Navigator Holdings Ltd. Preliminary Fourth Quarter and Financial Year 2020 Results (Unaudited)
Navigator Holdings Ltd. (NYSE: NVGS) reported an operating revenue of $87.4 million for Q4 2020, up from $76.1 million in Q4 2019, marking a 14.9% increase. The annual revenue for 2020 reached $332.5 million, compared to $301.4 million in 2019. Despite a net loss of $0.4 million for the year, the company achieved net income of $3.4 million in Q4. Fleet utilization was 91.0% for Q4 2020. The Marine Export Terminal was operational with a commitment of 938,000 tons of ethylene annually. COVID-19 continues to pose challenges, impacting trade and operations.
- Q4 operating revenue increased by 14.9% year-over-year to $87.4 million.
- Annual operating revenue for 2020 was $332.5 million, a growth of 10.3%.
- Achieved net income of $3.4 million for Q4 2020, marking the third consecutive profitable quarter.
- Successfully completed the ethylene cryogenic storage tank at the Marine Export Terminal.
- Fleet utilization improved to 91.0% in Q4 2020.
- Net loss of $0.4 million for the year ended December 31, 2020.
- Operational disruptions at the Marine Export Terminal due to mechanical integrity concerns.
- Foreign currency exchange loss of $6.9 million impacting Q4 results.
LONDON, 18 March 2021 /PRNewswire/ --
Highlights
- Navigator Holdings Ltd. (the "Company", "we", "our" and "us") (NYSE: NVGS) reported operating revenue of
$87.4 million for the three months ended December 31, 2020, compared to$76.1 million for the three months ended December 31, 2019. Operating revenue for the year ended December 31, 2020, amounted to$332.5 million , compared to$301.4 for the year ended December 31, 2019. - Net income was
$3.4 million (earnings per share of$0.06 ) for the three months ended December 31, 2020, the third consecutive profitable quarter. The net loss for the year ended December 31, 2020 was$0.4 million . - Adjusted EBITDA(1) was
$32.0 million for the three months ended December 31, 2020, comprising$29.9 million from the operations of the vessels and$2.1 million from our 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"). Adjusted EBITDA(1) was$124.2 million for the year ended December 31, 2020, comprising$118.4 million from the operations of the vessels and$5.8 million the Export Terminal Joint Venture. - Fleet utilization was
91.0% for the three months ended December 31, 2020, and86.8% for the year ended December 31, 2020. - Successfully completed and commissioned the 30,000 ton ethylene cryogenic storage tank at our Marine Export Terminal, finishing the project safely, on time and below budget.
- On January 25, 2021, the Terminal Facility was fully drawn at an aggregate amount of
$69.0 million and converted into a five year term loan. The final drawdown on that date was for$18.0 million , of which$4.0 million was used to make a final capital contribution to the Export Terminal Joint Venture, with the remaining$14.0 million to be used for general corporate purposes. - We have achieved a record of 800+ days without a Lost-Time-Incident (LTI) across our in-house technical managed fleet of 17 vessels.
The Company's financial information for the quarter and year ended December 31, 2020 included in this press release is preliminary and unaudited and is subject to change in connection with the completion of the Company's year-end close procedures and further financial review, including the audit currently underway by the Company's independent registered public accounting firm. Actual audited results may differ as a result of the completion of the Company's year-end closing procedures, review adjustments and other developments that may arise between now and the time such financial information for the year ended December 31, 2020 is finalized.
Ethylene Marine Export Terminal
The construction of the Marine Export Terminal was completed in December with the commissioning of the 30,000 ton cryogenic storage tank and its entering into operations. The full post-tank commitments of the offtake agreements, which have minimum terms of five years, came into effect on January 1, 2021 and provide for a minimum of 938,000 tons of ethylene through the terminal annually.
The Company contributed
During February and March 2021, operation of the 26 mile pipeline carrying ethylene from caverns at Mt Belvieu, Texas to the Marine Export Terminal halted due to mechanical integrity concerns which impacted terminal volumes for those months. Those concerns have been remedied and the terminal is expected to resume normal operations during the second half od March 2021.
