STEALTHGAS INC. (GASS), a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced yesterday the results of the 2012 annual general meeting of its shareholders held on Monday, October 15, 2012 at the Company's executive offices, updates on charter arrangements and other company news.
At the annual meeting each of the following proposals as set forth in more detail in the Notice and the Company's Proxy Statement were approved and adopted:
1) The re-election of Messrs. Harry N. Vafias and Markos Drakos as Class III Director of the Company to serve until the 2015 annual meeting of shareholders; and
2) The appointment of Deloitte Hadjipavlou Sofianos & Cambanis Certified Auditors Accountants S.A. as the Company's independent auditors for the fiscal year ending December 31, 2012.
Newbuilding Program
The Company has purchased four newbuilding LPG carriers from an affiliated company for just under $100 million en bloc. The vessels are being built in a South Korean yard and are scheduled to be delivered from January to June 2014. The order encompasses four vessels, two 5,000cbm and two 6,500 cbm fully pressurized LPG carriers. The Company has already arranged for bank finance at the time of the vessels deliveries. These state of the art vessels have been designed to provide the industry with an ice-class, fuel-efficient and environment-friendly gas carrier, among other features enabling them to trade more widely.
Chartering Update
The company has concluded the following seven chartering arrangements:
The bareboat hire for both 47,000 dwt, 2008 built, Medium Range Tankers, Navig8 Fidelity and Navig8 Faith has been reduced for one year by approximately 13% and 16% respectively; but the chartering of both vessels has been extended for one more year until January and February 2016. In the last year of the charter the rate will have a floor with a 50/50 profit split for earnings above that level.
The time charter for its 5,000cbm, 1994 built, LPG carrier, Gas Icon, has been extended for two years to a major oil company, until August 2014.
The time charters for both its 3,400cbm, LPG carriers, Gas Ice and Gas Arctic, built in 1991 and 1992 respectively, have been extended for one year, to an international petrochemical company, until January 2014.
The time charter for its 3,200cbm, 1990 built, LPG carrier, Gas Crystal, has been extended for one year, to an international gas trader, until October 2013.
The time charter for its 6,300cbm, 2007 built, LPG carrier, Gas Flawless, has been extended for two months to an international oil trader, until January 2013.
A two months time charter for its 7,200cbm, 2001 built, LPG carrier, Gas Premiership, to an oil company, until December 2012.
With the above charter arrangements the Company will secure additional future revenues of approximately $19 million.
Contracted coverage for the fleet is elevated to 86% for 2012 and 68% for 2013.