StealthGas Inc. (GASS): PESTLE Analysis [Nov-2025 Updated]

You're looking for a clear, actionable breakdown of the forces shaping StealthGas Inc. (GASS), and honestly, the PESTLE framework is the best tool for this. This isn't just theory; it maps near-term risks and opportunities to your investment decisions. The company's move to zero debt in 2025 is a massive game-changer, but the external environment is still volatile. Here is the defintely precise analysis you need, grounded in the latest 2025 fiscal data.

Political Factors: Route Risk and Trade Stability

Geopolitical conflicts, specifically in the Red Sea and Ukraine, continue to force longer voyages, which burns more fuel and time. StealthGas Inc. mitigated this risk by shifting 70% of its fleet operations to the Europe/Mediterranean region, essentially moving away from the East-of-Suez risks. This is a smart, defensive move. While ethane export trade disputes have largely stabilized, international sanctions and tariffs remain a constant threat, meaning the company must maintain constant route flexibility to chase shifting global LPG trade flows. Your key takeaway here is that political risk is now a logistical cost.

Economic Factors: Zero Debt, High Contract Coverage

The financial picture is strong, but not without pressure. StealthGas Inc. achieved a record Q2 2025 revenue of $47.2 million, marking a 13% year-over-year increase. More importantly, the company became fully debt-free by July 2025 after repaying $86 million in debt this year alone. This zero-debt balance sheet is a huge competitive advantage. Plus, 70% of 2025 fleet days are secured on period charters (long-term contracts), locking in over $165 million in contracted revenues. However, vessel operating expenses (OpEx) are rising due to higher crew costs and maintenance, which will impact profit margins despite the 6.6% growth in global LPG exports in H1 2025. Zero debt gives you a huge cushion against rising costs.

Sociological Factors: Demand Drivers and Crew Costs

The core business driver is clear: growing global demand for Liquefied Petroleum Gas (LPG), especially in developing economies, tied directly to GDP growth and energy transition needs. This creates a reliable demand floor. Also, seasonal demand for LPG in the US and Europe-used for grain drying and heating-strengthens shipping rates predictably. The challenge is on the cost side. Increased focus on crew welfare and labor standards in the maritime sector is driving up crew and operating costs. The strategic shift to Western trade routes aligns with charterers who demand higher vessel maintenance and operational standards, which is a higher-cost, higher-quality business model.

Technological Factors: Obsolescence and Future CapEx

The small LPG carrier fleet faces a major obsolescence cliff: over 30% of it is over 20 years old, requiring expensive retrofits or retirement. StealthGas Inc. is managing this proactively by selling older tonnage, like the Gas Cerberus in June 2025, to keep a younger, more efficient fleet. This is smart capital management. The slow adoption of new small, pressurized LPG vessel orders (none in late 2024/early 2025) suggests a tight supply of modern tonnage, which supports current charter rates. Future capital expenditure (CapEx) will defintely be directed toward dual-fuel or alternative-fuel propulsion systems to meet new standards, which is a massive future cost you must factor into valuations.

Legal Factors: Decarbonization and Safety Scrutiny

The International Maritime Organization (IMO) decarbonization measures are not optional; they mandate costly retrofits for older vessels to comply with efficiency standards. This is a direct threat to the older vessels in the global fleet. The Eco Wizard incident, involving explosions, creates potential liability and regulatory scrutiny on safety protocols and fleet maintenance. Plus, compliance with flag state and port state control inspections is critical for the 70% of the fleet operating in the Mediterranean and Europe. Legal compliance is now a capital-intensive operational issue.

Environmental Factors: Compliance Costs and Incident Risk

IMO 2020 and subsequent regulations push for lower carbon intensity, directly impacting the operational lifespan of older, less-efficient vessels. The company's strategy of selling older vessels is a direct way to reduce the capital burden of mandatory environmental retrofits and drydocking. However, incidents like the Eco Wizard explosion highlight the severe environmental risk and potential for significant downtime, estimated to represent an 8% near-term revenue loss. Environmental risk is now a direct, quantifiable revenue risk.

Next Action:

Finance/Operations: Draft a 3-year CapEx plan by December 2025 detailing the cost and timeline for dual-fuel conversion or replacement of any vessel over 18 years old, using the $165 million contracted revenue as the baseline for financing capacity.

