Thank you for standing-by and welcome to the StealthGas Inc. Third Quarter 2011 Results Call. (Operator Instructions) I must advise you that this conference is being recorded today on Wednesday 16th of November 2011. I would now like to hand the conference over to your speaker today, Mr. Harry Vafias. Please go ahead sir.

Thank you and good morning everyone. Welcome to our conference call and webcast to discuss the results for the third quarter 2011. I’m Harry Vafias, the CEO of StealthGas, and I’d like to remind you that we will be discussing forward-looking statements in today’s conference call and presentation. Regarding the Safe Harbor language, I would like to refer you to slide number one of this presentation as well to our press release on our second quarter results. With me today is Konstantinos Sistovaris, our CFO, and if you need any further info on the conference call or the presentation, please contact Konstantinos or myself. Let’s begin from slide number two to review how we are implementing our business strategy now. Our medium-term goal is to renew our fleet with a delivery of five newbuilding gas ships. In the first two quarters of 2011 we took delivery of the first two vessels, the 5,000 CBM Gas Elixir and Gas Cerberus, which we then fixed on long term time charters. We also proceeded with the sale of four older ships, the average age of the four ships sold was 16 years of age, and three were operating in the spot market. Then in the third quarter of September 21 we took delivery of the third newbuilding the Gas Myth which we deployed on a three year time charter to a European oil company. We wish to maintain a strong focus on the operational chart and that is the reason behind the sale of these four older ships. We believe that as we remove older vessel from the fleet and replace them with brand new larger, more efficient and high specification ships the overall performance of the company will improve. We have already seen a healthy interest from charters for using newbuilding vessels…

Thank you Harry. Good morning everybody. So let me continue the presentation with slide number five, the financial highlights for the third quarter of 2011. With an average of 36 vessels owned and operated in the third quarter of 2011, we realized net income of $6.2 million on voyage revenues of $27.5 million. Our net income figure is unusually high because of gain from our derivative instruments that include the interest rate swaps and the currency hedges we had in place in order to pay for the newbuilding vessels. These amounted to $1.2 million gain for the quarter. We also had a $1.5 million noncash gain from the valuation of foreign currency deposits in Yen. We still hold one more foreign currency forward contract to buy Yen that we will execute in December of this year and we expect it to be a profitable one. Beginning 2012 we have no more foreign currency instruments that will affect positively or negatively our results. Excluding the items I just mentioned, our adjusted net income was $2.1 million or $0.10 per share, calculated on an average of 21.1 million shares outstanding compared to $0.04 per share for the same period of last year. We believe this is a more meaningful number for investors to see what level of profits or losses we incur on an operational level from chartering of our vessels. The free cash balance at the end of the quarter was approximately $42.4 million. We also had about $7 million in restricted cash as part of our loan agreement. Our net debt to capitalization stood at 44.3% at the end of the quarter, slightly reduced compared to the previous quarter. We continue to believe that maintaining our leverage at moderate levels is important and believe that when all vessels have been…

Slide 10. In this slide we will show you the one-year time charter rates for our market. The figures are based on independent estimates by Lorentzen & Stemoco. We have updated this slide with last year’s rates, current rates, and future estimates. What you can deduce from the slide is we’ve experiencing in our chartering operations. In this segment, we operate 3,000-8,000 CBM. We have seen a strengthening in the market compared to last year, in the region of between 10% and 20% depending on the size and the area. The only part of the market that did not strengthen year-over-year but not caused (inaudible) is a small summary of the segment. We only own four such vessels since the majority comprises of pressurized ships. Nevertheless it’s encouraging to see that rates in the larger category that are usually much more volatile have been in an upward trajectory and in fact rates have remained high over the past few months. $850,000 per month rates for VLGCs are solid numbers. Although we do not own this type of ships, we provide complementary services as VLGCs mostly trade on long haul routes, for example Middle East to Far East, and we perform the local distribution of the cargos in the Far East, but it does show our increasing volumes of LPG product coming out of the producing countries. We believe that the strengthening in our market has allowed us to conclude charters at elevated levels as previously announced. Our fleet has a staggered employment profile, and as more vessels are coming off charters, we hope to use them at higher rates. We have already seen an improvement in our operational figures and we expect to see more of it in the future. We are now focusing our attention on our two 750,000…

Thank you. We will now begin the question and answer session. (Operator Instructions) Your first question comes from the line of Bruce Berger. Please ask your question.

