LONDON, May 28, 2020 /PRNewswire/ --
Highlights
- Navigator Holdings Ltd. (the "Company", "we", "our" and "us")
(NYSE: NVGS) reported operating revenue of $81.3 million for the three months ended
March 31, 2020, compared to
$76.1 million for the three months
ended March 31, 2019.
- A net loss of $8.5 million (or a
loss per share of $0.14) for the
three months ended March 31, 2020,
which includes COVID-19 related foreign exchange losses of
$3.7 million and a $3.0 million loss on the 50/50 joint venture (the
"Export Terminal Joint Venture") relating to the ethylene export
marine terminal at Morgan's
Point, Texas (the "Marine Export
Terminal") prior to the commencement of the take-or-pay contracts.
This results in a loss relating to our vessels of $1.8 million (or a loss per share of $0.03) compared to a net loss of $3.3 million (or a loss per share of $0.06) for the three months ended March 31, 2019.
- Adjusted EBITDA(1) was $26.0
million for the for the three months ended March 31, 2020, compared to $27.1 million for the three months ended
March 31, 2019.
- Fleet utilization improved to 89.0% for the three months ended
March 31, 2020 compared to 84.8% for
the three months ended March 31,
2019.
- In April 2020 a further long-term
throughput commitment was agreed for the Marine Export Terminal,
increasing total offtake commitments to approximately 95% of
nameplate capacity.
- In March 2020, the Company
collaborated with Pacific Gas Pte. Ltd. and Greater Bay Gas Co.
Ltd. to form and manage a pool of up to fourteen vessels ("Luna
Pool") commencing in the second quarter 2020. The Luna Pool will
focus on the transportation of ethylene and ethane to meet the
growing demands of our customers.
- We have achieved a record of 489 days without a
Lost-Time-Incident (LTI) across our in-house technical managed
fleet of 17 vessels.
- The conversion last year of Navigator Aurora to using ethane
for propulsion has resulted in carbon emissions decreasing by
approximately 25% for the first quarter, which is the equivalent of
taking around 5,000 cars off the road.
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
March 31,
2019
|
Three Months
Ended
March 31,
2020
|
Percentage
Change
|
|
(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:
- an increase in operating revenue of approximately $3.0 million attributable to an increase in
fleet utilization which rose from 84.8% for the three months ended
March 31, 2019 to 89.0% for the three months ended
March 31, 2020;
- an increase in operating revenue of approximately $0.6 million attributable to an increase in
vessel available days of 34 days or 1.0% for the three months ended
March 31, 2020 primarily due to an
increase in the number of ownership days for the leap year;
- an increase in operating revenue of approximately $4.2 million primarily attributable to an
increase in pass through voyage costs, as the number and duration
of voyage charters during the three months ended March 31,
2020 increased, compared to the three months ended March 31,
2019; and
- a decrease in operating revenue of approximately $2.6 million attributable to an decrease in
average monthly time charter equivalent rates, which decreased to
an average of approximately $634,350
per vessel per calendar month ($20,855 per day) for the three months ended
March 31, 2020, compared to an average of approximately
$662,526 per vessel per calendar
month ($21,782 per day) for the three
months ended March 31, 2019.
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
March 31, 2019
|
Three Months
Ended
March 31, 2020
|
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
March 31, 2019
|
Three Months
Ended
March 31, 2020
|
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
Built
|
Vessel Size
(CBM)
|
Employment
Status
|
Current
Cargo
|
Charter
Expiration Date
|
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
shares
|
Amount 0.01
par value
|
Additional
Paid-in Capital
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Retained
Earnings
|
Total
|
December 31,
2018
|
55,657,631
|
$
557
|
$
590,508
|
$
(363 )
|
$ 364,408
|
$ 955,110
|
Adjustment to equity
for the adoption of the new
leasing
standard
|
—
|
—
|
—
|
—
|
(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
shares
|
Amount 0.01
par value
|
Additional
Paid-in Capital
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Retained
Earnings
|
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
of the new credit losses
standard..........................................
|
—
|
—
|
—
|
—
|
(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
March 31,
2019
(in thousands)
|
Three months
ended
March 31,
2020
(in thousands)
|
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:
- the completion of the Company's quarter-end close procedures
and further financial review with respect to the Company's
financial statements for the quarter ended March 31, 2020, and other developments that may
arise between now and the disclosure of the Company's final results
for such quarter;
- global epidemics or other health crises such as the recent
outbreak of coronavirus 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,
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;
- 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.
- 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 expectations regarding the completion of construction and
financing of the Marine Export Terminal and the financial success
of the Marine Export Terminal and our related Export Terminal Joint
Venture with Enterprise Products Partners L.P.; 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.
View original
content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-first-quarter-2020-results-301067347.html
SOURCE Navigator Gas