Navigator Gas Fourth Quarter and Full Year 2023 Results
- Declaration of a cash dividend of $0.05 per share for Q4 2023.
- Total operating revenue of $141.6 million and net income of $17.8 million.
- EBITDA of $66.3 million and adjusted EBITDA of $71.7 million for Q4 2023.
- Plan to repurchase approximately $0.8 million of common stock.
- Increase in operational TCE to $28,428 and decrease in fleet utilization to 91.3%.
- Ethylene Export Terminal throughput of 208,495 metric tons in Q4 2023.
- Investment of $1.4 million in Azane for ammonia fuel handling.
- Implementation of Return of Capital policy with quarterly dividends and share repurchases.
- Upcoming Zoom conference call to discuss Q4 2023 financial results.
- None.
Insights
The recent declaration of a cash dividend by Navigator Holdings Ltd. indicates a positive return to shareholders, reflecting the company's financial stability and commitment to shareholder value. The dividend payout, coupled with the share repurchase program, suggests a strategic approach to capital allocation that aligns with the company's Return of Capital policy. This policy, which aims to distribute 25% of net income, could be appealing to income-focused investors and may influence the stock's attractiveness in the market.
Furthermore, the reported increase in net income and earnings per share (EPS) year-over-year signifies an improved financial performance, likely driven by operational efficiencies and favorable market conditions. The repayment of long-term debt also demonstrates prudent financial management, potentially enhancing the company's credit profile and reducing interest expenses in future periods.
The reported increase in average daily time charter equivalent (TCE) rates suggests a robust demand for Navigator Gas's services, which could be attributed to market dynamics such as the longer ton-miles due to the constrained Panama transit. However, the slight decrease in fleet utilization may warrant monitoring, as it could indicate market saturation or operational challenges. The handysize market assessments provide a bullish outlook for the sector, particularly for ethylene transport, which is likely benefiting from the increased demand for shipping due to longer transit routes.
The investment in the Ethylene Export Terminal Expansion Project is a forward-looking move that could position Navigator Gas advantageously in the growing market for gas exports. This expansion aligns with global energy trends and could result in increased throughput capacity and revenue streams. The capital expenditure involved in this expansion and its financing strategy, will be critical areas for stakeholder evaluation, as they may impact the company's leverage and liquidity profiles.
The strategic investment in Azane aligns with the broader industry shift towards green fuels, positioning Navigator Gas at the forefront of the transition to low-carbon shipping solutions. The focus on ammonia as a marine fuel is particularly noteworthy, given the maritime industry's search for viable alternatives to traditional fossil fuels. This joint venture could provide Navigator Gas with a competitive edge in a nascent market, potentially opening up new revenue streams and partnerships.
However, it is important to consider the risks associated with emerging technologies and markets, such as regulatory uncertainty and the pace of adoption. The projected delivery timeline for the green ammonia bunkering units also suggests a long-term horizon for any substantial impact on the company's financials. Stakeholders should weigh the potential for future value creation against the inherent risks of investing in unproven technologies and markets.
LONDON, March 13, 2024 (GLOBE NEWSWIRE) --
Financial Highlights
- On March 12, 2024, the Board of Navigator Holdings Ltd. (the "Company", “Navigator Gas”,"we", "our" and "us") (NYSE: NVGS) declared a cash dividend of
$0.05 per share, for the quarter ended December 31, 2023, (the “Dividend”) under the Company's Return of Capital policy. The Dividend will be payable on April 25, 2024, to all shareholders of record as of the close of business New York time on April 4, 2024. - Also as part of the Company's Return of Capital policy for the quarter ended December 31, 2023, the Company expects to repurchase approximately
$0.8 million common stock (the “Share Repurchases”) between March 13, 2024, and March 31, 2024, subject to operating needs, market conditions and other circumstances, such that the Dividend and Share Repurchases together equal25% of net income for the quarter ended December 31, 2023. - The Company reported total operating revenue of
$141.6 million for the three months ended December 31, 2023, compared to$123.3 million for the three months ended December 31, 2022. - Net Income attributable to stockholders' of the Company was
$17.8 million for the three months ended December 31, 2023, compared to$10.0 million for the three months ended December 31, 2022. - Earnings per share was
$0.24 for the three months ended December 31, 2023, compared to$0.13 per share for the three months ended December 31, 2022. Adjusted earnings per share which excludes realized and unrealized gains or losses on non-designated derivative instruments and profit and loss from sale of vessel, was$0.32 for the three months ended December 31, 2023. - EBITDA(1) was
$66.3 million for the three months ended December 31, 2023, compared to$58.5 million for the three months ended December 31, 2022. Adjusted EBITDA(1) was$71.7 million for the three months ended December 31, 2023, compared to$55.0 million for the three months ended December 31, 2022.
- The Company repaid
$23.8 million of the$111.8 million Term Loan and Revolving Credit Facility held with Credit Agricole on December 28, 2023 which resulted in an equal reduction in long-term debt outstanding and cash and cash equivalents. The amount repaid of$23.8 million remains available to be redrawn by the Company in accordance with the terms of the Term Loan and Revolving Credit Facility which matures in September 2028.
(1) EBITDA and Adjusted EBITDA are not measurements prepared in accordance with U.S. GAAP. EBITDA represents net income before net interest expense, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before profit/loss on sale of vessel, unrealized gain/loss on non-designated derivative instruments and foreign currency exchange gain or loss on senior secured bonds. Management believes that EBITDA and Adjusted EBITDA are useful to investors in evaluating the operating performance of the Company. EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to consolidated net income, cash generated from operations or any measure.
