Navigator Gas Announces Preliminary First Quarter 2025 Results (Unaudited)
- Revenue increased to $151.4M in Q1 2025, up 12.8% from Q1 2024
- Net income grew to $27.0M, up 19.5% from Q1 2024
- New $300M credit facility secured, resolving previous going concern issues
- Fleet expansion with acquisition of three 17,000 cubic meter ethylene-capable vessels
- Ethylene Export Terminal capacity increased to 1.55M tons annually
- New $50M share repurchase program authorized
- Strong fleet utilization at 92.4%
- Ethylene Export Terminal throughput decreased to 85,553 metric tons from 220,703 in Q1 2024
- Terminal joint venture reported $0.9M loss vs $4.4M gain in Q1 2024
- Total debt increased by $48.6M to $902.1M during Q1 2025
Insights
Navigator Gas reports strong Q1 2025 with 12.8% revenue growth, 19.5% profit increase, and substantial buyback authorization amid robust fleet operations.
Navigator Gas has delivered a solid first quarter 2025 with total operating revenues of
The company's cash position remains stable at
Navigator's capital allocation strategy is shareholder-friendly, with a declared quarterly dividend of
Operationally, the fleet performed well with average daily TCE rates of
The company has been strategically expanding its fleet, acquiring three ethylene-capable vessels for a total of approximately
Navigator has also strengthened its financial flexibility by establishing a new
One area of concern is the underperformance of the Ethylene Export Terminal joint venture, which reported a loss of
Navigator's fleet performance robust with rising TCE rates and 92.4% utilization despite challenging ethylene export market conditions.
Navigator's operational metrics show notable strength, with their fleet achieving an impressive average daily Time Charter Equivalent (TCE) rate of
The company maintained strong fleet utilization at
Navigator's fleet deployment strategy shows a balanced approach with 30 vessels on time charters, 20 on spot voyages and contracts of affreightment, and 9 operating in the Unigas Pool during Q1. For the 12-month period starting April 2025,
The company has selectively expanded its fleet capabilities through the strategic acquisition of three German-built 17,000 cubic meter ethylene-capable vessels (Navigator Hyperion, Navigator Titan, and Navigator Vesta) for a total of approximately
Market assessments for the next 12 months indicate stability in the handysize semi-refrigerated vessel segment (maintained at
The temporary underperformance of the Ethylene Export Terminal (throughput down
LONDON, May 14, 2025 (GLOBE NEWSWIRE) --
First Quarter Financial Highlights
- On May 14, 2025, the Board of Navigator Holdings Ltd., (NYSE: NVGS) (“Navigator Holdings,” "Navigator Gas," “our,” “we,” “us” or the “Company”) declared a cash dividend of
$0.05 per share of the Company's common stock for the quarter ended March 31, 2025, under the Company's Return of Capital policy, payable on June 17, 2025, to all shareholders of record as of the close of business U.S. Eastern Time on May 29, 2025 (the “Dividend”). - Also as part of the Company's Return of Capital policy for the quarter ended March 31, 2025, the Company expects to repurchase approximately
$3.3 million of its common stock between May 19, 2025, and June 30, 2025, subject to operating needs, market conditions, legal requirements, stock price and other circumstances (the “share repurchases”), such that the Dividend and share repurchases together equal25% of net income for the quarter ended March 31, 2025. - On April 3, 2025 the Company paid a dividend of
$0.05 per share of the Company’s common stock to all shareholders of record as of the close of business U.S. Eastern Time on March 24, 2025, totaling$3.5 million , and repurchased 136,295 shares of common stock in the open market between March 17, 2025, and March 31, 2025, at an average price of$14.17 per share, totaling approximately$1.9 million , all as part of the Company's Return of Capital policy for the quarter ended December 31, 2024. - On May 13, 2025, the Board authorized a new share repurchase plan enabling the Company to repurchase up to an aggregate of
$50 million of the Company’s common stock. - The Company reported total operating revenues of
$151.4 million for the three months ended March 31, 2025, compared to$134.2 million for the three months ended March 31, 2024. - Net income attributable to stockholders of the Company was
$27.0 million for the three months ended March 31, 2025, compared to$22.6 million for the three months ended March 31, 2024. - EBITDA1 was
$74.3 million for the three months ended March 31, 2025, compared to$72.8 million for the three months ended March 31, 2024. - Adjusted EBITDA1 was
$72.8 million for the three months ended March 31, 2025, compared to$74.1 million for the three months ended March 31, 2024. - Basic earnings per share attributable to stockholders of the Company was
$0.39 for the three months ended March 31, 2025, compared to$0.31 per share for the three months ended March 31, 2024. - Adjusted basic earnings per share attributable to stockholders of the Company1 was
$0.37 per share for the three months ended March 31, 2025, compared to$0.33 per share for the three months ended March 31, 2024. - During March 2025, the Company received
$4.8 million in other income from a third party relating to a claim and damages caused to Navigator Aries in 2016. The amount received is the final settlement and no further amounts in relation to this matter are anticipated. - The Company increased its debt by
$48.6 million to$902.1 million during the three months ended March 31, 2025 as the Company borrowed an aggregate of$76.8 million under its February 2025 Facility (as defined below), which borrowings were offset by quarterly repayments on loan facilities of$28.2 million . This increase is compares to an increase in debt of$51.9 million to$853.5 million during the three months ended December 31, 2024 as the Company borrowed an aggregate of$68.5 million under its revolving credit facilities and closed the refinancing of a$147.8 million facility, which borrowings were offset by the repayment with respect to OCY Aurora of$43 million and quarterly repayments on loan facilities of$35.4 million . - The Company's cash, cash equivalents, and restricted cash was
$139.0 million as of March 31, 2025, compared to$139.8 million as at December 31, 2024.
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1 EBITDA and Adjusted EBITDA, Adjusted Net Income Attributable to stockholders of Navigator Holdings Ltd., and Adjusted Basic Earnings per Share are not measurements prepared in accordance with U.S. GAAP. EBITDA represents net income before net interest expense, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before profit/loss on sale of vessel and unrealized gain/loss on non-designated derivative instruments and unrealized foreign currency exchange and other income. Adjusted basic earnings per share represents basic earnings per share adjusted to exclude unrealized gains or losses on non-designated derivative instruments and unrealized foreign currency exchange (gain)/loss and other income. Adjusted Net Income Attributable to Stockholders of Navigator Holdings Ltd. represents net income attributable to stockholders of Navigator Holdings Ltd. before unrealized (gain)/loss on non-designated derivative instruments, unrealized foreign currency exchange and other income. Management believes that EBITDA, Adjusted EBITDA, Adjusted Net Income Attributable to stockholders of Navigator Holdings Ltd. and Adjusted Basic earnings per share are useful to investors in evaluating the operating performance of the Company. EBITDA, Adjusted EBITDA, Adjusted Net Income Attributable to stockholders of Navigator Holdings Ltd. and Adjusted Basic earnings per share do not represent and should not be considered alternatives to consolidated net income, earnings per share, cash generated from operations or any other GAAP measure. See “Reconciliation of Non-GAAP Financial Measures” below for a reconciliation of EBITDA, Adjusted EBITDA, Adjusted Net Income Attributable to stockholders of Navigator Holdings Ltd. and Adjusted Basic earnings per share to, in each case, the closest comparable GAAP measure.
Other Highlights and Developments
Fleet Operational Update
The average daily time charter equivalent (“TCE”) rate across the fleet was
Utilization across the fleet remained robust at
U.S. domestic ethylene prices started the first quarter elevated compared to the fourth quarter of 2024, reaching a high of
For the three months ended March 31, 2025, we had an average of 30 vessels engaged under time charters, 20 vessels on spot voyage charters and contracts of affreightment (“COAs"), and 9 vessels operating in the independently managed Unigas Pool. For the 12-month period commencing April 1, 2025, we have
The average handysize 12-month forward-looking market assessment for semi-refrigerated vessels maintained its level from the fourth quarter of 2024 to the first quarter of 2025, at an average of
Sale of vessel
On May 13, 2025, the Company sold and delivered, Navigator Venus, a 2000-built 22,085 cbm ethylene capable semi-refrigerated handysize vessel to a third party for net proceeds of
Ethylene Export Terminal Update
We own a
We expect throughput for the second quarter of 2025 to be materially higher than the first quarter of 2025 as U.S. ethylene crackers continue to complete turnarounds, further decreasing domestic ethylene prices in the U.S. and re-expanding the arbitrage between U.S. and international prices.
Together with Enterprise Products Partners L.P., our joint venture partner, we have expanded the Ethylene Export Terminal (the “Terminal Expansion Project”). The Terminal Expansion Project was completed and put into service on December 19, 2024, increasing the export capacity of the Ethylene Export Terminal from approximately one million tons of ethylene per annum to at least 1.55 million tons per annum. Two new multi-year offtake contracts related to the expanded volume have been signed, and we continue to expect that additional capacity will be contracted throughout 2025. Until further offtake contracts are signed, volumes will be sold on a spot basis.
The total capital contributions required from us for our share of the construction cost for the Terminal Expansion Project was
May 2025 Term Loan and Revolving Credit Facility
On May 2, 2025, the Company entered into a Senior Secured Term Loan and Revolving Credit Facility for up to
Resolution of Going Concern
Following the signing of the May 2025 Facility, the substantial doubt over the Company's ability to continue as a going concern that was disclosed in both the Company’s Preliminary Fourth Quarter and Financial Year 2024 Results (Unaudited) released on March 12, 2025 and in the Company’s Annual Report on Form 20-F for the Year Ended December 31, 2024 filed with the SEC on March 25, 2025, has been alleviated.
2024 Senior Unsecured Bonds and 2025 Bond Tap Issue
On October 17, 2024, the Company issued an aggregate principal amount of
On March 28, 2025, pursuant to an addendum (the “March 2025 Bond Tap Issue Addendum”), the Company completed an additional aggregate principal amount of
Newly Acquired Vessels
On January 7, 2025, the Company entered into an agreement to acquire three German-built 17,000 cubic meter capacity, ethylene-capable liquefied gas vessels (the "Purchased Vessels").
On February 7, 2025, the Company entered into a
On February 19, 2025, the Company acquired the first of the three Purchased Vessels, now renamed Navigator Hyperion for
New Share Repurchase Plan
On May 13, 2025, the Board of Navigator Holdings Ltd. authorized a new share repurchase plan in relation to Navigator’s common stock (the “New Share Repurchase Plan”). Pursuant to the New Share Repurchase Plan, Navigator may repurchase up to an aggregate of
Return of Capital Policy
The Company’s current Return of Capital policy, which is subject to operating needs, market conditions, legal requirements, stock price and other circumstances, is based on paying out quarterly cash dividends of
As part of the Return of Capital policy, we expect to repurchase the Company’s common stock and any such share repurchases will be made via open market transactions, privately negotiated transactions or any other method permitted under U.S. securities laws and the rules of the U.S. Securities and Exchange Commission.
Declarations of any dividends in the future, and the amount of any such dividends, are subject to the discretion of the Company’s Board. The Return of Capital policy does not oblige the Company to pay any dividends or repurchase any of its shares in the future and it may be suspended, discontinued or modified by the Company at any time, for any reason. Further, the timing of any share repurchases under the Return of Capital policy will be determined by the Company’s management and will depend on operating needs, market conditions, legal requirements, stock price, and other circumstances.
