NEW YORK and LONDON, Aug. 16, 2023 (GLOBE NEWSWIRE) --
Highlights
- On August 15, 2023, the Board declared a cash dividend of $0.05 per share of the common stock of Navigator Holdings Ltd. (the âCompanyâ, âNavigatorâ, âweâ, âourâ and âusâ) (: NVGS), for the quarter ended June 30, 2023 (the âDividendâ). The Dividend will be payable on September 22, 2023, to all shareholders of record as of the close of business New York time on September 8, 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 June 30, 2023, Navigator expects to repurchase approximately $3.0 million of the Companyâs common stock (the âShare Repurchasesâ) between now and the quarter ending September 30, 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 June 30, 2023
- The company reported operating revenue of $135.3 million for the three months ended June 30, 2023, compared to $123.9 million for the three months ended June 30, 2022.
- Net Income attributable to stockholders' of Navigator Holdings Ltd. was $26.6 million for the three months ended June 30, 2023, compared to $14.0 million for the three months ended June 30, 2022.
- Earnings per share was $0.36 for the three months ended June 30, 2023, compared to $0.18 for the three months ended June 30, 2022. Adjusted Earnings per share, to exclude profit from vessel sales and unrealized gains or losses on non-designated derivative instruments was $0.25 for the three months ended June 30, 2023, compared to $0.14 for the three months ended June 30, 2022.
- Adjusted EBITDA(1) was, since the Company's IPO in 2013, a record $69.3 million for the three months ended June 30, 2023, compared to $55.0 million for the three months ended June 30, 2022.
- Fleet utilization increased to 89.0% for the three months ended June 30, 2023, compared to 87.4% for the three months ended June 30, 2022.
- Average daily time charter equivalent ("TCE") rate was $27,241 for the three months ended June 30, 2023, compared to $24,633 for the three months ended June 30, 2022.
- The Ethylene Export Terminal had throughput volumes during the second quarter of 2023 totaling 277,582 metric tons, compared to 268,444 metric tons during the second quarter of 2022. in line with the quarterly nameplate capacity of 250,000 tons.
- On May 2, 2023, the Company sold and delivered its vessel, Navigator Orion, a 2000-built 22,085 cbm ethylene capable semi-refrigerated handysize carrier to a third party for $20.9 million and generating a profit of sale of approximately $4.9 million.
- On June 20, 2023, the Company announced the signing of a non-binding memorandum of understanding (the âMoUâ) with Bumi Armada Berhad (âBumi Armadaâ), one of the worldâs largest floating infrastructure operators, to establish a joint venture company to provide CO2 shipping and injection solutions in the United Kingdom (the âBluestreak CO2 Joint Ventureâ) and that would provide an end-to-end solution for carbon emitters to capture, transport, sequester and store their carbon dioxide emissions in line with the United Kingdomâs Industrial Decarbonisation Strategy. The transaction is subject to the execution of definitive documentation, approvals by the boards of directors of both parties, applicable regulatory approvals and other customary conditions. There can be no assurance that definitive documentation for the joint venture will be executed or that the joint venture will be completed on the terms anticipated or at all.
Ethylene Export Terminal
The Ethylene Export Terminal had a throughput during the second quarter of 2023 totaling 277,582 metric tons, compared to 268,444 metric tons during the second quarter of 2022.
We, together with 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 approximately 1.55 million tons (up to a maximum of approximately three million tons per year. Long lead items have already been ordered and construction which is expected to be completed in the second half 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 $120-$130 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. On April 28, 2023 we made the first capital contribution of $9.0 million towards the project with the second capital contribution of $9.0 million due on August, 18, 2023.
Shipping Trends
The handysize segment has continued its robust performance from the first quarter through the second quarter of 2023.
Utilization across the fleet decreased from 96% in the first quarter of 2023 to 89% through the second quarter of 2023. The decrease is a result of markets coming out of a seasonally busy and stronger winter period. The handysize 12-month market assessment for semi-refrigerated and fully refrigerated vessels decreased by $7,000 per calendar month (âpcmâ) down to $750,000 pcm and the handysize ethylene market assessment increased by $26,000 pcm up to $976,000 pcm.