Hello Harry. I'm somewhat surprised that the EBITDA growth was not a little higher. 3200 CBM ship rates have gone up from what appears to be $8500 a day to $10,000 and yet you are not seeing that translate to the bottom line, but I also see that you’ve said that operating costs have also gone up. So, in your presentation key CE rates have gone up 11%, but the operating costs have gone up 12%. So I was just wondering if you could explain what's going on there?

Very simple, first of all I have to disagree with you. The rates for 3200 CBM vessels have not gone to $10,000 per day, this is the average of the fleet and this includes all sizes between 3000 and 8000. 3,500 CBM vessels which are the smallest that we have, are in the region – in the spot market or one year period in the region of 8.5. The average size of our ships are 5000 CBM which are currently getting something below $10,000 as you said correctly. So that’s point number one. Point number two, the past question, I did not say that in as per our slides and presentation which we obviously get in our site, we had increasing running cost and operational cost in first and second quarter. As you can see the running costs now are getting reduced not increased as you said, are getting lower, and we hope that in the fourth quarter it will be even lower than the third quarter. More ships are going on bare boat. We have a better hold on cost thus the result will be lower cost. Last but not least, a lot of good charters we did in the second and third quarter, as again Konstantinos said, and a lot of newbuildings that we took delivery of are too fresh and therefore we have not seen yet the benefit in the bottom-line. I guess the benefit of all these, I mean the ships going on bare boats, ships getting recharted at high rates and newbuilding deliveries that are starting good long employments. You will see the benefit in the fourth quarter and definitely in the first quarter of 2012.

I was just also wondering if you could comment on the product tanker market as it stands right now, and if you are interested in buying any product tankers given the price weakness and which I think about VLGC?

I will not comment a lot on the chartering market because our ships are fixed and we have rates well above the current market. The other thing I will say about that is that rates for product tankers have not dropped as much as we could tankers, and that answers your question. If we buy something it will definitely not be product tankers because the values have not dropped as much as other types of ships. So I don’t think we are actively looking to buy any product tankers.

Okay, thanks.

(Operator Instructions) Your next question comes from George Berman. Please ask your question. George Berman – JP Turner: Good morning gentlemen. Thanks for taking my call. Quick question, how much is left in terms of cash under your existing buy back program?

Seven million about. George Berman – JP Turner: Seven million?

Yeah. George Berman – JP Turner: Okay. The quarter looks great. The future looks very bright according to your presentation. It seems to me that for some reason you are getting lumped into with all the oil and product tanker market companies who have experienced almost like a complete oblivious market crash. I guess your buying back your own shares shows your commitment to the value, but if this continues for some time are you possibly considering may be taking the company private?

It all depends if we are going to have a Europe in 2012 or not. George Berman – JP Turner: Okay. And the day wages as they roll over are expected to be even higher in the coming years, correct?

That is what we think, yes. George Berman – JP Turner: Okay, good. Look forward to a bright future.

Thank you my friend.

Next question comes from Jeff Geygan. Please ask your question. Jeff Geygan – Milwaukee Private Wealth Management: Good morning Harry and Sistovaris. Regarding Alpine Endurance which comes off contract in July of 2012, there has been quite a bit of speculation among investors that I had spoken to about the value of that and you could relieve some of that uncertainty by giving us a sense of if and/or at what price you think that can re-leased.

The ship becomes open in May not in July. And I'm already looking to fix her out. I have not done anything yet. The product tankers at the moment for period fetching between 13,500 and 14,500 time charter for a couple of years employment. If nothing changes I guess we will fetch something similar. Jeff Geygan – Milwaukee Private Wealth Management: And just to clarify, I'm through your release today which shows charter expiration on that Alpine Endurance is July of 2012, but if it’s May then you may want to update your information.

