Good day and welcome to the StealthGas third quarter 2015 results 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.

Good morning, ladies and gentlemen and welcome to our third quarter and nine months 2015 earnings presentation and webcast. This is Harry Vafias, the CEO of the company and joining me today on the call is Finance Officer, Fenia Sakellaris, and Mr. Michael Jolliffe, the Chairman of the company. Before we briefly present our today’s topics of discussion, 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, please take a moment to read our disclaimer on slide two of this presentation. It’s noted that risks are further disclosed in StealthGas’ filing with the Securities and Exchange Commission. Let’s proceed in summarizing today’s agenda. I will begin with an overview of our company’s highlights for the third quarter of this year, then we will discuss our financial performance and provide an update on our LPG market segment. Finally, after a close look at our stock performance, I will share our views on our company’s outlook. I would like to note that all amounts, unless otherwise clarified, are stated in U.S. dollars. Let's move to slide 3 as to summarize our company's key highlights for the period. As an opening statement, I would like to point out that in terms of market condition, the third quarter of ‘15 was quite challenging as freight rates for coastal LPG ships still remained weak and oil price fell from $60 a barrel to approximately $40 a barrel. In spite challenging market conditions, we believe that our company should strongly demonstrating a considerable growth in revenue, preserving technical efficiency and successfully concluding the rigorous capital investment plan for 2015. During Q3, we took delivery of an additional five eco-LPG ships, Eco Galaxy, Eco…

Thank you, Harry and good morning to everyone. Let us move on to slide nine where we see the income statement for the third quarter of ‘15 and the nine months results against the same period of the previous year. Looking at the third quarter results, our voyage revenues came at $35.8 million, marking a considerable increase of 14.6% compared to the same period of ‘14. Indeed, this quarter, in spite rates being close to their all-time low, we managed to increase our fleet utilization, take advantage of our fleet expansion and exploit high opportunities, particularly in the spot market. We must note that since rates have marked a year-on-year decline in excess of 20% in the 3000 and 5000 cbm segments, our revenue increase could have potentially been stronger. Voyage costs amounted to $5.2 million, marking a 30% increase compared to Q3, ‘14 as this quarter, we had 12 vessels operating in the spot market compared to 7 in the same period last year, a 50% increase in spot days and the ballasting of two new buildings from Asia to Europe. Our voyage costs reflect the intensification of our fleet usage as in Q3 ‘15, we achieved a fleet operational utilization of 95%, which is high given the very weak market. In Q3, ‘14, our operational utilization was 88.6%. Net revenues came at $32.5 million. Running costs marked a moderate given our fleet expansion increase of 8.4%. Key drivers of operating costs are the additional six vessels and one vessel coming off bareboat. In terms of cost categories we had an increase of crew cost as a result of our fleet expansion and a slight increase in officers’ wages effected in June ‘15. Store costs also marked an increase due to the initial supply of this quarter’s new delivery…

Let’s proceed now with the market update on slide 13. Domestic usage is the main driver of LPG consumption. Taking into consideration the increased urbanization activity which is primarily led by the rise of the Asian LPG residential usage it is bound to increase in the years to come. Such an element is beneficial to our company because as operators of coastal ships we deliver the products close to the end user. The increased activity in developing areas will increase in turn the volume of our operations. In terms of LPG consumption by countries, the US is currently the largest consumer of LPG accounting for about 20% of global LPG consumption followed by China, India and Japan. Moving to slide 14, LPG demand which will exhibit a growing trend in the years to come will be affected by several factors. The first one is the expansion of the Panama Canal which will primarily affect the ton mile demand for the larger ships. Second is China's demand for LPG as the countries affected by the recent economic slowdown in the opening of several PDH facilities. However, recent economic analysis indicates that China will mark a satisfactory growth in 2016 of 6.2%. In addition, the opening of the PDH plants will negatively affect the demand for propylene, but will positively affect LPG demand. The third factor affecting LPG transportation is the lifting of the Iranian sanctions and the rising demand of LPG exports from the US to Asia. Slide 15 shows the evolution of the LPG charter rates. As evident by the table presented, the small LPG segment has expressed declining rates during the past year. The most affected segment in time has been the 3,500 cubic meters with a year-on-year decline to the order of 24% which is worth noting, however,…

