Navigator Holdings Ltd. Results for the Three and Six Months Ended June 30, 2022

Loading...
Loading...

Highlights

  • Navigator Holdings Ltd. (the "Company") reported total operating revenues of $123.9 million for the three months ended June 30, 2022, an increase from $85.7 million for the three months ended June 30, 2021. Total operating revenues were $243.7 million for the six months ended June 30, 2022, an increase from $171.4 million for the six ended June 30, 2021.
  • Net income was $14.0 million (earnings per share of $0.18) for the three months ended June 30, 2022, an increase from $0.3 million (earnings per share of $0.01) for the three months ended June 30, 2021. For the six months ended June 30, 2022, net income was $41.1 million (earnings per share of $0.53) compared to $3.1 million (earnings per share of $0.06) for the six months ended June 30, 2021.
  • EBITDA1 was $55.0 million for the three months ended June 30, 2022 compared to $28.8 million for the three months ended June 2021. For the six months ended June 30, 2022, EBITDA was $110.5 million for the six months ended June 30, 2022 compared to $59.8 million for the six months ended June 30, 2021.
  • Maintained strong fleet utilization of 87.4% for the three months ended June 30, 2022, an increase from 85.4% for the three months ended June 30, 2021
  • Debt reduced by $45.9 million during the three months ended June 30, 2022, with cash, cash equivalents and restricted cash standing at $151.2 million as of June 30, 2022.

LONDON and NEW YORK, Aug. 18, 2022 (GLOBE NEWSWIRE) --

Ethylene Export Terminal

Ethylene throughput for the second quarter of 2022 at the Ethylene Export Terminal totaled 268,444 metric tons, a slight increase from the 267,110 metric tons from the previous quarter, and dramatically up from the throughput of 155,428 metric tons during the second quarter of 2021. The ethylene export volumes were primarily discharged in Europe due to the wide pricing arbitrage. Asia has yet to re-start their traditional ethylene imports across the Pacific, as demand is hampered, in particular, by Chinese covid restrictions, reducing consumption and production in the region.

Shipping Trends

The handysize semi-refrigerated and fully-refrigerated 12 month time charter rate assessment increased by $35,000 per calendar month ("pcm") and $15,000 pcm, respectively, during the second quarter of 2022, to $720,000 pcm and $650,000 pcm, respectively. Recent shipbroker reports are indicating a semi-refrigerated reduction to $700,000 pcm and a slight increase for fully-refrigerated to $655,000 pcm, with the most recent weekly shipbroker reports showing a further increase to $705,000 pcm and $650,000 pcm, respectively. The handysize ethylene 12 month time charter assessment remained unchanged at $900,000 pcm.

Europe continues to import energy, feedstocks, petrochemicals and ammonia from wherever the region can source supply. According to Kpler, approximately 80% of U.S. ethylene exports were transported for European consumption during the second quarter of 2022. This European share declined from a high of 92% during first quarter of 2022, which had increased from a more usual level during the fourth quarter 2021 of 51%. Apart from absolute volumes of U.S. ethylene exports, the final destination has a major impact on the demand for ethylene ship capacity. An Atlantic crossing compared to Pacific crossing halves ethylene vessel demand. The arbitrage remains open to both continents however demand and consumption in China remains challenged following lingering COVID restrictions with the resultant effect on the country's GDP. We expect an increasing percentage of the ethylene exports to be transported across the Pacific during latter part of the year.

Ethane exports from the U.S. reached record levels in June 2022 of 684,000 mts. The competitiveness of ethane compared to naphtha as a feedstock for the production of ethylene remains and we believe will continue. Our ethylene fleet can be employed in ethylene or ethane as both products require special nickel steel tanks to enable vessels to carry both products at low temperatures. North American LPG exports also reached record levels during the month of June 2022 with 5.1 million tons departing its shores for international markets. The handysize portion of the total natural gas liquids and petrochemical export volumes are approximately 7%, the upward trend in volumes is beneficial as it ultimately increases vessel demand for handysize vessels.

Ammonia continues to grow in importance for the Company. During second quarter of 2022 we increased the number of vessels employed on ammonia charters to seven vessels. This now constitutes 15% of our earnings days which we anticipate will continue to increase.