Thank you we will check it. Jeff Geygan – Milwaukee Private Wealth Management: Number two, with respect to your LPG fleet, it’s my observation you have a number of these vessels on spot market. It seems the smaller and/or older vessels can do end up in spot not completely but as rule. What is your thought with respect to selling some of the older tonnage?

We want to sell the older tonnage that’s a fact. Jeff Geygan – Milwaukee Private Wealth Management: Is there anything in it?

No, as you know as soon as we sell something we announce it. So, any of our older ships can be sold, of course at a decent price. So it all depends if there is buying interest and if there is finance for these new buyers to buy those ships. Jeff Geygan – Milwaukee Private Wealth Management: Very good. With regard to the two new builds, the Husky and the Esco, it seems that your total cost from this is round numbers about $62 million, is that correct?

Slightly below 60. Jeff Geygan – Milwaukee Private Wealth Management: And currently roughly $18.5 million of that is effectively prepaid?

Yeah. Jeff Geygan – Milwaukee Private Wealth Management: I assume you’ll lever those roughly 50:50.

What do you mean 50:50? Jeff Geygan – Milwaukee Private Wealth Management: You will have $30 million in cash equity, $30 million in bank financing against them?

No, we are still generous 70:30. Jeff Geygan – Milwaukee Private Wealth Management: 70:30, so 70 equity or 70 debt?

70 debt. Jeff Geygan – Milwaukee Private Wealth Management: Oh, so you have effectively – all the money that you need to pay is already been prepaid on this with your $18 million?

Of course, we don’t have to pay anything. Jeff Geygan – Milwaukee Private Wealth Management: Yeah, so that means you have $48 million in cash?

We have a lot of cash. Jeff Geygan – Milwaukee Private Wealth Management: And by your own description of book value on a net asset of $14 a share, right?

Yeah. Jeff Geygan – Milwaukee Private Wealth Management: And your stock trade at $4 and you’ve got an $80 some odd million market cap, as a shareholder I only have one question, why aren’t we taking our existing cash and buying back our company?

You mean buying back stock or taking the company private, you mean? Jeff Geygan – Milwaukee Private Wealth Management: Well, I prefer that there are two remaining shareholders, you and me, but I don’t think you need to go private to buy back stock.

We are already buying back stock. If we are going to take the company private it is another discussion. Jeff Geygan – Milwaukee Private Wealth Management: Understood. However, you have substantial amount of free cash flow, half of your stock price in cash and your balance sheet and you are buying in a de minimus amount of stock. I don’t understand that?

Yes, but what happens if Italy goes bankrupt? Jeff Geygan – Milwaukee Private Wealth Management: What does that have to do with your charters?

It has to do with our share price. Jeff Geygan – Milwaukee Private Wealth Management: I'm not a market timer. Your stock is $4.

I think that if Italy goes bankrupt we will go to $2. Jeff Geygan – Milwaukee Private Wealth Management: Are you telling me that if the stock is $2 you are going to be aggressive buyers?

In fact if the company is at $2 I'm going to buy the whole company. I think that covers you. Jeff Geygan – Milwaukee Private Wealth Management: Then to address George Berman - JP Turner’s question earlier you said in response to his question about going private, it depends upon what the Euro looks like in 2012. What do you mean by that?

Didn’t say that Euro, I said that Europe. Jeff Geygan – Milwaukee Private Wealth Management: Oh, I'm sorry, with your accent I didn’t hear that. So it depends upon what Europe is like. What do you mean by that?

If it exists or not exists. Jeff Geygan – Milwaukee Private Wealth Management: Why does that matter Harry, I don’t understand?

I will repeat for once more. If Italy goes bankrupt that does means that a lot of banks will close. That means there is going to be a lot of problems in the U.S. and that means that small cap stocks will become nano caps. I feel that because no one gives us any credit for our good balance sheet, our very conservative approach, our low debt, and our leading position in this healthy segment our share price will fall as well. This is what I believe. I hope I'm wrong, of course because nobody wants Italy to go bankrupt and nobody want the banks in Europe at least to have more problems. Therefore being conservative I think that chances are that this might happen. Jeff Geygan – Milwaukee Private Wealth Management: Well, I agree with all your comments about the quality and value of the company and I comment you and Sistovaris for a job well done in managing this. My last question is to Sistovaris, with regard to a comment you made during the call about your OpEx being a little bit higher than expected, can you expand on that please?