Approximately 65% of the ethylene volume had an Asian destination in the first quarter, with the balance of the volume going to Europe. During the second quarter the ethylene volume going to Asia reduced to about 46%, with an increased volume of 46% going to Europe and the balance of 8% to South American or Middle Eastern destinations. The reduction in Asia-bound volumes had a softening effect on the freight market.
We have 31 vessels engaged in Time Charters ("TC") and 11 vessels on spot and contracts of affreightment ("CoA"). On June 30, 2023, we had 42% of our ship days covered on Time Charter. Midsize and Fully-Ref vessels are fully employed on Time-Charter, with Semi-Ref and Ethylene capable vessels split across TC and spot.
The fleet has historically experienced summer seasonality with softer utilization compared to the winter period. This year however, the market conditions are providing a stronger backdrop compared to what we have experienced during similar periods for the last years. Our utilization for July 2023 is above the 90% mark which indicates continuation of the positive market fundamentals.
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 June 30, 2023 and 2022:
Three months endedSix months ended June 30, 2022June 30, 2023June 30, 2022June 30, 2023 (in thousands)(in thousands)Net income$14,370 $27,495$41,764$46,345 Net interest expense$11,359 $15,720$22,235$28,475 Income taxes$671 $1,984$1,064$3,149 Depreciation and amortization$31,477 $32,190$62,819$64,021 EBITDA(1)$57,877 $77,390$127,882$141,991 Profit from sale of vessel â $4,941 4,941 Unrealized (loss) / gain on non-designated derivative instruments$(5,346)$3,195$9,896$(1,056)Foreign currency exchange loss/(gain) on senior secured bonds$8,218 â$7,441$â Adjusted EBITDA(1)$55,005 $69,254$110,545$143,0471EBITDA 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 second Quarter 2023 Results and Zoom
Tomorrow, Thursday, August 17, 2023 at 10:00 A.M. ET, the Companyâs management team will host a conference call to discuss the financial results.
Zoom Conference Call Details
Participants should register for the conference call and slide presentation through the following link:
https://us06web.zoom.us/webinar/register/WN_xWy-7EZlQ_yO-v8h-Nb3LA#/registration
Or join by phone:United States:+1 929 205 6099United Kingdom: +44 330 088 5830
For a full list of US and international numbers available, please click on the link below:
International Dial-in numbers
Webinar ID: 836 5950 7387Passcode: 280346The conference call and slide presentation will be available for replay on Navigatorâs website www.navigatorgas.com under Key Dates and All Reports in the Investors Centre section.
Audio Webcast:
There will also be a live, and then archived, webcast of the conference call, available through the Companyâs website (www.navigatorgas.com). To listen to the live and archived audio file, visit our website www.navigatorgas.com and click on Key Dates under our Investors Centre page. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Navigator Gas
Attention: Investor Relations Department -
[email protected] or [email protected]Houston: 333 Clay Street, Suite 2400, Houston, Texas USA 77002. Tel: +1 713 373 6197.
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
Investor Relations / Media Advisors
Nicolas Bornozis / Paul Lampoutis
Capital Link â New York
Tel: +1-212-661-7566
Email: [email protected]
About Us
We are the owner and operator of 56 liquefied gas carriers, which includes the worldâs largest fleet of handysize liquefied gas carriers. We also own a 50% share in an ethylene export marine terminal at Morganâs Point, Texas on the Houston Ship Channel through a joint venture. The Company 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 âfloating pipelineâ between the parties, connecting the world today, creating a sustainable tomorrow.
