Sponsored Links
F & P
News and Blogs
Total : 21 View more »
NAB okays probe against Forex Cos F.P. Report
c.moreover.com | Nov 14, 2008
LAHORE: National Accountability Bureau (NAB) Thursday gave a go ahead to an inquiry into the allegations regarding illegal business and money laundering against another three forex companies. The Securities and Exchange Commission of Pakistan (SECP) had
DOCSIS 3.0 Update
www.cable360.net | Oct 27, 2008
Cable operators around the world have vetted and deployed channel bonding in pre-standard form for several years. European MSOs announced accelerated EuroDOCSIS 3.0 rollouts in September, around the IBC show. Last week, Comcast announced its shift from trial and limited deployment in the Twin
Towards a Wiki For Formally Verified Mathematics
science.slashdot.org | Sep 30, 2008
Towards a Wiki For Formally Verified Mathematics -- article related to Math, Social Networks, and Science.
http://science.slashdot.org/article.pl?sid=08/09/30/2122205&from=rss
Toxic Fumes From Mac Pros?
apple.slashdot.org | Oct 2, 2008
Fanboi Killa writes "Apple is investigating damning claims, published in a leading French newspaper, that its computers emit a toxic odour containing chemicals including the cancer-causing benzene. Apple has not denied the accusations.
http://apple.slashdot.org/article.pl?sid=08/10/02/1223203&from=rss
Web Sites
Total : 434 View more »
BRASS O Overland SP S Z 8 4 6 6 4 F P NO RESERVE
Description New in box Overland Spokane Seattle & Portland Z8 beautifully factory painted,lit. Test run only. No label upon box,Overland display model. NO RESERVE please click on "view sellers other items" to see all my listings.
http://www.affordablequalitysigns.com/BRASS-O-Overland-SP,i150298016957,c220.html
B&T : Browse Companies
www.bandt.com.au
B&T Today, your daily insight into the world of marketing, advertising, PR and media.
Thinnes, F.P., Götz, H., Kratzin, H.D., Awni, L.A., Babel, D., Barnikol-Watanabe, S., Cole, T.,...
Thinnes, F.P., Götz, H., Kratzin, H.D., Awni, L.A., Babel, D., Barnikol-Watanabe, S., Cole, T., Eben-Brunnen, J., Eckhart, K., Flörke, H., Heiden, M., Hein, A., Jakob, Ch., Jürgens, L., Kayser, H., Kiafard, Z., Morys-Wortmann, C., Reymann, S., Rohm, B., Schwarzer, Ch.
Limited Edition
www.variety.com
Limited Edition is a curious, occasionally engrossing drama highlighted by a memorable performance by Terence Stamp as an emotionally troubled publishing executive. The dialogue jumps back and forth from English to French as the story hops between London and Paris. Restrained tone will also limit
http://www.variety.com/review/VE1117911056.html?categoryid=31&cs=1
News from Zibb.com
Total : 15 View more »
StealthGas Inc. Reports Third Quarter and Nine Months 2008 Results and Announces Quarterly Cash
ATHENS, Greece, Nov 13, 2008 (GlobeNewswire via COMTEX) --
StealthGas Inc. (Nasdaq:GASS), a ship-owning company primarily serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today its unaudited financial and operating results for the third quarter and nine months ended September 30, 2008.
Third Quarter 2008 Results:
For the three months ended September 30, 2008, voyage revenues amounted to $28.9 million and net income was $5.4 million, an increase of $5.7 million, or 24.6%, and an increase of $1.4 million, or 35.0%, respectively, from voyage revenues of $23.2 million and net income of $4.0 million for the three months ended September 30, 2007.
Basic and diluted earnings per share were $0.24 for the three months ended September 30, 2008 as compared to basic and diluted earnings per share of $0.19, for the three months ended September 30, 2007.
Adjusted EBITDA for the three months ended September 30, 2008 was $13.5 million, an increase of $3.8 million, or 39.2% from $9.7 million for the three months ended September 30, 2007. A reconciliation of Adjusted EBITDA to net income and to net cash provided by operating activities is set forth below.
For the three months ended September 30, 2008, the Company had a loss of $2.0 million on interest rate swap arrangements, which was comprised of a $1.0 million realized cash loss and a $1.0 million unrealized non-cash loss, plus approximately $0.6 million of stock-based compensation expense related to restricted share awards granted to the Company's directors and key staff members of its affiliated manager Stealth Maritime Corp. This compares to an approximately $2.8 million non-cash loss for the three months ended September 30, 2007, which was comprised of a $1.8 million unrealized non-cash loss on interest rate swaps and $1.0 million of stock-based compensation expense related to restricted share awards granted to the Company's directors.
Before the non-cash items described above, net income was $7.0 million, or $0.32 per share, for the three months ended September 30, 2008, as compared to $6.7 million, or $0.33 per share, for the three months ended September 30, 2007, an increase of $0.3 million, or 4.5%.
An average of 38.7 vessels were owned by the Company in the three months ended September 30, 2008, earning an average time-charter equivalent rate of approximately $7,681 per day as compared to 35.1 vessels, earning an average time-charter equivalent rate of $6,747 per day for the same period of 2007.
Nine Months 2008 Results
For the nine months ended September 30, 2008, voyage revenues amounted to $84.4 million and net income was $22.2 million, an increase of $20.5 million, or 32.1%, and an increase of $5.9 million, or 36.2%, respectively, from voyage revenues of $63.9 million and net income of $16.3 million for the nine months ended September 30, 2007.
Basic and diluted earnings per share were $1.01 and $1.00, respectively, for the nine months ended September 30, 2008 as compared to basic and diluted earnings per share of $0.99 for the nine months ended September 30, 2007.
Adjusted EBITDA for the nine months ended September 30, 2008 was $45.6 million, an increase of $12.0 million, or 35.7%, from $33.6 million for the nine months ended September 30, 2007. A reconciliation of Adjusted EBITDA to net income and to net cash provided by operating activities is set forth below.
For the nine months ended September 30, 2008, the Company had a loss of $2.5 million on interest rate swap arrangements, which was comprised of a $1.1 million realized cash loss and a $1.4 million unrealized non-cash loss, plus approximately $1.6 million of stock-based compensation expense related to restricted share awards granted to the Company's directors and key staff members of its affiliated manager Stealth Maritime Corp. This compares to an approximately $1.5 million unrealized non-cash loss for the nine months ended September 30, 2007 on interest rate swaps and $1.0 million of stock-based compensation expense related to restricted share awards granted to the Company's directors.
Before the non-cash items described above, net income was $25.2 million, or $1.14 per share, for the nine months ended September 30, 2008 as compared to $18.8 million, or $1.14 per share, for the nine months ended September 30, 2007, an increase of $6.4 million or 34.0%.
CEO Harry Vafias commented:
"As we advised previously the third quarter saw an increase in crewing costs as a result of a wage increase we gave at the beginning of July and these along with an increase in voyage expenses due primarily to an increase in bunker costs have led to a slight decline on a quarter by quarter performance of our business at the operating income level. However, our revenues were in line with expectations and on a year on year basis the Company continues to progress with the significant increases in EBITDA and Net Income as outlined in this earnings release.
At the net income level we have also been adversely effected by a $1.0 million increase in derivative costs as a result of the decline in US$ LIBOR against the fixed rates at which 67% of our current debt is swapped out at. The aggregate interest rate level of our swaps is 4.27% which we believe over time will prove to be a prudent level to have fixed the above mentioned portion of our debt, however, currently due to the very low level of prevailing rates, we are being negatively affected by these previously taken measures.
Overall, due to the underlying nature of the markets we serve and the commodities we carry, we continue to view the future with reasonable confidence, despite the current turmoil in the world economy. I am also pleased to confirm that the valuations of our vessels continue to hold up well and have not experienced the declines seen in other shipping sectors. These factors together with our prudent chartering policy with some 67% of vessels already fixed for 2009 to high class charterers means that we should continue to make steady progress next year, despite the ongoing slowdown and challenges presented by the global economy."
CFO Andrew Simmons said:
"We are pleased to say that despite the problems in the banking sector we have continued to receive good support from both our existing and new banks in the recent weeks and that the vast majority of our vessels to be delivered in the future have committed credit facilities that will be used to fund part of their purchase price upon delivery to us. Although the terms of some of these facilities are somewhat less favourable than the terms available to us in the recent past, including increases in margin and fees. We are pleased nevertheless with the levels of support we continue to receive from our lending institutions, at a time when there has been a significant decline in the provision of credit to the shipping sector generally."
Quarterly Dividend:
At today's meeting, the Company's Board of Directors declared a quarterly cash dividend of $0.1875 per common share, payable on December 1, 2008 to shareholders of record on November 24, 2008.
This is the twelfth consecutive quarterly dividend since the company went public in October 2005. Since then, the Company has declared quarterly dividends aggregating $2.25 per common share.