Shipping Trends
The Company's vessel utilization rose from a low level in September to a high point of
Navigator Atlas, a 21,000cbm ethylene gas carrier, was the first vessel to load from the on-shore cryogenic storage tank at the Marine Export Terminal on December 23, 2020. The tank will greatly enhance the efficiency at the Marine Export Terminal and is expected to enable it to achieve or exceed the annual nameplate throughput capability of one million tons.
The demand for seaborne transportation of LPG increased significantly during the fourth quarter of 2020, driving Very Large Gas Carriers ("VLGC") 12-month time charter assessed rates from
This increased trend continued into January 2021 with all three segments peaking, before easing off in February. The 12-month time charter broker assessed rates for VLGCs and midsize vessels have reduced by
The February 2021, U.S. winter storms as well as the force majeure at the Marine Export Terminal will impact our utilization for February and March 2021, as both U.S. LPG and ethylene exports have been reduced as a direct consequence. However we expect the fundamentals for both of these products to normalize going into the second quarter of 2021.
COVID-19
The outbreak in early 2020 of the COVID-19 global pandemic has affected most countries in the world restricting trade, closures of companies and ports and limiting the movement of people and goods. It continues to affect the free movement of people and cargoes with the imposition of quarantines and travel restrictions which affect global economic conditions that may impact our business, financial condition and the results of our operations. Although there are numerous national vaccine programs being developed and distributed to the world's population, the full effects of the vaccines and their ability to combat different mutations or strains of the virus are not fully known and therefore the ultimate longevity of the COVID-19 pandemic is uncertain and an estimate of its ultimate likely impact cannot be made with certainty at this time.
Results of Operations for the Three Months Ended December 31, 2019 Compared to the Three Months Ended December 31, 2020
The following table compares our operating results for the three months ended December 31, 2019 and 2020:
Three Months December 31, 2019 | Three Months December 31, 2020 | Percentage | |
(in thousands, except percentages) | |||
Operating revenues................................................................................ | $ 76,072 | $ 82,926 | |
Operating revenues – Luna Pool collaborative arrangements........ | — | 4,496 | — |
Total operating revenues | $ 76,072 | $ 87,422 | |
Expenses: | |||
Brokerage commissions.............................................................. | 1,179 | 1,315 | |
Voyage expenses.......................................................................... | 12,129 | 16,516 | |
Voyage expenses – Luna Pool collaborative arrangements.. | — | 5,055 | — |
Vessel operating expenses.......................................................... | 27,733 | 28,383 | |
Depreciation and amortization.................................................. | 19,303 | 19,140 | ( |
General and administrative costs.............................................. | 6,250 | 6,329 | |
Other income................................................................................. | — | (75) | — |
Total operating expenses................................................. | $ 66,594 | $ 76,663 | |
Operating income.................................................................................... | $ 9,478 | $ 10,759 | |
Other income/(expense) | |||
Foreign currency exchange loss on senior secured bonds..... | (2,250) | (6,884) | |
Unrealized gain on non-designated derivative instruments.. | 2,937 | 8,378 | |
Interest expense............................................................................ | (12,246) | (9,071) | ( |
Interest income............................................................................. | 303 | 41 | ( |
(Loss)/income before taxes and share of result of equity accounted joint ventures....................................................... | $ (1,778) | $ 3,223 | — |
Income taxes........................................................................................... | (47) | (161) | |
Share of result of equity accounted joint ventures........................... | (879) | 709 | — |
Net (loss) / income.................................................................................. | $ (2,704) | $ 3,771 | — |
Net income attributable to non-controlling interest.......................... | (99) | (405) | |
Net (loss) / income attributable to stockholders of Navigator Holdings Ltd...................................................................................... | $ (2,803) | $ 3,366 | — |
Operating Revenues. Operating revenues, net of address commissions, was
- an increase in operating revenues of approximately
$4.4 million primarily attributable to an increase in pass through voyage costs, including additional canal transits for the three months ended December 31, 2020 compared to the three months ended December 31, 2019; - an increase in operating revenues of approximately
$2.9 million attributable to an increase in average monthly time charter equivalent rates, which increased to an average of approximately$642,536 per vessel per calendar month ($21,123 per day) for the three months ended December 31, 2020, compared to an average of approximately$614,513 per vessel per calendar month ($20,203 per day) for the three months ended December 31, 2019; - an increase in operating revenues of approximately
$0.7 million attributable to an increase in vessel available days of 38 days or1.1% for the three months ended December 31, 2020 compared to the three months to December 31, 2019, primarily due to a decrease in the number of dry dockings undertaken during the three months ended December 31, 2020, compared to the three months ended December 31, 2019; and - a decrease in operating revenues of approximately
$1.2 million attributable to a decrease in fleet utilization which was91.0% for the three months ended December 31, 2020 compared to92.7% for the three months ended December 31, 2019.