Other Highlights and Developments
Operational Update
Average daily time charter equivalent ("TCE") across the fleet increased to
During the fourth quarter of 2023, the handysize 12-month market assessment for semi-refrigerated and fully refrigerated vessels increased by
During the fourth quarter of 2023 we experienced downward pressure on ethylene arbitrage to Asia, however this was compensated by additional activity on the ethane spot and time charter ("TC") market. Low rainfall in Panama, and a subsequent reduction in available daily transits meant that ethane transport between US Gulf and China had to sail a longer distance via Cape of Good Hope. This resulted in longer ton-miles and more demand for shipping, which supported the handysize ethylene market assessment.
In the fourth quarter of 2023 we had approximately 30 vessels engaged under time charters, 17 vessels on spot voyage charters and contracts of affreightment ("CoA") and nine vessels were operated in the independently managed Unigas Pool. From January 1, 2024, and 12 months out, we have
Ethylene Export Terminal
The Ethylene Export Terminal throughput during the fourth quarter of 2023 was 208,495 metric tons, compared to 262,835 metric tons during the fourth quarter of 2022.
We, together with Enterprise Products Partners L.P, our joint venture partner, have agreed to invest in the Terminal Expansion Project, which is expected to increase the export capacity from approximately one million tons per year to at least 1.55 million tons. Long lead items have been ordered, groundwork is progressing and construction is expected to occur throughout 2024 with completion in the fourth quarter of 2024. The total capital contributions required from us to the Export Terminal Joint Venture for the Terminal Expansion Project are expected to be approximately
Azane Fuel Solutions AS ("Azane")
Azane, a joint venture between ECONNECT Energy AS and Amon Maritime AS, both of Norway, was founded in Norway in 2020 to develop proprietary technology and services for ammonia fuel handling and to facilitate the transition to green fuels for shipping. The Company acquired a
Azane intends to build the world’s first ammonia bunkering network, with Yara Clean Ammonia already pre-ordering 15 units from Azane. The first green ammonia bunkering units are scheduled to be delivered in 2025 enabling low carbon fuel offering to shipowners. The investment made by Yara and Navigator is expected to enable Azane to begin construction of its first bunkering unit for ammonia supply in Norway, aiming to kickstart the transition to zero-carbon fuels for maritime transportation. Future value creation for Azane is expected to come through international expansion with its bunkering solutions and broadening of its offerings in ammonia fuel handling technology.
Return of Capital Policy
The Company’s current Return of Capital policy, which is subject to operating needs and other circumstances, is based on paying out quarterly cash dividends of
As part of the Return of Capital policy, we expect to repurchase the Company’s common stock (the “Share Repurchases”) and any such Share Repurchases will be made via open market transactions, privately negotiated transactions or any other method permitted under U.S. securities laws and the rules of the U.S. Securities and Exchange Commission.
Declarations of any dividends in the future, and the amount of any such dividend, are subject to the discretion of the Company’s Board. The Return of Capital policy does not oblige the Company to pay any dividends or repurchase any of its shares in the future and it may be suspended, discontinued or modified by the Company at any time, for any reason. Further, the timing of any share repurchases under the Return of Capital policy will be determined by the Company’s management and will depend on market conditions, legal requirements, stock price, and other factors.
Navigator Gas Fourth Quarter 2023 Earnings Zoom Conference Call
On Thursday, March 14, 2024 at 10:00 A.M. E.D.T., the Company’s management team will host a Zoom conference call and slide presentation to discuss the financial results for the fourth quarter of 2023.
Those wishing to participate should register for the Zoom conference call using the following details:
https://us06web.zoom.us/webinar/register/WN_-8fJUJyZTzCtK7zntKuqHg#/registration
Webcast ID: 848 0163 7361
Passcode: 699933
Participants can also join by phone by dialing:
| United States: | +1 929 205 6099 |
| United Kingdom: | +44 330 088 5830 |
A full list of US and international numbers is available via the following link:
The Zoom conference call and slide presentation will be available for replay on Navigator Gas’ website (www.navigatorgas.com) under Financials and Quarterly Results in the Investors Centre section.
About Navigator Gas
We are the owner and operator of 56 liquefied gas carriers, which includes the world’s largest fleet of handysize gas carriers. We also own a
Our liquefied gas carrier fleet currently consists of 42 handysize liquefied gas carriers, which we define as those with capabilities between 15,000 and 24,999 cubic meters, or “cbm”. In addition, we have five larger 37,300 – 38,000 cbm midsize liquefied gas carriers; five 12,000 cbm ethylene carriers and four smaller 3,770 – 9,000 cbm semi-refrigerated liquefied gas carriers. Of our total fleet of 56 liquefied gas carriers, 25 are ethylene or ethane capable gas carriers.
Our handysize liquefied gas carriers typically transport LPG on short or medium distance routes that may be uneconomical for smaller vessels and can call at ports that are unable to support larger vessels due to limited onshore capacity, absence of fully-refrigerated loading or discharge infrastructure and/or vessel size restrictions. These handysize liquefied gas carriers are amongst the largest semi-refrigerated vessels in the world, which also makes them the ideal choice for transporting petrochemicals on long routes, typically intercontinental.
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’. We carry LPG typically for major international energy companies, state-owned utilities and reputable commodities traders. LPG, which consists of propane and butane, is a relatively clean alternative energy source with more than 1,000 applications, including as a heating, cooking and transportation fuel and as a petrochemical and refinery feedstock. LPG is a by-product of oil refining and natural gas extraction, and shale gas, principally from the U.S.
We also carry petrochemical gases for numerous industrial users. Petrochemical gases, including ethylene, propylene, butadiene and vinyl chloride monomer, are derived from the cracking of petroleum feedstocks such as ethane, LPG and naphtha and are primarily used as raw materials in various industrial processes, like the manufacture of plastics, vinyl and rubber, with a wide application of end uses. Our vessels also carry ammonia mainly for the producers of fertilizers in the agricultural industry, and for ammonia traders.
