Navigator Holdings Ltd. Third Quarter 2023 Results (Unaudited)
Navigator Holdings Ltd. (NYSE: NVGS) declares a cash dividend of $0.05 per share of common stock, payable on December 21, 2023. The company also expects to repurchase $1.1 million of its common stock. Operating revenue for Q3 2023 was $137.8 million, with net income of $19.1 million. The company reported an increase in fleet utilization to 93.4% and a record Adjusted EBITDA of $72.2 million. Additionally, they announced a new investment in Azane Fuel Solutions for 2.7 million EUR.
Positive
The company reports a significant increase in operating revenue and net income for Q3 2023, as well as a record Adjusted EBITDA, indicating strong financial performance.
The investment in Azane Fuel Solutions demonstrates the company's commitment to expanding its portfolio and investing in environmentally friendly technologies.
The declaration of a cash dividend and share repurchase plan reflects the company's confidence in its financial position and its commitment to returning value to shareholders.
11/13/2023 - 05:35 PM
LONDON, Nov. 13, 2023 (GLOBE NEWSWIRE) --
Highlights
On November 13, 2023, the Board declared a cash dividend of $0.05 per share of the common stock of Navigator Holdings Ltd. (the "Company", “Navigator”, "we", "our" and "us") (NYSE: NVGS), for the quarter ended September 30, 2023 (the “Dividend”). The Dividend will be payable on December 21, 2023, to all shareholders of record as of the close of business New York time on December 7, 2023 which would have equated to a quarterly dividend payment of $3.7 million . As part of the Capital Return Policy for the quarter ended September 30, 2023, Navigator expects to repurchase approximately $1.1 million of the Company’s common stock (the “Share Repurchases”) between November 16, 2023 and December 31, 2023, subject to operating needs, market conditions and other circumstances, such that the Dividend and Share Repurchases together equal 25% of net income for the quarter ended September 30, 2023. The company reported operating revenue of $137.8 million for the three months ended September 30, 2023, compared to $106.8 million for the three months ended September 30, 2022. Net Income attributable to stockholders' of Navigator Holdings Ltd. was $19.1 million for the three months ended September 30, 2023, compared to $2.4 million for the three months ended September 30, 2022. Earnings per share was $0.26 for the three months ended September 30, 2023, compared to $0.03 per share for the three months ended September 30, 2022. Adjusted Earnings per share, to exclude unrealized gains or losses on non-designated derivative instruments was $0.27 for the three months ended September 30, 2023, compared to a loss of $0.07 for the three months ended September 30, 2022. Adjusted EBITDA(1) was a record since the Company's IPO of $72.2 million for the three months ended September 30, 2023, compared to $41.5 million for the three months ended September 30, 2022. Fleet utilization increased to 93.4% for the three months ended September 30, 2023, compared to 84.9% for the three months ended September 30, 2022. Average daily time charter equivalent ("TCE") was $26,278 for the three months ended September 30, 2023, compared to $22,022 for the three months ended September 30, 2022. The Ethylene Export Terminal had a throughput during the third quarter of 2023 totaling 249,857 metric tons, compared to 189,140 metric tons during the third quarter of 2022. In September 2023, we purchased an aggregate of $9.0 million of the 2020 Bonds in the open market using cash on hand. These purchased 2020 Bonds have not been canceled or redeemed and the Company intends to hold the bonds to maturity. On October 25, 2023 the Company announced a new investment alongside Yara Growth Ventures to acquire a 14.5% interest in Azane Fuel Solutions for 2.7 million EUR (approximately $3 million ). The first green ammonia bunkering units are scheduled to be delivered in 2025 enabling low carbon fuel offering to shipowners. Ethylene Export Terminal
The Ethylene Export Terminal had a throughput during the third quarter of 2023 totaling 249,857 metric tons, compared to 189,140 metric tons during the third quarter of 2022.
We, together with Enterprise Products Partners L.P, our joint venture partner, have agreed to the Terminal Expansion Project, which is expected to increase the export capacity from approximately one million tons per year to at least 1.55 million tons. Long lead items have already been ordered and construction, which is expected to be completed in the fourth quarter of 2024, has commenced. The total capital contributions required from us to the Export Terminal Joint Venture for the Terminal Expansion Project are expected to be approximately $125 million which the Company expects to finance using existing cash resources, distributions from the Export Terminal Joint Venture during the course of the expansion and additional debt. The Company has made a total of $27 million in capital contributions for the Terminal Expansion Project.