The following table presents selected operating data for the three months ended December 31, 2019 and 2020, which we believe are useful in understanding the basis for movement in our operating revenues.
Three Months | Three Months | |
Fleet Data: | ||
Weighted average number of vessels........................ | 38.0 | 38.0 |
Ownership days............................................................. | 3,496 | 3,496 |
Available days............................................................... | 3,416 | 3,454 |
Operating days............................................................... | 3,165 | 3,144 |
Fleet utilization.............................................................. | ||
Average daily time charter equivalent rate (*)........ | $ 20,203 | $ 21,123 |
* 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 Revenues to TCE rate
The following table represents a reconciliation of operating revenues to TCE rate. Operating revenues is the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
Three Months | Three Months | |
(in thousands, except operating days | ||
Fleet Data: | ||
Operating revenues (excluding collaborative arrangements)...... | $ 76,072 | $ 82,926 |
Voyage expenses (excluding collaborative arrangements)......... | 12,129 | 16,516 |
Operating revenues less Voyage expenses................................ | 63,943 | 66,410 |
Operating days............................................................................. | 3,165 | 3,144 |
Average daily time charter equivalent rate................................... | $ 20,203 | $ 21,123 |
Operating Revenues – Luna Pool collaborative arrangements. Pool earnings are aggregated and then allocated (after deducting pool overheads and managers fees) to the Pool Participants in accordance with the Pooling Agreement. Operating revenues - Luna Pool collaborative arrangements was
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 were
Vessel Operating Expenses. Vessel operating expenses increased by
Depreciation and Amortization. Depreciation and amortization decreased by
General and Administrative Costs. General and administrative costs increased by
Other Income. Other income was
Non-operating Results
Foreign Currency Exchange Loss on Senior Secured Bonds. Exchange gains and losses relate to non-cash movements on our 600 million Norwegian Kroner 2018 Bonds which are translated to U.S. Dollar at the prevailing exchange rate as of December 31, 2020. The foreign currency exchange loss of
Unrealized Gain on Non-designated Derivative Instruments. The unrealized gains on non-designated derivative instruments of
Interest Expense. Interest expense decreased by
Income Taxes. Income taxes related to taxes on our subsidiaries incorporated in the United Kingdom, Poland and Singapore and our consolidated variable interest entity ("VIE"), incorporated in Malta. For the three months ended December 31, 2020, we had a tax charge of
Share of result of equity accounted joint ventures. The share of result of the Company's
Non-Controlling Interest. We have entered into a sale and leaseback arrangement in November 2019 with a wholly-owned special purpose vehicle ("lessor SPV") of a financial institution. Although we do not hold any equity investments in this lessor SPV, we have determined that we are the primary beneficiary of this entity and accordingly, we are required to consolidate this VIE into our financial results. Thus, the income attributable to the financial institution of
Results of Operations for the Year Ended December 31, 2019 Compared to Year Ended December 31, 2020
The following table compares our operating results for the years ended December 31, 2019 and 2020:
Year Ended | Year Ended | Percentage | |
(in thousands, except percentages) | |||
Operating revenues.................................................................................... | $ 301,385 | $ 319,665 | |
Operating revenues – Luna Pool collaborative arrangements........... | — | 12,830 | — |
Total operating revenues.......................................................................... | $ 301,385 | $ 332,495 | |
Operating expenses: | |||
Brokerage commissions................................................................. | 4,938 | 5,095 | |
Voyage expenses............................................................................. | 55,310 | 63,372 | |
Voyage expenses – Luna Pool collaborative arrangements... | — | 12,418 | — |
Vessel operating expenses............................................................. | 111,475 | 109,503 | ( |
Depreciation and amortization..................................................... | 76,173 | 76,681 | |
General and administrative costs................................................. | 20,878 | 23,871 | |
Other income.................................................................................... | — | (199 ) | — |
Total operating expenses............................................................... | $ 268,774 | $ 290,741 | |
Operating income....................................................................................... | $ 32,611 | $ 41,754 | |
