LONDON, Jan. 19, 2021 /PRNewswire/ -- Navigator Holdings Ltd. ("Navigator") (NYSE: NVGS) announced today the first carbon-neutral Handysize LPG voyage. Navigator Capricorn, a 20,550cbm semi-refrigerated gas carrier, loaded LPG for U.S. midstream company Sunoco Partners Marketing & Terminal L.P. on 18th January 2021. The voyage commenced at the Marcus Hook export terminal located in Pennsylvania, U.S., and is set to transport cargo safely, reliably and efficiently across the Atlantic to Morocco. In collaboration with the Norwegian climate and technology company CHOOOSE, Navigator has committed to offset 1,068 metric tonnes of CO2 by supporting a UN-verified renewable energy project. The IslaSol Island Solar Power project in the Philippines is intended to bring daytime power to approximately 200,000 homes throughout the year, whilst focusing on reducing emissions in the region.
"Carbon reduction is a key strategic objective for our company and follows our mission of connecting the world today, creating a sustainable tomorrow," said Oeyvind Lindeman, Chief Commercial Officer at Navigator. "We continuously strive to reduce our carbon emissions through innovations in the way we manage our company and in the way we operate our assets. Offsetting is one of several tools we choose to use in order to deliver a true carbon-neutral voyage. We are looking at ways to further promote and develop similar voyages in collaboration with our stakeholders whilst always keeping the UN's Sustainable Development Goals in mind."
In addition to industry-led technological and regulatory developments in reducing its carbon footprint, Navigator Gas looks forward to further harnessing the potential of similar projects in the future to provide carbon offsetting to its customers in an effort to abate the current carbon emissions associated with day-to-day shipping activities, whilst future solutions are developed and deployed.
"Navigator is taking the lead in applying new solutions to address the existing carbon footprint associated with seagoing vessels. Their effort marks a landmark change in the global maritime sector by moving from words to tangible action, and we believe many more will follow their example. At CHOOOSE, we are proud to be participating in this global change led by Navigator by building technology that makes the global maritime sector a part of the solution," said Andreas Slettvoll, CEO and co-founder at CHOOOSE.
Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of Handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. We play a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing a safe, efficient and reliable 'floating pipeline' between the parties. Please visit www.navigatorgas.com for more information.
For further information:
Investor Relations Department – investorrelations@navigatorgas.com
Oeyvind Lindeman, Chief Commercial Officer, +44 (0)20 7340 4575
Niall Nolan, Chief Financial Officer, +44 (0) 20 7340 4852
SOURCE Navigator Gas
LONDON, Dec. 29, 2020 /PRNewswire/ -- Navigator Holdings Ltd. ("Navigator") (NYSE: NVGS), today announced that the previously announced sale by funds managed by WL Ross & Co. LLC ("WL Ross") of their approximate 39.1% equity interest in Navigator to BW Group Limited ("BW Group") closed on December 22, 2020 (the "BW Group Sale"). In connection with the BW Group Sale, Navigator has entered into an Investor Rights Agreement with BW Group, which provides BW Group with the right to designate two members of the board of directors of Navigator (provided that BW Group maintains certain shareholding thresholds) and with limited registration and informational rights. The agreement also provides that, until May 18, 2022 and subject to certain exceptions, BW Group will not acquire common shares that increase its current voting power in Navigator.
Navigator also announced that Andreas Beroutsos has joined its board of directors with effect from December 22, 2020, as a designee following the BW Group Sale. Mr. Beroutsos is the Managing Director, Investments, and the senior group executive for strategic new businesses, at BW Group, a position he has held since 2020. Mr. Beroutsos was a member of the board of OSX-listed BW LPG, an energy transportation company associated with the BW Group, from 2013 until 2020. In his 13 years as a private equity investor, Mr. Beroutsos has been the executive vice president and senior portfolio manager for private equity & infrastructure at Caisse de Dépôt et Placement du Québec (CDPQ), a leading Canadian institutional investor that manages public and para-public pension plans and insurance programs. At CDPQ, Mr. Beroutsos served on the management committee, client committee, and cross-asset-class investment-risk committee; and was the chair of the private equity and infrastructure investment committees. Subsequently, Mr. Beroutsos was a partner at HRS Management LLC. Prior to CDPQ, Mr. Beroutsos led private investments at multi-strategy fund Eton Park Capital Management. Earlier in his career, Mr. Beroutsos spent 17 years at McKinsey & Co., where he was a senior partner. Mr. Beroutsos has been a member of the board of directors of PetSmart, Inc., a pet supplies company and parent of NYSE-listed Chewy (CHWY), since 2015 and of HIG Acquisition Corp. (NYSE: HIGA) since 2020. In 2013, Mr. Beroutsos was selected by European and Greek authorities to serve as an Independent Member on the Board of the Hellenic Financial Stability Fund, overseeing the recapitalization of Greek banks. He holds M.B.A. and B.A. degrees from Harvard University.
Also as of December 22, 2020, Harold L (Hal) Malone has resigned from Navigator's board of directors and its nominations committee following the closing of the BW Group Sale. Mr. Malone is the Head of Transportation at WL Ross. Mr. Malone's resignation was not the result of a disagreement with Navigator on any matter relating to its operations, policies or practices.
David Butters, Executive Chairman, commented: "We look forward to welcoming Mr Beroutsos to the Navigator board and have every confidence that his industry and financial experience will provide valued contributions." Mr Butters also thanked Mr Malone for all his contributions over the past three and a half years and wished him well in the future.
For further information:
Investor Relations Department
investorrelations@navigatorgas.com
David Butters
Executive Chairman
Tel.: +1 212 355 5893
Harry Deans
Chief Executive Officer
Tel.: +44 (0)20 7340 4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-announces-closing-of-the-sale-of-39-1-equity-interest-to-bw-group-limited-and-changes-to-the-board-of-directors-301198984.html
SOURCE Navigator Gas
LONDON, Nov. 12, 2020 /PRNewswire/ --
Highlights
The Company's financial information for the quarter ended September 30, 2020 included in this press release is preliminary and is subject to change in connection with the completion of the Company's quarter-end close procedures and further financial review. Actual results may differ from these estimates as a result of the completion of the Company's quarter-end closing procedures, review adjustments and other developments that may arise between now and the time such financial information for the quarter ended September 30, 2020 is finalized.
Ethylene Marine Export Terminal
The ethylene Marine Export Terminal continues to be operational although throughput has been affected by hurricane Laura, which disrupted power supply to nearby ethylene crackers, reducing the availability of ethylene to export. The 30,000 ton storage tank, which will increase the terminal's throughput capacity, is currently being commissioned and is on schedule to be operational in December. Thereafter the committed offtake agreements, which have minimum terms of five years, are expected to result in approximately 940,000 tons of annual throughput.
The Company contributed $7.5 million to the Export Terminal Joint Venture during the third quarter of 2020 with a draw down on the Company's Terminal Facility. In addition, since September 30, 2020 the Company has contributed a further $2.0 million to the Export Terminal Joint Venture, also drawn from the Terminal Facility. To date the Company has contributed $142.5 million of our expected share of the approximate $146.5 million towards the capital cost of the Marine Export Terminal.
Trends
Notwithstanding the disruptions to the global economy due to the COVID19 pandemic, the commercial environment coming into the third quarter of 2020 was relatively stable. With the Asian markets emerging from governmental lockdowns sooner than those in the West and less susceptible to further pandemic waves, arbitrage opportunities opened and remained into the summer months. The initial demand for ethylene exports from our Marine Export Terminal continued apace into July and the first half of August, including a world record for the largest ethylene cargo ever loaded – 20,000mt on Navigator Eclipse (37,500cbm / MEGC), that was delivered to China.
However, in mid-August, with predictions of hurricane Laura making landfall in Louisiana, ethylene producers initiated precautionary procedures by shutting down various crackers. Hurricane Laura's impact was considerable and long-standing in the Lake Charles area of Louisiana where approximately one quarter of U.S. ethylene production is located. Although minimal physical damage resulted from the hurricane, the local power grid was severely impacted and multiple producers had to wait for the local utility companies to re-establish electricity supply before re-starting their ethylene crackers. This reduction in U.S. domestic ethylene production lead to U.S. ethylene prices rising sharply due to reduced supply, much of which was consumed domestically with only limited volumes available for exports. Expected increased ethylene export volumes for September and October following the severe hurricane season and the impact on the Lake Charles area by hurricane Laura did not materialize, reducing throughput at the terminal as well as our expected earnings days for the ethylene fleet. Our utilization for the spot fleet reduced in September and October as a direct consequence. The ethylene vessels that were ballasting into the U.S. Gulf during this period were forced to compete with semi-refrigerated and fully-refrigerated non-ethylene petrochemical cargoes and LPG, where available.
Electricity is now restored in the Lake Charles area and the ethylene crackers have re-commenced production. U.S. domestic ethylene prices are softening and the market dynamics are returning to what we experienced during the summer months; low U.S. ethylene price creating arbitrage with the rest of the world, thus providing employment for the ethylene fleet. We expect our utilization level to rise as a result of the widening of the ethylene arbitrage for November and December.
As well as lifting the world record ethylene cargo on Navigator Eclipse, our midsize ethylene/ethane carriers had a positive quarter in the ethane market. We extended an existing time charter to a large European chemical player for a further year and concluded a new three year time charter with a large Chinese chemical producer.
Very Large Gas Carriers had a solid quarter, regaining much of the losses of the previous three months, The Baltic spot index rose by 85% during the third quarter of 2020, but in contrast the handy-size vessel twelve month charter assessment declined slightly from $620,000 pcm to $605,000 pcm reemphasizing a stable profile due to the vessels' flexibility in trading in LPG, petrochemicals and ammonia markets.
COVID-19
The impact of COVID-19 continues to affect global economic conditions that effect our business, financial condition and the results of our operations. The ultimate longevity of the COVID-19 pandemic is uncertain and its future effects depend on the spread of the outbreak and the reactions of various national governments to the virus. Therefore, an estimate of the likely impact cannot be made with certainty at this time.
Crew changes remain a challenge, similar to most shipowners, although an increasing number of crew changes have successfully occurred during the quarter, with 49 crew members now with overdue leave of an average of 34 days. Drydocking vessels too has been difficult with some yards closing on short notice. However, drydockings have occurred at various dockyards around the world and the Company has completed five drydocks during the third quarter, with a further three being scheduled for later in 2020.
Results of Operations for the Three Months Ended September 30, 2019 Compared to the Three Months Ended September 30, 2020
The following table compares our operating results for the three months ended September 30, 2019 and 2020:
Three Months
| Three Months 2020
| Percentage
| |
(in thousands, except percentages) | |||
Operating revenue | $ 75,624 | $ 75,613 | 0.0% |
Operating revenue – Luna Pool collaborative arrangements | - | 5,738 | - |
Total operating revenue | $ 75,624 | $ 81,351 | 7.6% |
Expenses: | |||
Brokerage commissions | 1,217 | 1,220 | 0.2% |
Voyage expenses | 13,387 | 14,584 | 8.9% |
Voyage expenses – Luna Pool collaborative arrangements | - | 4,525 | - |
Vessel operating expenses | 26,820 | 27,221 | 1.5% |
Depreciation and amortization | 19,009 | 19,180 | 0.9% |
General and administrative costs | 4,631 | 6,525 | 40.9% |
Other Income | - | (212) | - |
Total operating expenses | $ 65,064 | $ 73,043 | 12.3% |
Operating income | $ 10,560 | $ 8,308 | (21.3%) |
Foreign currency exchange gain/(loss) on senior secured bonds | 4,171 | (1,612) | - |
Unrealized (loss)/gain on non-designated derivative instruments | (5,197) | 2,137 | - |
Interest expense | (12,406) | (9,820) | (20.8%) |
Write off of deferred financing costs | - | (155) | - |
Interest income | 197 | 52 | (73.6%) |
Loss before taxes and share of result of equity accounted joint venture | $ (2,675) | $ (1,090) | (59.3%) |
Income taxes | (131) | (120) | (8.4%) |
Share of result of equity accounted joint ventures | (107) | 3,147 | - |
Net (loss) / income | $ (2,913) | $ 1,937 | - |
Net income attributable to non-controlling interest | — | (446) | - |
Net (loss) / income attributable to stockholders of Navigator Holdings Ltd | $ (2,913) | $ 1,491 | - |
Operating Revenue. Operating revenue was $75.6 million for the three months ended September 30, 2020, principally the same as for the three months ended September 30, 2019. However, there were compensating differences as follows:
The following table presents selected operating data for the three months ended September 30, 2019 and 2020, which we believe are useful in understanding the basis for movement in our operating revenue.
Three Months | Three Months | |
Fleet Data: | ||
Weighted average number of vessels | 38.0 | 38.0 |
Ownership days | 3,496 | 3,496 |
Available days | 3,432 | 3,384 |
Operating days | 2,902 | 2,666 |
Fleet utilization | 84.6% | 78.8% |
Average daily time charter equivalent rate (*) | $ 21,446 | $ 22,892 |
* Non-GAAP Financial Measure—Time charter equivalent: Time charter equivalent ("TCE") 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 revenue, less any voyage expenses, by the number of operating days for the relevant period. 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 company's 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 revenue, 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 Revenue to TCE rate
The following table represents a reconciliation of operating revenue to TCE rate. Operating revenue is the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
Three Months | Three Months | |
(in thousands, except operating days | ||
Fleet Data: | ||
Operating revenue (excluding collaborative arrangements) | $ 75,624 | $ 75,613 |
Voyage expenses (excluding collaborative arrangements) | 13,387 | 14,584 |
Operating revenue less Voyage expenses | 62,237 | 61,029 |
Operating days | 2,902 | 2,666 |
Average daily time charter equivalent rate | $ 21,446 | $ 22,892 |
Operating Revenue – 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 revenue - Luna Pool collaborative arrangements was $5.7 million for the three months ended September 30, 2020, which represents our share of pool net revenue generated by the other participant's vessels in the pool. The Luna Pool, which comprises nine of the Company's ethylene vessels and five ethylene vessels from Pacific Gas Pte. Ltd., focuses on the transportation of ethylene and ethane to meet the growing demands of our customers. The Luna Pool became operational during the second quarter of 2020 and consequently there was no Operating Revenue - Luna Pool collaborative arrangements for the three months ended September 30, 2019.
Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.5% of operating revenue, was $1.2 million for the three months ended September 30, 2020, the same as for the three months ended September 30, 2019.
Voyage Expenses. Voyage expenses increased by $1.2 million or 8.9% to $14.6 million for the three months ended September 30, 2020, from $13.4 million for the three months ended September 30, 2019. Panama Canal transit costs have increased in the three months ended September 30, 2020 as a result of increased trade from the U.S. Gulf to the Far East through the Panama Canal. However bunker costs have reduced as a result of a decrease in bunker prices, although more bunkers have been consumed as the number of voyage charter days increased by approximately 18.2% during the three months ended September 30, 2020, as compared to the three months ended September 30, 2019.
Voyage Expenses – Luna Pool collaborative arrangements. Voyage expenses – Luna Pool collaborative arrangements were $4.5 million for the three months ended September 30, 2020, which represents the other participant's share of pool net revenues generated by our vessels in the pool. The net effect after deducting operating revenue – Luna Pool collaborative arrangements was that the other participant's vessels contributed $1.2 million to our vessels in the Luna Pool. The Luna Pool became operational during the second quarter of 2020 and consequently there were no Voyage Expenses - Luna Pool collaborative arrangements for the three months ended September 30, 2019.
Vessel Operating Expenses. Vessel operating expenses increased by 1.5% to $27.2 million for the three months ended September 30, 2020, from $26.8 million for the three months ended September 30, 2019. Average daily vessel operating expenses increased by $115 per vessel per day, or 1.5%, to $7,786 per vessel per day for the three months ended September 30, 2020, compared to $7,672 per vessel per day for the three months ended September 30, 2019.
Depreciation and Amortization. Depreciation and amortization increased by 0.9% to $19.2 million for the three months ended September 30, 2020, from $19.0 million for the three months ended September 30, 2019. Depreciation and amortization included amortization of capitalized drydocking costs of $1.7 million and $1.9 million for the three months ended September 30, 2020 and 2019 respectively.
General and Administrative Costs. General and administrative costs increased by $1.9 million or 40.9% to $6.5 million for the three months ended September 30, 2020, from $4.6 million for the three months ended September 30, 2019. The increase in general and administrative costs includes a loss of $0.5 million on the revaluation of an Indonesian Rupiah bank account for the three months ended September 30, 2020, relative to the three months ended September 30, 2019, additional audit and internal control related costs of $0.3 million and additional terminal insurance of $0.2 million.
Other Income. Other income was $0.2 million for the three months ended September 30, 2020 and consists of management fees for commercial and administrative activities performed by the Company for the Luna Pool. The Luna Pool became operational during the second quarter of 2020 and consequently there was no other income for the three months ended September 30, 2019.
Non-operating Results
Foreign Currency Exchange Gain/Loss on Senior Secured Bonds. Exchange gains and losses relate to non-cash movements on our 600 million Norwegian Kroner 2018 Bonds which are translated to U.S. Dollar at the prevailing exchange rate as of September 30, 2020. The foreign currency exchange loss of $1.6 million for the three months ended September 30, 2020 was as a result of the Norwegian Kroner strengthening against the U.S. Dollar, being NOK 9.4 to USD 1.0 as of September 30, 2020 compared to NOK 9.7 to USD 1.0 as of June 30, 2020.
Unrealized Gain/Loss on Non-designated Derivative Instruments. The unrealized gains on non-designated derivative instruments of $2.1 million for the three months ended September 30, 2020 relates to the fair value movement in our cross-currency interest rate swap and is primarily due to the strengthening of the Norwegian Kroner against the U.S. Dollar. The unrealized loss on this swap for the three months ended September 30, 2019 was $5.2 million.
Interest Expense. Interest expense decreased by $2.6 million, or 20.8%, to $9.8 million for the three months ended September 30, 2020, from $12.4 million for the three months ended September 30, 2019. This is primarily as a result of a reduction in 3-month US LIBOR interest rates.
Write off of Deferred Financing Costs. The write off of deferred financing costs of $0.2 million for the three months ended September 30, 2020 related to a portion of the remaining unamortized deferred financing costs of the $290.0 million secured term loan facility that was fully re-financed prior to its maturity date. No loan refinancing occurred during the three months ended September 30, 2019.
Write off of Redemption Premium on 7.75% Senior Unsecured Bond. In connection with the redemption of the 2017 Bonds, pursuant to which we redeemed all of the outstanding principal amount in September 2020, we incurred $0.2 million in charges that were written off on such bonds on maturity which are presented within interest expense for the three months ended September 30, 2020.
Income Taxes. Income taxes related to taxes on our subsidiaries incorporated in the United Kingdom, Poland and Singapore and our consolidated variable interest entity ("VIE"), incorporated in Malta. For the three months ended September 30, 2020, we had a tax charge of $120,000 compared to taxes of $131,042 for the three months ended September 30, 2019.
Share of result of equity accounted joint ventures. The share of result of the Company's 50% ownership in the Export Terminal Joint Venture was a gain of $3.1 million for the three months ended September 30, 2020, primarily as a result of volumes being exported through the Marine Export Terminal following the commencement of the throughput agreements during the second quarter of 2020.
Non-Controlling Interest. We have entered into a sale and leaseback arrangement in November 2019 with a wholly-owned special purpose vehicle ("lessor SPV") 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. Thus, the income attributable to the financial institution of $0.4 million is presented as the non-controlling interest in our financial results for the three months ended September 30, 2020.
Results of Operations for the Nine Months Ended September 30, 2019 Compared to the Nine Months Ended September 30, 2020
The following table compares our operating results for the nine months ended September 30, 2019 and 2020:
Nine Months Ended September 30, | Nine Months | Percentage | |
(in thousands, except percentages) | |||
Operating revenue | $ 225,313 | $ 236,739 | 5.1% |
Operating revenue – Luna Pool collaborative arrangements | - | 8,334 | - |
Total operating revenue | $ 225,313 | $ 245,073 | 8.8% |
Expenses: | |||
Brokerage commissions | 3,759 | 3,780 | 0.6% |
Voyage expenses | 43,181 | 46,856 | 8.5% |
Voyage expenses – Luna Pool collaborative arrangements | - | 7,568 | - |
Vessel operating expenses | 83,742 | 81,120 | (3.1%) |
Depreciation and amortization | 56,870 | 57,541 | 1.2% |
General and administrative costs | 14,628 | 17,542 | 19.9% |
Other Income | - | (329) | - |
Total operating expenses | $ 202,180 | $ 214,078 | 5.9% |
Operating income | $ 23,133 | $ 30,995 | 34.0% |
Foreign currency exchange gain on senior secured bonds | 3,219 | 4,953 | 53.9% |
Unrealized loss on non-designated derivative instruments | (3,552) | (5,470 ) | 54.0% |
Interest expense | (36,768) | (32,488 ) | (11.6%) |
Write off of deferred financing costs | - | (155) | - |
Interest income | 617 | 367 | (40.5%) |
Loss before taxes and share of result of equity accounted joint venture | $ (13,351) | $ (1,798) | (86.5%) |
Income taxes | (305) | (456) | 49.5% |
Share of result of equity accounted joint ventures | (247) | (58) | (76.5%) |
Net loss | $ (13,903) | $ (2,312) | (83.4%) |
Net income attributable to non-controlling interest | — | (1,351) | — |
Net loss attributable to stockholders of Navigator Holdings Ltd | $ (13,903) | $ (3,663) | (73.7%) |
Operating Revenue. Operating revenue increased by $11.4 million or 5.1% to $236.7 million for the nine months ended September 30, 2020, from $225.3 million for the nine months ended September 30, 2019. This increase was principally due to:
The following table presents selected operating data for the nine months ended September 30, 2019 and 2020, which we believe are useful in understanding the basis for movement in our operating revenue.
Nine Months | Nine Months | |
Fleet Data: | ||
Weighted average number of vessels | 38.0 | 38.0 |
Ownership days | 10,374 | 10,412 |
Available days | 10,193 | 10,230 |
Operating days | 8,647 | 8,737 |
Fleet utilization | 84.8 % | 85.4% |
Average daily time charter equivalent rate (*) | $ 21,063 | $ 21,733 |
* Non-GAAP Financial Measure—Time charter equivalent: Time charter equivalent ("TCE") 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 revenue, less any voyage expenses, by the number of operating days for the relevant period. 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 company's 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 revenue, 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 Revenue to TCE rate
The following table represents a reconciliation of operating revenue to TCE rate. Operating revenue is the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
Nine Months | Nine Months
| |
(in thousands, except operating days | ||
Fleet Data: | ||
Operating revenue (excluding collaborative arrangements) | $ 225,313 | $ 236,739 |
Voyage expenses (excluding collaborative arrangements) | 43,181 | 46,856 |
Operating revenue less Voyage expenses | 182,132 | 189,883 |
Operating days | 8,647 | 8,737 |
Average daily time charter equivalent rate | $ 21,063 | $ 21,733 |
Operating Revenue – 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 revenue - Luna Pool collaborative arrangements was $8.3 million for the nine months ended September 30, 2020, which represents our share of pool net revenues generated by the other participant's vessels in the pool. The Luna Pool became operational during the second quarter of 2020 and consequently there was no Operating Revenue – Luna Pool collaborative arrangements for the nine months ended September 30, 2019.
Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.5% of operating revenue, marginally increased by 0.6%, to $3.8 million for the nine months ended September 30, 2020, compared to the nine months ended September 30, 2019. The increase was primarily due to an increase in operating revenue on which brokerage commissions are based.
Voyage Expenses. Voyage expenses increased by 8.5% to $46.9 million for the nine months ended September 30, 2020, from $43.2 million for the nine months ended September 30, 2019. Panama Canal transit costs have increased significantly in the nine months ended September 30, 2020 as a result of increased trade from the U.S. Gulf to the Far East through the Panama Canal. These transit cost increases are partly off-set by reductions in bunker costs as a result of bunker price decreases, although more bunkers have been consumed as the number of voyage charter days increased by approximately 3.0% during the nine months ended September 30, 2020, as compared to the nine months ended September 30, 2019
Voyage Expenses. – Luna Pool collaborative arrangements. Voyage expenses – Luna Pool collaborative arrangements was $7.6 million for the nine months ended September 30, 2020, which represents the other participant's share of pool net revenue generated by our vessels in the pool. The net effect after deducting Operating revenue – Luna Pool collaborative arrangements was that the other participants vessels contributed $0.8 million to our vessels in the Luna Pool. The Luna Pool became operational during the second quarter of 2020 and consequently there was no Voyage Expenses – Luna Pool collaborative arrangements for the nine months ended September 30, 2019.
Vessel Operating Expenses. Vessel operating expenses decreased by 3.1% to $81.1 million for the nine months ended September 30, 2020, from $83.7 million for the nine months ended September 30, 2019. Average daily vessel operating expenses decreased by $281 per vessel per day, or 3.5%, to $7,791 per vessel per day for the nine months ended September 30, 2020, compared to $8,072 per vessel per day for the nine months ended September 30, 2019. This was primarily due to a general underspend in vessel operating expenses across the fleet during the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019 as well as unexpected costs incurred for repairs and maintenance in 2019 which have not reoccurred for the nine months ended September 30, 2020.
Depreciation and Amortization. Depreciation and amortization increased by 1.2% to $57.5 million for the nine months ended September 30, 2020, from $56.9 million for the nine months ended September 30, 2019. Depreciation and amortization included amortization of capitalized drydocking costs of $5.8 million and $5.7 million for the nine months ended September 30, 2020 and 2019, respectively.
General and Administrative Costs. General and administrative costs increased by $2.9 million or 19.9% to $17.5 million for the nine months ended September 30, 2020, from $14.6 million for the nine months ended September 30, 2019. The increase in general and administrative costs was primarily due to a loss of $1.0 million on the revaluation of an Indonesian Rupiah bank account for the nine months ended September 30, 2020 relative to the three months ended September 30, 2019; additional audit and internal control related costs of $1.0 million; additional insurance costs of $0.6 million for the now operational Marine Export Terminal; and the write off of previously capitalized legal costs of $0.5 million relating to the Marine Export Terminal.
Other Income. Other income was $0.3 million for the nine months ended September 30, 2020 and consists of management fees for commercial and administrative activities performed by the Company for the Luna Pool. The Luna Pool became operational during the second quarter of 2020 and consequently there was no other income for the nine months ended September 30, 2019.
Non-operating Results
Foreign Currency Exchange Gain on Senior Secured Bonds. Exchange gains and losses relate to non-cash movements on our 600 million Norwegian Kroner 2018 Bonds which are translated to U.S. Dollars at the prevailing exchange rate as of September 30, 2020. The foreign currency exchange gain of $5.0 million for the nine months ended September 30, 2020 was as a result of the Norwegian Kroner weakening against the U.S. Dollar, being NOK 9.4 to USD 1.0 as of September 30, 2020 compared to NOK 8.8 to USD 1.0 as of December 31, 2019.
Unrealized Loss on Non-designated Derivative Instruments. The unrealized loss on non-designated derivative instruments of $5.5 million for the nine months ended September 30, 2020 relates to the fair value movement in our cross-currency interest rate swap and is primarily due to the weakening of the Norwegian Kroner against the U.S. Dollar. The unrealized loss on this swap for the nine months ended September 30, 2019 was $3.6 million.
Interest Expense. Interest expense decreased by $4.3 million, or 11.6%, to $32.5 million for the nine months ended September 30, 2020, from $36.8 million for the nine months ended September 30, 2019. This reduction in interest expense is primarily as a result of reductions in 3-month US LIBOR interest rates, offset by $2.4 million lower interest costs capitalized on the Marine Export Terminal for the nine months ended September 30, 2020 compared to the nine months ended September 30, 2019.
Write off of Deferred Financing Costs. The write off of deferred financing costs of $0.2 million for the nine months ended September 30, 2020 related to a portion of the remaining unamortized deferred financing costs of the $290.0 million secured term loan facility that was fully re-financed prior to its maturity date. No loan refinancing occurred in the nine months ended September 30, 2019.
Income Taxes. Income taxes related to taxes on our subsidiaries incorporated in the United Kingdom, Poland and Singapore and our consolidated variable interest entity ("VIE"), incorporated in Malta. For the nine months ended September 30, 2020, we had a tax charge of $456,000 compared to taxes of $305,388 for the nine months ended September 30, 2019.
Share of result of equity accounted joint ventures. The share of result of the Company's 50% ownership in the Export Terminal Joint Venture was a loss of $0.1 million for the nine months ended September 30, 2020, primarily as a result of initial losses following the terminal becoming operational in December 2019 being offset by profits since June when the committed offtake agreements became effective. This compared to a loss of $0.2 million for the nine months ended September 30, 2019, which related to costs incurred prior to the Marine Export Terminal becoming operational.
Non-Controlling Interest. We have entered into a sale and leaseback arrangement with a wholly-owned special purpose vehicle ("lessor SPV") of a financial institution. While 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. Thus, the income attributable to the financial institution of $1.4 million is presented as the non-controlling interest in our financial results for the nine months ended September 30, 2020.
Reconciliation of Non-GAAP Financial Measures
The following table sets forth a reconciliation of net income attributable to the stockholders of the Company to EBITDA and Adjusted EBITDA for the three and nine months ended September 30, 2019 and 2020:
(in thousands) | (in thousands) | |||||
Three months ended | Nine months ended | |||||
September 30, | September 30, | September 30, | September 30, | |||
Net income / (loss) attributable to the stockholders | $ (2,913) | $ 1,937 | $ (13,903) | $ (2,312 ) | ||
Net interest expense | 12,209 | 9,923 | 36,151 | 32,276 | ||
Income taxes | 131 | 120 | 305 | 456 | ||
Depreciation and amortization | 19,009 | 19,180 | 56,870 | 57,541 | ||
Depreciation from the Export Terminal Joint Venture | - | 1,262 | - | 3,771 | ||
EBITDA(1) | $ 28,436 | $ 32,422 | $ 79,423 | $ 91,732 | ||
Foreign currency exchange (gain) / loss on senior secured bonds | (4,171) | 1,612 | (3,219) | (4,953 ) | ||
Unrealized loss / (gain) on non-designated derivative instruments | 5,197 | (2,137) | 3,552 | 5,470 | ||
Adjusted EBITDA(1) | $ 29,462 | $ 31,897 | $ 79,756 | $ 92,249 | ||
1 EBITDA and Adjusted EBITDA are not measurements prepared in accordance with U.S. GAAP (non-GAAP financial measures). EBITDA represents net income attributable to stockholders of the Company before net interest expense, income taxes and depreciation and amortization. We define Adjusted EBITDA as EBITDA before foreign currency exchange gain or loss on senior secured bonds and unrealized gain or loss on non-designated derivative instruments. 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. See the table above for a reconciliation of EBITDA and Adjusted EBITDA to net income / (loss) attributable to stockholders of the Company, our most directly comparable U.S. GAAP financial measure.
Our Fleet
The following table sets forth our vessels as of November 12, 2020:
Operating Vessel | Year | Vessel Size | Employment | Current Cargo | Charter |
Ethylene/ethane capable semi-refrigerated | |||||
Navigator Orion* | 2000 | 22,085 | Spot market | — | — |
Navigator Neptune* | 2000 | 22,085 | Time charter | Ethane | November 2020 |
Navigator Pluto | 2000 | 22,085 | Time charter | LPG | January 2021 |
Navigator Saturn* | 2000 | 22,085 | Contract of affreightment | Ethylene | — |
Navigator Venus* | 2000 | 22,085 | Time charter | Ethane | November 2020 |
Navigator Atlas* | 2014 | 21,000 | Contract of affreightment | Ethylene | — |
Navigator Europa* | 2014 | 21,000 | Contract of affreightment | Ethylene | — |
Navigator Oberon* | 2014 | 21,000 | Spot market | — | — |
Navigator Triton* | 2015 | 21,000 | Contract of affreightment | Ethylene | — |
Navigator Umbrio* | 2015 | 21,000 | Spot market | — | — |
Navigator Aurora | 2016 | 37,300 | Time charter | LPG | December 2026 |
Navigator Eclipse | 2016 | 37,300 | Time charter | Ethylene | December 2020 |
Navigator Nova | 2017 | 37,300 | Time charter | Ethane | September 2023 |
Navigator Prominence | 2017 | 37,300 | Time charter | Ethane | December 2021 |
Semi-refrigerated | |||||
Navigator Magellan | 1998 | 20,700 | Spot market | LPG | — |
Navigator Aries | 2008 | 20,750 | Time charter | LPG | November 2020 |
Navigator Capricorn | 2008 | 20,750 | Spot market | Butadiene | — |
Navigator Gemini | 2009 | 20,750 | Spot market | — | — |
Navigator Pegasus | 2009 | 22,200 | Spot market | Propylene | — |
Navigator Phoenix | 2009 | 22,200 | Spot market | Butadiene | — |
Navigator Scorpio | 2009 | 20,750 | Spot market | LPG | — |
Navigator Taurus | 2009 | 20,750 | Spot market | LPG | — |
Navigator Virgo | 2009 | 20,750 | Spot market | LPG | — |
Navigator Leo | 2011 | 20,600 | Time charter | LPG | December 2023 |
Navigator Libra | 2012 | 20,600 | Time charter | LPG | December 2023 |
Navigator Centauri | 2015 | 21,000 | Spot market | Butadiene | — |
Navigator Ceres | 2015 | 21,000 | Time charter | Propylene | December 2020 |
Navigator Ceto | 2016 | 21,000 | Spot market | Butadiene | — |
Navigator Copernico | 2016 | 21,000 | Spot market | Butadiene | — |
Navigator Luga | 2017 | 22,000 | Time charter | LPG | February 2022 |
Navigator Yauza | 2017 | 22,000 | Time charter | LPG | April 2022 |
Fully-refrigerated | |||||
Navigator Glory | 2010 | 22,500 | Time charter | Ammonia | June 2021 |
Navigator Grace | 2010 | 22,500 | Time charter | LPG | March 2021 |
Navigator Galaxy | 2011 | 22,500 | Spot market | LPG | — |
Navigator Genesis | 2011 | 22,500 | Time charter | LPG | July 2021 |
Navigator Global | 2011 | 22,500 | Time charter | LPG | November 2020 |
Navigator Gusto | 2011 | 22,500 | Time charter | LPG | December 2020 |
Navigator Jorf | 2017 | 38,000 | Time charter | Ammonia | August 2027 |
*denotes our owned vessels that operate within the Luna Pool |
Conference Call Details:
Tomorrow, Friday, November 13, 2020, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the preliminary financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928 592 (Standard International Dial In). Please quote "Navigator" to the operator. There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A telephonic replay of the conference call will be available until Friday November 20, 2020, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009785 (Standard International Dial In). Access Code: 11870348#
Navigator Gas
Attention: Investor Relations Department - investorrelations@navigatorgas.com
New York: 650 Madison Ave, New York, NY 10022. Tel: +1 212 355 5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
About Us
Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet. The Company also 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 HOLDINGS LTD. | ||
Condensed Consolidated Balance Sheets | ||
(Unaudited) | ||
December 31, 2019 | September 30, 2020 | |
(in thousands, except share data) | ||
Assets | ||
Current assets | ||
Cash and cash equivalents | $ 64,820 | $ 60,996 |
Restricted Cash | 1,310 | 6,060 |
Accounts receivable, net of allowance for credit losses of $188 (December 31, 2019: nil) | 23,462 | 22,404 |
Accrued income | 6,280 | 3,727 |
Prepaid expenses and other current assets | 17,670 | 24,120 |
Bunkers and lubricant oils | 9,645 | 9,665 |
Insurance Receivable | 2,939 | 3,000 |
Total current assets | 126,126 | 129,972 |
Non-current assets | ||
Vessels, net | 1,609,527 | 1,561,367 |
Property, plant and equipment, net | 1,159 | 840 |
Investment in equity accounted joint ventures | 130,660 | 145,956 |
Right-of-use asset for operating leases | 6,781 | 5,977 |
Prepaid expenses and other non-current assets | — | 2,543 |
Total non-current assets | 1,748,127 | 1,716,683 |
Total assets | $ 1,874,253 | $ 1,846,655 |
Liabilities and stockholders' equity | ||
Current liabilities | ||
Current portion of secured term loan facilities, net of deferred financing costs | $ 64,703 | $ 62,535 |
Current portion of operating lease liabilities | 1,178 | 1,210 |
Accounts payable | 10,472 | 14,703 |
Accrued expenses and other liabilities | 14,124 | 18,161 |
Accrued interest | 4,424 | 1,508 |
Deferred income | 14,154 | 16,320 |
Amounts due to related parties | 451 | 613 |
Total current liabilities | 109,506 | 115,050 |
Non-current liabilities | ||
Secured term loan facilities and revolving credit facilities, net of current portion and deferred financing costs | 578,676 | 553,321 |
Senior secured bond, net of deferred financing costs | 67,503 | 62,633 |
Senior unsecured bond, net of deferred financing costs | 98,513 | 98,060 |
Derivative liabilities | 5,769 | 11,239 |
Operating lease liabilities, net of current portion | 6,329 | 5,267 |
Amounts due to related parties | 68,055 | 62,850 |
Total non-current liabilities | 824,845 | 793,370 |
Total Liabilities | 934,351 | 908,420 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock—$.01 par value per share; 400,000,000 shares authorized; 55,903,672 shares issued and outstanding, (December 31, 2019: 55,826,644) | 558 | 559 |
Additional paid-in capital | 592,010 | 592,868 |
Accumulated other comprehensive loss | (331) | (394) |
Retained earnings | 347,566 | 343,752 |
Total Navigator Holdings Ltd. stockholders' equity | 939,803 | 936,785 |
Non-controlling interest | 99 | 1,450 |
Total equity | 939,902 | 938,235 |
Total liabilities and stockholders' equity | $ 1,874,253 | $ 1,846,655 |
NAVIGATOR HOLDINGS LTD. | ||||
Condensed Consolidated Statements of Operations | ||||
(Unaudited) | ||||
Three months ended September 30, | Nine months ended September 30, | |||
2019 | 2020 | 2019 | 2020 | |
(in thousands except share and per share data) | ||||
Revenues | ||||
Operating revenue | $ 75,624 | $ 75,613 | $ 225,313 | $ 236,739 |
Operating revenue- Luna Pool collaborative arrangements | — | 5,738 | — | 8,334 |
Total operating revenues | 75,624 | $ 81,351 | 225,313 | $ 245,073 |
Expenses | ||||
Brokerage commissions | 1,217 | 1,220 | 3,759 | 3,780 |
Voyage expenses | 13,387 | 14,584 | 43,181 | 46,856 |
Voyage expenses – Luna Pool collaborative arrangements | — | 4,525 | — | 7,568 |
Vessel operating expenses | 26,820 | 27,221 | 83,742 | 81,120 |
Depreciation and amortization | 19,009 | 19,180 | 56,870 | 57,541 |
General and administrative costs | 4,631 | 6,525 | 14,628 | 17,542 |
Other Income | — | (212) | — | (329) |
Total operating expenses | 65,064 | $ 73,043 | 202,180 | $ 214,078 |
Operating income | 10,560 | 8,308 | 23,133 | 30,995 |
Other income / (expense) | ||||
Foreign currency exchange gain / (loss) on senior secured bonds | 4,171 | (1,612) | 3,219 | 4,953 |
Unrealized (loss) / gain on non-designated derivative instruments | (5,197) | 2,137 | (3,552) | (5,470 ) |
Interest expense | (12,406 ) | (9,820) | (36,768 ) | (32,488 ) |
Write off of deferred financing costs | — | (155) | — | (155) |
Interest income | 197 | 52 | 617 | 367 |
Loss before income taxes and share of result of equity accounted joint venture | (2,675) | (1,090) | (13,351) | (1,798) |
Income taxes | (131) | (120 ) | (305) | (456 ) |
Share of result of equity accounted joint ventures | (107) | 3,147 | (247) | (58 ) |
Net (loss) / income | (2,913) | 1,937 | (13,903) | (2,312) |
Net income attributable to non-controlling interest | — | (446) | — | (1,351) |
Net (loss) / income attributable to stockholders of Navigator Holdings Ltd | $ (2,913) | $ 1,491 | $ (13,903) | $ (3,663 ) |
(Loss) / earnings per share attributable to stockholders of Navigator Holdings Ltd.: | ||||
Basic and diluted: | $ (0.05) | $ 0.03 | $ (0.25) | $ (0.07) |
Weighted average number of shares outstanding: | ||||
Basic: | 55,829,239 | 55,903,672 | 55,781,276 | 55,881,948 |
Diluted: | 55,829,239 | 56,243,608 | 55,781,276 | 55,881,948 |
NAVIGATOR HOLDINGS LTD. | ||
Condensed Consolidated Statements of Cash Flows | ||
(Unaudited) | ||
Nine Months ended | Nine Months ended | |
(in thousands) | ||
Cash flows from operating activities | ||
Net loss | $ (13,903) | $ (2,312) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Unrealized (gain)/loss on non-designated derivative instruments | 3,552 | 5,470 |
Depreciation and amortization | 56,870 | 57,541 |
Payment of drydocking costs | (9,060 ) | (7,307) |
Amortization of share-based compensation | 1,116 | 859 |
Amortization of deferred financing costs | 2,936 | 3,836 |
Call option premium on redemption of 7.75% senior unsecured bonds | — | 236 |
Share of result of equity accounted joint ventures | 247 | 58 |
Unrealized foreign exchange loss/(gain) on senior secured bonds | (3,219) | (4,953) |
Other unrealized foreign exchange gain | (198) | (306) |
Changes in operating assets and liabilities | ||
Accounts receivable | (6,599) | 907 |
Bunkers and lubricant oils | 343 | (20) |
Accrued income and prepaid expenses and other assets | (1,546) | (7,285) |
Accounts payable, accrued interest, accrued expenses and other liabilities | 3,851 | 6,488 |
Amounts due to related parties | — | 162 |
Net cash provided by operating activities | 34,390 | 53,374 |
Cash flows from investing activities | ||
Payments to acquire ballast water systems | (2,565) | (1,756) |
Investment in equity accounted joint ventures | (75,440 ) | (15,000) |
Purchase of other property, plant and equipment | (255) | (36) |
Insurance recoveries | 1,130 | 740 |
Net cash used in investing activities | (77,130) | (16,052) |
Cash flows from financing activities | ||
Proceeds from secured term loan facilities and revolving credit facilities | 162,000 | 15,000 |
Proceeds from revolving loan facility | — | 185,000 |
Issuance of senior secured bonds | — | 100,000 |
Issuance cost of 8.0% senior unsecured bond | — | (1,963) |
Issuance costs of secured bond | (136) | (141) |
Issuance costs of unsecured bond amendment | (1,325) | — |
Issuance costs of secured term loan facilities | (1,448) | — |
Issuance costs of revolving loan facilities | — | (1,924) |
Issuance costs of refinancing of vessel to related parties | — | (18) |
Repayment of 7.75% senior unsecured bonds | — | (100,236) |
Repayment of financing of vessel to related parties | — | (5,208) |
Issuance costs of Terminal Facility | (2,765) | (72) |
Repayment of secured term loan facilities and revolving credit facilities | (128,150 ) | (226,834) |
Net cash provided/(used in) by financing activities | 28,176 | (36,396) |
Net decrease in cash, cash equivalents and restricted cash | (14,564) | 926 |
Cash, cash equivalents and restricted cash at beginning of period | 71,515 | 66,130 |
Cash, cash equivalents and restricted cash at end of period | $ 56,951 | $ 67,056 |
Supplemental Information | ||
Total interest paid during the period; net of amounts capitalized | $ 35,478 | $ 31,417 |
Total tax paid during the period | $ 225 | $ 212 |
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:
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.