Legal Updates
The Company continues to monitor reports concerning Muhamad Kerry Adrianto and certain other business partners and executives of PT Pertamina (Persero), Indonesia’s state-owned energy company (“Pertamina”), following their arrest by Indonesian authorities on February 25, 2025 as part of an investigation into allegations of corruption. The allegations relate to the mismanagement of crude oil and oil refinery products at Pertamina between 2018 and 2023. The investigation by Indonesian authorities is ongoing.
Mr. Adrianto serves as a director of PT Navigator Khatulistiwa ("PTNK"), our Indonesian joint venture. The Company is in the process of removing Mr. Adrianto from his position as a director at PTNK. Three unencumbered vessels in our fleet and approximately
We continue to believe that these events will not have a material impact on the Company or our operations.
Unaudited Results of Operations for the Three Months Ended March 31, 2025 compared to the Three Months Ended March 31, 2024
| ` | Three months ended March 31, 2024 | Three months ended March 31, 2025 | Percentage change | |||||
| (in thousands, except percentage change) | ||||||||
| Operating revenues | $ | 121,020 | $ | 139,903 | 15.6 | % | ||
| Operating revenues – Unigas Pool | 13,135 | 11,504 | (12.4)% | |||||
| Total operating revenues | 134,155 | 151,407 | 12.9 | % | ||||
| Brokerage commission | 1,626 | 1,915 | 17.8 | % | ||||
| Voyage expenses | 14,183 | 20,661 | 45.7 | % | ||||
| Vessel operating expenses | 42,118 | 47,014 | 11.6 | % | ||||
| Depreciation and amortization | 33,441 | 34,186 | 2.2 | % | ||||
| General and administrative costs | 6,480 | 8,124 | 25.4 | % | ||||
| Total operating expenses | 97,848 | 111,900 | 14.4 | % | ||||
| Operating Income | 36,307 | 39,507 | 8.8 | % | ||||
| Unrealized loss on non-designated derivative instruments | (447 | ) | (2,262 | ) | 406.1 | % | ||
| Interest expense | (14,857 | ) | (12,692 | ) | (14.6)% | |||
| Interest income | 1,612 | 1,121 | (30.5)% | |||||
| Unrealized foreign exchange loss | (880 | ) | (991 | ) | 12.6 | % | ||
| Other income | — | 4,801 | - | |||||
| Income before taxes and share of result of equity method investments | 21,735 | 29,484 | 35.7 | % | ||||
| Income taxes | (1,206 | ) | 143 | (111.9)% | ||||
| Share of result of equity method investments | 4,390 | (904 | ) | (120.6)% | ||||
| Net Income | 24,919 | 28,723 | 15.3 | % | ||||
| Net income attributable to non-controlling interest | (2,346 | ) | (1,687 | ) | (28.1)% | |||
| Net Income attributable to stockholders of Navigator Holdings Ltd. | $ | 22,573 | $ | 27,036 | 19.8 | % | ||
The following table presents selected operating data for the three months ended March 31, 2025 and 2024, which we believe is useful in understanding the basis of movements in our operating revenues.
| Three months ended March 31, 2024 | Three months ended March 31, 2025 | |||||
| * Fleet Data: | ||||||
| Weighted average number of vessels | 47.0 | 48.0 | ||||
| Ownership days | 4,277 | 4,321 | ||||
| Available days | 4,220 | 4,234 | ||||
| Earning days | 3,770 | 3,913 | ||||
| Fleet utilization | ||||||
| ** Average daily Time Charter Equivalent | $ | 28,339 | $ | 30,476 | ||
* Fleet Data - Our nine owned smaller vessels in the independently managed Unigas Pool are excluded.
** Non-GAAP Financial Measure - Time charter equivalent - TCE is a measure of the average daily revenue performance of a vessel. TCE is not calculated in accordance with U.S. GAAP. For all charters, we calculate TCE by dividing total operating revenues (excluding revenue from the Unigas Pool), less any voyage expenses, by the number of earning days for the relevant period. Under a time charter, the charterer pays substantially all of the vessel's voyage related expenses, whereas for voyage charters, also known as spot market charters, we pay all voyage expenses and charge our customers for these costs through our sales invoicing. TCE is a shipping industry performance measure used primarily to compare period-to-period changes in a company’s performance despite changes in the mix of charter types (i.e., voyage charters, time charters and contracts of affreightment) under which the vessels may be employed. We include average daily TCE, as we believe it provides additional meaningful information. Our calculation of TCE may not be comparable to that reported by other companies.
The following table represents a reconciliation of operating revenues to TCE. Operating revenues are the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
| Three months ended March 31, 2024 | Three months ended March 31, 2025 | |||
| (in thousands, except earning days and average daily time charter equivalent rate) | ||||
| *** Operating revenues | $ | 121,020 | $ | 139,903 |
| *** Voyage expenses | 14,183 | 20,661 | ||
| Operating revenues less voyage expenses | $ | 106,837 | $ | 119,242 |
| ***Earning days | 3,770 | 3,913 | ||
| Average daily time charter equivalent rate | $ | 28,339 | $ | 30,476 |
***Operating revenues and voyage expenses of our nine owned vessels in the independently managed Unigas Pool are excluded.
Operating Revenues. Operating revenues, net of address commissions, was
- an increase of approximately
$8.1 million attributable to an increase in average monthly TCE rates, which increased to an average of approximately$30,476 per vessel per day ($926,990 per vessel per calendar month) for the three months ended March 31, 2025, compared to an average of approximately$28,339 per vessel per day ($861,990 per vessel per calendar month) for the three months ended March 31, 2024; - an increase of approximately
$4.0 million attributable to an increase in fleet utilization, which increased to92.4% for the three months ended March 31, 2025, compared to89.3% for the three months ended March 31, 2024; - an increase of approximately
$0.4 million or0.3% , attributable to a net 14-day increase in vessel available days for the three months ended March 31, 2025, compared to the three months ended March 31, 2024. This increase was primarily a result of the acquisition of the Purchased Vessels during the three months ended March 31, 2025, compared to the three months ended March 31, 2024; and - an increase of approximately
$6.4 million primarily attributable to an increase in invoiced pass-through voyage expense for the three months ended March 31, 2025, compared to the three months ended March 31, 2024.
Operating Revenues – Unigas Pool. Operating revenues – Unigas Pool was
Brokerage Commissions. Brokerage commissions, which typically vary between
Voyage Expenses. Voyage expenses increased by
Vessel Operating Expenses. Vessel operating expenses increased by
Depreciation and Amortization. Depreciation and amortization increased by
General and Administrative Costs. General and administrative costs increased by
Unrealized Loss on Non-Designated Derivative Instruments. The unrealized loss of
Interest Expense. Interest expense decreased by
Unrealized Foreign Exchange Loss. The unrealized foreign exchange loss of
Other Income. During March 2025, the Company received
Income Taxes. Income taxes relate to taxes on our subsidiaries and businesses incorporated around the world including those incorporated in the United States of America. Income taxes were a credit of
Share of Result of Equity Method Investments. The share of the result of the Company’s
Non-Controlling Interests. The Company entered into a sale and leaseback arrangement for Navigator Aurora in November 2019 with a wholly-owned special purpose vehicle of a financial institution (“Lessor SPV”). The sale and leaseback arrangement for Navigator Aurora terminated in October 2024 and up to the date of termination, as we were the primary beneficiary of this entity, we were required to consolidate this variable interest entity ("VIE") into our financial results. The net income attributable to the Lessor SPV included in our financial results was nil for the three months ended March 31, 2025, and
In September 2022, the Company entered into the Navigator Greater Bay Joint Venture to acquire five ethylene vessels, Navigator Luna, Navigator Solar, Navigator Castor, Navigator Equator, and Navigator Vega. The joint venture is owned
Reconciliation of Non-GAAP Financial Measures
The following table shows a reconciliation of Net Income to EBITDA and Adjusted EBITDA for the three months ended March 31, 2025 and 2024:
| Three months ended March 31, 2024 | Three months ended March 31, 2025 | ||||
| (in thousands) | |||||
| Net Income | $ | 24,919 | $ | 28,723 | |
| Net interest expense | 13,245 | 11,571 | |||
| Income taxes | 1,206 | (143 | ) | ||
| Depreciation and amortization | 33,441 | 34,186 | |||
| EBITDA2 | 72,811 | 74,337 | |||
| Unrealized loss on non-designated derivative instruments | 447 | 2,262 | |||
| Unrealized foreign exchange loss* | 880 | 991 | |||
| Other Income | — | (4,801 | ) | ||
| Adjusted EBITDA2 | $ | 74,138 | $ | 72,789 | |
The following table shows a reconciliation of Net Income attributed to stockholders of Navigator Holdings Ltd. to Adjusted Net Income attributable to stockholders of Navigator Holdings Ltd., for the three months ended March 31, 2025 and 2024:
| Three months ended March 31, 2024 | Three months ended March 31, 2025 | ||||
| (in thousands except earnings per share and number of shares) | |||||
| Net Income attributable to stockholders of Navigator Holdings Ltd. | $ | 22,573 | $ | 27,036 | |
| Unrealized loss on non-designated derivative instruments | 447 | 2,262 | |||
| Unrealized foreign exchange loss3 | 880 | 991 | |||
| Other Income | — | (4,801 | ) | ||
| Adjusted Net Income attributable to stockholders of Navigator Holdings Ltd. | $ | 23,900 | $ | 25,488 | |
| Earnings per share attributable to stockholders of Navigator Holdings Ltd. | |||||
| Basic earnings per share | $ | 0.31 | $ | 0.39 | |
| Diluted earnings per share | $ | 0.31 | $ | 0.39 | |
| Adjusted Basic earnings per share2 | $ | 0.33 | $ | 0.37 | |
| Adjusted Diluted earnings per share2 | $ | 0.32 | $ | 0.36 | |
| Basic weighted average number of shares | 73,209,771 | 69,380,259 | |||
| Diluted weighted average number of shares | 73,757,164 | 70,093,465 | |||
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2 EBITDA and Adjusted EBITDA, Adjusted Net Income Attributable to stockholders of Navigator Holdings Ltd., and Adjusted Basic Earnings per Share are not measurements prepared in accordance with U.S. GAAP. EBITDA represents net income before net interest expense, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before profit/loss on sale of vessel and unrealized gain/loss on non-designated derivative instruments and unrealized foreign currency exchange and other income. Adjusted basic earnings per share represents basic earnings per share adjusted to exclude unrealized gains or losses on non-designated derivative instruments and unrealized foreign currency exchange (gain)/loss and other income. Adjusted Net Income Attributable to Stockholders of Navigator Holdings Ltd. represents net income attributable to stockholders of Navigator Holdings Ltd. before unrealized (gain)/loss on non-designated derivative instruments, unrealized foreign currency exchange and other income. Management believes that EBITDA, Adjusted EBITDA, Adjusted Net Income Attributable to Stockholders of Navigator Holdings Ltd. and Adjusted Basic earnings per share are useful to investors in evaluating the operating performance of the Company. EBITDA, Adjusted EBITDA, Adjusted Net Income Attributable to Stockholders of Navigator Holdings Ltd. and Adjusted Basic earnings per share do not represent and should not be considered alternatives to consolidated net income, earnings per share, cash generated from operations or any other GAAP measure.
