Welcome to the StealthGas First Quarter Results 2016 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Harry Vafias, CEO of StealthGas. Please go ahead, sir.

Good morning, ladies and gentlemen, and thank you for dialing into our first quarter 2016 earnings presentation. This is Harry Vafias, CEO of the Company and joining me on the call today is Mr. Michael Jolliffe, the Board Chairman and our Finance Officer, Mrs. Sakellaris, who will discuss our Company's financial performance. Before, we commence our presentation, I would like for all of you to be reminded that we will be discussing forward-looking statements which reflect current views with respect to future events and financial performance. At this stage, if you would all like to take a moment to read our disclaimer on Slide 2. It's noted that risks are further disclosed in StealthGas' filing with the Securities and Exchange Commission. I would also like to note that all amounts quoted, unless otherwise clarified, are implicitly stated in U.S. dollars. So let's us move on to slide 3. So as to summarize our Company's key highlights for the first quarter of 2016. As an opening statement, would like to say that this quarter was quite weak. As freight rates for our segment have remained stable at low levels, while mild weather conditions affected seasonal LPG demand. Nevertheless, our fleet expansion assisted us to achieve a period-on-period increase in vessel calendar days of 16%, while we managed to close the quarter with an operational utilization of 91%. We continued our conservative chartering strategy maintaining, as customary, strong earnings visibility. Most importantly, StealthGas maintains a market leading position in the coastal LPG segment with approximately 20% global market share. Owning a relatively young fleet of 9.3 years in average, with 75% of its fleet below 15 years of age. Proceeding to the financial highlights. In Q1 2016, we recorded revenues of $36.5 million, an increase of approximately $800,000 compared to Q1 2015,…

Thank you, Harry. And good morning to everyone. The first quarter of 2016 did not generate anticipated revenues as markets rates did not show any signs of improvement. Let us move on to Slide 8, where we see the income statement for the first quarter of 2016, against the same period of the previous year. Our voyage revenues came at $36.5 million marking a 2% increase compared to the same period of 2015, mainly due to the net addition of seven new Eco LPG vessels. On a period-on-period basis, rates on all segments of our market have marked decline, fact which undermines on earnings potential. Voyage costs amounted to $4 million, marking a 6.5% decrease compared to Q1 2015. Although this quarter, our spot days increased by almost 60%, the key driver of voyage cost reduction is a significant decline of oil price, also on average we noticed a 30% decline compared to the same period of last year. It is noted that [voyage cost] [ph] account for more than 35% of our voyage expenses. Net revenues, that is revenues after deducting voyage costs came at $32.5 million. Running costs at $14.5 million increased by 24% compared to the same period of last year, given the net addition of seven vessels and two vessels coming off bareboat; one at the end of December and another at the beginning of February, both adding to our operating base. In terms of cost categories, this quarter we did not notice any significant percentage fluctuation when analyzing the total operating costs for the quarter. Meaning that costs were maintained at a rather even level. It's worth to mention, however, that our operating costs were burdened this quarter by an [extraordinary] [ph] item of $170,000 which reclaimed by our Company and then for real terms,…

Let's proceed now to the market update in slide 12. The U.S. LPG production still remains a key driver of LPG supply. Despite low oil prices that had slowdown production in 2015 the average monthly U.S. export volume was 1.7 million metric tons while during Q1 2016 it had increased to 2.1 million metric tons. It's anticipated that the majority of the U.S. LPG exports will still be directed to Asia. In addition, the widening of the Panama Canal estimated to be complete in mid-2016, will ease seaborne trade between U.S. and Asia positively affecting the larger vessels of our market. So as to briefly comment on another market player, we foresee that Iran with the lifting of the sections and numerous energy projects to be developed in the area will start playing a more important role in the LPG segment. Focusing on the demand side, the consumption of LPG in China has grown by almost 50% over the last five years and is expected to grow by further 10% in 2016. This increase is mostly driven by the use of LPG to make propylene as China has built 10 propylene plants over the past two years, six of which are expected to double capacity in the next two years. Slide 13 shows the evolution of the LGP charter rates. As evident by the table presented, the small LPG segment has experienced declining rates during the past year. Compared to Q1 2015, rates have dropped by as much as 10% with the highest rate decline evident in the 5,000 cubic meter segment. It's evident however that the market has remained more or less stable during Q1 2016. In terms of trade for the small pressurized vessels, we noticed in the past quarter, that in the west offshore areas, activity in…

Good evening. Revenue generation and fleet utilization in the first quarter of 2016 was lower than expected due to mild weather conditions, volatility of oil prices, weak freight rates and the slowing down of demolition in the coastal LPG segments. In addition to this, we had two vessels coming off bareboat, one in the fourth quarter of 2015 and one in the first quarter of 2016. That's adding to our operating cost base. We believe that our Company's performance was commendable as we're currently operating in a very weak environment. Our contracted revenues have remained at steady levels close to a $185 million and we had only 12 days of technical off hire excluding three scheduled drydockings that took place this quarter, while our leverage is maintained at low levels close to 40%. In terms of our investment plan, we were happy to announce the financing of our total order book including our last four newbuildings to be delivered within 2017. We have now reached the end of our presentation. And we would like to open the floor for your questions. So, operator, please open the floor. Thank you.