Reconciliation of Non-GAAP Financial Measures

The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2021 and 2022:

  Three months ended
 Six months ended
 
  June 30,
2021
 June 30,
2022
 June 30,
2021
 June 30,
2022
 
  (in thousands) (in thousands) 
Net income $654 $14,370 $3,863 $41,764 
Net interest expense  8,584  11,359  17,514  22,235 
Income taxes  190  671  335  1,064 
Depreciation and amortization  19,473  31,477  38,746  62,819 
              
EBITDA(1) $28.901 $57,877 $60,458 $127,882 
Foreign currency exchange gain on senior secured bonds  (330)  (8,218)  (338)  (7,441) 
Unrealized loss/(gain) on non-designated derivative instruments  269  5,346  (278)  (9,896) 
              
Adjusted EBITDA(1) $28,840 $55,005 $59,842 $110,545 
              

1 EBITDA and Adjusted EBITDA are not measurements prepared in accordance with U.S. GAAP (non-GAAP financial measures). EBITDA represents net income before net interest expense, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before 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.

Conference Call Details:

Tomorrow, Friday, August 19, 2022 at 9:00 A.M. E.D.T., the Company's management team will host a Zoom conference call and slide presentation to discuss the financial results.

Zoom Conference Call Details
Participants should register for the conference call and slide presentation through the following link:
https://us06web.zoom.us/webinar/register/WN_BRynFRuhTEapVu1kG-mIbw

Loading...
Loading...

Or join by phone:
United States: +1 929 205 6099
United Kingdom: +44 330 088 5830

For a full list of US and international numbers available, please click on the link below:
US and International numbers 

Webinar ID: 881 8184 1110
Passcode: 361151 
The conference call and slide presentation will be available for replay on Navigator's website (www.navigatorgas.com) under Investors Centre and Key Dates. 

Navigator Gas

Attention: Investor Relations investorrelations@navigatorgas.com or randy.giveans@navigatorgas.com

Houston: 1201 Fannin St, Suite 262, Houston, Texas USA 77002. Tel: +1 713 373 6197.
London: 10 Bressenden Place, London, SW1E 5DH. Tel +44 (0)20 7340 4850

Investor Relations / Media Advisors
Nicolas Bornozis / Paul Lampoutis
Capital Link - New York
Tel: +1-212-661-7566
Email: navigatorgas@capitallink.com 

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 and owns a 50% share, through a joint venture, in an ethylene export marine terminal at Morgan's Point, Texas on the Houston Ship Channel, USA. Navigator's fleet consists of 53 semi- or fully-refrigerated liquefied gas carriers, 21 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, connecting the world today, creating a sustainable tomorrow.

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:

  • global epidemics or other health crises such as the outbreak of COVID-19, including its impact on our business;
  • future operating or financial results;
  • pending acquisitions, business strategy and expected capital spending;
  • operating expenses, availability of crew, number of off-hire days, drydocking requirements and insurance costs;
  • fluctuations in currencies and interest rates;
  • general market conditions and shipping market trends, including charter rates and factors affecting supply and demand;
  • our ability to continue to comply with all our debt covenants;
  • our financial condition and liquidity, including our ability to refinance our indebtedness as it matures or obtain additional financing in the future to fund capital expenditures, acquisitions and other corporate activities;
  • estimated future capital expenditures needed to preserve our capital base;
  • our expectations about the availability of vessels to purchase, or the useful lives of our vessels;
  • our continued ability to enter into long-term, fixed-rate time charters with our customers;
  • the availability and cost of low sulfur fuel oil compliant with the International Maritime Organization sulfur emission limit reductions, generally referred to as "IMO 2020," which took effect January 1, 2020;
  • our vessels engaging in ship to ship transfers of LPG or petrochemical cargoes which may ultimately be discharged in sanctioned areas or to sanctioned individuals without our knowledge;
  • the impact of the Russian invasion of Ukraine;
  • changes in governmental rules and regulations or actions taken by regulatory authorities;
  • potential liability from future litigation;
  • our expectations relating to the payment of dividends;
  • our ability to successfully remediate the material weakness in our internal control over financial reporting and our disclosure controls and procedures;
  • our expectation regarding providing in-house technical management for certain vessels in our fleet and our success in providing such in-house technical management;
  • our expectations regarding the financial success of the Ethylene Export Terminal and our related Export Terminal Joint Venture or our Luna Pool collaborative arrangements;
  • our expectations regarding the integration, profitability and success of the vessels and businesses acquired in the Ultragas Transaction and the operational and financial benefits from the combined businesses and fleet; and
  • other factors detailed from time to time in other periodic reports we file with the Securities and Exchange Commission.