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-third-quarter-2020-results-unaudited-301172417.html
SOURCE Navigator Gas
LONDON, Nov. 6, 2020 /PRNewswire/ -- Navigator Holdings Ltd. ("Navigator") (NYSE: NVGS), the owner and operator of the world's largest fleet of handysize liquefied gas carriers, announced today that it will release its results for the three and nine months ended September 30, 2020 after markets close in New York on Thursday, November 12, 2020.
On Friday, November 13, 2020 at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Conference Call Details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238- 0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote "Navigator" to the operator.
A telephonic replay of the conference call will be available until Friday, November 20, 2020, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009785 (Standard International Dial In). Access Code: 11870348#
Audio Webcast:
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
About Us
Navigator Holdings Ltd. 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. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. 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 'floating pipeline' between the parties. The Company also own 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
Attention: Investor Relations investorrelations@navigatorgas.com
New York: 650 Madison Ave, New York, NY 10022. Tel: +1 212 355 5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-announces-date-for-the-release-of-third-quarter-2020-results-and-conference-call-301168071.html
SOURCE Navigator Gas
LONDON, Aug. 13, 2020 /PRNewswire/ --
(Unaudited)
Highlights
The Company's financial information for the quarter ended June 30, 2020 included in this press release is preliminary and is subject to change in connection with the completion of the Company's quarter-end close procedures and further financial review. Actual results may differ from these estimates as a result of the completion of the Company's quarter-end closing procedures, review adjustments and other developments that may arise between now and the time such financial information for the quarter ended June 30, 2020 is finalized.
Ethylene Marine Export Terminal
The ethylene Marine Export Terminal is fully functional and the 30,000 ton storage tank, which will increase the terminal's throughput capacity, is scheduled to be completed and in service by the end of this year. The terminal achieved a throughput in excess of 80,000 tons during the month of June 2020. The committed offtake agreements, which have minimum terms of five years, account for approximately 95% of the one million ton annual nameplate throughput capacity.
The Company contributed $7.5 million to the Export Terminal Joint Venture during the second quarter of 2020 with an initial draw down on the Company's Terminal Facility. In addition, since June 30, 2020 the Company has contributed a further $7.5 million to the Export Terminal Joint Venture, also drawn from the Terminal Facility. To date the Company has contributed $140.5 million of our expected share of the approximate $150.0 million capital cost of the Marine Export Terminal. The remaining contributions are scheduled to be contributed during 2021.
Trends
Toward the end of the first quarter of 2020, ethylene shipping slowed as Asian demand was materially impacted by COVID-19 lockdowns and a general slowdown in the global economy. This trend continued into the second quarter. However, as Asian economies restarted during the latter half of the second quarter, so too did the demand for ethylene. An upsurge in U.S. ethylene export capacity from our Marine Export Terminal, drove an uptake in cargo liftings from the second half of May onwards, positively impacting handysize ethylene tonnage. June cargoes alone from the two export terminals in the U.S. totaled around 100,000 tons. July and August also kept pace as the ethylene price arbitrage remained open with charter rates and vessel utilization across the ethylene shipping fleet having improved markedly in the latter part of the second quarter.
Propylene has seen a busy second quarter. Asian pricing improved, increasing pricing arbitrage with the result that approximately 75,000 tons was fixed from the U.S. Gulf area on the spot market. Navigator's vessels lifted approximately half of these tons. The Middle East also contributed export tons, with three handysize cargoes employed on the spot market, two of which were on Navigator vessels. European petrochemical producers continued to use naphtha as feedstock throughout this period which resulted in excess butadiene availability, due to low regional demand. These volumes were exported to Asia on handysize semi-refrigerated vessels adding ton-miles to the segment.
LPG freight rates were volatile during the quarter with the Very Large Gas Carrier 12 month time charter index falling by 36% from $1.1 million per calendar month ("pcm") at the beginning of April to $720,000 pcm at the end of June and the Baltic spot index likewise dropping by 44% during this period. The handysize vessel 12 month charter assessment in comparison declined only 5% from $650,000 pcm to $620,000 pcm showing its resilience to volatility and maintaining a stable profile due to the vessels' flexibility in trading in LPG, petrochemicals and ammonia markets.
The Luna Pool commenced operations in April and had 13 out of the 14 designated handysize ethylene vessels operating in the pool by the end of June. The remaining vessel has since been delivered into the pool. The market participants have welcomed additional ethylene vessels to our service offering. It enables us to improve our flexibility and better meet our customers' needs especially during the ramp-up of the Marine Export Terminal, when ship availability and logistical scheduling added value to the stakeholders.
In summary, the quarter started slow due to the negative impacts of COVID-19 on the world economy but it gradually recovered as various government restrictions were eased and consumption improved, bringing monthly utilization levels from mid 80% at the end of the first quarter to approximately 90% from May 2020 onwards, in part due to the increased activity through the Marine Export Terminal.
COVID-19
The impact of COVID-19 continues to affect global economic conditions that effect our business, financial condition and the results of our operations. The ultimate severity of COVID-19 is uncertain and its future effects depend on the spread of the outbreak, the reactions of various national governments and the duration of the effects of the virus. Therefore, an estimate of the likely impact cannot be made at this time.
Crew changes continue to be a challenge, consistent with most shipowners, although an increasing number of crew changes have successfully occurred during the quarter, with 380 crew relieved, but still leaving over 130 with overdue leave. Drydocking vessels have resumed in various dockyards around the world and the Company has undertaken three drydocks during the second quarter, with a further eight being scheduled for later in the year.
Financing
To increase liquidity, the Company entered into an agreement with the lenders of the Terminal Facility to allow an early true-up of $34.0 million, enabling those funds to be immediately drawn for general corporate purposes due to previous capital contributions for the Marine Export Terminal being paid from the Company's own resources. In addition, the company is seeking to refinance one of its vessel loans to unlock approximately an additional $30 million for general corporate purposes. This refinancing is expected to be completed during the third quarter.
The Company continues to assess the capital markets for refinancing its existing $100 million senior unsecured bond that matures in February 2021. The Company has engaged financial advisors to investigate opportunities in this regard.
Results of Operations for the Three Months Ended June 30, 2019 Compared to the Three Months Ended June 30, 2020 | |||
The following table compares our operating results for the three months ended June 30, 2019 and 2020: | |||
Three Months
| Three Months
| Percentage
| |
(in thousands, except percentages) | |||
Operating revenue | $ 73,586 | $ 79,869 | 8.5% |
Operating revenue – Pool collaborative arrangements | - | 2,596 | - |
Total Operating Revenue | $ 73,586 | $ 82,465 | 12.1% |
Operating expenses: | |||
Brokerage commissions | 1,233 | 1,305 | 5.8% |
Voyage expenses | 16,437 | 14,728 | (10.4%) |
Voyage expenses – Pool collaborative arrangements | - | 2,926 | - |
Vessel operating expenses | 27,448 | 26,493 | (3.5%) |
Depreciation and amortization | 18,913 | 19,151 | 1.3 % |
General and administrative costs | 5,195 | 4,509 | (13.2%) |
Total operating expenses | $ 69,226 | $ 69,112 | (0.2%) |
Operating income | $ 4,360 | $ 13,353 | 206.3% |
Foreign currency exchange loss on senior secured bonds | (768) | (4,852) | n/a |
Unrealized gain on non-designated derivative instruments | 861 | 6,354 | n/a |
Interest expense | (12,209) | (11,128) | (8.9%) |
Interest income | 205 | 96 | (53.2 %) |
(Loss) / income before taxes and share of result of equity accounted joint venture | $ (7,551) | $ 3,823 | (150.6 %) |
Income taxes | (81) | (168) | 107.4 % |
Share of result of equity accounted joint venture | (101) | (164) | 62.4 % |
Net (loss) / income | $ (7,733) | $ 3,491 | - |
Net income attributable to non-controlling interest | — | (483) | - |
Net (loss) / income attributable to stockholders of Navigator Holdings Ltd | $ (7,733) | $ 3,008 | - |
Operating Revenue. Operating revenue increased by $6.3 million or 8.5% to $79.9 million for the three months ended June 30, 2020, from $73.6 million for the three months ended June 30, 2019. This increase was principally due to:
The following table presents selected operating data for the three months ended June 30, 2019 and 2020, which we believe are useful in understanding the basis for movement in our operating revenue.
Three Months
| Three Months
| |
Fleet Data: | ||
Weighted average number of vessels | 38.0 | 38.0 |
Ownership days | 3,458 | 3,458 |
Available days | 3,362 | 3,414 |
Operating days | 2,866 | 3,015 |
Fleet utilization | 85.2 % | 88.3% |
Average daily time charter equivalent rate (*) | $ 19,940 | $ 21,606 |
* Non-GAAP Financial Measure—Time charter equivalent: Time charter equivalent ("TCE") 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, less any voyage expenses, by the number of operating days for the relevant period. 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 company's 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 Revenue to TCE rate
The following table represents a reconciliation of operating revenue to TCE rate. Operating revenue is the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
Three Months
| Three Months
| |
(in thousands, except operating days | ||
Fleet Data: | ||
Operating revenue (excluding collaborative arrangements) | $ 73,586 | $ 79,869 |
Voyage expenses (excluding collaborative arrangements) | 16,437 | 14,728 |
Operating revenue less Voyage expenses | 57,149 | 65,141 |
Operating days | 2,866 | 3,015 |
Average daily time charter equivalent rate | $ 19,940 | $ 21,606 |
Operating Revenue – pool collaborative arrangements. Operating revenue – collaborative arrangements was $2.6 million for the three months ended June 30, 2020, which was our share of the other Luna Pool participants revenue. The Luna Pool, which comprises nine of the Company's ethylene vessels and five ethylene vessels from Pacific Gas Pte. Ltd., focuses on the transportation of ethylene and ethane to meet the growing demands of our customers. The Luna Pool became operational during the quarter ended June 30, 2020 and consequently there was no Operating Revenue – collaborative arrangements for the three months ended June 30, 2019.
Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.5% of operating revenue, increased by 5.8%, to $1.3 million for the three months ended June 30, 2020, from $1.2 million for the three months ended June 30, 2019, primarily as a result of an increase in operating revenue on which brokerage commissions are based.
Voyage Expenses. Voyage expenses decreased by 10.4% to $14.7 million for the three months ended June 30, 2020, from $16.4 million for the three months ended June 30, 2019. This was primarily due to a decrease in oil prices following the onset of the COVID-19 pandemic and consequently a reduction in the price of bunkers used by our vessels. The number of voyage charter days increased by approximately 6.0% during the during the three months ended June 30, 2020 as compared to the three months ended June 30, 2019 but the reduction in bunker prices more than offset the increased voyage charter costs that would be attributable to this rise. These decreased voyage costs are pass through costs, corresponding to a decrease in operating revenue of the same amount.
Voyage Expenses. – pool collaborative arrangements. Voyage expenses – pool collaborative arrangements were $2.9 million for the three months ended June 30, 2020, which was our other Luna Pool participants share of our revenue, less our Luna Pool management fees. The net effect after deducting operating revenue – pool collaborative arrangements was that our vessels contributed $0.3 million to other participants in the Luna Pool. The Luna Pool became operational during the quarter ended June 30, 2020 and consequently there was no Voyage Expenses – pool collaborative arrangements for the three months ended June 30, 2019.
Vessel Operating Expenses. Vessel operating expenses decreased by 3.5% to $26.5 million for the three months ended June 30, 2020, from $27.4 million for the three months ended June 30, 2019. Average daily vessel operating expenses decreased by $276 per vessel per day, or 3.5%, to $7,661 per vessel per day for the three months ended June 30, 2020, compared to $7,938 per vessel per day for the three months ended June 30, 2019. This was primarily due to a general underspend in vessel operating expenses across the fleet as costs were tightly controlled, as well as some costs being deferred to subsequent quarters as a result of COVID-19.
Depreciation and Amortization. Depreciation and amortization expense increased by 1.3% to $19.2 million for the three months ended June 30, 2020, from $18.9 million for the three months ended June 30, 2019. Depreciation and amortization expense included amortization of capitalized drydocking costs of $2.0 million and $1.8 million for the three months ended June 30, 2020 and 2019 respectively.
General and Administrative Costs. General and administrative costs decreased by $0.7 million or 13.2% to $4.5 million for the three months ended June 30, 2020, from $5.2 million for the three months ended June 30, 2019. The decrease in general and administrative costs was primarily due to a gain on the revaluation of an Indonesian Rupiah bank account as of June 30, 2020, regaining $1.0 million since March 31, 2020 following a strengthening of the Indonesian Rupiah relative to the U.S. dollar.
Non-operating Results
Foreign Currency Exchange Loss on Senior Secured Bonds. Exchange gains and losses relate to non-cash movements on our 600 million Norwegian Kroner 2018 Bonds which are translated to U.S. Dollar at the prevailing exchange rate as of June 30, 2020. The foreign currency exchange loss of $4.9 million for the three months ended June 30, 2020 was as a result of the Norwegian Kroner strengthening against the U.S. dollar, being NOK 9.7 to USD 1.0 as of June 30, 2020 compared to NOK 10.5 to USD 1.0 as of March 31, 2020.
Unrealized Gain on Non-designated Derivative Instruments. The unrealized gain on non-designated derivative instruments of $6.4 million for the three months ended June 30, 2020 relates to the fair value movement in our cross-currency interest rate swap and is primarily due to the strengthening of the Norwegian Kroner against the U.S. dollar. The unrealized gain on this swap for the three months ended June 30, 2019 was $0.8 million.
Interest Expense. Interest expense decreased by $1.1 million, or 8.9%, to $11.1 million for the three months ended June 30, 2020, from $12.2 million for the three months ended June 30, 2019. This is primarily as a result of a reduction in 3-month US LIBOR interest rates.
Income Taxes. Income taxes related to taxes on our subsidiaries incorporated in the United Kingdom, Poland and Singapore and our consolidated variable interest entity ("VIE"), incorporated in Malta. For the three months ended June 30, 2020, we had a tax charge of $168,000 compared to taxes of $81,000 for the three months ended June 30, 2019.
Share of result of equity accounted joint venture. The share of result of the Company's 50% ownership in the Export Terminal Joint Venture was a loss of $0.2 million for the three months ended June 30, 2020, primarily as a result of initial low volumes through the Marine Export Terminal earlier in the quarter, prior to the commencement of the throughput agreements.
Non-Controlling Interest. We have entered into a sale and leaseback arrangement with a wholly-owned special purpose vehicle ("lessor SPV") of a financial institution. While 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. Thus, the income attributable to the financial institution of $0.5 million is presented as the non-controlling interest in our financial results.
Results of Operations for the Six Months Ended June 30, 2019 Compared to the Six Months Ended June 30, 2020
The following table compares our operating results for the six months ended June 30, 2019 and 2020:
Six Months Ended June 30,
| Six Months 2020
| Percentage
| |
(in thousands, except percentages) | |||
Operating revenue | $ 149,689 | $ 161,126 | 7.6 % |
Operating revenue – Pool collaborative arrangements | - | 2,596 | - |
Total operating revenue | $ 149,689 | $ 163,722 | 9.4% |
Operating expenses: | |||
Brokerage commissions | 2,542 | 2,560 | 0.7 % |
Voyage expenses | 29,794 | 32,272 | 8.3 % |
Voyage expenses - Pool collaborative arrangements | - | 2,926 | - |
Vessel operating expenses | 56,922 | 53,899 | (5.3%) |
Depreciation and amortization | 37,861 | 38,361 | 1.3% |
General and administrative costs | 9,997 | 11,017 | 10.2 % |
Total operating expenses | $ 137,116 | $ 141,035 | 2.9% |
Operating income | $ 12,573 | $ 22,687 | 80.4% |
Foreign currency exchange (loss)/gain on senior secured bonds | (952) | 6,565 | n/a |
Unrealized gain/(loss) on non-designated derivative instruments | 1,645 | (7,607) | n/a |
Interest expense | (24,362) | (22,668) | (7.0%) |
Interest income | 420 | 315 | (25.0%) |
(Loss)/ income before taxes and share of result of equity accounted joint venture | $ (10,676) | $ (708) | (93.4%) |
Income taxes | (174) | (336) | 93.1 % |
Share of result of equity accounted joint venture | (140) | (3,205) | n/a |
Net loss | $ (10,990) | $ (4,249) | (61.3%) |
Net income attributable to non-controlling interest | — | (905) | — |
Net loss attributable to stockholders of Navigator Holdings Ltd | $ (10,990) | $ (5,154) | (53.1%) |
Operating Revenue. Operating revenue, net of address commission, increased by $11.4 million or 7.6% to $161.1 million for the six months ended June 30, 2020, from $149.7 million for the six months ended June 30, 2019. This increase was principally due to:
The following table presents selected operating data for the six months ended June 30, 2019 and 2020, which we believe are useful in understanding the basis for movement in our operating revenue.
Six Months
| Six Months
| |
Fleet Data: | ||
Weighted average number of vessels | 38.0 | 38.0 |
Ownership days | 6,878 | 6,916 |
Available days | 6,761 | 6,846 |
Operating days | 5,746 | 6,070 |
Fleet utilization | 85.0 % | 88.7% |
Average daily time charter equivalent rate (*) | $ 20,864 | $ 21,228 |
* Non-GAAP Financial Measure—Time charter equivalent: Time charter equivalent ("TCE") 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, less any voyage expenses, by the number of operating days for the relevant period. 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 company's 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 Revenue to TCE rate
The following table represents a reconciliation of operating revenue to TCE rate. Operating revenue is the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
Six Months
| Six Months
| |
(in thousands, except operating days | ||
Fleet Data: | ||
Operating revenue (excluding collaborative arrangements) | $ 149,689 | $ 161,126 |
Voyage expenses (excluding collaborative arrangements) | 29,794 | 32,272 |
Operating revenue less Voyage expenses | 119,895 | 128,854 |
Operating days | 5,746 | 6,070 |
Average daily time charter equivalent rate | $ 20,864 | $ 21,228 |
Operating Revenue – pool collaborative arrangements. Operating revenue – collaborative arrangements was $2.6 million for the six months ended June 30, 2020, which was our share of the other Luna Pool participants revenue. The Luna Pool became operational during the quarter ended June 30, 2020 and consequently there was no Operating Revenue – pool collaborative arrangements for the six months ended June 30, 2019.
Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.5% of operating revenue, increased by 0.7%, to $2.6 million for the six months ended June 30, 2020, from $2.5 million for the six months ended June 30, 2019. The increase was primarily due to an increase in operating revenue on which brokerage commissions are based.
Voyage Expenses. Voyage expenses increased by 8.3% to $32.3 million for the six months ended June 30, 2020, from $29.8 million for the six months ended June 30, 2019. This was primarily due to the cost of low sulfur fuel in accordance with new International Maritime Organization regulations which came into force from January 1, 2020 requiring vessels to use fuel with a range of no more than 0.1% to 0.5% sulfur emissions depending on their area of trading and an increase in canal transits performed by our vessels during the six months ended June 30, 2020 as compared to the six months ended June 30, 2019. Bunker prices have reduced during the six months ended June 30, 2020 due to the drop in the oil price as a result of the COVID-19 pandemic but there is still an effect from the higher prices seen in the first quarter on bunker costs within voyage expenses. These increased voyage costs are pass through costs, corresponding to an increase in operating revenue of the same amount.
Voyage Expenses. – pool collaborative arrangements. Voyage expenses – pool collaborative arrangements was $2.9 million for the six months ended June 30, 2020, which was our other Luna Pool participants share of our revenue, less our Luna Pool management fees. The net effect after deducting operating revenue – pool collaborative arrangements was that our vessels contributed $0.3 million to other participants in the Luna Pool. The Luna Pool became operational during the quarter ended June 30, 2020 and consequently there was no Voyage Expenses – pool collaborative arrangements for the six months ended June 30, 2019.
Vessel Operating Expenses. Vessel operating expenses decreased by 5.3% to $53.9 million for the six months ended June 30, 2020, from $56.9 million for the six months ended June 30, 2019. Average daily vessel operating expenses decreased by $483 per vessel per day, or 5.8%, to $7,793 per vessel per day for the six months ended June 30, 2020, compared to $8,276 per vessel per day for the six months ended June 30, 2019. This was primarily due to a general underspend in vessel operating expenses across the fleet during the six months ended June 30, 2020 compared to the six months ended June 30, 2019 as well as unexpected costs incurred for repairs and maintenance for the six months ended June 30, 2019 which have not reoccurred for the six months ended June 30, 2020.
Depreciation and Amortization. Depreciation and amortization expense increased by 1.3% to $38.4 million for the six months ended June 30, 2020, from $37.9 million for the six months ended June 30, 2019. Depreciation and amortization expense included amortization of capitalized drydocking costs of $4.1 million and $3.7 million for the six months ended June 30, 2020 and 2019 respectively.
General and Administrative Costs. General and administrative costs increased by $1.0 million or 10.2% to $11.0 million for the six months ended June 30, 2020, from $10.0 million for the six months ended June 30, 2019. This increase in general and administrative costs was primarily due to additional insurance costs of $0.4 million for the now operational Marine Export Terminal and the write off of previously capitalized costs of $0.5 million relating to the same Marine Export Terminal.
Non-operating Results
Foreign Currency Exchange (Loss)/Gain on Senior Secured Bonds. Exchange gains and losses relate to non-cash movements on our 600 million Norwegian Kroner 2018 Bonds which are translated to U.S. Dollars at the prevailing exchange rate as of June 30, 2020. The foreign currency exchange gain of $6.6 million for the six months ended June 30, 2020 was as a result of the Norwegian Kroner weakening against the U.S. dollar, being NOK 9.7 to USD 1.0 as of June 30, 2020 compared to NOK 8.8 to USD 1.0 as of December 31, 2019.
Unrealized Gain/(Loss) on Non-designated Derivative Instruments. The unrealized loss on non-designated derivative instruments of $7.6 million for the six months ended June 30, 2020 relates to the fair value movement in our cross-currency interest rate swap and is primarily due to the weakening of the Norwegian Kroner against the U.S. dollar. The unrealized gain on this swap for the six months ended June 30, 2019 was $1.6 million.
Interest Expense. Interest expense decreased by $1.7 million, or 7.0%, to $22.7 million for the six months ended June 30, 2020, from $24.4 million for the six months ended June 30, 2019. This is primarily as a result of a reduction in 3-month US LIBOR interest rates, $1.0 million of which was offset by a lower amount of interest capitalization on the Marine Export Terminal for the six months ended June 30, 2020 compared to the six months ended June 30, 2019.
Income Taxes. Income taxes related to taxes on our subsidiaries incorporated in the United Kingdom, Poland and Singapore and our consolidated variable interest entity ("VIE"), incorporated in Malta. For the six months ended June 30, 2020, we had a tax charge of $336,000 compared to taxes of $174,000 for the six months ended June 30, 2019.
Share of result of equity accounted joint venture. The share of result of the Company's 50% ownership in the Export Terminal Joint Venture was a loss of $3.2 million for the six months ended June 30, 2020 compared to a loss of $0.1 million for the six months ended June 30, 2019, primarily as a result of initial losses following the terminal becoming operational in December 2019. However volumes of product through the Marine Export Terminal have increased during the second quarter of 2020.
Non-Controlling Interest. We have entered into a sale and leaseback arrangement with a wholly-owned special purpose vehicle ("lessor SPV") of a financial institution. While 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. Thus, the income attributable to the financial institution of $0.9 million is presented as the non-controlling interest in our financial results.
Reconciliation of Non-GAAP Financial Measures
The following table sets forth a reconciliation of net income attributable to the stockholders of the Company to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2019 and 2020:
(in thousands) | (in thousands) | |||||||
Three months ended | Six months ended | |||||||
June 30, | June 30, | June 30, | June 30, | |||||
Net income / (loss) attributable to the stockholders of Navigator Holdings Ltd. | $ (7,733) | $ 3,008 | $ (10,990) | $ (5,154 ) | ||||
Net interest expense | 12,004 | 11,032 | 23,942 | 22,353 | ||||
Income taxes | 81 | 168 | 174 | 336 | ||||
Depreciation and amortization | 18,913 | 19,151 | 37,861 | 38,361 | ||||
EBITDA(1) | $ 23,265 | $ 33,359 | $ 50,987 | $ 55,896 | ||||
Foreign currency exchange loss / (gain) on senior secured bonds | 768 | 4,852 | 952 | (6,565 ) | ||||
Unrealized loss / (gain) on non-designated derivative instruments | (861) | (6,354) | (1,645) | 7,607 | ||||
Adjusted EBITDA(1) | $ 23,172 | $ 31,857 | $ 50,294 | $ 56,938 | ||||
`
1 EBITDA and Adjusted EBITDA are not measurements prepared in accordance with U.S. GAAP (non-GAAP financial measures). EBITDA represents net income attributable to stockholders of the Company before net interest expense, income taxes and depreciation and amortization. We define Adjusted EBITDA as EBITDA before foreign currency exchange gain or loss on senior secured bonds and unrealized gain or loss on non-designated derivative instruments. 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. See the table above for a reconciliation of EBITDA and Adjusted EBITDA to net income / (loss) attributable to stockholders of the Company, our most directly comparable U.S. GAAP financial measure.
Our Fleet
The following table sets forth our vessels as of August 13, 2020:
Operating Vessel
| Year
| Vessel Size
| Employment
| Current Cargo
| Charter
|
Ethylene/ethane capable semi-refrigerated | |||||
Navigator Orion* | 2000 | 22,085 | Contract of affreightment | Ethylene | — |
Navigator Neptune* | 2000 | 22,085 | Time charter | Ethane | October 2020 |
Navigator Pluto | 2000 | 22,085 | Time charter | LPG | January 2021 |
Navigator Saturn* | 2000 | 22,085 | Spot market | Ethylene | — |
Navigator Venus* | 2000 | 22,085 | Time charter | Ethane | November 2020 |
Navigator Atlas* | 2014 | 21,000 | Contract of affreightment | Ethylene | — |
Navigator Europa* | 2014 | 21,000 | Contract of affreightment | Ethylene | — |
Navigator Oberon* | 2014 | 21,000 | Contract of affreightment | Ethylene | — |
Navigator Triton* | 2015 | 21,000 | Spot market | Ethylene | — |
Navigator Umbrio* | 2015 | 21,000 | Contract of affreightment | Ethylene | — |
Navigator Aurora | 2016 | 37,300 | Time charter | LPG | December 2026 |
Navigator Eclipse | 2016 | 37,300 | Spot market | Ethylene | — |
Navigator Nova | 2017 | 37,300 | Time charter | Ethane | September 2023 |
Navigator Prominence | 2017 | 37,300 | Time charter | Ethane | December 2021 |
Semi-refrigerated | |||||
Navigator Magellan | 1998 | 20,700 | Time charter | LPG | October 2020 |
Navigator Aries | 2008 | 20,750 | Time charter | LPG | September 2020 |
Navigator Capricorn | 2008 | 20,750 | Spot market | Propylene | — |
Navigator Gemini | 2009 | 20,750 | Spot market | — | — |
Navigator Pegasus | 2009 | 22,200 | Spot market | — | — |
Navigator Phoenix | 2009 | 22,200 | Spot market | — | — |
Navigator Scorpio | 2009 | 20,750 | Time charter | LPG | August 2020 |
Navigator Taurus | 2009 | 20,750 | Spot market | LPG | — |
Navigator Virgo | 2009 | 20,750 | Spot market | LPG | — |
Navigator Leo | 2011 | 20,600 | Time charter | LPG | December 2023 |
Navigator Libra | 2012 | 20,600 | Time charter | LPG | December 2023 |
Navigator Centauri | 2015 | 21,000 | Time charter | LPG | September 2020 |
Navigator Ceres | 2015 | 21,000 | Spot market | — | — |
Navigator Ceto | 2016 | 21,000 | Spot market | Butadiene | — |
Navigator Copernico | 2016 | 21,000 | Spot market | Propylene | — |
Navigator Luga | 2017 | 22,000 | Time charter | LPG | February 2022 |
Navigator Yauza | 2017 | 22,000 | Time charter | LPG | April 2022 |
Fully-refrigerated | |||||
Navigator Glory | 2010 | 22,500 | Time charter | Ammonia | June 2021 |
Navigator Grace | 2010 | 22,500 | Drydock | - | — |
Navigator Galaxy | 2011 | 22,500 | Spot market | LPG | — |
Navigator Genesis | 2011 | 22,500 | Time charter | LPG | July 2021 |
Navigator Global | 2011 | 22,500 | Time charter | LPG | November 2020 |
Navigator Gusto | 2011 | 22,500 | Time charter | LPG | December 2020 |
Navigator Jorf | 2017 | 38,000 | Time charter | Ammonia | August 2027 |
*denotes our owned vessels that operate within the Luna Pool
Conference Call Details:
Tomorrow, Friday, August 14, 2020, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the preliminary financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928 592 (Standard International Dial In). Please quote "Navigator" to the operator. There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A telephonic replay of the conference call will be available until August 21, 2020, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009 785 (Standard International Dial In). Access Code: 11870348#
About Us
Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet. The Company also 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 HOLDINGS LTD | ||
Condensed Consolidated Balance Sheets | ||
(Unaudited) | ||
December 31, 2019
| June 30, 2020
| |
(in thousands, except share data) | ||
Assets | ||
Current assets | ||
Cash, cash equivalents | $ 64,820 | $ 53,082 |
Restricted Cash | 1,310 | 8,170 |
Accounts receivable, net of allowance for credit losses of $228,000, (December 31, 2019: nil) | 23,462 | 22,886 |
Accrued income | 6,280 | 9,313 |
Prepaid expenses and other current assets | 17,670 | 20,082 |
Bunkers and lubricant oils | 9,645 | 9,155 |
Insurance Receivable | 2,939 | 2,950 |
Total current assets | 126,126 | 125,638 |
Non-current assets | ||
Vessels, net | 1,609,527 | 1,574,908 |
Property, plant and equipment, net | 1,159 | 886 |
Investment in equity accounted joint venture | 130,660 | 135,310 |
Right-of-use asset for operating leases | 6,781 | 6,249 |
Prepaid expenses and other non-current assets | — | 3,398 |
Total non-current assets | 1,748,127 | 1,720,751 |
Total assets | $ 1,874,253 | $ 1,846,389 |
Liabilities and stockholders' equity | ||
Current liabilities | ||
Current portion of secured term loan facilities, net of deferred financing costs | $ 64,703 | $ 72,107 |
Senior unsecured bond, net of deferred financing costs | — | 99,394 |
Current portion of operating lease liabilities | 1,178 | 1,157 |
Accounts payable | 10,472 | 10,994 |
Accrued expenses and other liabilities | 14,124 | 15,601 |
Accrued interest | 4,424 | 4,087 |
Deferred income | 14,154 | 15,800 |
Amounts due to related parties | 451 | 1,051 |
Total current liabilities | 109,506 | 220,191 |
Non-current liabilities | ||
Secured term loan facilities and revolving credit facilities, net of current portion and deferred financing costs | 578,676 | 546,254 |
Senior secured bond, net of deferred financing costs | 67,503 | 60,936 |
Senior unsecured bond, net of deferred financing costs | 98,513 | — |
Derivative liabilities | 5,769 | 13,377 |
Operating lease liabilities, net of current portion | 6,329 | 5,353 |
Amounts due to related parties | 68,055 | 64,328 |
Total non-current liabilities | 824,845 | 690,248 |
Total Liabilities | 934,351 | 910,439 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock—$.01 par value per share; 400,000,000 shares authorized; 55,905,294 shares issued and outstanding, (December 31, 2019: 55,826,644) | 558 | 559 |
Additional paid-in capital | 592,010 | 592,548 |
Accumulated other comprehensive loss | (331) | (422) |
Retained earnings | 347,566 | 342,261 |
Total Navigator Holdings Ltd. stockholders' equity | 939,803 | 934,946 |
Non-controlling interest | 99 | 1,004 |
Total equity | 939,902 | 935,950 |
Total liabilities and stockholders' equity | $ 1,874,253 | $ 1,846,389 |
NAVIGATOR HOLDINGS LTD | ||||
Condensed Consolidated Statements of Operations | ||||
(Unaudited) | ||||
Three months ended June 30, | Six months ended June 30, | |||
2019 | 2020 | 2019 | 2020 | |
(in thousands except share and per share data) | ||||
Revenues | ||||
Operating revenue | $ 73,586 | $ 79,869 | $ 149,689 | $ 161,126 |
Operating revenue- Luna Pool collaborative arrangement | — | 2,596 | — | 2,596 |
Total operating revenues | 73,586 | 82,465 | 149,689 | 163,722 |
Expenses | ||||
Brokerage commissions | 1,233 | 1,305 | 2,542 | 2,560 |
Voyage expenses | 16,437 | 14,728 | 29,794 | 32,272 |
Voyage expenses – Luna Pool collaborative arrangement | — | 2,926 | — | 2,926 |
Vessel operating expenses | 27,448 | 26,493 | 56,922 | 53,899 |
Depreciation and amortization | 18,913 | 19,151 | 37,861 | 38,361 |
General and administrative costs | 5,195 | 4,509 | 9,997 | 11,017 |
Total operating expenses | 69,226 | 69,112 | 137,116 | 141,035 |
Operating income | 4,360 | 13,353 | 12,573 | 22,687 |
Other income / (expense) | ||||
Foreign currency exchange (loss) /gain on senior secured bonds | (768) | (4,852) | (952) | 6,565 |
Unrealized gain / (loss) on non-designated derivative instruments | 861 | 6,354 | 1,645 | (7,607 ) |
Interest expense | (12,209 ) | (11,128) | (24,362 ) | (22,668) |
Interest income | 205 | 96 | 420 | 315 |
(Loss) / income before income taxes and share of result of equity accounted joint venture | (7,551) | 3,823 | (10,676) | (708) |
Income taxes | (81) | (168 ) | (174) | (336) |
Share of result of equity accounted joint ventures | (101) | (164 ) | (140) | (3,205) |
Net (loss) / income | (7,733) | 3,491 | (10,990) | (4,249) |
Net income attributable to non-controlling interest | — | (483) | — | (905) |
Net (loss) / income attributable to stockholders of Navigator Holdings Ltd | $ (7,733) | $ 3,008 | $ (10,990) | $ (5,154 ) |
(Loss) / earnings per share attributable to stockholders of Navigator Holdings Ltd.: | ||||
Basic and diluted: | $ (0.14) | $ 0.05 | $ (0.20) | $ (0.09) |
Weighted average number of shares outstanding: | ||||
Basic: | 55,832,069 | 55,905,600 | 55,756,897 | 55,871,893 |
Diluted: | 55,832,069 | 56,253,778 | 55,756,897 | 55,871,893 |
NAVIGATOR HOLDINGS LTD | ||
Condensed Consolidated Statements of Cash Flows | ||
(Unaudited) | ||
Six Months ended
| Six Months ended
| |
(in thousands) | ||
Cash flows from operating activities | ||
Net loss | $ (10,990 ) | $ (4,249) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Unrealized (gain)/loss on non-designated derivative instruments | (1,645) | 7,607 |
Depreciation and amortization | 37,861 | 38,361 |
Payment of drydocking costs | (5,160 ) | (2,546 ) |
Amortization of share-based compensation | 747 | 539 |
Amortization of deferred financing costs | 1,473 | 2,251 |
Share of result of equity accounted joint venture | 140 | 3,205 |
Unrealized foreign exchange loss/(gain) on senior secured bonds | 952 | (6,565) |
Other unrealized foreign exchange gain | (47) | (440 ) |
Changes in operating assets and liabilities | ||
Accounts receivable | (3,133) | 425 |
Bunkers and lubricant oils | (1,460 ) | 490 |
Accrued income and prepaid expenses and other current assets | (4,013) | (9,253) |
Accounts payable, accrued interest, accrued expenses and other liabilities | 2,012 | 2,311 |
Amounts due to related parties | — | 600 |
Net cash provided by operating activities | 16,737 | 32,736 |
Cash flows from investing activities | ||
Payments to acquire ballast water systems | (1,396) | (982 ) |
Investment in equity accounted joint venture | (51,491 ) | (7,500 ) |
Purchase of other property, plant and equipment | (191) | (19 ) |
Insurance recoveries | 130 | 609 |
Net cash used in investing activities | (52,948) | (7,892) |
Cash flows from financing activities | ||
Proceeds from secured term loan facilities and revolving credit facilities | 127,000 | 7,500 |
Issuance costs of secured bond | (136) | (141) |
Issuance costs of secured term loan facilities | (1,448) | — |
Issuance costs of refinancing of vessel to related parties | — | (18) |
Repayment of financing of vessel to related parties | — | (3,724) |
Issuance costs of Terminal Facility | (2,723) | (72 ) |
Repayment of secured term loan facilities and revolving credit facilities | (110,712 ) | (33,267) |
Net cash provided/(used in) by financing activities | 11,981 | (29,722) |
Net decrease in cash, cash equivalents and restricted cash | (24,230 ) | (4,878 ) |
Cash, cash equivalents and restricted cash at beginning of period | 71,515 | 66,130 |
Cash, cash equivalents and restricted cash at end of period | $ 47,285 | $ 61,252 |
Supplemental Information | ||
Total interest paid during the period, net of amounts capitalized | $ 22,776 | $ 20,559 |
Total tax paid during the period | $ 165 | $ 110 |
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:
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.