[Operator Instructions]. We will take our first question today from Michael Webber from Wells Fargo. Please go ahead. Your line is now open.

This is Donald McLee on for Michael. My first question is just around your cash flows. Now that the order book is fully financed and there is more certainty around your liquidity needs, how do you intend to prioritize your cash going forward?

There's no question about it, we need to conserve cash. We're in a very difficult market. We don't know how long this market will last for so I think that acquisitions are out of the question unless it's an amazing opportunity. Share buybacks will continue, but at a slower pace again for the same reasons, because cash is king and we need to maintain a very healthy cash balance.

Okay. And I think year-to-date you've purchased about 2 million of shares, how does the --?

No, your numbers are wrong. We've spent $20.5 million to purchase --.

1.2 million, I think actually.

Anyway, we've spent till to today $20.5 million.

Right. So, I was just wondering how, I think you already mentioned that pace would be slower, but how does the year-to-date shrink in the stock effect that as well. Is that just kind of completely eliminated or there still some room for buybacks going forward?

We have another $9 million allowed from the Board to buy back stock.

[Operator Instructions]. We will take our next question today from Patrick Sheffield from Beach Point Capital. Please go ahead. Your line is now open.

Just a couple of follow-ups on comments you made during the call. One was, I thought I heard that the advance payments on new vessels for the duration of 2016 will be funded from balance sheet cash, is that right? So if I look at that slide --.

All our pre-delivery payments for all the newbuildings we've ever built are with Company's cash.

So the $20 million total for Q3 and Q4 is what I see on the slide.

It's on the slide, $28 million we need to pay for 2016 and 2017 in total for all the newbuildings left and $18 million of that million for 2016.

Okay, I thought it was $28.5 million for all new builds going forward would need to come from balance sheet cash, is that right from that bridge that you guys have?

No, sorry. We have a $160 million in committed bank debt. The total remaining payments including the final installments is $185 million. So, the total cash from Company's balance sheet for 2016 and 2017 is $28.5 million.

And what is the split between 2016 and 2017?

I don't have that information in front of me, but it's a very small part in 2016 and the majority is in 2017.

And then another question on Q2, have you any commentary you can have on what you're seeing in rates so far?

Same or worse.

And then as far as debt amortization payments in 2016 and 2017, how much cash you need to spend on that?

I don't have this information, if you want Patrick send me an e-mail and I'll answer it.

We will take our next question today from Bill Caton from First Wilshire Securities. Please go ahead. Your line is now open.

I'm referring to slide 12 regarding the Iranian energy market is about to play a key role in the broader LPG market. Can you just expand a little bit more on what type of impact you'd expect or what exactly that means?

Yes, we have not started to trade in Iran as not all the sanctions have been yet been eliminated, there are still sanctions there. So we have not been trading in Iran, despite the fact there are cargoes there for our ships that would boost our profitability. We think that this – all the sanctions are lifted and we can freely trade in Iran, it would be - it would boost by at least 5% to 10% the rates for our ships; for the ships of course trading in that area obviously.

And I didn't see in the slide presentation, but maybe you normally you don't put in but on the 22,000 semi-refrigerated vessels that you're - that are coming online in 2017, what is the current rate profile going on there? Is it softening or is it a little bit stronger than your smaller ships?

As you know very well, currently in shipping all segments are softening, but obviously the rates for these ships are much, much stronger than the small ships, currently earning around $20,000 to $23,000 a day. But that is just currently, so doesn't make any difference for us because we don't have the ships today, we're going to have them in one year's time.

Well, good job on the quarter, thank you.

[Operator Instructions]

Since there are no more questions, we like to thank you all for joining us at the conference today and for your interest and trust in our Company. We look forward to having you with us again at our next conference call for our second quarter 2016 results in August 16. Actually there is a question I see.

We will take our next question today from George Berman from IFS Securities. Please go ahead. Your line is now open.

Quick question on the opening of the Panama Canal. You mentioned that briefly in your statement with LPG prices very, very low here in United Sates, what kind of impact do you think that might happen and when is the Canal widening actually done and when do you expect to make some shipments?

The widening of the Panama Canal will not affect our size of ships. So, it's [indiscernible] discussion.

Okay, is there any transport going over to Asia from the U.S. now?

With our ships, you're talking about?

Yes.

No, because our ships don't do the long haul voyages as you know, and anyway our ships as you know can pass the Panama Canal now, so even if it gets wider or not, it doesn't make a difference for us, this will affect the much larger ships.

There are no further questions over the phone at this time.

Okay. We would like to thank you for joining us at our conference call today. We look forward to having you with us again at the next conference call for our second quarter results in August. Thank you.