3 In preparing these unaudited condensed consolidated financial statements, the Company has disaggregated certain income statement line items. This disaggregation was performed to enhance clarity and to provide users with greater insight into the Company’s financial position. Unrealized foreign exchange losses is separately disclosed and disaggregated from interest expense. Prior period balances have been reclassified to conform to the current period presentation
Liquidity and Capital Resources
Liquidity and Cash Needs
Our primary sources of funds are cash and cash equivalents, cash from operations, undrawn bank borrowings, proceeds from vessel sales, and proceeds from bond issuances. As of March 31, 2025, we had unrestricted cash and cash equivalents of
Our secured term loan facilities and revolving credit facilities contain covenants that require that the borrowers have liquidity of no less than (i)
On May 2, 2025, the Company entered into a Senior Secured Term Loan and Revolving Credit Facility for up to
On October 17, 2024, the Company issued an aggregate principal amount of
On March 28, 2025, pursuant to the March 2025 Bond Tap Issue Addendum, the Company completed the March 2025 Bond Tap Issue issuing an additional aggregate principal amount of
On February 7, 2025, the Company entered into a
The Company has a responsibility to evaluate whether conditions and/or events raise substantial doubt over its ability to meet its future financial obligations as they become due within one year after the date that the financial statements are due to be issued. We believe, given our current cash balances, that our financial resources, including the cash expected to be generated within the year, will be sufficient to meet our liquidity and working capital needs for at least the next twelve months, taking into account our existing capital commitments and debt service requirements.
Following the signing of the May 2025 Facility, the substantial doubt over the Company's ability to continue as a going concern that was disclosed in both the Company’s Preliminary Fourth Quarter and Financial Year 2024 Results (Unaudited) released on March 12, 2025 and in the Company’s Annual Report on Form 20-F for the Year Ended December 31, 2024 filed with the SEC on March 25, 2025, has been alleviated.
Our primary uses of funds are drydocking and other vessel maintenance expenditures, voyage expenses, vessel operating expenses, general and administrative costs, insurance costs, expenditures incurred in connection with ensuring that our vessels comply with international and regulatory standards, financing expenses, quarterly repayment of bank loans and the Terminal Expansion Project. We also expect to use funds in connection our New Share Repurchase Plan and with our Return of Capital policy. In addition, our medium-term and long-term liquidity needs relate to debt repayments, repayment of bonds, payment for the Newbuild Vessels and other potential future vessel newbuilds, related investments, and other potential future vessel acquisitions, and or related port or terminal projects.
As of March 31, 2025, we had
Capital Expenditures
We may invest further in terminal infrastructure. The total capital contributions required from us for our share of the construction cost for the Terminal Expansion Project was
Liquefied gas transportation by sea is a capital-intensive business, requiring significant investment to maintain an efficient fleet and to stay in regulatory compliance.
Cash Flows
The following table summarizes our cash, cash equivalents and restricted cash provided by/(used in) operating, investing and financing activities for the three months ended March 31, 2025 and 2024:
| Three months ended March 31, 2024 | Three months ended March 31, 2025 | |||||
| (in thousands) | ||||||
| Net cash provided by operating activities | $ | 49,019 | $ | 63,305 | ||
| Net cash (used in)/provided by investing activities | (620 | ) | (107,557 | ) | ||
| Net cash (used in)/provided by financing activities | (33,521 | ) | 44,464 | |||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (880 | ) | (991 | ) | ||
| Net increase/(decrease) in cash, cash equivalents and restricted cash | $ | 13,998 | $ | (779 | ) | |
Operating Cash Flows. Net cash provided by operating activities for the three months ended March 31, 2025, increased to
Net cash flow from operating activities principally depends upon charter rates attainable, fleet utilization, fluctuations in working capital balances, repairs and maintenance activity, amount and duration of drydocks, and changes in foreign currency rates.
We are required to drydock each vessel once every five years until it reaches 15 years of age, after which we drydock vessels approximately every two and a half years. Drydocking each vessel, including travelling to and from the drydock, can take approximately 30 days in total, being approximately 5-10 days of voyage time to and from the shipyard and approximately 15-20 days of actual drydocking time. 3 of our vessels completed their respective drydockings during the three months ended March 31, 2025,
We estimate the current cost of a five-year drydocking for one of our vessels to be approximately
Investing Cash Flows. Net cash used in investing activities was
Net cash used in investing activities was
Financing Cash Flows. Net cash provided by financing activities was
Net cash used in financing activities was
Secured Term Loan Facilities, Revolving Credit Facilities and Terminal Facility
General. Navigator Gas LLC., our wholly-owned subsidiary, and certain of our vessel-owning subsidiaries have entered into various secured term loan facilities and revolving credit facilities as summarized in the table below. For additional information regarding our secured term loan facilities and revolving credit facilities, please read “Item 5—Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Secured Term Loan Facilities and Revolving Credit Facilities” in the Company's 2024 Annual Report.
The table below summarizes our facilities as of March 31, 2025:
| Facility agreement | Original facility amount | Principal amount outstanding | Interest rate | Facility maturity date | ||
| (in millions) | ||||||
| March 2019 Terminal Facility | 75.0 | 8.5 | Comp SOFR + 326 BPS | December 2025 | ||
| September 2020 Secured Term Loan and RCF | 210.0 | 143.4 | Comp SOFR + 276 BPS | September 2025 | ||
| August 2021 Loan Agreement | 67.0 | 34.9 | Fixed 378 BPS | June 2026 | ||
| February 2025 Secured Term Loan | 74.6 | 74.6 | Term SOFR + 180 BPS | June 2026 | ||
| October 2013 DB Credit Facility A | 57.7 | 10.8 | Comp SOFR + 247 BPS | April 2027 | ||
| October 2013 Santander Credit Facility A | 81.0 | 15.7 | Comp SOFR + 247 BPS | May 2027 | ||
| December 2022 Secured Term loan and RCF | 111.8 | 80.4 | Term SOFR + 209 BPS | September 2028 | ||
| July 2015 DB Credit Facility B | 60.9 | 19.0 | Comp SOFR + 247 BPS | December 2028 | ||
| July 2015 Santander Credit Facility B | 55.8 | 18.6 | Comp SOFR + 247 BPS | January 2029 | ||
| March 2023 Secured Term Loan | 200.0 | 133.4 | Comp SOFR + 210 BPS | March 2029 | ||
| December 2022 Greater Bay JV Secured Term Loan | 151.3 | 128.0 | Term SOFR + 220 BPS | December 2029 | ||
| August 2024 Secured Term Loan and RCF | 147.6 | 141.5 | Term SOFR + 190 BPS | August 2030 | ||
| Total | $ | 1,292.7 | $ | 808.8 | ||
May 2025 Senior Secured Term Loan and Revolving Credit Facility. On May 2, 2025, the Company entered into a Senior Secured Term Loan and Revolving Credit Facility for up to
February 2025 Senior Secured Term Loan Credit Facility. On February 7, 2025, the Company entered into a
Financial Covenants. Our secured term loan facilities and revolving credit facilities contain financial covenants requiring the borrowers, among other things, to ensure that:
- borrowers maintain a certain level of cash and cash equivalents based on the number of vessels in our fleet or in the relevant facilities, up to an amount of
$50 million and; - borrowers must maintain a minimum ratio of shareholder equity to total assets, or value adjusted total assets, of
30% .
Restrictive Covenants. The secured facilities provide that the borrowers may not declare or pay dividends to shareholders out of operating revenue generated by the vessels securing the indebtedness if an event of default has occurred and is continuing. The secured term loan facilities and revolving credit facilities also typically limit the borrowers from, among other things, incurring further indebtedness or entering into mergers and divestitures. The secured facilities also contain general covenants that require the borrowers to maintain adequate insurance coverage and to maintain the vessels, and include customary events of default including those relating to a failure to pay principal or interest, a breach of covenant, representation or warranty, a cross-default to other indebtedness, or non-compliance with security documents.
Borrowers are required to deliver quarterly compliance certificates, which certificates on a semi-annual basis on June 30 and December 31, includes providing average valuations of the vessels securing the applicable facility from two independent ship brokers. Upon delivery of the valuations, if the market value of the collateral vessels is less than
2024 Senior Unsecured Bonds and 2025 Bond Tap Issue
General. On October 17, 2024, we issued an aggregate principal amount of
On March 28, 2025, pursuant to the March 2025 Bond Tap Issue Addendum, the Company completed the March 2025 Bond Tap Issue issuing an additional aggregate principal amount of
The October 2024 Bonds (and the March 2025 Bond Tap Issue under the same bond terms) are governed by Norwegian law and they are required to be listed on the Nordic ABM, which is operated and organized by Oslo Børs ASA, within 9 months of issuance. The listing is expected to be completed in the second quarter of 2025.
Interest. Interest on the October 2024 Bonds (and the March 2025 Bond Tap Issue) is payable at a fixed rate of
Maturity. The October 2024 Bonds (and the March 2025 Bond Tap Issue) mature on October 30, 2029 and become repayable on that date.
Optional Redemption. We may redeem the October 2024 Bonds (and the March 2025 Bond Tap Issue), in whole or in part at any time. Any bonds redeemed: up until October 29, 2027 will be priced at the aggregate of the present value (discounted at 412 basis points) on the Repayment Date of the Nominal Amount and the remaining interest payments up to October 30, 2027; from October 30, 2027 to April 29, 2028, are redeemable at
Additionally, upon the occurrence of a “Change of Control Event” (as defined in the bond terms for the October 2024 Bonds (and the March 2025 Bond Tap Issue), the holders of October 2024 Bonds (and holders of the March 2025 Bond Tap Issue) have the option to require us to repay such holders’ outstanding principal amount at
Financial Covenants. The bond terms for the October 2024 Bonds (and the March 2025 Bond Tap Issue) contains financial covenants requiring us, among other things, to ensure that:
- we and our subsidiaries maintain a minimum liquidity of no less than
$35 million ; and - we and our subsidiaries maintain an Equity Ratio (as defined) of at least
30% .
Our compliance with the covenants listed above is measured as of the end of each fiscal quarter. As of March 31, 2025, we were in compliance with all covenants under the October 2024 Bonds (and the March 2025 Bond Tap Issue).
Restrictive Covenants. The October 2024 Bonds (and the March 2025 Bond Tap Issue) provide that we may declare or pay dividends to shareholders provided the Company maintains a minimum liquidity of
Critical Accounting Estimates
We prepare our consolidated financial statements in accordance with U.S. GAAP, which requires us to make estimates in the application of our accounting policies based on our best assumptions, judgments and opinions. On a regular basis, management reviews the accounting policies, assumptions, estimates and judgments to ensure that our consolidated financial statements are presented fairly and in accordance with U.S. GAAP. However, because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material. For a description of our material accounting policies, please read Note 2—Summary of Significant Accounting Policies to the Company's 2024 Annual Report.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risk from changes in interest rates and foreign currency fluctuations, as well as inflation. We use interest rate swaps to manage some of our interest rate risks. We do not use interest rate swaps or any other financial instruments for trading or speculative purposes.
Interest Rate Risk
We are exposed to the impact of interest rate changes through borrowings that require us to make interest payments based on SOFR. Our wholly-owned subsidiaries and certain of our vessel-owning subsidiaries are party to secured term loan and revolving credit facilities that bear interest at rates of SOFR plus margins of between 185 and 326 basis points. At March 31, 2025,
We use interest rate swaps to reduce our exposure to market risk from changes in interest rates. The principal objective of these contracts is to minimize the risks and costs associated with our floating-rate debt. The Company is exposed to the risk of credit loss in the event of non-performance by the counterparty to the interest rate swap agreements.