Unaudited Results of Operations for the
Three months ended June 30, 2023 Compared to the Three months ended June 30, 2022The following table compares our operating results for the three months ended June 30, 2022 and 2023:
Three months ended June 30, 2022Three months ended June 30, 2023PercentageChange (in thousands, except percentages)Operating revenues$105,875 $122,120 15.3%Operating revenues â Unigas Pool 11,389 13,060 14.7%Operating revenues â Luna Pool collaborative arrangements 6,653 155 (97.7)% Total operating revenue 123,917 135,335 9.2% Expenses, net: Brokerage commission 1,569 1,735 10.6%Voyage expenses 20,804 18,604 (10.6)%Voyage expenses â Luna Pool collaborative arrangements 6,950 514 (92.6)%Vessel operating expenses 38,628 42,999 11.3%Depreciation and amortization 31,477 32,190 2.3%General and administrative costs 7,827 8,223 5.1%Profit from sale of vessel â (4,941)- Other income (109) â 100.1%Total operating expenses 107,146 99,324 (7.3)% Operating Income 16,771 36,011 114.7%Other income/(expense) Foreign currency exchange gain on senior secured bond 8,218 â (100.0)%Unrealized (loss) / gain on non-designated derivative instruments (5,346) 3,195 (159.8)%Interest expense (11,471) (17,016)48.5%Interest income 112 1,296 1057.1% Income before taxes and share of result of equity method investments 8,284 23,486 183.5%Income taxes (671) (1,984)195.7%Share of result of equity method investments 6,757 5,993 (11.3)% Net Income 14,370 27,495 91.3%Net income attributable to non-controlling interest (348) (889)155.5%Net Income attributable to stockholders' of Navigator Holdings Ltd.$14,022 $26,606 89.7%
Operating Revenues.
Operating revenues, net of address commissions, was $122.1 million for the three months ended June 30, 2023, an increase of $16.2 million or 15.3% compared to $105.9 million for the three months ended June 30, 2022. This increase was primarily due to: - an increase in operating revenues of approximately $9.7 million attributable to an increase in average monthly time charter equivalent rates, which increased to an average of approximately $27,241 per vessel per day ($828,583 per vessel per calendar month) for the three months ended June 30, 2023, compared to an average of approximately $24,633 per vessel per day $749,244 per vessel per calendar month) for the three months ended June 30, 2022;
- an increase in operating revenues of approximately $1.9 million attributable to an increase in fleet utilization, which rose to 89.0% for the three months ended June 30, 2023, compared to 87.4% for the three months ended June 30, 2022;
- an increase in operating revenues of approximately $6.8 million attributable to a 317 day increase in vessel available days, or 8.02% for the three months ended June 30, 2023, compared to the three months ended June 30, 2022. This increase was in part as a result of the acquisition of five additional handysize vessels by the Navigator Greater Bay Joint Venture during the three months ended June 30, 2023 and in part as a result of fewer vessels in drydock for the three months ended June 30, 2023, compared to the three months ended June 30, 2022.
- a decrease in operating revenues of approximately $2.2 million primarily attributable to a decrease in pass through voyage costs for the three months ended June 30, 2023, compared to the three months ended June 30, 2022.
The following table presents selected operating data for the three months ended June 30, 2022, and 2023, which we believe are useful in understanding the basis for movement in our operating revenues. It does not include our nine owned smaller vessels in the independent commercially managed Unigas Pool or the vessels owned by Pacific Gas in our Luna Pool prior to their acquisition by the Navigator Greater Bay Joint Venture.
| Three months ended June 30, 2022 | Three months ended June 30, 2023 | |||||
| Fleet Data: | ||||||
| Weighted average number of vessels | 44.0 | 47.2 | ||||
| Ownership days | 4,004 | 4,296 | ||||
| Available days | 3,951 | 4,268 | ||||
| Earning days | 3,454 | 3,800 | ||||
| Fleet utilization | 87.42% | 89.03% | ||||
| Average daily time charter equivalent rate | $ | 24,633 | $ | 27,241 | ||
* Non-GAAP Financial MeasureâTime charter equivalent: Time charter equivalent (âTCEâ) rate 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 rates exclude the effects of the collaborative arrangements, as earning days and fleet utilization, on which TCE rates 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 rate is a shipping industry performance measure used primarily to compare period-to-period changes in a companyâs performance despite changes in the mix of charter types (i.e., spot charters, time charters and contracts of affreightment) under which the vessels may be employed between the periods. We include average daily TCE rate, 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 rate 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 June 30, 2022Three months ended June 30, 2023*(in thousands, except earning days and average daily time charter equivalent rate)Fleet Data: Operating revenue$105,875 $122,120 Voyage expenses (20,804) (18,604)Operating revenue less Voyage expenses 85,071 103,516 Earning days 3,454 3,800 Average daily time charter equivalent rate$24,633 $27,241*Operating revenues and voyage expenses excluding collaborative arrangements and Unigas pool.
