ATHENS, Greece, April 21, 2008 (PRIME NEWSWIRE) -- StealthGas Inc. (Nasdaq:GASS) (the "Company"), a ship owning company serving primarily the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today that it has entered into an agreement to acquire from an unaffiliated entity a resale new build Korean built 47,000 deadweight IMO 3 M.R. type Product Carrier. The purchase price of the vessel is $57.5 million and she will be financed through a combination of bank debt and internally generated cash resources. Upon her expected delivery to the Company in April 2009 she will be deployed on a three-year time charter to a Far Eastern based ship operator at a rate of $22,000 per day.
The Company also announced that it completed on March 19, 2008 the previously announced purchase of the Gas Premiership Japanese built 7,200 cbm Fully Pressurized LPG carrier; she has been deployed on a near four-year time charter to an international gas trader. The time charter rate will increase annually in January 2009 by 4.0%, in January 2010 by 3.8% and in January 2011 by 3.7% respectively.
The Company also announced that it has completed the third of three previously announced sales of Handy Size LPG carriers. The Gas Renovatio was delivered to her new owners on March 19, 2008.
The Company also announced that upon completion of her existing bare boat charter in mid-May the Chiltern will immediately commence a new five-year bare boat charter to a European LPG operator at a rate representing a circa 20% increase over the existing bare boat charter rate.
Commenting on the latest acquisition and re-chartering of the Chiltern, CEO Harry Vafias said, "We are still finding it extremely difficult to acquire either modern second hand or resale new build Handy Size LPG carriers with near term delivery dates, so we have made a further prudent and accretive investment in a brand new high specification Product Carrier with immediate deployment on an attractive time charter when she is delivered to us in April of next year. The lack of readily available LPG tonnage to purchase further emphasizes in our view, that the outlook for our core sector over the coming years is very positive, and therefore owners are not prepared to sell at a time when prospects appear to be so attractive. Therefore, we have, as we indicated we would, deployed a further amount of capital in the Product Carrier sector with a secure and accretive time charter in a market which personally I am quite confident about in terms of its outlook and prospects over the medium term and is allied to some extent with our core LPG sector.
"Finally, we are very pleased also to announce the re-chartering of the Chiltern on a five-year bare boat charter at a rate equating to a near 20% increase over her existing employment. The structure of this type of charter as I have discussed before shields the company from risks, costs and cost increases over the life of the charter, particularly crew costs and crew availability, an issue which is proving to be quite challenging for the maritime industry as a whole at this moment in time."
Fleet Profile and Fleet Deployment:
The tables below show the Company's fleet development and deployment as of today:
LPG Carrier Fleet
Vessel Deliv- Charter
Vessel Size Vessel Year ered Employment Expirat-
(cbm) Type Built To GASS Status ion(1)
--------------- ------- ----- ----- ------ ----------- --------
CURRENT FLEET
Gas Cathar 7,517 F.P. 2001 Oct-05 Time Charter Aug-08
--------------- ------- ----- ----- ------ ----------- --------
Gas Premiership 7,200 F.P. 2001 Mar-08 Time Charter Jan-12
--------------- ------- ----- ----- ------ ----------- --------
Gas Haralambos 7,000 F.P. 2007 Oct-07 Time Charter Oct-09
--------------- ------- ----- ----- ------ ----------- --------
Gas Marathon 6,572 F.P. 1995 Nov-05 Bareboat Oct-09
--------------- ------- ----- ----- ------ ----------- --------
Gas Chios 6,562 F.P. 1991 Oct-05 Time Charter Mar-10
--------------- ------- ----- ----- ------ ----------- --------
Gas Amazon 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 Bareboat Jun-10
--------------- ------- ----- ----- ------ ----------- --------
Lyne (2) 5,014 F.P. 1996 May-06 Bareboat May-09
--------------- ------- ----- ----- ------ ----------- --------
Gas Emperor (3) 5,013 F.P. 1995 Feb-05 Time Charter Jun-08
--------------- ------- ----- ----- ------ ----------- --------