Foreign Currency Exchange Rate Risk
Our primary economic environment is the international shipping market. This market utilizes the U.S. Dollar as its functional currency. Consequently, most of our revenue is generated in U.S. Dollars. Our expenses are in the currency invoiced by each supplier, and we remit funds in various currencies. We incur some vessel operating expenses and general and administrative costs in foreign currencies, primarily Euros, Pound Sterling, Danish Kroner, and Polish Zloty, and therefore there is a transactional risk that currency fluctuations could have a negative effect on our cash flows and financial condition. We believe these adverse effects would not be material and we have not entered into any derivative contracts to mitigate our exposure to foreign currency exchange rate risk as of March 31, 2025.
Inflation
We are exposed to increases in operating costs arising from vessel operations, including crewing, vessel repair costs, drydocking costs, insurance and fuel prices as well as from general inflation, and we are subject to fluctuations as a result of general market forces. Increases in bunker costs could have a material effect on our future operations if the number and duration of our voyage charters or Contracts of Affreightment ("COAs") increases. In the case of the 50 vessels owned and commercially managed by us as of March 31, 2025, 34 were employed on time charter and as such it is the charterers who pay for the fuel on those vessels. If our vessels are employed under voyage charters or COAs, freight rates are generally sensitive to the price of fuel such that a sharp rise in bunker prices may have a temporary negative effect on our results since freight rates generally adjust only after bunker prices settle at a higher level.
Credit Risk
We may be exposed to credit risks in relation to vessel employment and at times we may have multiple vessels employed by the same charterer. We consider and evaluate the concentration of credit risk continuously and perform ongoing evaluations of these charterers for credit risk. At March 31, 2025, no more than four of our vessels were employed by the same charterer. We invest our surplus funds with reputable financial institutions, and at March 31, 2025, all such deposits had maturities of no more than three months, in order to provide the Company with flexibility to meet working capital and capital investment requirements.
| NAVIGATOR HOLDINGS LTD. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Condensed Consolidated Statements of Operations (Unaudited) | ||||||
| Three months ended March 31, 2024 | Three months ended March 31, 2025 | |||||
| (in thousands except share and per share data) | ||||||
| Revenue | ||||||
| Operating revenues | $ | 121,020 | $ | 139,903 | ||
| Operating revenues – Unigas Pool | 13,135 | 11,504 | ||||
| Total operating revenues | 134,155 | 151,407 | ||||
| Expenses | ||||||
| Brokerage commission | 1,626 | 1,915 | ||||
| Voyage expenses | 14,183 | 20,661 | ||||
| Vessel operating expenses | 42,118 | 47,014 | ||||
| Depreciation and amortization | 33,441 | 34,186 | ||||
| General and administrative costs | 6,480 | 8,124 | ||||
| Total operating expenses | 97,848 | 111,900 | ||||
| Operating Income | 36,307 | 39,507 | ||||
| Other Income/(Expenses) | ||||||
| Unrealized loss on non-designated derivative instruments | (447 | ) | (2,262 | ) | ||
| Interest expense | (14,857 | ) | (12,692 | ) | ||
| Interest income | 1,612 | 1,121 | ||||
| Unrealized foreign exchange loss | (880 | ) | (991 | ) | ||
| Other income | — | 4,801 | ||||
| Income before taxes and share of result of equity method investments | 21,735 | 29,484 | ||||
| Income taxes | (1,206 | ) | 143 | |||
| Share of result of equity method investments | 4,390 | (904 | ) | |||
| Net Income | 24,919 | 28,723 | ||||
| Net income attributable to non-controlling interest | (2,346 | ) | (1,687 | ) | ||
| Net Income attributable to stockholders of Navigator Holdings Ltd. | $ | 22,573 | $ | 27,036 | ||
| Earnings per share attributable to stockholders of Navigator Holdings Ltd.: | ||||||
| Basic: | $ | 0.31 | $ | 0.39 | ||
| Diluted: | $ | 0.31 | $ | 0.39 | ||
| Weighted average number of shares outstanding in the period: | ||||||
| Basic: | 73,209,771 | 69,380,259 | ||||
| Diluted: | 73,757,164 | 70,093,465 | ||||
| NAVIGATOR HOLDINGS LTD. Condensed Consolidated Statements of Comprehensive Income (Unaudited) | ||||
| Three months ended March 31, 2024 | Three months ended March 31, 2025 | |||
| (in thousands) | ||||
| Net Income | $ | 24,919 | $ | 28,723 |
| Other comprehensive income: | ||||
| Foreign currency translation (loss)/income | 34 | 394 | ||
| Total comprehensive income | $ | 24,953 | $ | 29,117 |
| Total comprehensive income attributable to: | ||||
| Stockholders of Navigator Holdings Ltd. | $ | 22,607 | $ | 27,430 |
| Non-controlling interest | 2,346 | 1,687 | ||
| Total comprehensive income | $ | 24,953 | $ | 29,117 |
| NAVIGATOR HOLDINGS LTD. Condensed Consolidated Balance Sheet (Unaudited) | ||||||
| As at December 31, 2024 | As at March 31, 2025 | |||||
| (in thousands, except share data) | ||||||
| Assets | ||||||
| Current Assets | ||||||
| Cash and cash equivalents | $ | 130,821 | $ | 91,032 | ||
| Restricted cash | 8,976 | 47,986 | ||||
| Accounts receivable, net of allowance for credit losses | 29,037 | 32,907 | ||||
| Accrued income | 5,809 | 3,064 | ||||
| Prepaid expenses and other current assets | 14,824 | 20,508 | ||||
| Bunkers and other inventory | 13,752 | 15,531 | ||||
| Insurance receivable | 3,368 | 4,016 | ||||
| Amounts due from related parties | 13,797 | 12,688 | ||||
| Derivative assets | — | 2,100 | ||||
| Total current assets | 220,384 | 229,832 | ||||
| Non-current Assets | ||||||
| Vessels, net | 1,653,607 | 1,708,525 | ||||
| Vessels under construction | 41,589 | 62,990 | ||||
| Property, plant and equipment, net | 385 | 395 | ||||
| Intangible assets, net of accumulated amortization | 406 | 387 | ||||
| Equity method investments | 253,729 | 256,825 | ||||
| Derivative assets | 7,191 | 2,828 | ||||
| Right-of-use asset | 2,088 | 2,056 | ||||
| Other non-current assets | 1,250 | 2,500 | ||||
| Total non-current assets | 1,960,245 | 2,036,506 | ||||
| Total Assets | $ | 2,180,629 | $ | 2,266,338 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current Liabilities | ||||||
| Current portion of secured term loan facilities, net of deferred financing costs | $ | 250,087 | $ | 124,291 | ||
| Current portion of operating lease liabilities | 1,180 | 1,215 | ||||
| Accounts payable | 13,823 | 13,674 | ||||
| Accrued expenses and other liabilities | 24,334 | 35,887 | ||||
| Accrued interest | 4,835 | 6,558 | ||||
| Deferred income | 24,514 | 26,692 | ||||
| Total current liabilities | 318,773 | 208,317 | ||||
| Non-current Liabilities | ||||||
| Secured term loan facilities and revolving credit facilities, net of current portion and deferred financing costs | 504,995 | 679,324 | ||||
| Senior unsecured bond, net of deferred financing costs | 98,446 | 98,527 | ||||
| Operating lease liabilities, net of current portion | 2,574 | 2,344 | ||||
| Deferred tax liabilities | 9,477 | 8,987 | ||||
| Total non-current liabilities | 615,492 | 789,182 | ||||
| Total Liabilities | 934,265 | 997,499 | ||||
| Stockholders’ Equity | ||||||
| Common stock— | 695 | 694 | ||||
| Additional paid-in capital | 800,800 | 801,152 | ||||
| Accumulated other comprehensive loss | (548 | ) | (154 | ) | ||
| Retained earnings | 404,522 | 426,165 | ||||
| Total Navigator Holdings Ltd. Stockholders’ Equity | 1,205,469 | 1,227,857 | ||||
| Non-controlling interest | 40,895 | 40,982 | ||||
| Total equity | 1,246,364 | 1,268,839 | ||||
| Total Liabilities and Stockholders’ Equity | $ | 2,180,629 | $ | 2,266,338 | ||
| NAVIGATOR HOLDINGS LTD. Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) | |||||||||||||||||||
| For the Three Months Ended March 31, 2025 | |||||||||||||||||||
| (in thousands, except share data) | |||||||||||||||||||
| Common stock | |||||||||||||||||||
| Number of shares | Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Non-Controlling Interest | Total | |||||||||||||
| January 1, 2025 | 69,397,648 | $ | 695 | $ | 800,800 | $ | (548 | ) | $ | 404,522 | $ | 40,895 | $ | 1,246,364 | |||||
| Restricted shares issued | — | — | — | — | — | — | — | ||||||||||||
| Unrestricted shares issued | 243 | — | — | — | — | — | — | ||||||||||||
| Net income | — | — | — | — | 27,036 | 1,687 | 28,723 | ||||||||||||
| Foreign currency translation | — | — | — | 394 | — | — | 394 | ||||||||||||
| Dividend declared | — | — | — | — | (3,463 | ) | (1,600 | ) | (5,063 | ) | |||||||||
| Repurchase of common stock | (136,295 | ) | (1 | ) | — | — | (1,930 | ) | — | (1,931 | ) | ||||||||
| Share-based compensation plan | — | — | 352 | — | — | — | 352 | ||||||||||||
| March 31, 2025 | 69,261,596 | $ | 694 | $ | 801,152 | $ | (154 | ) | $ | 426,165 | $ | 40,982 | $ | 1,268,839 | |||||
For the Three Months Ended March 31, 2024 | |||||||||||||||||
| (in thousands, except share data) | |||||||||||||||||
| Common stock | |||||||||||||||||
| Number of shares | Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Non-Controlling Interest | Total | |||||||||||
| January 1, 2024 | 73,208,586 | $ | 733 | $ | 799,472 | $ | (152 | ) | $ | 390,221 | $ | 42,800 | $ | 1,233,074 | |||
| Restricted shares issued | 1,185 | — | — | — | — | — | — | ||||||||||
| Unrestricted shares issued | — | — | — | — | — | — | — | ||||||||||
| Net income | — | — | — | — | 22,573 | 2,346 | 24,919 | ||||||||||
| Foreign currency translation | — | — | — | 34 | — | — | 34 | ||||||||||
| Dividend declared | — | — | — | — | — | — | — | ||||||||||
| Repurchase of common stock | (52,630 | ) | — | — | — | (801 | ) | — | (801 | ) | |||||||
| Share-based compensation plan | — | — | 89 | — | — | — | 89 | ||||||||||
| March 31, 2024 | 73,157,141 | $ | 733 | $ | 799,561 | $ | (118 | ) | $ | 411,993 | $ | 45,146 | $ | 1,257,315 | |||
See accompanying notes to condensed unaudited consolidated financial statements.
