cash gain of $0.7 million. Before this non-cash item, net income was $5.4 million, or $0.37 per share, basic and diluted for second quarter 2007 as compared to $3.9 million, or $0.28 per share, basic and diluted for the second quarter of 2006.

An average of 29.3 vessels were owned and operated in the second quarter of 2007, earning an average time-charter-equivalent rate of approximately $7,075 per day as compared to 25.1 vessels and earning an average of $6,922 per day for the same period of 2006.

First Half 2007 Results:

For the six months ended June 30, 2007, net revenues amounted to $40.6 million and net income was $12.3 million, an increase of $6.4 million or 18.7% and an increase of $0.7 million or 6% respectively from net revenues of $34.2 million and net income of $11.6 million for the six months ended June 30, 2006.

Earnings per share, basic and diluted, calculated on 14,400,000 weighted average number of shares outstanding, were $0.85 for the six months ended June 30, 2007 as compared to earnings per share of $0.83, basic and diluted, calculated on 14,000,000 weighted average number of shares outstanding for the six months of 2006.

Adjusted EBITDA for the period ended June 30, 2007 was $24.0 million, an increase of $5.0 million or 26.3%, from $19.0 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 six months of 2007, the Company reported an unrealized, non-cash gain of $0.3 million on two previously disclosed interest rate swap arrangements as compared to the first half of 2006, where the Company reported a non-cash gain of $1.3 million. Before this non-cash item, net income was $12.0 million, or $0.83 per share, basic and diluted for six months ended June 30, 2007 as compared to $10.3 million, or $0.73 per share, basic and diluted for the first half of 2006.

An average of 29.9 vessels were owned and operated in the six months of 2007, earning an average time-charter-equivalent rate of approximately $7,308 per day as compared to 23.8 vessels and earning an average of $7,377 per day for the same period of 2006.

Management Commentary:

CEO Harry Vafias commented: "The second quarter of 2007 was on an overall basis satisfactory. We continued to expand our fleet and kept our operating expenses under very tight control. The quarter was marred by the unfortunate incident involving the M/V Gas Shanghai that has been reported previously, for which we deeply regret the loss of life involved. The loss of revenue from this incident coupled with the 'seasonal' softening of the spot market led to the $0.9 million decline in revenues compared to the first three months of the year. However, year on year, we have produced improved EBITDA, Net Income and Earnings Per Share and with some 92% of our fleet days fixed for the remainder of 2007, about 63% for 2008 and 22% for 2009, along with our successful follow-on offering in July, we look forward with confidence to the remainder of this year and beyond.

"We firmly believe that the fundamentals for our sector are very positive going forward. We believe that the recent re-hiring of three of our vessels by their current charterers, some six months ahead of the expiration of their existing contracts, and at rates about 25% higher than their current rates, is a testament to the favorable outlook for our sector.

"Finally, I am pleased to confirm that we will be paying our seventh consecutive dividend since we went public in October 2005. This dividend will also include our recently expanded shareholder base further to our follow-on offering. We would like to thank both our previously existing and our new shareholders for their support and faith in our Company. We look forward to continuing to expand our Company and proving that your faith has been well placed."

CFO Andrew Simmons commented: "With the proceeds from our upsized follow-on offering, the Company now has the resources to continue its growth cementing its #1 position in the Handysize LPG sector, while at the same time continuing to have a prudently structured balance sheet along with the strong period coverage as highlighted by Harry. This strategy enables us to generate stable and predictable cash flows sustaining our profitability and dividend policy. Continuing our policy of having circa 50% of our debt on a fixed rate basis at all times, in June of this year, we entered into an additional $25 million five year interest rate swap. We are also pleased to note that in the period since the conclusion of our follow-on offering, the daily trading volume of our stock has increased significantly."

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 August 31, 2007 to shareholders of record on August 24, 2007.