Fleet Profile and Fleet Deployment:
The tables below show the Company's fleet development and deployment as of today:
LPG Carrier Fleet
------------------------ ---------------------------------------------
Vessel Charter
Vessel Size Vessel Year Delivered Employment Expiration
(cbm) Type Built To GASS Status (1)
----------------------------------------------------------------------
CURRENT FLEET
---------------------------------------------------------------------
Gas Cathar 7,517 F.P. 2001 Oct-05 Time Charter Sep-09
---------------------------------------------------------------------
Gas Premiership 7,200 F.P. 2001 Mar-08 Time Charter Jan-12
---------------------------------------------------------------------
Gas Haralambos 7,000 F.P. 2007 Oct-07 Time Charter Oct-09
---------------------------------------------------------------------
Gas Marathon 6,572 F.P. 1995 Nov-05 Bareboat Oct-09
---------------------------------------------------------------------
Gas Chios 6,562 F.P. 1991 Oct-05 Time Charter Mar-10
---------------------------------------------------------------------
Gas Amazon(2) 6,526 F.P. 1992 May-05 Spot --
---------------------------------------------------------------------
Gas Flawless 6,300 F.P. 2007 Feb-07 Time Charter Feb-09
---------------------------------------------------------------------
Gas Monarch 5,018 F.P. 1997 Dec-05 Bareboat Jun-10
---------------------------------------------------------------------
Lyne(3) 5,014 F.P. 1996 May-06 Bareboat May-09
---------------------------------------------------------------------
Gas Emperor 5,013 F.P. 1995 Feb-05 Time Charter Jun-12
---------------------------------------------------------------------
Birgit Kosan 5,012 F.P. 1995 Apr-05 Bareboat Oct-11
---------------------------------------------------------------------
Catterick 5,001 F.P. 1995 Nov-05 Time Charter Jan-09
---------------------------------------------------------------------
Sir Ivor(4) 5,000 F.P. 2003 May-06 Bareboat May-09
---------------------------------------------------------------------
Gas Icon 5,000 F.P. 1994 Jun-07 Time Charter Jul-10
---------------------------------------------------------------------
Gas Kalogeros 5,000 F.P. 2007 Jul-07 Time Charter Apr-10
---------------------------------------------------------------------
Gas Defiance 5,000 F.P. 2008 July-08 Time Charter Jul-09
---------------------------------------------------------------------
Gas Shuriken 5,000 F.P. 2008 Oct-08 Time Charter Oct-10
---------------------------------------------------------------------
Gas Sincerity 4,123 F.P. 2000 Nov-05 Time Charter Jul-09
---------------------------------------------------------------------
Gas Spirit 4,112 F.P. 2001 Dec-05 Time Charter Jun-10
---------------------------------------------------------------------
Gas Zael 4,111 F.P. 2001 Dec-05 Time Charter Mar-09
---------------------------------------------------------------------
Gas Courchevel 4,109 S.R. 1991 Nov-04 Spot --
---------------------------------------------------------------------
Gas Prophet(5) 3,556 F.P. 1996 Oct-04 Bareboat Sep-09
---------------------------------------------------------------------
Gas Shanghai 3,526 F.P. 1999 Dec-04 Time Charter Sep-09
---------------------------------------------------------------------
Sea Bird II 3,518 F.P. 1996 May-07 Bareboat May-09
---------------------------------------------------------------------
Gas Evoluzione 3,517 F.P. 1996 Jul-07 Time Charter Aug-09
---------------------------------------------------------------------
Gas Czar 3,510 F.P. 1995 Feb-06 Time Charter Dec-08
---------------------------------------------------------------------
Gas Sophie 3,500 F.P. 1995 Oct-07 Spot --
---------------------------------------------------------------------
Gas Legacy 3,500 F.P. 1998 Oct-05 Time Charter Apr-10
---------------------------------------------------------------------
Gas Fortune 3,500 F.P. 1995 Feb-06 Time Charter Dec-08
---------------------------------------------------------------------
Gas Eternity(6) 3,500 F.P. 1998 Mar-06 Bareboat Apr-10
---------------------------------------------------------------------
Gas Sikousis(7) 3,500 F.P. 2006 Aug-07 Time Charter May-09
---------------------------------------------------------------------
Gas Artic 3,434 S.R. 1992 Apr-05 Bareboat Apr-09
---------------------------------------------------------------------
Gas Ice 3,434 S.R. 1991 Apr-05 Bareboat Apr-11
---------------------------------------------------------------------
Chiltern 3,312 F.P. 1997 Jun-07 Bareboat May-13
---------------------------------------------------------------------
Gas Pasha 3,244 F.P. 1995 Jun-06 Time Charter Sep-10
---------------------------------------------------------------------
Gas Crystal 3,211 S.R. 1990 Nov-05 Spot --
---------------------------------------------------------------------
Gas Prodigy 3,014 F.P. 1995 Oct-05 Time Charter Dec-08
---------------------------------------------------------------------
Gas Tiny 1,320 S.R. 1991 Oct-04 Time Charter Oct-09
---------------------------------------------------------------------
FLEET TOTAL: 170,286
38 VESSELS cbm
---------------------------------------------------------------------
Additional Vessels (with expected delivery date)
---------------------------------------------------------------------
Gas Natalie(8) 3,213 F.P. 1997 Dec-08 Bareboat Sep-11
---------------------------------------------------------------------
Gas Astrid 3,500 F.P. 2009 Mar-09 Spot
---------------------------------------------------------------------
Gas Exelero 3,500 F.P. 2009 May-09 Spot
---------------------------------------------------------------------
TBN 5,000 F.P. 2010 Sept-10
---------------------------------------------------------------------
TBN 5,000 F.P. 2010 Nov-10
---------------------------------------------------------------------
TBN 5,000 F.P. 2011 Mar-11
---------------------------------------------------------------------
TBN 7,500 F.P. 2011 July-11
---------------------------------------------------------------------
TBN 7,500 F.P. 2011 Dec-11
---------------------------------------------------------------------
TOTAL LPG
CARRIERS
FLEET: 210,499
46 VESSELS cbm
---------------------------------------------------------------------
Product Tanker Fleet
---------------------------------------------------------------------
Vessel Charter
Vessel Size Vessel Year Delivered Employment Expiration
(dwt) Type Built To GASS Status (1)
----------------------------------------------------------------------
MR
Navig8 Fidelity 47,000 Product 2008 Jan-08 Bareboat Jan-15
Tanker
---------------------------------------------------------------------
MR
Navig8 Faith 47,000 Product 2008 Feb-08 Bareboat Feb-15
Tanker
---------------------------------------------------------------------
MR
Stealth S.V.(9) 47,000 Product 2009 Apr-09 Time Charter Apr-12
Tanker
---------------------------------------------------------------------
MR
Stealth 50,500 Product 2009 Nov-09 Bareboat Nov-12
Argentina(10) Tanker
---------------------------------------------------------------------
TOTAL MR
PRODUCT TANKER 191,500
FLEET: dwt
4 VESSELS
---------------------------------------------------------------------
Suezmax Tanker Fleet
---------------------------------------------------------------------
Vessel Charter
Vessel Size Vessel Year Delivered Employment Expiration
(dwt) Type Built To GASS Status (1)
----------------------------------------------------------------------
TBN(11) 156,000 SM Oil 2011 April-11
Tanker
---------------------------------------------------------------------
TBN(12) 156,000 SM Oil 2011 July-11
Tanker
---------------------------------------------------------------------
TOTAL SM
TANKER FLEET: 312,000
2 VESSELS dwt
---------------------------------------------------------------------
Grand Total: 52 Vessels.
---------------------------------------------------------------------
* F.P.: Fully-Pressurized
* S.R.: Semi-Refrigerated
* M.R.: Medium Range
* S.M.: Suez Max
(1) Earliest date charters could expire. Most charters include
options to shorten or extend their term.
(2) Gas Amazon has been sold to an unaffiliated entity for delivery
in November 2008.
(3) Lyne is employed under a bareboat charter until May 2009.
Thereafter, at the charterer's option, the bareboat charter can
be extended for an additional year.
(4) Sir Ivor is employed under a bareboat charter until May 2009.
Thereafter, at the charter's option, the bareboat charter can be
extended for an additional year.
(5) Gas Prophet has for the three year duration of bareboat charter
been renamed the M.T. Ming Long.
(6) Gas Eternity has for the duration of bareboat charter been
renamed the M.T. Yu Tian 9.
(7) Gas Sikousis is currently employed under a time charter until May
2009. Thereafter, at the charterer's option, the time charter can
be extended for two one-year periods, the first one to be
negotiated in May 2009.
(8) Gas Natalie is expected to be delivered in December 2008,
whereupon she will continue a bareboat charter for a further
three years to a major international LPG operator. The charterer
has an option in September 2009 and 2010 to cancel the existing
charter upon the payment of a cancellation fee in the amount of
$336,000, if exercised in 2009, or $180,000, if exercised in
2010.
(9) The Stealth S.V., a 47,000 deadweight M.R. type product carrier,
is expected to be delivered to the Company in April 2009,
whereupon she will commence a three year time charter.
(10) The Stealth Argentina, a 50,500 deadweight M.R. type product
carrier, is expected to be delivered to the Company in November
2009, whereupon she will commence a three year bareboat charter.
(11) The to be named 156,000 deadweight Suezmax oil tanker is expected
to be delivered to the Company in April 2011.
(12) The to be named 156,000 deadweight Suezmax oil tanker is expected
to be delivered to the Company in July 2011.
About StealthGas Inc.
Headquartered in Athens, Greece, StealthGas Inc. is a ship-owning company serving primarily the liquefied petroleum gas (LPG) sector of the international shipping industry. StealthGas Inc. currently has a fleet of 38 LPG carriers with a total capacity of 170,286 cubic meters (cbm) and two M.R. Product Tankers. In addition, the company has also entered into agreements to acquire one second hand and two resale newbuilding LPG carriers with expected deliveries in December 2008, March 2009 and May 2009, five new building LPG carriers with expected delivery from September 2010 through December 2011, two resale newbuilding M.R. Product Carrier with expected deliveries in April and November 2009 and a contract to construct two 156,000 deadweight Suezmax tankers with deliveries scheduled for April and July 2011. The company has also entered into an agreement to sell the Gas Amazon with delivery to her new owners scheduled for November 2008. Once these acquisitions and disposal are completed, StealthGas Inc.'s fleet will be composed of 45 LPG carriers with a total capacity of 203,973 cubic meters (cbm), four M.R. Product Tankers with a total capacity of 191,500 deadweight tons (dwt) and two Suezmax tankers with a deadweight of 312,000 tons (dwt). StealthGas Inc.'s shares are listed on the NASDAQ Global Select Market and trade under the symbol "GASS."
Forward-Looking Statements
Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although StealthGas Inc. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, StealthGas Inc. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charterhire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydocking, changes in StealthGas Inc.'s operating expenses, including bunker prices, dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.
Risks and uncertainties are further described in reports filed by StealthGas Inc. with the U.S. Securities and Exchange Commission.
Visit our website at www.stealthgas.com
Fleet Data:
The following key indicators highlight the Company's operating performance during the third quarters ended September 30, 2007 and September 30, 2008.