Azane Fuel Solutions Ammonia Bunkering
On October 25, 2023 the Company , together with Yara Growth Ventures, announced that each of them had successfully acquired a 14.5% interest in the Norwegian startup Azane Fuel Solutions AS (“Azane”) for 2.7 million EUR (approximately $3 million ). Azane, a joint venture between ECONNECT Energy AS and Amon Maritime AS was founded in Norway in 2020 to develops proprietary technology and services for ammonia fuel handling, to facilitate the transition to green fuels for shipping.
Subject to customary conditions, Azane intends to build the world’s first ammonia bunkering network, with Yara Clean Ammonia already pre-ordering 15 units from Azane. The investment made by Yara and Navigator is expected to enable Azane to begin construction of its first bunkering unit for ammonia supply in Norway, aiming to kickstart the transition to zero-carbon fuels for maritime transportation. 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.
Purchase of 2020 Unsecured Bonds
On September 10, 2020, we issued senior unsecured bonds in an aggregate principal amount of $100.0 million with Nordic Trustee AS as the bond trustee (the “2020 Bonds”). The 2020 Bonds are governed by Norwegian law and listed on the Nordic ABM which is operated and organized by Oslo Børs ASA.
In September 2023, we purchased an aggregate of $9.0 million of the 2020 Bonds in the open market using cash on hand. These purchased 2020 Bonds have not been canceled or redeemed and the Company intends to hold the bonds to maturity.
Shipping Trends
Utilization across the fleet increased from 89.0% in the second quarter of 2023 to 93.4% in the third quarter of 2023. Utilization during third quarter of 2022 was 84.9% . The increase in utilization of 8.8% is primarily driven by improvement in the market conditions for the ethylene capable vessels in our fleet.
During the third quarter of 2023, the handysize 12-month market assessment for semi-refrigerated and fully refrigerated vessels increased by $12,000 and $20,000 per calendar month (“pcm”), to $800,000 pcm and $772,000 pcm, respectively. The handysize ethylene market assessment increased by $40,000 pcm to $1,000,000 pcm.
During the third quarter of 2023 we experienced downward pressure on the ethylene arbitrage to Asia, this was balanced by increased activity on ethane movements, both transatlantic and to Asia, the latter being relatively long voyages and increasing the ton/mile. Guiding spot rates on the ethylene segment remained flat during the third quarter of 2023, however utilization and time charter assessments have improved.
We have 32 vessels engaged under time charters ("TC") and 15 vessels on spot and contracts of affreightment ("CoA"). Our midsize and fully refrigerated vessels are fully employed on time charters, our semi-refrigerated vessels are employed under time charters and voyage charters, and most of the Ethylene capable vessels are employed on the spot market. From October 31, 2023 to October 31, 2024, we currently expect to have 38% of our ship days covered under time charter.
The fourth quarter of 2023 and the first quarter of 2024 are typically busier seasons for our fleet. We expect to see an increase in spot activity and an increase in time charter assessment as well as a continuation of the positive market developments we have recently seen.
Reconciliation of Non-GAAP Financial Measures
The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the three months ended September 30, 2023 and 2022:
Three months ended Nine months ended September 30, 2022 September 30, 2023 September 30, 2022 September 30, 2023 (in thousands) (in thousands) Net income $ 2,859 $ 21,383 $ 44,623 $ 67,728 Net interest expense $ 12,996 $ 16,421 $ 36,488 $ 44,896 Income taxes $ 426 $ 1,120 $ 1,490 $ 4,269 Depreciation and amortization $ 32,842 $ 32,353 $ 95,661 $ 96,374 EBITDA (1 )$ 49,123 $ 71,277 $ 178,262 $ 213,267 Profit from sale of vessel — $ — 4,941 Unrealized gain / (loss) on non-designated derivative instruments $ 2,541 $ (972 ) $ 12,437 $ (2,028 ) Foreign currency exchange loss/(gain) on senior secured bonds $ 8,218 — $ 12,558 $ — Adjusted EBITDA(1) $ 41,465 $ 72,249 $ 153,267 $ 210,354
1 EBITDA and Adjusted EBITDA are not measurements prepared in accordance with U.S. GAAP (non-GAAP financial measures). EBITDA represents net income before net interest expense, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before profit on sale of vessel, unrealized gain or loss on non-designated derivative instruments and foreign currency exchange gain or loss on senior secured bonds.