Navigator Gas
Attention: Investor Relations Department - investorrelations@navigatorgas.com
New York: 650 Madison Ave, New York, NY 10022. Tel: +1 212 355 5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-second-quarter-2020-results-301112180.html
SOURCE Navigator Gas
LONDON, Aug. 11, 2020 /PRNewswire/ -- Navigator Holdings Ltd. ("Navigator") (NYSE: NVGS), the owner and operator of the world's largest fleet of handysize liquefied gas carriers, announced today that it will release its results for the three months and six months ended June 30, 2020 after market closes in New York on Thursday, August 13, 2020.
On Friday, August 14, 2020 at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Conference Call Details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238- 0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote "Navigator" to the operator.
A telephonic replay of the conference call will be available until Friday, August 21, 2020, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009785 (Standard International Dial In). Access Code: 11870348#
Audio Webcast:
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
About Us
Navigator Holdings Ltd. 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. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. The Company also own 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
Attention: Investor Relations investorrelations@navigatorgas.com
New York: 650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1 212 355 5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-announces-date-for-the-release-of-second-quarter-2020-results-and-conference-call-301110163.html
SOURCE Navigator Gas
LONDON, May 28, 2020 /PRNewswire/ --
Highlights
The Company's financial information for the quarter ended March 31, 2020 included in this press release is preliminary and is subject to change in connection with the completion of the Company's quarter-end close procedures and further financial review. Actual results may differ from these estimates as a result of the completion of the Company's quarter-end closing procedures, review adjustments and other developments that may arise between now and the time such financial information for the quarter ended March 31, 2020 is finalized.
Recent Developments
Terminal
In April 2020, a further long-term throughput commitment was executed for the Marine Export Terminal, increasing total offtake commitments to approximately 95% of the one million ton annual nameplate capacity. The terminal is now fully functional and the throughput agreements are ramping up. The terminal is expected to operate at a level of approx. 600,000 tons per annum pro-rata until the cryogenic storage tank becomes operational later this year.
The Company did not make any contributions to the Export Terminal Joint Venture during the first quarter, However since March 31, 2020 the Company has contributed $7.5 million to the Export Terminal Joint Venture by drawing down on the Company's terminal credit facility. This is in addition to the $125.5 million contributed as of December 31, 2019 of our expected share of the approximate $150.0 million capital cost of the Marine Export Terminal.
Luna Pool
In March 2020, the Company collaborated with Pacific Gas Pte. Ltd. and Greater Bay Gas Co. Ltd. to form and manage the Luna Pool, focusing on the transportation of ethylene and ethane to meet the growing demands of our customers. The Luna Pool became operational during the second quarter of 2020, initially with the introduction of seven vessels. It is expected that all 14 will have joined the pool by the end of the second quarter. Currently nine of the 12 vessels in the pool are transporting ethylene, two carrying ethane and one carrying propylene.
Trends
2020 began well in January this year, with healthy utilization of our vessels at 97% and Clarksons' 12 month timecharter assessment reaching a high of $695,000 per calendar month. This upward trajectory was disrupted by the COVID-19 Pandemic and the subsequent lock-downs, first starting in Asia which were swiftly followed by the rest of the world. As a consequence, our February and March utilization levels fell to 84% and 85% respectively as a result of reduced economic activity. However, LPG demand remained relatively resilient to COVID-19 as it fulfills a fundamental energy need for heating and cooking among the world's population. Most of the LPG transported in handysize vessels cater for this domestic demand and we expect the traditional intra-continent handysize LPG trades to remain largely unaffected. The larger gas carrier segment is more sensitive to changes in global LPG price arbitrage as well as to the replacement of LPG as a preferred feedstock in the petrochemical sector compared to the handysize segment. The U.S. became the largest exporter of LPG in 2019 and the volume is dependent on both local demand and global pricing which affects the monthly output from the country and more importantly the availability of tons to be shipped. This in turn impacts the rate levels for Very Large Gas Carriers. Handysize vessels distribute a small fraction of the U.S. LPG volume as the vast majority is transported long distance across the Pacific Ocean by larger vessels. By contrast, Handysize vessels are predominately employed in other LPG exporting and consuming areas which are more sheltered from global price arbitrage movements. Whereas the larger gas carrier segments have high price volatility, the handysize quoted timecharter index fell by only 5% to $665,000 per calendar month at the end of the first quarter.
April continued in the same vein as March in terms of utilization of our vessels. However China and many other countries are gradually beginning to ease out of lock-down and re-start manufacturing sites. Ethylene from the Marine Export Terminal re-commenced during May with the cargoes moving world-wide. U.S. produced propylene was exported for the first time in more than a decade on handysize vessels bound for Far Eastern destinations. European producers continued exporting butadiene to East of Suez importers. These deep-sea petrochemical trades provide robust ton-mile demand to the segment. Therefore, combining both LPG and petrochemical trends during the period, we see May utilization of our vessels regaining some lost ground and is on track to reach the approximately 90% level. 2020 has been and continues to be disrupted by COVID-19. Uncertainty remains as to the impact of COVID-19. As more and more countries ease themselves out of lock-downs and re-start their economies it is expected that demand for long haul petrochemical cargoes and regional LPG distribution will increase.
COVID-19
The impact of COVID-19 continues to affect global economic conditions that effect our business, financial condition and the results of our operations. The ultimate severity of COVID-19 is uncertain and its future effects depend on the spread of the outbreak, the reactions of various national governments and the duration of the impacts of the virus. Therefore an estimate of the likely impact cannot be made at this time.
The Company and its two third-party technical managers continue to have challenges with crew changes, consistent with most shipowners, although a small number of crew changes have recently taken place, as a result of some countries being more accessible than others. The Company continues to assess when it is safe and feasible to undertake crew changes.
Drydocking vessels and arranging surveyors to carry out Ship Inspection Report Programme (SIRE) and Chemical Distribution Institute (CDI) inspections also remains more complex, with flag state, classification societies, as well as our charterers currently taking a pragmatic approach when it comes to providing extensions or requiring vetting approvals for our vessels.
The Company has no debt facilities maturing during 2020 and has only one debt instrument maturing in 2021, a $100.0 million bond with Nordic Trustee AS as bond trustee, that matures in February 2021. The Company continues to assess the capital markets and is considering options for deferring its maturity or refinancing the bond using alternative capital raising.
Results of Operations for the Three Months Ended March 31, 2019 Compared to the Three Months Ended March 31, 2020
The following table compares our operating results for the three months ended March 31, 2019 and 2020:
Three Months Ended | Three Months Ended | Percentage | |
(in thousands, except percentages) | |||
Operating revenue....................................................................... | $ 76,103 | $ 81,257 | 6.8 % |
Operating expenses: | |||
Brokerage Commissions................................................. | 1,309 | 1,255 | (4.1 %) |
Voyage expenses.............................................................. | 13,357 | 17,544 | 31.3 % |
Vessel operating expenses.............................................. | 29,474 | 27,406 | (7.0 %) |
Depreciation and amortization...................................... | 18,947 | 19,210 | 1.4 % |
General and administrative costs.................................. | 4,803 | 6,031 | 25.6 % |
Total operating expenses................................................ | 67,890 | 71,446 | 5.2 % |
Operating income........................................................................ | 8,213 | 9,811 | 19.5 % |
Foreign currency exchange (loss) / gain on senior secured bonds.............................................................. | (184) | 11,417 | n/a |
Unrealized gain / (loss) on non-designated derivative instruments................................................................... | 783 | (13,961) | n/a |
Interest expense................................................................ | (12,153) | (12,372) | 1.8 % |
Interest income................................................................. | 215 | 219 | 1.9 % |
Loss before income taxes and share of result of equity accounted joint venture....................................................... | (3,126) | (4,886) | 56.3 % |
Income taxes............................................................................... | (93) | (168) | 80.6 % |
Share of result of equity accounted joint venture................ | (38) | (3,041) | — |
Net loss.......................................................................................... | (3,257) | (8,095) | 148.5 % |
Net income attributable to non-controlling interest.............. | — | (422) | — |
Net loss attributable to stockholders of Navigator Holdings Ltd........................................................................... | $ (3,257) | $ (8,517) | 161.5 % |
Operating Revenue. Operating revenue net of address commission, increased by $5.2 million or 6.8% to $81.3 million for three months ended March 31, 2020, from $76.1 million for the three months ended March 31, 2019. This increase was primarily due to:
The following table presents selected operating data for the three months ended March 31, 2019 and 2020, which we believe is useful in understanding the basis for movements in operating revenue:
Three Months Ended | Three Months Ended | |
Fleet Data: | ||
Weighted average number of vessels.............................. | 38.0 | 38.0 |
Ownership days................................................................... | 3,420 | 3,458 |
Available days.................................................................... | 3,398 | 3,432 |
Operating days.................................................................... | 2,881 | 3,055 |
Fleet utilization.................................................................... | 84.8 % | 89.0 % |
Average daily time charter equivalent rate (*).............. | $ 21,782 | $ 20,855 |
* Non-GAAP Financial Measure - Time charter equivalent: Time charter equivalent ("TCE"), 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, less any voyage expenses, by the number of operating days for the relevant period. 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 company's 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 Revenue to TCE rate
The following table represents a reconciliation of operating revenue to TCE rate. Operating revenue is the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
Three Months Ended | Three Months Ended | |
Fleet Data: | ||
Operating revenue....................................................... | $ 76,103 | 81,257 |
Voyage expenses......................................................... | 13,357 | 17,544 |
Operating revenue less Voyage expenses............... | 62,746 | 63,713 |
Operating days............................................................. | 2,881 | 3,055 |
Average daily time charter equivalent rate............ | $ 21,782 | $ 20,855 |
Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.0% of revenue, decreased by 4.1% to $1.3 million for the three months ended March 31, 2020, from $1.3 million for the three months ended March 31, 2019 despite an increase in operating revenue on which brokerage commissions are based. The decrease was primarily due to a reduction in the brokerage commissions percentage charged on some of our time charters.
Voyage Expenses. Voyage expenses increased by 31.3% to $17.5 million for three months ended March 31, 2020, from $13.4 million for the three months ended March 31, 2019. This was primarily due to an increase in the number and duration of voyage charters undertaken during the three months ended March 31, 2020, compared to the three months ended March 31, 2019, with these increased voyage costs being pass through costs, corresponding to an increase in operating revenue of the same amount.
Vessel Operating Expenses. Vessel operating expenses decreased by 7.0% to $27.4 million for the year three months ended March 31, 2020, from $29.5 million for the three months ended March 31, 2019. Average daily vessel operating expenses decreased by $693 per vessel per day, or 8.0%, to $7,925 per vessel per day for the three months ended March 31, 2020, compared to $8,618 per vessel per day for the three months ended March 31, 2019. This was primarily due to unexpected costs incurred for repairs and maintenance for the three months ended March 31, 2019, which have not reoccurred for the three months ended March 31, 2020.
Depreciation and Amortization. Depreciation and amortization expense increased by 1.4% to $19.2 million for the three months ended March 31, 2020, from $18.9 million for the three months ended March 31, 2019. Depreciation and amortization expense included amortization of capitalized drydocking costs of $2.1 million and $1.9 million for the three months ended March 31, 2020 and 2019 respectively.
General and Administrative Costs. General and administrative costs increased by $1.2 million or 25.6% to $6.0 million for the three months ended March 31, 2020, from $4.8 million for the three months ended March 31, 2019. The increase in general and administrative costs was primarily due to a revaluation of an Indonesian Rupiah bank account as at March 31, 2020, following a significant weakening of the Indonesian Rupiah against the U.S. dollar in March 2020 as a result of COVID-19, before regaining most of the lost value since the quarter end.
Non-operating Results
Foreign currency exchange gain on senior secured bonds. Exchange gains and losses relate to non-cash movements on our 600 million Norwegian Kroner 2018 Bonds which are translated to U.S. Dollars at the prevailing exchange rate as of March 31, 2020. The foreign currency exchange gain of $11.4 million for the three months ended March 31, 2020 was as a result of the Norwegian Kroner continuing to weaken against the U.S. dollar, being NOK10.5 to USD 1.0 as of March 31, 2020 compared to NOK8.8 to USD 1.0 as of December 31, 2019.
Unrealized loss on non-designated derivative instruments. The unrealized loss on non-designated derivative instruments of $14.0 million relates to the fair value movement in our cross-currency interest rate swap for the three months ended March 31, 2020 and is primarily due to the weakening of the Norwegian Kroner against the U.S. dollar. The unrealized gain on this swap for the three months ended March 31, 2019 was $0.8 million.
Interest Expense. Interest expense increased by $0.2 million, or 1.8%, to $12.4 million for the three months ended March 31, 2020, from $12.2 million for the three months ended March 31, 2019. This is primarily as a result of interest on the Marine Export Terminal that is no longer being capitalized, following the commencement of operations in December 2019, partially offset by a reduction in U.S. LIBOR on all of our floating rate debt facilities.
Income Taxes. Income tax relates to taxes on our subsidiaries incorporated in the United Kingdom, Poland and Singapore and our consolidated variable interest entity ("VIE"), incorporated in Malta. For the three months ended March 31, 2020, we accrued taxes of $168,000 compared to accrued taxes of $93,000 for the three months ended March 31, 2019.
Share of result of equity accounted joint venture. The share of result of the Company's 50% ownership in the Export Terminal Joint Venture was a loss of $3.0 million for the three months ended March 31, 2020, primarily as a result of initial low volumes passing through the Marine Export Terminal following its commencement of operations in December 2019.
Non-Controlling Interest. We have entered into a sale and leaseback arrangement with a wholly-owned special purpose vehicle ("lessor SPV") of a financial institution. While 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. Thus, the income attributable to the financial institution of $0.4 million is presented as the non-controlling interest in our financial results.
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 March 31, 2019 and 2020:
(in thousands) | ||||
Three months ended March 31, | ||||
2019 | 2020 | |||
Net loss | $ (3,257) | $ (8,095 ) | ||
Net interest expense | 11,938 | 12,153 | ||
Income taxes | 93 | 168 | ||
Depreciation and amortization | 18,947 | 19,210 | ||
EBITDA(1) | $ 27,721 | $ 23,436 | ||
Foreign currency exchange loss / (gain) on senior secured bonds | 184 | (11,417) | ||
Unrealized (gain) / loss on non-designated derivative instruments | (783) | 13,961 | ||
Adjusted EBITDA(1) | $ 27,122 | $ 25,980 | ||
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 and depreciation and amortization. We define Adjusted EBITDA as EBITDA before foreign currency exchange gain or loss on senior secured bonds and unrealized gain or loss on non-designated derivative instruments. 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. See the table above for a reconciliation of EBITDA and Adjusted EBITDA to net loss, our most directly comparable financial measure calculated accordance with U.S. GAAP.
Our Fleet
The following table sets forth our vessels as of May 28, 2020:
Operating Vessel | Year | Vessel Size | Employment | Current Cargo | Charter |
Ethylene/ethane capable semi-refrigerated | |||||
Navigator Orion........................................................ | 2000 | 22,085 | Spot market | Ethylene | — |
Navigator Neptune................................................... | 2000 | 22,085 | Time charter | Ethane | October 2020 |
Navigator Pluto......................................................... | 2000 | 22,085 | Time charter | LPG | July 2020 |
Navigator Saturn...................................................... | 2000 | 22,085 | Spot market | Ethylene | — |
Navigator Venus....................................................... | 2000 | 22,085 | Time charter | Ethane | November 2020 |
Navigator Atlas......................................................... | 2014 | 21,000 | Contract of affreightment | Ethylene | July 2020 |
Navigator Europa..................................................... | 2014 | 21,000 | Contract of affreightment | Ethylene | August 2020 |
Navigator Oberon..................................................... | 2014 | 21,000 | Spot market | Ethylene | — |
Navigator Triton....................................................... | 2015 | 21,000 | Spot market | Ethylene | — |
Navigator Umbrio..................................................... | 2015 | 21,000 | Spot market | Propylene | — |
Navigator Aurora...................................................... | 2016 | 37,300 | Time charter | Ethane | December 2026 |
Navigator Eclipse...................................................... | 2016 | 37,300 | Spot market | — | — |
Navigator Nova........................................................ | 2017 | 37,300 | Time charter | Ethane | June 2020 |
Navigator Prominence............................................. | 2017 | 37,300 | Time charter | Ethane | October 2020 |
Semi-refrigerated | |||||
Navigator Magellan................................................. | 1998 | 20,700 | Drydock | — | — |
Navigator Aries......................................................... | 2008 | 20,750 | Time charter | LPG | July 2020 |
Navigator Capricorn................................................ | 2008 | 20,750 | Time charter | LPG | June 2020 |
Navigator Gemini..................................................... | 2009 | 20,750 | Spot market | Butadiene | — |
Navigator Pegasus.................................................... | 2009 | 22,200 | Spot market | Propylene | — |
Navigator Phoenix.................................................... | 2009 | 22,200 | Spot market | Propylene | — |
Navigator Scorpio..................................................... | 2009 | 20,750 | Time charter | LPG | June 2020 |
Navigator Taurus...................................................... | 2009 | 20,750 | Spot market | LPG | — |
Navigator Virgo......................................................... | 2009 | 20,750 | Spot market | LPG | — |
Navigator Leo........................................................... | 2011 | 20,600 | Time charter | LPG | December 2023 |
Navigator Libra......................................................... | 2012 | 20,600 | Time charter | LPG | December 2023 |
Navigator Centauri................................................... | 2015 | 21,000 | Spot market | Butadiene | — |
Navigator Ceres........................................................ | 2015 | 21,000 | Spot market | Butadiene | — |
Navigator Ceto.......................................................... | 2016 | 21,000 | Spot market | Butadiene | — |
Navigator Copernico................................................ | 2016 | 21,000 | Spot market | Butadiene | — |
Navigator Luga......................................................... | 2017 | 22,000 | Time charter | LPG | February 2022 |
Navigator Yauza...................................................... | 2017 | 22,000 | Time charter | LPG | April 2022 |
Fully-refrigerated | |||||
Navigator Glory........................................................ | 2010 | 22,500 | Time charter | Ammonia | June 2021 |
Navigator Grace........................................................ | 2010 | 22,500 | Time charter | LPG | June 2020 |
Navigator Galaxy..................................................... | 2011 | 22,500 | Spot market | — | — |
Navigator Genesis..................................................... | 2011 | 22,500 | Time charter | LPG | June 2020 |
Navigator Global...................................................... | 2011 | 22,500 | Time charter | LPG | November 2020 |
Navigator Gusto........................................................ | 2011 | 22,500 | Time charter | LPG | December 2020 |
Navigator Jorf........................................................... | 2017 | 38,000 | Time charter | Ammonia | August 2027 |
Conference Call Details:
Tomorrow, Friday, May 29 , 2020, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the preliminary financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928 592 (Standard International Dial In). Please quote "Navigator" to the operator. There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A telephonic replay of the conference call will be available until June 5, 2020, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009 785 (Standard International Dial In). Access Code: 11870348#
About Us
Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet. The Company also 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
Attention: Investor Relations Department - investorrelations@navigatorgas.com
New York: 650 Madison Ave, New York, NY 10022. Tel: +1 212 355 5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
Navigator Holdings Ltd.
Unaudited Condensed Consolidated Balance Sheets
(Unaudited)
December 31, 2019 | March 31, 2020 | |
(in thousands, except share data) | ||
Assets | ||
Current assets | ||
Cash and cash equivalents..................................................................................................................... | $ 64,820 | $ 51,027 |
Restricted cash.......................................................................................................................................... | 1,310 | 15,200 |
Accounts receivable, net......................................................................................................................... | 23,462 | 24,366 |
Accrued income........................................................................................................................................ | 6,280 | 3,020 |
Prepaid expenses and other current assets........................................................................................... | 17,670 | 19,514 |
Bunkers and lubricant oils...................................................................................................................... | 9,645 | 10,705 |
Insurance receivable | 2,939 | 3,228 |
Total current assets.................................................................................................................................. | 126,126 | 127,060 |
Non-current assets | ||
Vessels in operation, net.......................................................................................................................... | 1,609,527 | 1,592,100 |
Property, plant and equipment, net....................................................................................................... | 1,159 | 991 |
Investment in equity accounted joint venture.................................................................................... | 130,660 | 127,619 |
Right-of-use asset for operating leases................................................................................................. | 6,781 | 6,517 |
Total non-current assets.......................................................................................................................... | 1,748,127 | 1,727,227 |
Total assets............................................................................................................................................... | $ 1,874,253 | $ 1,854,287 |
Liabilities and stockholders' equity | ||
Current liabilities | ||
Current portion of secured term loan facilities, net of deferred financing costs........................... | $ 64,703 | $ 64,775 |
Senior unsecured bond, net of deferred financing costs.................................................................... | - | 98,953 |
Current portion of operating lease liabilities........................................................................................ | 1,178 | 1,145 |
Accounts payable..................................................................................................................................... | 10,472 | 12,276 |
Accrued expenses and other liabilities.................................................................................................. | 14,124 | 16,531 |
Accrued interest........................................................................................................................................ | 4,424 | 2,367 |
Deferred income....................................................................................................................................... | 14,154 | 15,170 |
Amounts due to related parties.............................................................................................................. | 451 | 446 |
Total current liabilities............................................................................................................................. | 109,506 | 211,663 |
Non-current liabilities | ||
Secured term loan facilities and revolving credit facilities, net of current portion and deferred financing costs..................................................................................................................................... | 578,676 | 562,443 |
Senior secured bond, net of deferred financing costs........................................................................ | 67,503 | 56,142 |
Senior unsecured bond, net of deferred financing costs.................................................................... | 98,513 | - |
Derivative liabilities.................................................................................................................................. | 5,769 | 19,730 |
Operating lease liabilities, net of current portion................................................................................. | 6,329 | 5,683 |
Amounts due to related parties.............................................................................................................. | 68,055 | 66,698 |
Total non-current liabilities..................................................................................................................... | 824,845 | 710,696 |
Total liabilities........................................................................................................................................ | 934,351 | 922,359 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock—$.01 par value per share; 400,000,000 shares authorized; 55,907,438 shares issued and outstanding, (December 31, 2019: 55,826,644)........................................... | 558 | 559 |
Additional paid-in capital....................................................................................................................... | 592,010 | 592,361 |
Accumulated other comprehensive loss............................................................................................... | (331 ) | (411) |
Retained earnings..................................................................................................................................... | 347,566 | 338,898 |
Total Navigator Holdings Ltd. stockholders' equity.......................................................................... | 939,803 | 931,407 |
Non-controlling interest........................................................................................................................... | 99 | 521 |
Total equity............................................................................................................................................... | 939,902 | 931,928 |
Total liabilities and stockholders' equity.......................................................................................... | $ 1,874,253 | $ 1,854,287 |
Navigator Holdings Ltd.
Unaudited Condensed Consolidated Statements of Income
(Unaudited)
Three months ended March 31, (in thousands except share data) | ||||
2019 | 2020 | |||
Revenues | ||||
Operating revenue........................................................................................................................................................................................................... | $ 76,103 | $ 81,257 | ||
Expenses | ||||
Brokerage commissions................................................................................................................................................................................................. | 1,309 | 1,255 | ||
Voyage expenses............................................................................................................................................................................................................ | 13,357 | 17,544 | ||
Vessel operating expenses............................................................................................................................................................................................. | 29,474 | 27,406 | ||
Depreciation and amortization.................................................................................................................................................................................... | 18,947 | 19,210 | ||
General and administrative costs................................................................................................................................................................................. | 4,803 | 6,031 | ||
Total operating expenses............................................................................................................................................................................................. | 67,890 | 71,446 | ||
Operating income.......................................................................................................................................................................................................... | 8,213 | 9,811 | ||
Other income/(expense) | ||||
Foreign currency exchange (loss) / gain on senior secured bonds............................ | (184 ) | 11,417 | ||
Unrealized gain / (loss) on non-designated derivative instruments......................... | 783 | (13,961 ) | ||
Interest expense.............................................................................................................................................................................................................. | (12,153 ) | (12,372 ) | ||
Interest income................................................................................................................................................................................................................ | 215 | 219 | ||
Loss before income taxes and share of result of equity accounted joint venture.......................................................................................... | (3,126 ) | (4,886 ) | ||
Income taxes................................................................................................................................................................................................................... | (93) | (168 ) | ||
Share of result of equity accounted joint venture.................................................................................................................................................... | (38) | (3,041 ) | ||
Net loss..................................................................................................................................... | (3,257) | (8,095) | ||
Net income attributable to non-controlling interest......................................................... | — | (422) | ||
Net loss attributable to stockholders of Navigator Holdings Ltd...................................................................................................................... | $ (3,257 ) | (8,517 ) | ||
Earnings/loss per share: | ||||
Basic and diluted:........................................................................................................................................................................................................... | $ (0.06) | $ (0.14 ) | ||
Weighted average number of shares outstanding: | ||||
Basic and diluted:........................................................................................................................................................................................................... | 55,680,889 | 55,838,186 | ||
Navigator Holdings Ltd.
Unaudited Condensed Consolidated Statements of Stockholders' Equity
(Unaudited)
(in thousands, except share data)
For the three months ended March 31, 2019:
(In thousands, except share data) | ||||||
Common stock | ||||||
Number of | Amount 0.01 | Additional | Accumulated | Retained | Total | |
December 31, 2018 | 55,657,631 | $ 557 | $ 590,508 | $ (363 ) | $ 364,408 | $ 955,110 |
Adjustment to equity for the adoption of the new | — | — | — | — | (136 ) | (136 ) |
Restricted shares issued March 20, 2019 | 174,438 | 1 | — | — | — | 1 |
Net income | — | — | — | — | (3,257 ) | (3,257 ) |
Foreign currency translation | — | — | — | (48 ) | — | (48 ) |
Share-based compensation plan | — | — | 345 | — | — | 345 |
March 31, 2019 | 55,832,069 | $ 558 | $ 590,853 | $ (411 ) | $ 361,015 | $ 952,015 |
For the three months ended March 31, 2020:
Common stock | |||||||||||||||
Number of | Amount 0.01 | Additional | Accumulated | Retained | Non-controlling interest | Total | |||||||||
December 31, 2019............................ | 55,826,644 | $ 558 | $ 592,010 | $ (331) | $ 347,566 | $ 99 | $ 939,902 | ||||||||
Adjustment to equity for the adoption | — | — | — | — | (151) | — | (151) | ||||||||
Restricted shares issued March 19, 2020................................................. | 80,794 | 1 | — | — | — | — | 1 | ||||||||
Net income........................................... | — | — | — | — | (8,517) | 422 | (8,095) | ||||||||
Foreign currency translation............. | — | — | — | (80) | — | — | (80) | ||||||||
Share-based compensation plan...... | — | — | 351 | — | — | — | 351 | ||||||||
March 31, 2020.................................. | 55,907,438 | $ 559 | $ 592,361 | $ (411) | $ 338,898 | $ 521 | $ 931,928 | ||||||||
Navigator Holdings Ltd.
Unaudited Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three months ended
| Three months ended
| |
Cash flows from operating activities | ||
Net loss......................................................................................................................................... | $ (3,257) | $ (8,095) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Unrealized (gain) / loss on non-designated derivative instruments................................... | (783 ) | 13,961 |
Depreciation and amortization............................................................................................... | 18,947 | 19,210 |
Payment of drydocking costs.................................................................................................. | (1,675 ) | (1,380) |
Amortization of share-based compensation........................................................................ | 346 | 352 |
Amortization of deferred financing costs.............................................................................. | 604 | 1,073 |
Share of result of equity accounted affiliates...................................................................... | 38 | 3,041 |
Insurance claim debtor............................................................................................................. | (407) | |
Unrealized foreign exchange loss / (gain) on senior secured bonds.................................. | 184 | (11,417) |
Other unrealized foreign exchange gain/(loss)...................................................................... | 34 | (432) |
Changes in operating assets and liabilities | ||
Accounts receivable.................................................................................................................. | (6,585 ) | (904) |
Bunkers and lubricant oils........................................................................................................ | (2,706 ) | (1,060) |
Prepaid expenses and other current assets............................................................................ | (1,738 ) | 1,416 |
Accounts payable, accrued interest and accrued expenses and other liabilities............ | (626 ) | 3,589 |
Net cash provided by operating activities.......................................................................... | 2,783 | 18,947 |
Cash flows from investing activities | ||
Payment to acquire vessels...................................................................................................... | (233 ) | (294) |
Investment in equity accounted joint venture..................................................................... | (32,385 ) | — |
Purchase of other property, plant and equipment............................................................... | (68 ) | (15) |
Insurance recoveries.................................................................................................................. | — | 118 |
Net cash used in investing activities..................................................................................... | (32,686) | (191) |
Cash flows from financing activities | ||
Proceeds from secured term loan facilities and revolving credit facilities....................... | 107,000 | — |
Issuance cost of refinancing of vessel................................................................................... | — | (19) |
Direct financing cost of secured term loan and revolving credit facilities....................... | (1,442 ) | — |
Direct financing cost of terminal credit facility.................................................................... | — | (7) |
Repayment of secured term loan facilities and revolving credit facilities....................... | (93,275 ) | (16,633) |
Repayment of refinancing of vessel to related parties....................................................... | — | (2,000) |
Net cash provided by/(used in) financing activities......................................................... | 12,283 | (18,659) |
Net (decrease)/increase in cash, cash equivalents and restricted cash........................ | (17,620) | 97 |
Cash, cash equivalents and restricted cash at beginning of period.............................. | 71,515 | 66,130 |
Cash, cash equivalents and restricted cash at end of period.......................................... | $ 53,895 | $ 66,227 |
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," "foresee," "believe," "estimate," "predict," "propose," "potential," "continue," 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:
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.
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-first-quarter-2020-results-301067347.html
SOURCE Navigator Gas
LONDON, May 26, 2020 /PRNewswire/ -- Navigator Holdings Ltd. ("Navigator") (NYSE: NVGS), the owner and operator of the world's largest fleet of handysize liquefied gas carriers, announced today that it will release its results for the three months ended March 31, 2020 after market closes in New York on Thursday, May 28, 2020.
On Friday, May 29, 2020 at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Conference Call Details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238- 0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote "Navigator" to the operator.
A telephonic replay of the conference call will be available until Friday, June 5, 2020, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009785 (Standard International Dial In). Access Code: 11870348#
Audio Webcast:
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
About Us
Navigator Holdings Ltd. 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. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. The Company also own 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
Attention: Investor Relations investorrelations@navigatorgas.com
New York: 650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1 212 355 5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-announces-date-for-the-release-of-first-quarter-2020-results-and-conference-call-301065374.html
SOURCE Navigator Gas
LONDON, April 2, 2020 /PRNewswire/ --
Highlights
The Company's financial information for the year ended December 31, 2019 included in this press release is preliminary and unaudited, and is subject to change in connection with the completion of the audit currently underway by the Company's independent registered public accounting firm or as a result of other developments that may arise between now and the disclosure of the final results.
Recent Developments – COVID-19
The recent outbreak of COVID-19 novel coronavirus ("COVID-19") has negatively affected economic conditions in many areas around the world, and may restrict the seaborne transportation of products, including LPG and petrochemical products, which could impact our operations and the operations of our customers and suppliers. The impact of COVID-19 on global economic conditions and the operations of businesses throughout the world is evolving rapidly and its ultimate severity and future effects are uncertain. Any restriction on the ability to transport LPG and petrochemicals to countries or continents could adversely affect our business, financial condition and operating results. At this time, the health and safety of the Company's employees and crew is paramount as we continue our vital role in the supply of liquefied gases worldwide while meeting the needs of our customers, suppliers and other partners.
Commercial Effects of COVID-19
The Company transports petrochemicals globally, including to China, which are used principally as a raw material for the manufacturing industries. Our vessels sail throughout the world and the Company is not overly dependent on any one country or continent for its business. The Company's vessels are versatile and are capable of transporting any of three product types: petrochemicals, LPG and ammonia. However, the global nature of the COVID-19 pandemic has reduced manufacturing capacity and the demand for the consumption of the finished products.
The Company has not experienced any significant decrease in charter rates thus far as a result of the COVID-19 pandemic, but its vessel utilization has reduced from 96.3% achieved in December 2019, 97.3% in January 2020, to mid 80% levels seen in mid-2019. The COVID-19 pandemic has increased uncertainty in most markets and caused unprecedented price volatility of the underlying commodities we transport. In addition, our customers are being more cautious with inventory management and consumption. These factors are having a knock-on effect on the frequency and number of cargo quotes, and thus impacting the utilization of the Company's vessels. The more cautious approach taken by many of our customers is currently persisting, as customers try to gauge when the global economy will recover from the COVID-19 pandemic. While certain positive signs are coming from China with respect to workers returning to manufacturing sites and travel-bans being eased, significant uncertainty remains as to the speed of economic recovery in areas affected by the COVID-19 pandemic.
The Company provides seaborne transportation and distribution services to oil majors, chemical companies and energy trading companies. We expect that these established companies will continue to have the ability to pay the Company for our vessels under charter to them, at least over the next 6 – 12 months. In addition, for time charters, charter hire is payable in advance and for voyage charter, hire is payable on discharge of cargo at the discharge ports. We have not thus far received any requests for cancellation of charters or reduction in committed charter rates.
Effects of COVID-19 on Operations
The Company's management decided on March 18, 2020 to temporarily close all its representative offices and for all employees to work remotely from home for the foreseeable future, in accordance with authoritative advice, including from the government of the United Kingdom. The Company's operations continue to be fully functional remotely.
The operation of the Company's vessels also continues without any current major disruptions, with all ports to which the Company's vessels call operating at relatively similar levels to those prior to the pandemic, albeit with additional procedures being introduced to try to ensure the safety of the crew.
However, COVID-19 has raised a number of operational challenges for seaborne vessels, including our vessels. Due to the geographic lock-downs and flight restrictions in countries around the world and the resulting difficulties in the crew of our vessels signing-on and signing-off duty onboard, the Company and its two third-party technical managers have temporarily suspended all crew changes, until it is safe and feasible to do so. In the meantime, the Company has increased the internet access and capacity on board all its vessels to enable enhanced communications between the crew and their respective families.
Drydocking vessels has also become more difficult, as manufacturers' service engineers and our technical superintendents are unable to travel to the dockyards, relying instead on local personnel nearby those dockyards that remain operational. As a result, dockyards that remain open have become busier. However, flag states and classification societies have been providing some relief with 2-3 months postponements of mandatory drydockings. The Company had two vessels booked for drydocking earlier in the year in China, but these had to be cancelled and these drydock bookings were made elsewhere. In total the Company is scheduled to drydock ten vessels during 2020. Although there is little cost effect of these changes currently, if additional dockyards are forced to close, or other dockyard disruptions occur, global drydock capacity may become limited, with a resultant increase in costs that may be significant.