Our
Navigator Gas’ common stock trades on the New York Stock Exchange under the symbol “NVGS”.
Contact us
investorrelations@navigatorgas.com and randy.giveans@navigatorgas.com
| Houston: | 333 Clay Street, Suite 2480, Houston, Texas, U.S.A. 77002 |
| Tel: | +1 713 373 6197 |
| London: | 10 Bressenden Place, London, SW1E 5DH. United Kingdom. |
| Tel: | +44 20 7340 4850 |
Unaudited Results of Operations for the three months ended December 31, 2023 compared to the three months ended December 31, 2022
| Three months ended December 31, 2022 | Three months ended December 31, 2023 | Percentage change | ||||||
| (in thousands, except Percentage change) | ||||||||
| Operating revenues | $ | 105,115 | $ | 129,068 | 22.8 | % | ||
| Operating revenues – Unigas Pool | 11,837 | 12,564 | 6.1 | % | ||||
| Operating revenues – Luna Pool collaborative arrangements | 6,333 | — | (100.0)% | |||||
| Total operating revenue | 123,285 | 141,632 | 14.9 | % | ||||
| Expenses: | ||||||||
| Brokerage commission | 1,494 | 1,706 | 14.2 | % | ||||
| Voyage expenses | 16,865 | 18,115 | 7.4 | % | ||||
| Voyage expenses – Luna Pool collaborative arrangements | 5,533 | — | (100.0)% | |||||
| Vessel operating expenses | 43,924 | 46,715 | 6.4 | % | ||||
| Depreciation and amortization | 30,559 | 32,828 | 7.4 | % | ||||
| General and administrative costs | 8,389 | 8,878 | 5.8 | % | ||||
| Loss/(profit) from sale of vessel | (4,363 | ) | 144 | — | ||||
| Other income | (105 | ) | 36 | 133.8 | % | |||
| Total operating expenses | 102,296 | 108,422 | 6.0 | % | ||||
| Operating Income | 20,989 | 33,210 | 58.2 | % | ||||
| Other income/(expense) | ||||||||
| Foreign currency exchange loss on senior secured bond | (5,969 | ) | — | (100.0)% | ||||
| Realized gain on non-designated derivative instruments | 6,888 | — | (100.0)% | |||||
| Unrealized loss on non-designated derivative instruments | (471 | ) | (5,254 | ) | 1015.4 | % | ||
| Loss on repayment of senior bonds | (1,102 | ) | — | (100.0)% | ||||
| Write off of deferred financing costs | (212 | ) | — | (100.0)% | ||||
| Interest expense | (13,983 | ) | (16,355 | ) | 17.0 | % | ||
| Interest income | 713 | 2,060 | 188.9 | % | ||||
| Income before taxes and share of result of equity method investments | 6,853 | 13,661 | 99.3 | % | ||||
| Income taxes | (4,459 | ) | (56 | ) | (98.7)% | |||
| Share of result of equity method investments | 7,861 | 5,540 | (29.5)% | |||||
| Net Income | 10,255 | 19,145 | 86.7 | % | ||||
| Net income attributable to non-controlling interest | (287 | ) | (1,394 | ) | 385.6 | % | ||
| Net Income attributable to stockholders ofNavigator Holdings Ltd. | $ | 9,968 | $ | 17,751 | 78.1 | % | ||
Operating Revenues. Operating revenues, net of address commissions, was
- an increase in operating revenues of approximately
$19.3 million attributable to an increase in average monthly time charter equivalent rates, which increased to an average of approximately$28,428 per vessel per day ($864,670 per vessel per calendar month) for the three months ended December 31, 2023, compared to an average of approximately$23,622 per vessel per day ($718,539 per vessel per calendar month) for the three months ended December 31, 2022; - an decrease in operating revenues of approximately
$3.4 million attributable to a decrease in fleet utilization, which declined to91.3% for the three months ended December 31, 2023, compared to94.1% for the three months ended December 31, 2022; - an increase in operating revenues of approximately
$6.8 million or7.7% , attributable to a 305 day increase in vessel available days for the three months ended December 31, 2023, compared to the three months ended December 31, 2022. This increase was in part as a result of five handysize vessels acquired by the Navigator Greater Bay Joint Venture being fully operational during the three months ended December 31, 2023, compared to the three months ended December 31, 2022, in which only one vessel had been acquired and was operational for only 12 days. - a increase in operating revenues of approximately
$1.2 million primarily attributable to an increase in pass through voyage costs for the three months ended December 31, 2023, compared to the three months ended December 31, 2022.
The following table presents selected operating data for the three months ended December 31, 2023, and 2022, which we believe are useful in understanding the basis of movements in our operating revenues.
| Three months ended December 31, 2022 | Three months ended December 31, 2023 | |||||
| * Fleet Data: | ||||||
| Weighted average number of vessels | 44.0 | 47.0 | ||||
| Ownership days | 4,048 | 4,324 | ||||
| Available days | 3,968 | 4,273 | ||||
| Earning days | 3,736 | 3,903 | ||||
| Fleet utilization | 94.1 | % | 91.3 | % | ||
| ** Average daily Time Charter Equivalent | ||||||
* Fleet Data - Our nine owned smaller vessels in the independently managed Unigas Pool and the vessels owned by Pacific Gas in our Luna Pool prior to their acquisition by the Navigator Greater Bay Joint Venture are not included in this data.