Operating Revenues â Unigas Pool.
Operating revenues â Unigas Pool was $13.1 million for the three months ended June 30, 2023 compared to $11.4 million for the three months ended June 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 â Luna Pool Collaborative Arrangements. Pool earnings are aggregated and then allocated (after deducting pool overheads and managers' fees) to the Pool Participants in accordance with the Pooling Agreement. Operating revenues - Luna Pool collaborative arrangements was $0.2 million for the three months ended June 30, 2023, compared to $6.7 million for the three months ended June 30, 2022 and represents our share of pool net revenues generated by the other participantâs vessels in the pool, prior to the acquisition of the vessels by the 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 $0.2 million or 10.6% to $1.7 million for the three months ended June 30, 2023, from $1.6 million for the three months ended June 30, 2022, primarily due to an increase in operating revenues on which brokerage commissions are based.
Voyage Expenses. Voyage expenses decreased by $2.2 million or 10.6% to $18.6 million for the three months ended June 30, 2023, from $20.8 million for the three months ended June 30, 2022. These voyage expenses are pass through costs, corresponding to a decrease in operating revenues of the same amount.
Voyage Expenses â Luna Pool Collaborative Arrangements. Voyage expenses â Luna Pool collaborative arrangements were $0.5 million for the three months ended June 30, 2023, compared to $7.0 million for the three months ended June 30, 2022. These voyage expenses â Luna Pool collaborative arrangements represent the other participantâs 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. Vessel operating expenses increased by $4.4 million or 11.3% to $43.0 million for the three months ended June 30, 2023, from $38.6 million for the three months ended June 30, 2022. Average daily vessel operating expenses increased by $432 per vessel per day, or 5.4%, to $8,500 vessel per day for the three months ended June 30, 2023, compared to $8,009 per vessel per day for the three months ended June 30, 2022.
Depreciation and Amortization. Depreciation and amortization increased by $0.7 million or 2.3% to $32.2 million for the three months ended June 30, 2023 from $31.5 million for the three months ended June 30, 2022. This increase was primarily as a result of the acquisition of five additional handysize vessels by the Navigator Greater Bay Joint Venture offset by the sale of Navigator Orion during the three months ended June 30, 2023 . Depreciation and amortization included amortization of capitalized drydocking costs of $4.4 million and $4.2 million for the three months ended June 30, 2023 and 2022, respectively.
General and Administrative Costs. General and administrative costs increased by $0.4 million or 5.1% to $8.2 million for three months ended June 30, 2023, from $7.8 million for the three months ended June 30, 2022.
Profit from Sale of Vessel. Profit from sale of vessel for three months ended June 30, 2023 was $4.9 million and related to the sale of the vessel, Navigator Orion on May 2, 2023. No vessels were sold for the three months ended June 30, 2022.
Non-operating Results
Foreign Currency Exchange Gain on Senior Secured Bonds.
The Norwegian Kroner 2018 Bonds were repaid in December 2022 and no exchange gains and losses were recorded for the three months ended June 30, 2023. A foreign currency exchange gain of $8.2 million was incurred for the three months ended June 30, 2022 as a result of the Norwegian Kroner weakening against the U.S. Dollar,Unrealized Gains/ (Losses) on Non-designated Derivative Instruments. The unrealized gain of $3.2 million on non-designated derivative instruments for the three months ended June 30, 2023 relates to the fair value gain of our interest rate swaps across a number of our secured term loan and revolving credit facilities, as a result of an increase in forward U.S. Libor and SOFR rates relative to the fixed rates applicable on these secured term loan and revolving credit facilities. There was an unrealized loss on non-designated derivative instruments of $5.3 million for the three months ended June 30, 2022, which primarily related to the fair value gain of our interest rate swaps of $4.5 million as a result of increase in forward U.S. Libor rates offset by a loss in our cross-currency interest rate swap of $9.8 million, which was due to the weakening of the Norwegian Kroner against the U.S. Dollar.
Interest Expense. Interest expense increased by $5.5 million, or 48.5%, to $17.0 million for the three months ended June 30, 2023, from $11.5 million for the three months ended June 30, 2022. This is primarily as a result of increases in U.S. Libor and SOFR rates and a the draw down of facilities to fund the acquisition of Navigator Vega.