FLEET DATA Q3 2007 Q3 2008 ---------------------------------------------------------------- Average number of vessels (1) 35.1 38.7 ---------------------------------------------------------------- Period end number of vessels in fleet 36.0 39.0 ---------------------------------------------------------------- Total calendar days for fleet (2) 3,231 3,557 ---------------------------------------------------------------- Total voyage days for fleet (3) 3,213 3,550 ---------------------------------------------------------------- Fleet utilization (4) 99.4% 99.8% ---------------------------------------------------------------- Total charter days for fleet (5) 2,952 3,334 ---------------------------------------------------------------- Total spot market days for fleet (6) 261 216 ---------------------------------------------------------------- AVERAGE DAILY RESULTS Q3 2007 Q3 2008 ---------------------------------------------------------------- Time Charter Equivalent - TCE (7) $ 6,747 $ 7,681 ---------------------------------------------------------------- Vessel operating expenses (8) 2,046 2,469 ---------------------------------------------------------------- Management fees 341 326 ---------------------------------------------------------------- General and administrative expenses 588 470 ---------------------------------------------------------------- Total operating expenses (9) 2,634 2,939 ---------------------------------------------------------------- The following key indicators highlight the Company's operating performance during the nine months ended September 30, 2007 and September 30, 2008. FLEET DATA 9M 2007 9M 2008 ---------------------------------------------------------------- Average number of vessels (1) 31.3 38.2 ---------------------------------------------------------------- Period end number of vessels in fleet 36 39 ---------------------------------------------------------------- Total calendar days for fleet (2) 8,533 10,466 ---------------------------------------------------------------- Total voyage days for fleet (3) 8,467 10,396 ---------------------------------------------------------------- Fleet utilization (4) 99.2% 99.3% ---------------------------------------------------------------- Total charter days for fleet (5) 7,932 10,061 ---------------------------------------------------------------- Total spot market days for fleet (6) 535 335 ---------------------------------------------------------------- AVERAGE DAILY RESULTS 9M 2007 9M 2008 ---------------------------------------------------------------- Time Charter Equivalent - TCE (7) $ 7,095 $ 7,747 ---------------------------------------------------------------- Vessel operating expenses (8) 2,045 2,289 ---------------------------------------------------------------- Management fees 345 327 ---------------------------------------------------------------- General and administrative expenses 421 491 ---------------------------------------------------------------- Total operating expenses (9) 2,466 2,780 ---------------------------------------------------------------- 1) Average number of vessels is the number of vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period. 2) Total calendar days are the total days the vessels were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys. 3) Total voyage days for fleet reflect the total days the vessels were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys. 4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period. 5) Total time charter days for fleet are the number of voyage days the vessels in our fleet operated on time charters for the relevant period. 6) Total spot market charter days for fleet are the number of voyage days the vessels in our fleet operated on spot market charters for the relevant period. 7) Time charter equivalent, or TCE, is a measure of the average daily revenue performance of a vessel on a per voyage basis. Our method of calculating TCE is consistent with industry standards and is determined by dividing voyage revenues (net of voyage expenses) by voyage days for the relevant time period. Voyage expenses primarily consist of port, canal and fuel costs that are unique to a particular voyage, which would otherwise be paid by the charterer under a time charter contract, as well as commissions. TCE is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., spot charters, time charters and bareboat charters) under which the vessels may be employed between the periods. 8) Vessel operating expenses, which include crew costs, provisions, deck and engine stores, lubricating oil, insurance, maintenance and repairs, is calculated by dividing vessel operating expenses by fleet calendar days for the relevant time period. 9) Total operating expenses, or TOE, is a measurement of our total expenses associated with operating our vessels. TOE is the sum of vessel operating expenses and general and administrative expenses. Daily TOE is calculated by dividing TOE by fleet calendar days for the relevant time period.
Adjusted EBITDA Reconciliation:
Adjusted EBITDA represents net earnings before interest, taxes, depreciation, amortization and amortization of fair value of acquired time charters. Adjusted EBITDA does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by the United States generally accepted accounting principles, and our calculation of Adjusted EBITDA may not be comparable to that reported by other companies in the shipping or other industries.
Adjusted EBITDA is included herein because it is a basis upon which we assess our financial performance and liquidity position and because we believe that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness.
Adjusted EBITDA reconciliation for the third quarters ended September 30, 2007 and September 30, 2008:
(figures in US $) Q3 2007 Q3 2008 ---------------------------------------------------------------------- Net Cash Provided By Operating Activities $ 3,587,979 $ 14,904,923 ---------------------------------------------------------------------- Net increase / (decrease) in current assets, excluding cash 806,125 (408,016) ---------------------------------------------------------------------- Net (increase) in current liabilities, excluding short-term portion of long term debt (6,321,081) (1,796,255) ---------------------------------------------------------------------- Interest income (831,801) (65,551) ---------------------------------------------------------------------- Interest and finance costs, net 2,538,701 2,361,087 ---------------------------------------------------------------------- Amortization of finance fees (19,776) (31,429) ---------------------------------------------------------------------- Share based compensation (990,380) (559,973) ---------------------------------------------------------------------- Change in fair value of derivatives (1,751,915) (898,584) ---------------------------------------------------------------------- Adjusted EBITDA $ 9,660,014 $ 13,506,202 ---------------------------------------------------------------------- (figures in US $) Q3 2007 Q3 2008 ---------------------------------------------------------------------- Net Income $ 4,000,186 $ 5,368,857 ---------------------------------------------------------------------- Plus interest and finance costs 2,538,701 2,361,087 ---------------------------------------------------------------------- Less Interest income (831,801) (65,551) ---------------------------------------------------------------------- Plus Depreciation 4,468,629 5,976,036 ---------------------------------------------------------------------- Plus Amortization of fair value of acquired time charters (515,701) (134,227) ---------------------------------------------------------------------- Adjusted EBITDA $ 9,660,014 $ 13,506,202 ---------------------------------------------------------------------- Adjusted EBITDA reconciliation for the nine months ended September 30, 2007 and September 30, 2008: (figures in US $) 9M 2007 9M 2008 ---------------------------------------------------------------------- Net Cash Provided By Operating Activities $ 28,258,498 $ 36,984,814 ---------------------------------------------------------------------- Net increase in current assets, excluding cash 602,191 457,162 ---------------------------------------------------------------------- Net decrease in current liabilities, excluding short-term portion of long term debt 1,076,988 2,519,238 ---------------------------------------------------------------------- Gain on sale of vessels -- 1,673,321 ---------------------------------------------------------------------- Interest income (1,203,329) (457,612) ---------------------------------------------------------------------- Interest and finance costs 7,408,536 7,581,916 ---------------------------------------------------------------------- Amortization of finance fees (58,033) (84,797) ---------------------------------------------------------------------- Share based compensation (990,380) (1,614,511) ---------------------------------------------------------------------- Change in fair value of derivatives (1,450,339) (1,440,120) ---------------------------------------------------------------------- Adjusted EBITDA $ 33,644,132 $ 45,619,411 ---------------------------------------------------------------------- (figures in US $) 9M 2007 9M 2008 ---------------------------------------------------------------------- Net Income $ 16,311,665 $ 22,238,075 ---------------------------------------------------------------------- Plus interest and finance costs 7,408,536 7,581,916 ---------------------------------------------------------------------- Less Interest income (1,203,329) (457,612) ---------------------------------------------------------------------- Plus depreciation 11,932,622 17,128,670 ---------------------------------------------------------------------- Plus Amortization of fair value of acquired time charters (805,362) (871,638) ---------------------------------------------------------------------- Adjusted EBITDA $ 33,644,132 $ 45,619,411 ----------------------------------------------------------------------
Conference Call details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1866 388 1925 (U.S. Toll Free Dial In) or 0800 358 7034 (UK Toll Free Dial In).
In case of any problems with the above numbers, please dial +1 703 621 9128 (U.S. Toll Dial In), or +44 (0)208 609 1270 (Standard International Dial In). Please quote "STEALTHGAS."
A telephonic replay of the conference call will be available until November 20, 2008 by dialing 1866 676 5865 (U.S. Toll Free Dial In), 0800 358 2189 (UK Toll Free Dial In) or +44 (0)20 8609 0289 (Standard International Dial In). Access Code: 237812 #
Slides and audio webcast:
There will also be a live -- and then archived webcast of the conference call, through the StealthGas Inc. website (www.stealthgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
StealthGas Inc.
Unaudited Condensed Statements of Income
(Expressed in United States Dollars)
---------------------------------------------------------------------
Three Months Ended
September 30,
2007 2008
---------------------------------------------------------------------
Revenues
Voyage revenues $ 23,241,691 $ 28,895,043
---------------------------------------------------------------------
Expenses
Voyage expenses 1,564,081 1,626,513
Vessels' operating expenses 6,610,468 8,782,014
Dry-docking costs 116,793 43,401
Management fees 1,102,860 1,161,250
General and administrative expenses 1,900,331 1,672,909
Depreciation 4,468,629 5,976,036
---------------------------------------------------------------------
Total expenses 15,763,162 19,262,123
---------------------------------------------------------------------
Income from operations $ 7,478,529 $ 9,632,920
---------------------------------------------------------------------
Other income and (expenses)
Interest and finance costs (2,538,701) (2,361,087)
Change in fair value of derivatives (1,751,915) (1,956,211)
Interest income 831,801 65,551
Foreign exchange loss (19,528) (12,316)
---------------------------------------------------------------------
Other income, net (3,478,343) (4,264,063)
---------------------------------------------------------------------
Net income $ 4,000,186 $ 5,368,857
---------------------------------------------------------------------
Earnings per share
- Basic $ 0.19 $ 0.24
============ ============
- Diluted $ 0.19 $ 0.24
============ ============
-Cash dividends declared $ 0.1875 $ 0.1875
============ ============
Weighted average number of shares
-Basic 20,574,635 22,114,105
============ ============
-Diluted 20,633,070 22,233,081
============ ============
StealthGas Inc.
Unaudited Condensed Statements of Income
(Expressed in United States Dollars)
---------------------------------------------------------------------
Nine Months Ended September 30,
2007 2008
---------------------------------------------------------------------
Revenues
Voyage revenues $63,865,847 $84,389,367
---------------------------------------------------------------------
Expenses
Voyage expenses 3,797,673 3,850,401
Vessels' operating expenses 17,449,230 23,961,148
Dry-docking costs 116,793 510,832
Management fees 2,943,710 3,419,065
General and administrative expenses 3,596,361 5,133,658
Depreciation 11,932,622 17,128,670
Net gain on sale of vessels -- (1,673,321)
---------------------------------------------------------------------
Total expenses 39,836,389 52,330,453
---------------------------------------------------------------------
Income from operations $24,029,458 $32,058,914
---------------------------------------------------------------------
Other income and (expenses)
Interest and finance costs (7,408,536) (7,581,916)
Change in fair value of derivatives (1,450,339) (2,497,747)
Interest income 1,203,329 457,612
Foreign exchange loss (62,247) (198,788)
---------------------------------------------------------------------
Other expenses, net (7,717,793) (9,820,839)
---------------------------------------------------------------------
Net income $16,311,665 $22,238,075
---------------------------------------------------------------------
Earnings per share
- Basic $0.99 $1.01
=========== ===========
- Diluted $0.99 $1.00
=========== ===========
-Cash dividends declared $0.5625 $0.5625
=========== ===========
Weighted average number of shares
-Basic 16,480,829 22,114,105
=========== ===========
-Diluted 16,500,522 22,194,740
=========== ===========
StealthGas Inc.