** Non-GAAP Financial Measure—Time charter equivalent: Time charter equivalent (“TCE”) is a measure of the average daily revenue performance of a vessel. TCE is not calculated in accordance with U.S. GAAP. For all charters, we calculate TCE by dividing total operating revenues (excluding collaborative arrangements and revenues from the Unigas Pool), less any voyage expenses (excluding collaborative arrangements), by the number of earning days for the relevant period. TCE excludes the effects of the collaborative arrangements, as earning days and fleet utilization, on which TCE is based, is calculated for our owned vessels, and not the average of all pool vessels. Under a time charter, the charterer pays substantially all of the vessel's voyage related expenses, whereas for voyage charters, also known as spot market charters, we pay all voyage expenses. TCE 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., voyage charters, time charters and contracts of affreightment) under which the vessels may be employed. We include average daily TCE, as we believe it provides additional meaningful information in conjunction with net operating revenues. Our calculation of TCE may not be comparable to that reported by other companies.
Reconciliation of Operating Revenues to TCE
The following table represents a reconciliation of operating revenues to TCE. Operating revenues are the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
| Three months ended December 31, 2022 | Three months ended December 31, 2023 | |||
| (in thousands, except earning days and average daily time charter equivalent rate) | ||||
| Fleet Data: | ||||
| *** Operating revenue | $ | 105,115 | $ | 129,068 |
| *** Voyage expenses | 16,865 | 18,115 | ||
| Operating revenue less voyage expenses | 88,250 | 110,953 | ||
| Earning days | 3,736 | 3,903 | ||
| Average daily time charter equivalent rate | $ | 23,622 | $ | 28,428 |
***Operating revenues and voyage expenses excluding collaborative arrangements and Unigas Pool.
Operating Revenues – Unigas Pool. Operating revenues – Unigas Pool was
Operating Revenues – Luna Pool Collaborative Arrangements. Luna Pool earnings are aggregated and then allocated (after deducting pool overheads and manager's fees) to the pool participants in accordance with the Pooling Agreement. Operating revenues - Luna Pool collaborative arrangements was $nil for the three months ended December 31, 2023, compared to
Brokerage Commissions. Brokerage commissions, which typically vary between
Voyage Expenses. Voyage expenses increased by
Voyage Expenses – Luna Pool Collaborative Arrangements. Voyage expenses – Luna Pool collaborative arrangements was $nil for the three months ended December 31, 2023, compared to
Vessel Operating Expenses. Vessel operating expenses increased by
Depreciation and Amortization. Depreciation and amortization increased by
General and Administrative Costs. General and administrative costs increased by
Non-Operating Results
Foreign Currency Exchange Gain on Senior Secured Bonds. In December 2022, we redeemed all of the 600 million Norwegian Kroner then outstanding principal amount of our senior secured bonds (the “2018 Bonds”). No exchange gains and losses were recorded for the three months ended December 31, 2023. A foreign currency exchange gain of
Realized Gain on Cross Currency Interest Rate Swap. The realized gain of
Unrealized Gains / (Losses) on Non-Designated Derivative Instruments. The unrealized loss of
Interest Expense. Interest expense increased by
Income Taxes. Income taxes relate to taxes on our subsidiaries and businesses incorporated around the world including those incorporated in the United States of America. Income taxes is
Share of Result of Equity Method Investments. The share of the result of the Company’s
Non-Controlling Interest. The Company entered into a sale and leaseback arrangement in November 2019 with a wholly-owned special purpose vehicle of a financial institution (“Lessor SPV”). Although we do not hold any equity investments in this Lessor SPV, we have determined that we are the primary beneficiary of this entity and accordingly we are required to consolidate this Variable Interest Entity ("VIE") into our financial results. The net income attributable to the Lessor SPV was
In September 2022, the Company entered into the Navigator Greater Bay Joint Venture to acquire five ethylene vessels, Navigator Luna, Navigator Solar, Navigator Castor, Navigator Equator and Navigator Vega. The joint venture is owned
Reconciliation of Non-GAAP Financial Measures
The following table shows a reconciliation of net income to EBITDA and Adjusted EBITDA for the three months and year ended December 31, 2023 and 2022:
| Three months ended | Year ended | ||||||||||
| December 31, 2022 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| (in thousands) | (in thousands) | ||||||||||
| Net income | $ | 10,255 | $ | 19,145 | $ | 54,878 | $ | 86,872 | |||
| Net interest expense | 13,270 | 14,296 | 49,758 | 59,192 | |||||||
| Income taxes | 4,459 | 56 | 5,949 | 4,325 | |||||||
| Depreciation and amortization | 30,559 | 32,828 | 126,220 | 129,202 | |||||||
| EBITDA(1) | $ | 58,543 | $ | 66,325 | $ | 236,805 | $ | 279,591 | |||
| Unrealized loss/(gain) on non-designated derivative instruments | 471 | 5,254 | (25,124 | ) | 7,282 | ||||||
| Realized (gain)/loss on non-designated derivatives instruments | (6,888 | ) | — | 6,270 | — | ||||||
| Loss on repayment of senior bonds | 1,102 | — | 1,102 | — | |||||||
| Write off of deferred financing costs | 212 | — | 212 | 171 | |||||||
| Foreign currency exchange loss/(gain) on senior secured bond | 5,969 | — | (6,589 | ) | — | ||||||
| (Profit)/Loss from sale of vessel | (4,363 | ) | 144 | (4,721 | ) | (4,797 | ) | ||||
| Adjusted EBITDA(1) | $ | 55,046 | $ | 71,723 | $ | 207,955 | $ | 282,247 | |||
(1) EBITDA and Adjusted EBITDA are not measurements prepared in accordance with U.S. GAAP. EBITDA represents net income before net interest expense, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before profit/loss on sale of vessel, unrealized gain/loss on non-designated derivative instruments and foreign currency exchange gain or loss on senior secured bonds. Management believes that EBITDA and Adjusted EBITDA are useful to investors in evaluating the operating performance of the Company. EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to consolidated net income, cash generated from operations or any measure.