Income Taxes. Income taxes related to taxes on our subsidiaries incorporated in the United States of America, as well as other countries around the world where we have subsidiaries. Income taxes increased to $2.0 million for the three months ended June 30, 2023, compared to $0.7 million for the three months ended June 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. The share of the result of the Companyâs 50% ownership in the Export Terminal Joint Venture was an income of $6.0 million for the three months ended June 30, 2023, compared to an income of $6.8 million for the three months ended June 30, 2022. This decrease is a result of lower gas prices and therefore reduced throughput rates, despite increased volumes exported through the Ethylene Export Terminal, of 277,582 tons for the three months ended June 30, 2023, compared to 268,444 tons for the three months ended June 30, 2022,
Non-Controlling Interest. We entered into a sale and leaseback arrangement in November 2019 with a wholly-owned special purpose vehicle (âlessor SPVâ) of a financial institution. Although we do not hold any equity investments in this lessor SPV, we have determined that we are the primary beneficiary of this entity and accordingly, we are required to consolidate this VIE into our financial results. The net income attributable to the financial institution was $0.3 million and is presented as the non-controlling interest in our financial results for both the three months ended June 30, 2023 and 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 $0.6 million is presented as the non-controlling interest in our financial results for the three months ended June 30, 2023.
Our Fleet
The following table sets forth our vessels as of August 15, 2023:
Operating VesselYearBuiltVessel Size
(cbm)Employment
StatusCurrent
CargoTime Charter
Expiration DateEthylene/ethane capable semi-refrigerated midsize Navigator Aurora201637,300Time CharterEthaneDecember 2026Navigator Eclipse201637,300Time CharterEthaneMarch 2026Navigator Nova201737,300Time CharterEthaneSeptember 2026Navigator Prominence201737,300Time CharterEthaneMarch 2025 Ethylene/ethane capable semi-refrigerated handysize Navigator Pluto*200022,085âââNavigator Saturn*200022,085Spot MarketEthaneâNavigator Venus*200022,085Spot MarketEthyleneâNavigator Atlas*201421,000Spot MarketEthyleneâNavigator Europa*201421,000Time CharterEthaneDecember 2023Navigator Oberon*201421,000Spot MarketEthyleneâNavigator Triton*201521,000Spot MarketEthyleneâNavigator Umbrio*201521,000Time CharterEthaneDecember 2023Navigator Luna*201817,000Spot MarketEthyleneâNavigator Solar*201817,000Spot MarketEthyleneâNavigator Castor*201922,000Spot MarketEthyleneâNavigator Equator*201922,000Spot MarketEthyleneâNavigator Vega*201922,000Time CharterEthaneOctober 2023 Ethylene/ethane capable semi-refrigerated smaller size Happy Condor**20089,000Unigas PoolââHappy Pelican**20126,800Unigas PoolââHappy Penguin**20136,800Unigas PoolââHappy Kestrel**201312,000Unigas PoolââHappy Osprey**201312,000Unigas PoolââHappy Peregrine**201412,000Unigas PoolââHappy Albatross**201512,000Unigas PoolââHappy Avocet**201712,000Unigas Poolââ Semi-refrigerated handysize Navigator Aries200820,750Time CharterLPGJanuary 2024Navigator Capricorn200820,750DrydockââNavigator Gemini200920,750Spot MarketButadieneâNavigator Pegasus200922,200Time CharterPropyleneDecember 2023Navigator Phoenix200922,200Time CharterAmmoniaSeptember 2024Navigator Scorpio200920,750Time CharterLPGJanuary 2024Navigator Taurus200920,750Time CharterAmmoniaJanuary 2024Navigator Virgo200920,750Spot MarketLPGâNavigator Leo201120,600Time CharterLPGDecember 2023Navigator Libra201220,600Time CharterLPGDecember 2023Atlantic Gas201422,000Time CharterLPGAugust 2023Adriatic Gas201522,000Time CharterLPGNovember 2023Balearic Gas201522,000Spot MarketLPGâCeltic Gas201522,000Spot MarketButadieneâNavigator Centauri201521,000Time CharterLPGMay 2024Navigator Ceres201521,000Time CharterLPGJune 2024Navigator Ceto201621,000Time CharterLPGMay 2024Navigator Copernico201621,000Time CharterLPGMay 2024Bering