Unaudited Condensed Consolidated Balance Sheets
(Expressed in United States Dollars)
---------------------------------------------------------------------
December 31, September 30,
---------------------------
2007 2008
---------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $33,114,872 $16,497,995
Trade receivables 2,349,275 2,188,730
Claim receivable 46,070 49,593
Inventories 836,365 1,363,119
Advances and prepayments 212,919 300,349
Restricted cash 7,727,272 2,863,070
Vessels held for sale 25,210,568 7,822,247
---------------------------------------------------------------------
Total current assets 69,497,341 31,085,103
---------------------------------------------------------------------
Non current assets
Advances for vessel acquisitions 12,450,000 11,500,000
Advances for vessels under construction -- 11,393,343
Vessels, net 395,095,322 527,768,200
Restricted cash 200,000 600,000
Deferred finance charges, net of
accumulated amortization of $162,132 and
$246,929 350,663 511,541
Fair value of derivatives -- 1,490,445
---------------------------------------------------------------------
Total non current assets 408,095,985 553,263,529
---------------------------------------------------------------------
Total assets $477,593,326 $584,348,632
---------------------------------------------------------------------
Liabilities and Stockholders' Equity
Current liabilities
Payable to related party 7,846,691 4,146,519
Trade accounts payable 3,406,421 3,643,187
Other accrued liabilities 3,928,028 5,127,465
Deferred income 3,972,370 3,717,101
Current portion of long-term debt 14,719,156 20,928,137
Current portion of long-term debt
associated with vessel held for sale 3,500,000 4,724,371
---------------------------------------------------------------------
Total current liabilities 37,372,666 42,286,780
---------------------------------------------------------------------
Non current liabilities
Fair value of derivatives 3,288,989 4,586,600
Customer deposits 5,174,093 4,867,321
Fair value of below market acquired time
charter 1,187,417 315,779
Long-term debt 127,539,373 216,320,385
---------------------------------------------------------------------
Total non current liabilities 137,189,872 226,090,085
---------------------------------------------------------------------
Total liabilities $174,562,538 $268,376,865
---------------------------------------------------------------------
Commitments and contingencies -- --
---------------------------------------------------------------------
Stockholders' equity
Capital stock
5,000,000 preferred shares authorized
and zero outstanding with a par value
of $0.01 per share
100,000,000 common shares authorized
14,400,000 and 22,310,110 shares issued
and outstanding with a par value of
$0.01 per share 222,841 223,101
Additional paid-in capital 281,612,867 283,227,118
Retained earnings 21,650,412 31,343,926
Accumulated other comprehensive
(loss)/income (455,332) 1,177,622
---------------------------------------------------------------------
Total stockholders' equity $303,030,788 $315,971,767
---------------------------------------------------------------------
Total liabilities and stockholders'
equity $477,593,326 $584,348,632
---------------------------------------------------------------------
StealthGas Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(Expressed in United States Dollars)
---------------------------------------------------------------------
Nine Months Ended September 30,
2007 2008
---------------------------------------------------------------------
Cash flows from operating activities
Net income for the period $ 16,311,665 $ 22,238,075
Items included in net income not
affecting cash flows:
Depreciation and amortization 11,990,655 17,213,467
Amortization of fair value of
time charter (805,362) (871,638)
Share based compensation 990,380 1,614,511
Change in fair value of derivatives 1,450,339 1,440,120
Gain on sale of vessels -- (1,673,321)
Changes in operating asset
and liabilities:
(Increase)/decrease in
Trade receivables (453,740) 160,545
Claims receivable (12,450) (3,523)
Inventories (209,937) (526,754)
Advances and prepayments 73,936 (87,430)
Increase/(decrease) in
Payable to related party (1,076,762) (3,700,172)
Trade accounts payable 1,356,248 236,766
Other accrued liabilities (1,227,700) 1,199,437
Deferred income (128,774) (255,269)
---------------------------------------------------------------------
Net cash provided by operating
activities $ 28,258,498 $ 36,984,814
---------------------------------------------------------------------
Cash flows from investing activities
Insurance proceeds 269,893 --
Advances for vessel acquisitions (1,700,000) (11,500,000)
Advances for vessel under construction -- (11,393,343)
Proceeds from sale of vessels, net -- 26,883,889
Acquisition of vessels (104,186,223) (145,173,795)
(Increase)/decrease in restricted
cash account (483,683) 4,464,202
---------------------------------------------------------------------
Net cash (used in) investing activities $(106,100,013) $(136,719,047)
---------------------------------------------------------------------
Cash flows from financing activities
Capital stock 76,601 --
Follow-on offering 129,600,000 --
Underwriters' over allotment
option exercised 8,281,890 --
Stock Issuance costs (8,172,803) --
Dividends paid (9,536,270) (12,544,561)
Deferred finance charges (145,795) (245,675)
Customer deposits 1,984,385 (306,772)
Loan repayment (41,483,885) (19,530,636)
Proceeds from short-term
bridge facility 26,500,000 --
Proceeds from long-term debt 27,067,500 115,745,000
---------------------------------------------------------------------
Net cash provided by financing
activities $ 134,171,623 $ 83,117,356
---------------------------------------------------------------------
Net increase/(decrease) in cash and
cash equivalents 56,330,108 (16,616,877)
Cash and cash equivalents
at beginning of period 11,146,871 33,114,872
---------------------------------------------------------------------
Cash and cash equivalents at
end of period $ 67,476,979 $ 16,497,995
---------------------------------------------------------------------
Supplemental Cash Flow Information:
Cash paid during the period
for interest $ 7,840,223 $ 8,875,987
============= =============
Non cash items:
Fair value of below market acquired
time charter $ 1,572,000 --
============= =============
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: StealthGas Inc.
StealthGas Inc.
Andrew J. Simmons, Chief Financial Officer
011-30-210-6250-001
simmons@stealthgas.com
Tags: accounting acquisition argentina business carrier ceo conference construction contract currency debt dividend dividends earnings ebitda economy employment equity finance foreign exchange gasoline greece insurance market nasdaq oil petroleum policy politics prices rates revenue securities shanghai ship shipping standards trade united states
Companies: StealthGas Inc (GASS)
StealthGas Inc. Announces Agreement to Construct Four New 156,000 Deadweight Suezmax Tankers -
ATHENS, Greece, Sep 11, 2008 (GlobeNewswire via COMTEX) --
StealthGas Inc. (Nasdaq:GASS) (the "Company"), a ship owning company serving primarily the liquified petroleum gas (LPG) sector of the international shipping industry, announced today that it has ordered two new 156,000 deadweight Suezmax crude Oil Tankers with an option to order two additional such vessels. Delivery of the first vessel is expected in May-July 2011 and delivery of the second vessel in July-September 2011. If the Company exercises its option to construct the third and the fourth vessels, these will be delivered in the first and second quarters of 2012.
The Company has also entered into an agreement to acquire from an unaffiliated entity its fourth new resale 50,500 deadweight M.R. type Product Carrier to be delivered in November 2009. Upon her delivery to the Company, she will be named the "Stealth Argentina" and will be deployed upon a three year bareboat charter to a far eastern shipping entity.
The aggregate cost of the five vessels detailed above, which assumes the option on the two additional vessels is exercised, is circa U.S.$403 million.
On August 1, 2008, the Company announced that it completed its previously announced purchase of the Gas Defiance, a 2008 Japanese newly built 5,000 cbm Fully Pressurized LPG carrier, which has been deployed on a one year time charter to an international gas trader. The Company also announced that it has entered into a Memorandum of Agreement to sell the Gas Amazon, a 6,526 cbm Fully Pressurized 1992 built LPG carrier, for U.S.$11.0 million to an unaffiliated entity for delivery in November 2008.
The Company also announced the following new charter arrangements.
The Gas Evoluzione extended its existing time charter in July 2008 for one year to an oil major at a rate representing a circa 13% increase over the previous time charter rate.
In September 2008, the Gas Cathar will commence a new one year time charter to an oil refiner at a rate representing a circa 30% increase over the existing time charter rate.
The current time charter on the Gas Tiny has been mutually terminated with its charterer effective October 2008 and upon her redelivery she will immediately commence a new two year time charter at her existing rate to a European oil company.
The Gas Czar and the Gas Fortune, upon the expiry of their current time charters in December 2008, will both commence five year bareboat charters to a European gas owner and operator. The two new charter arrangements represent an average increase of circa 20% on a time charter equivalent (TCE) basis over the prevailing rates currently being earned by these two vessels.
Commenting on the acquisitions, sale, the strategic move into the Suezmax sector and the new charter arrangements CEO Harry Vafias said:
As I discussed on August 19th we have decided to acquire our fourth new M.R. Type Product Carrier for delivery towards the end of 2009, and already she is fixed on a three year bareboat arrangement, thus continuing our policy of having the vast majority of our fleet always under period employment.
We have decided after lengthy study to strategically enter into the transportation of crude oil by ordering two, and optioning two, brand new 156,000 deadweight Suezmax Tankers. We believe the outlook for these vessels at the time of their expected delivery as detailed above is very positive. I am pleased to say that despite the current difficult conditions within the banking sector that our bankers, both existing and new, have supported us willingly in regard to these new investments with well structured and competitively priced facilities.
Finally, in regard to sale and purchase, I am pleased to report the sale of the Gas Amazon, one of our older vessels, which will not only provide the Company with an attractive profit in November this year, which we will quantify upon her delivery, but will also free up cash resources, reduce somewhat our debt and help in keeping the average age of our fleet well below the industry average.
I am also pleased to announce the details of five new charters on our LPG vessels, which have been contracted at attractive rates. Two are one year time charters, one is a two year time charter and the other two are five year bare boat arrangements. The one year time charters as stated above evidence good increases over the prevailing rates on those vessels, while the bareboat charters are not only at higher levels on a TCE basis compared to their current charter rates, but they provide us with medium term secure employment on these two ships, without the Company being exposed in particular to crew and maintenance expenses over the next five years. The new charter arrangement for the Gas Tiny, our smallest ship presents us with some different challenges in terms of her employment, while at the same rate as her current charter, does now mean that the vessel has secure employment for the next two years. We believe that all these new charter arrangements will be accretive to our earnings over the next twelve months and beyond.
Finally, the announcements we have made today are a further step in the evolution of our company, which in less than three years since going public has grown from nine to fifty three ships (including all new buildings). Not only have we fully delivered upon the strategic plan we laid out in October 2005, but we continue to build upon the solid base provided by our business.