Other income/(expense) | |||
Foreign currency exchange gain /(loss) on senior secured bonds..... | 969 | (1,931 ) | — |
Unrealized (loss)/gain on non-designated derivative instruments... | (615) | 2,762 | — |
Interest expense............................................................................... | (48,611) | (41,080 ) | ( |
Loss on repayment of | — | (479 ) | — |
Write off of deferred financing costs........................................... | (403) | (155 ) | ( |
Interest income................................................................................ | 920 | 408 | ( |
(Loss)/income before income taxes and share of result of equity accounted joint ventures..................................................................... | $ (15,129) | $ 1,279 | — |
Income taxes.............................................................................................. | (352) | (617 ) | |
Share of result of equity accounted joint ventures.............................. | (1,126) | 651 | — |
Net (loss)/income....................................................................................... | $ (16,607) | $ 1,313 | — |
Net income attributable to non-controlling interest............................. | (99) | (1,756 ) | |
Net loss attributable to stockholders of Navigator Holdings Ltd...... | $ (16,706) | $ (443 ) | ( |
Operating Revenues. Operating revenues, net of address commissions, increased by
- an increase in operating revenues of approximately
$8.8 million attributable to an increase in average monthly time charter equivalent rates, which increased to an average of approximately$656,174 per vessel per calendar month ($21,573 per day) for the year ended December 31, 2020, compared to an average of approximately$633,584 per vessel per calendar month ($20,831 per day) for the year ended December 31, 2019; - an increase in operating revenues of approximately
$8.1 million primarily attributable to an increase in pass through voyage costs, as the number and duration of voyage charters during the year ended December 31, 2020 increased, compared to the year ended December 31, 2019; - an increase in operating revenues of approximately
$1.4 million attributable to an increase in vessel available days of 76 days or0.6% for the year ended December 31, 2020, compared to the year ended December 31, 2019. As well as an additional 38 vessel available days being available during the year ended December 31, 2020 as a result of being a leap year, there were a total of 224 drydock days, including repositioning days, during the year ended December 31, 2020, compared to 262 days the year ended December 31, 2019. - Fleet utilization was
86.8% for the year ended December 31, 2020, being principally the same as for the year ended December 31, 2019 but resulted in a minor increase of$0.01 million in operating revenues.
The following table presents selected operating data for the years ended December 31, 2019 and 2020, which we believe are useful in understanding the basis for movements in operating revenues:
Fleet Data: | Year Ended | Year Ended |
Weighted average number of vessels................................ | 38.0 | 38.0 |
Ownership days..................................................................... | 13,870 | 13,908 |
Available days...................................................................... | 13,608 | 13,684 |
Operating days...................................................................... | 11,813 | 11,880 |
Fleet utilization...................................................................... | 86.8 % | 86.8 % |
Average daily time charter equivalent rate (*)................ | $ 20,831 | $ 21,573 |
* 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 Revenues to TCE rate
The following table represents a reconciliation of operating revenues to TCE rate. Operating revenues are the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
Fleet Data: | Year Ended | Year Ended |
Operating revenues (excluding collaborative arrangements)................ | $ 301,385 | $ 319,665 |
Voyage expenses (excluding collaborative arrangements)................... | 55,310 | 63,372 |
Operating revenues less Voyage expenses....................... | $ 246,075 | $ 256,293 |
Operating days................................................................... | 11,813 | 11,880 |
Average daily time charter equivalent rate......................... | $ 20,831 | $ 21,573 |
Operating Revenues – Luna Pool collaborative arrangements. Pool earnings are aggregated and then allocated (after deducting pool overheads and managers fees) to the Pool Participants in accordance with the Pooling Agreement. Operating revenues - Luna Pool collaborative arrangements was
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 were
Vessel Operating Expenses. Vessel operating expenses decreased by
Depreciation and Amortization. Depreciation and amortization increased by
General and Administrative Costs. General and administrative costs increased by