StealthGas Inc. (GASS) - PESTLE Analysis: Political factors

Geopolitical conflicts in the Red Sea and Ukraine continue to disrupt shipping routes, forcing longer voyages.

The global small LPG carrier market is defintely susceptible to geopolitical shocks, which directly impact shipping economics. The ongoing conflicts in the Red Sea and Ukraine have created significant political risk, forcing major re-routing and adding to voyage times and costs. The Houthi attacks in the Red Sea and Gulf of Aden, alongside the war in Ukraine and its associated sanctions, are explicitly cited by StealthGas Inc. as critical factors that could materially affect its operating results.

For a company focused on short-haul and regional trade, these disruptions still cause ripple effects. Longer voyages for Very Large Gas Carriers (VLGCs) consume more fuel and tie up capacity, which eventually tightens the supply of smaller vessels like those in the StealthGas Inc. fleet. This volatility is a constant headwind, but it also creates opportunities for vessels positioned outside the immediate conflict zones.

Company shifted 70% of its fleet to the Europe/Mediterranean region to mitigate East-of-Suez risks.

StealthGas Inc. has executed a clear, politically-driven strategic pivot to insulate its operations from the most volatile regions. The company has shifted its fleet deployment significantly, moving over 70% of its vessels to operate in the Europe and Mediterranean regions. This is a massive change from the past when nearly half the fleet was deployed East of the Suez Canal.

This strategic realignment is a direct response to the elevated East-of-Suez risks, including the Red Sea attacks, and allows the company to capitalize on the premium rates available in the Western market. As of the first half of 2025, the company's total fleet size was around 30 vessels, meaning approximately 21 ships are now focused on the Europe/Mediterranean trade. This is a smart move to stabilize cash flow.

Trade disputes for ethane exports have largely resolved, stabilizing a key market for the company.

Political friction over trade policy has a direct and immediate effect on commodity shipping. Thankfully, short-term uncertainties concerning trade disputes, particularly those impacting ethane exports, have largely been resolved, which has contributed to a more stable market outlook for the small LPG sector.

This political stability is crucial because it supports the underlying market fundamentals. The global LPG export market, which includes ethane, registered robust growth of 6.6% in the first half of 2025. This growth is primarily fueled by increased U.S. shale production and Middle Eastern export expansions. The resolution of these disputes means the company's vessels can operate with greater predictability in this key trade lane.

International sanctions and tariffs can shift global LPG trade flows rapidly, requiring constant route flexibility.

The threat of new international sanctions and tariffs is an ever-present political risk in the shipping industry. The company must constantly adapt to changes in trade flows resulting from protectionist measures imposed by major economies, including the United States.

StealthGas Inc.'s core strategy is built around this volatility. Its fleet of small LPG carriers is inherently flexible, allowing it to quickly shift routes and serve regional demand that larger vessels cannot. This flexibility is a key defense against politically-induced trade shifts. The company's focus on long-term period charters-securing about 70% of its fleet days for 2025 under contract-also helps to buffer it from the immediate rate volatility caused by political events.

• Monitor US/China trade policy for new tariff impacts.
• Track EU sanctions on Russian energy exports for route changes.
• Maintain high period coverage (70% in 2025) for revenue stability.

StealthGas Inc. (GASS) - PESTLE Analysis: Economic factors

StealthGas Achieved Record Q2 2025 Revenue

You need to see hard numbers to believe in a shipping company's resilience, and StealthGas Inc. delivered a strong economic performance in the first half of 2025. The company clocked an all-time high record revenue of $47.2 million in the second quarter of 2025, which represents a 13% increase year-over-year (YoY). This surge wasn't just luck; it was driven by improved market conditions and a slight increase in the average number of vessels owned during the quarter. This record revenue, coupled with an all-time high operating income of $19.7 million, shows that their commercial operations are firing on all cylinders.

Here's the quick math on the six-month performance: Total revenues for the first half of 2025 reached $89.3 million, up from $83.4 million in the same period in 2024. The market is volatile, but the company's ability to capture higher time charter equivalent (TCE) rates across most vessel sizes is a defintely positive sign.

The Company Became Fully Debt-Free by July 2025

In a capital-intensive industry like shipping, becoming debt-free is a massive strategic advantage, and StealthGas achieved this milestone for its fully owned fleet by July 2025. This aggressive deleveraging strategy has fundamentally de-risked the balance sheet, freeing up capital for other uses like shareholder returns or fleet expansion.