Fleet Profile and Fleet Deployment:
The table below show the Company's fleet development and deployment as
of today:
Vessel Vessel Vessel Year Delivered Employment Charter
Size Type Built To GASS Status Expir-
(cbm) tion (1)
--------------- ----- ----- ----- ------ ------------ ------
CURRENT FLEET
Gas Cathar 7,517 F.P. 2001 Oct-05 Time Charter Sep-09
--------------- ----- ----- ----- ------ ------------ ------
Gas Premiership 7,200 F.P. 2001 Mar-08 Time Charter Jan-12
--------------- ----- ----- ----- ------ ------------ ------
Gas Haralambos 7,000 F.P. 2007 Oct-07 Time Charter Oct-09
--------------- ----- ----- ----- ------ ------------ ------
Gas Marathon 6,572 F.P. 1995 Nov-05 Bareboat Oct-09
--------------- ----- ----- ----- ------ ------------ ------
Gas Chios 6,562 F.P. 1991 Oct-05 Time Charter Mar-10
--------------- ----- ----- ----- ------ ------------ ------
Gas Amazon (2) 6,526 F.P. 1992 May-05 Time Charter Nov-08
--------------- ----- ----- ----- ------ ------------ ------
Gas Flawless 6,300 F.P. 2007 Feb-07 Time Charter Feb-09
--------------- ----- ----- ----- ------ ------------ ------
Gas Monarch 5,018 F.P. 1997 Dec-05 Bareboat Jun-10
--------------- ----- ----- ----- ------ ------------ ------
Lyne (3) 5,014 F.P. 1996 May-06 Bareboat May-09
--------------- ----- ----- ----- ------ ------------ ------
Gas Emperor 5,013 F.P. 1995 Feb-05 Time Charter Jun-12
--------------- ----- ----- ----- ------ ------------ ------
Birgit Kosan 5,012 F.P. 1995 Apr-05 Bareboat Oct-11
--------------- ----- ----- ----- ------ ------------ ------
Catterick 5,001 F.P. 1995 Nov-05 Time Charter Jan-09
--------------- ----- ----- ----- ------ ------------ ------
Sir Ivor (4) 5,000 F.P. 2003 May-06 Bareboat May-09
--------------- ----- ----- ----- ------ ------------ ------
Gas Icon 5,000 F.P. 1994 Jun-07 Time Charter Jul-10
--------------- ----- ----- ----- ------ ------------ ------
Gas Kalogeros 5,000 F.P. 2007 Jul-07 Time Charter Apr-10
--------------- ----- ----- ----- ------ ------------ ------
Gas Defiance 5,000 F.P. 2008 Jul-08 Time Charter Jul-09
--------------- ----- ----- ----- ------ ------------ ------
Gas Sincerity 4,123 F.P. 2000 Nov-05 Time Charter Jul-09
--------------- ----- ----- ----- ------ ------------ ------
Gas Spirit 4,112 F.P. 2001 Dec-05 Time Charter Jun-10
--------------- ----- ----- ----- ------ ------------ ------
Gas Zael 4,111 F.P. 2001 Dec-05 Time Charter Mar-09
--------------- ----- ----- ----- ------ ------------ ------
Gas Courchevel 4,109 S.R. 1991 Nov-04 Spot --
--------------- ----- ----- ----- ------ ------------ ------
Gas Prophet (5) 3,556 F.P. 1996 Oct-04 Bareboat Sep-09
--------------- ----- ----- ----- ------ ------------ ------
Gas Shanghai (6) 3,526 F.P. 1999 Dec-04 Time Charter Sep-09
--------------- ----- ----- ----- ------ ------------ ------
Sea Bird II 3,518 F.P. 1996 May-07 Bareboat May-09
--------------- ----- ----- ----- ------ ------------ ------
Gas Evoluzione 3,517 F.P. 1996 Jul-07 Time Charter Aug-09
--------------- ----- ----- ----- ------ ------------ ------
Gas Czar (7) 3,510 F.P. 1995 Feb-06 Time Charter Dec-08
--------------- ----- ----- ----- ------ ------------ ------
Gas Sophie 3,500 F.P. 1995 Oct-07 Time Charter Oct-08
--------------- ----- ----- ----- ------ ------------ ------
Gas Legacy 3,500 F.P. 1998 Oct-05 Time Charter Apr-10
--------------- ----- ----- ----- ------ ------------ ------
Gas Fortune (8) 3,500 F.P. 1995 Feb-06 Time Charter Dec-08
--------------- ----- ----- ----- ------ ------------ ------
Gas Eternity (9) 3,500 F.P. 1998 Mar-06 Bareboat Apr-10
--------------- ----- ----- ----- ------ ------------ ------
Gas Sikousis
(10) 3,500 F.P. 2006 Aug-07 Time Charter May-09
--------------- ----- ----- ----- ------ ------------ ------
Gas Artic 3,434 S.R. 1992 Apr-05 Bareboat Apr-09
--------------- ----- ----- ----- ------ ------------ ------
Gas Ice 3,434 S.R. 1991 Apr-05 Bareboat Apr-11
--------------- ----- ----- ----- ------ ------------ ------
Chiltern 3,312 F.P. 1997 Jun-07 Bareboat May-13
--------------- ----- ----- ----- ------ ------------ ------
Gas Pasha 3,244 F.P. 1995 Jun-06 Bareboat --
--------------- ----- ----- ----- ------ ------------ ------
Gas Crystal 3,211 S.R. 1990 Nov-05 Time Charter --
--------------- ----- ----- ----- ------ ------------ ------
Gas Prodigy 3,014 F.P. 1995 Oct-05 Time Charter Dec-08
--------------- ----- ----- ----- ------ ------------ ------
Gas Tiny 1,320 S.R. 1991 Oct-04 Time Charter Oct-10
--------------- ----- ----- ----- ------ ------------ ------
FLEET TOTAL: 165,286
37 VESSELS cbm
----------------------------------------------------------------------
Additional Vessels (with expected delivery date)
----------------- ---------------------------------------------------
Gas Natalie (11) 3,213 F.P. 1997 Oct-08 Bareboat Sep-11
--------------- ----- ----- ----- ------ ------------ -------
Gas Shuriken
(12) 5,000 F.P. 2008 Oct-08 Time Charter Oct-10
--------------- ----- ----- ----- ------ ------------ -------
TBN 3,500 F.P. 2009 Apr-09
--------------- ----- ----- ----- ------
TBN 3,500 F.P. 2009 June-09
--------------- ----- ----- ----- ------
TBN 5,000 F.P. 2010 Sept-10
--------------- ----- ----- ----- ------
TBN 5,000 F.P. 2010 Nov-10
--------------- ----- ----- ----- ------
TBN 5,000 F.P. 2011 Mar-11
--------------- ----- ----- ----- ------
TBN 7,500 F.P. 2011 July-11
--------------- ----- ----- ----- ------
TBN 7,500 F.P. 2011 Dec-11
--------------- ----- ----- ----- ------
TOTAL LPG C
ARRIERS FLEET: 210,499
46 VESSELS cbm
----------------------------------------------------------------------
Product Tanker Fleet
Vessel Vessel Vessel Year Delivered Employment Charter
Size Type Built To GASS Status Expiration
(dwt) (1)
----------------------------------------------------------------------
Navig8 MR
Fidelity 47,000 Product 2008 Jan-08 Bareboat Jan-15
Tanker
--------- ------ ------- ----- ------ --------- --------
Navig8 MR
Faith 47,000 Product 2008 Feb-08 Bareboat Feb-15
Tanker
--------- ------ ------- ----- ------ --------- --------
Stealth MR
S.V.(13) 46,000 Product 2009 Apr-09 Time Charter Apr-12
Tanker
--------- ------ ------- ----- ------ --------- --------
Stealth
Argen- MR
tina(14) 50,500 Product 2009 Nov-09 Bareboat Nov-12
Tanker
--------- ------ ------- ----- ------ --------- --------
TOTAL MR
PRODUCT
TANKER
FLEET: 190,500
4 VESSELS dwt
----------------------------------------------------------------------
Suezmax Tanker Fleet
Vessel Vessel Vessel Year Delivered Employment Charter
Size Type Built To GASS Status Expiration
(dwt) (1)
----------------------------------------------------------------------
TBN(15) 156,000 SM Oil 2011 April-11
Tanker
------- ------- ------ ---- --------
TBN(16) 156,000 SM Oil 2011 July-11
Tanker
------- ------- ------ ---- --------
TBN*(17) 156,000 SM Oil 2011 Jan-12
Tanker
------- ------- ------ ---- --------
TBN*(18) 156,000 SM Oil 2012 Apr-12
Tanker
------- ------- ------ ---- --------
TOTAL
SM TANKER
FLEET:
4 VESSELS 624,000
dwt
----------------------------------------------------------------------
Grand Total: (*assuming options exercised) 54 Vessels.
----------------------------------------------------------------------
-- F.P.: Fully-Pressurized
-- S.R.: Semi-Refrigerated
-- M.R.: Medium Range
-- S.M.: Suez Max
(1) Earliest date charters could expire. Most charters
include options to shorten or extend their term.
(2) Gas Amazon has been sold to an unaffiliated entity
for delivery in November 2008.
(3) Lyne is employed under a bareboat charter until May
2009. Thereafter, at the charterer's option, the
bareboat charter can be extended for an additional
year.
(4) Sir Ivor is employed under a bareboat charter until May
2009. Thereafter, at the charter's option, the bareboat
charter can be extended for an additional year.
(5) Gas Prophet has for the three year duration of bareboat
charter been renamed the M.T. Ming Long.
(6) Gas Shanghai is currently employed under a time charter
until September 2008, which has been extended until
September 2009.
(7) Gas Czar upon the completion of her current time
charter in December 2008 will commence a five year
bareboat charter.
(8) Gas Fortune upon the completion of her current time
charter in December 2008 will commence a five year bare
boat charter.
(9) Gas Eternity has for the duration of bareboat charter
been renamed the M.T. Yu Tian 9.
(10) Gas Sikousis is currently employed under a time charter
until May 2009. Thereafter, at the charterer's option,
the time charter can be extended for two one-year
periods, the first one to be negotiated in May 2009.
(11) Gas Natalie is expected to be delivered in October
2008, whereupon she will continue a bareboat
charter for a further three years to a major
international LPG operator. The charterer has an
option in September 2009 and 2010 to cancel the
existing charter upon the payment of a
cancellation fee in the amount of $336,000, if
exercised in 2009, or $180,000, if exercised in
2010.
(12) Gas Shuriken is expected to be delivered by the
end of October 2008 whereupon she will commence a
two year time charter to a major international gas
trader.
(13) The Stealth S.V., a 46,000 deadweight M.R. type
product carrier, is expected to be delivered to
the Company in April 2009, whereupon she will
commence a three year time charter.
(14) The Stealth Argentina, a 50,500 deadweight M.R.
type product carrier, is expected to be delivered
to the Company in November 2009, whereupon she
will commence a three year bareboat charter.
(15) The to be named 156,000 deadweight Suezmax oil
tanker is expected to be delivered to the Company
in April 2011.
(16) The to be named 156,000 deadweight Suezmax oil
tanker is expected to be delivered to the Company
in July 2011.
(17) The Company has an option to order an additional
156,000 deadweight Suezmax oil tanker, which if
exercised, delivery is expected to be in the first
quarter of 2012.