Due to the difficulty in arranging surveyors to carry out Ship Inspection Report Programme (SIRE) and Chemical Distribution Institute (CDI) inspections, the Oil Companies International Marine Forum (OCIMF), as well as our charterers, are currently considering taking a more pragmatic approach when it comes to providing vetting approvals for our vessels. We do not expect, therefore, that in the short to medium term our vessels will become less competitive due to lack of fresh inspections being carried out.
The recent significant reduction in oil prices has resulted in a reduction, by 50% or more, in the cost of vessel bunker fuel over the past three months. The new IMO 2020 compliant heavy fuel oil with a sulphur content of below 0.5% is currently costing approximately $270 per ton, whereas it cost as much as $600 per ton at the beginning of 2020. The differential between this low sulphur fuel oil and the previous heavy fuel oil, still used by those vessels with scrubbers, has decreased to as low as $70 per ton.
Financial Effects of COVID-19
The financial information contained within this document relates to the three and twelve months ended December 31, 2019, and as such the operating results do not cover any period following the outbreak of COVID-19. The first instance of COVID-19 was reported to the World Health Organization by China on December 31, 2019, and it became more widely known throughout the world approximately a week later. The effects on the commercial activities of the Company are referred to above. However, future revenues, profitability, liquidity, cash flows and financial position may be further affected by COVID-19.
The Company has no debt facilities maturing during 2020 and has only one debt instrument maturing in 2021, a $100.0 million bond with Nordic Trustee AS, as bond trustee, that matures in February 2021. The Company had considered refinancing this bond with a like-for-like bond prior to the virus outbreak, but due to the current disruption in the capital markets, the Company is considering alternatives in the event the effects of COVID-19 last longer than the anticipated timescale of up to six months. Such considerations include seeking an extension to the maturity of the bond, seeking to raise the capital by a sale and leaseback of a number of the Company's vessels or raising alternative debt from unsecured vessels.
In addition, the Company has a number of financial covenants on all its debt facilities, which principally comprise liquidity maintenance, EBITDA to interest ratios, debt to equity ratios and security value maintenance. The Company was in compliance with all financial covenants on all its debt facilities as at December 31, 2019. The Company currently provides cash collateral as security against unrealized losses on its cross-currency interest rate swap and in the event the Norwegian Kroner weakens further against the U.S. dollar further cash security will need to be placed into a collateral account, thus providing less headroom on our liquidity maintenance covenant. In addition, if commercial operations do not continue as expected or the COVID-19 pandemic lasts longer than anticipated, liquidity maintenance and EBITDA to interest ratios may come under strain with the result that the Company may need to seek relief from the covenants from the banks and bondholders.
The main assets of the Company consist of the 38 vessels it operates, as well as its interest in the 50/50 joint venture related to the Marine Export Terminal (the "Export Terminal Joint Venture"). Although the secondhand shipping market is particularly illiquid in all sectors at this time as a result of COVID-19, the Company does not believe it will affect the value of its vessels once the pandemic abates, as there is an average remaining life of 21.2 years per vessel across the fleet. The Marine Export Terminal is currently contracted to approximately 75% of its nameplate capacity on a take or pay basis and the Company does not foresee any disruption to this operation that would result in an impairment in the value of its investment.
Fourth Quarter 2019 Financial Results Overview
The following table compares our operating results for the three months ended December 30, 2018 and 2019:
Three Months Ended | Three Months Ended | Percentage | |
(in thousands, except percentages) | |||
Operating revenue | $ 78,233 | $ 76,072 | (2.8 %) |
Operating expenses: | |||
Brokerage Commissions | 1,349 | 1,179 | (12.6 %) |
Voyage expenses | 15,476 | 12,129 | (21.6 %) |
Vessel operating expenses | 27,095 | 27,733 | 2.4 % |
Depreciation and amortization | 18,884 | 19,303 | 2.2 % |
General and administrative costs | 4,805 | 6,250 | 30.1 % |
Total operating expenses | 67,609 | 66,594 | (1.5 %) |
Operating income | 10,624 | 9,478 | (10.8 %) |
Foreign currency exchange gain /(loss) on senior secured bonds | 2,360 | (2,250) | n/a |
Unrealized (loss) / gain on non-designated derivative instruments | (5,154) | 2,937 | n/a |
Interest expense | (12,017) | (12,246) | 1.9 % |
Interest income | 293 | 303 | 3.4 % |
Loss before income taxes and share of result of equity | (3,894) | (1,778) | 54.3 % |
Income taxes | 33 | (47) | n/a |
Share of result of equity accounted joint venture | (38) | (879) | n/a |
Net loss | (3,899) | (2,704) | 30.6 % |
Net income attributable to non-controlling interest | — | (99) | — |
Net loss attributable to stockholders of Navigator Holdings Ltd | $ (3,899) | $ (2,803) | 28.1 % |
Operating Revenue. Operating revenue net of address commission, decreased by $2.2 million or 2.8% to $76.1 million for three months ended December 31, 2019, from $78.2 million for the three months ended December 31, 2018. This decrease was primarily due to:
The following table presents selected operating data for the three months ended December 31, 2018 and 2019, which we believe are useful in understanding the basis for movements in operating revenue:
Three Months Ended | Three Months Ended | |
Fleet Data: | ||
Weighted average number of vessels | 38.0 | 38.0 |
Ownership days | 3,496 | 3,496 |
Available days | 3,476 | 3,416 |
Operating days | 3,000 | 3,165 |
Fleet utilization | 86.3 % | 92.7 % |
Average daily time charter equivalent rate (*) | $ 20,920 | $ 20,204 |
* Non-GAAP Financial Measure -Time charter equivalent: Time charter equivalent ("TCE"), 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, less any voyage expenses, by the number of operating days for the relevant period. 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 company's 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 Revenue to TCE rate
The following table represents a reconciliation of operating revenue to TCE rate. Operating revenue is the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
Three Months Ended | Three Months Ended | |
Fleet Data: | ||
Operating revenue | 78,233 | 76,072 |
Voyage expenses | 15,476 | 12,129 |
Operating revenue less Voyage expenses | 62,757 | 63,943 |
Operating days | 3,000 | 3,165 |
Average daily time charter equivalent rate | $ 20,920 | $ 20,204 |
Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.0% of revenue, decreased by 12.6% to $1.2 million for the three months ended December 31, 2019, from $1.3 million for the three months ended December 31, 2018 due to a decrease in operating revenue on which brokerage commissions are based and an overall reduction in the brokerage commissions charged.
Voyage Expenses. Voyage expenses decreased by 21.6% to $12.1 million for three months ended December 31, 2019, from $15.5 million for the three months ended December 31, 2018. This was primarily due to a decrease in the number and duration of voyage charters undertaken during the three months ended December 31, 2019, compared to the three months ended December 31, 2018, with these decreased voyage costs being pass through costs, corresponding to a decrease in operating revenue of the same amount.
Vessel Operating Expenses. Vessel operating expenses increased by 2.4% to $27.7 million for the year three months December 31, 2019, from $27.1 million for the three months ended December 31, 2018. Average daily vessel operating expenses increased by $183 per vessel per day, or 2.4%, to $7,933 per vessel per day for the three months ended December 31, 2019, compared to $7,750 per vessel per day for the three months ended December 31, 2018.
Depreciation and Amortization. Depreciation and amortization expense increased by 2.2% to $19.3 million for the three months ended December 31, 2019, from $18.9 million for the three months ended December 31, 2018. Depreciation and amortization expense included amortization of capitalized drydocking costs of $2.2 million and $1.8 million for the three months ended December 31, 2019 and 2018 respectively.
General and Administrative Costs. General and administrative costs increased by $1.4 million or 30.1% to $6.3 million for the three months ended December 31, 2019, from $4.8 million for the three months ended December 31, 2018. The increase in general and administrative costs was primarily due to an increase in the number of employees during the three months ended December 31, 2019, compared to the three months ended December 31, 2018, to enable us to provide in-house technical management for an increasing number of our vessels; legal and professional fees and a provision for doubtful debts against outstanding accounts receivable.
Non-operating Results
Foreign currency exchange gain on senior secured bonds. Exchange gains and losses relate to non-cash movements on our 2018 Bonds which are denominated in Norwegian Kroner and translated to U.S. Dollar at the prevailing exchange rate as of December 31, 2019. The foreign currency exchange loss of $2.3 million for the three months ended December 31, 2019 was as a result of the Norwegian Kroner continuing to weaken against the U.S. dollar.
Unrealized loss on non-designated derivative instruments. The unrealized gain on non-designated derivative instruments of $2.9 million relates to the fair value movement in our cross-currency interest rate swap for the three months ended December 31, 2019. The unrealized loss on this swap for the period from inception on November 2, 2018 to December 31, 2018 was $5.2 million.
Interest Expense. Interest expense increased by $0.2 million, or 1.9%, to $12.2 million for the three months ended December 31, 2019, from $12.0 million for the three months ended December 31, 2018.
Income Taxes. Income tax relates to taxes on our subsidiaries incorporated in the United Kingdom, Poland and Singapore and our consolidated variable interest entity ("VIE"), incorporated in Malta. For the three months ended December 31, 2019, we accrued taxes of $47,000 compared to a release of accrued taxes of $33,000 for the three months ended December 31, 2018.
Share of result of equity accounted joint venture. The share of result of the Company's 50% ownership in the Export Terminal Joint Venture was an expense of $0.9 million for the three months ended December 31, 2019, principally relating to start-up costs, as the terminal undertook its first loading in December 2019.
Non-Controlling Interest. We have entered into various sale and leaseback arrangements with a wholly-owned special purpose vehicle ("lessor SPV") of a financial institution. While 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. Thus, the income attributable to the financial institution is presented as the non-controlling interest in our financial results.
Results of Operations for the Year Ended December 31, 2018 Compared to Year Ended December 31, 2019
The following table compares our operating results for the years ended December 31, 2018 and 2019:
Year Ended | Year Ended | Percentage | |
(in thousands, except percentages) | |||
Operating revenue | $ 310,046 | $ 301,385 | (2.8 %) |
Operating expenses: | |||
Brokerage commissions | 5,142 | 4,938 | (4.0 %) |
Voyage expenses | 61,634 | 55,310 | (10.3 %) |
Vessel operating expenses | 106,719 | 111,475 | 4.5 % |
Depreciation and amortization | 76,140 | 76,173 | 0.0 % |
General and administrative costs | 18,931 | 20,878 | 10.3 % |
Total operating expenses | $ 268,566 | $ 268,774 | 0.1 % |
Operating income | $ 41,480 | $ 32,611 | (21.4 %) |
Foreign currency exchange gain on senior secured bonds | 2,360 | 969 | (58.9 %) |
Unrealized loss on non-designated derivative instruments | (5,154 ) | (615 ) | (88.1 %) |
Interest expense | (44,908 ) | (49,014 ) | 9.1 % |
Interest income | 854 | 920 | 7.7 % |
Loss before income taxes and share of result of equity | $ (5,368 ) | $ (15,129 ) | (181.8 %) |
Income taxes | (333 ) | (352 ) | (5.7 %) |
Share of result of equity accounted joint venture | (38 ) | (1,126 ) | (2,863.2 %) |
Net loss | $ (5,739 ) | $ (16,607 ) | (189.4 %) |
Net income attributable to non-controlling interest | — | (99) | — |
Net loss attributable to stockholders of Navigator Holdings Ltd | $ (5,739 ) | $ (16,706 ) | (191.1 %) |
Operating Revenue. Operating revenue net of address commission, decreased by $8.7 million or 2.8% to $301.4 million for the year ended December 31, 2019, from $310.0 million for the year ended December 31, 2018. This decrease was primarily due to:
The following table presents selected operating data for the years ended December 31, 2018 and 2019, which we believe are useful in understanding the basis for movements in operating revenue:
Year Ended | Year Ended | |
Fleet Data: | ||
Weighted average number of vessels | 38.0 | 38.0 |
Ownership days | 13,870 | 13,870 |
Available days | 13,767 | 13,608 |
Operating days | 12,247 | 11,813 |
Fleet utilization | 89.0 % | 86.8 % |
Average daily time charter equivalent rate | $ 20,284 | $ 20,831 |
Reconciliation of Operating Revenue to TCE rate
The following table represents a reconciliation of operating revenue to TCE rate. Operating revenue is the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
Year Ended | Year Ended | |
Fleet Data: | ||
Operating revenue | 310,046 | 301,385 |
Voyage expenses | 61,634 | 55,310 |
Operating revenue less Voyage expenses | 248,412 | 246,075 |
Operating days | 12,247 | 11,813 |
Average daily time charter equivalent rate | $ 20,284 | $ 20,831 |
Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.0% of revenue, decreased by 4.0% to $4.9 million for the year ended December 31, 2019, from $5.1 million for the year ended December 31, 2018. This was primarily due to a decrease in operating revenue on which brokerage commissions are based and a change in the mix of charters between time and voyage charters. Generally, time charters command a lower brokerage commission percentage than voyage charters.
Voyage Expenses. Voyage expenses decreased by 10.3% to $55.3 million for year ended December 31, 2019, from $61.6 million for the year ended December 31, 2018. This was primarily due to a decrease in the number and duration of voyage charters undertaken during the year ended December 31, 2019, compared to the year ended December 31, 2018, with these decreased voyage costs being pass through costs, corresponding to a decrease in operating revenue of the same amount.
Vessel Operating Expenses. Vessel operating expenses increased by 4.5% to $111.5 million for the year ended December 31, 2019, from $106.7 million for the year ended December 31, 2018. Average daily vessel operating expenses increased by $343 per vessel per day, or 4.5%, to $8,037 per vessel per day for the year ended December 31, 2019, compared to $7,694 per vessel per day for the year ended December 31, 2018.
Depreciation and Amortization. Depreciation and amortization expense increased by 0.1% to $76.2 million for the year ended December 31, 2019, from $76.1 million for the year ended December 31, 2018. Depreciation and amortization expense included amortization of capitalized drydocking costs of $7.9 million for the years ended December 31, 2019 and 2018.
General and Administrative Costs. General and administrative costs increased by $1.9 million or 10.3% to $20.9 million for the year ended December 31, 2019, from $18.9 million for the year ended December 31, 2018. The increase in general and administrative costs was primarily due to an increase in the number of employees during the year ended December 31, 2019, compared to the year ended December 31, 2018, to enable us to provide in-house technical management for an increasing number of our vessels; professional fees in relation to the recruitment of senior executives; and a provision for doubtful debts against outstanding revenue from our time charters with PDVSA.
Non-operating Results
Foreign currency exchange gain on senior secured bonds. Exchange gains and losses relate to non-cash movements on our 2018 Bonds which are denominated in Norwegian Kroner and translated to U.S. Dollar at the prevailing exchange rate as of December 31, 2019. The foreign currency exchange gain on translation decreased by 58.9% to $1.0 million for the year ended December 31, 2019, from $2.4 million for the year ended December 31, 2018, as the Norwegian Kroner continued to weaken, but at a reduced level.
Unrealized loss on non-designated derivative instruments. The unrealized loss on non-designated derivative instruments of $0.6 million relates to the fair value movement in our cross-currency interest rate swap for the year ended December 31, 2019. The unrealized loss on this swap for the period from inception on November 2, 2018 to December 31, 2018 was $5.2 million.
Interest Expense. Interest expense increased by $4.1 million, or 9.1%, to $49.0 million for the year ended December 31, 2019, from $44.9 million for the year ended December 31, 2018. The increase was primarily due to a full 12 months interest on our 2018 Bonds for the year ended December 31, 2019, compared to two months interest for the year ended December 31, 2018, offset by a decrease in interest costs as a result of reductions in U.S. LIBOR. Interest expense is shown net of interest capitalized. Interest capitalized for the year ended December 31, 2019 of $4.5 million compared to $1.0 million for the year ended December 31, 2018, relates to interest on capital contributions paid to the Export Terminal Joint Venture.
Income Taxes. Income tax relates to taxes on our subsidiaries incorporated in the United Kingdom, Poland and Singapore and our consolidated VIE, incorporated in Malta. Two of our United Kingdom subsidiaries earn management and other fees from affiliates, and our Singaporean subsidiary earns interest from loans to our variable interest entity in Indonesia. The main corporate tax rates are 19%, 19%, 17% and 35% in the United Kingdom, Poland and Singapore and Malta, respectively. For the year ended December 31, 2019, we incurred taxes of $351,518 compared to taxes for the year ended December 31, 2018 of $332,890.
Share of result of equity accounted joint venture. The share of result of the Company's 50% ownership in the Export Terminal Joint Venture was an expense of $1.1 million for the year ended December 31, 2019, principally relating to commissioning costs, compared to $0.04 million for the year ended December 31, 2018.
Non-Controlling Interest. We have entered into various sale and leaseback arrangements with a wholly-owned special purpose vehicle ("lessor SPV") of a financial institution. While 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 variable interest entity ("VIE") into our financial results. Thus, the income attributable to the financial institution is presented as the non-controlling interest in our financial results.
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 and years ended December 31, 2018 and 2019:
(in thousands) |
(in thousands) | |||||||
Three months ended |
Year ended | |||||||
December 31, | December 31, | December 31, | December 31, | |||||
Net income / (loss) | $ (3,899) | $ (2,803) | $ (5,739) | $ (16,607 ) | ||||
Net interest expense | 11,724 | 11,943 | 44,054 | 48,094 | ||||
Income taxes | (33) | 47 | 333 | 352 | ||||
Depreciation and amortization | 18,884 | 19,303 | 76,140 | 76,173 | ||||
EBITDA(1) | $ 26,676 | $ 28,490 | $ 114,788 | $ 108,012 | ||||
Foreign currency exchange gain on senior | (2,360) | 2,250 | (2,360) | (969 ) | ||||
Unrealized loss on non-designated derivative instruments | 5,154 | (2,937) | 5,154 | 615 | ||||
Adjusted EBITDA(1) | $ 29,470 | $ 27,803 | $ 117,582 | $ 107,658 | ||||
1 EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA represents net income before net interest expense, income taxes and depreciation and amortization. Adjusted EBITDA represents net income before net interest expense, income taxes, depreciation and amortization and non-cash movements of our cross-currency interest rate swap and foreign exchange translation . 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 as an alternative to any financial 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. See the table above for a reconciliation of EBITDA and Adjusted EBITDA to net income/(loss), our most directly comparable financial measure calculated accordance with U.S. GAAP.
Our Fleet
The following table sets forth our vessels as of April 2, 2020:
Operating Vessel
| Year | Vessel Size | Employment | Charter |
Ethylene/ethane capable semi-refrigerated | ||||
Navigator Orion (formerly known as Navigator Mars) | 2000 | 22,085 | Spot market | — |
Navigator Neptune | 2000 | 22,085 | Time charter | October 2020 |
Navigator Pluto | 2000 | 22,085 | Time charter | April 2020 |
Navigator Saturn | 2000 | 22,085 | Spot market | — |
Navigator Venus | 2000 | 22,085 | Time charter | November 2020 |
Navigator Atlas | 2014 | 21,000 | Spot market | — |
Navigator Europa | 2014 | 21,000 | Contract of affreightment | May 2020 |
Navigator Oberon | 2014 | 21,000 | Contract of affreightment | April 2020 |
Navigator Triton | 2015 | 21,000 | Spot market | — |
Navigator Umbrio | 2015 | 21,000 | Spot market | — |
Navigator Aurora | 2016 | 37,300 | Time charter | December 2026 |
Navigator Eclipse | 2016 | 37,300 | Spot market | — |
Navigator Nova | 2017 | 37,300 | Time charter | June 2020 |
Navigator Prominence | 2017 | 37,300 | Time charter | October 2020 |
Semi-refrigerated | ||||
Navigator Magellan | 1998 | 20,700 | Time charter | April 2020 |
Navigator Aries | 2008 | 20,750 | Time charter | April 2020 |
Navigator Capricorn | 2008 | 20,750 | Time charter | April 2020 |
Navigator Gemini | 2009 | 20,750 | Spot market | — |
Navigator Pegasus | 2009 | 22,200 | Spot market | — |
Navigator Phoenix | 2009 | 22,200 | Spot market | — |
Navigator Scorpio | 2009 | 20,750 | Spot market | — |
Navigator Taurus | 2009 | 20,750 | Spot market | — |
Navigator Virgo | 2009 | 20,750 | Spot market | — |
Navigator Leo | 2011 | 20,600 | Time charter | December 2023 |
Navigator Libra | 2012 | 20,600 | Time charter | December 2023 |
Navigator Centauri | 2015 | 21,000 | Spot market | — |
Navigator Ceres | 2015 | 21,000 | Spot market | — |
Navigator Ceto | 2016 | 21,000 | Spot market | — |
Navigator Copernico | 2016 | 21,000 | Spot market | — |
Navigator Luga | 2017 | 22,000 | Time charter | February 2022 |
Navigator Yauza | 2017 | 22,000 | Time charter | April 2022 |
Fully-refrigerated | ||||
Navigator Glory | 2010 | 22,500 | Time charter | June 2021 |
Navigator Grace | 2010 | 22,500 | Time charter | May 2020 |
Navigator Galaxy | 2011 | 22,500 | Time charter | April 2020 |
Navigator Genesis | 2011 | 22,500 | Time charter | June 2020 |
Navigator Global | 2011 | 22,500 | Time charter | November 2020 |
Navigator Gusto | 2011 | 22,500 | Time charter | November 2020 |
Navigator Jorf | 2017 | 38,000 | Time charter | August 2027 |
Conference Call Details:
On Friday, April 3, 2020, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the preliminary financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928 592 (Standard International Dial In). Please quote "Navigator" to the operator. There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A telephonic replay of the conference call will be available until April 10, 2020, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009 785 (Standard International Dial In). Access Code: 11870348#
About Us
Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet.
Navigator Holdings Ltd. | ||
Unaudited Condensed Consolidated Balance Sheets | ||
(Unaudited) | ||
December 31, 2018 | December 31, 2019 | |
(in thousands, except share data) | ||
Assets | ||
Current assets | ||
Cash and cash equivalents | $ 71,515 | $ 66,130 |
Accounts receivable, net | 17,033 | 24,462 |
Accrued income | 4,731 | 5,598 |
Prepaid expenses and other current assets | 16,043 | 17,670 |
Bunkers and lubricant oils | 8,789 | 9,645 |
Insurance Receivable | 14 | 2,939 |
Total current assets | 118,125 | 126,444 |
Non-current assets | ||
Vessels in operation, net | 1,670,865 | 1,609,527 |
Property, plant and equipment, net | 1,299 | 1,159 |
Investment in equity accounted joint venture | 42,462 | 130,660 |
Right-of-use asset for operating leases | — | 6,781 |
Total non-current assets | 1,714,626 | 1,748,127 |
Total assets | $ 1,832,751 | $ 1,874,571 |
Liabilities and stockholders' equity | ||
Current liabilities | ||
Current portion of secured term loan facilities, net of | $ 68,857 | $ 64,703 |
Current portion of operating lease liabilities | — | 1,178 |
Accounts payable | 10,784 | 10,472 |
Accrued expenses and other liabilities | 12,798 | 14,674 |
Accrued interest | 4,613 | 4,424 |
Deferred income | 8,342 | 13,922 |
Amounts due to related parties | — | 451 |
Total current liabilities | 105,394 | 109,824 |
Non-current Liabilities | ||
Secured term loan facilities and revolving credit | 599,676 | 578,676 |
Senior secured bond, net of deferred financing costs | 68,378 | 67,503 |
Senior unsecured bond, net of deferred financing costs | 99,039 | 98,513 |
Derivative liabilities | 5,154 | 5,769 |
Operating lease liabilities, net of current portion | — | 6,329 |
Amounts due to related parties | — | 68,055 |
Total non-current liabilities | 772,247 | 824,845 |
Total Liabilities | 877,641 | 934,669 |
Commitments and contingencies (see note 15) | ||
Stockholders' equity | ||
Common stock—$.01 par value per share; 400,000,000 | 557 | 558 |
Additional paid-in capital | 590,508 | 592,010 |
Accumulated other comprehensive loss | (363 ) | (331 ) |
Retained earnings | 364,408 | 347,566 |
Total stockholders' equity | 955,110 | 939,803 |
Non-controlling interest | — | 99 |
Total Equity | 955,110 | 939,902 |
Total liabilities and stockholders' equity | $ 1,832,751 | $ 1,874,571 |
Navigator Holdings Ltd. | ||||
Unaudited Condensed Consolidated Statements of Income | ||||
(Unaudited) | ||||
Three months ended December 31, (in thousands except share data) | Year ended December 31, (in thousands except share data) | |||
2018 | 2019 | 2018 | 2019 | |
Revenues | ||||
Operating revenue | $ 78,233 | $ 76,072 | $ 310,046 | $ 301,385 |
Expenses | ||||
Brokerage commissions | 1,349 | 1,179 | 5,142 | 4,938 |
Voyage expenses | 15,476 | 12,129 | 61,634 | 55,310 |
Vessel operating expenses | 27,095 | 27,733 | 106,719 | 111,475 |
Depreciation and amortization | 18,884 | 19,303 | 76,140 | 76,173 |
General and administrative costs | 4,805 | 6,250 | 18,931 | 20,878 |
Total operating expenses | 67,609 | 66,594 | 268,566 | 268,774 |
Operating income | 10,624 | 9,478 | 41,480 | 32,611 |
Other income/(expense) | ||||
Foreign currency exchange gain/(loss) on senior secured bonds | 2,360 | (2,250) | 2,360 | 969 |
Unrealized (loss)/gain on non-designated derivative instruments | (5,154) | 2,937 | (5,154) | (615 ) |
Interest expense | (12,017) | (12,246) | (44,908 ) | (49,014 ) |
Interest income | 293 | 303 | 854 | 920 |
Income/(loss) before income taxes | (3,894) | (1,778) | (5,368) | (15,129 ) |
Income taxes | 33 | (47) | (333) | (352 ) |
Share of result of equity accounted joint venture | (38) | (879) | (38) | (1,126 ) |
Net loss | (3,899) | (2,704) | (5,739) | (16,607) |
Net income attributable to non-controlling interest | — | (99) | — | (99) |
Net loss | $ (3,899) | $ (2,803) | (5,739) | (16,706 ) |
Earnings/loss per share: | ||||
Basic and diluted: | $ (0.07) | $ (0.05) | $ (0.10) | $ (0.30 ) |
Weighted average number of shares outstanding: | ||||
Basic and diluted: | 55,655,357 | 55,826,644 | 55,629,023 | 55,792,711 |
Navigator Holdings Ltd. | |||||||||||||||
Unaudited Condensed Consolidated Statements of Stockholders' Equity | |||||||||||||||
(Unaudited) | |||||||||||||||
(in thousands, except share data) | |||||||||||||||
Common stock | |||||||||||||||
Number of | Amount 0.01 | Additional | Accumulated | Retained | Non-controlling interest | Total | |||||||||
January 1, 2017 | 55,436,087 | $ 554 | $ 588,024 | $ (287) | $ 368,189 | $ — | $ 956,480 | ||||||||
Restricted shares issued March 23, | 93,675 | 1 | — | — | — | — | 1 | ||||||||
Net income | — | — | — | — | 5,310 | — | 5,310 | ||||||||
Foreign currency translation | — | — | — | 10 | — | — | 10 | ||||||||
Share-based compensation plan | — | — | 1,412 | — | — | — | 1,412 | ||||||||
December 31, 2017 | 55,529,762 | $ 555 | $ 589,436 | $ (277) | $ 373,499 | $ — | $ 963,213 | ||||||||
Adjustment to equity for the adoption of the new revenue standard | — | — | — | — | (3,352) | — | (3,352) | ||||||||
Forfeited shares - 2013 long-term equity incentive plan | (3,673) | — | — | — | — | — | — | ||||||||
Restricted shares issued March 20, 2018 | 131,542 | 2 | — | — | — | — | 2 | ||||||||
Net income | — | — | — | — | (5,739) | — | (5,739) | ||||||||
Foreign currency translation | — | — | — | (86) | — | — | (86) | ||||||||
Share-based compensation plan | — | — | 1,072 | — | — | — | 1,072 | ||||||||
December 31, 2018 | 55,657,631 | $ 557 | $ 590,508 | $ (363) | $ 364,408 | $ — | $ 955,110 | ||||||||
Adjustment to equity for the adoption of the new lease standard | — | — | — | — | (136) | — | (136 ) | ||||||||
Restricted shares issued March 20, 2019 | 174,438 | 1 | — | — | — | — | 1 | ||||||||
Restricted shares cancelled August 14, 2019 | (5,425) | — | — | — | — | — | — | ||||||||
Net income | — | — | — | — | (16,706) | 99 | (16,607 ) | ||||||||
Foreign currency translation | — | — | — | 32 | — | — | 32 | ||||||||
Share-based compensation plan | — | — | 1,502 | — | — | — | 1,502 | ||||||||
December 31, 2019 | 55,826,644 | $ 558 | $ 592,010 | $ (331) | $ 347,566 | $ 99 | $ 939,902 | ||||||||
Navigator Holdings Ltd. | ||
Unaudited Condensed Consolidated Statements of Cash Flows | ||
(Unaudited) | ||
Year ended | Year ended | |
Cash flows from operating activities | ||
Net income/(loss) | $ (5,739) | $ (16,607 ) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Unrealized loss on non-designated derivative instruments | 5,154 | 615 |
Depreciation and amortization | 76,140 | 76,173 |
Payment of drydocking costs | (5,796) | (11,523 ) |
Amortization of share-based compensation | 1,074 | 1,503 |
Amortization of deferred financing costs | 2,292 | 4,618 |
Share of result of equity accounted affiliates | 38 | 1,126 |
Insurance claim debtor | (642 ) | (5,107) |
Unrealized foreign exchange gain on senior secured bonds | (2,360 ) | (969 ) |
Other unrealized foreign exchange gain/(loss) | (12) | 239 |
Changes in operating assets and liabilities | ||
Accounts receivable | (2,144 ) | (7,429 ) |
Bunkers and lubricant oils | (781 ) | (856 ) |
Prepaid expenses and other current assets | 2,629 | 45 |
Accounts payable, accrued interest and accrued expenses and other liabilities | 7,664 | 7,872 |
Net cash provided by operating activities | 77,517 | 49,700 |
Cash flows from investing activities | ||
Payment to acquire vessels | (648) | (2,910 ) |
Investment in equity accounted joint venture | (42,500) | (89,324 ) |
Purchase of other property, plant and equipment | (182 ) | (357 ) |
Insurance recoveries | 1,003 | 2,182 |
Net cash used in investing activities | (42,327) | (90,409 ) |
Cash flows from financing activities | ||
Proceeds from secured term loan facilities and revolving credit facilities | 21,900 | 162,000 |
Proceeds from refinancing of vessel to related parties | — | 68,657 |
Issuance of senior secured bonds | 71,697 | — |
Issuance cost of senior secured bonds | (991 ) | (136 ) |
Issuance costs of unsecured bond amendment | — | (1,308 ) |
Issuance cost of refinancing of vessel | — | (156 ) |
Direct financing cost of secured term loan and revolving credit facilities | (38 ) | (1,448 ) |
Direct financing cost of terminal credit facility | — | (2,833 ) |
Repayment of secured term loan and revolving credit facilities | (118,352 ) | (189,001 ) |
Repayment of refinancing of vessel to related parties | — | (451 ) |
Net cash provided by/(used in) financing activities | (25,784) | 35,324 |
Net (decrease)/increase in cash, cash equivalents and restricted cash | 9,406 | (5,385 ) |
Cash, cash equivalents and restricted cash at beginning of year | 62,109 | 71,515 |
Cash, cash equivalents and restricted cash at end of year | $ 71,515 | $ 66,130 |
IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
This Report on Form 6-K for the quarter ended December 31, 2019 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, contain forward-looking statements. 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 report. 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," "foresee," "believe," "estimate," "predict," "propose," "potential," "continue," or the negative of these terms or other comparable terminology. Forward-looking statements appear in a number of places in this report. These risks and uncertainties include, but are not limited to:
All forward-looking statements included in this Report on Form 6-K are made only as of the date of this Report on Form 6-K. 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.
Navigator Gas
Attention: Investor Relations Department - investorrelations@navigatorgas.com
New York: 650 Madison Ave, New York, NY 10022. Tel: +1 212 355 5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-fourth-quarter-and-financial-year-2019-results-301034469.html
SOURCE Navigator Gas
LONDON, March 30, 2020 /PRNewswire/ -- Navigator Holdings Ltd. ("Navigator") (NYSE: NVGS), the owner and operator of the world's largest fleet of handysize liquefied gas carriers, announced today that it will release its results for the three months and full year ended December 31, 2019 after market closes in New York on Thursday, April 2, 2020.
On Friday, April 3, 2020 at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Conference Call Details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238- 0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote "Navigator" to the operator.
A telephonic replay of the conference call will be available until Monday, April 10, 2020, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009785 (Standard International Dial In). Access Code: 11870348#
Audio Webcast:
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
About Us
Navigator Holdings Ltd. 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. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet.
Navigator Gas
Attention: Investor Relations, investorrelations@navigatorgas.com
New York: 650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1 212 355 5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-announces-date-for-the-release-of-fourth-quarter-and-full-year-2019-results-and-conference-call-301031664.html
SOURCE Navigator Gas
LONDON, Nov. 13, 2019 /PRNewswire/ --
Highlights
Our medium size gas carriers successfully performed two 'firsts' during the third quarter of 2019. Competitive U.S. butane pricing enabled our customers to transport tons to India, adding significant ton mile to the medium size segment, which we believe was the first trade of its kind, as Middle East exports have typically catered for India's import needs. Also made possible due to competitive U.S. priced natural gas liquids ("NGLS"), one of our medium sized gas carriers transported ethane from the U.S. Gulf to China, which we believe was the first medium sized ethane cargo moving trans-pacific, also indicating longer ton mile in the segment. Our four medium sized vessels were fully utilized during the quarter, and we expect this to continue for the remainder of the year. Medium sized gas carrier 12 month time charter rates increased from approximately $540,000 per calendar month ("pcm") at the beginning of the quarter to current rates of approximately $740,000 pcm.
The handysize segment remained flat during the third quarter with 12 month time charter rates hovering around $545,000 pcm to current rates of $575,000 pcm, experiencing a time-lag for the positive effects from stronger freight markets for the larger segments above. Geopolitical tension in the Middle East resulted in the introduction of substantial war risk premiums on shipping through the Straits of Hormuz, which made spot movements of LPG and petrochemical cargoes less economical. It appears that only the Very Large Gas Carrier ("VLGC") market has been able to absorb these increased premiums on their trades.
The handysize segment is continuously expanding its footprint creating new trades that increase incremental demand. We have contracted with seven new clients during the third quarter, putting the handysize's versatility to practice in new markets in China and in Africa. One example is a new Indian coastal propylene cabotage trade, which balances the domestic market. This is the first time we have engaged one of our handysize vessels for this trade.
The belief in a stronger freight market is underpinned by newbuilding order activity in the market. Six medium-sized gas carriers and two handysize ethylene carriers were confirmed ordered during the third quarter, all with anticipated delivery time within two years.
The Marine Export Terminal is on schedule to commence operations at the end of the year, which will add incremental product supply to the market. Additional U.S. and Canadian export terminals are scheduled to be commissioned in 2020 requiring semi-refrigerated handysize vessels. A continuing healthy freight market for the medium and large gas carriers is believed to be having a positive effect on the handysize segment.
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, 2018 and 2019:
(in thousands) | ||
September 30, | September 30, | |
Net income/(loss) | $ 623 | $ (2,913) |
Interest expense | 11,014 | 12,406 |
Interest income | (202 ) | (197) |
Income taxes | 137 | 131 |
Depreciation and amortization | 18,846 | 19,009 |
EBITDA(1) | $ 30,418 | $ 28,436 |
Foreign currency exchange gain on senior secured bonds | — | (4,171) |
Unrealized loss on non-designated derivative instruments | — | 5,197 |
Adjusted EBITDA(1) | $ 30,418 | $ 29,462 |
1 EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA represents net income before net interest expense, income taxes and depreciation and amortization. We define Adjusted EBITDA as EBITDA before any foreign currency exchange gain or loss on senior secured bonds and unrealized gain or loss on non-designated derivative instruments. 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 as alternatives to any financial 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. See the table above for a reconciliation of EBITDA and Adjusted EBITDA to net income/(loss), our most directly comparable financial measure calculated accordance with U.S. GAAP.
Conference Call Details:
On Thursday, November 14, 2019, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928 592 (Standard International Dial In). Please quote "Navigator" to the operator. There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A telephonic replay of the conference call will be available until Thursday, November 21, 2019, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009 785 (Standard International Dial In). Access Code: 11870348#
Navigator Gas
Attention: Investor Relations Department
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
New York: 650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1 212 355 5893
About Us
Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet.
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:
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.
