StealthGas Inc. © 2007 Page 1 · Page 2 StealthGas Inc. © 2007 Disclaimer Forward-Looking...


Disclaimer

Forward-Looking Statements

This presentation contains forward-looking statements within the meaning of applicable federal securities laws. Such statements are based upon current expectations that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as “may,” “will,” “should,”“estimates,” “predicts,” “potential,” “continue,” “strategy,” “believes,” “anticipates,” “plans,”“expects,” “intends” and similar expressions are intended to identify forward-looking statements. Actual results and the timing of certain events may differ significantly from the results discussed or implied in the forward-looking statements. Among the factors that might cause or contribute to such a discrepancy include, but are not limited to, the risk factors described in the Company’s Registration Statement filed with the Securities and Exchange Commission, particularly those describing variations on charter rates and their effect on the Company’s revenues, net income and profitability as well as the value of the Company’s fleet.


LORENTZEN & STEMOCO ASLORENTZEN & STEMOCO AS

Research for this presentation was provided by:Research for this presentation was provided by:


Vafias Group Vafias Group -- Maritime activities commenced 1972Ranked by number of vessels owned among the top 5 largest shipping groups in GreeceThe Group controls 65 vessels operating in dry, oil and LPG transportation sectors

Brave Maritime Corp. Inc.Established in 1987Specializing in Dry Bulk transportationCurrent fleet 3 vessels, 2 Bulker New Buildings ordered for delivery 200910 New Building Gas vessels ordered for delivery between 2008 and 2010

StealthGas Inc. (Ticker Symbol “GASS”)Established in 2004Successfully listed on Nasdaq October 2005Current fleet 29 vessels, 1 New Building or delivery Q4 072 second hand vessels for delivery in Q3 2007 Largest single owner of Handy Size LPG vessels in the world with 12% marked share

Stealth Maritime Corp. S.AEstablished 1999Currently operates 5 VLCC and Aframax Crude Oil Tankers all on long term charters2 New Building Product Tankers ordered for delivery early 2008

Brave Bulk Transport LTDEstablished in 2003 located in AustraliaLargest worldwide shipper by volume of grain to the Middle East Currently “charters in” 7 Panamax dry bulk vessels


StealthGas Inc.StealthGas Inc.

The No.1 Owner of Handysize LPG Vesselsin the World

You might not have heard of us, we've only been operating sincethe end of 2004. But in that time, we've gone from nothing to being the biggest fleet of Handysize Liquified Petroleum carriers in the world.

With 30 vessels ranging from 1,600 to 7,500 cbm we are able to transport various LPG and petchem gases in our modern fleet with an average age of just 11 years.

StealthGas is listed on the Nasdaq Stock Exchange in New York under the ticker symbol 'GASS' and our IPO was nearly three times oversubscribed.


Why did we invest in this sector?

International seaborne LPG trade is 50 mill tons and will increase to over 70 million tons in 2009

Volatile and unreliable feedstock from Saudi Arabia will be replaced by more reliable LNG derived cargo volumes

Increased export from Middle East and West Africa

Increased demand from US, India and China

Fleet growth will be more than absorbed by fleet replacement and stable demand

Niche Market, we have been able to consolidate sector and derive economies of scale due to 11% market share.

The Outlook for LPG’s


Increased LPG Supplies => Higher Freight RatesExpanding LPG supplies are driven by increased LNG production and crude oil refining

LPG supplies are expected to increase by 50% from the present 50 million tons to 75 million tons by 2010 and then to 85 million tons by 2015Increased LPG supplies have already had a beneficial impact on freight rates and we believe this trend will continue

Source: CMAI, Drewrys, VLO, ESAI, Purvin Gertz, PIRA, Poten & Partners.

0

2

4

6

8

10

12

14

2004 2005E 2006E 2007E 2008E 2009E 2010E

LNG Production

LNG Production

CAGR = 12%

Trill

ion

Cub

ic F

eet


0.0

5.0

10.0

15.0

20.0

25.0

1960 1965 1970 1975 1980 1985 1990 2000

Japanese LPG Consumption

Mill

ion

Tons

Periods of Rapid LPG Demand Growth Duration

14 years so far…

24 years

23 years

20 years

22 years

1977 – 1998Korea

1965 – 1988Japan

1993 -China

1960 – 1980

1950 - 1972

Europe

America

LPG Macro Consumption Trends

0

20

40

60

80

100

Japa

n

Mal

aysi

a

Tai

wai

Kore

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Tha

iland

Phi

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nes

Chi

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Indi

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Wie

tnam

Indo

nesi

a

Pak

ista

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kg per capita

Increasing Urbanization and Rising Living Standards --> Rapid increase in consumptionJapanese LPG consumption steady post-rapid developmentAverage 22 years rapid growth, China should realize another decadeChina Urbanization: 20 Million/p.a., India: Further growth potential