The company repaid a staggering $85.8 million in debt during the first three quarters of 2025 alone, consisting of $53.6 million in the first six months and an additional $32.2 million in the third quarter. This move has resulted in all vessels in the fully owned fleet becoming unencumbered, meaning they are free of mortgage or other financial claims. This clean balance sheet gives StealthGas significant financial agility, especially when compared to rivals still grappling with heavy leverage.

70% of 2025 Fleet Days Secured on Period Charters

Economic stability in shipping is all about contracted revenue, and StealthGas has locked in a substantial revenue stream for the near term. They have secured approximately 70% of their 2025 fleet days on period charters, which are essentially long-term contracts. This high coverage ratio provides a solid cushion against the unpredictability of the spot market (where vessels are hired for single voyages).

This forward-looking strategy has secured total contracted revenues of about $155 million for all subsequent periods, providing a clear revenue visibility. For the remainder of 2025, the company has secured approximately $48 million in contracted revenues.

Global LPG Export Growth and Market Drivers

The macroeconomic environment for the Liquefied Petroleum Gas (LPG) shipping sector remains fundamentally positive, driven by robust supply growth from key exporting regions. The overall LPG trade growth projection for 2025 was revised upward to 1.9%, a modest but important increase from earlier forecasts.

This growth is heavily underpinned by two major production hubs:

• Middle Eastern supplies saw an 11% year-on-year rise in the first half of 2025.
• U.S. supply, benefiting from strong natural gas liquids production, grew by 6% year-on-year in the first half of 2025.

The easing of OPEC+ production cuts, coupled with planned expansions of US export terminals, is expected to keep supply robust. However, geopolitical tensions, particularly in the Middle East, introduce a near-term risk, as evidenced by a sharp, albeit temporary, drop in Middle Eastern LPG exports of more than 20% in June 2025 due to conflict escalation and soaring freight rates.

Vessel Operating Expenses Impacting Profit Margins

While revenue is up, the cost side of the equation shows persistent inflationary pressure, which is a key economic risk. Vessel operating expenses for the six months ended June 30, 2025, rose to $26.2 million, an increase of $2.2 million compared to the same period last year.

This rise directly impacts profit margins and is attributed to two main factors:

• Higher crew costs due to global labor shortages and increased wages.
• Increased maintenance and spares consumable stores expenses.

Additionally, voyage expenses-which include fuel (bunkers) and port costs-also climbed significantly, largely because the company took on more spot market days to capitalize on better rates. The rise in operating costs is the trade-off for higher revenues. For Q2 2025 alone, vessel operating expenses were $12.7 million, a slight increase from $12.5 million in Q2 2024.

StealthGas Inc. (GASS) - PESTLE Analysis: Social factors

Growing global demand for LPG, especially in developing economies, is linked directly to GDP growth and energy transition needs.

You need to see the social factors driving energy demand, not just the prices. The most significant social shift is the growing middle class in Asia, which translates directly into higher demand for Liquefied Petroleum Gas (LPG) for both residential and petrochemical uses. Global LPG consumption in 2024 was a massive 347 million tonnes, and the market is projected to grow at a compound annual growth rate (CAGR) of 1.4% through 2034, reaching an estimated 387.14 million metric tons. That is a clear, long-term tailwind for the shipping sector.

The Asia-Pacific region drives this, accounting for almost half of the world's LPG demand. China's consumption, for example, reached 96 million tonnes in 2024, largely for petrochemical feedstock, while India's demand of 39 million tonnes is tied to residential cooking programs aimed at cleaner energy transition. This consistent, socially-driven demand expansion means StealthGas Inc. has a fundamental, growing market to serve, even with the recent trade volatility. Honestly, the social push for cleaner cooking fuel in emerging markets is a powerful, defintely underestimated driver.

Seasonal demand for LPG in the US and Europe strengthens shipping rates due to its use in grain drying and heating.

Seasonal demand is a predictable, short-term opportunity you must capitalize on, particularly in the Western hemisphere where StealthGas Inc. is concentrating its fleet. The winter heating season in the US and Europe, plus the autumn grain drying season in the US Midwest, reliably tightens vessel availability and pushes up charter rates.