Management believes that EBITDA and Adjusted EBITDA are useful to investors in evaluating the operating performance of the Company. EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to consolidated net income, cash generated from operations or any measure prepared in accordance with U.S. GAAP, and our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies.
Navigator Holdings Ltd. Announces Date for the Release of Third Quarter 2023 Results and Zoom
Tomorrow, Tuesday, November 14, 2023 at 10:00 A.M. E.S.T., the Company’s management team will host a Zoom conference call and slide presentation to discuss the financial results.
Zoom Conference Call Details
https://us06web.zoom.us/webinar/register/WN_5Ka5sWGlTnSGNOlXRPq1Rg
Or join by phone:
For a full list of US and international numbers available, please click on the link below:
International Dial-in numbers
Webinar ID: 854 2757 9980
The conference call and slide presentation will be available for replay on Navigator’s website www.navigatorgas.com under Key Dates and All Reports in the Investors Centre section.
Audio Webcast:
About Navigator Gas
Navigator Holdings Ltd., which we sometimes refer to as “Navigator Gas”(NYSE: NVGS), 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 50% share, through a joint venture, in an ethylene export marine terminal at Morgan’s Point, Texas on the Houston Ship Channel, USA. Navigator Gas’ fleet consists of 56 semi- or fully-refrigerated liquefied gas carriers, 25 of which are ethylene and ethane capable. Navigator Gas plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with its sophisticated vessels providing an efficient and reliable ‘floating pipeline’ between the parties, connecting the world today, creating a sustainable tomorrow.
Navigator Gas
Investor Relations / Media Advisorsnavigatorgas@capitallink.com
Three months ended September 30, 2023 Compared to the Three months ended September 30, 2022
The following table compares our operating results for the three months ended September 30, 2022 and 2023:
Three months Three months Percentage Change (in thousands, except Percentage Change) Operating revenues $ 93,960 $ 125,541 33.6% Operating revenues – Unigas Pool 9,615 12,227 27.2% Operating revenues – Luna Pool collaborative arrangements 3,238 — (100.0)% Total operating revenue 106,813 137,768 29.0% Expenses, net: Brokerage commission 1,430 1,788 25.0% Voyage expenses 20,208 20,561 1.7% Voyage expenses – Luna Pool collaborative arrangements 3,643 19 (99.5)% Vessel operating expenses 38,663 39,565 2.3% Depreciation and amortization 32,842 32,353 (1.5)% General and administrative costs 6,137 7,357 19.9% Profit from sale of vessel — — - Other income (60 ) — 100.0% Total operating expenses 102,863 101,643 (1.2)% Operating Income 3,950 36,125 814.6% Other income/(expense) Foreign currency exchange gain on senior secured bond 5,117 — (100.0)% Unrealized gain / (loss) on non-designated derivative instruments 2,541 (972 ) (138.3)% Interest expense (13,166 ) (18,189 ) 38.3% Interest income 170 1,768 940.0% (Loss) / Income before taxes and share of result of equity method investments (1,388 ) 18,732 (1449.6)% Income taxes (426 ) (1,120 ) 162.9% Share of result of equity method investments 4,673 3,771 (19.3)% Net Income 2,859 21,383 647.9% Net income attributable to non-controlling interest (414 ) (2,270 ) 448.3% Net Income attributable to stockholders' of Navigator Holdings Ltd. $ 2,445 $ 19,113 681.7%
$125.5 million for the three months ended September 30, 2023, an increase of $31.6 million or 33.6% compared to $94.0 million for the three months ended September 30, 2022. This increase was primarily due to:
• an increase in operating revenues of approximately $15.5 million attributable to an increase in average monthly time charter equivalent rates, which increased to an average of approximately $26,278 per vessel per day ($799,279 per vessel per calendar month) for the three months ended September 30, 2023, compared to an average of approximately $22,022 per vessel per day ($669,890 per vessel per calendar month) for the three months ended September 30, 2022;
• an increase in operating revenues of approximately $9.5 million attributable to an increase in fleet utilization, which rose to 93.4% for the three months ended September 30, 2023, compared to 84.9% for the three months ended September 30, 2022;
• an increase in operating revenues of approximately $6.2 million or 8.45% , attributable to a 333 day increase in vessel available days for the three months ended September 30, 2023, compared to the three months ended September 30, 2022. This increase was in part as a result of five handysize vessels acquired by the Navigator Greater Bay Joint Venture being fully operational during the three months ended September 30, 2023, and not included in the revenue for the three months ended September 30, 2022, and in part as a result of fewer vessels in drydock for the three months ended September 30, 2023, compared to the three months ended September 30, 2022;
• a increase in operating revenues of approximately $0.4 million primarily attributable to a increase in pass through voyage costs for the three months ended September 30, 2023, compared to the three months ended September 30, 2022.