All forward-looking statements included in this press release are made only as of the date of this press release. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. We expressly disclaim any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in our views or expectations, or otherwise. We make no prediction or statement about the performance of our common stock.

Navigator Holdings Ltd.

Condensed Consolidated Balance Sheets
(Unaudited)

 December 31, 2021
 June 30, 2022
 
   
 (in thousands, except share data) 
Assets  
Current assets  
Cash, cash equivalents and restricted cash$124,223 $151,216 
Accounts receivable, net of allowance for credit losses of $982 (December 31, 2021: $1,105) 31,906  24,600 
Accrued income 6,150  7,687 
Prepaid expenses and other current assets 16,293  22,992 
Bunkers and lubricant oils 13,171  14,992 
Insurance receivable 6,857  7,913 
Amounts due from related parties 16,736  17,306 
       
Total current assets 215,336  246,706 
Non-current assets      
Vessels, net 1,763,252  1,709,356 
Assets held for sale 25,944   
Property, plant and equipment, net 330  240 
Intangible assets, net of accumulated amortization of $458 (December 31, 2021: $387) 400  278 
Equity method investments 150,209  149,319 
Derivative assets 579  14,405 
Right-of-use asset for operating leases 923  4,451 
Prepaid expenses and other non-current assets 452  110 
       
Total non-current assets 1,942,089  1,878,159 
       
Total assets$2,157,425 $2,124,865 
       
Liabilities and stockholders' equity      
Current liabilities      
Current portion of secured term loan facilities, net of deferred financing costs$148,570 $222,684 
Current portion of operating lease liabilities 381  211 
Accounts payable 11,600  9,067 
Accrued expenses and other liabilities 20,247  21,305 
Accrued interest 5,211  5,196 
Deferred income 18,510  15,508 
Amounts due to related parties 224  429 
       
Total current liabilities 204,743  274,400 
       
Non-current liabilities      
Secured term loan facilities and revolving credit facilities, net of current portion and deferred financing costs 604,790  463,472 
Senior secured bond, net of deferred financing costs 67,688  60,374 
Senior unsecured bond, net of deferred financing costs 98,551  98,747 
Derivative liabilities 8,800  12,725 
Operating lease liabilities, net of current portion 522  4,097 
Amounts due to related parties 54,877  51,590 
       
Total non-current liabilities 835,228  691,005 
       
Total Liabilities 1,039,971  965,405 
Commitments and contingencies      
Stockholders' equity      
Common stock—$.01 par value per share; 400,000,000 shares authorized; 77,264,139 shares issued and outstanding, (December 31, 2021: 77,180,429) 772  773 
Additional paid-in capital 797,324  797,800 
Accumulated other comprehensive loss (253)  (488) 
Retained earnings 316,008  357,068 
       
Total Navigator Holdings Ltd. stockholders' equity 1,113,851  1,155,153 
Non-controlling interest 3,603  4,307 
       
Total equity 1,117,454  1,159,460 
       
Total liabilities and stockholders' equity$2,157,425 $2,124,865 
       

Navigator Holdings Ltd.

Condensed Consolidated Statements of Income
(Unaudited)

 Three months ended
June 30,
Six months ended
June 30,
  2021  2022  2021  2022 
             
 (in thousands except share and per share data)
Revenues            
Operating revenue$80,153 $105,875 $160,661 $206,271 
Operating revenues - Unigas Pool   11,389    24,893 
Operating revenue- Luna Pool collaborative arrangement 5,546  6,653  10,786  12,530 
             
Total operating revenues 85,699  123,917  171,447  243,694 
             
Expenses            
Brokerage commissions 974  1,569  2,167  2,976 
Voyage expenses 17,689  20,804  33,305  41,600 
Voyage expenses – Luna Pool collaborative arrangement 5,663  6,950  9,795  11,540 
Vessel operating expenses 28,826  38,628  55,818  76,679 
Depreciation and amortization 19,473  31,477  38,746  62,819 
General and administrative costs 5,796  7,827  12,076  14,170 
Profit from sale of vessel       (358) 
Other income (88)  (109)  (160)  (198) 
             