Navigator Holdings Ltd. | ||
Condensed Consolidated Balance Sheets | ||
(Unaudited) | ||
December 31, 2018 | September 30, 2019 | |
(in thousands, except share data) | ||
Assets | ||
Current assets | ||
Cash, cash equivalents and restricted cash............................................................................................ | $ 71,515 | $ 56,951 |
Accounts receivable, net.......................................................................................................................... | 17,033 | 23,632 |
Accrued income........................................................................................................................................ | 4,731 | 2,680 |
Prepaid expenses and other current assets............................................................................................. | 16,057 | 21,087 |
Bunkers and lubricant oils......................................................................................................................... | 8,789 | 8,446 |
Total current assets.................................................................................................................................... | 118,125 | 112,796 |
Non-current assets | ||
Vessels, net................................................................................................................................................ | 1,670,865 | 1,625,913 |
Property, plant and equipment, net............................................................................................................. | 1,299 | 1,098 |
Investment in equity accounted joint venture............................................................................................. | 42,462 | 117,656 |
Right-of-use asset for operating leases................................................................................................. | — | 7,041 |
Total non-current assets.......................................................................................................................... | 1,714,626 | 1,751,708 |
Total assets................................................................................................................................................ | $ 1,832,751 | $ 1,864,504 |
Liabilities and stockholders' equity | ||
Current liabilities | ||
Current portion of secured term loan facilities, net of deferred financing costs....................................... | $ 68,857 | $ 67,779 |
Current portion of operating lease liabilities............................................................................................... | — | 1,104 |
Accounts payable..................................................................................................................................... | 10,784 | 8,351 |
Accrued expenses and other liabilities...................................................................................................... | 12,798 | 15,701 |
Accrued interest......................................................................................................................................... | 4,613 | 2,544 |
Deferred income........................................................................................................................................ | 8,342 | 13,309 |
Total current liabilities................................................................................................................................ | 105,394 | 108,788 |
Non-current Liabilities | ||
Secured term loan facilities and revolving credit facilities, net of current portion and deferred | 599,676 | 635,375 |
Senior secured bond, net of deferred financing costs............................................................................ | 68,378 | 65,197 |
Senior unsecured bond, net of deferred financing costs........................................................................ | 99,039 | 98,055 |
Derivative liabilities................................................................................................................................... | 5,154 | 8,706 |
Operating lease liabilities, net of current portion..................................................................................... | — | 6,193 |
Total non-current liabilities........................................................................................................................ | 772,247 | 813,526 |
Total Liabilities....................................................................................................................................... | 877,641 | 922,314 |
Commitments and contingencies (see note 13) | ||
Stockholders' equity | ||
Common stock—$.01 par value per share; 400,000,000 shares authorized; 55,826,644 shares | 557 | 558 |
Additional paid-in capital........................................................................................................................ | 590,508 | 591,623 |
Accumulated other comprehensive loss............................................................................................... | (363 ) | (360 ) |
Retained earnings..................................................................................................................................... | 364,408 | 350,369 |
Total stockholders' equity....................................................................................................................... | 955,110 | 942,190 |
Total liabilities and stockholders' equity.......................................................................................... | $ 1,832,751 | $ 1,864,504 |
Navigator Holdings Ltd. | ||||
Condensed Consolidated Statements of Income | ||||
(Unaudited) | ||||
Three months ended September 30, (in thousands except share and per share | Nine months ended September 30, (in thousands except share and per share data) | |||
2018 | 2019 | 2018 | 2019 | |
Revenues | ||||
Operating revenue........................................................................... | $ 80,843 | $ 75,624 | $ 231,813 | $ 225,313 |
Expenses | ||||
Brokerage commissions................................................................. | 1,434 | 1,217 | 3,793 | 3,759 |
Voyage expenses............................................................................ | 17,251 | 13,387 | 46,158 | 43,181 |
Vessel operating expenses............................................................. | 26,873 | 26,820 | 79,624 | 83,742 |
Depreciation and amortization.................................................... | 18,846 | 19,009 | 57,256 | 56,870 |
General and administrative costs................................................. | 4,867 | 4,631 | 14,126 | 14,628 |
Total operating expenses............................................................. | 69,271 | 65,064 | 200,957 | 202,180 |
Operating income.......................................................................... | 11,572 | 10,560 | 30,856 | 23,133 |
Other income/(expense) | ||||
Foreign currency exchange gain on senior secured bonds....... | — | 4,171 | — | 3,219 |
Unrealized loss on non-designated derivative instruments..... | — | (5,197 ) | — | (3,552 ) |
Interest expense.............................................................................. | (11,014 ) | (12,406 ) | (32,891 ) | (36,768 ) |
Interest income................................................................................ | 202 | 197 | 561 | 617 |
Income/(loss) before income taxes and share of result | 760 | (2,675 ) | (1,474 ) | (13,351 ) |
Income taxes................................................................................... | (137 ) | (131 ) | (366 ) | (305 ) |
Share of result of equity accounted joint venture.................... | — | (107 ) | — | (247 ) |
Net income/(loss)............................................................................ | $ 623 | $ (2,913 ) | $ (1,840 ) | $ (13,903 ) |
Earnings/(loss) per share: | ||||
Basic:................................................................................................ | $ 0.01 | $ (0.05 ) | $ (0.03 ) | $ (0.25 ) |
Diluted:............................................................................................. | $ 0.01 | $ (0.05 ) | $ (0.03 ) | $ (0.25 ) |
Weighted average number of shares outstanding: | ||||
Basic:................................................................................................ | 55,656,304 | 55,829,239 | 55,620,149 | 55,781,276 |
Diluted:............................................................................................. | 56,000,240 | 55,829,239 | 55,620,149 | 55,781,276 |
Navigator Holdings Ltd. | ||
Condensed Consolidated Statements of Cash Flows | ||
(Unaudited) | ||
Nine Months ended | Nine Months ended | |
(in thousands) | (in thousands) | |
Cash flows from operating activities | ||
Net loss.................................................................................................................................................. | $ (1,840 ) | $ (13,903 ) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Unrealized loss on non-designated derivative instruments................................................................... | — | 3,552 |
Depreciation and amortization................................................................................................................ | 57,256 | 56,870 |
Payment of drydocking costs................................................................................................................. | (4,875 ) | (9,060 ) |
Prior year expenses recovered in insurance claim............................................................................... | (776 ) | — |
Amortization of share-based compensation.......................................................................................... | 765 | 1,116 |
Amortization of deferred financing costs............................................................................................... | 1,692 | 2,936 |
Share of result of equity accounted joint venture.................................................................................. | — | 247 |
Unrealized foreign exchange gain on senior secured bonds................................................................. | — | (3,219 ) |
Other unrealized foreign exchange gain................................................................................................ | 39 | (198 ) |
Changes in operating assets and liabilities | ||
Accounts receivable................................................................................................................................ | 1,089 | (6,599 ) |
Bunkers and lubricant oils...................................................................................................................... | (2,542 ) | 343 |
Accrued income and prepaid expenses and other current assets....................................................... | 425 | (1,546 ) |
Accounts payable, accrued interest, accrued expenses and other liabilities...................................... | 4,541 | 3,851 |
Net cash provided by operating activities..................................................................................... | 55,774 | 34,390 |
Cash flows from investing activities | ||
Refunds/(additions) to vessels and equipment....................................................................................... | 69 | (2,565 ) |
Investment in equity accounted joint venture......................................................................................... | (25,994 ) | (75,440 ) |
Purchase of other property, plant and equipment.................................................................................. | (120 ) | (255 ) |
Insurance recoveries............................................................................................................................. | 1,010 | 1,130 |
Net cash used in investing activities............................................................................................. | (25,035 ) | (77,130 ) |
Cash flows from financing activities | ||
Proceeds from secured term loan facilities and revolving credit facilities............................................. | 21,900 | 162,000 |
Issuance costs of secured bond........................................................................................................... | — | (136 ) |
Issuance costs of unsecured bond amendment.................................................................................... | — | (1,325 ) |
Issuance costs of secured term loan facilities....................................................................................... | — | (1,448 ) |
Issuance costs of terminal credit facility................................................................................................ | — | (2,765 ) |
Repayment of secured term loan facilities and revolving credit facilities............................................... | (64,290 ) | (128,150 ) |
Net cash (used in)/provided by financing activities....................................................................... | (42,390 ) | 28,176 |
Net decrease in cash, cash equivalents and restricted cash..................................................... | (11,651 ) | (14,564 ) |
Cash, cash equivalents and restricted cash at beginning of period......................................... | 62,109 | 71,515 |
Cash, cash equivalents and restricted cash at end of period..................................................... | $ 50,458 | $ 56,951 |
Supplemental Information | ||
Total interest paid during the period, net of amounts capitalized............................................................ | $ 33,438 | $ 35,478 |
Total tax paid during the period.............................................................................................................. | $ 107 | $ 225 |
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-results-for-the-three-and-nine-months-ended-september-30-2019-300957846.html
SOURCE Navigator Gas
LONDON, Nov. 8, 2019 /PRNewswire/ -- Navigator Holdings Ltd. ("Navigator") (NYSE: NVGS), the owner and operator of the world's largest fleet of handysize liquefied gas carriers, announced today that it will release its results for the three and nine months ended September 30, 2019 after market closes in New York on Wednesday, November 13, 2019.
On Thursday, November 14, 2019 at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Conference Call Details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238- 0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote "Navigator" to the operator.
A telephonic replay of the conference call will be available until Thursday, November 21, 2019, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009785 (Standard International Dial In). Access Code: 11870348#
Audio Webcast:
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
About Us
Navigator Holdings Ltd. 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. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet.
Navigator Gas
Attention: Investor Relations
New York: 650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1 212 355 5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-announces-date-for-the-release-of-third-quarter-2019-results-and-conference-call-300954984.html
SOURCE Navigator Gas
LONDON, Sept. 26, 2019 /PRNewswire/ -- Navigator Holdings Ltd. (the "Company") (NYSE: NVGS) advises that its 2019 Annual General Meeting of Shareholders (the "Annual Meeting") was held on September 26, 2019 at 9 a.m. local time at The Four Seasons, Houston, Texas, USA. The following proposals were approved:
No other proposals were voted on at the Annual Meeting.
About Us
Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet.
Navigator Gas
Attention: Investor Relations Department
New York: 650 Madison Avenue, 25th Floor, New York, NY 10022. Tel: +1 212 355 5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-annual-general-meeting-of-shareholders-results-notification-300926493.html
SOURCE Navigator Gas
LONDON, Aug. 16, 2019 /PRNewswire/ -- Navigator Holdings Ltd. ("Navigator") (NYSE: NVGS), the owner and operator of the world's largest fleet of handysize liquefied gas carriers, advises that its 2019 Annual Meeting will be held on September 26, 2019. The record date for voting at the Annual Meeting is set to August 7, 2019. At the Annual Meeting, shareholders will vote on the election of the members of the Board of Directors and the ratification of the appointment of Ernst & Young LLP as the Company's independent public accounting firm for the fiscal year ending December 31, 2019. The notice, agenda and associated material will be distributed prior to the meeting.
The Company's Notice of the Meeting and Proxy Statement will be mailed on or about August 15, 2018 and will be furnished to the Securities and Exchange Commission (the "Commission") and available on the Commission's website at www.sec.gov. The Notice of the Meeting and Proxy Statement and the Company's 2018 Annual Report are also available on the Company's website at www.navigatorgas.com.
The 2019 Annual Meeting will be held at The Four Seasons Hotel Houston, 1300 Lamar Street, Houston, Texas, TX77010, USA at 09:00 local time.
About Us
Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. We play a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable.
Navigator Gas
Attention: Investor Relations
New York: 650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1 212 355 5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-announces-2019-annual-meeting-300902927.html
SOURCE Navigator Gas
LONDON, Aug. 8, 2019 /PRNewswire/ --
Highlights
Ethylene Marine Export Terminal
On May 8, 2019, a third long term throughput agreement was signed for the Marine Export Terminal related to our 50/50 joint venture, with strong indications of demand for the remaining capacity. Commercial operations continue to be scheduled to begin in the fourth quarter of 2019, with the refrigerated storage tank expected to be completed in late 2020. It is anticipated that the Marine Export Terminal's throughput capacity during the first year of operation and prior to the cryogenic tank becoming operational will be between 60% to 75% of the total expected annual capacity of 1.0 million tonnes.
As of June 30, 2019, the Company had contributed $90.5 million of our expected $155.0 million share of the capital cost of the Marine Export Terminal construction from the Company's available cash resources and the 2018 Bonds. In July 2019, we contributed a further $12.5 million. We are scheduled to contribute an additional $31.0 million this year and to contribute the remaining $21.0 million of our expected share of the capital cost for the construction during 2020.
Appointment of Chief Executive Officer
On June 25, 2019, the Board of Directors (the "Board") of the Company. appointed Dr. Henry "Harry" Deans as Chief Executive Officer, effective August 22, 2019. David Butters, the Company's current President and Chief Executive Officer will relinquish that role to Dr. Deans on that date. Mr. Butters will continue as Executive Chairman of the Board. Dr. Deans was appointed a member of the Board in November 2018 and will continue as a member of the Board after the effectiveness of his appointment as Chief Executive Officer.
From 2006 to 2015, Dr. Deans held a series of positions as the chief executive officer of multiple affiliates and directly owned subsidiaries of INEOS Group Holdings S.A., a chemical company. From August 2015 to December 2017, Dr. Deans was the Senior Vice President of Agrium Inc., a fertilizer producer and distributor, prior to its merger with Potash Corporation of Saskatchewan to form Nutrien Ltd., where he served as the Executive Vice President and President of the nitrogen division from January 2018 to May 2018. From August 2015 to December 2017, he also served as a member of the board of directors of Canpotex Potash Export Company. Most recently Dr. Deans was Chief EHS and Operations Officer at Johnson Matthey PLC. Dr. Deans holds a Ph.D. and M.Phil. in chemistry from Strathclyde University as well as a B.Sc. in chemistry from Glasgow University.
Trends and Outlook
The headwinds from the first quarter carried into the second quarter with the global handysize spot market slowly incorporating the six vessels released from the Venezuelan cabotage trade as a consequence of sanctions the U.S. imposed upon Petroleos de Venezuela S.A. or "PdVSA". Such an increase in the supply of ships, especially in a segment with a total of 118 vessels on the water and with more than half trading under time charters, has restricted handysize market rates from increasing alongside other sectors. Continued European chemical plant turnarounds reduced traditional long-haul petrochemical exports to Asia and the import of U.S. ethylene which typically heads trans-Pacific, cutting handysize-ton mile demand.
As the LPG market strengthened, the usually more consistent petrochemical gas market faltered, as a number of unforeseeable elements combined to constrict trade flows. There have been a relatively high number of incidents at major terminals around the world in 2019. Italy, Turkey, the United States Gulf and East Coast, Mexico, Argentina, Malaysia and China have all endured misfortune and setbacks that disrupted product supply, receiving capacity and trade patterns.
In Europe, a larger than average turnaround season to the chemical industry has had both positive and negative effects for the shipping market. The increased demand for propylene in Europe surged, with 85,000 metric tonnes ("mt") shipped to North West Europe and another 5,000 mt to the West Mediterranean in the second quarter of 2019, a 50% increase on the levels in the first quarter of 2019. This propylene has been mainly shipped on handy-size semi-refrigerated vessels. We have also been shipping to Europe the majority of the ethylene lifted from Houston, with the landed pricing more attractive there than Asia. However, with European petrochemical production greatly diminished, the usual excess of butadiene regularly going to Asia has been limited as the poor arbitrage combined weak supply with lack of demand in Asia. Brazil continues to export healthy volumes of butadiene, propylene and ethylene.
The Very Large Gas Carrier ("VLGC") segment experienced increased supply of LPG volumes, especially from the U.S., which started to outweigh the supply of vessels. This surplus supply of LPG volumes relative to vessels ushered in a remarkable increase in rates to levels not seen since 2015. As the VLGC market rates rose, the Medium-size Gas Carrier ("MGC") market, started to see a tightening, with freight rates rising. There is a time-lag for these forces to positively impact the smaller handysize sector which we anticipate will occur later in 2019.
The handy-size (17-22,000 cbm) shipping market has seen many challenges during the first six months of 2019. It has not yet seen the improved charter rates that the VLGC sector currently enjoys, but neither has it suffered the lows of the VLGCs from six months ago. With VLGC spot earnings increasing from $1.0 million per calendar month ("pcm") to $2.1 million pcm over the second quarter and the MGC rates rising from $500,000 pcm to $650,000 pcm over the second quarter, the handy-size market's short-term overcapacity has certainly contributed to a decrease in our earnings in the second quarter as compared to the first quarter of 2019. However, as fully-refrigerated LPG volumes continue to rise at a steady pace, we expect to see the handy-size segment support this rise with the prospect of moving more vessels into the LPG market from the petrochemical market.
Second Quarter 2019 Financial Results Overview
The following table compares our operating results for the three months ended June 30, 2018 and 2019:
Three Months | Three Months | Percentage | |
(in thousands, except percentages) | |||
Operating revenue................................................................................................... | $ 73,163 | $ 73,586 | 0.6 % |
Operating expenses: | |||
Brokerage commissions................................................................................ | 1,219 | 1,233 | 1.1 % |
Voyage expenses......................................................................................... | 13,930 | 16,437 | 18.0 % |
Vessel operating expenses.......................................................................... | 26,040 | 27,448 | 5.4 % |
Depreciation and amortization....................................................................... | 19,029 | 18,913 | (0.6 %) |
General and administrative costs.................................................................. | 4,812 | 5,195 | 8.0 % |
Total operating expenses................................................................... | $ 65,030 | $ 69,226 | 6.5 % |
Operating income..................................................................................................... | $ 8,133 | $ 4,360 | (46.4 %) |
Foreign currency exchange loss on senior secured bonds......................... | — | (768 ) | — |
Unrealized gain on non-designated derivative instruments.......................... | — | 861 | — |
Interest expense........................................................................................... | (11,353) | (12,209 ) | 7.5 % |
Interest income.............................................................................................. | 207 | 205 | (1.0 %) |
Loss before taxes and share of result of equity accounted joint venture | $ (3,013) | $ (7,551 ) | 150.6 % |
Income taxes............................................................................................................ | (146 ) | (81) | (44.5 %) |
Share of result of equity accounted joint venture................................................... | — | (101 ) | — |
Net loss.......................................................................................................... | $ (3,159) | $ (7,733) | 144.8 % |
Operating Revenue. Operating revenue, net of address commission, increased by $0.4 million or 0.6% to $73.6 million for the three months ended June 30, 2019, from $73.2 million for the three months ended June 30, 2018. This increase was principally due to:
The following table presents selected operating data for the three months ended June 30, 2018 and 2019, which we believe are useful in understanding the basis for movement in our operating revenue.
Three Months Ended June 30, 2018 | Three Months Ended June 30, 2019 | |
Fleet Data: | ||
Weighted average number of vessels | 38.0 | 38.0 |
Ownership days | 3,458 | 3,458 |
Available days | 3,434 | 3,362 |
Operating days | 3,103 | 2,866 |
Fleet utilization | 90.3% | 85.2% |
Average daily time charter equivalent rate (*) | $ 19,089 | $ 19,940 |
* Non-GAAP Financial Measure—Time charter equivalent: Time charter equivalent ("TCE") 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, less any voyage expenses, by the number of operating days for the relevant period. 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 company's 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 Revenue to TCE rate
The following table represents a reconciliation of operating revenue to TCE rate. Operating revenue is the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
Three Months | Three Months | |
(in thousands, except operating days and | ||
Fleet Data: | ||
Operating revenue | $ 73,163 | $ 73,586 |
Voyage expenses | 13,930 | 16,437 |
Operating revenue less Voyage expenses | 59,233 | 57,149 |
Operating days | 3,103 | 2,866 |
Average daily time charter equivalent rate | $ 19,089 | $ 19,940 |
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, 2018 and 2019:
(in thousands) | ||
June 30, 2018 | June 30, 2019 | |
Net loss | $ (3,159) | $ (7,733) |
Net interest expense | 11,146 | 12,004 |
Income taxes | 146 | 81 |
Depreciation and amortization | 19,029 | 18,913 |
EBITDA(1) | 27,162 | 23,265 |
Foreign currency exchange loss on senior secured bonds | - | 768 |
Unrealized gain on non-designated derivative instruments | - | (861) |
Adjusted EBITDA(1) | $ 27,162 | $ 23,172 |
[1] EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA represents net income before net interest expense, income taxes and depreciation and amortization. We define Adjusted EBITDA as EBITDA before any foreign currency exchange gain or loss on senior secured bonds and unrealized gain or loss on non-designated derivative instruments. 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 as alternatives to any financial 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. See the table above for a reconciliation of EBITDA and Adjusted EBITDA to net income/(loss), our most directly comparable financial measure calculated accordance with U.S. GAAP.
Our Fleet
Operating Vessel | Year Built | Vessel Size (cbm) | Employment Status | Charter Expiration Date |
Ethylene/ethane capable semi-refrigerated | ||||
Navigator Orion (formerly known as Navigator Mars) | 2000 | 22,085 | Time charter | October 2020 |
Navigator Neptune | 2000 | 22,085 | Spot market | — |
Navigator Pluto | 2000 | 22,085 | Time charter | January 2020 |
Navigator Saturn | 2000 | 22,085 | Contract of affreightment | April 2020 |
Navigator Venus | 2000 | 22,085 | Time charter | November 2020 |
Navigator Atlas | 2014 | 21,000 | Spot market | — |
Navigator Europa | 2014 | 21,000 | Spot market | — |
Navigator Oberon | 2014 | 21,000 | Spot market | — |
Navigator Triton | 2015 | 21,000 | Contract of affreightment | April 2020 |
Navigator Umbrio | 2015 | 21,000 | Contract of affreightment | April 2020 |
Navigator Aurora | 2016 | 37,300 | Time charter | December 2026 |
Navigator Eclipse | 2016 | 37,300 | Time charter | August 2019 |
Navigator Nova | 2017 | 37,300 | Time charter | January 2020 |
Navigator Prominence | 2017 | 37,300 | Time charter | October 2019 |
Semi-refrigerated | ||||
Navigator Magellan | 1998 | 20,700 | Time charter | August 2019 |
Navigator Aries | 2008 | 20,750 | Time charter | May 2020 |
Navigator Capricorn | 2008 | 20,750 | Time charter | November 2019 |
Navigator Gemini | 2009 | 20,750 | Spot market | — |
Navigator Pegasus | 2009 | 22,200 | Spot market | — |
Navigator Phoenix | 2009 | 22,200 | Time charter | September 2019 |
Navigator Scorpio | 2009 | 20,750 | Spot market | — |
Navigator Taurus | 2009 | 20,750 | Time charter | September 2019 |
Navigator Virgo | 2009 | 20,750 | Time charter | August 2019 |
Navigator Leo | 2011 | 20,600 | Time charter | December 2023 |
Navigator Libra | 2012 | 20,600 | Time charter | December 2023 |
Navigator Centauri | 2015 | 21,000 | Spot market | — |
Navigator Ceres | 2015 | 21,000 | Spot market | — |
Navigator Ceto | 2016 | 21,000 | Spot market | — |
Navigator Copernico | 2016 | 21,000 | Spot market | — |
Navigator Luga | 2017 | 22,000 | Time charter | February 2022 |
Navigator Yauza | 2017 | 22,000 | Time charter | April 2022 |
Fully-refrigerated | ||||
Navigator Glory | 2010 | 22,500 | Time charter | June 2021 |
Navigator Grace | 2010 | 22,500 | Spot market | — |
Navigator Galaxy | 2011 | 22,500 | Time charter | April 2020 |
Navigator Genesis | 2011 | 22,500 | Time charter | June 2020 |
Navigator Global | 2011 | 22,500 | Time charter | November 2020 |
Navigator Gusto | 2011 | 22,500 | Time charter | October 2019 |
Navigator Jorf | 2017 | 38,000 | Time charter | August 2027 |
Conference Call Details:
Tomorrow, Friday, August 9, 2019, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928 592 (Standard International Dial In). Please quote "Navigator" to the operator. There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A telephonic replay of the conference call will be available until Friday, August 16, 2019, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009 785 (Standard International Dial In). Access Code: 11870348#
Navigator Gas
Attention: Investor Relations Department
New York: 650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1 212 355 5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
About Us
Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet.
Navigator Holdings Ltd. | ||
Condensed Consolidated Balance Sheets | ||
(Unaudited) | ||
December 31, 2018 | June 30, 2019 | |
(in thousands, except share data) | ||
Assets | ||
Current assets | ||
Cash and cash equivalents | $ 71,515 | $ 47,285 |
Accounts receivable, net | 17,033 | 20,166 |
Accrued income | 4,731 | 1,859 |
Prepaid expenses and other current assets | 16,057 | 25,433 |
Bunkers and lubricant oils | 8,789 | 10,249 |
Total current assets | 118,125 | 104,992 |
Non-current assets | ||
Vessels in operation, net | 1,670,865 | 1,639,755 |
Property, plant and equipment, net | 1,299 | 1,167 |
Investment in equity accounted joint venture | 42,462 | 93,814 |
Right-of-use asset for operating leases | — | 7,297 |
Total non-current assets | 1,714,626 | 1,742,033 |
Total assets | $ 1,832,751 | $ 1,847,025 |
Liabilities and stockholders' equity | ||
Current liabilities | ||
Current portion of secured term loan facilities, net of deferred financing costs | $ 68,857 | $ 67,827 |
Current portion of operating lease liabilities | — | 1,115 |
Accounts payable | 10,784 | 13,451 |
Accrued expenses and other liabilities | 12,798 | 13,055 |
Accrued interest | 4,613 | 4,701 |
Deferred income | 8,342 | 6,842 |
Total current liabilities | 105,394 | 106,991 |
Non-current Liabilities | ||
Secured term loan facilities and revolving credit facilities, net of current portion and deferred | 599,676 | 616,573 |
Senior secured bond, net of deferred financing costs | 68,378 | 69,311 |
Senior unsecured bond, net of deferred financing costs | 99,039 | 99,266 |
Derivative liabilities | 5,154 | 3,509 |
Operating lease liabilities, net of current portion | — | 6,674 |
Total non-current liabilities | 772,247 | 795,333 |
Total Liabilities | 877,641 | 902,324 |
Commitments and contingencies (see note 13) | ||
Stockholders' equity | ||
Common stock—$.01 par value per share; 400,000,000 shares authorized; 55,832,069 shares issued | 557 | 558 |
Additional paid-in capital | 590,508 | 591,254 |
Accumulated other comprehensive loss | (363 ) | (393 ) |
Retained earnings | 364,408 | 353,282 |
Total stockholders' equity | 955,110 | 944,701 |
Total liabilities and stockholders' equity | $ 1,832,751 | $ 1,847,025 |
Navigator Holdings Ltd. | ||||
Condensed Consolidated Statements of Income | ||||
(Unaudited) | ||||
Three months ended June 30, (in thousands except share and per share | Six months ended June 30, (in thousands except share and per | |||
2018 | 2019 | 2018 | 2019 | |
Revenues | ||||
Operating revenue......................................................................................... | $ 73,163 | $ 73,586 | $ 150,970 | $ 149,689 |
Expenses | ||||
Brokerage commissions................................................................................. | 1,219 | 1,233 | 2,360 | 2,542 |
Voyage expenses........................................................................................... | 13,930 | 16,437 | 28,908 | 29,794 |
Vessel operating expenses............................................................................. | 26,040 | 27,448 | 52,751 | 56,922 |
Depreciation and amortization.......................................................................... | 19,029 | 18,913 | 38,410 | 37,861 |
General and administrative costs..................................................................... | 4,812 | 5,195 | 9,258 | 9,997 |
Total operating expenses........................................................................... | 65,030 | 69,226 | 131,687 | 137,116 |
Operating income......................................................................................... | 8,133 | 4,360 | 19,283 | 12,573 |
Other income/(expense) | ||||
Foreign currency exchange loss on senior secured bonds | — | (768) | — | (952) |
Unrealized gain on non-designated derivative instruments | — | 861 | — | 1,645 |
Interest expense............................................................................................... | (11,353) | (12,209) | (21,877) | (24,362) |
Interest income.................................................................................................. | 207 | 205 | 359 | 420 |
Loss before income taxes and share of result of equity | (3,013) | (7,551 ) | (2,235) | (10,676) |
Income taxes...................................................................................................... | (146) | (81) | (228) | (174) |
Share of result of equity accounted joint venture.............................................. | — | (101) | — | (140) |
Net loss............................................................................................................. | $ (3,159) | $ (7,733) | $ (2,463) | $ (10,990) |
(Loss)/Earnings per share: | ||||
Basic:.................................................................................................................. | $ (0.06) | $ (0.14) | $ (0.04) | $ (0.20) |
Diluted:................................................................................................................ | $ (0.06) | $ (0.14) | $ (0.04) | $ (0.20) |
Weighted average number of shares outstanding: | ||||
Basic:.................................................................................................................. | 55,656,304 | 55,832,069 | 55,601,772 | 55,756,897 |
Diluted:................................................................................................................ | 55,656,304 | 55,832,069 | 55,601,772 | 55,756,897 |
Navigator Holdings Ltd. | ||
Condensed Consolidated Statements of Cash Flows | ||
(Unaudited) | ||
Six Months ended | Six Months ended | |
(in thousands) | (in thousands) | |
Cash flows from operating activities | ||
Net loss | $ (2,463) | $ (10,990 ) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Unrealized gain on non-designated derivative instruments | — | (1,645 ) |
Depreciation and amortization | 38,410 | 37,861 |
Payment of drydocking costs | (2,880 ) | (5,160 ) |
Prior year expenses recovered in insurance claim | (754) | — |
Amortization of share-based compensation | 366 | 747 |
Amortization of deferred financing costs | 1,131 | 1,473 |
Share of result of equity accounted joint venture | — | 140 |
Unrealized foreign exchange loss on senior secured bonds | — | 952 |
Other unrealized foreign exchange gain | (30 ) | (47) |
Changes in operating assets and liabilities | ||
Accounts receivable | 3,392 | (3,133 ) |
Bunkers and lubricant oils | 886 | (1,460 ) |
Accrued income and prepaid expenses and other current assets | 1,354 | (4,013 ) |
Accounts payable, accrued interest, accrued expenses and other liabilities | 3,734 | 2,012 |
Net cash provided by operating activities | 43,146 | 16,737 |
Cash flows from investing activities | ||
Additions to vessels and equipment | (79) | (1,396 ) |
Investment in equity accounted joint venture | (10,475 ) | (51,491 ) |
Purchase of other property, plant and equipment | (97 ) | (191 ) |
Insurance recoveries | 305 | 130 |
Net cash used in investing activities | (10,346 ) | (52,948 ) |
Cash flows from financing activities | ||
Proceeds from secured term loan facilities and revolving credit facilities | 3,800 | 127,000 |
Issuance costs of secured bond | — | (136 ) |
Issuance costs of secured term loan facilities | — | (1,448 ) |
Issuance costs of terminal credit facility | — | (2,723 ) |
Repayment of secured term loan facilities and revolving credit facilities | (43,613 ) | (110,712 ) |
Net cash (used in)/provided by financing activities | (39,813 ) | 11,981 |
Net decrease in cash, cash equivalents and restricted cash | (7,013 ) | (24,230 ) |
Cash, cash equivalents and restricted cash at beginning of period | 62,109 | 71,515 |
Cash, cash equivalents and restricted cash at end of period | $ 55,096 | $ 47,285 |
Supplemental Information | ||
Total interest paid during the period, net of amounts capitalized | $ 20,799 | $ 22,776 |
Total tax paid during the period | $ 52 | $ 165 |
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:
Our secured term loan facilities, revolving credit facilities and bond agreements impose operating and financial restrictions on us and require us to maintain various financial ratios. These include requirements that we maintain specified maximum ratios of net debt to total capitalization, specified minimum levels of cash and cash equivalents (including undrawn lines of credit with maturities greater than 12 months), specified minimum ratios of consolidated earnings before interest, taxes, depreciation and amortization (consolidated EBITDA), to consolidated interest expense and specified minimum levels of collateral coverage. These facilities also include customary events of default related to cross-defaults to other indebtedness. Our compliance with such financial covenants is measured as of the end of each fiscal quarter. The failure to comply with such covenants would cause an event of default that could materially adversely affect our business, financial condition and operating results. Please read "Item 5—Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Financial Covenants in our 2018 Annual Report. As of June 30, 2019, we were in compliance with all covenants under the secured term loan facilities, revolving credit facilities and bond agreements.
While we expect that we will be in compliance with all covenants under the secured term loan facilities, revolving credit facilities and bond agreements as of the end of the forthcoming quarters, we expect that our ratio of consolidated EBITDA to consolidated interest expense at the end of each such quarter will be substantially near the required minimum under our unsecured bond agreement. There can be no assurance that we will be in compliance with this covenant under the unsecured bond.
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.
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-results-for-the-three-and-six-months-ended-june-30-2019-300899173.html
SOURCE Navigator Gas
LONDON, Aug. 2, 2019 /PRNewswire/ -- Navigator Holdings Ltd. ("Navigator") (NYSE: NVGS), the owner and operator of the world's largest fleet of handysize liquefied gas carriers, announced today that it will release its results for the three and six months ended June 30, 2019 after market closes in New York on Thursday, August 8, 2019.
On Friday, August 9, 2019 at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Conference Call Details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238- 0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote "Navigator" to the operator.
A telephonic replay of the conference call will be available until Friday, August 16, 2019, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009785 (Standard International Dial In). Access Code: 11870348#
Audio Webcast:
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
About Us
Navigator Holdings Ltd. 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. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet.
Navigator Gas
Attention: Investor Relations
New York: 650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1 212 355 5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-announces-date-for-the-release-of-second-quarter-2019-results-and-conference-call-300895722.html
SOURCE Navigator Gas
LONDON, June 26, 2019 /PRNewswire/ -- On June 25, 2019, the Board of Directors (the "Board") of Navigator Holdings Ltd. (the "Company") (NYSE: NVGS) appointed Dr. Henry "Harry" Deans as Chief Executive Officer, effective August 22, 2019. David Butters, the Company's current President and Chief Executive Officer will relinquish that role to Dr. Deans on that date and continue as Chairman of the Board. Dr. Deans will continue as a member of the Board after the effectiveness of his appointment as Chief Executive Officer.
David Butters, the Company's Chairman and current President and Chief Executive Officer commented:
"I am delighted that Harry Deans has agreed to join the Company as Chief Executive Officer and I look forward to working with him and to continue to grow and develop the Company over the coming months and years. I have been impressed with Harry's considerable knowledge and understanding of the petrochemical industry since becoming a non-executive director of the Company last year, so I am very pleased to pass the Chief Executive role to a highly capable leader in Harry Deans."
Dr. Harry Deans, the Company's incoming Chief Executive Officer, commented:
"I am honored to be given the opportunity to fulfil the role of Chief Executive Officer at Navigator and I look forward to working even more closely with the Navigator management team. As a global leader in seaborne transportation of liquefied gases, the Company continues to play a vital role in the liquefied gas supply chain, which will be further enhanced by the addition of the Morgan's Point ethylene terminal coming on-line later this year."
Dr. Deans was appointed a member of the Board in November 2018. From 2006 to 2015, Dr. Deans held a series of positions as the chief executive officer of multiple affiliates and directly owned subsidiaries of INEOS Group Holdings S.A., a chemical company. From August 2015 to December 2017, Dr. Deans was the Senior Vice President of Agrium Inc., a fertilizer producer and distributor, prior to its merger with Potash Corporation of Saskatchewan to form Nutrien Ltd., where he served as the Executive Vice President and President of the nitrogen division from January 2018 to May 2018. From August 2015 to December 2017, he also served as a member of the board of directors of Canpotex Potash Export Company. Most recently Dr. Deans was Chief EHS and Operations Officer at Johnson Matthey PLC. Dr. Deans holds a Ph.D and M.Phil. in chemistry from Strathclyde University as well as a B.Sc. in chemistry from Glasgow University.
About Us
Navigator Holdings Ltd. 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. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet.
Navigator Gas
Attention: Investor Relations
New York: 650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1-212-355-5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44(0)20-7340-4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-announces-appointment-of-dr-henry-deans-as-chief-executive-officer-300875535.html
SOURCE Navigator Gas
LONDON, May 13, 2019 /PRNewswire/ --
Highlights
The first quarter of 2019 enjoyed a positive start as the strong finish to 2018 carried over into January, with strong returns on both LPG and petrochemical fixtures. However, the initial fortitude of 2019 failed to gather further momentum due to a number of far-reaching incidents, including disruptions relating to sanctions imposed in Venezuela as mentioned below.
In January 2019, the Government of the United States imposed sanctions on Venezuela's state-owned oil company, Petróleos de Venezuela S.A., or "PDVSA", giving ship owners until the end of February 2019 to cease trading with all related entities. At the end of 2018, PDVSA had six handy-size vessels on time charter, two of which were our vessels. By the end the first quarter of 2019, PDVSA had only one handy-size vessel on time charter. The five vessels that left Venezuela softened the shipping market in the short term, but most have since found alternative employment. The outcome of the political and economic uncertainty in Venezuela is unknown. The country's extreme situation can only be burdened further without the LPG cabotage trade these vessels performed, which supplied fuel for cooking and heating.
These circumstances led to the Company concluding alternate short-term time charters in the U.S. Gulf – Caribbean market with various major commodity traders in the first quarter of 2019. Elsewhere, the North Sea and Baltic LPG markets have remained consistent and a good employer of handy-size vessels.
The larger fully refrigerated liquefied gas carrier market also suffered during the first quarter of 2019, with the very large gas carrier ("VLGC") market struggling with earnings per vessel below $200,000 per calendar month ("pcm") at times as the number of available vessels greatly outweighed the number of cargoes and demand for product. The Mariner East network on the East Coast of the US again suffered with several pipeline issues that led to unreliable exports of both LPG and ethane. This long shipping market at times also led to VLGC owners opportunistically taking cargoes from the midsize gas carrier ("MGC") and handy-size market. Nonetheless, by the end of the first quarter of 2019 the VLGC market had turned full circle with earnings approaching $1.0 million pcm as more cargo availability and demand swung the market balance towards the ship owners. This trend, at least in the short term, should have a positive effect on both the MGC and handy-size market.
The strong performance of the ethylene sector slowed dramatically following a serious fire at Versalis' steam cracker at Priolo, Italy in early January 2019. The halt in output meant that the traders that hold all the equity in Priolo were left with no employment for their considerable time charter fleets. These traders thus absorbed all spot tons to keep their vessels moving from January well into March, which would normally have been shipped by the wider spot fleet. This impacted both ethylene utilization and earnings. Priolo has since come back online, with the market settling back into its previous balance. Exports from Targa Terminal in the U.S. remained steady and are already booked at full capacity for the second quarter, with all cargoes to be loaded on our vessels.
The long-haul butadiene arbitrage from Europe to Asia was closed for most of the first quarter of 2019, with the Far East over-supplied locally. There have been regular movements on butadiene, butene-1 and crude C4 from Europe to the US, however. This, accompanied by the long-awaited U.S. Propylene export trade finally coming to life, has created new opportunities for triangulation in the Atlantic basin across the petrochemical streams. This is expected to continue for the remainder of 2019.
We have also seen increased exports from the Middle East – Saudi Arabia and Abu Dhabi in particular – on both propylene and ethylene, following years of unreliable production.
Petrochemical sector voyages achieved charter rates of up to approximately $24,000 per day during the first quarter of 2019, whereas rates for standard LPG transportation remained at approximately $14,500 per day. Moreover, we concluded charters with five new charterers during the first quarter of 2019. This shows the continued adaptability of our fleet to accommodate difficult market situations and develop new opportunities.
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 March 31, 2018 and 2019:
(in thousands) | ||
March 31, | March 31, | |
Net income / (loss) | $ 696 | $ (3,257) |
Net interest expense | 10,372 | 11,938 |
Income taxes | 82 | 93 |
Depreciation and amortization | 19,381 | 18,947 |
EBITDA(1) | 30,531 | 27,721 |
Foreign currency exchange loss on senior secured bonds | - | 184 |
Unrealized gain on non-designated derivative instruments | - | (783) |
Adjusted EBITDA(1) | $ 30,531 | $ 27,122 |
Conference Call Details:
On Tuesday, May 14, 2019, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928 592 (Standard International Dial In). Please quote "Navigator" to the operator. There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A telephonic replay of the conference call will be available until Tuesday, May 21, 2019, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009 785 (Standard International Dial In). Access Code: 11870348#
About Us
Navigator Holdings Ltd. 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 liquefied petroleum gas ("LPG"), petrochemical gases, such as ethylene and ethane, and ammonia. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet.