This is the seventh consecutive quarterly dividend since the company went public in October 2005. Since then, STEALTHGAS has declared quarterly dividends aggregating $1.3125 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 1,200,000 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 (three 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:

During the second quarter 2007, the Company took delivery of four LPG Carriers it had previously agreed to acquire, the M/V M/V "Sea Bird II" on May 18, 2007, the M/V "Gas Renovatio" on May 29, 2007, the M/V "Gas Icon" on June 27, 2007, and the M/V "Chiltern" on June 28, 2007, expanding its fleet to 33 vessels, with a carrying capacity of 141,912 cbm.

On August 10, 2007, the Company announced that it took delivery of three PLG carriers it had previously agreed to acquire, the M/V "Gas Evoluzione" on July 23, 2007, M/V "Gas Kalogeros" on July 27, 2007, and the M/V "Gas Sikousis" on August 3, 2007, thereby expanding its current fleet to 36 vessels, with a carrying capacity of 153,929 cbm.

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

Fleet Profile and Fleet Deployment:

The table below shows the Company's fleet development and deployment as of today:

                                              Delivered             Charter
                         Vessel   Vessel  Year    To    Employment  Expira-
      Vessel           Size (cbm)  Type   Built  GASS     Status    tion(1)
-------------------    ---------- ------ ------ ------ ------------ -------
CURRENT FLEET
Gas Cathar (2)              7,517   F.P.   2001 Oct-05 Time Charter  Aug-08
Gas Marathon (3)            6,572   F.P.   1995 Nov-05     Bareboat  Oct-09
Gas Chios                   6,562   F.P.   1991 Oct-05 Time Charter  Mar-08
Gas Amazon (4)              6,526   F.P.   1992 May-05 Time Charter  Nov-08
Gas Flawless                6,300   F.P.   2007 Feb-07 Time Charter  Feb-09
Gas Monarch                 5,018   F.P.   1997 Dec-05 Time Charter  Jun-10
Gas Nemesis                 5,016   F.P.   1995 Jun-06 Time Charter  May-08
Lyne (5)                    5,014   F.P.   1996 May-06     Bareboat  May-09
Gas Emperor                 5,013   F.P.   1995 Feb-05 Time Charter  Jun-08
Birgit Kosan (6)            5,012   F.P.   1995 Apr-05     Bareboat  Oct-11
Catterick (7)               5,001   F.P    1995 Nov-05 Time Charter  Jan-09
Sir Ivor (8)                5,000   F.P.   2003 May-06     Bareboat  May-09
Gas Icon                    5,000   F.P.   1994 Jun-07 Time Charter  Jul-08
Gas Kalogeros               5,000   F.P.   2007 Jul-07 Time Charter  May-08
Gas Sincerity               4,123   F.P.   2000 Nov-05 Time Charter  Jul-08
Gas Spirit                  4,112   F.P.   2001 Dec-05 Time Charter  Jun-08
Gas Zael                    4,111   F.P.   2001 Dec-05 Time Charter  Mar-08
Gas Courchevel              4,109   S.R.   1991 Nov-04         Spot       -
Gas Prophet (9)             3,556   F.P.   1996 Oct-04     Bareboat  Sep-09
Gas Shanghai (10)           3,526   F.P.   1999 Dec-04 Time Charter  Sep-08
Sea Bird II                 3,518   F.P.   1996 May-07     Bareboat  May-09
Gas Evoluzione              3,517   F.P.   1996 Jul-07 Time Charter  Aug-08
Gas Czar                    3,510   F.P.   1995 Feb-06 Time Charter  Nov-07
Gas Legacy                  3,500   F.P.   1998 Oct-05 Time Charter  Apr-08
Gas Fortune (11)            3,500   F.P.   1995 Feb-06 Time Charter  Dec-08
Gas Eternity (12)           3,500   F.P.   1998 Mar-06     Bareboat  Apr-10
Gas Sikousis (13)           3,500   F.P.   2006 Aug-07 Time Charter  May-09
Gas Artic                   3,434   S.R.   1992 Apr-05     Bareboat  Apr-09
Gas Ice                     3,434   S.R.   1991 Apr-05     Bareboat  Apr-08
Gas Renovatio               3,313   F.P.   1997 May-07 Time Charter  Jan-08
Chiltern                    3,312   F.P.   1997 Jun-07     Bareboat  Mar-08
Batangas                    3,244   F.P.   1995 Jun-06     Bareboat  Jul-08
Gas Crystal                 3,211   S.R.   1990 Nov-05 Time Charter  Jul-08
Gas Oracle                  3,014   F.P.   1990 Dec-05 Time Charter  Dec-07
Gas Prodigy (14)            3,014   F.P.   1995 Oct-05 Time Charter  Dec-08
Gas Tiny                    1,320   S.R.   1991 Oct-04 Time Charter  Jan-09
FLEET TOTAL               153,929
36 VESSELS                    Cbm
Additional Vessels (with expected delivery date)
Gas Premiership (15)        7,200   F.P.   2001 Feb-08 Time Charter  Feb-12
Gas Haralambos (16)         7,000   F.P. Oct-07 Oct-07 Time Charter  Oct-09
Gas Sophie                  3,500   F.P.   1995 Oct-07            -       -
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 Cathar is currently employed under a time charter with an initial
     term expiring in August 2007, which has been extended to August 2008.
(3)  Gas Marathon is currently employed under a bareboat charter with an
     initial term expiring in October 2007. Thereafter she will be
     re-employed on a bareboat charter October 2009.
(4)  Gas Amazon is currently employed under a time charter with an initial
     term expiring in November 2007, which has been extended to November
     2008.
(5)  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.
(6)  Birgit Kosan is currently employed under a bareboat charter until
     October 2007. Thereafter she will be re-employed on a bareboat charter
     until September 2011.
(7)  Catterick is currently employed under a time charter with an initial
     term expiring in January 2008, which has been extended to January
     2009.
(8)  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.
(9)  Gas Prophet has for the three year duration of bareboat charter been
     renamed the M.T. Ming Long.
(10) Gas Shanghai is currently employed under a time charter with an
     initial term expiring in September 2007, which has been extended to
     September 2008.
(11) Gas Fortune is currently employed under a time charter with an initial
     term expiring in December 2007, which has been extended to December
     2008.
(12) Gas Eternity has for the duration of bareboat charter been renamed the
     M.T. Yu Tian 9.
(13) 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 period, the first one to be negotiated in
     May 2009.
(14) Gas Prodigy is currently employed under a time charter with an initial
     term expiring in December 2007, which has been extended to December
     2008.
(15) Gas Premiership will commence a four year charter upon expected
     delivery in February 2008 expiring in February 2012.
(16) Gas Haralambos will commence a two year charter upon expected delivery
     in October 2007 expiring in October 2009.

