STAINLESS TANKERS (STST) Q2 2024 earnings summary

Executive summary

• Net asset value (NAV) for Q2 2024 estimated at $7.59 per share, with a total return since inception of 71% and cumulative dividends of $0.76 per share.

• Q2 2024 EBITDA reached $9.5 million, net income $4.5 million, and revenue $17.1 million, driven by strong pool TCE of $23,800 per day.

• Dividend declared at $0.275 per share, totaling $3.71 million, representing an annualized yield of 22%, payable mid-August.

• Market rates remained firm in Q2 2024, though slightly weakened towards quarter-end due to seasonality; medium-term outlook remains strong.

• Operating revenue for Q2 2024 reached $17.99 million, up from $7.02 million in Q2 2023.

Financial highlights

• Revenue for Q2 2024 increased 12% sequentially to $17.1 million, with net income up 52% to $4.5 million.

• EBITDA for Q2 2024 was $9.5 million, and EBIT was $6.6 million.

• Fleet market value at end of June was $174 million, with NAV at $102.5 million or $7.59 per share.

• Leverage ratio (LTV) improved to 45.5% from 50.3% as fleet value rose.

• Net profit for Q2 2024 was $4.54 million, up from $1.18 million in Q2 2023.

Outlook and guidance

• Medium-term market outlook remains positive, supported by limited orderbook and an aging fleet.

• Management expects earnings and dividends to remain stable in coming quarters.

• Fleet growth projected at -2.5% per annum over the next two years, with demand growth at 3%.

• Contracted lease and service revenue for the next year stands at $885,400, with the same amount for the following two to five years.

• Forecasts for next year anticipate lower freight rates despite tight supply, leading to cautious dividend planning.