Other Income. Other income was
Non-operating Results
Foreign currency exchange gain/(loss) on senior secured bonds. Exchange gains and losses relate to non-cash movements on our 2018 Bonds which are denominated in Norwegian Kroner and translated to U.S. Dollar at the prevailing exchange rate as of December 31, 2020. The foreign currency exchange loss on translation was
Unrealized (loss) / gain on non-designated derivative instruments. The unrealized gain of
Interest Expense. Interest expense decreased by
Loss on repayment of
Write off of Deferred Financing Costs. The write off of deferred financing costs of
Income Taxes. Income tax relates to taxes on our subsidiaries incorporated in the United Kingdom, Poland and Singapore and our consolidated VIE, incorporated in Malta. Two of our United Kingdom subsidiaries earn management and other fees from affiliates, and our Singaporean subsidiary earns interest from loans to our variable interest entity in Indonesia. The main corporate tax rates are
Share of result of equity accounted joint ventures. The share of result of the Company's
Non-Controlling Interest. We have entered into a sale and leaseback arrangement in November 2019 with a wholly-owned special purpose vehicle ("lessor SPV") of a financial institution. While we do not hold any equity investments in this lessor SPV, we have determined that we are the primary beneficiary of this entity and accordingly, we are required to consolidate this variable interest entity ("VIE") into our financial results. Thus, the income attributable to the financial institution of
Reconciliation of Non-GAAP Financial Measures
The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the three months and year ended December 31, 2019 and 2020:
Three months ended | Year ended | |||||
December 31, | December 31, | December 31, | December 31, | |||
(in thousands) | (in thousands) | |||||
Net (loss) / income | $ (2,704) | $ 3,771 | $ (16,607) | $ 1,313 | ||
Net interest expense | 11,943 | 9,030 | 48,094 | 41,306 | ||
Income taxes | 47 | 161 | 352 | 617 | ||
Depreciation and amortization | 19,303 | 19,140 | 76,173 | 76,681 | ||
Depreciation from the Export Terminal Joint Venture | 143 | 1,380 | 143 | 5,151 | ||
EBITDA(1) | $ 28,732 | $ 33,482 | $ 108,155 | $ 125,068 | ||
Foreign currency exchange (gain) / loss on senior secured bonds | 2,250 | 6,884 | (969) | 1,931 | ||
Unrealized loss / (gain) on non-designated derivative instruments | (2,937) | (8,378) | 615 | (2,762) | ||
Adjusted EBITDA(1) | $ 28,045 | $ 31,988 | $ 107,801 | $ 124,237 | ||
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 income / (loss), our most directly comparable U.S. GAAP financial measure.
Our Fleet
The following table sets forth our vessels as of March 15, 2021:
Operating Vessel | Year | Vessel Size | Employment | Current Cargo | Charter |
Ethylene/ethane capable semi-refrigerated | |||||
Navigator Orion*............................... | 2000 | 22,085 | Spot market | - | — |
Navigator Neptune*.......................... | 2000 | 22,085 | Spot market | Drydock | — |
Navigator Pluto.................................. | 2000 | 22,085 | Spot market | LPG | — |
Navigator Saturn*............................. | 2000 | 22,085 | Spot market | Ethylene | — |
Navigator Venus*.............................. | 2000 | 22,085 | Spot market | Propylene | — |
Navigator Atlas*................................ | 2014 | 21,000 | Spot market | - | — |
Navigator Europa*............................ | 2014 | 21,000 | Spot market | — | — |
Navigator Oberon*............................ | 2014 | 21,000 | Contract of affreightment | Ethylene | — |
Navigator Triton*.............................. | 2015 | 21,000 | Spot market | Ethane | — |
Navigator Umbrio*........................... | 2015 | 21,000 | Spot market | Ethylene | — |
Navigator Aurora............................... | 2016 | 37,300 | Time charter | Ethane | December 2026 |
Navigator Eclipse............................... | 2016 | 37,300 | Time charter | Ethane | March 2022 |
Navigator Nova................................. | 2017 | 37,300 | Time charter | Ethane | September 2023 |
Navigator Prominence...................... | 2017 | 37,300 | Time charter | Ethane | October 2021 |
Semi-refrigerated | |||||
Navigator Magellan.......................... | 1998 | 20,700 | Time charter | LPG | March 2021 |
Navigator Aries.................................. | 2008 | 20,750 | Time charter | LPG | November 2021 |
Navigator Capricorn......................... | 2008 | 20,750 | Spot market | LPG | — |
Navigator Gemini.............................. | 2009 | 20,750 | Spot market | - | — |
Navigator Pegasus............................. | 2009 | 22,200 | Time charter | Propylene | March 2022 |
Navigator Phoenix............................. | 2009 | 22,200 | Spot market | Propylene | — |
Navigator Scorpio.............................. | 2009 | 20,750 | Spot market | Butadiene | — |
Navigator Taurus............................... | 2009 | 20,750 | Spot market | LPG | — |