While the company secures about 70% of its fleet days for 2025 on period charters to lock in revenue, the remaining spot market exposure benefits from this seasonal lift. For context across the larger gas carrier segment, Very Large Gas Carrier (VLGC) average earnings are expected to reach approximately $51,400 USD/day in 2025, up from $43,300 USD/day in 2024, a jump of roughly 18.7%. This market strength, which is supported by seasonal peaks, means the company can expect chartering activity to pick up in the fourth quarter of 2025 as the heating season approaches.

Increased focus on crew welfare and labor standards in the maritime sector is driving up crew and operating costs.

The social pressure for better crew welfare and stricter labor standards is a non-negotiable cost factor that is already impacting the bottom line. As a US-listed company, StealthGas Inc. faces intense scrutiny to maintain high standards, which directly increases vessel operating expenses (OpEx). This is not a theoretical risk; it is a current reality.

Here's the quick math for the first half of 2025:

The company explicitly attributed the $2.0 million increase in vessels' operating expenses for the three months ended March 31, 2025, primarily to the rise in crew costs and maintenance expenses. This is a permanent shift, so you must factor in these higher OpEx levels for all future valuations.

The strategic move to Western trade routes aligns with charterers who demand higher vessel maintenance and operational standards.

The company's strategic decision to focus on Western trade routes-specifically Europe and the Mediterranean-is a social and commercial play rolled into one. Charterers in these markets, which include major energy firms and traders, demand a higher quality of service and vessel maintenance than is often the case in Eastern spot markets. This demand for quality is a social factor that StealthGas Inc. is meeting head-on.

The company has successfully shifted over 70% of its fleet to trade West of Suez to capture the premium rates associated with these higher standards. The higher OpEx we just discussed is the cost of entry for this premium market. The benefit is twofold: a better charter rate premium, and a fleet that is better maintained, which reduces long-term operational risk. The fact that the fully owned fleet is debt-free as of July 2025 gives the company the financial agility to meet these stringent maintenance demands without being constrained by debt covenants.

StealthGas Inc. (GASS) - PESTLE Analysis: Technological factors

Over 30% of the small LPG carrier fleet is over 20 years old, facing obsolescence or expensive retrofits.

The core technological challenge for StealthGas Inc. is the rapid obsolescence of older tonnage driven by new environmental regulations, particularly the IMO's decarbonization push. While the global LPG carrier fleet had over 18% of vessels aged 20 years or older as of 2023, the small pressurized segment, which is StealthGas's specialty, faces an even more acute age crisis.

Older vessels, typically the fully pressurized carriers (1,000-5,000 CBM) used for short-sea routes, are becoming non-compliant with the new Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) regulations. This forces owners into a binary choice: expensive engine retrofits and energy-saving device installations, or scrapping. Given the current market, the latter is often the more financially sound decision. This aging fleet creates a structural supply-side constraint, which is a near-term opportunity for modern, efficient vessels.

The company continues to sell older tonnage, like the Gas Cerberus in June 2025, to maintain a younger, more efficient fleet.

StealthGas Inc. has clearly executed a strategy of fleet renewal and deleveraging by selling older vessels. This is a critical technological and financial hedge against rising compliance costs and charterer preference for modern ships. The sale of the Gas Cerberus, a 5,000 CBM LPG carrier, was completed in June 2025.

To be fair, the Gas Cerberus was a 2011-built vessel, making it only 14 years old, which highlights an aggressive fleet management stance to keep the average age low. The company's overall strategy is to opportunistically sell older units and replace them with newer tonnage, a move that helped them achieve full debt repayment on their fully owned fleet by July 2025.

• Sell older, less efficient vessels to reduce capital maintenance costs.
• Maintain a high-quality fleet to secure premium charter rates in markets like Europe/Mediterranean.

Slow adoption of new small, pressurized LPG vessel orders (none in late 2024/early 2025) suggests tight supply of modern tonnage.

The newbuilding market has seen a surge in orders, but almost entirely concentrated in the larger segments: Very Large Gas Carriers (VLGCs) and Medium Gas Carriers (MGCs). The small pressurized segment (1,000-5,000 CBM), which is StealthGas's primary focus, has seen virtually no new orders placed in late 2024 or the first half of 2025. This is a huge market dynamic.

Here's the quick math: With minimal new supply for the small pressurized segment and an aging fleet facing mandatory retirement or costly retrofits, the supply of modern, compliant small carriers will shrink. This tight supply is a powerful opportunity for StealthGas, whose fleet is younger than the segment average and is now debt-free.

Future capital expenditure will be directed toward dual-fuel or alternative-fuel propulsion systems to meet new standards.