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:
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.
Navigator Holdings Ltd. | ||
Condensed Consolidated Balance Sheets | ||
(Unaudited) | ||
December 31, 2018 | March 31, 2019 | |
(in thousands, except share data) | ||
Assets | ||
Current assets | ||
Cash and cash equivalents | $ 71,515 | $ 53,895 |
Accounts receivable, net | 17,033 | 23,618 |
Accrued income | 4,731 | 4,257 |
Prepaid expenses and other current assets | 16,057 | 18,269 |
Bunkers and lubricant oils | 8,789 | 11,495 |
Total current assets | 118,125 | 111,534 |
Non-current assets | ||
Vessels in operation, net | 1,670,865 | 1,653,921 |
Property, plant and equipment, net | 1,299 | 1,167 |
Investment in equity accounted joint venture | 42,462 | 74,809 |
Right-of-use asset for operating leases | — | 7,550 |
Total non-current assets | 1,714,626 | 1,737,447 |
Total assets | $ 1,832,751 | $ 1,848,981 |
Liabilities and stockholders' equity | ||
Current liabilities | ||
Current portion of secured term loan facilities, net of deferred financing costs | $ 68,857 | $ 67,712 |
Current portion of operating lease liabilities | — | 1,113 |
Accounts payable | 10,784 | 9,142 |
Accrued expenses and other liabilities | 12,798 | 13,812 |
Accrued interest | 4,613 | 2,671 |
Deferred income | 8,342 | 9,764 |
Total current liabilities | 105,394 | 104,214 |
Non-current Liabilities | ||
Secured term loan facilities and revolving credit facilities, net of current portion and deferred | 599,676 | 613,545 |
Senior secured bond, net of deferred financing costs | 68,378 | 68,612 |
Senior unsecured bond, net of deferred financing costs | 99,039 | 99,153 |
Derivative liabilities | 5,154 | 4,371 |
Operating lease liabilities, net of current portion | — | 7,071 |
Total non-current liabilities | 772,247 | 792,752 |
Total Liabilities | 877,641 | 896,966 |
Commitments and contingencies (see note 13) | ||
Stockholders' equity | ||
Common stock—$.01 par value per share; 400,000,000 shares authorized; 55,832,069 shares | 557 | 558 |
Additional paid-in capital | 590,508 | 590,853 |
Accumulated other comprehensive loss | (363 ) | (411 ) |
Retained earnings | 364,408 | 361,015 |
Total stockholders' equity | 955,110 | 952,015 |
Total liabilities and stockholders' equity | $ 1,832,751 | $ 1,848,981 |
Navigator Holdings Ltd. | ||
Condensed Consolidated Statements of Income | ||
(Unaudited) | ||
Three months ended March 31, (in thousands except share data) | ||
2018 | 2019 | |
Revenues | ||
Operating revenue | $ 77,807 | $ 76,103 |
Expenses | ||
Brokerage commissions | 1,141 | 1,309 |
Voyage expenses | 14,978 | 13,357 |
Vessel operating expenses | 26,710 | 29,474 |
Depreciation and amortization | 19,381 | 18,947 |
General and administrative costs | 4,447 | 4,803 |
Total operating expenses | 66,657 | 67,890 |
Operating income | 11,150 | 8,213 |
Other income/(expense) | ||
Foreign currency exchange loss on senior secured bonds | — | (184) |
Unrealized gain on non-designated derivative instruments | — | 783 |
Interest expense | (10,524 ) | (12,153 ) |
Interest income | 152 | 215 |
Income/(loss) before income taxes and share of results | 778 | (3,126) |
Income taxes | (82 ) | (93 ) |
Share of result of equity accounted joint venture | — | (38) |
Net income/(loss) | $ 696 | $ (3,257) |
Earnings/(loss) per share: | ||
Basic: | $ 0.01 | $ (0.06) |
Diluted: | $ 0.01 | $ (0.06) |
Weighted average number of shares outstanding: | ||
Basic: | 55,546,634 | 55,680,889 |
Diluted: | 55,915,174 | 55,680,889 |
Navigator Holdings Ltd. | ||
Condensed Consolidated Statements of Cash Flows | ||
(Unaudited) | ||
Three Months ended | Three Months ended | |
(in thousands) | (in thousands) | |
Cash flows from operating activities | ||
Net income/(loss) | $ 696 | $ (3,257) |
Adjustments to reconcile net income to net cash provided | ||
Unrealized gain on non-designated derivative instruments | — | (783) |
Depreciation and amortization | 19,381 | 18,947 |
Payment of drydocking costs | (1,524) | (1,675) |
Amortization of share-based compensation | 310 | 346 |
Amortization of deferred financing costs | 568 | 604 |
Share of result of equity accounted joint venture | — | 38 |
Unrealized foreign exchange loss on senior secured bonds | — | 184 |
Other unrealized foreign exchange gain | (41) | 34 |
Changes in operating assets and liabilities | ||
Accounts receivable | 1,716 | (6,585) |
Bunkers and lubricant oils | 488 | (2,706) |
Accrued income and prepaid expenses and other current assets | 3,982 | (1,738) |
Accounts payable, accrued interest, accrued expenses and other | (3,479) | (626) |
Net cash provided by operating activities | 22,097 | 2,783 |
Cash flows from investing activities | ||
Payment to acquire vessels | (193) | (233) |
Investment in equity accounted joint venture | (10,494) | (32,385) |
Purchase of other property, plant and equipment | (45 ) | (68 ) |
Insurance recoveries | 277 | — |
Net cash used in investing activities | (10,455) | (32,686) |
Cash flows from financing activities | ||
Proceeds from secured term loan facilities and revolving credit facilities | — | 107,000 |
Issuance costs of secured term loan facility | — | (1,442) |
Repayment of secured term loan facilities and revolving credit facilities | (22,937) | (93,275) |
Net cash (used in)/provided by financing activities | (22,937) | 12,283 |
Net decrease in cash, cash equivalents and restricted cash | (11,295 ) | (17,620) |
Cash, cash equivalents and restricted cash at beginning of period | 62,109 | 71,515 |
Cash, cash equivalents and restricted cash at end of period | $ 50,814 | $ 53,895 |
Supplemental Information | ||
Total interest paid during the period, net of amounts capitalized | $ 11,616 | $ 13,352 |
Total tax paid during the period | $ 4 | $ 70 |
Navigator Gas
Attention: Investor Relations Department
New York: 650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1 212 355 5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-results-for-the-three-months-ended-march-31-2019-300849100.html
SOURCE Navigator Gas
LONDON, May 7, 2019 /PRNewswire/ -- Navigator Holdings Ltd. ("Navigator") (NYSE: NVGS), the owner and operator of the world's largest fleet of handysize liquefied gas carriers, announced today that it will release its results for the three months ended March 31, 2019 after market closes in New York on Monday, May 13, 2019.
On Tuesday, May 14, 2019 at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Conference Call Details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238- 0669 (UK Toll Free Dial In) or +44 (0) 2071 928592 (Standard International Dial In). Please quote "Navigator" to the operator.
A telephonic replay of the conference call will be available until Tuesday, May 21, 2019, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009785 (Standard International Dial In). Access Code: 11870348#
Audio Webcast:
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
About Us
Navigator Holdings Ltd. 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. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet.
Navigator Gas
Attention: Investor Relations
New York: 650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1 212 355 5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-announces-date-for-the-release-of-first-quarter-2019-results-and-conference-call-300845403.html
SOURCE Navigator Gas
LONDON, April 1, 2019 /PRNewswire/ --
Highlights
Fourth Quarter 2018 Financial Results Overview
Operating revenue for the three months ended December 31, 2018, was $78.2 million, an increase of $1.5 million, or 2.0%, compared to the $76.7 million of operating revenue for the three months ended December 31, 2017.
For the fourth quarter of 2018, the average time charter equivalent rate ("TCE")(2) across the fleet was $636,333 per calendar month ($20,920 per day), compared to $626,161 per calendar month ($20,586 per day) for the comparable period in 2017.
Fleet utilization across the 38 vessels was 86.3% for the fourth quarter of 2018, a reduction from 87.2% in the fourth quarter of 2017.
Operating revenue less voyage expenses amounted to $62.8 million for the three months ended December 31, 2018, compared to $61.9 million in the same three month period of 2017. This increase during the three months ended December 31, 2018, compared to the three months ended December 31, 2017, was as a result of a combination of increases in TCE rates giving rise to additional revenue of $1.0 million, a further $0.5 million increase due to the additional vessels in our fleet, partially off-set by a reduction in utilization rates of $0.6 million.
Net loss was $3.9 million for the three months ended December 31, 2018, or a loss per share of $0.07 per share. This includes non-cash movements of our cross-currency interest rate swap and foreign exchange translation, both relating to our NOK denominated bond, without which the loss for the three months ended December 31, 2018 would have been $1.1 million.
Reconciliation of Non-GAAP Financial Measure
The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the three and twelve months ended December 31, 2017 and 2018:
(in thousands) | (in thousands) | ||||
Three months ended | Year ended | ||||
December 31, | December 31, | December 31, | December 31, | ||
Net income / (loss) | $ 1,411 | $ (3,899) | $ 5,310 | $ (5,739) | |
Net interest expense | 9,324 | 11,724 | 41,475 | 44,054 | |
Income taxes | 6 | (33) | 397 | 333 | |
Depreciation and amortization | 18,863 | 18,884 | 73,588 | 76,140 | |
EBITDA(1) | $ 29,604 | $ 26,676 | $ 120,770 | $ 114,788 | |
Foreign currency exchange gain on senior | — | (2,360) | — | (2,360) | |
Unrealized loss on non-designated derivative | — | 5,154 | — | 5,154 | |
Adjusted EBITDA(1) | $ 29,604 | $ 29,470 | $ 120,770 | $ 117,582 | |
The following table represents a reconciliation of TCE rate to operating revenue, the most directly comparable financial measure calculated in accordance with GAAP, for the periods presented:
Three Months | Three Months | |
Fleet Data: | ||
Operating revenue................................................................................. | 76,684 | 78,233 |
Voyage expenses................................................................................. | 14,781 | 15,476 |
Operating revenue less Voyage expenses.......................................... | 61,903 | 62,757 |
Operating days...................................................................................... | 3,007 | 3,000 |
Average daily time charter equivalent rate (2)....................................... | $ 20,586 | $ 20,920 |
The Terminal Facility
On March 29, 2019, Navigator Ethylene Terminals LLC, a wholly-owned subsidiary of the Company (the "Marine Terminal Borrower"), entered into a Credit Agreement with ING Capital LLC and SG Americas Securities, LLC for a maximum principal amount of $75.0 million, to be used solely for the payment of project costs relating to our Marine Export Terminal.
The Terminal Facility is comprised of an initial construction loan, followed by a term loan with a final maturity occurring on the earlier of (i) five years from completion of the Marine Export Terminal and (ii) December 31, 2025. Initial borrowing under the Terminal Facility may only occur after the Marine Terminal Borrower has made equity contributions required under the terminal facility to the Export Terminal Joint Venture, which together with available borrowings under the Terminal Facility, will fund its entire portion of the capital cost for the construction of the Marine Export Terminal. In addition, the ability of the Marine Terminal Borrower to borrow under the Terminal Facility is subject to the satisfaction of certain conditions, including the delivery to the lenders thereunder of legal opinions with respect to certain regulatory and environmental matters relating to the Marine Export Terminal. There can be no assurance that all conditions to borrowing will be satisfied.
Conference Call Details:
On Monday, April 1, 2019, at 8:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928 592 (Standard International Dial In). Please quote "Navigator" to the operator. There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A telephonic replay of the conference call will be available until April 8, 2019, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009 785 (Standard International Dial In). Access Code: 11870348#
About Us
Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet.
Navigator Holdings Ltd. | ||
Unaudited Condensed Consolidated Balance Sheets | ||
(Unaudited) | ||
December 31, 2017 | December 31, 2018 | |
(in thousands, except share data) | ||
Assets | ||
Current assets | ||
Cash and cash equivalents.................................................................................................................. | $ 62,109 | $ 71,515 |
Accounts receivable, net..................................................................................................................... | 14,889 | 17,033 |
Accrued income................................................................................................................................... | 15,791 | 4,731 |
Prepaid expenses and other current assets........................................................................................ | 11,340 | 16,057 |
Bunkers and lubricant oils..................................................................................................................... | 8,008 | 8,789 |
Total current assets.............................................................................................................................. | 112,137 | 118,125 |
Non-current assets | ||
Vessels in operation, net...................................................................................................................... | 1,740,139 | 1,670,865 |
Property, plant and equipment, net....................................................................................................... | 1,611 | 1,299 |
Investment in equity accounted joint venture....................................................................................... | — | 42,462 |
Total non-current assets...................................................................................................................... | 1,741,750 | 1,714,626 |
Total assets....................................................................................................................................... | $ 1,853,887 | $ 1,832,751 |
Liabilities and stockholders' equity | ||
Current liabilities | ||
Current portion of secured term loan facilities, net of deferred financing costs.................................. | $ 81,559 | $ 68,857 |
Accounts payable................................................................................................................................. | 8,071 | 10,784 |
Accrued expenses and other liabilities................................................................................................. | 12,478 | 12,798 |
Accrued interest.................................................................................................................................... | 3,500 | 4,613 |
Deferred income.................................................................................................................................... | 4,824 | 8,342 |
Total current liabilities........................................................................................................................... | 110,432 | 105,394 |
Non-current Liabilities | ||
Secured term loan facilities and revolving credit facilities, net of current portion and deferred | 681,658 | 599,676 |
Senior secured bond, net of deferred financing costs........................................................................ | — | 68,378 |
Senior unsecured bond, net of deferred financing costs.................................................................... | 98,584 | 99,039 |
Derivative liabilities................................................................................................................................ | — | 5,154 |
Total non-current liabilities.................................................................................................................... | 780,242 | 772,247 |
Total Liabilities................................................................................................................................... | 890,674 | 877,641 |
Commitments and contingencies (see note 15) | ||
Stockholders' equity | ||
Common stock—$.01 par value per share; 400,000,000 shares authorized; 55,657,631 shares | 555 | 557 |
Additional paid-in capital....................................................................................................................... | 589,436 | 590,508 |
Accumulated other comprehensive loss.............................................................................................. | (277 ) | (363 ) |
Retained earnings................................................................................................................................. | 373,499 | 364,408 |
Total stockholders' equity..................................................................................................................... | 963,213 | 955,110 |
Total liabilities and stockholders' equity..................................................................................... | $ 1,853,887 | $ 1,832,751 |
Navigator Holdings Ltd. | ||||
Unaudited Condensed Consolidated Statements of Income | ||||
(Unaudited) | ||||
Three months ended December 31, (in thousands except share data) | Year ended December 31, (in thousands except share data) | |||
2017 | 2018 | 2017 | 2018 | |
Revenues | ||||
Operating revenue......................................................................................... | $ 76,684 | $ 78,233 | $ 298,595 | $ 310,046 |
Expenses | ||||
Brokerage commissions.................................................................................. | 1,263 | 1,349 | 5,368 | 5,142 |
Voyage expenses........................................................................................... | 14,781 | 15,476 | 55,542 | 61,634 |
Vessel operating expenses............................................................................ | 26,956 | 27,095 | 100,968 | 106,719 |
Depreciation and amortization......................................................................... | 18,863 | 18,884 | 73,588 | 76,140 |
General and administrative costs................................................................... | 3,554 | 4,121 | 13,816 | 16,346 |
Other corporate expenses............................................................................. | 526 | 684 | 2,131 | 2,585 |
Total operating expenses......................................................................... | 65,943 | 67,609 | 251,413 | 268,566 |
Operating income....................................................................................... | 10,741 | 10,624 | 47,182 | 41,480 |
Other income/(expense) | ||||
Share of result of equity accounted joint venture........................................... | — | (38) | — | (38) |
Foreign currency exchange gain on senior secured bonds........................... | — | 2,360 | — | 2,360 |
Unrealized loss on non-designated derivative instruments............................ | — | (5,154) | (5,154) | |
Interest expense............................................................................................. | (9,967) | (12,017) | (37,691 ) | (44,908 ) |
Write off of deferred financing costs............................................................. | 495 | — | (786 ) | — |
Write off of call premium and redemption charges on 9% | — | — | (3,517 ) | — |
Interest income................................................................................................ | 148 | 293 | 519 | 854 |
Income/(loss) before income taxes........................................................ | 1,417 | (3,932) | 5,707 | (5,406) |
Income taxes................................................................................................... | (6 ) | 33 | (397 ) | (333 ) |
Net income/(loss)........................................................................................ | $ 1,411 | $ (3,899) | 5,310 | (5,739) |
Earnings/loss per share: | ||||
Basic:.............................................................................................................. | $ 0.03 | $ (0.07) | $ 0.10 | $ (0.10) |
Diluted:............................................................................................................ | $ 0.03 | $ (0.07) | $ 0.10 | $ (0.10) |
Weighted average number of shares outstanding: | ||||
Basic:.............................................................................................................. | 55,529,762 | 55,655,357 | 55,508,974 | 55,629,023 |
Diluted:............................................................................................................. | 55,898,502 | 55,999,293 | 55,881,454 | 55,629,023 |
Navigator Holdings Ltd. | |||||||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended | Year ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||
2017 | 2018 | 2017 | 2018 | ||||||||||||
Net income / (loss) | $ | 1,411 | $ | (3,899) | $ | 5,310 | $ | (5,739) | |||||||
Other comprehensive income/(loss): | |||||||||||||||
Foreign currency translation | (242) | (77) | 10 | (86) | |||||||||||
Total comprehensive income/(loss) | 7,760 | (3,976) | 44,816 | (5,825) | |||||||||||
Navigator Holdings Ltd. | ||||||
Unaudited Condensed Consolidated Statements of Stockholders' Equity | ||||||
(Unaudited) | ||||||
(in thousands, except share data) | ||||||
Common stock | ||||||
Number of | Amount 0.01 | Additional | Accumulated | Retained | Total | |
January 1, 2016.................................... | 55,363,467 | $ 554 | $ 586,451 | $ (465 ) | $ 323,551 | $ 910,091 |
Restricted shares issued March 29, | 72,620 | — | — | — | — | — |
Net income............................................. | — | — | — | — | 44,638 | 44,638 |
Foreign currency translation................. | — | — | — | 178 | — | 178 |
Share-based compensation plan........... | — | — | 1,573 | — | — | 1,573 |
December 31, 2016............................. | 55,436,087 | $ 554 | $ 588,024 | $ (287 ) | $ 368,189 | $ 956,480 |
Restricted shares issued March 23, | 93,675 | 1 | — | — | — | 1 |
Net income............................................. | — | — | — | — | 5,310 | 5,310 |
Foreign currency translation.................. | — | — | — | 10 | — | 10 |
Share-based compensation plan........... | — | — | 1,412 | — | — | 1,412 |
December 31, 2017.............................. | 55,529,762 | $ 555 | $ 589,436 | $ (277 ) | $ 373,499 | $ 963,213 |
Adjustment to equity for the adoption of | — | — | — | — | (3,352) | (3,352) |
Forfeited shares - 2013 long-term equity | (3,673) | — | — | — | — | — |
Restricted shares issued March 20, 2018 | 131,542 | 2 | — | — | — | 2 |
Net income.............................................. | — | — | — | — | (5,739) | (5,739) |
Foreign currency translation................... | — | — | — | (86) | — | (86) |
Share-based compensation plan............ | — | — | 1,072 | — | — | 1,072 |
December 31, 2018.............................. | 55,657,631 | $ 557 | $ 590,508 | $ (363 ) | $ 364,408 | $ 955,110 |
Navigator Holdings Ltd. | |||
Unaudited Condensed Consolidated Statements of Cash Flows | |||
(Unaudited) | |||
Year ended | Year ended | Year ended | |
Cash flows from operating activities | |||
Net income/(loss)........................................................................................................................ | $ 44,638 | $ 5,310 | $ (5,739) |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Unrealized loss on non-designated derivative instruments........................................................ | — | — | 5,154 |
Depreciation and amortization..................................................................................................... | 62,280 | 73,588 | 76,140 |
Payment of drydocking costs...................................................................................................... | (9,902 ) | (268 ) | (5,796) |
Amortization of share-based compensation............................................................................... | 1,573 | 1,412 | 1,074 |
Amortization of deferred financing costs................................................................................... | 3,091 | 3,217 | 2,292 |
Share of result of equity accounted affiliates............................................................................ | — | — | 38 |
Call option premium on redemption of 9.00% unsecured bond.................................................. | — | 2,500 | — |
Prior year expenses recovered from insurance claim............................................................... | — | (504 ) | — |
Insurance claim debtor............................................................................................................... | 60 | (7 ) | (642 ) |
Unrealized foreign exchange gain on senior secured bonds.................................................... | — | — | (2,360 ) |
Other unrealized foreign exchange gain/(loss)......................................................................... | 208 | 3 | (12) |
Changes in operating assets and liabilities | |||
Accounts receivable.................................................................................................................. | 1,991 | (7,831 ) | (2,144 ) |
Bunkers and lubricant oils.......................................................................................................... | (3,457 ) | (1,074 ) | (781 ) |
Prepaid expenses and other current assets............................................................................. | (7,694 ) | (5,079 ) | 2,629 |
Accounts payable, accrued interest and accrued expenses and other liabilities..................... | (6,040 ) | 4,654 | 7,664 |
Net cash provided by operating activities......................................................................... | 86,748 | 75,921 | 77,517 |
Cash flows from investing activities | |||
Payment to acquire vessels....................................................................................................... | (1,733 ) | (1,940 ) | (648) |
Investment in equity accounted joint venture............................................................................. | — | — | (42,500) |
Payment for vessels under construction................................................................................... | (239,179 ) | (180,629 ) | — |
Purchase of other property, plant and equipment...................................................................... | (75 ) | (1,726 ) | (182 ) |
Receipt of shipyard penalty payments....................................................................................... | 1,901 | 280 | — |
Placement of short term investment........................................................................................... | — | (25,000 ) | — |
Release of short term investment.............................................................................................. | — | 25,000 | — |
Insurance recoveries................................................................................................................. | 9,374 | 990 | 1,003 |
Capitalized costs for the repair of Navigator Aries................................................................... | (8,441 ) | — | — |
Net cash used in investing activities.................................................................................. | (238,153 ) | (183,025 ) | (42,327) |
Cash flows from financing activities | |||
Proceeds from secured term loan facilities and revolving credit facilities................................. | 327,670 | 395,170 | 21,900 |
Issuance of senior secured bonds............................................................................................ | — | — | 71,697 |
Issuance of 7.75% senior unsecured bonds............................................................................. | — | 100,000 | — |
Repayment of 9.00% senior unsecured bonds.......................................................................... | — | (127,500 ) | — |
Issuance cost of senior secured bonds..................................................................................... | — | — | (991 ) |
Issuance cost of 7.75% senior unsecured bonds...................................................................... | — | (1,819 ) | — |
Direct financing cost of secured term loan and revolving credit facilities................................... | (2,680 ) | (2,058 ) | (38 ) |
Repayment of secured term loan and revolving credit facilities.................................................. | (204,092 ) | (251,852 ) | (118,352 ) |
Net cash provided by/(used in) financing activities.......................................................... | 120,898 | 111,941 | (25,784) |
Net (decrease)/increase in cash, cash equivalents and restricted cash..................... | (30,507 ) | 4,837 | 9,406 |
Cash, cash equivalents and restricted cash at beginning of year................................ | 87,779 | 57,272 | 62,109 |
Cash, cash equivalents and restricted cash at end of year........................................... | $ 57,272 | $ 62,109 | $ 71,515 |
Supplemental Information | |||
Total interest paid during the year, net of amounts capitalized................................................... | $ 29,815 | $ 35,890 | $ 41,465 |
Total tax paid during the year...................................................................................................... | $ 601 | $ 515 | $ 176 |
IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
This Report on Form 6-K for the quarter ended December 31, 2018 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, contain forward-looking statements. 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 report. 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," or the negative of these terms or other comparable terminology. Forward-looking statements appear in a number of places in this report. These risks and uncertainties include, but are not limited to:
All forward-looking statements included in this Report on Form 6-K are made only as of the date of this Report on Form 6-K. 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.
Navigator Gas
Attention: Investor Relations Department
New York: 650 Madison Ave, New York, NY 10022. Tel: +1-212-355-5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20-7340-4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-fourth-quarter-and-financial-year-2018-results-300821632.html
SOURCE Navigator Gas
LONDON, March 13, 2019 /PRNewswire/ -- Navigator Holdings Ltd. ("Navigator") (NYSE: NVGS), the owner and operator of the world's largest fleet of handysize liquefied gas carriers, announced today that it will release its results for the three months and full year ended December 31, 2018 before market opens in New York on Monday, April 1, 2019.
On Monday, April 1, 2019 at 8:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Conference Call Details:
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238- 0669 (UK Toll Free Dial In) or +44 (0) 2071-928592 (Standard International Dial In). Please quote "Navigator" to the operator.
A telephonic replay of the conference call will be available until Monday, April 8, 2019, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333-009785 (Standard International Dial In). Access Code: 11870348#
Audio Webcast:
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
About Us
Navigator Holdings Ltd. 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. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet.
Navigator Gas
Attention: Investor Relations
New York:
650 Madison Ave,
25th Floor,
New York,
NY 10022
Tel: +1-212-355-5893
London:
10 Bressenden Place,
London,
SW1E 5DH
Tel: +44-(0)20-7340-4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-announces-date-for-the-release-of-fourth-quarter-and-full-year-2018-results-and-conference-call-300811729.html
SOURCE Navigator Gas
LONDON, Nov. 12, 2018 /PRNewswire/ --
Highlights
During the third quarter of 2018, we entered into two new time charters for niche LPG trade along the west coasts of South America and Africa, respectively. Additionally, we entered into a new charter for the transportation of two west coast Australia LPG cargoes to South East Asia. We also entered into a one-year renewal of the time charter with Algeria's state oil company at an approximate 30% increase in charter hire compared to the expiring charter rate. We believe these additional time charter commitments indicate a firming in utilization in the near term, as the market tightens and sentiment improves.
Long haul spot activity across the petrochemical segment (butadiene, crude C4, raffinate and butene-1) continued into the third quarter with cargoes emanating from North West Europe, the Eastern Mediterranean and from Brazil, into the U.S. Gulf markets with an increasing frequency. There were also long haul voyages to both the Middle East and to Far East Asia concluded from North Europe during this third quarter.
Long haul ethylene activity continued, though this was tempered by the shutdown for maintenance of the only existing U.S. export terminal at Targa, Houston, for the month of September 2018. This shortfall was taken up, however, by ethylene tons moving from North West Europe, the Mediterranean, the Red Sea and the Middle East. Petrochemical voyages achieved charter rates of up to approximately $22,000 per day during the third quarter, whereas rates for standard LPG transportation remained at approximately $15,000 per day. The majority of the assessed earnings estimates from third party brokers are improving across the entire gas carrier industry and the sentiment is positive going forward on the back of a reducing orderbook and incremental volume from infrastructure projects such as the Mariner East II pipeline system on the U.S. East Coast which is expected to become operational in December of this year followed by AltaGas Canada West Coast export terminal during the first quarter of 2019.
Reconciliation of Non-GAAP Financial Measures
The following table sets forth a reconciliation of net income to EBITDA for the three months ended September 30, 2017 and 2018:
(in thousands) | ||
September 30, | September 30, | |
Net (loss)/income | $ (1,093) | $ 623 |
Interest expense | 9,426 | 11,014 |
Interest income | (139) | (202) |
Income taxes | 102 | 137 |
Depreciation and amortization | 18,787 | 18,846 |
EBITDA | $ 27,083 | $ 30,418 |
[1] EBITDA is a non-GAAP financial measure. EBITDA represents net income before net interest expense, income taxes and depreciation and amortization. Management believes that EBITDA is useful to investors in evaluating the operating performance of the Company. EBITDA does not represent and should not be considered as an alternative to any financial measure prepared in accordance with U.S. GAAP, and our calculation of EBITDA may not be comparable to that reported by other companies. See the table above for a reconciliation of EBITDA to net (loss) income, our most directly comparable financial measure calculated accordance with U.S. GAAP.
Conference Call Details:
On Tuesday, November 13, 2018, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928 592 (Standard International Dial In). Please quote "Navigator" to the operator. There will also be a live, and then archived, webcast of the conference call, available through the Company's website (http://www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A telephonic replay of the conference call will be available until Tuesday, November 20, 2018, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009 785 (Standard International Dial In). Access Code: 11870348#
About Us
Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet.
FORWARD LOOKING STATEMENTS
Statements included in this press release concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto, including our financial forecast, contain forward-looking statements. 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," or the negative of these terms or other comparable terminology. These risks and uncertainties include, but are not limited to:
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.
Navigator Holdings Ltd. | ||
Condensed Consolidated Balance Sheets | ||
(Unaudited) | ||
December 31, | September 30, | |
(in thousands except share data) | ||
Assets | ||
Current assets | ||
Cash and cash equivalents | $ 62,109 | $ 50,458 |
Accounts receivable, net | 14,889 | 13,800 |
Accrued income | 15,791 | 6,817 |
Prepaid expenses and other current assets | 11,340 | 16,302 |
Bunkers and lubricant oils | 8,008 | 10,550 |
Total current assets | 112,137 | 97,927 |
Non-current assets | ||
Vessels in operation, net | 1,740,139 | 1,688,011 |
Investment in equity accounted joint venture | - | 25,994 |
Property, plant and equipment, net | 1,611 | 1,363 |
Total non-current assets | 1,741,750 | 1,715,368 |
Total assets | $ 1,853,887 | $ 1,813,295 |
Liabilities and stockholders' equity | ||
Current liabilities | ||
Current portion of secured term loan facilities, | $ 81,559 | $ 70,261 |
Accounts payable | 8,071 | 7,258 |
Accrued expenses and other liabilities | 12,478 | 16,669 |
Accrued interest | 3,500 | 1,779 |
Deferred income | 4,824 | 7,708 |
Total current liabilities | 110,432 | 103,675 |
Non-current liabilities | ||
Secured term loan facilities, net of current portion and | 681,658 | 651,918 |
Senior unsecured bond, net of deferred financing costs | 98,584 | 98,925 |
Total non-current liabilities | 780,242 | 750,843 |
Total liabilities | 890,674 | 854,518 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock-$.01 par value; 400,000,000 shares | 555 | 557 |
Additional paid-in capital | 589,436 | 590,199 |
Accumulated other comprehensive loss | (277 ) | (286 ) |
Retained earnings | 373,499 | 368,307 |
Total stockholders' equity | 963,213 | 958,777 |
Total liabilities and stockholders' equity | $ 1,853,887 | $ 1,813,295 |
Navigator Holdings Ltd. | ||||
Condensed Consolidated Statements of Income | ||||
(Unaudited) | ||||
Three months ended September 30, (in thousands except share data) | Nine months ended September 30, (in thousands except share data) | |||
2017 | 2018 | 2017 | 2018 | |
Revenues | ||||
Operating revenue | $ 70,211 | $ 80,843 | $ 221,911 | $ 231,813 |
Expenses | ||||
Brokerage commissions | 1,191 | 1,434 | 4,105 | 3,793 |
Voyage expenses | 12,246 | 17,251 | 40,761 | 46,158 |
Vessel operating expenses | 25,106 | 26,873 | 74,012 | 79,624 |
Depreciation and amortization | 18,787 | 18,846 | 54,725 | 57,256 |
General and administrative costs | 3,932 | 4,176 | 10,262 | 12,225 |
Other corporate expenses | 653 | 691 | 1,605 | 1,901 |
Total operating expenses | 61,915 | 69,271 | 185,470 | 200,957 |
Operating income | 8,296 | 11,572 | 36,441 | 30,856 |
Other income/(expense) | ||||
Interest expense | (9,426) | (11,014) | (27,724) | (32,891) |
Write off of deferred financing costs | - | - | (1,281) | - |
Write off of call premium and redemption charges on 9% unsecured bond | - | - | (3,517) | - |
Interest income | 139 | 202 | 371 | 561 |
(Loss)/income before income taxes | (991) | 760 | 4,290 | (1,474) |
Income taxes | (102) | (137) | (391) | (366) |
Net (loss)/income | $ (1,093) | $ 623 | $ 3,899 | $ (1,840) |
(Loss) / Earnings per share: | ||||
Basic: | $ (0.02) | $ 0.01 | $ 0.07 | $ (0.03) |
Diluted: | $ (0.02) | $ 0.01 | $ 0.07 | $ (0.03) |
Weighted average number of shares outstanding: | ||||
Basic: | 55,531,831 | 55,656,304 | 55,531,831 | 55,620,149 |
Diluted: | 55,531,831 | 56,000,240 | 55,877,163 | 55,620,149 |
Navigator Holdings Ltd. | ||
Condensed Consolidated Statements of Cash Flows | ||
(Unaudited) | ||
Nine Months ended | Nine Months ended | |
(in thousands) | (in thousands) | |
Cash flows from operating activities | ||
Net income/(loss) | $ 3,899 | $ (1,840) |
Adjustments to reconcile net income to net cash | ||
Depreciation and amortization | 54,725 | 57,256 |
Payment of drydocking costs | (401) | (4,875) |
Adjustment to equity for the adoption of the new revenue standard | - | (3,352) |
Call option premium on redemption of 9.00% unsecured bond | 2,500 | - |
Prior year expenses recovered in insurance claim | (504) | (776) |
Amortization of share-based compensation | 1,117 | 765 |
Amortization of deferred financing costs | 3,107 | 1,692 |
Unrealized foreign exchange | 243 | 39 |
Changes in operating assets and liabilities | ||
Accounts receivable | (10,090) | 1,089 |
Bunkers and lubricant oils | (570) | (2,542) |
Prepaid expenses and other current assets | (125) | 3,777 |
Accounts payable, accrued interest and other liabilities | (1,946) | 4,541 |
Net cash provided by operating activities | 51,955 | 55,774 |
Cash flows from investing activities | ||
Payment to acquire vessels | (1,112) | 69 |
Investment in equity accounted joint venture | - | (25,994) |
Payment for vessels under construction | (124,149) | - |
Purchase of other property, plant and equipment | (1,623) | (120) |
Receipt of shipyard penalty payments | 280 | - |
Insurance recoveries | 990 | 1,010 |
Placement of short term investment | (25,000) | - |
Net cash used in investing activities | (150,614) | (25,035) |
Cash flows from financing activities | ||
Proceeds from secured term loan facilities | 333,983 | 21,900 |
Issuance of 7.75% senior unsecured bonds | 100,000 | - |
Repayment of 9.00% senior unsecured bonds | (127,500) | - |
Issuance costs of 7.75% senior unsecured bonds | (1,819) | - |
Direct financing costs of senior term loan facilities | (2,054) | - |
Repayment of secured term loan facilities | (226,085) | (64,290) |
Net cash provided by/(used in) financing activities | 76,525 | (42,390) |
Net decrease in cash and cash equivalents | (22,134) | (11,651) |
Cash and cash equivalents at beginning of period | 57,272 | 62,109 |
Cash and cash equivalents at end of period | $ 35,138 | $ 50,458 |
Supplemental Information | ||
Total interest paid during the period, net of amounts capitalized | $ 22,108 | $ 33,438 |
Total tax paid during the period | $ 428 | $ 107 |
Navigator Gas
Attention: Investor Relations Department
New York: 650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1-212-355-5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-results-for-the-three-and-nine-months-ended-september-30-2018-300748611.html
SOURCE Navigator Gas
LONDON, Aug. 6, 2018 /PRNewswire/ --
Highlights
Fleet utilization was 90.3% during the second quarter of 2018, up from the 86.2% achieved during the second quarter of 2017, but slightly down on the 91.7% achieved during the first quarter of 2018. Petrochemical activity, particularly long-haul carriage of petrochemicals (butadiene, crude C4 and butene-1) from Europe to the U.S. Gulf of Mexico and Brazil to the Far East have been the primary factor behind this increase in utilization. Two handysize and two midsize vessels have been fully employed transporting ethane for the majority of the second quarter of 2018, trading from the U.S. to Central and South America as well as North West Europe. All five midsized gas carriers ("MGCs") in the fleet are now contracted to operate under time charters for the remainder of 2018.
However, the increase in utilization has been tempered by a continued low charter rate environment, compounded by an approximate 30% increase in bunker prices across the second quarter of 2018 as crude prices rise, translating to further reductions in charter rates achieved. Ethylene handysize vessels have returned to charter rates of approximately $25,000 per day during the second quarter, although rates for standard LPG transportation remained at approximately $15,000 per day. Energy Transfer Partners' Marcus Hook export facility remained offline for nearly all of the second quarter, which caused much disruption to the Atlantic's time charter business operators that rely on this facility.
Reconciliation of Non-GAAP Financial Measures
The following table sets forth a reconciliation of net income to EBITDA for the three months ended June 30, 2018:
(in thousands) | |
Net loss |
$ (3,159) |
Interest expense |
11,353 |
Interest income |
(207) |
Income taxes |
146 |
Depreciation and amortization |
19,029 |
EBITDA |
$ 27,162 |
1 EBITDA is a non-GAAP financial measure. EBITDA represents net income before net interest expense, income taxes and depreciation and amortization. Management believes that EBITDA is useful to investors in evaluating the operating performance of the Company. EBITDA does not represent and should not be considered as an alternative to any financial measure prepared in accordance with U.S. GAAP, and our calculation of EBITDA may not be comparable to that reported by other companies. See the table above for a reconciliation of EBITDA to net income (loss), our most directly comparable financial measure calculated accordance with U.S. GAAP.
A Form 6-K with more detailed information on our second quarter 2018 financial results is being filed with the U.S. Securities and Exchange Commission simultaneously with this release for the quarter ended June 30, 2018.
Conference Call Details:
Tomorrow, Tuesday, August 7, 2018, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928 592 (Standard International Dial In). Please quote "Navigator" to the operator. There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A telephonic replay of the conference call will be available until Tuesday, August 14th, 2018, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009 785 (Standard International Dial In). Access Code: 11870348#
About Us
Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet.
FORWARD LOOKING STATEMENTS
Statements included in this press release concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto, including our financial forecast, contain forward-looking statements. 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," or the negative of these terms or other comparable terminology. These risks and uncertainties include, but are not limited to:
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.
