New Generation of Ships for Stealthgas

Stealthgas INC., a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry, said yesterday that it has acquired four newbuilding LPG vessels as part of its fleet expansion program.

 
The additions to the fleet consist of two 22,000 cbm semi refrigerated eco LPG carriers scheduled to be delivered in the first quarter of 2017 from a Korean yard with owners options for another two vessels.

The company has agreed to cancel two 5,000 cbm pressurized newbuildings under construction in Korea and the company will be refunded all amounts advanced to date for those vessels.

These newbuilding orders will be replaced by a 7,500 cbm pressurized eco LPG carrier scheduled to be delivered in the first quarter of 2016 and a 7,200 cbm pressurized eco LPG carrier scheduled to be delivered in the third quarter of 2016.

Both vessels will be built in Japan.

Under its fleet expansion program the company has agreed to acquire a total of 19 newbuilding LPG carriers, including two LPG carriers, the Eco Stream and the Eco Chios that were delivered on schedule in March 2014 and in May 2014, respectively.

Deposits of $83 million have already been paid for the remaining 17 newbuilding LPG carriers and the company intends to fund the remaining capital expenditure of approximately $308 million through bank finance and available cash.

The company has concluded negotiations with banks for firm commitments to finance 13 of these vessels for an amount up to $171 million, and is in discussions with financial institutions for additional bank finance of approximately $96 million for the remaining vessels including the four newbuilding vessels whose acquisitions were announced yesterday.

“With these additions to the fleet our total asset value will amount to approximately $1.05 billion,” the company said.

Stealthgas has also ensured chartering arrangements for its vessels,  securing additional revenues of approximately $50 million, out of which 85% is generated by the 3,500 cbm LPG carriers, the smallest size vessels in the fleet.

The company said that it now has contracted revenues that amount to approximately $250 million.

CEO Harry Vafias commented:

“We are very excited to announce the ordering of new generation 22,000 cbm semi refrigerated eco LPG carriers in one of the best yards in the world that will complement well our leading pressurized fleet. Moreover the announcement of new employments especially three very long charters, only amplifies our belief that good times are ahead.”

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Press Release; July 18th, 2014