(18) The Company has an option to order an additional
156,000 deadweight Suezmax oil tanker, which if
exercised, delivery is expected to be in the
second quarter 2012.
About StealthGas Inc.
Headquartered in Athens, Greece, StealthGas Inc. is a ship-owning company serving primarily the liquefied petroleum gas (LPG) sector of the international shipping industry. StealthGas Inc. currently has a fleet of 37 LPG carriers with a total capacity of 165,286 cubic meters (cbm) and two M.R. Product Tankers. In addition, the company has also entered into agreements to acquire one second-hand LPG carrier with expected delivery in September 2008; three resale new building LPG carriers with expected delivery from October 2008 until June 2009; five new building LPG carriers with expected delivery from September 2010 through December 2011, two resale new building M.R. Product Carriers with expected delivery in April and November 2009. The Company has also entered into agreements to construct in China two 156,000 deadweight Suezmax oil tankers for delivery in April and July 2011, respectively, plus it has an option to construct two additional such vessels for delivery in the first and second quarters of 2012. The Company has also contracted to sell one LPG carrier, the Gas Amazon, with delivery to its new owner scheduled for November 2008. Once these firm acquisitions and the sale are completed, StealthGas Inc.'s fleet will be composed of 45 LPG carriers with a total capacity of 203,973 cubic meters (cbm), four M.R. Product Tankers with a total capacity of 190,500 deadweight tons (dwt) and two Suezmax Oil Tankers with a total capacity of 312,000 deadweight tons (dwt). StealthGas Inc.'s shares are listed on the NASDAQ Global Select Market and trade under the symbol "GASS".
Forward-Looking Statement
Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although StealthGas Inc. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, StealthGas Inc. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled dry dockings, changes in StealthGas Inc.'s operating expenses, including bunker prices, dry-docking and insurance costs, or actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, potential disruption of shipping routes due to accidents and political events or acts by terrorists.
Risks and uncertainties are further described in reports filed by StealthGas Inc. with the U.S. Securities and Exchange Commission.
Visit our website at www.stealthgas.com
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: StealthGas Inc.
StealthGas Inc.
Andrew J. Simmons, Chief Financial Officer
011-30-210-6250-001
simmons@stealthgas.com
Tags: acquisition argentina business carrier ceo china crude oil currency debt earnings employment gasoline greece insurance japan market nasdaq oil petroleum policy politics prices profit rates securities shanghai ship shipping trade
Companies: StealthGas Inc (GASS)
Federal Motor Vehicle Safety Standards; Motorcycle Brake Systems - Zibb.com
Sep 17, 2008 (FIND, Inc. via COMTEX) --
SUMMARY: We are proposing to amend the Federal motor vehicle safety standard on motorcycle brake systems, in order to add and update requirements and test procedures and to harmonize with a global technical regulation for motorcycle brakes. If adopted, today's proposal would specify an additional dry brake test procedure to test each service brake control individually and with the motorcycle in the fully loaded condition, provide a new test procedure for assessing performance of motorcycle brakes from high speeds, provide a new wet brake test that better simulates in-service conditions, provide an improved test procedure for evaluating heat fade, add test procedures and performance requirements for antilock brake systems, if fitted, and add a power-assisted braking system failure test, if equipped.
EFFECTIVE DATE: Comment closing date: You should submit your comments early enough to ensure that Document Management receives them not later than November 17, 2008.
ADDRESSES: You may submit comments, identified by the docket number in the heading of this document, by any of the following methods:
. Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the online instructions for submitting comments.
. Mail: Docket Management Facility, U.S. Department of Transportation, 1200 New Jersey Avenue, SE., West Building Ground Floor, Room W12-140, Washington, DC 20590-0001.
. Hand Delivery: 1200 New Jersey Avenue, SE., West Building Ground Floor, Room W12-140, between 9 a.m. and 5 p.m. ET, Monday through Friday, except Federal holidays.
. Fax: 202-493-2251.
Instructions: All submissions must include the agency name and docket number or Regulatory Identification Number (RIN) for this rulemaking. Note that all comments received will be posted without change to http://www.regulations.gov, including any personal information provided. Please see the discussion of the Privacy Act below. For detailed instructions on submitting comments and additional information on the rulemaking process, see the Public Participation heading of the Supplementary Information section of this document.
Privacy Act: Anyone is able to search the electronic form of all comments received into any of our dockets by the name of the individual submitting the comment (or signing the comment, if submitted on behalf of an association, business, labor union, etc.). You may review DOT's complete Privacy Act Statement in the Federal Register published on April 11, 2000 (65 FR 19477-78) or you may visit http://DocketInfo.dot.gov.
Docket: For access to the docket to read background documents or comments received, go to http://www.regulations.gov, or the street address listed above. Follow the online instructions for accessing the dockets.
FOR FURTHER INFORMATION CONTACT:
For technical issues: Mr. George Soodoo, Division Chief, Vehicle Dynamics (NVS-122), Office of Crash Avoidance Standards (E-mail: george.soodoo@dot.gov) (Telephone: (202) 366-2720) (Fax: (202) 366-5930) or Mr. Ezana Wondimneh, Division Chief, International Policy and Harmonization (NVS-133), Office of International Policy, Fuel Economy and Consumer Programs (E-mail: ezana.wondimneh@dot.gov) (Telephone: (202) 366-0846) (Fax: (202) 493-2290).
For legal issues: Ms. Sarah Alves, Office of the Chief Counsel (NCC-112) (E-mail: sarah.alves@dot.gov) (Telephone: (202) 366-2992) (Fax: (202) 366- 3820).
You may send mail to these officials at National Highway Traffic Safety Administration, 1200 New Jersey Avenue, SE., Washington, DC 20590.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Executive Summary
II. Background
III. Current Requirements of FMVSS No. 122
IV. Harmonization Efforts
V. Proposed Improvements to FMVSS No. 122
A. General
1. New Terminology
a. Motorcycle Categories
b. Measurement of Deceleration and Stopping Distance
2. Motorcycle Test Speed and Corrected Stopping Distance
3. Test Method To Measure Peak Braking Coefficient
4. Test Sequence
5. Brake Application Force Measurement
6. Brake Temperature Measurement
7. Burnishing Procedure
8. Notice of Wear
B. Specific Performance Tests
1. Dry Stop Test--Single Brake Control Actuated
2. Dry Stop Test--All Service Brake Controls Actuated
3. High-Speed Test
4. Wet Brake Test
5. Heat Fade Test
6. Parking Brake System Test
7. Antilock Brake System (ABS) Performance Test
a. ABS Performance Test--Stopping Performance Requirement
b. ABS Performance Test--Low-Friction to High-Friction Surface Transition Stop
8. Partial Failure Test--Split Service Brake System
9. Power-Assisted Braking System Failure Test
C. Summary of Improvements
VI. Costs, Benefits, and the Proposed Compliance Date
VII. Differences Between the GTR and the NPRM
VIII. Regulatory Analyses and Notices
IX. Public Participation
I. Executive Summary
Currently, motorcycle brake systems must comply with a series of performance requirements established in Federal Motor Vehicle Safety Standard (FMVSS) No. 122, Motorcycle Brake Systems, in the early 1970s. While the motorcycle brake performance requirements have ensured a minimum level of braking performance, they have not kept pace with the advancement of modern technologies. The National Highway Traffic Safety Administration (NHTSA) seeks to keep its standards up to date. This document proposes to update FMVSS No. 122 based on the Motorcycle Brake Systems Global Technical Regulation (GTR), which reflects the capabilities of current technologies. Updating the standard to reflect modern technologies would help prevent the introduction of unsafe motorcycle brake systems on the road. Moreover, benefits from harmonization including decreased testing costs and ease of market entry would accrue to current and new manufacturers, and would in turn get passed on to consumers. While there is not necessarily any quantifiable safety benefit for this proposal since virtually all motorcycles sold in the U.S. can currently meet the proposed requirements, the agency is planning on taking several other actions to decrease motorcycle fatalities. *1
*1 See U.S. Department of Transportation, "Action Plan to Reduce Motorcycle Fatalities," at 8 (October 2007), available at http://www.nhtsa.gov/motorcycles/index.cfm (hereinafter "Action Plan to Reduce Motorcycle Fatalities"); National Highway Traffic Safety Administration (NHTSA), "2006 Motorcycle Safety Program Plan," at 26 (2006), available at http://www.nhtsa.gov/portal/site/nhtsa/menuitem.d7975d55e8abbe089ca8e410dba046 a0/ (hereinafter "2006 Motorcycle Safety Program Plan").
[Page Number 54021]
The substantive performance tests and requirements of FMVSS No. 122 have not been updated since their adoption in 1972. Since that time, motorcycle brake system technology has significantly changed and improved such that FMVSS No. 122 no longer reflects the current performance of motorcycle brake system technologies. In order to address modern braking technologies, the agency sought to improve the requirements and test procedures of FMVSS No. 122. These efforts coincided with the 2002 adoption of the initial Program of Work under the 1998 United Nations' Economic Commission for Europe (UNECE) Agreement Concerning the Establishment of Global and Technical Regulations for Wheeled Vehicles, Equipment and Parts Which Can Be Fitted And/or Be Used On Wheeled Vehicles (1998 Agreement). *2 That program included motorcycle brake systems as one of the promising areas for the establishment of a GTR. The agency sought to work collaboratively on modernizing motorcycle brake regulations with other Contracting Parties to the 1998 Agreement (Contracting Parties), particularly Canada, the European Union and Japan. Through the exchange of information on ongoing research and testing and through the leveraging of resources for testing and evaluations, the agency participated in successful efforts that culminated in the establishment of the Motorcycle Brake Systems GTR under the 1998 Agreement. We believe that the provisions of the GTR would improve the current requirements and test procedures of FMVSS No. 122 by updating them to more closely reflect the capabilities of modern technologies.
*2 The 1998 UNECE Agreement Concerning the Establishment of Global and Technical Regulations for Wheeled Vehicles, Equipment and Parts Which Can Be Fitted And/or Be Used On Wheeled Vehicles (1998 Agreement) was concluded under the auspices of the United Nations and provides for the establishment of globally harmonized vehicle regulations. This 1998 Agreement, whose conclusion was spearheaded by the United States, entered into force in 2000 and is administered by the UNECE's World Forum for the Harmonization of Vehicle Regulations (WP.29). See http://www.unece.org/trans/main/wp29/wp29wgs/wp29gen/wp29age.html.
The U.S., as a Contracting Party of the 1998 Agreement that voted in favor of establishing this GTR at the November 15, 2006 Session of the Executive Committee of the 1998 Agreement, is obligated under the Agreement to initiate the process for adopting the provisions of the GTR. *3 This proposal is based on the Motorcycle Brake Systems GTR. If NHTSA decides to adopt amendments to FMVSS No. 122 that differ from the requirements of the GTR, the agency will first seek to amend the GTR by submitting a formal proposal to the Executive Committee of the 1998 Agreement, in accordance with the Agreement.