| NAVIGATOR HOLDINGS LTD. Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||
| Three months ended March 31, 2024 | Three months ended March 31, 2025 | |||||
| (in thousands) | ||||||
| Cash flows from operating activities | ||||||
| Net Income | $ | 24,919 | $ | 28,723 | ||
| Adjustments to reconcile net income to net cash provided by operating activities | ||||||
| Unrealized loss on non-designated derivative instruments | 447 | 2,262 | ||||
| Depreciation and amortization | 33,440 | 34,186 | ||||
| Payment of drydocking costs | (4,565 | ) | (4,202 | ) | ||
| Share-based compensation expense | 89 | 352 | ||||
| Amortization of deferred financing costs | 841 | 790 | ||||
| Share of results of equity method investments | (4,390 | ) | 904 | |||
| Deferred taxes | 692 | (490 | ) | |||
| Repayments under operating lease obligations | (103 | ) | (397 | ) | ||
| Other Income | — | (4,801 | ) | |||
| Other unrealized foreign exchange loss | 306 | 781 | ||||
| Changes in operating assets and liabilities | ||||||
| Accounts receivable | (6,372 | ) | (3,870 | ) | ||
| Insurance claims receivables | (1,499 | ) | (2,662 | ) | ||
| Bunkers and lubricant oils | (1,531 | ) | (1,778 | ) | ||
| Accrued income, prepaid expenses and other current assets | (7,889 | ) | (2,907 | ) | ||
| Accounts payable, accrued interest, accrued expenses and other liabilities | 1,542 | 15,304 | ||||
| Amounts from related parties | 13,092 | 1,110 | ||||
| Net cash provided by operating activities | 49,019 | 63,305 | ||||
| Cash flows from investing activities | ||||||
| Additions to vessels and equipment | — | (83,741 | ) | |||
| Vessels under construction | — | (20,580 | ) | |||
| Contributions to equity method investments | (8,000 | ) | (4,000 | ) | ||
| Distributions from equity method investments | 6,368 | — | ||||
| Investment in preferred securities | — | (1,250 | ) | |||
| Insurance recoveries | 1,012 | 2,014 | ||||
| Net cash used in investing activities | (620 | ) | (107,557 | ) | ||
| Cash flows from financing activities | ||||||
| Proceeds from secured term loan facilities and revolving credit facilities | — | 74,600 | ||||
| Direct financing cost of secured term loan and revolving credit facilities | — | (261 | ) | |||
| Repurchase of share capital | (801 | ) | (1,931 | ) | ||
| Repayment of secured term loan facilities and revolving credit facilities | (31,076 | ) | (26,344 | ) | ||
| Repayment of refinancing of vessel to related parties | (1,644 | ) | — | |||
| Dividend paid to non-controlling interest | — | (1,600 | ) | |||
| Dividends paid | — | — | ||||
| Net cash (used in)/provided by financing activities | (33,521 | ) | 44,464 | |||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (880 | ) | (991 | ) | ||
| Net increase/(decrease) in cash, cash equivalents and restricted cash | 13,998 | (779 | ) | |||
| Cash, cash equivalents and restricted cash at beginning of period | 158,242 | 139,797 | ||||
| Cash, cash equivalents and restricted cash at end of period | $ | 172,240 | $ | 139,018 | ||
| Supplemental Information | ||||||
| Total interest paid during the period, net of amounts capitalized | $ | 17,389 | $ | 10,488 | ||
| Total tax paid during the period | $ | 344 | $ | 451 | ||
Notes to the Condensed Consolidated Financial Statements (Unaudited)
1. General Information and Basis of Presentation
General Information
Navigator Holdings Ltd. (the “Company”), the ultimate parent company of the Navigator Group of companies, is registered in the Republic of the Marshall Islands. The Company has a core business of owning and operating a fleet of liquefied gas carriers. As of March 31, 2025, the Company owned and operated 59 gas carriers (the “Vessels”) each having a cargo capacity of between 3,770 cbm and 38,000 cbm, of which 25 were ethylene and ethane-capable vessels.
The Company entered into a joint venture (the “Navigator Greater Bay Joint Venture”) with Greater Bay Gas Co. Ltd. (“Greater Bay Gas”) in September 2022, which joint venture entity has acquired two 17,000 cbm, 2018-built ethylene-capable liquefied gas carriers and three 22,000 cbm, 2019-built ethylene capable liquefied gas carriers.
The Company owns a
Unless the context otherwise requires, all references in the consolidated financial statements to “our”,” we” and “us” refer to the Company.
Basis of Presentation
These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and related Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In our opinion, all adjustments consisting of normal recurring items, necessary for a fair statement of financial position, operating results and cash flows have been included in the unaudited interim condensed consolidated financial statements and related notes. The unaudited interim condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2024 included in our Annual Report on Form 20-F filed with the SEC on March 25, 2025 (the “2024 Annual Report”). The year-end condensed balance sheet data was derived from the audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. The results for the three months ended March 31, 2025, are not necessarily indicative of results for the year ending December 31, 2025, or any other future periods.
In preparing these unaudited condensed consolidated financial statements, the Company has disaggregated certain income statement line items. This disaggregation was performed to enhance clarity and to provide users with greater insight into the Company’s financial position. Unrealized foreign exchange gains and losses are now separately disclosed and disaggregated from interest expense. Prior period balances have been reclassified to conform to the current period presentation.
The accompanying unaudited condensed consolidated financial statements include the accounts of the Company, its subsidiaries and variable interest entities (“VIE”) for which the Company is a primary beneficiary (please read Note 15—Variable Interest Entities for additional information). All intercompany accounts and transactions have been eliminated on consolidation.
The results of operations are subject to seasonal and other fluctuations and are therefore not necessarily indicative of results that may otherwise be expected for the entire year.
Management has evaluated the Company’s ability to continue as a going concern and considered the conditions and events that could raise substantial doubt about the Company’s ability to continue as a going concern within 12 months after these financial statements are issued. As part of the evaluation, and among other things, management has considered the following:
- our current financial condition and liquidity sources, including current funds available and forecasted future cash flows;
- the severity and duration of any world events and armed conflicts, including the Russian-Ukraine war, conflicts in the Israel-Gaza region and the broader conflict in the Middle East involving Iran and other nations, and associated repercussions to supply and demand for oil and gas and the economy generally as well as possible effects of trade disruptions and trade tariffs;
- environmental regulations such as those affecting vessels' Energy Efficiency Existing Ship Index (“EEXI”)
Following the signing of the May 2025 Facility, the substantial doubt over the Company's ability to continue as a going concern that was disclosed in both the Company’s Preliminary Fourth Quarter and Financial Year 2024 Results (Unaudited) released on March 12, 2025 and in the Company’s Annual Report on Form 20-F for the Year Ended December 31, 2024 released on March 25, 2025, has been alleviated.
Following the evaluation Management has determined that it is appropriate to continue to adopt the going concern basis in preparing the financial statements.
A discussion of the Company’s significant accounting policies can be found in the Company’s consolidated financial statements included in the Company's 2024 Annual Report. There have been no material changes to these policies in the three months ended March 31, 2025.
Recent Accounting Pronouncements
New accounting standards issued as of March 31, 2025 may affect future reporting by Navigator Holdings Ltd. The Company's 2024 Annual Report contains a list of such accounting pronouncements that may be relevant in the future. No new accounting pronouncements have had a material impact on the financial reporting by the Company for the three months ended March 31, 2025.
2. Operating Revenues
The following table discloses operating revenues by contract type for the three months ended March 31, 2025 and 2024:
| Three months ended March 31, 2024 | Three months ended March 31, 2025 | |||
| (in thousands) | ||||
| Time charters | $ | 89,089 | $ | 87,184 |
| Voyage charters | 31,931 | 52,719 | ||
| Operating revenues from Unigas Pool | 13,135 | 11,504 | ||
| Total operating revenues | $ | 134,155 | $ | 151,407 |
Time Charter Revenue
As of March 31, 2025, 34 of the Company’s 50 operated vessels (excluding the nine vessels operating within the independently managed Unigas Pool) were subject to time charters, 28 of which will expire within one year and 6 of which will expire within three years from the balance sheet date (December 31, 2024: 32 of the Company’s 47 operated vessels were subject to time charters, 23 of which will expire within one year, 9 of which will expire within three years). The estimated undiscounted cash flows for committed time charter revenue that are expected to be received on an annual basis for ongoing time charters, as of March 31, 2025, are as follows:
| (in thousands of U.S. dollars) | ||
| Within 1 year | $ | 196,107 |
| In the second year | $ | 35,255 |
| In the third year | $ | 21,380 |
| In the fourth year | $ | 1,620 |
For time charter revenue accounted for under ASC 842, the amount of accrued income on the Company’s unaudited condensed consolidated balance sheet as of March 31, 2025, was
Voyage Charter Revenue
Voyage charter revenue, which includes revenue from contracts of affreightment, are shown net of address commissions.
As of March 31, 2025, for voyage charter and contract of affreightment services accounted for under ASC 606, the amount of contract assets reflected within accrued income on the Company’s unaudited condensed consolidated balance sheet was
The period opening and closing balance of receivables from voyage charters, including contracts of affreightment, was
The amount allocated to costs incurred to fulfill a contract with a charterer, which are costs incurred following the commencement of a contract or charter party but before the loading of the cargo commences, was
3. Vessels
| Vessels | Drydocking | Total | ||||||
| (in thousands) | ||||||||
| Cost | ||||||||
| January 1, 2025 | $ | 2,467,396 | $ | 86,045 | $ | 2,553,441 | ||
| Vessels acquisitions | 83,741 | — | 83,741 | |||||
| Additions | — | 5,294 | 5,294 | |||||
| Write-off of fully amortized assets | — | (3,035 | ) | (3,035 | ) | |||
| March 31, 2025 | 2,551,137 | 88,304 | 2,639,441 | |||||
| Accumulated Depreciation | ||||||||
| January 1, 2025 | 854,346 | 45,488 | 899,834 | |||||
| Charge for the period | 28,379 | 5,738 | 34,117 | |||||
| Write-off of fully amortized assets | — | (3,035 | ) | (3,035 | ) | |||
| March 31, 2025 | 882,725 | 48,191 | 930,916 | |||||
| Net Book Value | ||||||||
| December 31, 2024 | 1,613,050 | 40,557 | 1,653,607 | |||||
| March 31, 2025 | $ | 1,668,412 | $ | 40,113 | $ | 1,708,525 | ||
On January 7, 2025, the Company entered into an agreement to acquire three German-built 17,000 cubic meter capacity, ethylene-capable liquefied gas vessels (the "Purchased Vessels"). On February 19, 2025, the Company acquired the first of the three Purchased Vessels, now renamed Navigator Hyperion for
The cost and net book value of the 34 vessels that were contracted under time charter arrangements (please read Note 2—Operating Revenue for additional information) was
The net book value of vessels that serve as collateral for the Company’s secured term loan and revolving credit facilities (please read Note 6. Secured Term Loan Facilities and Revolving Credit Facilities, for additional information) was
4. Vessels Under Construction
On August 20, 2024 the Company entered into contracts to build two new 48,500 cubic meter capacity liquefied ethylene gas carriers with Jiangnan Shipyard (Group) Co., Ltd. and China Shipbuilding Trading Co., Ltd., in China (the “Original Newbuild Vessels”). On November 21, 2024, the Company exercised an option and entered into contracts to build two additional newbuild vessels of the same specification and price (the “Additional Newbuild Vessels”). The Original Newbuild Vessels and the Additional Newbuild Vessels, (Navigator Polaris, Navigator Proxima, Navigator Parsec, and Navigator Pleione), are scheduled to be delivered to the Company in March 2027, July 2027, November 2027 and January 2028 respectively, at an average shipyard price of
| Year ended December 31, 2024 | Three months ended March 31, 2025 | |||
| (in thousands) | ||||
| Vessels under construction at January 1, | $ | — | $ | 41,589 |
| Payments to Shipyards | 41,208 | 20,580 | ||
| Capitalized interest | 381 | 821 | ||
| Vessel under construction at December 31, 2024 and March 31, 2025 | $ | 41,589 | $ | 62,990 |
Interest expense of
5. Equity Method Investments
Interests in investments are accounted for using the equity method and are recognized initially at cost and subsequently include the Company’s share of the profit or loss and other comprehensive income of the equity-accounted investees. We disclose our proportionate share of profits and losses from equity method unconsolidated affiliates in the statement of operations and adjust the carrying amount of our equity method investments on the balance sheet accordingly.