LPG Consumption - Japan Household LPG Usage in Asia


LPGC freight ratesAverage earnings in the spot market excluding waiting time / 1 yr TC rates


Small LPG – Fleet Growth ProfileStealthgas focuses on the Small LPG Segment Small LPG Segment (3000-8000 cbm) has balanced outlook with average fleet growth ahead

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100

200

300

400

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600

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Earn

ings

/TC

rate

s in

USD

100

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/mon

th (l

ines

)

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Fleet growth in %

(bars)

Overall 3000-7999 fleet growth S/R 3000-7999 fleet growth


• Low Net Income breakeven $5,229 per day in 2006 compared to $5,325 in 2005

Cost-Efficient Operations

• Fleet utilization of 98.8 % in 2006

• High quality customer base – low counterparty riskClose Customer Relations

• Paid fourth consecutive dividend of 18.75 cents per share on December 5, 2006 to shareholders of record on December 1, 2006

Pay Dividends

• Doubled Fleet by end of Q1 06

• Tripled fleet (27 vessels) by end of Q2 06

• Currently owns 29 vessels plus one N.B due October

Triple Fleet by mid-2006

• Our fleet average age is 11.2 years

• Industry average age is 17 yearsModern Fleet

ImplementationBusiness Strategy

• 74% of voyage days fixed for FY2007

• 27% of voyage days fixed for FY 2008Visible Revenue Stream

• 2006 Year end net debt to capitalization: 45.6%

• Current net debt to values circa 40%Moderate Leverage

Business Strategy – Since IPO (Oct 05) to Present Day


49 9

2124

27 28 29 30

5

33

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36

Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q1 2007 Q3 2007

Fleet Projected Q3

Grew fleet to 21 vessels by end of 2005

Fleet currently numbers 29 vessels

StealthGas ranks #1 in owned vessels in 3,000 to 8,000 CBM segment

Expected to acquire minimum 3 further ships during 2nd half 2007

Fleet Development

Established October

2004

IPO


Transparent Earnings Outlook


4th Quarter 2006Q4 Net income of $4.8 million, revenues of $20.4 million, EBITDA of $10.2 million

Q4 Net income of $4.8 million before non cash loss on interest rate swaps of $29 thousand

EPS of $0.33 cents per share ($0.34 cents per share before the non cash interest rate swap loss) on 14.4 million shares outstanding

Declared fifth consecutive dividend of 18.75 cents per share since IPO in October 2005

Cash balance of $15.5 million

Conservative leverage: net debt to capitalization of 41.2%

Twelve Months 2006Net income of $ 18.5 million, revenues of $ 73.3 million, EBITDA of $ 36.7 million

EPS of $ 1.31 on 14.2 million average shares outstanding

Total dividend payments of $0.75 per share paid in 2006

Declared divided of $0.1875 per share in Q1 2007

4th Quarter & Twelve Months 2006 Financial Highlights


Daily BreakevenQ4 2006 vs Q3 2006 Daily Cashflow and Net Income Breakeven Composition

($ per vessel per day) Q3 2006 fleet calendar days: 2,576

Q4 2006 fleet calendar days: 2,576

5,5175,6964,9365,221Total

1,40101,3650Depreciation & Amortization

01,58001,650Principal

869869922922Interest

245245245245Maintenance (surveys/drydockings)

889889477477Management Fees, General & Administrative

$2,113$2,113$1,927$1,927Operating

Net IncomeCash FlowNet IncomeCash FlowExpenses

Q4 2006Q3 2006


So Where Do You Go From Here?


StealthGas Inc. – Our Future

SO WHERE DO WE GO FROM HERE?

What are our possible future financing needs and how will we go about securing them?

Principally, to increase growth through the expansion of the Fleet

Strategic acquisition of another company in similar or related sector


StealthGas Inc. – Our Future

To increase our Market Capitalization

To increase our share count and float

To increase the number of analysts covering our stock

To increase our capital base in order to attract flexible and competitive funding options

To increase market share and economies of scale and to further tighten market control in the Handysize sector

WHY?


Contacts

Company Contact:Andrew J. Simmons Visit our Website at:

Chief Financial Officer www.stealthgas.com

StealthGas Inc.

011-30-210-6250-001

E-mail: [email protected]

www.stealthgas.com

Investor Relations/Media:Nicolas Bornozis

Capital Link, Inc.(New York)

Tel. 212-661-7566

E-mail: [email protected]

www.capitallink.com

Weekly LPG Market Report updated every Monday

Comprehensive Investor Relations Information

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