Gas201622,000âââNavigator Luga201722,000Time CharterLPGJuly 2024Navigator Yauza201722,000Time CharterLPGJuly 2024Arctic Gas201722,000âââPacific Gas201722,000Time CharterLPGNovember 2023 Semi-refrigerated smaller size Happy Falcon**20023,770Unigas Poolâ Fully-refrigerated Navigator Glory201022,500Time CharterAmmoniaJune 2025Navigator Grace201022,500Time CharterAmmoniaJanuary 2024Navigator Galaxy201122,500Time CharterAmmoniaDecember 2023Navigator Genesis201122,500Time CharterAmmoniaJanuary 2024Navigator Global201122,500Time CharterLPGAugust 2023Navigator Gusto201122,500Time CharterAmmoniaMarch 2024Navigator Jorf201738,000Time CharterAmmoniaAugust 2027
* denotes our owned vessels that operate within the Luna Pool
** denotes our owned vessels that operate within the independently managed Unigas Pool
(Unaudited) Three months ended June 30,
(in thousands except share and per share data) 2022 2023 Revenues Operating revenues$105,875 $122,120 Operating revenues â Unigas Pool 11,389 13,060 Operating revenues â Luna Pool collaborative arrangements 6,653 155 Total operating revenue 123,917 135,335 Expenses Brokerage commission 1,569 1,735 Voyage expenses 20,804 18,604 Voyage expenses â Luna Pool collaborative arrangements 6,950 514 Vessel operating expenses 38,628 42,999 Depreciation and amortization 31,477 32,190 General and administrative costs 7,827 8,223 Profit from sale of vessel â (4,941)Other income (109) â Total operating expenses$107,146 $99,324 Operating Income$16,771 $36,011 Other income/(expense) Foreign currency exchange gain on senior secured bond 8,218 â Unrealized (loss) / gain on non-designated derivative instruments (5,346) 3,195 Write off of deferred financing costs â â Interest expense (11,471) (17,016)Interest income 112 1,296 Income before taxes and share of result of equity method investments$8,284 $23,486 Income taxes (671) (1,984)Share of result of equity method investments 6,757 5,993 Net Income$14,370 $27,495 Net income attributable to non-controlling interest (348) (889) Net Income attributable to stockholders' of Navigator Holdings Ltd.$14,022 $26,606 Earnings per share attributable to stockholders of Navigator Holdings Ltd.: Basic:$0.18 $0.36 Diluted:$0.18 $0.36 Weighted average number of shares outstanding: Basic: 77,265,022 73,745,894 Diluted: 77,582,824 74,329,162
(Unaudited) Six months ended June 30, 2022Six months ended June 30, 2023 (in thousands)Cash flows from operating activities Net income$41,764 $46,345 Adjustments to reconcile net income to net cash provided by operating activities Unrealized (gains)/losses on non-designated derivative instruments (9,896) 1,056 Depreciation and amortization 62,819 64,021 Payment of drydocking costs (7,792) (4,327)Amortization of share-based compensation 476 609 Amortization of deferred financing costs 1,964 1,937 Share of result of equity method investments (13,260) (11,296)Profit from sale of vessel (358) (4,941)Unrealized foreign exchange loss on senior secured bonds (7,441) â Other unrealized foreign exchange gain/(loss) 1,282 (133)Changes in operating assets and liabilities Accounts receivable 7,306 (5,258)Insurance claim receivable (1,927) (3,751)Bunkers and lubricant oils (1,821) (2,147)Accrued income and prepaid expenses and other current assets (7,894) (1,355)Accounts payable, accrued interest, accrued expenses and other liabilities (4,492) 1,260 Amounts due to related parties (775) (10,748)Net cash provided by operating activities 59,955 71,272 Cash flows from investing activities Additions to vessels and equipment (1,082) (191,727)Contributions to equity method investments â (9,000)Distributions from equity method investments 14,150 16,934 Purchase of other property, plant and equipment (36) (129)Net proceeds from sale of vessels 26,449 20,720 Insurance recoveries 871 2,601 Net cash provided by/(used in) investing activities 40,352 (160,601)Cash flows from financing activities Proceeds from secured term loan facilities â 323,561 Issuance costs of secured term loan facilities â (3,548)Repurchase of share capital â (44,594)Repayment of vessel financing to