The future of shipping is in dual-fuel or alternative-fuel propulsion systems. This isn't a luxury; it's a necessity driven by the European Union's Emissions Trading System (EU ETS) and the FuelEU Maritime (FEM) regulations that impose costs on carbon emissions. In 2023, over 30% of newly delivered LPG vessels incorporated dual-fuel engines.

StealthGas Inc. has not announced a major newbuilding program in 2025, but its strategy of selling older tonnage and maintaining a strong cash position (cash and cash equivalents of $87.3 million as of June 30, 2025) positions it perfectly for future strategic CAPEX (Capital Expenditure).

The inevitable next step for the company will be to direct a significant portion of its capital toward ordering new, dual-fuel vessels, likely capable of running on LPG or ammonia, to future-proof the fleet. This is the defintely the only way to secure long-term contracts with top-tier charterers who demand low-emission ships.

StealthGas Inc. (GASS) - PESTLE Analysis: Legal factors

International Maritime Organization (IMO) decarbonization measures mandate costly retrofits for older vessels to comply with efficiency standards.

The IMO's push for net-zero emissions by 2050 is the single largest regulatory headwind for any fleet with older vessels, and it's happening now. The IMO Net-Zero Framework was approved in April 2025, with formal adoption expected in October 2025. This framework introduces a mandatory global fuel standard and a Greenhouse Gas (GHG) pricing mechanism-essentially a carbon tax-to financially penalize high-emission ships and incentivize cleaner fuels.

While the new technical and economic measures are set to enter into force in 2027, the compliance clock is ticking for StealthGas Inc.'s fleet. The initial requirements start with a 2% reduction in GHG intensity from 2025 to 2029, relative to the 2020 average. If a vessel fails to meet the required targets, the company must purchase Remedial Units (RUs) from the IMO. For a Tier 1 Compliance Deficit, the initial cost of an RU is projected at US$100 per metric ton of CO2 equivalent (mtCO2eq), rising significantly to US$380/mtCO2eq for a Tier 2 Compliance Deficit. This levy structure means older, less efficient vessels face a direct, ongoing financial penalty, forcing a decision between costly retrofits or accelerated scrapping.

Here's the quick math on the financial risk:

• 2%: Required GHG intensity reduction from 2025-2029.
• US$100/mtCO2eq: Initial cost for a Tier 1 non-compliance penalty (Remedial Unit).
• US$380/mtCO2eq: Cost for a Tier 2 non-compliance penalty.

The Eco Wizard incident, involving explosions, creates potential liability and regulatory scrutiny on safety protocols and fleet maintenance.

The catastrophic incident involving the LPG carrier Eco Wizard on July 6, 2025, at Russia's Ust-Luga port has created immediate and severe legal exposure. The vessel, a relatively new 40,000-cbm carrier built in 2024, suffered at least one, and possibly two, explosions during ammonia loading operations, leading to an ammonia leak and the vessel's eventual sinking. This incident immediately triggers multiple layers of legal scrutiny, including flag state investigations (Marshall Islands), port state control inquiries, and potential civil liability claims related to cargo loss and environmental damage, despite Russian authorities downplaying the environmental impact as 'minor.'

The larger legal risk stems from the vessel's reported association with the 'shadow fleet,' a group of tankers suspected of being used to circumvent international sanctions. This suspicion, coupled with the fact that the Eco Wizard was the sixth tanker linked to Russian trade to suffer an explosion in 2025, raises serious questions about the company's operational due diligence and compliance with international trade sanctions and safety protocols. The incident will defintely lead to enhanced regulatory oversight of StealthGas Inc.'s entire fleet's safety management systems (SMS) and maintenance records.

Compliance with flag state and port state control inspections is critical for the 70% of the fleet operating in the Mediterranean and Europe.

StealthGas Inc. has strategically concentrated its operations, with over 70% of its vessels trading in Europe and the Mediterranean as of Q2 2025, a move driven by premium market rates. This geographic focus means the company's fleet is highly exposed to the stringent inspection regimes of the Paris Memorandum of Understanding (Paris MoU) and the Mediterranean Memorandum of Understanding (Med MoU) Port State Control (PSC). These regimes are the primary second line of defense against substandard shipping.