Navigator Holdings Ltd. | ||
Condensed Consolidated Balance Sheets | ||
(Unaudited) | ||
December 31, |
June 30, | |
(in thousands except share data) | ||
Assets |
||
Current assets |
||
Cash and cash equivalents |
$ 62,109 |
$ 55,096 |
Accounts receivable, net |
14,889 |
11,585 |
Accrued income |
15,791 |
5,031 |
Prepaid expenses and other current assets |
10,964 |
17,020 |
Bunkers and lubricant oils |
8,008 |
7,122 |
Insurance recoverable |
376 |
825 |
Total current assets |
112,137 |
96,679 |
Non-current assets |
||
Vessels in operation, net |
1,740,139 |
1,704,895 |
Investment in equity accounted joint venture |
— |
10,475 |
Property, plant and equipment, net |
1,611 |
1,466 |
Total non-current assets |
1,741,750 |
1,716,836 |
Total assets |
$ 1,853,887 |
$ 1,813,515 |
Liabilities and stockholders' equity |
||
Current liabilities |
||
Current portion of secured term loan facilities, net of deferred financing costs |
$ 81,559 |
$ 73,274 |
Accounts payable |
8,071 |
10,163 |
Accrued expenses and other liabilities |
12,478 |
14,105 |
Accrued interest |
3,500 |
3,466 |
Deferred income |
4,824 |
4,963 |
Total current liabilities |
110,432 |
105,971 |
Non-current liabilities |
||
Secured term loan facilities, net of current portion and deferred financing costs |
681,658 |
651,034 |
Senior unsecured bond, net of deferred financing costs |
98,584 |
98,812 |
Total non-current liabilities |
780,242 |
749,846 |
Total liabilities |
890,674 |
855,817 |
Commitments and contingencies (see note 9) |
||
Stockholders' equity |
||
Common stock—$.01 par value; 400,000,000 shares authorized; 55,656,304 shares issued and |
555 |
557 |
Additional paid-in capital |
589,436 |
589,800 |
Accumulated other comprehensive loss |
(277) |
(343) |
Retained earnings |
373,499 |
367,684 |
Total stockholders' equity |
963,213 |
957,698 |
Total liabilities and stockholders' equity |
$ 1,853,887 |
$ 1,813,515 |
Navigator Holdings Ltd. | ||||
Condensed Consolidated Statements of Income | ||||
(Unaudited) | ||||
Three months ended |
Six months ended | |||
June 30, |
June 30, | |||
(in thousands except share data) |
(in thousands except share data) | |||
2017 |
2018 |
2017 |
2018 | |
Revenues |
||||
Operating revenue |
$ 74,381 |
$ 73,163 |
$ 151,700 |
$ 150,970 |
Expenses |
||||
Brokerage commissions |
1,389 |
1,219 |
2,914 |
2,360 |
Voyage expenses |
13,516 |
13,930 |
28,515 |
28,908 |
Vessel operating expenses |
25,001 |
26,040 |
48,906 |
52,751 |
Depreciation and amortization |
18,304 |
19,029 |
35,938 |
38,410 |
General and administrative costs |
3,578 |
3,818 |
6,330 |
8,049 |
Other corporate expenses |
329 |
994 |
952 |
1,209 |
Total operating expenses |
62,117 |
65,030 |
123,555 |
131,687 |
Operating income |
12,264 |
8,133 |
28,145 |
19,283 |
Other income/(expense) |
||||
Interest expense |
(9,372) |
(11,353) |
(18,298) |
(21,877) |
Write off of deferred financing costs |
(627) |
— |
(1,281) |
— |
Write off of call premium and redemption charges on 9% |
— |
— |
(3,517) |
— |
Interest income |
119 |
207 |
232 |
359 |
Income/(loss) before income taxes |
2,384 |
(3,013) |
5,281 |
(2,235) |
Income taxes |
(130) |
(146) |
(289) |
(228) |
Net income/(loss) |
$ 2,254 |
$ (3,159) |
$ 4,992 |
$ (2,463) |
Earnings per share: |
||||
Basic: |
$ 0.04 |
$ (0.06) |
$ 0.09 |
$ (0.04) |
Diluted: |
$ 0.04 |
$ (0.06) |
$ 0.09 |
$ (0.04) |
Weighted average number of shares outstanding: |
||||
Basic: |
55,531,831 |
55,656,304 |
55,488,984 |
55,601,772 |
Diluted: |
55,905,571 |
55,656,304 |
55,862,724 |
55,601,772 |
Navigator Holdings Ltd. | ||
Condensed Consolidated Statements of Cash Flows | ||
(Unaudited) | ||
Six Months ended |
Six Months ended | |
(in thousands) |
(in thousands) | |
Cash flows from operating activities |
||
Net income/(loss) |
$ 4,992 |
$ (2,463) |
Adjustments to reconcile net income to net cash provided by operating activities |
||
Depreciation and amortization |
35,938 |
38,410 |
Payment of drydocking costs |
(33) |
(2,880) |
Adjustment to equity for the adoption of the new revenue standard |
— |
(3,352) |
Call option premium on redemption of 9.00% unsecured bond |
2,500 |
— |
Prior year expenses recovered in insurance claim |
(504) |
(754) |
Amortization of share-based compensation |
773 |
366 |
Amortization of deferred financing costs |
2,508 |
1,131 |
Unrealized foreign exchange |
155 |
(30) |
Changes in operating assets and liabilities |
||
Accounts receivable |
(6,091) |
3,392 |
Bunkers and lubricant oils |
(461) |
886 |
Prepaid expenses and other current assets |
(2,329) |
4,706 |
Accounts payable, accrued interest and other liabilities |
2,604 |
3,734 |
Net cash provided by operating activities |
40,052 |
43,146 |
Cash flows from investing activities |
||
Payment to acquire vessels |
(1,352) |
(79) |
Investment in equity accounted joint venture |
— |
(10,475) |
Payment for vessels under construction |
(97,147) |
— |
Purchase of other property, plant and equipment |
(1,506) |
(97) |
Receipt of shipyard penalty payments |
280 |
— |
Insurance recoveries |
991 |
305 |
Placement of short term investment |
(25,000) |
— |
Net cash used in investing activities |
(123,734) |
(10,346) |
Cash flows from financing activities |
||
Proceeds from secured term loan facilities |
142,508 |
3,800 |
Issuance of 7.75% senior unsecured bonds |
100,000 |
— |
Repayment of 9.00% senior unsecured bonds |
(127,500) |
— |
Issuance costs of 7.75% senior unsecured bonds |
(1,819) |
— |
Repayment of secured term loan facilities |
(57,981) |
(43,613) |
Net cash provided by/(used in) financing activities |
55,208 |
(39,813) |
Net decrease in cash and cash equivalents |
(28,474) |
(7,013) |
Cash and cash equivalents at beginning of period |
57,272 |
62,109 |
Cash and cash equivalents at end of period |
$ 28,798 |
$ 55,096 |
Supplemental Information |
||
Total interest paid during the period, net of amounts capitalized |
$ 15,799 |
$ 20,799 |
Total tax paid during the period |
$ 317 |
$ 52 |
Navigator Gas
Attention: Investor Relations Department
New York: 650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1-212-355-5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44(0)20-7340-4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-results-for-the-three-and-six-months-ended-june-30-2018-300692620.html
SOURCE Navigator Gas
LONDON, March 5, 2018 /PRNewswire/ --
Highlights
Fourth Quarter 2017 Financial Results Overview
Operating revenue for the three months ended December 31, 2017 was $76.7 million, an increase of $1.2 million, or 1.6%, compared to the $75.5 million of operating revenue for the three months ended December 31, 2016.
For the fourth quarter of 2017, the average time charter equivalent rate ("TCE") (2) across the entire fleet, including our fully-refrigerated vessels, was $626,161 per calendar month ($20,586 per day), compared to $692,213 per calendar month ($22,758 per day) for the comparable period in 2016.
Fleet utilization across the 38 vessels operating at the year end was 87.2% for the fourth quarter of 2017, down from 89.5% in the fourth quarter of 2016.
Operating revenue less voyage expenses amounted to $61.9 million for the three months ended December 31, 2017 compared to $61.5 million in the same three month period of 2016. This decrease was as a result of a reduction in TCE rates of $6.7 million, a reduction in utilization rates of $1.7 million, offset by an $8.8 million increase due to additional vessels in our fleet during the three months ended December 31, 2017 compared to the three months ended December 31, 2016.
Net income was $1.4 million for the three months ended December 31, 2017, or $0.03 per share compared to $7.6 million or $0.14 per share for the same period in 2016.
EBITDA(1) for the fourth quarter of 2017 was $29.6 million and $120.8 million for the full year ended December 31, 2017.
(1) EBITDA is not a measure calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). EBITDA represents net income before net interest expense, income taxes and depreciation and amortization. EBITDA is a basis upon which we assess our financial performance. We believe that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness, and it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. EBITDA does not represent and should not be considered as an alternative to consolidated net income or cash generated from operations, as determined by U.S. GAAP, and our calculation of EBITDA may not be comparable to that reported by other companies. See the table below for a reconciliation to the most directly comparable GAAP financial measure.
The following table sets forth a reconciliation of EBITDA to net income, the most directly comparable measure calculated in accordance with GAAP, for the periods presented:
Three months ended |
Year ended | |||
2016 |
2017 |
2016 |
2017 | |
Net income |
$ 7,646 |
$ 1,411 |
$ 44,638 |
$ 5,310 |
Net interest expense |
8,940 |
9,324 |
32,142 |
41,475 |
Income taxes |
575 |
6 |
1,177 |
397 |
Depreciation and amortization |
16,625 |
18,863 |
62,280 |
73,588 |
EBITDA |
$ 33,786 |
$ 29,604 |
$ 140,237 |
$ 120,770 |
(2) TCE rate is a non-GAAP financial measure. TCE rate is a measure of the average daily revenue performance of a vessel. TCE rate is a shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., time charters, voyage charters and contracts of affreightment, or "COAs") under which the vessels may be employed between the periods. Under a time charter, the charterer pays substantially all of the vessel voyage related expenses, whereas for voyage charters we pay all voyage expenses. We include average daily TCE rate, as we believe it provides additional meaningful information in conjunction with operating revenues less voyage expenses, because it assists our management in making decisions regarding the deployment and use of our vessels and in evaluating their financial performance. Our method of calculating TCE rate is to divide operating revenue (net of voyage expenses) by operating days for the relevant time period. See the table below for a reconciliation to the most directly comparable GAAP financial measure.
The following table represents a reconciliation of TCE rate to operating revenue, the most directly comparable financial measure calculated in accordance with GAAP, for the periods presented:
Three months ended |
Three months ended | |
Fleet Data: |
||
Operating revenue |
$ 75,455 |
$ 76,684 |
Voyage expenses |
13,914 |
14,781 |
Operating revenue less Voyage expenses |
61,541 |
61,903 |
Operating days |
2,704 |
3,007 |
Average daily time charter equivalent rate |
$ 22,758 |
$ 20,586 |
Conference Call Details:
Tomorrow, Tuesday, March 6, 2018, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). Please quote "Navigator" to the operator.
A telephonic replay of the conference call will be available until Tuesday, March 13, 2018 by dialing 1(866) 247-4222 (US Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or +44 (0)1452 550-000 (Standard International Dial In). Access Code: 11870348#
Audio Webcast:
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). 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
New York: |
650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1 212 355 5893 |
London: |
10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850 |
About Us
Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. We play a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable.
FORWARD LOOKING STATEMENTS
Statements included in this press release concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto, including our financial forecast, contain forward-looking statements. 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," or the negative of these terms or other comparable terminology. These risks and uncertainties include, but are not limited to:
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.
Navigator Holdings Ltd. | ||
Consolidated Balance Sheets | ||
(Unaudited) | ||
December 31, 2016 |
December 31, 2017 | |
(in thousands, except share data) | ||
Assets |
||
Current assets |
||
Cash and cash equivalents |
$ 57,272 |
$ 62,109 |
Accounts receivable, net |
7,059 |
14,889 |
Accrued income |
13,134 |
15,791 |
Prepaid expenses and other current assets |
8,541 |
10,964 |
Bunkers and lubricant oils |
6,937 |
8,008 |
Insurance recoverable |
855 |
376 |
Total current assets |
93,798 |
112,137 |
Non-current assets |
||
Vessels in operation, net |
1,480,359 |
1,740,139 |
Vessels under construction |
150,492 |
— |
Property, plant and equipment, net |
194 |
1,611 |
Total non-current assets |
1,631,045 |
1,741,750 |
Total assets |
$ 1,724,843 |
$ 1,853,887 |
Liabilities and stockholders' equity |
||
Current liabilities |
||
Current portion of secured term loan facilities, |
$ 78,464 |
$ 81,559 |
Senior unsecured bond |
25,000 |
— |
Accounts payable |
6,388 |
8,071 |
Accrued expenses and other liabilities |
11,377 |
12,478 |
Accrued interest |
2,932 |
3,500 |
Deferred income |
3,522 |
4,824 |
Total current liabilities |
127,683 |
110,432 |
Non-current Liabilities |
||
Secured term loan facilities, net of current portion |
540,680 |
681,658 |
Senior unsecured bond, net of deferred financing costs |
100,000 |
98,584 |
Total non-current liabilities |
640,680 |
780,242 |
Total Liabilities |
768,363 |
890,674 |
Commitments and contingencies (see note 12) |
||
Stockholders' equity |
||
Common stock—$.01 par value per share; |
554 |
555 |
Additional paid-in capital |
588,024 |
589,436 |
Accumulated other comprehensive loss |
(287 ) |
(277) |
Retained earnings |
368,189 |
373,499 |
Total stockholders' equity |
956,480 |
963,213 |
Total liabilities and stockholders' equity |
$ 1,724,843 |
$ 1,853,887 |
Navigator Holdings Ltd. | ||||||||
Consolidated Statements of Income | ||||||||
(Unaudited) | ||||||||
Three months ended |
Year ended | |||||||
December 31, |
December 31, | |||||||
(in thousands except share and per share data) |
(in thousands except share and per share data) | |||||||
2016 |
2017 |
2016 |
2017 | |||||
Revenues |
||||||||
Operating revenue |
$ |
75,455 |
$ |
76,684 |
$ |
294,112 |
$ |
298,595 |
Expenses |
||||||||
Brokerage commissions |
1,430 |
1,263 |
5,812 |
5,368 | ||||
Voyage expenses |
13,914 |
14,781 |
42,201 |
55,542 | ||||
Vessel operating expenses |
22,611 |
26,956 |
90,854 |
100,968 | ||||
Depreciation and amortization |
16,625 |
18,863 |
62,280 |
73,588 | ||||
General and administrative costs |
3,348 |
3,554 |
12,528 |
13,816 | ||||
Other corporate expenses |
366 |
526 |
1,976 |
2,131 | ||||
Insurance recoverable from vessel repairs |
- |
- |
504 |
- | ||||
Total operating expenses |
58,294 |
65,943 |
216,155 |
251,413 | ||||
Operating income |
17,161 |
10,741 |
77,957 |
47,182 | ||||
Other income/(expense) |
||||||||
Interest expense |
(8,879) |
(9,967) |
(32,321) |
(37,691) | ||||
Write off of deferred finance costs |
(102) |
495 |
(102) |
(786) | ||||
Write off of call premium and redemption charges of 9.00% unsecured bond |
- |
- |
- |
(3,517) | ||||
Interest income |
41 |
148 |
281 |
519 | ||||
Income before income taxes |
8,221 |
1,417 |
45,815 |
5,707 | ||||
Income taxes |
(575) |
(6) |
(1,177) |
(397) | ||||
Net income |
$ |
7,646 |
$ |
1,411 |
$ |
44,638 |
$ |
5,310 |
Earnings per share: |
||||||||
Basic: |
$ |
0.14 |
$ |
0.03 |
$ |
0.81 |
$ |
0.10 |
Diluted: |
$ |
0.14 |
$ |
0.03 |
$ |
0.80 |
$ |
0.10 |
Weighted average number of shares outstanding: |
||||||||
Basic: |
55,436,087 |
55,529,762 |
55,418,626 |
55,508,974 | ||||
Diluted: |
55,810,365 |
55,898,502 |
55,794,481 |
55,881,454 | ||||
Navigator Holdings Ltd. | |||||||||||||||
Consolidated Statements of Comprehensive Income | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended |
Year ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
(in thousands) |
(in thousands) | ||||||||||||||
2016 |
2017 |
2016 |
2017 | ||||||||||||
Net income |
$ |
7,646 |
$ |
1,411 |
$ |
44,638 |
$ |
5,310 | |||||||
Other Comprehensive Income: |
|||||||||||||||
Foreign currency translation gain/(loss) |
114 |
(242) |
178 |
10 | |||||||||||
Total Comprehensive Income |
7,760 |
1,169 |
44,816 |
5,320 | |||||||||||
Consolidated Statements of Stockholders' Equity | ||||||
(Unaudited) | ||||||
(in thousands, except share data) | ||||||
Common stock |
||||||
Number of |
Amount 0.01 |
Additional |
Accumulated |
Retained |
Total | |
January 1, 2015 |
55,346,613 |
553 |
584,808 |
(254 ) |
225,457 |
$ 810,564 |
Restricted shares issued March 17, 2015 |
16,854 |
1 |
— |
— |
— |
1 |
Net income |
— |
— |
— |
— |
98,094 |
98,094 |
Foreign currency translation |
— |
— |
— |
(211 ) |
— |
(211 ) |
Share-based compensation plan |
— |
— |
1,643 |
— |
— |
1,643 |
December 31, 2015 |
55,363,467 |
$ 554 |
$ 586,451 |
$ (465 ) |
$ 323,551 |
$ 910,091 |
Restricted shares issued March 29, 2016 |
72,620 |
— |
— |
— |
— |
— |
Net income |
— |
— |
— |
— |
44,638 |
44,638 |
Foreign currency translation |
— |
— |
— |
178 |
— |
178 |
Share-based compensation plan |
— |
— |
1,573 |
— |
— |
1,573 |
December 31, 2016 |
55,436,087 |
$ 554 |
$ 588,024 |
$ (287 ) |
$ 368,189 |
$ 956,480 |
Restricted shares issued March 23, 2017 |
93,675 |
1 |
— |
— |
— |
1 |
Net income |
— |
— |
— |
— |
5,310 |
5,310 |
Foreign currency translation |
— |
— |
— |
10 |
— |
10 |
Share-based compensation plan |
— |
— |
1,412 |
— |
— |
1,412 |
December 31, 2017 |
55,529,762 |
$ 555 |
$ 589,436 |
$ (277) |
$373,499 |
$ 963,213 |
Navigator Holdings Ltd. | ||
Consolidated Statements of Cash Flows | ||
(Unaudited) | ||
Year ended |
Year ended | |
Cash flows from operating activities |
||
Net income |
$ 44,638 |
$ 5,310 |
Adjustments to reconcile net income |
||
Depreciation and amortization |
62,280 |
73,588 |
Payment of drydocking costs |
(9,902) |
(268) |
Amortization of share-based compensation |
1,573 |
1,412 |
Amortization of deferred financing costs |
3,091 |
3,217 |
Call option premium on redemption of 9.00% unsecured bond |
— |
2,500 |
Prior year expenses recovered from insurance claim |
— |
(504) |
Insurance claim debtor |
60 |
(7) |
Unrealized foreign exchange |
208 |
3 |
Changes in operating assets and liabilities |
||
Accounts receivable |
1,991 |
(7,831) |
Bunkers and lubricant oils |
(3,457) |
(1,074) |
Prepaid expenses and other current assets |
(7,694) |
(5,079) |
Accounts payable, accrued interest and other liabilities |
(6,040) |
4,654 |
Net cash provided by operating activities |
86,748 |
75,921 |
Cash flows from investing activities |
||
Payment to acquire vessels |
(1,733) |
(1,940) |
Payment for vessels under construction |
(239,179 ) |
(180,629 ) |
Purchase of other property, plant and equipment |
(75 ) |
(1,726) |
Receipt of shipyard penalty payments |
1,901 |
280 |
Placement of short term investment |
— |
(25,000) |
Release of short term investment |
— |
25,000 |
Insurance recoveries |
9,374 |
990 |
Capitalized costs for the repair of Navigator Aries |
(8,441 ) |
— |
Net cash used in investing activities |
(238,153) |
(183,025) |
Cash flows from financing activities |
||
Proceeds from secured term loan facilities |
327,670 |
395,170 |
Issuance of 7.75% senior unsecured bonds |
— |
100,000 |
Repayment of 9.00% senior unsecured bonds |
— |
(127,500 ) |
Issuance cost of 7.75% senior unsecured bonds |
— |
(1,819 ) |
Direct financing cost of secured term loan facilities |
(2,680 ) |
(2,058) |
Repayment of secured term loan facilities |
(204,092 ) |
(251,852) |
Net cash provided by financing activities |
120,898 |
111,941 |
Net (decrease) / increase in cash and cash equivalents |
(30,507) |
4,837 |
Cash and cash equivalents at beginning of year |
87,779 |
57,272 |
Cash and cash equivalents at end of year |
$ 57,272 |
$ 62,109 |
Supplemental Information |
||
Total interest paid during the year, net of amounts capitalized |
$ 29,815 |
$ 35,890 |
Total tax paid during the year |
$ 601 |
$ 515 |
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-fourth-quarter-and-financial-year-2017-results-300608426.html
SOURCE Navigator Gas
LONDON, Nov. 8, 2017 /PRNewswire/ --
Highlights
Charter revenue from spot voyages remained significantly focused on the petrochemical sector, with the transportation of petrochemicals accounting for 96% of our spot revenue for the three months ended September 30, 2017. Typically, the summer months offer fewer opportunities in the LPG freight markets as was the case during the summer of 2017, which reflect a continuing lack of LPG and petrochemical arbitrage between producing and consuming areas. Our charter rates achieved during the quarter reflect a premium to those available to the general market as a result of our strategic positioning of seeking a mixed portfolio of customers and charter durations across the gas spectrum of LPG, petrochemicals and ammonia.
We delivered our first 38,000 cbm fully-refrigerated ammonia carrier to our partner, Office Cherifien des Phosphates ("OCP") on August 22, 2017, commencing a ten year time charter facilitating the transportation of ammonia from Europe and the U.S. to Morocco. We are also now discussing charter and contract of affreightment renewals with a number of charterers for at least eight vessels with contracts maturing over the coming months.
1 EBITDA is a non-GAAP financial measures. EBITDA represents net income before net interest expense, income taxes and depreciation and amortization. Management believes that EBITDA is useful to investors in evaluating the operating performance of the Company. EBITDA does not represent and should not be considered as an alternative to any financial measure prepared in accordance with U.S. GAAP, and our calculation of EBITDA may not be comparable to that reported by other companies. See the table below for a reconciliation of EBITDA to net income, our most directly comparable financial measure calculated accordance with U.S. GAAP.
Reconciliation of Non-GAAP Financial Measures
The following table sets forth a reconciliation of net income to EBITDA for the three months ended September 30, 2017:
$'000's
| |
Net loss |
$ (1,093) |
Interest expense |
9,426 |
Interest income |
(139) |
Income taxes |
102 |
Depreciation and amortization |
18,787 |
EBITDA |
$ 27,083 |
A Form 6-K with more detailed information on our third quarter 2017 financial results is being filed with the U.S. Securities and Exchange Commission simultaneous with this release for the quarter ended September 30, 2017.
Conference Call Details:
Tomorrow, Thursday, November 9, 2017, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). Please quote "Navigator" to the operator.
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A telephonic replay of the conference call will be available until Thursday, November 16, 2017 by dialing 1(866) 247-4222 (US Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or +44 (0)1452 550-000 (Standard International Dial In). Access Code: 11870348#
Navigator Gas
About Us
Navigator Gas is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and provides international and regional seaborne transportation services of liquefied petroleum gas, petrochemical gases and ammonia for energy companies, industrial users and commodity traders. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers.
FORWARD LOOKING STATEMENTS
Statements included in this press release concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto, including our financial forecast, contain forward-looking statements. 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," or the negative of these terms or other comparable terminology. These risks and uncertainties include, but are not limited to:
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.
Navigator Holdings Ltd. | ||
Consolidated Balance Sheets | ||
(Unaudited) | ||
December 31,
|
September 30,
| |
(in thousands except share data) | ||
Assets |
||
Current assets |
||
Cash and cash equivalents |
$ 57,272 |
$ 35,138 |
Short-term investments |
— |
25,000 |
Accounts receivable, net |
7,059 |
17,149 |
Accrued income |
13,134 |
10,250 |
Prepaid expenses and other current assets |
8,541 |
11,552 |
Bunkers and lubricant oils |
6,937 |
7,507 |
Insurance recoverable |
855 |
370 |
Total current assets |
93,798 |
106,966 |
Non-current assets |
||
Vessels in operation, net |
1,480,359 |
1,673,139 |
Vessels under construction |
150,492 |
28,591 |
Property, plant and equipment, net |
194 |
1,605 |
Total non-current assets |
1,631,045 |
1,703,335 |
Total assets |
$ 1,724,843 |
$ 1,810,301 |
Liabilities and stockholders' equity |
||
Current liabilities |
||
Current portion of long-term debt, net of deferred financing costs |
$ 78,464 |
$ 85,011 |
Senior unsecured bond |
25,000 |
— |
Accounts payable |
6,388 |
8,057 |
Accrued expenses and other liabilities |
11,377 |
11,208 |
Accrued interest |
2,932 |
1,577 |
Deferred income |
3,522 |
1,432 |
Total current liabilities |
127,683 |
107,285 |
Non-current liabilities |
||
Secured term loan facilities, net of current portion and deferred financing costs |
540,680 |
641,266 |
Senior unsecured bond |
100,000 |
100,000 |
Total non-current liabilities |
640,680 |
741,266 |
Total liabilities |
768,363 |
848,551 |
Commitments and contingencies (see note 9) |
||
Stockholders' equity |
||
Common stock—$.01 par value; 400,000,000 shares authorized; |
554 |
555 |
Additional paid-in capital |
588,024 |
589,142 |
Accumulated other comprehensive loss |
(287) |
(35) |
Retained earnings |
368,189 |
372,088 |
Total stockholders' equity |
956,480 |
961,750 |
Total liabilities and stockholders' equity |
$ 1,724,843 |
$ 1,810,301 |
Navigator Holdings Ltd. | ||||
Consolidated Statements of Income | ||||
(Unaudited) | ||||
Three months ended |
Nine months ended | |||
2016 |
2017 |
2016 |
2017 | |
Revenues |
||||
Operating revenue |
$ 69,741 |
$ 70,211 |
$ 218,657 |
$ 221,911 |
Expenses |
||||
Brokerage commissions |
1,372 |
1,191 |
4,382 |
4,105 |
Voyage expenses |
11,869 |
12,246 |
28,287 |
40,761 |
Vessel operating expenses |
22,126 |
25,106 |
68,243 |
74,012 |
Depreciation and amortization |
15,804 |
18,787 |
45,655 |
54,725 |
General and administrative costs |
3,120 |
3,932 |
9,180 |
10,262 |
Other corporate expenses |
377 |
653 |
1,610 |
1,605 |
Write off of insurance claim receivable |
504 |
— |
504 |
— |
Total operating expenses |
55,172 |
61,915 |
157,861 |
185,470 |
Operating income |
14,569 |
8,296 |
60,796 |
36,441 |
Other income/(expense) |
||||
Interest expense |
(7,957) |
(9,426) |
(23,442) |
(27,724) |
Write off of deferred financing costs |
— |
— |
— |
(1,281) |
Write off of call premium and redemption charges on 9% unsecured bond |
— |
— |
— |
(3,517) |
Interest income |
71 |
139 |
240 |
371 |
Income/(Loss) before income taxes |
6,683 |
(991) |
37,594 |
4,290 |
Income taxes |
(207) |
(102) |
(602) |
(391) |
Net income/(Loss |
$ 6,476 |
$ (1,093) |
$ 36,992 |
$ 3,899 |
Earnings/(Loss) per share: |
||||
Basic |
$ 0.12 |
$ (0.02) |
$ 0.67 |
$ 0.07 |
Diluted |
$ 0.12 |
$ (0.02) |
$ 0.66 |
$ 0.07 |
Weighted average number of shares outstanding: |
||||
Basic |
55,437,695 |
55,531,831 |
55,413,855 |
55,531,831 |
Diluted |
55,812,935 |
55,905,571 |
55,790,240 |
55,877,163 |
Navigator Holdings Ltd. | ||
Consolidated Statements of Cash Flows | ||
(Unaudited) | ||
Nine Months ended
|
Nine Months ended
| |
(in thousands) |
(in thousands) | |
Cash flows from operating activities |
||
Net income |
$ 36,992 |
$ 3,899 |
Adjustments to reconcile net income to net cash provided by operating activities |
||
Depreciation and amortization |
45,655 |
54,725 |
Payment of drydocking costs |
(9,729) |
(401) |
Insurance claim debtor |
167 |
— |
Call option premium on redemption of 9.00% unsecured bond |
— |
2,500 |
Prior year expenses recovered in insurance claim |
— |
(504) |
Amortization of share-based compensation |
1,186 |
1,117 |
Amortization of deferred financing costs |
2,233 |
3,107 |
Unrealized foreign exchange |
84 |
243 |
Changes in operating assets and liabilities |
||
Accounts receivable |
(1,586) |
(10,090) |
Bunkers and lubricant oils |
(3,269) |
(570) |
Accrued income and prepaid expenses and other current assets |
(5,009) |
(125) |
Accounts payable, accrued interest and other liabilities |
(7,970 ) |
(1,946 ) |
Net cash provided by operating activities |
58,754 |
51,955 |
Cash flows from investing activities |
||
Payment to acquire vessels |
(1,372) |
(1,112) |
Payment for vessels under construction |
(158,403) |
(124,149) |
Purchase of other property, plant and equipment |
(42) |
(1,623) |
Receipt of shipyard penalty payments |
417 |
280 |
Insurance recoveries |
4,700 |
990 |
Capitalized costs for the repairs of Navigator Aries |
(8,732) |
— |
Placement of short term investment |
— |
(25,000) |
Net cash used in investing activities |
(163,432) |
(150,614) |
Cash flows from financing activities |
||
Proceeds from secured term loan facilities |
116,970 |
333,983 |
Issuance of 7.75% senior unsecured bonds |
— |
100,000 |
Repayment of 9.00% senior unsecured bonds |
— |
(127,500) |
Issuance costs of 7.75% senior unsecured bonds |
— |
(1,819) |
Direct financing costs of senior term loan facilities |
(155) |
(2,054) |
Repayment of secured term loan facilities |
(50,069) |
(226,085) |
Net cash provided by financing activities |
66,746 |
76,525 |
Net decrease in cash and cash equivalents |
(37,932) |
(22,134) |
Cash and cash equivalents at beginning of period |
87,779 |
57,272 |
Cash and cash equivalents at end of period |
$ 49,847 |
$ 35,138 |
Supplemental Information |
||
Total interest paid during the period, net of amounts capitalized |
$ 21,997 |
$ 22,108 |
Total tax paid during the period |
$ 454 |
$ 428 |
Attention: Investor Relations
New York: 650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1-212-355-5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44(0)20-7340-4850
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-third-quarter-2017-results-300552247.html
SOURCE Navigator Gas
LONDON, Aug. 7, 2017 /PRNewswire/ --
Highlights
Charter revenue for the three months ended June 30, 2017 remained significantly focused around the petrochemical sector, as was the case during the first quarter of 2017. The petrochemical contracts of affreightment we hold for transporting ethylene from the U.S. and a broad spectrum of olefins from Brazil have been active. We have also entered into two time charters for two of our fully-refrigerated vessels during the second quarter of 2017, with one vessel transporting LPG to Mexico and the other transporting LPG to southern Africa, a new market for us. Such commitments, along with our other time charters, have provided support to our business in a period when the LPG segment continues to experience headwinds. Earnings across all LPG shipping segments continue to be weak, with the Very Large Gas Carrier Baltic index reaching a floor at $6,000 earnings per day. Uncertainties with the geographical location, timings and quantities of usual petrochemical supplies from the Middle East and Europe have limited spot activity for our voyage charter vessels during the three months ended June 30, 2017.
Going into the second half of the year, we are committed to transport incremental ethylene volume from Europe to Asia on two of our ethylene capable vessels and in addition we will deliver two separate ethylene vessels to Braskem on three year charters for the commencement of their ethane contracts. We believe that these two contracts, combined with existing charter commitments, will help support fleet employment and utilization for the second half of 2017.
1 EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA represents net income before net interest expense, income taxes and depreciation and amortization. Adjusted EBITDA represents net income before net interest expense, income taxes, depreciation and amortization and the write off of deferred financing costs. 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 as alternatives to any financial 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. See the table below for a reconciliation of EBITDA and Adjusted EBITDA to net income, our most directly comparable financial measure calculated accordance with U.S. GAAP.
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, 2017:
$ '000's | |
Net income |
$ 2,254 |
Interest expense |
9,372 |
Interest income |
(119 ) |
Income taxes |
130 |
Depreciation and amortization |
18,304 |
EBITDA |
$ 29,941 |
Write off of deferred financing costs |
627 |
Adjusted EBITDA |
$ 30,568 |
A Form 6-K with more detailed information on our second quarter 2017 financial results is being filed with the U.S. Securities and Exchange Commission simultaneous with this release for the quarter ended June 30, 2017.
Conference Call Details:
Tomorrow, Tuesday, August 8, 2017, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). Please quote "Navigator" to the operator.
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A telephonic replay of the conference call will be available until Tuesday, August 15, 2017 by dialing 1(866) 247-4222 (US Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or +44 (0)1452 550-000 (Standard International Dial In). Access Code: 11870348#
Navigator Gas
Attention: Investor Relations
New York: 650 Madison Ave, 25th Floor, New York, NY 10022. Tel: +1 212 355 5893
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
About Us
Navigator Gas is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and provides international and regional seaborne transportation services of liquefied petroleum gas, petrochemical gases and ammonia for energy companies, industrial users and commodity traders. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, including one newbuilding scheduled for delivery by the end of October 2017.
FORWARD LOOKING STATEMENTS
Statements included in this press release concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto, including our financial forecast, contain forward-looking statements. 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," or the negative of these terms or other comparable terminology. These risks and uncertainties include, but are not limited to:
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.
Navigator Holdings Ltd | ||
Consolidated Balance Sheets | ||
(Unaudited) | ||
December 31, 2016 |
June 30, 2017 | |
(in thousands except share data) | ||
Assets |
||
Current assets |
||
Cash and cash equivalents |
$ 57,272 |
$ 28,798 |
Short-term investments |
— |
25,000 |
Accounts receivable, net |
7,059 |
13,150 |
Accrued income |
13,134 |
12,688 |
Prepaid expenses and other current assets |
8,541 |
11,317 |
Bunkers and lubricant oils |
6,937 |
7,398 |
Insurance recoverable |
855 |
370 |
Total current assets |
93,798 |
98,721 |
Non-current assets |
||
Vessels in operation, net |
1,480,359 |
1,638,217 |
Vessels under construction |
150,492 |
55,077 |
Property, plant and equipment, net |
194 |
1,578 |
Total non-current assets |
1,631,045 |
1,694,872 |
Total assets |
$ 1,724,843 |
$ 1,793,593 |
Liabilities and stockholders' equity |
||
Current liabilities |
||
Current portion of long-term debt, net of deferred financing costs |
$ 78,464 |
$ 71,959 |
Senior unsecured bond |
25,000 |
— |
Accounts payable |
6,388 |
7,889 |
Accrued expenses and other liabilities |
11,377 |
10,578 |
Accrued interest |
2,932 |
4,917 |
Deferred income |
3,522 |
3,438 |
Total current liabilities |
127,683 |
98,781 |
Non-current liabilities |
||
Secured term loan facilities, net of current portion and deferred financing costs |
540,680 |
632,401 |
Senior unsecured bond |
100,000 |
100,000 |
Total non-current liabilities |
640,680 |
732,401 |
Total liabilities |
768,363 |
831,182 |
Commitments and contingencies (see note 9) |
||
Stockholders' equity |
||
Common stock—$.01 par value; 400,000,000 shares authorized; |
554 |
555 |
Additional paid-in capital |
588,024 |
588,797 |
Accumulated other comprehensive loss |
(287 ) |
(122 ) |
Retained earnings |
368,189 |
373,181 |
Total stockholders' equity |
956,480 |
962,411 |
Total liabilities and stockholders' equity |
$ 1,724,843 |
$ 1,793,593 |
Navigator Holdings Ltd |
||||||||||||||||||||
Consolidated Statements of Income |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
Three months ended |
Six months ended |
|||||||||||||||||||
June 30, |
June 30, |
|||||||||||||||||||
(in thousands except share data) |
(in thousands except share data) |
|||||||||||||||||||
2016 |
2017 |
2016 |
2017 |
|||||||||||||||||
Revenues |
||||||||||||||||||||
Operating revenue |
$ |
72,541 |
$ |
74,381 |
$ |
148,916 |
$ |
151,700 |
||||||||||||
Expenses |
||||||||||||||||||||
Brokerage commissions |
1,508 |
1,389 |
3,009 |
2,914 |
||||||||||||||||
Voyage expenses |
9,326 |
13,516 |
16,419 |
28,515 |
||||||||||||||||
Vessel operating expenses |
23,712 |
25,001 |
46,117 |
48,906 |
||||||||||||||||
Depreciation and amortization |
15,275 |
18,304 |
29,851 |
35,938 |
||||||||||||||||
General and administrative costs |
3,103 |
3,578 |
6,060 |
6,330 |
||||||||||||||||
Other corporate expenses |
683 |
329 |
1,233 |
952 |
||||||||||||||||
Total operating expenses |
53,607 |
62,117 |
102,689 |
123,555 |
||||||||||||||||
Operating income |
18,934 |
12,264 |
46,227 |
28,145 |
||||||||||||||||
Other income/(expense) |
||||||||||||||||||||
Interest expense |
(7,702) |
(9,372) |
(15,485) |
(18,298) |
||||||||||||||||
Write off of deferred financing costs |
- |
(627) |
- |
(1,281) |
||||||||||||||||
Write off of call premium and redemption charges on 9% unsecured bond |
- |
- |
- |
(3,517) |
||||||||||||||||
Interest income |
91 |
119 |
169 |
232 |
||||||||||||||||
Income before income taxes |
11,323 |
2,384 |
30,911 |
5,281 |
||||||||||||||||
Income taxes |
(202) |
(130) |
(396) |
(289) |
||||||||||||||||
Net income |
$ |
11,121 |
$ |
2,254 |
$ |
30,515 |
$ |
4,992 |
||||||||||||
Earnings per share: |
||||||||||||||||||||
Basic: |
$ |
0.20 |
$ |
0.04 |
$ |
0.55 |
$ |
0.09 |
||||||||||||
Diluted: |
$ |
0.20 |
$ |
0.04 |
$ |
0.55 |
$ |
0.09 |
||||||||||||
Weighted average number of shares outstanding: |
||||||||||||||||||||
Basic: |
55,437,695 |
55,531,831 |
55,401,805 |
55,488,984 |
||||||||||||||||
Diluted: |
55,812,935 |
55,905,571 |
55,778,768 |
55,862,724 |
||||||||||||||||
Navigator Holdings Ltd | ||
Consolidated Statements of Cash Flows | ||
(Unaudited) | ||
Six Months ended June 30, 2016 |
Six Months ended June 30, 2017 | |
(in thousands) |
(in thousands) | |
Cash flows from operating activities |
||
Net income |
$ 30,515 |
$ 4,992 |
Adjustments to reconcile net income to net cash |
||
Depreciation and amortization |
29,851 |
35,938 |
Payment of drydocking costs |
(7,309 ) |
(33) |
Insurance claim debtor |
(292 ) |
— |
Call option premium on redemption of 9.00% unsecured bond |
— |
2,500 |
Prior year expenses recovered in insurance claim |
— |
(504) |
Amortization of share-based compensation |
787 |
773 |
Amortization of deferred financing costs |
1,471 |
2,508 |
Unrealized foreign exchange |
25 |
155 |
Changes in operating assets and liabilities |
||
Accounts receivable |
(243 ) |
(6,091 ) |
Inventories |
(2,334) |
(461 ) |
Accrued income and prepaid expenses and other current assets |
(10,092 ) |
(2,329 ) |
Accounts payable, accrued interest and other liabilities |
(3,336) |
2,604 |
Net cash provided by operating activities |
39,043 |
40,052 |
Cash flows from investing activities |
||
Payment to acquire vessels |
(1,141) |
(1,352 ) |
Payment for vessels under construction |
(84,665 ) |
(97,147 ) |
Purchase of other property, plant and equipment |
(25 ) |
(1,506 ) |
Receipt of shipyard penalty payments |
417 |
280 |
Insurance recoveries |
4,700 |
991 |
Capitalized costs for the repairs of Navigator Aries |
(8,732 ) |
— |
Placement of short term investment |
— |
(25,000 ) |
Net cash used in investing activities |
(89,446) |
(123,734 ) |
Cash flows from financing activities |
||
Proceeds from secured term loan facilities |
62,300 |
142,508 |
Issuance of 7.75% senior unsecured bonds |
— |
100,000 |
Repayment of 9.00% senior unsecured bonds |
— |
(127,500 ) |
Issuance costs of 7.75% senior unsecured bonds |
— |
(1,819 ) |
Direct financing costs of senior term loan facilities |
(155 ) |
— |
Repayment of secured term loan facilities |
(32,658 ) |
(57,981 ) |
Net cash provided by financing activities |
29,487 |
55,208 |
Net decrease in cash and cash equivalents |
(20,916 ) |
(28,474 ) |
Cash and cash equivalents at beginning of period |
87,779 |
57,272 |
Cash and cash equivalents at end of period |
$ 66,863 |
$ 28,798 |
Supplemental Information |
||
Total interest paid during the period, net of amounts capitalized |
$ 16,193 |
$ 15,799 |
Total tax paid during the period |
$ 370 |
$ 317 |
View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-second-quarter-2017-results-300500495.html
SOURCE Navigator Gas
LONDON, Mar. 1, 2017 /PRNewswire/ --
Highlights
Fourth Quarter 2016 Financial Results Overview
Operating revenue for the three months ended December 31, 2016 was $75.5 million, a decrease of $3.2 million, or 4.1%, compared to the $78.7 million of operating revenue for the three months ended December 31, 2015. This decrease was due to a softening of the LPG seaborne transportation market.