Based on the budgets we are doing, I mean we had about $8.4 million in OpEx. We would expect this to decrease to around $8 million, and although we saw a huge drop from the previous quarter and from the first quarter as well, because we have vessels going on bare boat if you look at the results on a daily basis OpEx is still around the same. So, we would expect a further drop in the next quarter. I mean we hope, at least we are working hard on doing that. Jeff Geygan – Milwaukee Private Wealth Management: And is the (inaudible) OpEx a function of your product mix that is TC versus BV or is there some other fundamental driver that is causing your OpEx to decline?

The majority of it is from vessels going on bare boats where we don’t have obviously to pay for the operating expenses of these ships. Jeff Geygan – Milwaukee Private Wealth Management: But there is a concurrent reduction in revenue when you go to bare boat versus time-charter, right?

Correct. Jeff Geygan – Milwaukee Private Wealth Management: So how was the shareholder where I got this collection of assets, should I think about the deployment and return on investment with the asset given that trying to use the top line is not a good measure because whether your TC or BD is going to affect my top line, so it’s confusing. How do you think about the return on the investment of these assets?

This has more to do with our chartering policies, and we are trying to do the best in terms of chartering. If we can find a long term employment on a bare boat for one of our vessels, I mean obviously we are going to put that vessel on a bare boat, and it’s much safer as well I mean if you think about it. Because we don’t have to pay for the operating expenses, we also don’t have to pay for the dry dock expenses, and we also don’t have any off hires, so we have none of these risks. I don’t know if that covers you. Jeff Geygan – Milwaukee Private Wealth Management: No, I do appreciate it. Thank you for your time and I'm going to jump out of the queue here and give other people a chance to talk, thank you.

Your next question comes from Bruce Berger. Please go ahead.

Yes, Harry, I just wanted to follow-up on your recent comments about anticipating the share price go to $2 a share. I have recently purchased a substantial amount of stock, have a lot of capital tied up, and as Mr. Geygan had said, it’s sort of surprising that you are waiting for Italy to absolve, you think the share price will go to $2. What that means to me as a shareholder is that if the public becomes convinced now that you are going to not buyback shares because you are going to go wait $2, the share price is going to go a lot lower? So it’s like a self fulfilling prophecy. And I just – I'm a little surprised that I just heard that given I have a substantial amount of capital invested in the stock right now. So I was wondering whether you wanted to backtrack or rethink what you just said.

Bruce, listen, I have a lot of money and I made a lot of money because I was always honest and that is to my banks, to my charters, and to my shareholders. So I don’t backtrack in anything because it is what I believe. Obviously I don’t want this to happen because if you lose money I will lose more money than you will. So I hope I'm wrong, but this is what I feel. I'm based in Europe, I read the papers and see what's happening, and unfortunately I'm pessimistic. I'm very optimistic for this business, but I'm very pessimistic about Europe. I appreciate you are a big shareholder in your world but I am a bigger shareholder. So, you know what I mean.

I understand what you are saying. But I guess, well, one of the fears that a shareholder would have is that if the share price goes to $2 a share then you tender for the stock at $4 or $5. I think if the investment community realizes that you are in this for the long run and if it goes to $2 you will take $20 or $30 million and shrink the share price and allow all of the rest of us to participate in the huge upside that we see. That will have a wonderful effect on the share price going forward. Can you give us some assurances that if it goes to $2 you are not going to take it private at $4? But as Jeff is saying, to take $20 million or $30 million and shrink the share price if it’s $2, then that would be exciting for the remaining shareholders.

I have no plans to take the company private. I just gave you my personal view of what I think about Europe. I hope I'm wrong. I'm not the Italian Minister, I'm not the head of the European Central Bank. I just gave you my personal opinion, I hope I'm wrong. Nobody wants this to happen. It will be a huge problem for all the listed companies not only for us, healthy and unhealthy, and I said it because I am always honest I will never trick or think one thing and say another thing. This is not my style. We made money, we are here for long term, all our promises to our shareholders since the IPO are still there intact, and we will continue the same way. If some people don’t like it then of course or they think that the share price will go to $2 they better sell now.

