Photo: Illustration; Image Courtesy: StealthGas

StealthGas to Add Two LPG Units to Its Fleet

LPG shipping company StealthGas has reached agreements to expand its fleet with the acquisition of two vessels.

Namely, the company concluded a deal to purchase a new 11,000 cbm pressurized vessel, its largest pressurized ship to-date. The unit is scheduled to be delivered from a Japanese shipyard in 2021.

Additionally, the shipowner, together with its joint venture partner, took delivery of a secondhand 38,000 cbm fully refrigerated LPG ship. The vessel in question is the 2007-built Eco Nebula that is already fixed on a six-month time charter.

With the latest addition, the company’s recently established joint venture scheme now counts five vessels. Four out of the five units are currently on time charter contracts.

The acquisitions marked the company’s expansion into new areas of LPG, according to Michael Jolliffe, StealthGas Chairman, said in the second quarter of 2019 conference call.

“With these deals, our company further strengthens its presence across the LPG size spectrum. We felt the timing was right to diversify our revenue stream, whilst remaining in the LPG segment, in which we have gained significant expertise across the years.

“It is with no doubt that the smaller LPG pressurized market will always remain our core activity, but we felt we should expand our activity especially now that the broader LPG transportation market looks so promising.”

During the second quarter ended June 30, 2019, StealthGas delivered a net loss of USD 0.2 million, compared to a net loss of USD 0.4 million reported in the same period a year earlier.

Revenues for the quarter amounted to USD 34.1 million, decreasing by 21.4% from USD 43.4 million seen in the second quarter of 2018, mainly as a result of the strategic reduction of the company’s owned fleet by ten vessels, one less charter-in vessel and reduced revenue as a result of the weak Asian spot market.