UPDATE 1-StealthGas suspends dividend; shares tank

* Suspends dividend * Q1 adjusted EPS $0.30 vs. estimate of $0.28

* Stock down 21 percent

May 14 (Reuters) - StealthGas Inc (GASS.O), which operates ships that transport liquefied petroleum gas, posted better-than-expected quarterly results but said it would suspend dividend payment, sending the stock down 21 percent.

"Although we have made a solid start to the year, the remainder of 2009 and probably beyond, in my view, will continue to be very challenging," Chief Executive Harry Vafias said in a statement.

The company's net income for the quarter was $0.2 million, or 1 cent a share, down from $7.4 million, or 34 cents a share, a year earlier

Excluding items, earnings for the first quarter ending March 31, 2009 was 30 cents a share. On that basis, analysts had expected earnings of 28 cents a share, according to Reuters Estimates.

Voyage revenues rose 8 percent to $29.2 million, while analysts had forecast revenue of $27.6 million.

Shares of the company were trading down $1.12 at $4.48, after having touched a low of $4.05 earlier in the session. (Reporting by Hezron Selvi in Bangalore; Editing by Pradeep Kurup)