Liquidity and Capital Resources
Liquidity and Cash Needs
Our primary sources of funds are cash and cash equivalents, cash from operations, undrawn bank borrowings and proceeds from bond issuances. As of December 31, 2023, we had cash, cash equivalents and restricted cash of
The Company repaid
Our secured term loan facilities and revolving credit facilities require that the borrowers have liquidity of no less than (i)
Our primary uses of funds are drydocking and other vessel maintenance expenditures, voyage expenses, vessel operating expenses, general and administrative costs, insurance costs, expenditures incurred in connection with ensuring that our vessels comply with international and regulatory standards, financing expenses, quarterly repayment of bank loans and the Terminal Expansion Project. We also expect to use funds in connection with our Return of Capital policy. In addition our medium-term and long-term liquidity needs relate to debt repayments, repayment of bonds, potential future vessel newbuildings, related investments, vessel acquisitions, and or related port or terminal projects.
As of December 31, 2023, we had
We believe, given our current cash balances, that our financial resources, including the cash expected to be generated within the year, will be sufficient to meet our liquidity and working capital needs for at least the next twelve months, taking into account our existing capital commitments and debt service requirements.
Capital Expenditures
Liquefied gas transportation by sea is a capital-intensive business, requiring significant investment to maintain an efficient fleet and to stay in regulatory compliance.
We currently have no newbuildings on order. However, we may place newbuilding orders or acquire additional vessels as part of our growth strategy. We may invest further in terminal infrastructure, such as the expansion of our existing Ethylene Export Terminal. The total capital contributions required from us related to the Terminal Expansion Project are expected to be approximately
Cash Flows
The following table summarizes our cash, cash equivalents and restricted cash provided by / (used in) operating, investing and financing activities for the twelve months ended December 31, 2023 and 2022:
| Year ended December 31, 2022 | Year ended December 31, 2023 | |||||
| (in thousands) | ||||||
| Net cash provided by operating activities | $ | 130,308 | $ | 174,703 | ||
| Net cash provided by/(used in) investing activities1 | 29,725 | (176,481 | ) | |||
| Net cash (used in)/provided by financing activities1 | (128,225 | ) | 6,809 | |||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,837 | ) | 17 | |||
| Net increase in cash, cash equivalents and restricted cash | $ | 28,971 | $ | 5,048 | ||
Operating Cash Flows. Net cash provided by operating activities for the twelve months ended December 31, 2023, increased to
Net cash flow from operating activities principally depends upon charter rates attainable, fleet utilization, fluctuations in working capital balances, repairs and maintenance activity, amount and duration of drydocks and changes in foreign currency rates.
We are required to drydock each vessel once every five years until it reaches 15 years of age, after which we drydock vessels approximately every two and a half years. Drydocking each vessel, including travelling to and from the drydock, can take approximately 30 days in total being approximately 5-10 days of voyage time to and from the shipyard and approximately 15-20 days of actual drydocking time. Ten of our vessels completed their respective drydockings during the twelve months ended December 31, 2023,
We estimate the current cost of a five-year drydocking for one of our vessels is approximately
Investing Cash Flows1. Net cash used in investing activities was
Net cash provided by investing activities of
Financing Cash Flows. Net cash provided by financing activities was
Net cash used in financing activities of
Condensed Consolidated Statements of Operations
(Unaudited)
| Three months ended December 31, | Year ended December 31, | |||||||||||
| 2022 | 2023 | 2022 | 2023 | |||||||||
| (in thousands except share and per share data) | ||||||||||||
| Revenues | ||||||||||||
| Operating revenues | $ | 105,115 | $ | 129,068 | $ | 405,346 | $ | 493,339 | ||||
| Operating revenues – Unigas Pool | 11,837 | 12,564 | 46,345 | 50,043 | ||||||||
| Operating revenues – Luna Pool collaborative arrangements | 6,333 | — | 22,101 | 7,355 | ||||||||
| Total operating revenue | 123,285 | 141,632 | 473,792 | 550,737 | ||||||||
| Expenses | ||||||||||||
| Brokerage commission | 1,494 | 1,706 | 5,900 | 6,923 | ||||||||
| Voyage expenses | 16,865 | 18,115 | 78,674 | 74,509 | ||||||||
| Voyage expenses – Luna Pool collaborative arrangements | 5,533 | — | 20,716 | 5,561 | ||||||||
| Vessel operating expenses | 43,924 | 46,715 | 159,266 | 170,952 | ||||||||
| Depreciation and amortization | 30,559 | 32,828 | 126,220 | 129,202 | ||||||||