related parties (3,287) (3,439)Repayment of secured term loan facilities and revolving credit facilities (68,777) (183,299)Cash received from non-controlling interest â 27,266 Net cash (used in)/provided by financing activities (72,064) 115,947 Effect of exchange rate changes on cash, cash equivalent and restricted cash (1,250) 574 Net increase in cash, cash equivalents and restricted cash 26,993 27,192 Cash, cash equivalents and restricted cash at beginning of period 124,223 153,194 Cash, cash equivalents and restricted cash at end of period$151,216 $180,386 Supplemental Information Total interest paid during the period, net of amounts capitalized$16,586 $26,236 Total tax paid during the period$830 $1,004
Condensed Consolidated Balance Sheets
(Unaudited) December 31, 2022June 30, 2023 (in thousands, except share data)Assets Current assets Cash, cash equivalents and restricted cash$153,194 $180,386 Accounts receivable, net of allowance for credit losses$18,245 $23,503 Accrued income$9,367 $9,540 Prepaid expenses and other current assets$21,152 $23,965 Bunkers and lubricant oils$8,548 $10,695 Insurance receivable$1,452 $2,602 Amounts due from related parties$16,363 $27,111 Total current assets$228,321 $277,802 Non-current assets Vessels, net$1,692,494 $1,810,517 Property, plant and equipment, net$198 $82 Intangible assets, net of accumulated amortization of $584 (December 31, 2022 $509)$239 $251 Equity method investments$148,534 $151,896 Derivative assets$21,955 $20,899 Right-of-use asset for operating leases$3,625 $3,368 Prepaid expenses and other non-current assets$1,372 $â Total non-current assets$1,868,417 $1,987,013 Total assets$2,096,738 $2,264,815 Liabilities and stockholdersâ equity Current liabilities Current portion of secured term loan facilities, net of deferred financing costs$99,009 $119,694 Current portion of operating lease liabilities$219 $238 Accounts payable$7,773 $10,207 Accrued expenses and other liabilities$24,708 $21,166 Accrued interest$4,211 $4,007 Deferred income$23,108 $24,837 Amounts due to related parties$595 $1,419 Total current liabilities$159,623 $181,568 Non-current liabilities Secured term loan facilities and revolving credit facilities, net of current portion and deferred financing costs$608,338 $726,065 Senior unsecured bond, net of deferred financing costs$98,943 $99,140 Operating lease liabilities, net of current portion$4,032 $4,184 Deferred tax liabilities$4,250 $6,098 Amounts due to related parties$48,140 $44,701 Total non-current liabilities$763,703 $880,188 Total Liabilities$923,326 $1,061,756 Commitments and contingencies Stockholdersâ equity Common stockâ$0.01 par value per share;400,000,000 shares authorized; 73,502,021 shares issued and outstanding, (December 31, 2022: 76,804,474) 769 736 Additional paid-in capital 798,188 798,797 Accumulated other comprehensive loss (463) (411)Retained earnings 364,000 364,796 Total Navigator Holdings Ltd. stockholdersâ equity 1,162,494 1,163,918 Non-controlling interest 10,918 39,141 Total equity 1,173,412 1,203,059 Total liabilities and stockholdersâ equity$2,096,738 $2,264,815
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 âmay,â âcould,â âshould,â âwould,â âexpect,â âplan,â âanticipate,â âintend,â âforecast,â âbelieve,â âestimate,â âpredict,â âpropose,â âpotential,â âcontinue,â âscheduled,â 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;pending acquisitions, 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 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 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;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;our expectations regarding the financial success of the Ethylene Export Terminal and our related Export Terminal Joint Venture and our expectations regarding the completion of construction and financing, and the financial success of the Terminal Expansion Project;our expectations regarding the financial success of our Luna Pool collaborative arrangement and our Navigator Greater Bay Joint Venture; andother 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