Birgit Kosan 5,012 F.P. 1995 Apr-05 Bareboat Oct-11
--------------- ------- ----- ----- ------ ----------- --------
Catterick 5,001 F.P. 1995 Nov-05 Time Charter Jan-09
--------------- ------- ----- ----- ------ ----------- --------
Sir Ivor (4) 5,000 F.P. 2003 May-06 Bareboat May-09
--------------- ------- ----- ----- ------ ----------- --------
Gas Icon (5) 5,000 F.P. 1994 Jun-07 Time Charter Jul-10
--------------- ------- ----- ----- ------ ----------- --------
Gas Kalogeros
(6) 5,000 F.P. 2007 Jul-07 Time Charter Apr-10
--------------- ------- ----- ----- ------ ----------- --------
Gas Sincerity
(7) 4,123 F.P. 2000 Nov-05 Time Charter Jul-09
--------------- ------- ----- ----- ------ ----------- --------
Gas Spirit (8) 4,112 F.P. 2001 Dec-05 Time Charter Jun-10
--------------- ------- ----- ----- ------ ----------- --------
Gas Zael 4,111 F.P. 2001 Dec-05 Time Charter Mar-09
--------------- ------- ----- ----- ------ ----------- --------
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-09
--------------- ------- ----- ----- ------ ----------- --------
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 Dec-08
--------------- ------- ----- ----- ------ ----------- --------
Gas Sophie 3,500 F.P. 1995 Oct-07 Time Charter Oct-08
--------------- ------- ----- ----- ------ ----------- --------
Gas Legacy (11) 3,500 F.P. 1998 Oct-05 Time Charter Apr-10
--------------- ------- ----- ----- ------ ----------- --------
Gas Fortune 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 (14) 3,434 S.R. 1991 Apr-05 Bareboat Apr-11
--------------- ------- ----- ----- ------ ----------- --------
Chiltern (15) 3,312 F.P. 1997 Jun-07 Bareboat May-13
--------------- ------- ----- ----- ------ ----------- --------
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 Prodigy 3,014 F.P. 1995 Oct-05 Time Charter Dec-08
--------------- ------- ----- ----- ------ ----------- --------
Gas Tiny 1,320 S.R. 1991 Oct-04 Time Charter Oct-09
--------------- ------- ----- ----- ------ ----------- --------
FLEET TOTAL: 160,286
36 VESSELS cbm
---------------------------------------------------------------------
Additional Vessels (with expected delivery date)
---------------------------------------------------------------------
Gas Defiance
(16) 5,000 F.P. 2008 July-08 Time Charter July-09
--------------- ------- ----- ----- ------ ----------- --------
Gas Natalie
(17) 3,213 F.P. 1997 Sept-08 Bareboat Sept-11
--------------- ------- ----- ----- ------ ----------- --------
Gas Shuriken
(18) 5,000 F.P. 2008 Oct-08 Time Charter Oct-10
--------------- ------- ----- ----- ------ ----------- --------
TBN 3,500 F.P. 2009 April-09
--------------- ------- ----- ----- ------ ----------- --------
TBN 3,500 F.P. 2009 June-09
--------------- ------- ----- ----- ------ ----------- --------
TBN 5,000 F.P. 2010 Sept-10
--------------- ------- ----- ----- ------ ----------- --------
TBN 5,000 F.P. 2010 Nov-10
--------------- ------- ----- ----- ------ ----------- --------
TBN 5,000 F.P. 2011 Mar-11
--------------- ------- ----- ----- ------ ----------- --------
TBN 7,500 F.P. 2011 July-11
--------------- ------- ----- ----- ------ ----------- --------
TBN 7,500 F.P. 2011 Dec-11
--------------- ------- ----- ----- ------ ----------- --------
TOTAL LPG
CARRIERS FLEET: 210,499
46 VESSELS cbm
---------------------------------------------------------------------
Product Tanker Fleet
Vessel Deliv- Charter
Vessel Size Vessel Year ered Employment Expirat-
(dwt) Type Built To GASS Status ion(1)
------------- ------- ------- ----- -------- ------------ --------
Navig8
Fidelity 47,000 MR 2008 Jan-08 Bareboat Jan-15
Product
Tanker
------------- ------- ------ ----- -------- ------------ --------
Navig8 Faith 47,000 MR 2008 Feb-08 Bareboat Feb-15
Product
Tanker
------------- ------- ------ ----- -------- ------------ --------
TBN (19) 47,000 MR 2009 April-08 Time Charter April-11
Product
Tanker
------------- ------- ------ ----- -------- ------------ --------
TOTAL MR 141,000
PRODUCT dwt
TANKER FLEET:
3 VESSELS
---------------------------------------------------------------------
Grand Total: 49 Vessels
---------------------------------------------------------------------
* F.P.: Fully-Pressurized
* S.R.: Semi-Refrigerated
* M.R.: Medium Range
(1) Earliest date charters could expire. Most charters include
options to shorten or extend their term.