| General and administrative costs | 8,389 | 8,878 | 27,439 | 31,213 | ||||||||
| Loss/(profit) from sale of vessel | (4,363 | ) | 144 | (4,721 | ) | (4,797 | ) | |||||
| Other income | (105 | ) | 36 | (364 | ) | (60 | ) | |||||
| Total operating expenses | 102,296 | 108,422 | 413,130 | 413,503 | ||||||||
| Operating Income | 20,989 | 33,210 | 60,662 | 137,234 | ||||||||
| Other income/(expense) | ||||||||||||
| Foreign currency exchange (loss)/gain on senior secured bonds | (5,969 | ) | — | 6,589 | — | |||||||
| Realized gain/(loss) on cross currency interest rate swap | 6,888 | — | (6,270 | ) | — | |||||||
| Unrealized (loss)/gain on non-designated derivative instruments | (471 | ) | (5,254 | ) | 25,124 | (7,282 | ) | |||||
| Loss on repayment of senior bonds | (1,102 | ) | — | (1,102 | ) | — | ||||||
| Write off of deferred financing costs | (212 | ) | — | (212 | ) | (171 | ) | |||||
| Interest expense | (13,983 | ) | (16,355 | ) | (50,840 | ) | (64,898 | ) | ||||
| Interest income | 713 | 2,060 | 1,082 | 5,707 | ||||||||
| Income before taxes and share of result of equity method investments | 6,853 | 13,661 | 35,033 | 70,590 | ||||||||
| Income taxes | (4,459 | ) | (56 | ) | (5,949 | ) | (4,325 | ) | ||||
| Share of result of equity method investments | 7,861 | 5,540 | 25,794 | 20,607 | ||||||||
| Net Income | 10,255 | 19,145 | 54,878 | 86,872 | ||||||||
| Net income attributable to non-controlling interest | (287 | ) | (1,394 | ) | (1,405 | ) | (4,617 | ) | ||||
| Net Income attributable to stockholders of Navigator Holdings Ltd. | $ | 9,968 | $ | 17,751 | $ | 53,473 | $ | 82,255 | ||||
| Earnings per share attributable to stockholders of Navigator Holdings Ltd.: | ||||||||||||
| Basic: | $ | 0.13 | $ | 0.24 | $ | 0.69 | $ | 1.11 | ||||
| Diluted: | $ | 0.13 | $ | 0.24 | $ | 0.69 | $ | 1.10 | ||||
| Dividend Paid | $ | — | $ | 0.05 | $ | — | $ | 0.10 | ||||
| Weighted average number of shares outstanding in the period: | ||||||||||||
| Basic: | 77,264,139 | 73,265,815 | 77,234,830 | 74,096,284 | ||||||||
| Diluted: | 77,574,995 | 73,813,208 | 77,558,494 | 74,607,449 | ||||||||
| Number of shares outstanding at the end of the period: | 76,804,474 | 73,208,586 | 76,804,474 | 73,208,586 | ||||||||
Condensed Consolidated Statements of Comprehensive Income
(Unaudited)
| Three months ended December 31, 2022 | Three months ended December 31, 2023 | Year ended December 31, 2022 | Year ended December 31, 2023 | ||||||||
| (in thousands) | |||||||||||
| Net income | $ | 10,255 | $ | 19,145 | $ | 54,878 | $ | 86,872 | |||
| Other comprehensive income: | |||||||||||
| Foreign currency translation (loss)/income | (141 | ) | (49 | ) | (215 | ) | 311 | ||||
| Total comprehensive income | 10,114 | 19,096 | 54,663 | 87,183 | |||||||
| Total comprehensive income attributable to: | |||||||||||
| Stockholders of Navigator Holdings Ltd. | 9,827 | 17,702 | 53,263 | 82,566 | |||||||
| Non-controlling interest | 287 | 1,394 | 1,400 | 4,617 | |||||||
| Total comprehensive income | $ | 10,114 | $ | 19,096 | $ | 54,663 | $ | 87,183 | |||
Condensed Consolidated Balance Sheets
(Unaudited)
| As at December 31, 2022 | As at December 31, 2023 | |||||
| (in thousands, except share data) | ||||||
| Assets | ||||||
| Current Assets | ||||||
| Cash, cash equivalents and restricted cash | $ | 153,194 | $ | 158,242 | ||
| Accounts receivable, net of allowance for credit losses | 18,245 | 34,653 | ||||
| Accrued income | 9,367 | 2,437 | ||||
| Prepaid expenses and other current assets | 21,152 | 17,068 | ||||
| Bunkers and lubricant oils | 8,548 | 9,044 | ||||
| Insurance receivable | 1,452 | 526 | ||||
| Amounts due from related parties | 16,363 | 33,402 | ||||
| Total current assets | 228,321 | 255,372 | ||||
| Non-current Assets | ||||||
| Vessels, net | 1,692,494 | 1,754,382 | ||||
| Property, plant and equipment, net | 198 | 142 | ||||
| Intangible assets, net of accumulated amortization | 239 | 332 | ||||
| Equity method investments | 148,534 | 174,910 | ||||
| Derivative assets | 21,955 | 14,674 | ||||
| Right-of-use asset for operating leases | 3,625 | 2,873 | ||||
| Prepaid expenses and other non-current assets | 1,372 | — | ||||
| Total non-current assets | 1,868,417 | 1,947,313 | ||||
| Total Assets | $ | 2,096,738 | $ | 2,202,685 | ||
| Liabilities and Stockholders’ Equity | ||||||
| Current Liabilities | ||||||
| Current portion of secured term loan facilities, net of deferred financing costs | $ | 99,009 | $ | 120,327 | ||
| Current portion of operating lease liabilities | 219 | 914 | ||||
| Accounts payable | 7,773 | 11,643 | ||||
| Accrued expenses and other liabilities | 24,708 | 20,847 | ||||
| Accrued interest | 4,211 | 5,488 | ||||
| Deferred income | 23,108 | 25,617 | ||||
| Amounts due to related parties | 595 | 606 | ||||
| Total current liabilities | 159,623 | 185,442 | ||||
| Non-current Liabilities | ||||||
| Secured term loan facilities and revolving credit facilities, net of current portion and deferred financing costs | 608,338 | 641,975 | ||||