Share of results from equity method investments, excluding amortized costs, recognized in the share of results of equity method investments for the three months ended March 31, 2025, was a loss of
As of December 31, 2024, and March 31, 2025, we had the following participation interests in investments that are accounted for using the equity method:
| December 31, 2024 | March 31, 2025 | |||
| Enterprise Navigator Ethylene Terminal L.L.C. ("Export Terminal Joint Venture") | 50 | % | 50 | % |
| Unigas International B.V. ("Unigas") | 33.3 | % | 33.3 | % |
| Dan Unity CO2 A/S ("Dan Unity") | 50 | % | 50 | % |
| Luna Pool Agency Limited ("Luna Pool Agency") | 50 | % | 50 | % |
| Azane Fuel Solutions AS ("Azane") | 9.5 | % | 9.5 | % |
| Bluestreak CO2 Limited ("Bluestreak") | 50 | % | 50 | % |
The table below shows the movement in the Company’s equity method investments, for the year ended December 31, 2024, and three months ended March 31, 2025:
| Year ended December 31, 2024 | Three months ended March 31, 2025 | |||||
| (in thousands) | ||||||
| Equity method investments at January 1, 2024 and 2025 | $ | 174,910 | $ | 253,729 | ||
| Equity contributions to joint venture entity | 89,000 | 4,000 | ||||
| Share of results | 16,911 | (904 | ) | |||
| Distributions received from equity method investments | (27,092 | ) | — | |||
| Equity method investments at December 31, 2024 and March 31, 2025 | $ | 253,729 | $ | 256,825 | ||
Enterprise Navigator Ethylene Terminal L.L.C. (“Export Terminal Joint Venture”)
In January 2018, the Company entered into definitive agreements creating the Export Terminal Joint Venture. As of March 31, 2025, the Company has contributed
Capitalized interest and associated costs are being amortized over the estimated useful life of the Ethylene Export Terminal, which began commercial operations with the export of commissioning cargoes in December 2019. As of March 31, 2025 the unamortized difference between the carrying amount of the investment in the Export Terminal Joint Venture and the amount of the Company’s underlying equity in net assets of the Export Terminal Joint Venture was
Unigas International B.V. ("Unigas")
Unigas based in the Netherlands is an independent commercial and operational manager of seagoing vessels capable of carrying liquefied petrochemical and petroleum gases on a worldwide basis. Unigas is the operator of the Unigas pool. The Company owns a
Dan Unity CO2 A/S ("Dan Unity")
In June 2021, one of the Company’s subsidiaries entered into a shareholder agreement creating the joint venture Dan Unity, a Danish entity, to undertake commercial and technical projects relating to seaborne transportation of CO2.
We account for our investment using the equity method and we exercise joint control over the operating and financial policies of Dan Unity. As of March 31, 2025, we have recognized the Company’s initial investment at cost along with the Company’s share of the profit or loss and other comprehensive income of equity accounted investees.
Luna Pool Agency Limited ("Luna Pool Agency")
In March 2020, the Company collaborated with Pacific Gas Pte. Ltd. and Greater Bay Gas Co. Ltd. ("Greater Bay Gas”) to form and manage the Luna Pool. As part of the formation, Luna Pool Agency Limited (the “Luna Pool Agency”) was incorporated in May 2020. The pool participants jointly own the Luna Pool Agency on an equal basis, and both have equal board representation. As of March 31, 2025, we have recognized the Company’s initial investment of one British pound in the Luna Pool Agency within equity method investments on our consolidated balance sheet. The Luna Pool Agency has no activities other than as a legal custodian of the Luna Pool bank account and there will be no variability in its financial results as it has no income and its minimal operating expenses are reimbursed by the Pool Participants.
Azane Fuel Solutions AS ("Azane")
Azane, a joint venture between ECONNECT Energy AS and Amon Maritime AS, both of Norway, was founded in Norway in 2020 as a company that develops proprietary technology and services for ammonia fuel handling to facilitate the transition to green fuels for shipping. The Company acquired a
Azane intends to build the world’s first ammonia bunkering network and operate ammonia bunkering infrastructure. Azane intends to become the missing link between ammonia production, and trade and vessels wishing to use ammonia as fuel. Future value creation for Azane is expected to come through international expansion with its bunkering solutions and broadening of its offerings in ammonia fuel handling technology.
Bluestreak CO2 Limited ("Bluestreak")
Bluestreak is a
6. Secured Term Loan Facilities and Revolving Credit Facilities
The following table shows the breakdown of all secured term loan facilities, revolving credit facilities and total deferred financing costs split between current and non-current liabilities at December 31, 2024 and March 31, 2025:
| December 31, 2024 | March 31, 2025 | |||||
| (in thousands) | ||||||
| Current Liabilities | ||||||
| Current portion of secured term loan facilities and revolving credit facilities | $ | 252,333 | $ | 126,413 | ||
| Less: current portion of deferred financing costs | (2,246 | ) | (2,122 | ) | ||
| Current portion of secured term loan facilities and revolving credit facilities, net of deferred financing costs | 250,087 | 124,291 | ||||
| Non-Current Liabilities | ||||||
| Secured term loan facilities and revolving credit facilities net of current portion, excluding amount due to related parties | 508,226 | 682,400 | ||||
| Less: non-current portion of deferred financing costs | (3,231 | ) | (3,076 | ) | ||
| Non-current secured term loan facilities and revolving credit facilities, net of current portion and non-current deferred financing costs | $ | 504,995 | $ | 679,324 | ||
On February 7, 2025, the Company entered into a
7. Senior Unsecured Bonds
On October 17, 2024, the Company issued an aggregate principal amount of
On March 28, 2025, pursuant to an addendum (the “March 2025 Bond Tap Issue Addendum”), the Company completed an additional aggregate principal amount of
The October 2024 Bonds (and the March 2025 Bond Tap Issue under the same bond terms) are governed by Norwegian law and they are required to be listed on the Nordic ABM within 9 months of issuance.
The following table shows the breakdown of our Senior Unsecured Bonds and total deferred financing costs as of March 31, 2025 and December 31, 2024:
| December 31, 2024 | March 31, 2025 | |||||
| (in thousands) | ||||||
| Total costs of bonds | $ | 100,000 | $ | 100,000 | ||
| Additional Issuance | — | — | ||||
| Less deferred financing costs | (1,554 | ) | (1,473 | ) | ||
| Total bonds, net of deferred financing costs | $ | 98,446 | $ | 98,527 | ||
8. Derivative Instruments Accounted for at Fair Value
The following table includes the estimated fair value of those assets and liabilities that are measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024.
| December 31, 2024 | March 31, 2025 | ||||
| (in thousands) | |||||
| Fair Value Hierarchy Level | Fair Value Asset | Fair Value Asset | |||
| Interest rate swap agreements | Level 2 | ||||
The Company uses derivative instruments in accordance with its overall risk management policy to mitigate the risk of unfavorable movements in interest rates.
The Company held no derivatives designated as hedges as of March 31, 2025 or December 31, 2024.
Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. The fair value accounting standard establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2—Include other inputs that are directly or indirectly observable in the marketplace.
Level 3—Unobservable inputs which are supported by little or no market activity.
Interest Rate risk
The Company has a number of existing vessel loan facilities with associated fixed interest rate swaps. As of March 31, 2025, the interest rate swaps had a positive fair value to the Company of
These fixed interest rate swaps are typically entered into with the financial institutions that are also lenders under the loan facilities. The interest rate payable by the Company under these interest rate swap agreements is between
All interest rate swaps above are remeasured to fair value at each reporting date and have been categorized as Level Two on the fair value measurement hierarchy. The remeasurement to fair value has no impact on cash flows at the reporting date. There is no requirement for cash collateral to be placed with the swap providers under these swap agreements and there is no effect on restricted cash as of March 31, 2025.
Foreign Currency Exchange Rate risk
All foreign currency-denominated monetary assets and liabilities are revalued and are reported in the Company’s functional currency based on the prevailing exchange rate at the end of the period. These foreign currency transactions fluctuate based on the strength of the U.S. Dollar. The remeasurement of all foreign currency-denominated monetary assets and liabilities at each reporting date results in unrealized foreign currency exchange differences which do not impact our cash flows.
Credit risk
The Company is exposed to credit losses in the event of non-performance by the counterparties to its interest rate swap agreements. As of March 31, 2025, the Company is exposed to credit risk as the interest rate swaps were in an asset position from the perspective of the Company. In order to minimize counterparty risk, the Company only enters into derivative transactions with counterparties that are reputable financial institutions, highly rated by a recognized rating agency.
The fair value of our interest rate swap agreements is the estimated amount that we would pay/receive to sell or transfer the swap at the reporting date, taking into account current interest rates and the current credit worthiness of the swap counterparties. The estimated amount is the present value of future cash flows, adjusted for credit risk. The Company transacts all of these derivative instruments through investment-grade rated financial institutions at the time of the transaction. The amount recorded as a derivative asset or liability could vary by a material amount in the near term if credit markets are volatile or if credit risk were to change significantly.
The fair value of our interest rate swap agreements at the end of each period is most significantly affected by the interest rate implied by the benchmark interest yield curve, including its relative steepness. Interest rates and foreign exchange rates may experience significant volatility in both the short and long term. While the fair value of our swap agreements is typically more sensitive to changes in short-term rates, significant changes in long-term benchmark interest, foreign exchange rates and the credit risk of the counterparties of the Company may also materially impact the fair values of our swap agreements.
9. Financial Instruments Not Accounted for at Fair Value
The principal financial assets of the Company as of March 31, 2025, and December 31, 2024, consist of cash, cash equivalents, and restricted cash and accounts receivable. The principal financial liabilities of the Company as of March 31, 2025, and December 31, 2024, consist of accounts payable, accrued expenses and other liabilities, secured term loan facilities, revolving credit facilities and the 2024 Bonds and do not include deferred financing costs.
The carrying values of cash, cash equivalents and restricted cash, accounts receivable, accounts payable, accrued expenses and other liabilities are reasonable estimates of their fair value due to the short-term nature or liquidity of these financial instruments.
Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. The fair value accounting standard establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2—Include other inputs that are directly or indirectly observable in the marketplace.
Level 3—Unobservable inputs which are supported by little or no market activity.