Fleet Data:

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

FLEET DATA                                          Q2 2007      Q2 2006
                                                  -----------  -----------
Average number of vessels (1)                            29.3         25.1
Period end number of vessels in fleet                    33.0         28.0
Total calendar days for fleet (2)                       2,723        2,280
Total voyage days for fleet (3)                         2,675        2,253
Fleet utilization (4)                                    98.2%        98.8%
Total time charter days for fleet (5)                   2,515        1,889
Total spot market days for fleet (6)                      160          364


AVERAGE DAILY RESULTS                               Q2 2007      Q2 2006
                                                  -----------  -----------
Time Charter Equivalent - TCE (7)                 $     7,075  $     6,922
Vessel operating expenses (8)                           2,037        2,074
Management fees                                           343          329
General and administrative expenses                       323          444
Total operating expenses (9)                            2,359        2,519

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

FLEET DATA                                          6M 2007      6M 2006
                                                  -----------  -----------
Average number of vessels (1)                            29.9         23.8
Period end number of vessels in fleet                      33         28.0
Total calendar days for fleet (2)                       5,302        4,299
Total voyage days for fleet (3)                         5,254        4,268
Fleet utilization (4)                                    99.1%        99.3%
Total time charter days for fleet (5)                   4,980        3,786
Total spot market days for fleet (6)                      274          482