(2) 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.
(3) Gas Emperor is currently employed under a time charter until
June 2008. Thereafter she will be employed under a new
four-year time charter to a major international gas operator
until June 2012.
(4) 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.
(5) Gas Icon is currently employed under a time charter with an
initial term expiring in July 2008, which has been extended for
two years until July 2010.
(6) Gas Kalogeros is currently employed under a time charter until
May 2008, which has been extended to April 2010.
(7) Gas Sincerity is currently employed under a time charter until
July 2008, which has been extended to July 2009.
(8) Gas Spirit is currently employed under a time charter until
June 2008, which has been extended to June 2010.
(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 until
September 2008, which has been extended until September 2009.
(11) Gas Legacy is currently employed under a time charter until
April 2008, which has been extended for two years until April
2010.
(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's option, the time
charter can be extended for two one-year periods, the first
one to be negotiated in May 2009.
(14) Gas Ice is currently employed under a bareboat charter until
April 2008. Thereafter, she will be employed under a new
three-year bareboat charter, until April 2011.
(15) Chiltern is currently employed under a bareboat charter
until May 2008. Thereafter, she will be employed under a
new five-year bare boat charter until May 2013.
(16) Gas Defiance is expected to be delivered by the end of July
2008 whereupon she will commence a one-year time charter to a
major international gas trader.
(17) Gas Nathalie is expected to be delivered by the end of
September 2008 whereupon she will continue a bareboat
charter for a further three years to a major international LPG
operator. The charterer has an option in September 2009 and
2010 to cancel the existing charter upon the payment of a
cancellation fee in the amount of $336,000, if exercised in
2009, or $180,000, if exercised in 2010.
(18) Gas Shuriken is expected to be delivered by the end of October
2008 whereupon she will commence a two-year time charter to a
major international gas trader.
(19) The to-be-named 47,000 deadweight M.R. type product carrier
is expected to be delivered to the Company in April 2009,
whereupon she will commence a three-year time charter.
About StealthGas Inc.
Headquartered in Athens, Greece, StealthGas Inc. is a ship owning company serving primarily 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 160,286 cubic meters (cbm) and two MR Product Tankers. In addition, the company has also entered into agreements to acquire one second-hand LPG carrier with expected delivery in September 2008; four new resale LPG carriers with expected delivery from July 2008 until June 2009; five new building LPG carriers with expected delivery from September 2010 through December 2011 and one new resale MR Product Carrier with expected delivery in April 2009. Once these acquisitions are completed, StealthGas Inc.'s fleet will be composed of 46 LPG carriers with a total capacity of 210,499 cubic meters (cbm) and 3 MR Product Tankers with a total capacity of 141,000 deadweight tons (dwt). StealthGas Inc.'s shares are listed on the NASDAQ Global Select Market 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 U.S. Securities and Exchange Commission.
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