The following table presents selected operating data for the three months ended September 30, 2023, and 2022, which we believe are useful in understanding the basis for movement in our operating revenues.
Three months ended Three months ended * Fleet Data: Weighted average number of vessels 44.0 47.0 Ownership days 4,048 4,324 Available days 3,943 4,276 Earning days 3,349 3,995 Fleet utilization 84.94% 93.43% ** Average daily time charter equivalent rate $ 22,022 $ 26,278
* Fleet Data - Our nine owned smaller vessels in the independent commercially managed Unigas Pool and the vessels owned by Pacific Gas in our Luna Pool prior to their acquisition by the Navigator Greater Bay Joint Venture are not included in this data.
** Non-GAAP Financial Measure—Time charter equivalent: 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 collaborative arrangements and revenues from the Unigas Pool), less any voyage expenses (excluding collaborative arrangements), by the number of earning days for the relevant period. TCE exclude the effects of the collaborative arrangements, as earning days and fleet utilization, on which TCE are based, are calculated for our owned vessels, and not the average of all pool vessels. Under a time charter, the charterer pays substantially all of the vessel voyage related expenses, whereas for voyage charters, also known as spot market charters, we pay all voyage expenses. 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 between the periods. We include average daily TCE, as we believe it provides additional meaningful information in conjunction with net operating revenues because it assists our management in making decisions regarding the deployment and use of our vessels and in evaluating their financial performance. Our calculation of TCE may not be comparable to that reported by other companies.
Reconciliation of Operating Revenues to TCE rate
The following table represents a reconciliation of operating revenues to TCE rate. Operating revenues are the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
Three months ended Three months ended (in thousands, except earning days and average daily time charter equivalent rate) Fleet Data: *** Operating revenue $ 93,960 $ 125,541 *** Voyage expenses 20,208 20,561 Operating revenue less voyage expenses 73,752 104,980 Earning days 3,349 3,995 Average daily time charter equivalent rate $ 22,022 $ 26,278
***Operating revenues and voyage expenses excluding collaborative arrangements and Unigas pool.
Operating Revenues – Unigas Pool $12.2 million for the three months ended September 30, 2023 compared to $9.6 million for the three months ended September 30, 2022 and represents our share of the revenues earned from our nine vessels operating within the Unigas Pool, based on agreed pool points.
Operating Revenues – Luna Pool Collaborative Arrangements. $3.2 million for the three months ended September 30, 2022 and represents our share of pool net revenues generated by the other participant’s vessels in the pool, prior to the acquisition of the vessels by Navigator Greater Bay Joint Venture. This decrease was primarily as a result of the arrangement ending following the acquisition of the final vessel Navigator Vega on April 13, 2023.
Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.5% of operating revenues, increased by $0.4 million or 25.0% to $1.8 million for the three months ended September 30, 2023, from $1.4 million for the three months ended September 30, 2022, primarily due to an increase in operating revenues on which brokerage commissions are based.
Voyage Expenses. $0.4 million or 1.7% to $20.6 million for the three months ended September 30, 2023, from $20.2 million for the three months ended September 30, 2022. These voyage expenses are pass through costs, corresponding to an increase in operating revenues of the same amount.
Voyage Expenses – Luna Pool Collaborative Arrangements $3.6 million for the three months ended September 30, 2022. These voyage expenses – Luna Pool collaborative arrangements represent the other participant’s share of pool net revenues generated by both our vessels and those of the Navigator Greater Bay Joint Venture in the pool This decrease was primarily as a result of the arrangement ending following the acquisition of the final vessel Navigator Vega on April 13, 2023.