AVERAGE DAILY RESULTS                               6M 2007      6M 2006
                                                  -----------  -----------
Time Charter Equivalent - TCE (7)                 $     7,308  $     7,377
Vessel operating expenses (8)                           2,044        2,109
Management fees                                           347          325
General and administrative expenses                       320          375
Total operating expenses (9)                            2,364        2,484



(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 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 June 30, 2007 and June 30, 2006:

(figures in US $)                                 Q2 2007       Q2 2006
                                                ------------  ------------
Net Cash Provided By Operating Activities       $ 15,860,775  $  7,298,018
Net increase in current assets, excluding cash      (270,412)      664,722
Net (increase) in current liabilities,
 excluding short-term portion of long term
 debt.                                            (6,599,852)   (1,328,190)
Interest income                                     (109,484)     (165,576)
Interest and finance costs                         2,477,626     1,734,096
Amortization of finance fees                         (17,410)       (9,368)
Change in fair value of derivatives                  327,521       675,496
Adjusted EBITDA                                 $ 11,668,764  $  8,869,198



(figures in US $)                                 Q2 2007       Q2 2006
                                                ------------  ------------
Net Income                                      $  5,689,025  $  4,621,660
Plus interest and finance costs                    2,477,626     1,734,096
Less Interest income                                (109,484)     (165,576)
Plus Depreciation                                  3,802,162     3,127,351
Plus Amortization of fair value of 
 acquired time charters                             (190,565)     (448,333)
Adjusted EBITDA                                 $ 11,668,764  $  8,869,198

Adjusted EBITDA reconciliation for the six months ended June 30, 2007 and June 30, 2006:

(figures in US $)                                  6M 2007       6M 2006
                                                ------------  ------------
Net Cash Provided By Operating Activities       $ 24,670,519  $ 16,589,761
Net increase in current assets, excluding cash      (203,934)    1,189,988
Net (increase) in current liabilities,
 excluding short-term portion of long term
 debt.                                            (5,244,093)   (2,889,461)
Interest income                                     (371,528)     (351,636)
Interest and finance costs                         4,869,835     3,091,390
Amortization of finance fees                         (38,257)      (19,287)
Change in fair value of derivatives                  301,576     1,318,456
Adjusted EBITDA                                 $ 23,984,118  $ 19,029,081



(figures in US $)                                  6M 2007       6M 2006
                                                ------------  ------------
Net Income                                      $ 12,311,479  $ 11,580,353
Plus interest and finance costs                    4,869,835     3,091,390
Less Interest income                                (371,528)     (351,636)
Plus depreciation                                  7,463,993     5,935,011
Plus Amortization of fair value of 
 acquired time charters                             (289,661)   (1,226,037)
Adjusted EBITDA                                 $ 23,984,118  $ 19,029,081

Conference Call and Webcast:

As previously announced, on August 14, 2007 at 11:30 A.M. EDT, 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 August 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 June 30, 2006 and June 30, 2007
                  (Expressed in United States Dollars)


                                                For the Quarter Ended
                                            June 30, 2006   June 30, 2007
                                              (Unaudited)     (Unaudited)
                                            --------------  --------------
Revenues
  Voyage revenues                           $   17,215,045  $   19,880,050
                                            --------------  --------------

Expenses
  Voyage expenses                                1,618,689         958,144
  Vessels' operating expenses                    4,729,458       5,545,968
  Dry-docking costs                                432,926              --
  Management fees                                  750,986         932,890
  General and administrative expenses            1,013,422         878,355
  Depreciation                                   3,127,351       3,802,162
                                            --------------  --------------
Total expenses                                  11,672,832      12,117,519
                                            --------------  --------------

Income from operations                      $    5,542,213  $    7,762,531
                                            --------------  --------------