Non-compliance in these regions results in detentions, which lead to costly operational downtime and significant reputational damage. In the first half of 2025, a major focus for PSC inspections has been on the integrity of the Safety Management Certificate (SMC) under the International Safety Management (ISM) Code. The Paris MoU recorded 159 detentions in the second quarter of 2025 alone. For the first quarter of 2025, the top deficiency categories for detentions worldwide included Maintenance of the ship and equipment and Oil accumulation in engine room. A single detention can cost hundreds of thousands of dollars in lost charter revenue and repair costs. You need to ensure your ISM compliance is flawless in these key markets.

StealthGas Inc. (GASS) - PESTLE Analysis: Environmental factors

IMO 2020 and Subsequent Regulations Push for Lower Carbon Intensity

The regulatory landscape for shipping has shifted dramatically, driven by the International Maritime Organization (IMO) and regional bodies like the European Union. This push for decarbonization directly impacts the economic viability and operational lifespan of older vessels. The IMO's revised strategy, with its goal of net-zero emissions by or around 2050, is creating immediate pressure. Specifically, the EU's Fuel EU Maritime regulation, which became effective on January 1, 2025, mandates a 2% reduction in the greenhouse gas (GHG) intensity of fuels used by ships operating in EU ports and waters, relative to the 2020 average. This is a clear signal: older, less-efficient tonnage faces obsolescence.

Moreover, the EU Emissions Trading System (ETS) is now fully phased in, requiring shipping companies to surrender allowances for a portion of their emissions. For the 2025 fiscal year, companies must surrender allowances for 70% of their verified 2025 emissions. This is a direct, quantifiable operating cost for vessels with high carbon intensity, essentially creating a financial penalty for less-efficient ships. The IMO's mid-term measures, including a Global Fuel Standard (GFS) and a GHG emissions pricing mechanism, were approved in draft form in April 2025 and are set for formal adoption in October 2025. These measures, once effective in 2027, will further accelerate the retirement or costly retrofit of non-compliant vessels. It's a simple equation: high carbon intensity equals higher operating costs and lower asset value.

• 2025 EU ETS Compliance: Surrender allowances for 70% of verified 2025 emissions.
• Fuel EU Maritime: Requires a 2% GHG intensity reduction starting in 2025.
• IMO Net-Zero Framework: Draft approved in April 2025, aiming for net-zero by 2050.

Company Strategy: Selling Older Vessels to Reduce Capital Burden

StealthGas Inc. has proactively managed the capital risk associated with mandatory environmental retrofits and the high drydocking costs of aging vessels by executing a focused fleet renewal and deleveraging strategy. Selling older, less-efficient tonnage eliminates the need to spend millions on retrofitting these ships to meet new standards like the Carbon Intensity Indicator (CII). This strategy is financially sound, especially given the company's push to become debt-free.

In the first half of 2025, the company completed the sale of one vessel, the 2011-built Gas Cerberus, in June 2025. This sale contributed to the company's liquidity and was part of a larger, successful deleveraging effort. The company repaid $86 million in debt during 2025, achieving a debt-free status for its fully owned fleet by July 2025. This financial agility is a significant advantage over competitors who may be forced to take on new debt for expensive environmental upgrades. The capital burden of mandatory maintenance is still present, however; drydocking costs for the six months ended June 30, 2025, totaled $1.0 million, an increase from the $0.6 million recorded in the same period of 2024. Selling older vessels is a clean way to avoid the escalating drydocking and retrofit cycle.

Eco Wizard Incident Highlights Severe Environmental Risk and Downtime

The explosion incident involving the LPG carrier Eco Wizard on July 6, 2025, at the port of Ust-Luga, Russia, serves as a stark reminder of the non-regulatory environmental and operational risks in the shipping sector. The vessel sustained damage to its engine room and one cargo tank during ammonia loading operations. While the resulting liquid ammonia spill was reported as minor, the incident itself led to an immediate, severe operational disruption.

The vessel was taken off-hire pending repairs and insurance claims, which directly impacts near-term revenue. Management disclosed that the Eco Wizard historically contributed approximately 8% of the company's first-half 2025 revenue. Given the total revenue for the first six months of 2025 was $89.3 million, this downtime represents a potential near-term revenue loss of around $7.14 million (8% of $89.3 million) for the period the vessel remains out of service. This single event, regardless of the cause being external, highlights the significant financial and environmental liability that a fleet operator carries, which is compounded when operating in politically volatile regions. The environmental risk, even with a minor spill, brings intense scrutiny and potential long-term liability that far outlasts the repair time.