Vessel Operating Expenses $0.9 million or 2.3% to $39.6 million for the three months ended September 30, 2023, from $38.7 million for the three months ended September 30, 2022. Average daily vessel operating expenses decreased by $250 per vessel per day, or 3.2% , to $7,680 vessel per day for the three months ended September 30, 2023, compared to $7,930 per vessel per day for the three months ended September 30, 2022.
Depreciation and Amortization $0.5 million . Depreciation and amortization included amortization of capitalized drydocking costs of $4.4 million and $5.5 million for the three months ended September 30, 2023 and 2022, respectively.
General and Administrative Costs $1.2 million or 19.9% to $7.4 million for the three months ended September 30, 2023, from $6.1 million for the three months ended September 30, 2022.
Non-operating Results
Foreign Currency Exchange Gain on Senior Secured Bonds $5.1 million was recorded for the three months ended September 30, 2022, as a result of the Norwegian Kroner weakening against the U.S. Dollar.
Foreign Currency Exchange Gain on Senior Secured Bonds $5.1 million was recorded for the three months ended September 30, 2022, as a result of the Norwegian Kroner weakening against the U.S. Dollar.
Unrealized Gains / (Losses) on Non-designated Derivative Instruments $1.0 million on non-designated derivative instruments for the three months ended September 30, 2023, relates to a fair value loss on interest rate swaps across a number of our secured term loan and revolving credit facilities, as a result of a decrease in forward U.S. Libor and Secured Overnight Financing Rate (“SOFR”) interest rates relative to the fixed rates applicable on these secured term loan and revolving credit facilities. The unrealized gains on non-designated derivative instruments of $2.5 million for the three months ended September 30, 2022, primarily related to fair value gains of $7.6 million on our interest rate swaps across a number of our secured term loan and revolving credit facilities, as a result of continued increases in forward U.S. Libor interest rates relative to the fixed rates applicable on these secured term loan and revolving credit facilities, off-set by a loss on our cross-currency interest rate swap of $5.1 million which was due to further strengthening of the U.S. Dollar against the Norwegian Kroner.
Interest Expense $5.0 million , or 38.3% , to $18.2 million for the three months ended September 30, 2023, from $13.2 million for the three months ended September 30, 2022. This is primarily as a result of increases in U.S. Libor and SOFR rates and the draw down of facilities that provided financing for the acquisition of five ethylene carriers by the Navigator Greater Bay Joint Venture.
Income Taxes $1.1 million for the three months ended September 30, 2023, compared to $0.4 million for the three months ended September 30, 2022, primarily as a result of current and deferred taxes on our portion of the profits from the Ethylene Export Terminal.
Share of Result of Equity Method Investments 50% ownership in the Export Terminal Joint Venture was an income of $3.8 million for the three months ended September 30, 2023, compared to an income of $4.7 million for the three months ended September 30, 2022. This decrease is a result of higher gas prices resulting in reduced throughput rates, offset by increased volumes exported through the Ethylene Export Terminal, of 249,857 tons for the three months ended September 30, 2023, compared to 189,140 tons for the three months ended September 30, 2022,
Non-Controlling Interest. $0.4 million and this is presented as a non-controlling interest for each period for both the three months ended September 30, 2023, and three months ended September 30, 2022.
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 60% by the Company and 40% by Greater Bay Gas. The Navigator Greater Bay Joint Venture is accounted for as a consolidated subsidiary in our consolidated financial statements, with the 40% owned by Greater Bay Gas accounted for as a non-controlling interest. A gain attributable to Greater Bay Gas of $1.9 million is presented as the non-controlling interest in our financial results for the three months ended September 30, 2023.