Other income and (expense)
  Interest and finance costs                    (1,734,096)     (2,477,626)
  Change in fair value of derivatives              675,496         327,521
  Interest income                                  165,576         109,484
  Foreign exchange loss                            (27,529)        (32,885)
                                            --------------  --------------
Other expenses, net                               (920,553)     (2,073,506)
                                            --------------  --------------

Net income                                  $    4,621,660  $    5,689,025
                                            --------------  --------------

Earnings per share, basic and diluted       $         0.33  $         0.40
                                            ==============  ==============

Weighted average number of shares, basic
 and diluted                                    14,000,000      14,400,000
                                            ==============  ==============




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



                                               For the Six Months Ended
                                            June 30, 2006   June 30, 2007
                                              (Unaudited)     (Unaudited)
                                            --------------  --------------
Revenues
  Voyage revenues                           $   34,152,963  $   40,624,156
                                            --------------  --------------

Expenses
  Voyage expenses                                2,666,514       2,233,592
  Vessels' operating expenses                    9,066,664      10,838,762
  Dry-docking costs                                432,926              --
  Management fees                                1,398,785       1,840,850
  General and administrative expenses            1,610,603       1,696,030
  Depreciation                                   5,935,011       7,463,993
                                            --------------  --------------
Total expenses                                  21,110,503      24,073,227
                                            --------------  --------------

Income from operations                      $   13,042,460  $   16,550,929
                                            --------------  --------------
Other income and (expense)
  Interest and finance costs                    (3,091,390)     (4,869,835)
  Change in fair value of derivatives            1,318,456         301,576
  Interest income                                  351,636         371,528
  Foreign exchange loss                            (40,809)        (42,719)
                                            --------------  --------------
Other expenses, net                             (1,462,107)     (4,239,450)
                                            --------------  --------------

Net income                                  $   11,580,353  $   12,311,479
                                            --------------  --------------

Earnings per share, basic and diluted       $         0.83  $         0.85
                                            ==============  ==============

Weighted average number of shares, basic
 and diluted                                    14,000,000      14,400,000
                                            ==============  ==============



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




                                                December 31,    June 30,
                                                    2006          2007
                                                 (Unaudited)   (Unaudited)
                                                ------------- -------------
Assets
Current assets
  Cash and cash equivalents                     $  11,146,871 $   5,962,161
  Trade receivables                                 1,096,645       870,071
  Claim receivable                                    289,922        30,378
  Inventories                                         746,874       770,951
  Advances and prepayments                            270,370       264,355
  Fair value of above market acquired time
   charter                                             23,718            --
  Restricted cash                                   4,317,338     4,671,745
                                                ------------- -------------
Total current assets                            $  17,891,738 $  12,569,661
                                                ------------- -------------

Non current assets
  Advances for vessels acquisitions                        --     1,700,000
  Advances for vessels under construction           3,483,750     2,355,000
  Vessels, net                                    297,950,257   352,506,132
  Restricted cash                                          --       200,000
  Deferred finance charges, net of accumulated
   amortization of $87,424 (as of December 31,
   2006) and (as of June 30, 2007) $125,681           279,576       387,114
  Fair value of derivatives                           368,119       804,816
                                                ------------- -------------
Total non current assets                        $ 302,081,702 $ 357,953,062
                                                ------------- -------------
Total assets                                    $ 319,973,440 $ 370,522,723
                                                ------------- -------------

Liabilities and Stockholders' Equity
Current liabilities
  Payable to related party                          2,198,456     8,314,298
  Short-term bridge facility                               --    18,000,000
  Trade accounts payable                            2,049,456     1,940,369
  Other accrued liabilities                         4,681,488     4,501,097
  Customer deposits                                   660,000       643,500
  Deferred income                                   2,889,998     2,307,727
  Current portion of long-term debt                16,149,600    15,505,064
                                                ------------- -------------
Total current liabilities                       $  28,628,998 $  51,212,055