For the fourth quarter of 2016, the average time charter equivalent rate ("TCE") (2) across the entire fleet, including our fully-refrigerated vessels, was $692,213 per calendar month ($22,758 per day), compared to $921,069 per calendar month ($30,282 per day) for the comparable period in 2015.
Fleet utilization across the 33 vessels operating at the year end was 89.5% for the fourth quarter of 2016, up from 88.1% in the third quarter of 2016, but a reduction from 92.7% for the fourth quarter of 2015. This decrease from last year was primarily due to weaker demand for our vessels as a result of the softening of the LPG seaborne transportation market during the second half of 2016, leading to an increase in the number of idle days.
Operating revenue less voyage expenses amounted to $61.5 million for the three months ended December 31, 2016 compared to $72.3 million in the same three month period of 2015. This decrease was as a result of a reduction in TCE rates by $21.1 million, a reduction in utilization rates by $2.2 million, offset by a $12.5 increase due to additional vessels in our fleet during the three months ended December 31, 2016 compared to the three months ended December 31, 2015
Net income was $7.6 million for the three months ended December 31, 2016, or $0.14 per share compared to $23.8 million or $0.43 per share for the same period in 2015.
EBITDA(1) for the fourth quarter of 2016 was $33.8 million and $140.2 million for the full year ended December 31, 2016.
(1) EBITDA is not a measure calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). EBITDA represents net income before net interest expense, income taxes and depreciation and amortization. EBITDA is a basis upon which we assess our financial performance. We believe that it presents useful information to investors regarding a company's ability to service and/or incur indebtedness, and it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. EBITDA does not represent and should not be considered as an alternative to consolidated net income or cash generated from operations, as determined by U.S. GAAP, and our calculation of EBITDA may not be comparable to that reported by other companies. See the table below for a reconciliation to the most directly comparable GAAP financial measure.
The following table sets forth a reconciliation of EBITDA to net income, the most directly comparable measure calculated in accordance with GAAP, for the periods presented:
Three months ended
|
Year ended
| |||
2015
|
2016
|
2015
|
2016
| |
Net income................................................................................................................................................................................................................................. |
$ 23,821 |
$ 7,646 |
$ 98,094 |
$ 44,638 |
Net interest expense................................................................................................................................................................................................................................ |
7,103 |
8,940 |
29,730 |
32,142 |
Income taxes..................................................................................................................................................................................................................................... |
190 |
575 |
800 |
1,177 |
Depreciation and amortization....................................................................................................................................................................................................................... |
14,515 |
16,625 |
53,453 |
62,280 |
EBITDA................................................................................................................................................................................................................................... |
$ 45,629 |
$ 33,786 |
$ 182,077 |
$ 140,237 |
(2) TCE rate is a non-GAAP financial measure. TCE rate is a measure of the average daily revenue performance of a vessel. TCE rate is a shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types (i.e., time charters, voyage charters and contracts of affreightment, or "COAs") under which the vessels may be employed between the periods. Under a time charter, the charterer pays substantially all of the vessel voyage related expenses, whereas for voyage charters we pay all voyage expenses. We include average daily TCE rate, as we believe it provides additional meaningful information in conjunction with operating revenues less voyage expenses, because it assists our management in making decisions regarding the deployment and use of our vessels and in evaluating their financial performance. Our method of calculating TCE rate is to divide operating revenue (net of voyage expenses) by operating days for the relevant time period. See the table below for a reconciliation to the most directly comparable GAAP financial measure.
The following table represents a reconciliation of TCE rate to operating revenue, the most directly comparable financial measure calculated in accordance with GAAP, for the periods presented:
Three months ended
|
Three months ended
| |
Fleet Data: |
||
Operating revenue.......................................................... |
$ 78,670 |
$ 75,455 |
Voyage expenses........................................................... |
6,325 |
13,914 |
Operating revenue less Voyage expenses.................. |
72,345 |
61,541 |
Operating days............................................................... |
2,389 |
2,704 |
Average daily time charter equivalent rate............... |
$ 30,282 |
$ 22,758 |
Conference Call Details:
Tomorrow, Thursday, March 2, 2017, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (866) 819-7111
(US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). Please quote "Navigator" to the operator.
A telephonic replay of the conference call will be available until Thursday, March 9, 2017 by dialing 1(866) 247-4222
(US Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or +44 (0)1452 550-000 (Standard International Dial In). Access Code: 11870348#
Audio Webcast:
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). 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
New York: |
399 Park Avenue, 38th Floor, New York, NY 10022. Tel: +1 212 355 5893 |
London: |
21 Palmer Street, London, SW1H 0AD. Tel: +44 (0)20 7340 4850 |
About Us
Navigator Gas is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and provides international and regional seaborne transportation of liquefied petroleum gas, petrochemical gases and ammonia for energy companies, industrial users and commodity traders. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, including three newbuildings scheduled for delivery by July 2017.
FORWARD LOOKING STATEMENTS
Statements included in this press release concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto, including our financial forecast, contain forward-looking statements. 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," or the negative of these terms or other comparable terminology. 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;
• general market conditions and shipping market trends, including charter rates and factors affecting supply and demand;
• our financial condition and liquidity, including our ability to 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 receipt of our three newbuildings and the timing of the receipt thereof;
• our expectations about the availability of vessels to purchase, the time that it may take to construct new vessels, or the useful lives of our vessels;
• our continued ability to enter into long-term, fixed-rate time charters with our customers;
• changes in governmental rules and regulations or actions taken by regulatory authorities;
• our expectation that in 2017 we will continue to provide in-house technical management for more of the vessels in our fleet;
• potential liability from future litigation;
• our expectations relating to the payment of dividends; and
• other factors discussed in other periodic filings with the U.S. Securities and Exchange Commission.
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.
Navigator Holdings Ltd. | ||
Consolidated Balance Sheets | ||
(Unaudited) | ||
December 31,
|
December 31,
| |
(in thousands except share data) | ||
Assets |
||
Current assets |
||
Cash and cash equivalents...................................................................................................................................................................................................................... |
$ 87,779 |
$ 57,272 |
Accounts receivable, net..................................................................................................................................................................................................................................... |
9,050 |
7,059 |
Accrued income............................................................................................................................................................................................................................. |
5,647 |
13,134 |
Prepaid expenses and other current assets................................................................................................................................................................................................................................ |
8,754 |
8,541 |
Inventories............................................................................................................................................................................................................................ |
3,480 |
6,937 |
Insurance recoverable...................................................................................................................................................................................................................... |
10,289 |
855 |
Total current assets................................................................................................................................................................................................................................ |
124,999 |
93,798 |
Non-current assets |
||
Vessels in operation, net..................................................................................................................................................................................................................................... |
1,264,451 |
1,480,359 |
Vessels under construction.................................................................................................................................................................................................................... |
170,776 |
150,492 |
Property, plant and equipment, net..................................................................................................................................................................................................................................... |
279 |
194 |
Total non-current assets................................................................................................................................................................................................................................ |
1,435,506 |
1,631,045 |
Total assets................................................................................................................................................................................................................................ |
$ 1,560,505 |
$ 1,724,843 |
Liabilities and stockholders' equity |
||
Current liabilities |
||
Current portion of long-term debt, net of deferred financing costs.................................................................................................................................................................................................................................. |
$ 59,024 |
$ 78,464 |
Senior unsecured bond................................................................................................................................................................................................................................. |
— |
25,000 |
Accounts payable............................................................................................................................................................................................................................ |
11,471 |
6,388 |
Accrued expenses and other liabilities........................................................................................................................................................................................................................... |
9,065 |
11,377 |
Accrued interest.............................................................................................................................................................................................................................. |
3,117 |
2,932 |
Deferred income............................................................................................................................................................................................................................. |
6,606 |
3,522 |
Total current liabilities......................................................................................................................................................................................................................... |
89,283 |
127,683 |
Non-current liabilities |
||
Secured term loan facilities, net of current portion and deferred financing costs.................................................................................................................................................................................................................................. |
436,131 |
540,680 |
Senior unsecured bond................................................................................................................................................................................................................................. |
125,000 |
100,000 |
Total non-current liabilities........................................................................................................................................................................................................................... |
561,131 |
640,680 |
Total liabilities......................................................................................................................................................................................................................... |
650,414 |
768,363 |
Commitments and contingencies |
||
Stockholders' equity |
||
Common stock – $.01 par value; 400,000,000 shares authorized; 55,436,087 shares issued and outstanding, (2015: 55,363,467) |
554 |
554 |
Additional paid-in capital.............................................................................................................................................................................................................................. |
586,451 |
588,024 |
Accumulated other comprehensive loss.................................................................................................................................................................................................................................... |
(465 ) |
(287 ) |
Retained earnings............................................................................................................................................................................................................................ |
323,551 |
368,189 |
Total stockholders' equity............................................................................................................................................................................................................................... |
910,091 |
956,480 |
Total liabilities and stockholders' equity............................................................................................................................................................................................................................... |
$ 1,560,505 |
$ 1,724,843 |
Navigator Holdings Ltd. | ||||
Consolidated Statements of Income | ||||
(Unaudited) | ||||
Three months ended (in thousands except share and per |
Year ended December 31, (in thousands except share and per | |||
2015
|
2016
|
2015
|
2016
| |
Revenues |
||||
Operating revenue..................................................................................................................................................................................................................................... |
$ 78,670 |
$ 75,455 |
$ 315,223 |
$ 294,112 |
Expenses |
||||
Brokerage commissions............................................................................................................................................................................................................................ |
1,804 |
1,430 |
6,995 |
5,812 |
Voyage expenses................................................................................................................................................................................................................................... |
6,325 |
13,914 |
33,687 |
42,201 |
Vessel operating expenses................................................................................................................................................................................................................................... |
21,150 |
22,611 |
78,842 |
90,854 |
Depreciation and amortization............................................................................................................................................................................................................................ |
14,515 |
16,625 |
53,453 |
62,280 |
General and administrative costs........................................................................................................................................................................................................................................... |
2,915 |
3,348 |
11,011 |
12,528 |
Other corporate expenses................................................................................................................................................................................................................................... |
239 |
366 |
2,553 |
1,976 |
Profit from sale of vessel......................................................................................................................................................................................................................................... |
— |
— |
(550 ) |
— |
Vessel write down following collision..................................................................................................................................................................................................................................... |
— |
— |
10,500 |
— |
Insurance recoverable from vessel repairs........................................................................................................................................................................................................................................ |
608 |
— |
(9,892 ) |
504 |
Total operating expenses................................................................................................................................................................................................................................... |
47,556 |
58,294 |
186,599 |
216,155 |
Operating income...................................................................................................................................................................................................................................... |
31,114 |
17,161 |
128,624 |
77,957 |
Other income/(expense) |
||||
Interest expense..................................................................................................................................................................................................................................... |
(7,166 ) |
(8,879 ) |
(28,085 ) |
(32,321 ) |
Write off deferred finance costs........................................................................................................................................................................................................................................... |
— |
(102 ) |
(1,797 ) |
(102 ) |
Interest income...................................................................................................................................................................................................................................... |
63 |
41 |
152 |
281 |
Income before income taxes.......................................................................................................................................................................................................................................... |
24,011 |
8,221 |
98,894 |
45,815 |
Income taxes.......................................................................................................................................................................................................................................... |
(190 ) |
(575 ) |
(800 ) |
(1,177 ) |
Net income...................................................................................................................................................................................................................................... |
$ 23,821 |
$ 7,646 |
$ 98,094 |
$ 44,638 |
Earnings per share: |
||||
Basic:.............................................................................................................................................................................................................................................. |
$ 0.43 |
$ 0.14 |
$ 1.77 |
$ 0.81 |
Diluted:........................................................................................................................................................................................................................................... |
$ 0.43 |
$ 0.14 |
$ 1.76 |
$ 0.80 |
Weighted average number of shares outstanding: |
||||
Basic:.............................................................................................................................................................................................................................................. |
55,363,467 |
55,436,087 |
55,360,004 |
55,418,626 |
Diluted:........................................................................................................................................................................................................................................... |
55,741,907 |
55,810,365 |
55,706,104 |
55,794,481 |
Navigator Holdings Ltd. | ||||
Consolidated Statements of Comprehensive Income | ||||
(Unaudited) | ||||
Three months ended |
Year ended | |||
2015
|
2016
|
2015
|
2016
| |
Net income............................................................................................................................................................................................................................. |
$ 23,821 |
$ 7,646 |
$ 98,094 |
$ 44,638 |
Other Comprehensive Income/(Loss): |
||||
Foreign currency translation (loss)/gain........................................................................................................................................................................................................................ |
(135 ) |
114 |
(211 ) |
178 |
Total Comprehensive Income............................................................................................................................................................................................................................ |
23,686 |
7,760 |
97,883 |
44,816 |
Consolidated Statements of Stockholders' Equity | ||||||
(Unaudited) | ||||||
(in thousands except share data) | ||||||
Number of shares |
Common
|
Additional
|
Accumulated
|
Retained
|
Total
| |
January 1, 2015.......................................... |
55,346,613 |
$ 553 |
$ 584,808 |
$ (254 ) |
$ 225,457 |
$ 810,564 |
Restricted shares issued March 17, 2015. |
16,854 |
1 |
— |
— |
— |
1 |
Net income.................................................... |
— |
— |
— |
— |
98,094 |
98,094 |
Foreign currency translation....................... |
— |
— |
— |
(211 ) |
— |
(211 ) |
Share-based compensation plan............... |
— |
— |
1,643 |
— |
— |
1,643 |
December 31, 2015..................................... |
55,363,467 |
$ 554 |
$ 586,451 |
$ (465 ) |
$ 323,551 |
$ 910,091 |
Restricted shares issued March 29, 2016 |
72,620 |
— |
— |
— |
— |
— |
Net income.................................................... |
— |
— |
— |
— |
44,638 |
44,638 |
Foreign currency translation....................... |
— |
— |
— |
178 |
— |
178 |
Share-based compensation plan............... |
— |
— |
1,573 |
— |
— |
1,573 |
December 31, 2016..................................... |
55,436,087 |
$ 554 |
$ 588,024 |
$ (287 ) |
$ 368,189 |
$ 956,480 |
Navigator Holdings Ltd. | ||
Consolidated Statements of Cash Flows | ||
(Unaudited) | ||
Year ended
|
Year ended
| |
(in thousands) |
(in thousands) | |
Cash flows from operating activities |
||
Net income............................................................................................................................................................................................................................. |
$ 98,094 |
$ 44,638 |
Adjustments to reconcile net income to net cash provided by operating activities |
||
Depreciation and amortization................................................................................................................................................................................................................... |
53,453 |
62,280 |
Payment of drydocking costs.................................................................................................................................................................................................................................. |
(11,558 ) |
(9,902 ) |
Share-based compensation................................................................................................................................................................................................................. |
1,643 |
1,573 |
Amortization of deferred financing costs.................................................................................................................................................................................................................................. |
4,806 |
3,091 |
Profit from sale of vessel................................................................................................................................................................................................................................ |
(550 ) |
— |
Vessel write down following collision............................................................................................................................................................................................................................ |
10,500 |
— |
Insurance recoverable from vessel repairs............................................................................................................................................................................................................................... |
(10,289 ) |
60 |
Unrealized foreign exchange......................................................................................................................................................................................................................... |
(205 ) |
208 |
Changes in operating assets and liabilities |
||
Accounts receivable........................................................................................................................................................................................................................ |
(1,855 ) |
1,991 |
Inventories............................................................................................................................................................................................................................ |
1,331 |
(3,457 ) |
Prepaid expenses and other current assets................................................................................................................................................................................................................................ |
(4,408 ) |
(7,694 ) |
Accounts payable and other liabilities........................................................................................................................................................................................................................... |
8,394 |
(6,040 ) |
Long-term accounts receivable........................................................................................................................................................................................................................ |
198 |
— |
Net cash provided by operating activities.......................................................................................................................................................................................................................... |
149,554 |
86,748 |
Cash flows from investing activities |
||
Payment to acquire vessels.............................................................................................................................................................................................................................. |
(3,348 ) |
(1,733 ) |
Payment for vessels under construction.................................................................................................................................................................................................................... |
(236,648 ) |
(239,179 ) |
Purchase of other property, plant and equipment....................................................................................................................................................................................................................... |
(142 ) |
(75 ) |
Receipt of shipyard penalty payments......................................................................................................................................................................................................................... |
1,933 |
1,901 |
Insurance recoveries......................................................................................................................................................................................................................... |
391 |
9,374 |
Capitalized costs for the repair of Navigator Aries.................................................................................................................................................................................................................................. |
— |
(8,441 ) |
Proceeds from sale of vessel net of costs.................................................................................................................................................................................................................................. |
31,958 |
— |
Net cash used in investing activities.......................................................................................................................................................................................................................... |
(205,856 ) |
(238,153 ) |
Cash flows from financing activities |
||
Proceeds from secured term loan facilities and revolving credit facilities............................................................................................................................................................................................................................ |
157,700 |
327,670 |
Direct financing costs of secured term loan facilities............................................................................................................................................................................................................................ |
(5,879 ) |
(2,680 ) |
Repayment of secured term loan facilities and revolving credit facilities............................................................................................................................................................................................................................ |
(70,266 ) |
(204,092 ) |
Net cash / provided by financing activities.......................................................................................................................................................................................................................... |
81,555 |
120,898 |
Net increase / (decrease) in cash and cash equivalents..................................................................................................................................................................................................................... |
25,253 |
(30,507 ) |
Cash and cash equivalents at beginning of period.............................................................................................................................................................................................................................. |
62,526 |
87,779 |
Cash and cash equivalents at end of period.............................................................................................................................................................................................................................. |
$ 87,779 |
$ 57,272 |
Supplemental Information |
||
Total interest paid during the year, net of amounts capitalized....................................................................................................................................................................................................................... |
$ 24,427 |
$ 29,815 |
Total tax paid during the period............................................................................................................................................................................................................................... |
$ 632 |
$ 601 |
SOURCE Navigator Gas
LONDON, Feb. 29, 2016 /PRNewswire/ --
Highlights
Fourth Quarter 2015 Financial Results Overview
Operating revenue for the three months ended December 31, 2015 was $78.7 million, an increase of $0.3 million, or 0.4%, when compared to the $78.4 million of operating revenue for the three months ended December 31, 2014. This slight increase was due to additional vessels in the fleet; offset by a lower time charter equivalent rate and lower utilization, principally due to the off hire of Navigator Aries caused by the collision in June 2015.
During the fourth quarter of 2015, the average time charter equivalent rate across the entire fleet, including our fully-refrigerated vessels, was approximately $921,069 per calendar month ($30,282 per day), compared to $932,170 per calendar month ($30,646 per day) for the comparable period in 2014.
Fleet utilization across the 29 vessels operating at the year end was 92.7% for the fourth quarter of 2015, a reduction from 94.8% for the fourth quarter of 2014. This was primarily as a result of Navigator Aries being off hire while it was undergoing collision repairs, in the fourth quarter of 2015 which we estimate reduced utilization by 3.6%.
Following an interest capitalization restatement for 2014, the net income has increased by $1.2 million and $1.1 million for the three months ended December 31, 2015 and 2014 respectively.
(1) Financial data contained herein for the three months ended and the year ended December 31, 2014 have been restated as described in Appendix B hereto.
(2) EBITDA represents net income before net interest expense, income taxes and depreciation and amortization. EBITDA does not represent and should not be considered as an alternative to consolidated net income or cash generated from operations, as determined by U.S. GAAP, and our calculation of EBITDA may not be comparable to that reported by other companies. EBITDA is not a recognized measurement under U.S. GAAP. Please see Appendix A hereto for a reconciliation to the most directly comparable GAAP financial measure.
Total operating expenses for the three months ended December 31, 2015 included a $0.6 million insurance claim write off for Navigator Aries as the estimated costs and corresponding insurance claim for the repair of the vessel were less than previously estimated.
Net operating revenue, which is operating revenue less voyage expenses, amounted to $72.3 million for the three months ended December 31, 2015, up from $69.2 million for the same period in 2014. $5.6 million of the increase in net operating revenue resulted from having additional vessels in the fleet in 2015, offset by $(0.9) million from a decrease in charter rates and $(1.6) million from a decrease in vessel utilization.
Net income was $23.8 million for the three months ended December 31, 2015, or $0.43 per share, a reduction from $25.3 million or $0.46 per share for the same period in 2014. It is estimated that the Navigator Aries incident affected the earnings per share for the fourth quarter 2015 by approximately $0.05.
EBITDA for the fourth quarter of 2015 was $45.6 million, compared to $44.1 million for the fourth quarter of 2014.
Conference Call Details:
Tomorrow, Tuesday, March 1, 2016, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (866) 819-7111 (US Toll Free Dial In), 0(800) 953-0329 (UK Toll Free Dial In) or +44 (0)1452-542-301 (Standard International Dial In). Please quote "Navigator" to the operator.
A telephonic replay of the conference call will be available until Tuesday, March 8, 2016 by dialing 1(866) 247-4222 (US Toll Free Dial In), 0(800) 953-1533 (UK Toll Free Dial In) or +44 (0)1452 550-000 (Standard International Dial In). Access Code: 11870348#
Audio Webcast:
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). 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
New York: 399 Park Avenue, 38th Floor, New York, NY 10022. Tel: +1 212 355 5893
London: 21 Palmer Street, London, SW1H 0AD. Tel: +44 (0)20 7340 4850
About Us
Navigator Gas is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and provides international and regional seaborne transportation of liquefied petroleum gas, petrochemical gases and ammonia for energy companies, industrial users and commodity traders. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, including eight newbuildings scheduled for delivery by July 2017.
FORWARD LOOKING STATEMENTS
Statements included in this press release concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto, including our financial forecast, contain forward-looking statements. 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," or the negative of these terms or other comparable terminology. These risks and uncertainties include, but are not limited to:
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.
Navigator Holdings Ltd.
Consolidated Balance Sheets (Unaudited) | ||||
December 31, |
December 31, | |||
2014 |
2015 | |||
Assets |
(in thousands except share data) | |||
Current assets |
||||
Cash and cash equivalents |
$ |
62,526 |
$ |
87,779 |
Accounts receivable, net |
7,195 |
9,050 | ||
Accrued income |
3,642 |
5,647 | ||
Prepaid expenses and other current assets |
6,323 |
8,754 | ||
Inventories |
4,811 |
3,480 | ||
Insurance recoverable |
- |
10,289 | ||
Total current assets |
84,497 |
124,999 | ||
Non-current assets |
||||
Long-term accounts receivable |
198 |
- | ||
Vessels in operation, net |
1,146,999 |
1,264,451 | ||
Vessels under construction |
134,246 |
170,776 | ||
Property, plant and equipment, net |
284 |
279 | ||
Deferred finance costs, net |
9,066 |
10,139 | ||
Total assets |
$ |
1,375,290 |
$ |
1,570,644 |
Liabilities and stockholders' equity |
||||
Current liabilities |
||||
Current portion of long-term debt |
$ |
58,350 |
$ |
61,979 |
Accounts payable |
6,448 |
11,471 | ||
Accrued expenses and other liabilities |
5,312 |
9,065 | ||
Accrued interest |
3,012 |
3,117 | ||
Deferred income |
7,095 |
6,606 | ||
Total current liabilities |
80,217 |
92,238 | ||
Non-current liabilities |
||||
Secured term loan facilities, net of current portion |
359,509 |
443,315 | ||
Senior unsecured bond |
125,000 |
125,000 | ||
Total non-current liabilities |
484,509 |
568,315 | ||
Total liabilities |
564,726 |
660,553 | ||
Commitments and contingencies |
||||
Stockholders' equity |
||||
Common stock – $.01 par value; |
||||
400,000,000 shares authorized; 55,363,467 shares |
||||
issued and outstanding, (2014: 55,346,613) |
553 |
554 | ||
Additional paid-in capital |
584,808 |
586,451 | ||
Accumulated other comprehensive loss |
(254) |
(465) | ||
Retained earnings |
225,457 |
323,551 | ||
Total stockholders' equity |
810,564 |
910,091 | ||
Total liabilities and stockholders' equity |
$ |
1,375,290 |
$ |
1,570,644 |
Navigator Holdings Ltd.
Consolidated Statements of Income (Unaudited) | |||||||||||||
Three months ended |
Year ended |
||||||||||||
December 31, |
December 31, |
||||||||||||
(in thousands except share data) |
(in thousands except share data) |
||||||||||||
2014 |
2015 |
2014 |
2015 | ||||||||||
Revenues |
|||||||||||||
Operating revenue |
$ |
78,374 |
$ |
78,670 |
$ |
304,875 |
$ |
315,223 |
|||||
Expenses |
|||||||||||||
Address and brokerage commissions |
1,686 |
1,804 |
6,697 |
6,995 |
|||||||||
Voyage expenses |
9,128 |
6,325 |
45,003 |
33,687 |
|||||||||
Charter-in costs |
2,814 |
- |
9,111 |
- |
|||||||||
Vessel operating expenses |
17,482 |
21,150 |
70,198 |
78,842 |
|||||||||
Depreciation and amortization |
12,082 |
14,515 |
45,809 |
53,453 |
|||||||||
General and administrative costs |
2,636 |
2,915 |
10,335 |
11,011 |
|||||||||
Other corporate expenses |
509 |
239 |
2,260 |
2,553 |
|||||||||
Profit from sale of vessel |
- |
- |
- |
(550) |
|||||||||
Vessel write down following collision |
- |
- |
- |
10,500 |
|||||||||
Insurance recoverable from vessel repairs |
- |
608 |
- |
(9,892) |
|||||||||
Total operating expenses |
46,337 |
47,556 |
189,413 |
186,599 |
|||||||||
Operating income |
32,037 |
31,114 |
115,462 |
128,624 |
|||||||||
Other income/(expense) |
|||||||||||||
Interest expense |
(6,314) |
(7,166) |
(27,051) |
(28,085) |
|||||||||
Write off of deferred financing costs |
- |
- |
- |
(1,797) |
|||||||||
Interest income |
4 |
63 |
230 |
152 |
|||||||||
Income before income taxes |
25,727 |
24,011 |
88,641 |
98,894 |
|||||||||
Income taxes |
(399) |
(190) |
(904) |
(800) |
|||||||||
Net income |
$ |
25,328 |
$ |
23,821 |
$ |
87,737 |
$ |
98,094 |
|||||
Earnings per share: |
|||||||||||||
Basic: |
$ |
0.46 |
$ |
0.43 |
$ |
1.59 |
$ |
1.77 |
|||||
Diluted: |
$ |
0.46 |
$ |
0.43 |
$ |
1.58 |
$ |
1.76 |
|||||
Weighted average number of shares outstanding: |
|||||||||||||
Basic: |
55,342,184 |
55,363,467 |
55,336,402 |
55,360,004 |
|||||||||
Diluted: |
55,561,565 |
55,741,907 |
55,483,478 |
55,704,104 |
|||||||||
Navigator Holdings Ltd.
Consolidated Statements of Comprehensive Income (Unaudited) | |||||||||||||||
Three months ended |
Year ended | ||||||||||||||
December 31, |
December 31, | ||||||||||||||
(in thousands) |
(in thousands) | ||||||||||||||
2014 |
2015 |
2014 |
2015 | ||||||||||||
Net income |
$ |
25,328 |
$ |
23,821 |
$ |
87,737 |
$ |
98,094 | |||||||
Other Comprehensive Income/(Loss) |
|||||||||||||||
Foreign currency translation (loss)/gain |
(38) |
(135) |
(166) |
(211) | |||||||||||
Total Comprehensive Income |
25,290 |
23,686 |
87,571 |
97,883 | |||||||||||
Consolidated Statements of Stockholders' Equity (Unaudited) | ||||||
(in thousands except share data) | ||||||
Number of |
Common |
Additional
|
Accumulated
|
Retained
|
Total
| |
January 1, 2014 |
55,326,765 |
$ 553 |
$ 584,031 |
$ (88 ) |
$ 137,720 |
$ 722,216 |
Issuance of common stock, net of issuance costs |
— |
— |
(345) |
— |
— |
(345) |
Restricted shares issued |
||||||
April 14, 2014 |
12,348 |
— |
— |
— |
— |
— |
November 21, 2014 |
5,000 |
— |
— |
— |
— |
— |
December 1, 2014 |
2,500 |
— |
— |
— |
— |
— |
Net income |
— |
— |
— |
— |
87,737 |
87,737 |
Foreign currency translation |
— |
— |
— |
(166) |
— |
(166) |
Share-based compensation plan |
— |
— |
1,122 |
— |
— |
1,122 |
December 31, 2014 |
55,346,613 |
$ 553 |
$ 584,808 |
$ (254 ) |
$ 225,457 |
$ 810,564 |
Restricted shares issued |
||||||
March 17, 2015 |
16,854 |
1 |
— |
— |
— |
1 |
Net income |
— |
— |
— |
— |
98,094 |
98,094 |
Foreign currency translation |
— |
— |
— |
(211 ) |
— |
(211 ) |
Share-based compensation plan |
— |
— |
1,643 |
— |
— |
1,643 |
December 31, 2015 |
55,363,467 |
$ 554 |
$ 586,451 |
$ (465 ) |
$ 323,551 |
$ 910,091 |
Navigator Holdings Ltd.
Consolidated Statements of Cash Flows (Unaudited) | ||||
Twelve months ended |
Twelve months ended | |||
December 31, |
December 31, | |||
2014 |
2015 | |||
(in thousands) |
(in thousands) | |||
Cash flows from operating activities |
||||
Net income |
$ |
87,737 |
$ |
98,094 |
Adjustments to reconcile net income to net cash provided by operating activities |
||||
Depreciation and amortization |
45,809 |
53,453 | ||
Payment of drydocking costs |
(5,320) |
(11,558) | ||
Amortization of share-based compensation |
1,122 |
1,643 | ||
Amortization of deferred financing costs |
2,853 |
4,806 | ||
Profit on sale of vessel |
- |
(550) | ||
Vessel write down following collision |
- |
10,500 | ||
Insurance recoverable from vessel repairs |
- |
(10,289) | ||
Unrealized foreign exchange |
(155) |
(205) | ||
Changes in operating assets and liabilities |
||||
Accounts receivable |
4,642 |
(1,855) | ||
Inventories |
1,114 |
1,331 | ||
Accrued income and prepaid expenses and other current assets |
2,417 |
(4,408) | ||
Accounts payable, accrued interest and other liabilities |
(7,224) |
8,394 | ||
Long-term accounts receivable |
119 |
198 | ||
Net cash provided by operating activities |
133,114 |
149,554 | ||
Cash flows from investing activities |
||||
Payment to acquire vessels |
(3,503) |
(3,348) | ||
Payment for vessels under construction |
(230,065) |
(236,648) | ||
Purchase of other property, plant and equipment |
(109) |
(142) | ||
Receipt of shipyard penalty payments |
- |
1,933 | ||
Insurance recoveries |
1,803 |
391 | ||
Proceeds from sale of vessel net of costs |
- |
31,958 | ||
Net cash used in investing activities |
(231,874) |
(205,856) | ||
Cash flows from financing activities |
||||
Proceeds from secured term loan facilities |
150,000 |
157,700 | ||
Direct financing costs of secured term loan facilities |
(483) |
(5,879) | ||
Repayment of secured term loan facilities |
(182,626) |
(70,266) | ||
Issuance costs of stock |
(345) |
- | ||
Net cash (used in) / provided by financing activities |
(33,454) |
81,555 | ||
Net (decrease) / increase in cash and cash equivalents |
(132,214) |
25,253 | ||
Cash and cash equivalents at beginning of period |
194,740 |
62,526 | ||
Cash and cash equivalents at end of period |
$ |
62,526 |
$ |
87,779 |
Supplemental Information |
||||
Total interest paid during the period |
$ |
28,719 |
$ |
28,917 |
Total tax paid during the period |
$ |
560 |
$ |
632 |
Appendix A
The following table sets forth a reconciliation of net income to EBITDA for the periods presented:
Three months ended |
Year ended | |||||||||||
December 31, |
December 31, | |||||||||||
(in thousands) |
(in thousands) | |||||||||||
2014 |
2015 |
2014 |
2015 | |||||||||
Net income |
$ |
25,328 |
$ |
23,821 |
$ |
87,737 |
$ |
98,094 | ||||
Net interest expense |
6,310 |
7,103 |
26,821 |
29,730 | ||||||||
Income taxes |
399 |
190 |
904 |
800 | ||||||||
Depreciation and amortization |
12,082 |
14,515 |
45,809 |
53,453 | ||||||||
EBITDA |
$ |
44,119 |
$ |
45,629 |
$ |
161,271 |
$ |
182,077 | ||||
Appendix B
In connection with the preparation of the consolidated financial statements for the year ended December 31, 2015, Navigator Holdings Ltd. (the "Company") identified an error in the treatment of interest costs in relation to vessel newbuildings. Certain amounts recorded as interest expense should have been capitalized, rather than expensed. The error resulted in an overstatement of the interest expense and an understatement of net income, book values of vessels under construction and vessels in operation, retained earnings and total stockholders' equity for the years ended December 31, 2012, 2013 and 2014 and the interim periods with such years, as well as the first three quarters of 2015, and the related Consolidated Balance Sheets, Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Statements of Changes in Stockholders' Equity and Consolidated Statements of Cash Flows.
Additional information regarding the restatement will be contained in the Company's Annual Report on Form 20-F for the year ended December 31, 2015.
The following tables present the effects of the restatement on the Company's previously reported financial results as of December 31, 2014 and for the three months and the year ended December 31, 2014:
Three months ended |
Year ended | |||||||||||
December 31, 2014 |
December 31, 2014 | |||||||||||
(in thousands, except per share data) |
(in thousands, except per share data) | |||||||||||
As reported |
Adjustment |
As restated |
As reported |
Adjustment |
As restated | |||||||
Interest expense |
$ |
(7,379) |
1,065 |
(6,314) |
$ |
(30,321) |
3,270 |
(27,051) | ||||
Income before income taxes |
24,662 |
1,065 |
25,727 |
85,371 |
3,270 |
88,641 | ||||||
Net income |
24,263 |
1,065 |
25,328 |
84,467 |
3,270 |
87,737 | ||||||
EPS |
||||||||||||
Basic |
0.44 |
0.02 |
0.46 |
1.53 |
0.06 |
1.59 | ||||||
Diluted |
0.44 |
0.02 |
0.46 |
1.52 |
0.06 |
1.58 | ||||||
At period end: |
||||||||||||
Vessels in operation, net |
1,145,066 |
1,933 |
1,146,999 | |||||||||
Vessels under construction, net |
131,345 |
2,901 |
134,246 | |||||||||
Total Assets |
1,370,456 |
4,834 |
1,375,290 | |||||||||
Retained earnings |
220,623 |
4,834 |
225,457 | |||||||||
Total Stockholders' equity |
805,730 |
4,834 |
810,564 | |||||||||
SOURCE Navigator Gas
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