| Senior unsecured bond, net of deferred financing costs | 98,943 | 90,336 | ||||
| Operating lease liabilities, net of current portion | 4,032 | 3,500 | ||||
| Deferred tax liabilities | 4,250 | 7,016 | ||||
| Amounts due to related parties | 48,140 | 41,342 | ||||
| Total non-current liabilities | 763,703 | 784,169 | ||||
| Total Liabilities | 923,326 | 969,611 | ||||
| Commitments and Contingencies - Note 11 | ||||||
| Stockholders’ Equity | ||||||
| Common stock— | 769 | 733 | ||||
| Additional paid-in capital | 798,188 | 799,472 | ||||
| Accumulated other comprehensive loss | (463 | ) | (152 | ) | ||
| Retained earnings | 364,000 | 390,221 | ||||
| Total Navigator Holdings Ltd. Stockholders’ Equity | 1,162,494 | 1,190,274 | ||||
| Non-controlling interest | 10,918 | 42,800 | ||||
| Total equity | 1,173,412 | 1,233,074 | ||||
| Total Liabilities and Stockholders’ Equity | $ | 2,096,738 | $ | 2,202,685 | ||
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Year Ended December 31, 2022 | Year Ended December 31, 2023 | |||||
| (in thousands) | ||||||
| Cash flows from operating activities | ||||||
| Net income | $ | 54,878 | $ | 86,872 | ||
| Adjustments to reconcile net income/(loss) to net cash provided by operating activities | ||||||
| Foreign exchange gain on senior secured bonds | (6,589 | ) | — | |||
| Unrealized (gain)/loss on non-designated derivative instruments | (25,124 | ) | 7,282 | |||
| Realized loss on cross currency interest rate swap | 6,270 | — | ||||
| Depreciation and amortization | 126,220 | 129,202 | ||||
| Payment of drydocking costs | (18,338 | ) | (12,424 | ) | ||
| Profit from sale of vessel | (4,721 | ) | (4,797 | ) | ||
| Share-based compensation expense | 869 | 1,284 | ||||
| Amortization of deferred financing costs | 3,863 | 3,716 | ||||
| Share of results of equity method investments | (25,794 | ) | (20,607 | ) | ||
| Deferred taxes | — | 2,363 | ||||
| Other unrealized foreign exchange loss/(gain) | 2,872 | (159 | ) | |||
| Changes in operating assets and liabilities | ||||||
| Accounts receivable | 13,661 | (16,408 | ) | |||
| Insurance claim receivable | (3,858 | ) | 400 | |||
| Bunkers and lubricant oils | 3,958 | (496 | ) | |||
| Accrued income, prepaid expenses and other current assets | (9,541 | ) | 11,013 | |||
| Accounts payable, accrued interest, accrued expenses and other liabilities | 10,478 | 4,501 | ||||
| Amounts due from related parties | 1,204 | (17,039 | ) | |||
| Net cash provided by operating activities | 130,308 | 174,703 | ||||
| Cash flows from investing activities | ||||||
| Additions to vessels and equipment | (45,719 | ) | (191,727 | ) | ||
| Contributions to equity method investments | — | (36,558 | ) | |||
| Distributions from equity method investments | 27,469 | 30,790 | ||||
| Purchase of other property, plant and equipment and intangibles | (50 | ) | (233 | ) | ||
| Net proceeds from sale of vessel | 38,762 | 20,720 | ||||
| Insurance recoveries | 9,263 | 527 | ||||
| Net cash provided by/(used in) investing activities | 29,725 | (176,481 | ) | |||
| Cash flows from financing activities | ||||||
| Proceeds from secured term loan facilities and revolving credit facilities | 139,273 | 323,561 | ||||
| Direct financing cost of secured term loan and revolving credit facilities | (1,874 | ) | (3,548 | ) | ||
| Repayment of senior bonds | (61,564 | ) | — | |||
| Repurchase of share capital | (5,485 | ) | (48,736 | ) | ||
| Settlement of derivatives | (11,322 | ) | — | |||
| Repayments under operating lease obligations | — | (289 | ) | |||
| Purchase of senior unsecured bonds | — | (9,000 | ) | |||
| Repayment of secured term loan facilities and revolving credit facilities | (186,430 | ) | (268,311 | ) | ||
| Repayment of refinancing of vessel to related parties | (6,738 | ) | (6,798 | ) | ||
| Cash received from non-controlling interest | 5,915 | 27,264 | ||||
| Dividend paid | — | (7,334 | ) | |||
| Net cash (used in)/provided by financing activities | (128,225 | ) | 6,809 | |||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,837 | ) | 17 | |||
| Net increase in cash, cash equivalents and restricted cash | 28,971 | 5,048 | ||||
| Cash, cash equivalents and restricted cash at beginning of year | 124,223 | 153,194 | ||||
| Cash, cash equivalents and restricted cash at end of year | $ | 153,194 | $ | 158,242 | ||
| Supplemental Information | ||||||
| Total interest paid during the year, net of amounts capitalized | $ | 48,600 | $ | 62,109 | ||
| Total tax paid during the year | $ | 2,438 | $ | 1,800 | ||
Our Fleet
The following table provides details of our vessels as of March 13, 2024:
| Operating Vessel | Year Built | Vessel Size (cbm) | Employment Status | Current Cargo | Time Charter Expiration Date |
| Ethylene/ethane capable semi-refrigerated midsize | |||||
| Navigator Aurora | 2016 | 37,300 | Time Charter | Ethane | December 2026 |