If it’s so I guess what I am hearing from you is that if it goes to $2 a share you will buy back a lot of stock.

I don’t need to comment on my private businesses.

No, I mean there is $40 million in cash, as a shareholder I am hoping that if it’s $2 you will buy back, not take it private, but you will then – if you are anticipating it’s going to $2, so you are not buying back shares at $4…

It’s going to be trading at one eighth of NAV. So, Bruce, you better need to be an Einstein to get to see what you are going to do. Of course we are going to buyback share. We bought back stock at $7 and $5 and $4. If it goes to $2, are we not going to buy back stock? Of course we will.

But you would become much more aggressive obviously?

Yeah, sure. If all other things remain the same, yes.

Okay, thank you.

Thank you.

Your next question comes from George Berman, please ask your question

Hi guys.

What happened, did you forget anything?

No I had to chime in. This conversation is almost ridiculous. A thought from my end. I understand when you went public StealthGas was paying a nice dividend and it could be – because I myself flabbergasted by the low stock price that you had a lot of income oriented investors in the company. With the cash position and stock buyback ongoing would it make sense to we evaluate paying a cash dividend at this point in time. Just to get to say a 4% or 5% dividend yield it wouldn’t take a lot of cash and since you own quite a bit of stock you will get some money back on your investment as well, and it would possibly attract additional shareholders. There are other companies that I have seen that in the 2008-2009 market disaster stopped paying a dividend and since then they have quarter by quarter increased dividend a little bit more, little bit more, and the company’s share price and evaluation has significantly appreciated upon this news.

Since we are trading at a quarter of NAV the last thing on our mind is starting a dividend policy.

Okay, fair enough.

The cash will be used to pay down debt, buy back stock and even on bargains and opportunities may be to expand, that’s it.

That’s what I like to here as a shareholder, thanks.

The next question comes from the line of Jeff Geygan. Jeff Geygan – Milwaukee Private Wealth Management: Gentlemen, just to clarify. I think there are two separate issues. I invest in businesses and it’s my understanding that your business is really renting or leasing these ships to individuals to move LPG around and that the majority of this activity takes place in Asia Pacific.

Two-third is Asia Pacific, one-third Europe. Jeff Geygan – Milwaukee Private Wealth Management: Yeah, all right. So, the event that you are anticipating may occur, some major economic disaster across Europe would only affect the stock price and bank lending, but given that your financing is in place and your fleet is in place, as long as LPG is produced and needs to be shipped it really should have a minimal impact on your business, correct?

That’s a 100% correct. But unfortunately the shareholders don’t get that and when they hear such bad news they sell everything that is my personal experience on that. Jeff Geygan – Milwaukee Private Wealth Management: Yeah, and I appreciate that Harry which makes sense. Back to George Berman - JP Turner’s point, however – and just in consideration, a 10% dividend is $0.40 on – your $20 million outstanding as $8 million, it’s meaningless amount of your cash balance to distribute, and if you wanted to see your shares trade higher I would be willing to bet you a beer that you put a $0.40 dividend and this new stock would be north of $4 pretty quickly, and you haven’t really indicated that you have non-standard uses for that cash. You just said we are going to pay down debt and will look opportunistically to buy other capacity. But in the mean time why not boost the price by paying a dividend?

Because when we were paying the dividend nobody gave – nobody cares about it. Jeff Geygan – Milwaukee Private Wealth Management: The world has changed.

I know that very well and I will think it will change more. So we have to be very conservative. Jeff Geygan – Milwaukee Private Wealth Management: I appreciate that. Okay, thanks guys. Have a good day.

I have no further questions please continue.

We would like to thank everybody for joining us at our conference calls today and for your interest and trust in our company. We will look forward to having you with us at our next conference calls for our fourth quarter results in February 2012. Thank you.

Thank you. That does conclude our conference for today and thank you all for participating, you may now disconnect.