Total operating expenses 78,333  107,146  151,747  209,228 
             
Operating income 7,366  16,771  19,700  34,466 
Other income / (expense)            
Foreign currency exchange gain on senior secured bonds 330  8,218  338  7,441 
Unrealized (loss) / gain on non-designated derivative instruments (269)  (5,346)  278  9,896 
Interest expense (8,647)  (11,471)  (17,608)  (22,434) 
Interest income 63  112  94  199 
             
(Loss) / income before income taxes and share of result of equity accounted joint ventures (1,157)  8,284  2,802  29,568 
Income taxes (190)  (671)  (335)  (1,064) 
Share of result of equity method investments 2,001  6,757  1,396  13,260 
             
Net income 654  14,370  3,863  41,764 
Net income attributable to non-controlling interest (394)  (348)  (783)  (704) 
             
Net income attributable to stockholders of Navigator Holdings Ltd.$260 $14,022 $3,080 $41,060 
             
Earnings per share attributable to stockholders of Navigator Holdings Ltd.:            
Basic:$0.01 $0.18 $0.06 $0.53 
Diluted:$0.01 $0.18 $0.05 $0.53 
Weighted average number of shares outstanding:            
Basic: 55,971,121  77,265,022  55,935,859  77,229,234 
Diluted: 56,306,557  77,582,824  56,273,533  77,550,892 
             

Navigator Holdings Ltd.

Condensed Consolidated Statements of Cash Flows
(Unaudited)

 Six Months
ended
June 30,
2021
 Six Months
ended
June 30,
2022
 
   
 (in thousands) 
Cash flows from operating activities      
Net income$3,863 $41,764 
Adjustments to reconcile net income to net cash provided by operating activities      
Unrealized gain on non-designated derivative instruments (278)  (9,896) 
Depreciation and amortization 38,746  62,819 
Payment of drydocking costs (10,061)  (7,792) 
Amortization of share-based compensation 576  476 
Amortization of deferred financing costs 1,644  1,964 
Share of result of equity method investments (1,396)  (13,260) 
Impairment of vessel 5,400   
Profit from sale of vessel   (358) 
Unrealized foreign exchange gain on senior secured bonds (338)  (7,441) 
Other unrealized foreign exchange gain 15  32 
Changes in operating assets and liabilities     
Accounts receivable (7,617)  7,306 
Insurance claim receivable (6,015)  (1,927) 
Bunkers and lubricant oils                 (2,768)          (1,821) 
Accrued income and prepaid expenses and other current assets 22,588  (7,894) 
Accounts payable, accrued interest, accrued expenses and other liabilities 3,546  (4,492) 
Amounts due to related parties 5,907  (775) 
       
Net cash provided by operating activities 53,812  58,705 
       
Cash flows from investing activities      
Additions to vessels and equipment (323)  (1,082) 
Contributions to equity method investments (4,000)   
Distributions from equity method investments 6,850  14,150 
Purchase of other property, plant and equipment (193)  (36) 
Net proceeds from sale of vessels   26,449 
Insurance recoveries 411  871 
       
Net cash provided by investing activities 2,745  40,352 
       
Cash flows from financing activities      
Proceeds from secured term loan facilities and revolving credit facilities 18,000   
Issuance costs of secured term loan facilities (26)   
Repayment of financing of vessel to related parties (3,342)  (3,287) 
Repayment of secured term loan facilities and revolving credit facilities (34,104)  (68,777) 
       
Net cash used in financing activities (19,472)  (72,064) 
       
Net increase in cash, cash equivalents and restricted cash 37,085  26,993 
Cash, cash equivalents and restricted cash at beginning of period 59,271  124,223 
       
Cash, cash equivalents and restricted cash at end of period$96,356 $151,216 
       
Supplemental Information      
Total interest paid during the period, net of amounts capitalized$15,826 $16,586 
       
Total tax paid during the period$192 $830 
       

 


Loading...
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsPress Releases
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...