During the third quarter of 2015, our market remained weak. Since June 2015 to-date, the price of oil declined from $60 to around $40 per barrel, a fact which did not help our segment, particularly the spot market activity. Nevertheless, StealthGas continued to implement and refine its strategy. Our performance was strong in terms of operations, but did not produce the desired results in terms of profitability. In more detail, we managed to achieve a 94.4% operational utilization, increased in terms of the previous quarter by 5 percentage points. All vessels in our fleet were utilized to the maximum capacity that the market permitted regardless of age. We concluded with success our expansion plan of 2015 taking on the delivery of five eco-modern LPG vessels within the third quarter reaching a total of 10 new deliveries for the year. In spite of lead times, based on our experienced chartering policy, we managed to fix 90% of our new deliveries on period charters. We continued the implementation of technical and operational management policies being for yet one more quarter efficient as we had only eight days of technical off-hire in a fleet of 55 operating vessels while our daily operational expenses decreased. Our asset base surpassed $1 billion and we maintained a moderate leverage of about 39% in spite of being in a capital intensive phase. Although, we managed to increase our revenues, it is due to the weak rates, particularly in the spot segment that we did not see our potential growth in our bottom line. Rates have decreased on an annual basis by more 20% narrowing profitability margins. We strongly believe that our company is well-managed and well-positioned such that should rates mark even the slightest improvement, this will be automatically reflected in our earnings. In terms of our stock performance, as we trade close to one-third of our NAV, we strongly see that all energy related stocks are driven by oil price fluctuation rather than company fundamentals. In this market environment, we continued a dynamic pace of stock repurchase program having spent about $18 million from December 1, 2014 to-date. Our sentiment for the year is that as scrapping in our segment has increased and as we feel we have reached the bottom of the market, we might see a slight improvement in rates and we are confident and well-positioned to grasp this opportunity to the fullest. 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, and happy Thanksgiving.

Good morning, guys.

Hi, Donald.

So my first question is just around your fleet and incremental growth from here given your current gearing and cash balance. And if you do add additional ships, would there be more of a focus on the small gas carriers or Handy Size?

Thank you, Donald. We are not planning to add any more ships. We are trading at one-third of NAV, thus we will continue the share buyback. We have the Board’s approval to spend up to $30 million. We have spent close to $18 million. I am sure, we will be spending another $12 million on buybacks. But that’s - our first priority is that, and not adding more ships.

Okay, that makes sense. And I guess sort of referring to the share repurchase program, I think that $18 million came pretty much over the last 12 months. Given your current discount to NAV, would we see that the pace of the share repurchase program pickup maybe in H1 ‘16?

To be honest with you, we were looking to spend the money faster, but the volume and the SEC regulations didn’t allow us. Thus again, I cannot know what the volume is going to be next year, but we are always looking for blocks of share. And therefore, if there are more sellers, we will be buying more stock. If there aren’t many sellers, I don’t think we can do much about it.

Makes sense. And then just my last question is around your chartering strategy. I think one of the slides in the back kind of - you highlighted your leverage to 2016, the 2016 rate market, I think you have 48% chartered market exposure. Is there a particular rate maybe for the SGCs where you look at fixing some of your vessels on a longer-term basis?

Obviously, basic shipping economics say that you don’t fix a big chunk of your fleet on long or medium charters at the bottom of the cycle. Thus we will try to refrain from doing exactly that. We will try to play more of the spot market than doing short charters. And obviously, when we see a better market and better rates then we will look at fixing longer. And do not forget that we have many ships that are indeed fixed on longer charters up to 2022, thus securing a very good cash flow for the remaining vessels.

All right. Thanks. That's all my questions.

Give my regards to Michael.

[Operator Instructions] Our next question comes from Charles Rupinski from Seaport Global. Please go ahead.

Hi, Harry.

Hi, Charles.

Just a quick question in general on the market. And I'm not sure how relative this is to your space, but can you talk a little bit about the new building globally for this space, and as particular in terms of the new Tier 3 regulations? And also the ballast water regulations that are coming up that could affect some of the older vessels, is this something that could be possibly a positive on the supply-demand side?

Yes, I mean, Charles, you’re absolutely right. As you know well, these regulations are not yet full in force as you know very well. And we have implemented only water ballast treatment system only in some of our new buildings, because it’s costly modification as you know well, not as costly of course as the bigger sales because the smaller the ship, the smaller the modification. But you’re right, if you have a 20-year-old or 22 or a 24-year-old ship and suddenly you have to fit an equipment, which is $200,000 plus $100,000 or $150,000 of higher plus docking costs, I think you will think twice about it. Therefore, we hope that the regulation comes in force fast so that that helps to push more of the average ships out.

Very well. Thanks for the color. I appreciate it.

Thank you, Charles.

[Operator Instructions] There are no further questions at this time.

We would like to thank everyone for joining us at our conference call today and for your interest and trust in our company. We look forward to having you again at our conference call for our fourth quarter results in February 2016. Thank you.

That will conclude today's conference call. Thank you for your participation ladies and gentlemen. You may now disconnect.