The Greek company StealthGas has recently reached an agreement to purchase four modern LPG carriers worth $254.6 million from companies affiliated with Harry Vafias, the CEO and largest shareholder of the company. This move will lead to a 35% increase in the fleet capacity of the company.
Deal Details
The deal includes two new 40,000 cubic meter vessels named Eco Enchanted (built in 2024) and Eco Merlin (built in 2023), as well as two smaller ships with a capacity of 11,000 cubic meters named Eco Nebula (built in 2026) and Eco Texiana (built in 2025). The larger vessels were constructed in South Korea, while the smaller ships were built in Japan.
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Impact on StealthGas Fleet
This deal, which was approved by a committee of independent members of the StealthGas board, was determined based on independent assessments of the vessels' value at $254.6 million. The contract is also subject to shareholder approval and other customary conditions. If finalized, the number of LPG carriers in StealthGas's fleet will increase from 25 to 29, and the total fleet capacity will reach 387,017 cubic meters.
StealthGas anticipates that these vessels will be delivered without any charter agreements from May to September 2027. To finance this purchase, the company will use its existing liquidity. Company financial documents indicate that cash, cash equivalents, and short-term investments as of November 5, 2023, exceed $270 million. Additionally, the agreement allows for payment to be deferred for up to one year after the contract is signed, interest-free.
This acquisition is considered a key shift in the growth trajectory of StealthGas's fleet. The company had focused more on reducing debt and selling older ships in 2025. Harry Vafias had previously outlined plans to modernize the fleet and enter the market for larger LPG carriers at appropriate times. By the end of 2025, the company will continue its operations with a fully owned fleet and no debt valued at $350 million after three years of debt settlement.
The recent deal will also reduce the average age of the company's LPG fleet from 12.1 to 10.8 years.
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