Non current liabilities
  Fair value of derivatives                           404,021       180,436
  Customer deposits                                 1,323,272     3,307,001
  Fair value of below market acquired time
   charter                                          1,016,281     1,721,902
  Long-term debt                                  124,798,640   143,028,916
                                                ------------- -------------
Total non current liabilities                   $ 127,542,214 $ 148,238,255
                                                ------------- -------------
Total liabilities                               $ 156,171,212 $ 199,450,310
                                                ------------- -------------

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 shares issued and
     outstanding with a par value of $0.01 per
     share                                            144,000       144,000
  Additional paid-in capital                      150,607,621   150,607,621
  Retained earnings                                12,826,845    19,738,324
  Accumulated other comprehensive income              223,762       582,468
                                                ------------- -------------
Total stockholders' equity                      $ 163,802,228 $ 171,072,413
                                                ------------- -------------
Total liabilities and stockholders' equity      $ 319,973,440 $ 370,522,723
                                                ------------- -------------


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



                                                  For the Quarter Ended
                                              June 30, 2006  June 30, 2007
                                               (Unaudited)    (Unaudited)
                                              -------------  -------------
Cash flows from operating activities
   Net income for the period                  $  11,580,353  $  12,311,479

Items included in net income not affecting
cash flows:
   Depreciation and amortization                  5,954,298      7,502,250
   Amortization of fair value of time charter    (1,226,037)      (289,661)
   Net (income) of vessel acquired from the
    Vafias Group                                    (99,870)            --
   Change in fair value of derivatives           (1,318,456)      (301,576)

Changes in operating assets and liabilities:
   (Increase)/Decrease in
   Trade receivables                               (285,579)       226,574
   Claim receivable                                (179,489)        (4,578)
   Inventories                                     (694,342)       (24,077)
   Advances and prepayments                         (30,578)         6,015
   Increase/(Decrease) in
   Payable to related party                       1,213,020      6,115,842
   Trade accounts payable                           972,456       (109,087)
   Other accrued liabilities                        765,388       (180,391)
   Deferred income                                  (61,403)      (582,271)
                                              -------------  -------------
Net cash provided by operating activities     $  16,589,761  $  24,670,519
                                              -------------  -------------

Cash flows from investing activities
   Insurance proceeds                                    --        264,122
   Advances for vessels acquisitions                     --     (1,700,000)
   (Increase) in restricted cash account         (2,084,441)      (554,407)
   Acquisition of vessels                       (78,245,786)   (59,872,118)
                                              -------------  -------------
Net cash (used in) investing activities       $ (80,330,227) $ (61,862,403)
                                              -------------  -------------

Cash flows from financing activities
   Deemed dividends                                (287,500)            --
   Dividends paid                                (5,250,000)    (5,400,000)
   Deferred finance charges                        (110,000)      (145,795)
   Overdraft facility                              (200,000)            --
   Customer deposits                                     --      1,967,229
   Loan repayment                               (47,706,000)    (9,481,760)
   Proceeds from short-term bridge facility                     18,000,000
   Proceeds from long-term debt                 100,430,000     27,067,500
                                              -------------  -------------
Net cash provided by financing activities     $  46,876,500  $  32,007,174
                                              -------------  -------------

Net (decrease) in cash and cash equivalents     (16,863,966)    (5,184,710)
Cash and cash equivalents at beginning of
 period                                          23,210,243     11,146,871
                                              -------------  -------------
Cash and cash equivalents at end of period    $   6,346,277  $   5,962,161
                                              -------------  -------------
Supplemental Cash Flow Information:
   Cash paid during the period for:
   Interest payments                          $   2,624,695  $   4,419,047
                                              =============  =============
   Non cash items:
   Fair value of below market acquired time
    charter                                   $   1,982,000  $   1,019,000
                                              =============  =============





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 36 LPG carriers with a total capacity of 153,929 cubic meters (cbm). In addition, the company has agreed to acquire one re sale newbuilding LPG carrier expected to be delivered to it in October 2007. It has also entered into agreements to acquire two additional second-hand LPG carriers with expected delivery between October 2007 and February 2008. Once these acquisitions are 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 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