The October 2024 Bonds (including the Marc 2025 Bond Tap Issue) are classified as a Level 2 liability and the fair values have been calculated based on indirectly observed data based on the most recent trades prior to March 31, 2025. These trades are infrequent and therefore not considered to be an active market.
The fair value of secured term loan facilities and revolving credit facilities is estimated to approximate the carrying value in the balance sheet since they bear a variable interest rate, which is reset quarterly. This has been categorized at Level 2 on the fair value measurement hierarchy as of March 31, 2025.
The following table includes the estimated fair value and carrying value of those assets and liabilities where fair value approximates carrying value. The table excludes cash, cash equivalents, restricted cash, accounts receivable, accounts payable, accrued expenses and other liabilities because the fair value approximates carrying value and, for accounts receivable and payable, are due in one year or less.
| December 31, 2024 | March 31, 2025 | |||||||||||||
| (in thousands) | ||||||||||||||
| Fair Value Hierarchy Level | Carrying Amount (Liability) | Fair Value (Liability) | Fair Value Hierarchy Level | Carrying Amount (Liability) | Fair Value (Liability) | |||||||||
| 2024 Bonds (Note 7) | Level 2 | $ | (100,000 | ) | $ | (100,500 | ) | Level 2 | $ | (100,000 | ) | $ | (100,000 | ) |
| Secured term loan facilities and revolving credit facilities (Note 6) | Level 2 | $ | (810,497 | ) | $ | (810,497 | ) | Level 2 | $ | (808,813 | ) | $ | (808,813 | ) |
10. Earnings Per Share
Basic earnings per share is calculated by dividing the net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by adjusting the weighted average number of common shares used for calculating basic earnings per share for the effects of all potentially dilutive shares. The following table shows the calculation of both the basic and diluted number of weighted average outstanding shares for the three months ended March 31, 2025 and 2024:
| Three months ended March 31, 2024 | Three months ended March 31, 2025 | |||
| (in thousands except for share data) | ||||
| Net Income attributable to stockholders of Navigator Holdings Ltd. | $ | 22,573 | $ | 27,036 |
| Basic weighted average number of shares | 73,209,771 | 69,380,259 | ||
| Effect of dilutive potential share options | 547,393 | 713,206 | ||
| Diluted weighted average number of shares | 73,757,164 | 70,093,465 | ||
| Earnings per share attributable to stockholders of Navigator Holdings Ltd.: | ||||
| Basic earnings per share | $ | 0.31 | $ | 0.39 |
| Diluted earnings per share | $ | 0.31 | $ | 0.39 |
11. Share-Based Compensation
Share Awards
On March 17, 2025, 11,932 shares which were granted in 2022 to officers and employees of the Company, all of which had a weighted average grant value of
On April 15, 2024, under the Navigator Holdings Ltd. 2023 Long-Term Incentive Plan (the “2023 Plan”) the Company granted a total of 54,851 restricted shares, 41,291 of which were granted to non-employee directors and 13,560 of which were granted to the officers and employees of the Company. The weighted average value of the 54,851 shares granted was
On March 17, 2024 under the Navigator Holdings Ltd. 2013 Long-Term Incentive Plan (the “2013 Plan”), 31,833 shares which were previously granted to non-employee directors under the 2013 Plan with a weighted average grant value of
Restricted share grant activity for the year ended December 31, 2024, and the three months ended March 31, 2025, was as follows:
| Number of non-vested restricted shares | Weighted average grant date fair value | Weighted average remaining contractual term (years) | |||
| Balance as of January 1, 2024 | 85,378 | $ | 11.44 | 0.81 | |
| Granted | 54,851 | 15.05 | |||
| Vested | (61,944 | ) | 11.88 | ||
| Balance as of December 31, 2024 | 78,285 | 13.62 | 0.75 | ||
| Granted | — | — | |||
| Vested | (11,932 | ) | 10.65 | ||
| Balance as of March 31, 2025 | 66,353 | $ | 14.15 | 0.5 | |
We account for forfeitures as they occur. Using the graded straight-line method of expensing the restricted stock grants, the weighted average estimated value of the shares calculated at the date of grant is recognized as compensation cost in the unaudited condensed consolidated statement of operations over the period to the vesting date.
During the three months ended March 31, 2025, the Company recognized
As of March 31, 2025, there was a total of
Share Options
Share options issued under the 2013 Plan and the 2023 Plan are exercisable between the third and tenth anniversary of the grant date, after which they lapse. The fair value of any option issued is calculated on the date of the grant based on the Black-Scholes valuation model. Expected volatility is based on the historic volatility of the Company’s stock price and other factors. The expected term of the options granted is anticipated to occur in the range between 4 and 6.5 years. The risk-free rate is the rate adopted from the U.S. Government Zero Coupon Bond.
The movements in the outstanding share options during the year ended December 31, 2024, and the three months ended March 31, 2025, were as follows:
| Number of options outstanding | Weighted average exercise price per share | Aggregate intrinsic value4 | ||||
| Balance as of January 1, 2024 | 547,393 | $ | 18.25 | $ | — | |
| Issuance during the year | 339,592 | 17.94 | ||||
| Expired during the year | (153,538 | ) | 24.22 | — | ||
| Balance as of December 31, 2024 | 733,447 | 16.86 | — | |||
| Expired during the period | (121,443 | ) | 17.80 | — | ||
| Balance as of March 31, 2025 | 612,004 | $ | 16.67 | $ | 40,700 | |
____________________
4 The aggregate intrinsic value of stock options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for options that had exercise prices lower than the fair value of the Company’s share price.
The weighted-average remaining contractual term of options outstanding and exercisable at March 31, 2025 was 4.57 years (December 31, 2024: 4.05 years).
During the three months ended March 31, 2025, the Company recognized
As of March 31, 2025 there was
Save as you Earn Share Scheme
The Company has employee stock purchase plans in place which is a savings-related share scheme where certain employees have the option to buy common stock at a
12. Commitments and Contingencies
The schedule below summarizes our future contractual obligations as of March 31, 2025:
| 2025 | 2026 | 2027 | 2028 | 2029 | Thereafter | Total | ||||||||
| (in thousands) | ||||||||||||||
| Secured term loan facilities and revolving credit facilities | $ | 225,988 | $ | 195,921 | $ | 81,644 | $ | 131,822 | $ | 98,933 | $ | 74,505 | $ | 808,813 |
| 2024 Bonds | — | — | — | — | 100,000 | — | 100,000 | |||||||
| Vessels under construction (1) | 41,160 | 92,610 | 216,090 | — | — | — | 349,860 | |||||||
| Office operating leases (2) | 1,033 | 1,215 | 1,427 | 131 | 23 | — | 3,829 | |||||||
| Total contractual obligations | $ | 268,181 | $ | 289,746 | $ | 299,161 | $ | 131,953 | $ | 198,956 | $ | 74,505 | $ | 1,262,502 |
- The Company entered into four contracts to build four new 48,500 cubic meter capacity liquefied ethylene gas carriers with Jiangnan Shipyard (Group) Co., Ltd. and China Shipbuilding Trading Co., Ltd., in China. The Newbuild Vessels are under construction and are scheduled to be delivered to the Company in March 2027, July 2027 November 2027 and January 2028 respectively, at an average shipyard price of
$102.9 million per vessel. - The Company occupies office space in London with a lease that commenced in January 2022 for a period of 10 years with a mutual break option in January 2027, which is the fifth anniversary of the lease commencement date. The lease payments are dependent on foreign exchange rates and the gross rent per year payable in GBP is approximately
$1.1 million , with an initial rent-free period of 27 months, of which 13 months of the rent free period is repayable in the event that the break option is exercised.
The Company occupies office space in Copenhagen with a lease that commenced in September 2021 and expires in June 2025. The lease payments are dependent on foreign exchange rates and the gross rent per year payable in Danish Kroner is approximately
The lease term for our office in Gdynia, Poland which commenced in April 2024 is for a period of 5 years to March 30, 2029. The lease payments are dependent on foreign exchange rates and the gross rent per year payable in Euros is approximately
The Company entered into a lease for office space in Houston that expired on March 31, 2025. The annual gross rent under this lease payable in U.S. Dollars was approximately
13. Operating Lease Liabilities
The Company’s unaudited condensed consolidated balance sheet includes a right-of-use (“ROU”) asset and a corresponding liability for operating lease contracts where the Company is a lessee. The discount rate used to measure the lease liability presented on the Company’s unaudited condensed consolidated balance sheet is the incremental cost of borrowing since the rate implicit in the lease cannot be determined.
The liabilities described below are for the Company’s offices in London, Gdynia, Copenhagen and Houston which are denominated in various currencies. At March 31, 2025, the weighted average discount rate across the four leases was
At March 31, 2025, based on the remaining lease liabilities, the weighted average remaining operating lease term was 1.99 years (December 31, 2024: 3.12 years).
Under ASC 842, the ROU asset is a non-monetary asset and is remeasured into the Company’s reporting currency using the exchange rate for the applicable currency as at the adoption date of ASC 842. The operating lease liability is a monetary liability and is remeasured quarterly using current exchange rates, with changes recognized in a manner consistent with other foreign currency-denominated liabilities within general and administrative expenses in the consolidated statements of comprehensive income.
A maturity analysis of the annual undiscounted cash flows of the Company’s operating lease liabilities as of March 31, 2025 and December 31, 2024, is presented in the following table:
| December 31, 2024 | March 31, 2025 | |||||
| (in thousands) | ||||||
| One year | $ | 1,314 | $ | 1,303 | ||
| Two years | 1,138 | 1,175 | ||||
| Three years | 1,342 | 1,388 | ||||
| Four years | 92 | 95 | ||||
| Five years | 23 | — | ||||
| Total undiscounted operating lease commitments | 3,909 | 3,961 | ||||
| Less: discount adjustment | (155 | ) | (402 | ) | ||
| Total operating lease liabilities | 3,754 | 3,559 | ||||
| Less: current portion | (1,180 | ) | (1,215 | ) | ||
| Operating lease liabilities, non-current portion | $ | 2,574 | $ | 2,344 | ||
14. Cash, Cash Equivalents and Restricted Cash
The following table shows the breakdown of cash, cash equivalents and restricted cash as of March 31, 2025 and December 31, 2024:
| December 31, 2024 | March 31, 2025 | |||
| (in thousands) | ||||
| Cash and cash equivalents | $ | 130,455 | $ | 90,725 |
| Cash and cash equivalents held by VIE | 366 | 307 | ||
| Restricted cash | 8,976 | 47,986 | ||
| Total cash, cash equivalents and restricted cash | $ | 139,797 | $ | 139,018 |
Amounts included in restricted cash represent cash in blocked deposit accounts that are required to be deposited in accordance with the terms of a number of the Company's secured term loans with banking institutions and funds held by our variable interest entity PT Navigator Khatulistiwa ("PTNK"). As a result of allegations relating to the mismanagement of crude oil and oil refinery products at Pertamina between 2018 and 2023 and the ongoing investigation by Indonesian authorities involving the alleged actions of Mr. Adrianto, who serves as a director of PTNK, with respect to Pertamina, approximately
15. Variable Interest Entities
As of March 31, 2025, the Company's VIE’s had total assets and liabilities of
PT Navigator Khatulistiwa
As of December 31, 2024 and March 31, 2025, the Company has consolidated
Navigator Crewing Services Philippines Inc. and Navigator Gas Services Philippines Inc.
