For the third quarter ended September 30, 2006, net revenues amounted to $18.7 million and net income was $2.1 million. Earnings per share, basic and diluted, calculated on 14.2 million weighted average number of shares outstanding, were $0.15. EBITDA for the third quarter of 2006 was $7.4 million.
During the third quarter 2006, the Company reported an unrealized, non-cash loss of $1.5 million on three previously disclosed interest rate swap arrangements. Before these non cash charges, net income was $3.6 million, or $0.25 per diluted share.
An average of 28 vessels were owned and operated in the third quarter 2006 earning an average time-charter-equivalent rate of approximately $6,675 per day.
For the nine-month period ended September 30, 2006, net revenues amounted to $52.8 million and net income was $13.7 million. Earnings per share, basic and diluted, calculated on 14.1 million weighted average number of shares outstanding, were $0.97. EBITDA for the nine-months of 2006 was $26.5 million.
For the nine-month 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 nine month period was $13.9 million or $0.98 per diluted share.
An average of 25.2 vessels were owned and operated in the nine-months of 2006 earning an average time-charter-equivalent rate of approximately $7,117 per day.
CEO Harry Vafias commented: "During the third quarter of 2006, we achieved strong operational results despite the unusually heavy dry docking costs of $ 1.3 million which affected our profitability. We dry docked four vessels, or one fifth of the twenty vessels in our fleet for which we are responsible for dry docking and special survey costs, whereas for our eight vessels that operate under bareboat charter, it is the charterer who is responsible for these costs. I would also like to reiterate that we take all our dry docking costs directly to our Profit and Loss account at the time they are incurred."
"We have and will continue to pursue and secure period employment on the majority of our fleet to first class charterers. In this context, approximately 61% of our fleet is already fixed for 2007. However, overall rates have been softer over the past few months, as can be seen from the decline in our average daily time charter equivalent (TCE) rate per vessel from $6,922 in the second quarter 2006 to $6,675 in the third quarter 2006. Nevertheless, I am pleased to report that at a time of ever increasing costs in the shipping sector, we are still managing to operate our vessels with the highest standards of safety and quality at costs below the industry average. Our total vessel operating expenses per day have been reduced from $2,519 in the second quarter 2006 to $2,076 in the third quarter 2006, thereby more than offsetting the decline in the daily TCE rate. In this softer rate environment, we are paying very close attention to keeping our costs under control, and in this regard, as previously announced, by the middle of next year, we expect to have our affiliate Stealth Maritime manage between eight and ten of our vessels."
CFO Andrew Simmons commented: "Whilst the third quarter from a results standpoint was expected to be our least buoyant quarter in 2006, due to the heavy dry docking schedule, we have managed to strengthen the company's financial structure with cash having increased from $10 million at the end of the second quarter 2006 to $17.5 million at the end of the third quarter 2006. In addition, at the end of the third quarter of 2006 our net debt to capitalization stood at 43% down from 46% at the end of the second quarter. Thus the Company has significant flexibility to continue its fleet expansion if attractive opportunities arise."
At its latest meeting held on the 21st November 2006, the Company's Board of Directors declared a quarterly cash dividend of $0.1875 per common share, payable on the December 5, 2006 to shareholders of record on the December 1, 2006.
This is the fourth consecutive quarterly dividend since the company went public in October 2005 and since then STEALTHGAS has declared quarterly dividends aggregating $0.75 per common share.
The following time charter arrangements have been made since those announced in our latest press release of November 11, 2006.
The "Gas Czar" has extended its existing time charter for one additional year ending November 2007 at the rate of $190,000 per calendar month, if she trades in the Far East, or at the rate of $210,000 per calendar month, if she trades elsewhere.
The "Catterick" has extended its existing time charter for one additional year from January 2007 at the rate of $217,000 per calendar month.