LONDON, March 5, 2018 /PRNewswire/ -- 

Highlights

  • Navigator Holdings Ltd. (NYSE: NVGS) (the "Company") reports operating revenue of $76.7 million for the three months ended December 31, 2017 and $298.6 million for the full year ended December 31, 2017.
  • Maintained strong utilization of 87.2% for the three months ended December 31, 2017 and 87.6% for the year ended December 31, 2017 despite the market downturn.
  • Net income was $1.4 million (or $0.03 per share) for the three months ended December 31, 2017 and $5.3 million (or $0.10 per share) for the year ended December 31, 2017, which includes a one-off cost totaling $3.5 million (or $0.06 per share) associated with the redemption of the Company's senior unsecured bonds.
  • EBITDA(1) was $29.6 million for the three months ended December 31, 2017 and $120.8 million for the year ended December 31, 2017.  
  • The Company has continued to benefit from the increasing demand for the transportation of long-haul petrochemical gases, with petrochemicals accounting for 84% of all spot days during 2017.
  • Took delivery of the remaining five newbuilding vessels during 2017, increasing our fleet to 38 vessels. The Company's newbuild program is complete.
  • During 2017 we took an additional four vessels into in-house technical management with an additional vessel in January 2018 taking the total number of in-house technical managed vessels to nine.
  • Commenced three year charters with Braskem for two of our ethane/ethylene capable vessels taking ethane from Morgan's Point, Houston to Braskem's ethylene complex in Brazil.
  • Since the year end, we successfully renewed a contract of affreightment with Mitsubishi International Corporation to utilize three vessels for the majority of 2018 taking ethylene from the Targa terminal, in Houston to Far East Asia.
  • Since the year end, we entered into a 50/50 joint venture agreement with Enterprise Product Partners to build a new ethylene marine export terminal along the U.S. Gulf Coast that will have the capacity to export approximately one million tons of ethylene per year. The export terminal is expected to be in service by the first quarter of 2020. The project is supported by long-term contracts with customers that include U.S. ethylene producer Flint Hills Resources and a major international trading company.    

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
December 31,
(in thousands)

Year ended
December 31,
(in thousands)


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
December 31, 2016

Three months ended
December 31, 2017

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:

  • 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 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, 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;
  • potential liability from future litigation;
  • our expectations relating to the payment of dividends;
  • 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 ability to meet our expectations regarding the construction and financing of our proposed investment in an ethylene marine terminal in the U.S. Gulf and our expectations regarding the financial success of such terminal; 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, 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,
  net of deferred financing costs

$               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
  and deferred financing costs

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;
400,000,000 shares authorized; 55,529,762
shares issued and outstanding, (2016: 55,436,087)

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
shares

Amount 0.01
par value

Additional
Paid-in Capital

Accumulated
Other
Comprehensive
Income (Loss)

Retained
Earnings

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
December 31,
2016
(in thousands)

Year ended
December 31,
2017
(in thousands)

Cash flows from operating activities



Net income

$     44,638

$       5,310

Adjustments to reconcile net income
  to net cash provided by operating activities



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

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SOURCE Navigator Gas

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