*3 While the 1998 Agreement obligates such Contracting Parties to initiate rulemaking within one year of the establishment of the GTR, it leaves the ultimate decision of whether to adopt the GTR into their domestic law to the parties themselves.
This proposal, if made final, would improve the current FMVSS No. 122 requirements in several areas. First, it would make the dry brake test requirement more stringent by specifying testing of each service brake control individually, with the motorcycle in the fully loaded condition. Second, the proposal would establish a more stringent high speed test requirement by specifying a slightly higher rate of deceleration. Third, the proposal would replace the existing wet brake test with one that better simulates actual in- service conditions, by spraying water onto the brake disc, instead of submerging the brake system before testing. Fourth, the proposal would specify an improved heat fade test procedure based on European and Japanese national regulations, which share the same test procedure and performance requirements. Fifth, the proposal would specify performance requirements for antilock brake systems, if present. Finally, the proposal would establish a new test requirement to evaluate the motorcycle's performance in the event of a failure in the power-assisted braking system, if so equipped.
Besides updating requirements and test procedures to help ensure the safety of motorcycle brake systems, the proposal also provides benefits from harmonization. Motorcycle manufacturers, and ultimately, consumers, both here and abroad, can expect to achieve cost savings through the formal harmonization of differing sets of standards when the Contracting Parties implement the new GTR. Motorcycles are vehicles that are prepared for the world market. It would be more economically efficient to have manufacturers using the same test procedures and meeting the same performance requirements worldwide. This proposal would help achieve these benefits and thus reduce the amount of resources utilized to test motorcycles. Moreover, this GTR sets the stage for further cooperative efforts with other countries facing similar problems at the same or even greater exposure rates, learning from their experience, and leveraging resources to jointly research and implement more effective vehicle related interventions. *4
*4 "Action Plan to Reduce Motorcycle Fatalities," supra note 1, at 8.
Although this proposal would add and update FMVSS No. 122 performance requirements and provide benefits from harmonization, we anticipate that virtually all motorcycles sold in the U.S. can meet the requirements as proposed. The proposal includes several tests that would enhance the safe operation of a motorcycle: tests both at gross vehicle weight rating (GVWR) and lightly loaded vehicle weight, which ensure adequate braking performance at the two extremes of the loading conditions; a wet brake test that is more representative of the manner in which brakes are wetted during real world riding in wet conditions; a variety of ABS performance tests to ensure that motorcycles equipped with ABS have adequate antilock performance during emergency braking or on slippery road conditions; and a new requirement that addresses failure in the power-assisted braking system.
Given the sources and magnitude of the overall safety problem posed by increased motorcycle fatalities, the agency intends to address the problem of motorcycle safety comprehensively, focusing on regulatory as well as behavioral countermeasure strategies. In October 2007, the Secretary of Transportation announced the Action Plan to Reduce Motorcycle Fatalities which will help reduce motorcycle fatalities with new national safety and training standards, curb the use of counterfeit helmet labelling, place a new focus on motorcycle-specific road improvements, provide training for law enforcement officers on how to spot unsafe motorcyclists, and create a broad public awareness campaign on rider safety. Id. at 1.
II. Background
FMVSS No. 122, Motorcycle brake systems, (49 CFR 571.122) took effect on January 1, 1974 (37 FR 1973, June 16, 1972). FMVSS No. 122 specifies performance requirements for motorcycle brake systems. The purpose of the standard is to provide safe motorcycle brake performance under normal and emergency conditions. The safety afforded by a motorcycle's braking system is determined by several factors, including stopping distance,
[Page Number 54022]
linear stability while stopping, fade resistance, and fade recovery. A safe system should have features that both guard against malfunction and stop the motorcycle if a malfunction should occur in the normal service system. FMVSS No. 122 was originally conceived to cover each of these aspects of brake safety by specifying equipment and performance requirements appropriate for both two-wheeled and three-wheeled motorcycles. Because motorcycles differ significantly in configuration from other motor vehicles, the agency established a separate brake standard applicable only to this vehicle category. Many of the FMVSS No. 122 test procedures are, however, similar to those for passenger cars. *5
*5 See Brake Systems on Motorcycles Proposed Motor Vehicle Safety Standard, 36 FR 5516 (Mar. 24, 1971).
Only a few changes have been made to the regulation since it was established. In response to petitions, a 1974 final rule changed the application of FMVSS No. 122 requirements for low-speed motor-driven cycles (motorcycles with 5-brake horsepower or less whose speed attainable in one mile is 30 miles per hour or less) (39 FR 32914, Sept. 12, 1974). In 1978, NHTSA amended the FMVSS No. 122 parking brake test to clarify the test conditions and incorporate an interpretation applicable to three-wheeled motorcycles (43 FR 46547, Oct. 10, 1978). In 2001, the minimum hand lever force requirements for the heat fade test and water recovery test were decreased to facilitate the manufacture of motorcycles with combined braking systems (66 FR 42613, Aug. 14, 2001). Except for the above changes, FMVSS No. 122 has not been amended to keep pace with the advancement of modern brake technologies.
III. Current Requirements of FMVSS No. 122
FMVSS No. 122 applies to both two-wheeled and three-wheeled motorcycles. Among other requirements, the motorcycle manufacturer must ensure that each motorcycle can meet performance requirements under conditions specified in paragraph S6, Test conditions, and as specified in paragraph S7, Test procedures. The tests in S7 include pre- and post-burnishment effectiveness tests, a fade and recovery test, a partial failure test, a water recovery test, and parking brake test. At the end of the test procedure sequence, the brake system must pass a durability inspection. All stops must be made without lockup of any wheel.
Equipment. Each motorcycle is required to have either a split service brake system or two independently actuated brake systems. The former system encompasses a service brake system combined with a hand operated parking brake system for three-wheeled motorcycles. If a motorcycle has a hydraulic service brake system, it must also have a reservoir for each master cylinder, and a master cylinder reservoir label advising the proper grade of brake fluid. If the service brake system is a split hydraulic type, a failure indicator lamp is required. Additionally, three-wheeled motorcycles must be equipped with a friction type parking brake with a solely mechanical means to retain engagement. The service brake system must be installed so that the lining thickness of the drum brake shoes may be visually inspected, either directly or by using a mirror without removing the drums, and so that disc brake friction lining thickness may be visually inspected without removing the pads.
Pre- and post-burnish tests. The service brake system and each independently actuated service brake system on each motorcycle must be capable of stopping within specified distances from 30 miles per hour (mph) and 60 mph. The brakes are then burnished by making 200 stops from 30 mph at 12 feet per second per second (fps2). The service brake system must then be capable of stopping at specified distances from 80 mph and from a speed divisible by 5 mph that is 4 mph to 8 mph less than the maximum motorcycle speed. The post- burnish tests are conducted in the same way as the pre-burnish stops, and the service brakes must be capable of stopping the motorcycle within the post- burnish specified stopping distances.
Fade and recovery test. The fade and recovery test compares the braking performance of the motorcycle before and after ten 60-mph stops at a deceleration of not less than 15 fps2. As a check test, three baseline stops *6 are conducted from 30 mph at 10 to 11 fps2, with the maximum brake lever and maximum pedal forces recorded during each stop, and averaged over the three baseline stops. Ten 60-mph stops are then conducted at a deceleration rate of not less than 15 fps2, followed immediately by five fade recovery stops from 30 mph at a deceleration rate of 10 to 11 fps2. The maximum brake pedal and lever forces measured during the fifth recovery stop must be within plus 20 pounds and minus 10 pounds of the baseline average maximum brake pedal and lever forces.
*6 The baseline check is used to establish a specific motorcycle's pre-test performance to provide a basis for comparison with post-test performance. This comparison is intended to ensure adequate brake performance, at reasonable lever and pedal forces, after numerous high-speed or wet brake stops.
Partial failure test. In the event of a pressure component leakage failure, the remaining portion of the service brake system must continue to operate and shall be capable of stopping the motorcycle from 30 mph and 60 mph within specified stopping distances. The brake failure indicator light must activate when the master cylinder fluid level decreases below the minimum specified level.
Water recovery test. The water recovery test compares the braking performance of the motorcycle before and after the motorcycle brakes are immersed in water for two minutes. Three baseline stops are conducted from 30 mph at 10 to 11 fps2, with the maximum brake lever and pedal forces recorded during each stop, and averaged over the three baseline stops. The motorcycle brakes are then immersed in water for two minutes, followed immediately by five water recovery stops from 30 mph at a deceleration rate of 10 to 11 fps2. The maximum brake pedal and lever forces measured during the fifth recovery stop must be within plus 20 pounds and minus 10 pounds of the baseline average maximum brake pedal force and the lever force.
Parking brake test. For motorcycles required to be equipped with a parking brake system, such system must be able to hold the motorcycle on a 30 percent grade, in both forward and reverse directions, for 5 minutes. A parking brake indicator lamp must be provided.
IV. Harmonization Efforts
Globally, there are several existing regulations, directives, and standards that pertain to motorcycle brake systems. As all share similarities, the Contracting Parties to the 1998 Agreement under WP.29 tentatively determined that the development of a GTR under the 1998 Agreement would be beneficial. During the 126th session of WP.29 of March 2002, the Executive Committee of the 1998 Agreement adopted a Program of Work, which included the development of a GTR on motorcycle brake systems. Subsequently, Canada offered to sponsor the GTR on motorcycle braking requirements at the 52nd session of the Working Party for Brakes and Running Gear (GRRF), in September 2002. *7 To
[Page Number 54023]
proceed with the development of the GTR, the Executive Committee endorsed Canada's request to establish and chair an informal group on motorcycle brakes, at the 130th session of WP.29 in June 2003.
*7 The Working Party for Brakes and Running Gear (GRRF) is made up of delegates from many countries around the world, and who have voting privileges. Representatives from manufacturing and consumer groups also attend and participate in the GRRF and informal working groups that are developing GTRs. Those that chose not to participate are kept apprised of the GTR progress from progress reports which are presented at the GRRF meetings and then posted on the UN's Web site.
In an effort to select the best of existing performance requirements for a GTR, the U.S. and Canada conducted analyses of the relative stringency of three national motorcycle brake system regulations. These were the UNECE Regulation No. 78, FMVSS No. 122, and the Japanese Safety Standard JSS 12-61. The subsequent reports, along with proposed provisions of a GTR, were presented at GRRF meetings, and will be available in the docket. While using different methodologies, the results from the U.S./Canada report were similar to an industry-led report that examined the issue under the GRRF. These studies completed by the U.S., Canada, and the industry provided the basis for the development of the technical requirements of the GTR.