| Navigator Eclipse | 2016 | 37,300 | Time Charter | Ethane | March 2026 |
| Navigator Nova | 2017 | 37,300 | Time Charter | Ethane | September 2026 |
| Navigator Prominence | 2017 | 37,300 | Time Charter | Ethane | March 2025 |
| Ethylene/ethane capable semi-refrigerated handysize | |||||
| Navigator Pluto* | 2000 | 22,085 | Time Charter | Ethane | March 2024 |
| Navigator Saturn* | 2000 | 22,085 | Time Charter | Ethane | June 2024 |
| Navigator Venus* | 2000 | 22,085 | Spot Market | Ethane | — |
| Navigator Atlas* | 2014 | 21,000 | Spot Market | Ethane | May 2024 |
| Navigator Europa* | 2014 | 21,000 | Time Charter | Ethane | December 2024 |
| Navigator Oberon* | 2014 | 21,000 | Spot Market | Ethane | — |
| Navigator Triton* | 2015 | 21,000 | Spot Market | Ethane | — |
| Navigator Umbrio* | 2015 | 21,000 | Time Charter | Ethane | January 2025 |
| Navigator Luna* | 2018 | 17,000 | Spot Market | Ethylene | — |
| Navigator Solar* | 2018 | 17,000 | Spot Market | Ethylene | — |
| Navigator Castor* | 2019 | 22,000 | Spot Market | Ethylene | — |
| Navigator Equator* | 2019 | 22,000 | Time Charter | Ethane | June 2024 |
| Navigator Vega* | 2019 | 22,000 | Time Charter | Ethylene | April 2024 |
| Ethylene/ethane capable semi-refrigerated smaller size | |||||
| Happy Condor** | 2008 | 9,000 | Unigas Pool | — | — |
| Happy Pelican** | 2012 | 6,800 | Unigas Pool | — | — |
| Happy Penguin** | 2013 | 6,800 | Unigas Pool | — | — |
| Happy Kestrel** | 2013 | 12,000 | Unigas Pool | — | — |
| Happy Osprey** | 2013 | 12,000 | Unigas Pool | — | — |
| Happy Peregrine** | 2014 | 12,000 | Unigas Pool | — | — |
| Happy Albatross** | 2015 | 12,000 | Unigas Pool | — | — |
| Happy Avocet** | 2017 | 12,000 | Unigas Pool | — | — |
| Semi-refrigerated handysize | |||||
| Navigator Aries | 2008 | 20,750 | Time Charter | LPG | July 2024 |
| Navigator Capricorn | 2008 | 20,750 | Time Charter | LPG | October 2024 |
| Navigator Gemini | 2009 | 20,750 | — | — | — |
| Navigator Pegasus | 2009 | 22,200 | Time Charter | Propylene | March 2024 |
| Navigator Phoenix | 2009 | 22,200 | Time Charter | Ammonia | September 2024 |
| Navigator Scorpio | 2009 | 20,750 | Time Charter | LPG | January 2026 |
| Navigator Taurus | 2009 | 20,750 | Time Charter | Ammonia | June 2024 |
| Navigator Virgo | 2009 | 20,750 | Time Charter | LPG | April 2024 |
| Navigator Leo | 2011 | 20,600 | Time Charter | LPG | December 2024 |
| Navigator Libra | 2012 | 20,600 | Time Charter | LPG | March 2025 |
| Atlantic Gas | 2014 | 22,000 | Time Charter | LPG | December 2024 |
| Adriatic Gas | 2015 | 22,000 | Time Charter | LPG | May 2024 |
| Balearic Gas | 2015 | 22,000 | — | — | — |
| Celtic Gas | 2015 | 22,000 | Spot Market | LPG | April 2024 |
| Navigator Centauri | 2015 | 21,000 | Time Charter | LPG | May 2025 |
| Navigator Ceres | 2015 | 21,000 | Time Charter | LPG | June 2025 |
| Navigator Ceto | 2016 | 21,000 | Time Charter | LPG | May 2025 |
| Navigator Copernico | 2016 | 21,000 | Time Charter | LPG | May 2025 |
| Bering Gas | 2016 | 22,000 | Spot Market | LPG | — |
| Navigator Luga | 2017 | 22,000 | Time Charter | LPG | July 2024 |
| Navigator Yauza | 2017 | 22,000 | Time Charter | LPG | July 2024 |
| Arctic Gas | 2017 | 22,000 | — | — | — |
| Pacific Gas | 2017 | 22,000 | Time Charter | LPG | May 2024 |
| Semi-refrigerated smaller size | |||||
| Happy Falcon** | 2002 | 3,770 | Unigas Pool | — | — |
| Fully-refrigerated | |||||
| Navigator Glory | 2010 | 22,500 | Time Charter | Ammonia | June 2025 |
| Navigator Grace | 2010 | 22,500 | Time Charter | Ammonia | January 2025 |
| Navigator Galaxy | 2011 | 22,500 | Time Charter | Ammonia | December 2024 |
| Navigator Genesis | 2011 | 22,500 | Time Charter | Ammonia | January 2025 |
| Navigator Global | 2011 | 22,500 | Time Charter | Ammonia | December 2024 |
| Navigator Gusto | 2011 | 22,500 | Time Charter | Ammonia | March 2025 |
| Navigator Jorf | 2017 | 38,000 | Time Charter | Ammonia | August 2027 |
* denotes our owned vessels that operate within the Luna Pool
** denotes our owned vessels that operate within the independently managed Unigas Pool
Category: Financial
1 In connection with the preparation of the Company’s consolidated financial statements for the three months ended March 31, 2023, a reclassification was made in relation to cash received from the non-controlling interest in the Navigator Greater Bay Joint Venture in our statement of cash flows presented in our consolidated financial statements for the year ended December 31, 2022. A receipt of
FAQ
What was the cash dividend declared by Navigator Holdings Ltd. for Q4 2023?
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What was the net income attributable to stockholders' of Navigator Holdings Ltd. for Q4 2023?
What was the EBITDA reported by Navigator Holdings Ltd. for Q4 2023?
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What was the Ethylene Export Terminal throughput for Q4 2023?
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