We own a
The Company has determined that it has a variable interest in NCSPI and NSSPI and is considered to be the primary beneficiary as a result of having a controlling financial interest in the entities and has the power to direct the activities that most significantly impact NCSPI’s and NSSPI’s economic performance.
OCY Aurora Ltd.
In October 2019, the Company entered into a sale and leaseback to refinance one of its vessels, Navigator Aurora, with OCY Aurora Ltd., a Maltese limited liability company. OCY Aurora Ltd. is a wholly owned subsidiary of Ocean Yield Malta Limited, whose parent is Ocean Yield ASA, a listed company on the Oslo stock exchange. The Company does not hold any shares or voting rights in OCY Aurora Ltd. Under U.S. GAAP the entity, OCY Aurora Ltd, is considered to be a VIE. On October 29, 2024, the Company terminated the sale and leaseback transaction provided by OCY Malta Limited, the parent of OCY Aurora Ltd., and paid
16. Related Party Transactions
The following table summarizes our transactions with related parties for the three months ended March 31, 2025 and 2024:
| Three months ended March 31, 2024 | Three months ended March 31, 2025 | |||||
| (in thousands) | ||||||
| Net income / (expenses) | ||||||
| Luna Pool Agency Limited | $ | (8 | ) | $ | (2 | ) |
| Ocean Yield Malta Limited | (763 | ) | — | |||
| Ultranav Business Support ApS | (15 | ) | (21 | ) | ||
| $ | (786 | ) | $ | (23 | ) | |
The following table sets out the balances due from related parties as of December 31, 2024 and March 31, 2025:
| December 31, 2024 | March 31, 2025 | |||
| (in thousands) | ||||
| Luna Pool Agency Limited | $ | 8,055 | $ | 6,699 |
| Unigas Pool | 5,742 | 5,989 | ||
| $ | 13,797 | $ | 12,688 | |
As of March 31, 2025, Ultranav International ApS held a
During 2021 the Company entered into a Transitional Services Agreement (“TSA”) with Ultranav Business Support ApS (“UBS”) to provide office and reception services. The Company pays UBS a monthly fee for services provided. The TSA agreement with UBS can be terminated by the Company by giving six-months' notice.
17. Subsequent Events
Sale of vessel
On May 13, 2025, the Company sold and delivered Navigator Venus, a 2000-built 22,085 cbm ethylene capable semi-refrigerated handysize vessel to a third party for net proceeds of
New Share Repurchase Plan
On May 13, 2025, the Board of Navigator Holdings Ltd. authorized a new share repurchase plan in relation to Navigator’s common stock. Pursuant to the New Share Repurchase Plan, Navigator may repurchase up to an aggregate of
Return of Capital
On May 14, 2025, the Company's Board of Directors declared a cash dividend of
Also as part of the Company's Return of Capital policy for the quarter ended March 31, 2025, the Company expects to repurchase approximately
May 2025 Term Loan and Revolving Credit Facility
On May 2, 2025, the Company entered into a Senior Secured Term Loan and Revolving Credit Facility for up to
2024 Bonds
On March 28, 2025, the Company completed an additional
Our Fleet
The following table provides details of our vessels as of May 14, 2025:
| Operating Vessel | Year Built | Vessel Size (cbm) | Employment Status | Current Cargo | Time Charter Expiration Date |
| Ethylene/ethane capable semi-refrigerated midsize | |||||
| Navigator Aurora | 2016 | 37,300 | Time Charter | Ethane | December 2026 |
| Navigator Eclipse | 2016 | 37,300 | Time Charter | Ethane | March 2026 |
| Navigator Nova | 2017 | 37,300 | Time Charter | Ethane | September 2026 |
| Navigator Prominence | 2017 | 37,300 | Time Charter | Ethane | March 2026 |
| Ethylene/ethane capable semi-refrigerated handysize** | |||||
| Navigator Pluto | 2000 | 22,085 | Spot Market | Ethane | — |
| Navigator Saturn | 2000 | 22,085 | Spot Market | Ethane | — |
| Navigator Atlas | 2014 | 21,000 | Spot Market | Ethane | — |
| Navigator Europa | 2014 | 21,000 | Time Charter | Ethane | January 2026 |
| Navigator Oberon | 2014 | 21,000 | Time Charter | Ethane | May 2025 |
| Navigator Triton | 2015 | 21,000 | Spot Market | Ethane | — |
| Navigator Umbrio | 2015 | 21,000 | Time Charter | Ethane | January 2026 |
| Navigator Luna | 2018 | 17,000 | Time Charter | Ethane | May 2025 |
| Navigator Solar | 2018 | 17,000 | Time Charter | Ethane | March 2027 |
| Navigator Castor | 2019 | 22,000 | Time Charter | Ethylene | June 2025 |
| Navigator Equator | 2019 | 22,000 | Spot Market | Ethane | — |
| Navigator Vega | 2019 | 22,000 | Spot Market | Ethane | — |
| Navigator Hyperion ** | 2010 | 17,300 | Spot Market | — | — |
| Navigator Titan ** | 2010 | 17,300 | Spot Market | Ethane | — |
| Navigator Vesta ** | 2010 | 17,300 | Spot Market | — | — |
| Ethylene/ethane capable semi-refrigerated smaller size | |||||
| Happy Condor* | 2008 | 9,000 | Unigas Pool | — | — |
| Happy Pelican* | 2012 | 6,800 | Unigas Pool | — | — |
| Happy Penguin* | 2013 | 6,800 | Unigas Pool | — | — |
| Happy Kestrel* | 2013 | 12,000 | Unigas Pool | — | — |
| Happy Osprey* | 2013 | 12,000 | Unigas Pool | — | — |
| Happy Peregrine* | 2014 | 12,000 | Unigas Pool | — | — |
| Happy Albatross* | 2015 | 12,000 | Unigas Pool | — | — |
| Happy Avocet* | 2017 | 12,000 | Unigas Pool | — | — |
| Semi-refrigerated handysize | |||||
| Navigator Aries | 2008 | 20,750 | Time Charter | LPG | May 2025 |
| Navigator Capricorn | 2008 | 20,750 | Time Charter | LPG | November 2025 |
| Navigator Gemini | 2009 | 20,750 | Time Charter | LPG | July 2025 |
| Navigator Pegasus | 2009 | 22,200 | Time Charter | LPG | August 2025 |
| Navigator Phoenix | 2009 | 22,200 | Time Charter | Ammonia | November 2025 |
| Navigator Scorpio | 2009 | 20,750 | Time Charter | LPG | January 2026 |
| Navigator Taurus | 2009 | 20,750 | Time Charter | LPG | June 2025 |
| Navigator Virgo | 2009 | 20,750 | Time Charter | LPG | May 2025 |
| Navigator Leo | 2011 | 20,600 | Spot Market | LPG | — |
| Navigator Libra | 2012 | 20,600 | Time Charter | LPG | April 2026 |
| Navigator Atlantic (Previously Atlantic Gas) | 2014 | 22,000 | Time Charter | LPG | September 2025 |
| Adriatic Gas | 2015 | 22,000 | Time Charter | LPG | December 2025 |
| Navigator Balearic (Previously Balearic Gas) | 2015 | 22,000 | Time Charter | LPG | January 2026 |
| Navigator Celtic (Previously Celtic Gas) | 2015 | 22,000 | Time Charter | LPG | June 2025 |
| Navigator Centauri | 2015 | 21,000 | Time Charter | LPG | May 2027 |
| Navigator Ceres | 2015 | 21,000 | Time Charter | LPG | June 2025 |
| Navigator Ceto | 2016 | 21,000 | Time Charter | LPG | May 2025 |
| Navigator Copernico | 2016 | 21,000 | Time Charter | LPG | May 2025 |
| Bering Gas | 2016 | 22,000 | Spot Market | LPG | — |
| Navigator Luga | 2017 | 22,000 | Time Charter | LPG | December 2025 |
| Navigator Yauza | 2017 | 22,000 | Time Charter | Ammonia | July 2025 |
| Arctic Gas | 2017 | 22,000 | Spot Market | LPG | — |
| Pacific Gas | 2017 | 22,000 | Time Charter | LPG | November 2025 |
| Semi-refrigerated smaller size | |||||
| Happy Falcon* | 2002 | 3,770 | Unigas Pool | — | — |
| Fully-refrigerated | |||||
| Navigator Glory | 2010 | 22,500 | Time Charter | Ammonia | June 2025 |
| Navigator Grace | 2010 | 22,500 | Time Charter | Ammonia | September 2025 |
| Navigator Galaxy | 2011 | 22,500 | Time Charter | Ammonia | December 2025 |
| Navigator Genesis | 2011 | 22,500 | Time Charter | LPG | April 2026 |
| Navigator Global | 2011 | 22,500 | Spot Market | Ammonia | — |
| Navigator Gusto | 2011 | 22,500 | Time Charter | Ammonia | September 2025 |
| Navigator Jorf | 2017 | 38,000 | Time Charter | Ammonia | August 2027 |
* denotes our owned vessels that are commercially managed with the independently managed Unigas Pool.
** the Purchased Vessels (see Note 3 above)
PART II. First Quarter 2025 Conference Call Details
Navigator Holdings Ltd. First Quarter 2025 Earnings Webcast and Presentation
On Thursday, May 15, 2025, at 10:00 A.M. U.S. Eastern Time., the Company’s management team will host an online webcast to present and discuss the financial results for the first quarter of 2025.
Those wishing to participate should register for the webcast using the following details:
https://us06web.zoom.us/webinar/register/WN_m_DP07RkR7-zndu7yk_blA
Webinar ID: 872 5702 6699
Passcode: 369834
Participants can also join by phone by dialing:
United States: +1 929 436 2866
United Kingdom:+44 330 088 5830
A full list of U.S. and international numbers is available via the following link:
The webcast and slide presentation will be available for replay on the Company's website (www.navigatorgas.com) shortly after the end of the webcast.
Participants wishing to join the live webcast are encouraged to do so approximately 5 minutes prior to the start.
About Navigator Gas
Navigator Holdings Ltd. (described herein as “Navigator Gas” or the “Company”) is the owner and operator of the world’s largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation services of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas (“LPG”) and ammonia and owns a
Navigator Gas’ common stock trades on the New York Stock Exchange under the symbol “NVGS”.
For media enquiries or further information, please contact:
Alexander Walster
Head of ESG & Communications
Email: communications@navigatorgas.com
Verde, 10 Bressenden Place, London, SW1E 5DH, UK
Tel: +44 (0)7857 796 052, +44 (0)20 7045 4114
Navigator Gas Investor Relations
Email: investorrelations@navigatorgas.com, randy.giveans@navigatorgas.com
333 Clay Street, Suite 2400, Houston, Texas, U.S.A. 77002
Tel: +1 713 373 6197, +44 (0)20 7340 4850
Investor Relations / Media Advisors
Nicolas Bornozis / Paul Lampoutis
Capital Link – New York
Tel: +1-212-661-7566
Email: navigatorgas@capitallink.com
Category: Financial
FAQ
What were Navigator Gas (NVGS) earnings per share in Q1 2025?
How much is Navigator Gas (NVGS) new share repurchase program?
What dividend did NVGS declare for Q1 2025?
How many vessels did Navigator Gas acquire in Q1 2025?
What is the new capacity of Navigator's Ethylene Export Terminal after expansion?