The following regulations, directives and international voluntary standards were considered and used as the basis for the development of the GTR:
. UNECE Regulation No. 78--Uniform provisions concerning the approval of vehicles of category L with regard to braking.
. FMVSS No.122, Motorcycle brake systems.
. Canada Motor Vehicle Safety Regulation No. 122--Motorcycle brake systems. (CMVSS No. 122).
Note: FMVSS and CMVSS No. 122 are substantially similar.
. Japan Safety Standard JSS12-61.
. Australian Design Rule 33/00--Brake systems for motorcycles and mopeds.
. International Organization for Standardization (ISO) 8710:1995, Motorcycles--Brakes and braking devices--tests and measurement methods.
. ISO 12364:2001, Two-wheeled motorcycles--Antilock braking systems (ABS)-- tests and measurement methods.
. ISO 12366:2001, Two-wheeled mopeds--Antilock braking systems (ABS)--tests and measurement methods.
The informal group used the feedback from the GRRF presentations to assist with the completion of the proposed GTR, a copy of which is being placed in the docket. *8 Where national regulations or standards address the same subject, e.g., dry stop or heat fade performance requirements, the informal group reviewed comparative data on the relative stringency of the requirements from the research and studies and included the most stringent options. Additional testing was conducted to confirm or refine the testing and performance requirements. Qualitative issues, such as which wet brake test to include, were discussed on the basis of the original rationales and the appropriateness of the tests to modern conditions and technologies. In each of these steps, specific technical issues were raised, discussed, and resolved, as discussed below. The informal working group held a total of eight meetings concerning the development of the GTR. In November 2006, WP.29 approved the GTR on Motorcycle Brake Systems, and established it in the Global Registry as Global Technical Regulation No. 3.
*8 The first formal proposal for a GTR concerning motorcycle brake systems was presented during the 58th GRRF session in September 2005. A more detailed report on the technical details, deliberations and conclusions, which led to the proposed GTR, was provided separately as informal document No. GRRF-58-16. Both documents will be available in the docket.
The GTR on motorcycle brake systems consists of a compilation of the most stringent and relevant test procedures and performance requirements from current standards and regulations. As a result of the comparison process, the selected performance requirements of the GTR are mainly drawn from the UNECE Regulation No. 78, the FMVSS No. 122 and the Japanese Safety Standard JSS 12- 61 (JSS 12-61). The GTR is comprised of several fundamental tests, each with their respective test procedures and performance requirements. These tests and procedures are listed below along with the national regulation on which they are based:
. Burnish procedure (FMVSS No. 122)
. Dry stop test with each service brake control actuated separately (UNECE Regulation No. 78/JSS 12-61)
. Dry stop test with all service brake systems applied simultaneously (FMVSS No. 122)
. High speed test (JSS 12-61)
. Wet brake test (UNECE Regulation No. 78/JSS 12-61)
. Heat fade test (UNECE Regulation No. 78/JSS 12-61)
. Parking brake test (UNECE Regulation No. 78/JSS 12-61)
. ABS tests (UNECE Regulation No. 78/JSS 12-61)
. Partial failure test--split service brake systems (FMVSS No. 122)
. Power-assisted braking system failure test (new)
The GTR process was transparent to country delegates, industry representatives, public interest groups, and other interested parties. Information regarding the meetings and negotiations was publicly available through notices published periodically by the agency and UN Web site. *9 In the U.S., NHTSA published notice of its intent to add motorcycle brake systems to its list of recommendations of standards for consideration as a GTR in January 2001 (66 FR 4893, Jan. 18, 2001; Docket No. NHTSA-00-7538). The agency later published notice that Canada had submitted a proposal for the establishment of a motorcycle brakes GTR, and sought public comment on the formal proposal (69 FR 60460, Oct. 8, 2004; Docket No. NHTSA-03-14395). In October 2006, NHTSA published a further update on the status of the proposed motorcycle brake systems GTR, and requested comments specific to the motorcycle brakes GTR and NHTSA's intent to vote positively on behalf of the United States for its establishment (71 FR 59582, Oct. 10, 2006; Docket No. NHTSA-2003-14395). The agency did not receive comments in response to any of these notices regarding the motorcycle brake systems GTR.
*9 See http://www.unece.org/trans/main/wp29/wp29wgs/wp29grrf/grrf- infmotobrake7.html for a record of all GRRF meetings and documents presented therein.
V. Proposed Improvements to FMVSS No. 122
A. General
1. New Terminology
For this proposal, definitions in FMVSS No. 122 (paragraph S4) were revised or added where necessary, such as new proposed terms used to describe antilock brake systems (ABS), vehicle maximum speed (Vmax), and peak braking coefficient (PBC). Additionally, in order to streamline the proposed regulatory text to more closely reflect the GTR text, some of the new proposed terms are common terminology and definitions based on the UN document titled "Special Resolution No. 1 Concerning the Common Definitions of Vehicle Categories, Masses and Dimensions (S.R.1)" *10 (UN Doc. S.R.1) developed for the purposes of the GTRs. Thus, certain new definitions that may
[Page Number 54024]
be similar to existing 49 CFR Part 571 definitions are proposed to be added to [Section] 571.122 S4, Definitions. For example, current FMVSS No. 122 specifies that performance requirements must be met when the "motorcycle weight is unloaded vehicle weight plus 200 pounds." *11 This is effectively equivalent to the mass term "lightly loaded" in the proposed rule, which is the testing condition specified for the proposed dry stop test--all service brake controls actuated, the high-speed test, the antilock brake systems tests, and the partial failure test. *12 These proposed terms, some of which may be similar or equivalent to existing terms defined elsewhere in 49 CFR Part 571, are used in the motorcycle brakes GTR in an effort to streamline the GTR and maximize harmonization benefits.
*10 World Forum for Harmonization of Vehicle Regulations (WP.29), Special Resolution No. 1 Concerning the Common Definitions of Vehicle Categories, Masses and Dimensions (S.R.1), U.N. Doc. TRANS/WP.29/1045 (Sept. 15, 2005), available at http://www.unece.org/trans/doc/2005/wp29/TRANS-WP29-1045e.pdf.
*11 49 CFR 571.122, S6.1. "Unloaded vehicle weight" is defined under 49 CFR 571.3(b) to mean "the weight of a vehicle with maximum capacity of all fluids necessary for operation of the vehicle, but without cargo, occupants, or accessories that are ordinarily removed from the vehicle when they are not in use."
*12 Lightly loaded means the sum of unladen vehicle mass (mass of the vehicle with bodywork and all factory fitted equipment, and fuel tanks filled to at least 90 percent) and driver mass "plus 15 kg for test equipment, or the laden condition, whichever is less." FMVSS No. 122 S4, Definitions (proposed).
Additionally, the proposed rule divides motorcycles into five categories, which are referenced in the GTR. These motorcycle categories are based on number of wheels and maximum speed, and were originally defined in the UN Doc. S.R.1, as amended in May 2007. *13 We included these categories in the definitions portion of proposed FMVSS No. 122 because under the GTR some performance tests do not apply to certain motorcycle categories, and certain motorcycle categories have different performance requirements than others.
*13 See WP.29, Amendment to Special Resolution No. 1 Concerning the Common Definitions of Vehicle Categories, Masses, and Dimensions, U.N. Doc. ECE/TRANS/WP.29/1045/Amend.1 (May 9, 2007), available at http://www.unece.org/trans/main/wp29/wp29wgs/wp29gen/wp29fdoc/1000/ECE-TRANS- WP29-1045a1e.pdf.
Category 3-1 and category 3-3 motorcycles are two-wheeled motorcycles. Category 3-1 motorcycles are two-wheeled motorcycles with an engine cylinder capacity not exceeding 50 cm3 and a maximum design speed not exceeding 50 kilometers per hour (km/h). Category 3-3 motorcycles are two-wheeled motorcycles with an engine cylinder capacity exceeding 50 cm3 or a maximum design speed exceeding 50 km/h. Category 3-2 motorcycles are three-wheeled motorcycles of any wheel arrangement with an engine cylinder capacity not exceeding 50 cm3 and a maximum design speed not exceeding 50 km/h. Category 3-4 motorcycles are those manufactured with three wheels asymmetrically arranged in relation to the longitudinal median plane with an engine cylinder capacity exceeding 50 cm3 or a maximum design speed exceeding 50 km/h. Finally, category 3-5 motorcycles are motorcycles manufactured with three wheels symmetrically arranged in relation to the longitudinal median plane with an engine cylinder capacity exceeding 50 cm3 or a maximum design speed exceeding 50 km/h.
2. Vehicle Test Speed and Corrected Stopping Distance
Deceleration or stopping distance performance requirements are set for a specified initial test speed. While professional test riders can approach this initial test speed, it is unlikely that the test will be started at the exact speed specified, affecting the stopping distance measurement. The current FMVSS No. 122 does not specify a speed tolerance for this potential variation, but consistent with the GTR, the proposed rule specifies Japan's existing general tolerance of +/-5 km/h in S6.1.4.
A method for correcting the measured stopping distance is specified in JSS 12-61 to compensate for the difference between the specified test speed and the actual speed where the brakes were applied. Although not specified directly in the regulations, the current FMVSS No. 122 and CMVSS No. 122 also apply a correction factor to test data, using the method specified in Society of Automotive Engineers (SAE) standard J299, Stopping Distance Test Procedure. The informal group evaluated the above noted stopping distance correction methods and the one specified in ISO 8710:1995, Motorcycles--Brakes and braking devices--tests and measurement methods.
SAE J299 offers the most basic method for estimating the corrected distance, and the method is applicable to a speed tolerance of +/- 3.2 km/h (+/- 2 mph). The ISO 8710 and JSS 12-61 methods are based on the same principles, but also take into consideration the brake system reaction time. These methods are applicable to a wider speed tolerance of +/- 5 km/h. However, a small error in handling the system reaction time is apparent in the ISO 8710 equation, which results in higher than expected corrected values. Based on this analysis, the informal group agreed that the stopping distance correction method specified in JSS 12-61 was the most appropriate for the GTR. Therefore, as with the existing Japanese standard, the specified test speeds in the GTR include a general tolerance of +/- 5 km/h (S6.1.4), using the JSS stopping distance correction method to normalize the measured test results, if necessary, to compensate for the difference between the specified test speed and the actual speed where the brakes were applied (see S5.3.2(b)).
3. Test Method To Measure Peak Braking Coefficient
The peak braking coefficient (PBC) is a measure of the coefficient of friction of the test surface and is an important parameter in evaluating the brake performance of a vehicle. PBC is effectively equivalent to the pea