STAINLESS TANKERS (STST) Q3 2024 earnings summary

Executive summary

• Q3 2024 net asset value (NAV) at $7.53 per share, with total NAV return since inception at 76% including dividends; cumulative dividends of $1.04 per share.

• Net profit for Q3 2024 was $4.7M, up from $1.9M in Q3 2023; EBITDA reached $10.2M on net revenue of $17.2M.

• Dividend of $0.275 per share declared for Q3 2024, annualized yield at 22%, payable mid-November.

• Utilization improved to 99% in Q3 2024, up from 91.3% in Q2, due to fewer off-hire days.

• Three dividend distributions totaling $10.1M were made YTD 2024.

Financial highlights

• Q3 2024 EBITDA at $10.2M and net income of $4.7M on revenues just over $17M; operating revenue was $18.2M.

• Net revenue for Q3 was $17.2M, slightly higher than Q2; utilization at 99% due to fewer off-hire days.

• Cash and cash equivalents at quarter end was $3.8M, up from $2.3M at 31 Dec 2023.

• Interest-bearing debt decreased to $77.3M from $84.7M at year-end 2023.

• Fleet market value $35.5M above book value; NAV at $101.7M or $7.53/share.

Outlook and guidance

• Market rates rebounded to over $20,000/day in November after a Q3 dip; December fixings also strong.

• Womar Pool forecasts 2025 pool earnings in the $22,000–$24,000/day range.

• Management expects stable earnings and dividends through 2025.

• Annual fleet growth projected at 2.5% to 2027, below projected demand growth of 3%.

• No events after the reporting period requiring adjustment or disclosure.