Our Fleet
The following table sets forth our vessels as of November 13, 2023:
Operating Vessel Year Vessel Size 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 2025 Ethylene/ethane capable semi-refrigerated handysize Navigator Pluto* 2000 22,085 Drydock — — Navigator Saturn* 2000 22,085 Time Charter Ethylene April 2024 Navigator Venus* 2000 22,085 Spot Market Ethylene — Navigator Atlas* 2014 21,000 Spot Market Ethylene — Navigator Europa* 2014 21,000 Time Charter Ethane December 2023 Navigator Oberon* 2014 21,000 Spot Market Ethylene — Navigator Triton* 2015 21,000 Spot Market Ethylene — Navigator Umbrio* 2015 21,000 Time Charter Ethane December 2023 Navigator Luna* 2018 17,000 Spot Market Ethylene — Navigator Solar* 2018 17,000 Spot Market Ethylene — Navigator Castor* 2019 22,000 Spot Market Ethylene — Navigator Equator* 2019 22,000 Spot Market Ethylene — Navigator Vega* 2019 22,000 Spot Market Ethylene — 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 January 2024 Navigator Capricorn 2008 20,750 Time Charter Butane October 2024 Navigator Gemini 2009 20,750 Spot Market Butadiene — Navigator Pegasus 2009 22,200 Time Charter Propylene March 2024 Navigator Phoenix 2009 22,200 Time Charter Ammonia September 2024 Navigator Scorpio 2009 20,750 Time Charter LPG January 2024 Navigator Taurus 2009 20,750 Time Charter Ammonia January 2024 Navigator Virgo 2009 20,750 Time Charter Butane April 2024 Navigator Leo 2011 20,600 Time Charter LPG December 2023 Navigator Libra 2012 20,600 Time Charter LPG December 2023 Atlantic Gas 2014 22,000 Time Charter LPG February 2024 Adriatic Gas 2015 22,000 Time Charter LPG November 2024 Balearic Gas 2015 22,000 Time Charter LPG December 2023 Celtic Gas 2015 22,000 Spot Market Butadiene — Navigator Centauri 2015 21,000 Time Charter LPG May 2024 Navigator Ceres 2015 21,000 Time Charter LPG June 2024 Navigator Ceto 2016 21,000 Time Charter LPG May 2024 Navigator Copernico 2016 21,000 Time Charter LPG May 2024 Bering Gas 2016 22,000 Spot Market Butadiene — Navigator Luga 2017 22,000 Time Charter LPG July 2024 Navigator Yauza 2017 22,000 Time Charter LPG July 2024 Arctic Gas 2017 22,000 Spot Market Butadiene — Pacific Gas 2017 22,000 Time Charter LPG May 2024 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 January 2025 Navigator Galaxy 2011 22,500 Time Charter Ammonia December 2024 Navigator Genesis 2011 22,500 Time Charter Ammonia January 2025 Navigator Global 2011 22,500 Spot Market — — Navigator Gusto 2011 22,500 Time Charter Ammonia March 2024 Navigator Jorf 2017 38,000 Time Charter Ammonia August 2027
* denotes our owned vessels that operate within the Luna Pool
Condensed Consolidated Balance Sheets (Unaudited)
December 31, 2022 September 30, 2023 (in thousands, except share data) Assets Current Assets Cash, cash equivalents and restricted cash $ 153,194 $ 178,666 Accounts receivable, net of allowance for credit losses $ 18,245 $ 17,079 Accrued income $ 9,367 $ 12,029 Prepaid expenses and other current assets $ 21,152 $ 24,721 Bunkers and lubricant oils $ 8,548 $ 12,473 Insurance receivable $ 1,452 $ 1,833 Amounts due from related parties $ 16,363 $ 30,905 Total current assets $ 228,321 $ 277,706 Non-current Assets Vessels, net $ 1,692,494 $ 1,782,245 Property, plant and equipment, net $ 198 $ 56 Intangible assets, net of accumulated amortization $ 239 $ 240 Equity method investments $ 148,534 $ 156,818 Derivative assets $ 21,955 $ 19,928 Right-of-use asset for operating leases $ 3,625 $ 3,009 Prepaid expenses and other non-current assets $ 1,372 $ — Total non-current assets $ 1,868,417 $ 1,962,296 Total Assets $ 2,096,738 $ 2,240,002 Liabilities and Stockholders’ Equity Current Liabilities Current portion of secured term loan facilities, net of deferred financing costs $ 99,009 $ 120,006 Current portion of operating lease liabilities $ 219 $ 278 Accounts payable $ 7,773 $ 9,527 Accrued expenses and other liabilities $ 24,708 $ 18,396 Accrued interest $ 4,211 $ 2,575 Deferred income $ 23,108 $ 25,745 Amounts due to related parties $ 595 $ 591 Total current liabilities $ 159,623 $ 177,118 Non-current Liabilities Secured term loan facilities and revolving credit facilities, net of current portion and deferred financing costs $ 608,338 $ 700,318 Senior unsecured bond, net of deferred financing costs $ 98,943 $ 90,238 Operating lease liabilities, net of current portion $ 4,032 $ 3,994 Deferred tax liabilities $ 4,250 $ 6,970 Amounts due to related parties $ 48,140 $ 42,985 Total non-current liabilities $ 763,703 $ 844,505 Total Liabilities $ 923,326 $ 1,021,623 Commitments and Contingencies Stockholders’ Equity Common stock—$0.01 par value per share; 400,000,000 shares authorized; 73,285,088 shares issued and outstanding, (December 31, 2022: 76,804,474) 769 734 Additional paid-in capital 798,188 799,100 Accumulated other comprehensive loss (463 ) (103 ) Retained earnings 364,000 377,237 Total Navigator Holdings Ltd. Stockholders’ Equity 1,162,494 1,176,968 Non-controlling interest 10,918 41,411 Total equity 1,173,412 1,218,379 Total Liabilities and Stockholders’ Equity $ 2,096,738 $ 2,240,002
