STAINLESS TANKERS (STST) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income rose to $4.4 million, supported by vessel sales and cost control, despite weaker pool rates and lower revenue.

• NAV at Q1 2025 end was $90 million, or $6.67 per share, after cumulative dividends of $1.59 per share; total NAV return since inception is 68%.

• Regular dividend of $0.275 per share and special dividend of $0.225 per share declared, with over $2 per share returned since IPO, representing over 40% of IPO proceeds.

• Q1 2025 profit and comprehensive income rose to $4.37 million from $3.00 million year-over-year.

• Management remains cautiously optimistic for 2025 amid ongoing geopolitical and operational risks.

Financial highlights

• Q1 2025 net revenue was $11.9 million, down from $15.3 million in Q4 2024, mainly due to lower pool earnings and higher off-hire days.

• EBITDA for Q1 2025 was $8.2 million, with operating margin supported by cost control despite lower utilization.

• Free cash balance at quarter end was $3.6 million, fleet book value just under $120 million, and fleet market value at $142 million.

• Net cash from operating activities was $7.19 million, and total assets decreased to $134.84 million.

• LTV ratio improved to 42.8% from 44.2% sequentially.

Outlook and guidance

• Pool rates averaged $17,000/day in Q1, expected to recover to $19,000/day average in 2025 and upwards to $20,000/day later in the year.

• Market fundamentals remain strong, with annual fleet growth just under 3.5% and demand growth around 4% through 2027.

• Geopolitical risks and upcoming dry dockings for over half the fleet are key uncertainties.

• Dividend distributions to continue as return of paid-in capital.

• No significant impact from new or amended accounting standards is expected for 2025 or later.