Condensed Consolidated Statements of Operations (Unaudited )
Three months ended September 30, 2022 2023 Revenues Operating revenues $ 93,960 $ 125,541 Operating revenues – Unigas Pool 9,615 12,227 Operating revenues – Luna Pool collaborative arrangements 3,238 — Total operating revenue 106,813 137,768 Expenses Brokerage commission 1,430 1,788 Voyage expenses 20,208 20,561 Voyage expenses – Luna Pool collaborative arrangements 3,643 19 Vessel operating expenses 38,663 39,565 Depreciation and amortization 32,842 32,353 General and administrative costs 6,137 7,357 Profit from sale of vessel — — Other income (60 ) — Total operating expenses $ 102,863 $ 101,643 Operating Income $ 3,950 $ 36,125 Other income/(expense) Foreign currency exchange gain on senior secured bond 5,117 — Unrealized gain / (loss) on non-designated derivative instruments 2,541 (972 ) Write off of deferred financing costs — — Interest expense (13,166 ) (18,189 ) Interest income 170 1,768 (Loss) / Income before taxes and share of result of equity method investments $ (1,388 ) $ 18,732 Income taxes (426 ) (1,120 ) Share of result of equity method investments 4,673 3,771 Net Income $ 2,859 $ 21,383 Net income attributable to non-controlling interest (414 ) (2,270 ) Net Income attributable to stockholders' of Navigator Holdings Ltd. $ 2,445 $ 19,113 Earnings per share attributable to stockholders of Navigator Holdings Ltd.: Dividend Paid $ — $ 0.05 Basic: $ 0.03 $ 0.26 Diluted: $ 0.03 $ 0.26 Weighted average number of shares outstanding: Basic: 77,264,139 73,449,619 Diluted: 77,574,995 74,032,887
Condensed Consolidated Statements of Cash Flows (Unaudited)
Nine months ended Nine months ended (in thousands) Cash flows from operating activities Net income $ 44,623 $ 67,728 Adjustments to reconcile net income to net cash provided by operating activities Unrealized (gains)/losses on non-designated derivative instruments (12,437 ) 2,028 Depreciation and amortization 95,661 96,374 Payment of drydocking costs (11,466 ) (9,842 ) Amortization of share-based compensation 670 912 Amortization of deferred financing costs 2,992 3,074 Share of result of equity method investments (17,933 ) (15,067 ) Profit from sale of vessel (358 ) (4,941 ) Unrealized foreign exchange gain on senior secured bonds (12,558 ) — Other unrealized foreign exchange (loss) (2,450 ) (232 ) Changes in operating assets and liabilities Accounts receivable 9,788 1,166 Insurance claim receivable (2,229 ) (2,212 ) Bunkers and lubricant oils 322 (3,925 ) Accrued income and prepaid expenses and other current assets (7,283 ) (4,245 ) Accounts payable, accrued interest, accrued expenses and other liabilities (979 ) (744 ) Amounts due to related parties 5,157 (14,542 ) Net cash provided by operating activities 91,520 115,532 Cash flows from investing activities Additions to vessels and equipment (2,793 ) (191,727 ) Contributions to equity method investments — (18,036 ) Distributions from equity method investments 20,562 24,819 Purchase of other property, plant and equipment (36 ) (185 ) Net proceeds from sale of vessels 26,449 20,720 Insurance recoveries 6,013 1,832 Net cash provided by/(used in) investing activities 50,195 (162,577 ) Cash flows from financing activities Proceeds from secured term loan facilities — 323,561 Issuance costs of secured term loan facilities — (3,548 ) Repurchase of share capital — (47,634 ) Dividend paid — (3,670 ) Purchase of senior unsecured bonds — (9,047 ) Repayment of vessel financing to related parties (4,770 ) (5,155 ) Repayment of secured term loan facilities and revolving credit facilities (106,078 ) (209,530 ) Cash received from non-controlling interest — 27,266 Net cash (used in)/provided by financing activities (110,848 ) 72,243 Effect of exchange rate changes on cash, cash equivalent and restricted cash 2,007 274 Net increase in cash, cash equivalents and restricted cash 32,874 25,472 Cash, cash equivalents and restricted cash at beginning of period 124,223 153,194 Cash, cash equivalents and restricted cash at end of period $ 157,097 $ 178,666 Supplemental Information Total interest paid during the period, net of amounts capitalized $ 33,820 $ 41,109 Total tax paid during the period $ 1,420 $ 1,244
IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto, including our financial forecast. In addition, we and our representatives may from time to time make other oral or written statements that are also forward-looking statements. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate as described in this press release. In some cases, you can identify the forward-looking statements by the use of words such as “may,” “could,” “should,” “would,” “expect,” “plan,” “anticipate,” “intend,” “forecast,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue,” “scheduled,” or the negative of these terms or other comparable terminology. Forward-looking statements appear in a number of places in this press release. These risks and uncertainties include but are not limited to:
future operating or financial results;
potential acquisitions, and joint ventures, business strategy and expected capital spending; operating expenses, availability of crew, number of off-hire days, drydocking requirements and insurance costs; fluctuations in currencies and interest rates; general market conditions and shipping market trends, including charter rates and factors affecting vessel supply and demand; our ability to continue to comply with all our debt covenants; our financial condition and liquidity, including our ability to refinance our indebtedness as it matures or obtain additional financing in the future to fund capital expenditures, acquisitions and other corporate activities; estimated future capital expenditures needed to preserve our capital base; our expectations about the availability of vessels to purchase, or the useful lives of our vessels; our continued ability to enter into long-term, fixed-rate time charters with our customers; our vessels engaging in ship to ship transfers of liquified petroleum gas (“LPG”) or petrochemical cargoes which may ultimately be discharged in sanctioned areas or to sanctioned individuals without our knowledge; the impact of the Russian invasion of Ukraine and economic sanctions related thereto; the conflict between Israel and Hamas in the Gaza region and other geopolitical tensions; our ability to employ and retain suitably experienced commercial and technical staff; changes in governmental rules and regulations or actions taken by regulatory authorities; global epidemics or other health crises such as the outbreak of COVID-19, including its impact on our business; potential liability from future litigation; our expectations relating to share repurchases and the payment of dividends; our ability to maintain appropriate internal control over financial reporting and, our disclosure controls and procedures; failure of a key information technology system or process or exposure to fraud, security breaches or cyber attacks; the impact of cyber crime and changing financial fraud environment. our expectations regarding the financial success of the Ethylene Export Terminal (as defined below) and our related Export Terminal Joint Venture (as defined below) and our expectations regarding the completion of construction, and the financial success of the Terminal Expansion Project (as defined below); our expectations regarding the financial success of our Luna Pool collaborative arrangement and our Navigator Greater Bay Joint Venture (as defined below); and other factors detailed from time to time in other periodic reports we file with the Securities and Exchange Commission. All forward-looking statements included in this press release are made only as of the date of this press release. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. We expressly disclaim any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in our views or expectations, or otherwise. We make no prediction or statement about the performance of our common stock.
Category: Financial
What is the cash dividend declared by Navigator Holdings Ltd.?
Navigator Holdings Ltd. declared a cash dividend of $0.05 per share of common stock, payable on December 21, 2023.
What was the operating revenue for Navigator Holdings Ltd. in Q3 2023?
The operating revenue for Q3 2023 was $137.8 million for Navigator Holdings Ltd.
What was the net income for Navigator Holdings Ltd. in Q3 2023?
The net income for Q3 2023 was $19.1 million for Navigator Holdings Ltd.
What was the fleet utilization for Navigator Holdings Ltd. in Q3 2023?
The fleet utilization increased to 93.4% for the three months ended September 30, 2023.
What was the record Adjusted EBITDA reported by Navigator Holdings Ltd.?
The company reported a record Adjusted EBITDA of $72.2 million for the three months ended September 30, 2023.