Navigator Virgo.................................. | 2009 | 20,750 | Time charter | LPG | May 2021 |
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 | Propylene | — |
Navigator Ceres................................. | 2015 | 21,000 | Spot market | Butadiene | — |
Navigator Ceto................................... | 2016 | 21,000 | Spot market | Propylene | — |
Navigator Copernico......................... | 2016 | 21,000 | Time charter | LPG | April 2021 |
Navigator Luga.................................. | 2017 | 22,000 | Time charter | LPG | February 2022 |
Navigator Yauza............................... | 2017 | 22,000 | Time charter | LPG | April 2022 |
Fully-refrigerated | |||||
Navigator Glory................................. | 2010 | 22,500 | Time charter | Ammonia | June 2021 |
Navigator Grace................................. | 2010 | 22,500 | Time charter | LPG | March 2021 |
Navigator Galaxy.............................. | 2011 | 22,500 | Time charter | Ammonia | November 2021 |
Navigator Genesis.............................. | 2011 | 22,500 | Time charter | LPG | July 2021 |
Navigator Global............................... | 2011 | 22,500 | Time charter | LPG | January 2022 |
Navigator Gusto................................. | 2011 | 22,500 | Time charter | LPG | December 2021 |
Navigator Jorf.................................... | 2017 | 38,000 | Time charter | Ammonia | August 2027 |
* denotes our nine owned vessels that operate within the Luna Pool
Conference Call Details:
Tomorrow, Friday March 19, 2021, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the preliminary financial results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928 592 (Standard International Dial In). Please quote "Navigator" to the operator. There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A telephonic replay of the conference call will be available until Friday March 26, 2021, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009785 (Standard International Dial In). Access Code: 11870348#
Navigator Gas
Attention: Investor Relations Department - investorrelations@navigatorgas.com
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
New York: 650 Madison Ave, New York, NY 10022. Tel: +1 212 355 5893
About Us
Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia and owns a
Navigator Holdings Ltd.
Consolidated Balance Sheets
(Unaudited)
December 31, 2019 | December 31, 2020 | |
(in thousands, except share data) | ||
Assets | ||
Current assets | ||
Cash, cash equivalents and restricted cash................................................................................................ | $ 66,130 | $ 59,271 |
Accounts receivable, net of allowance for credit losses of | 23,462 | 14,451 |
Accrued income........................................................................................................................................ | 6,280 | 20,073 |
Prepaid expenses and other current assets................................................................................................ | 17,670 | 22,015 |
Bunkers and lubricant oils........................................................................................................................ | 9,645 | 8,428 |
Insurance receivable................................................................................................................................. | 2,939 | 447 |
Amounts due from related parties............................................................................................................. | — | 11,853 |
Total current assets................................................................................................................................... | 126,126 | 136,538 |
Non-current assets | ||
Vessels, net.............................................................................................................................................. | 1,609,527 | 1,545,688 |
Property, plant and equipment, net........................................................................................................... | 793 | 502 |
Intangible assets, net of accumulated amortization of | 366 | 277 |
Investment in equity accounted joint ventures.......................................................................................... | 130,660 | 148,665 |
Right-of-use asset for operating leases..................................................................................................... | 6,781 | 5,701 |
Prepaid expenses and other non-current assets......................................................................................... | — | 2,037 |
Total non-current assets............................................................................................................................ | 1,748,127 | 1,702,870 |
Total assets............................................................................................................................................. | $ 1,874,253 | $ 1,839,408 |
Liabilities and stockholders' equity | ||
Current liabilities | ||
Current portion of secured term loan facilities, net of deferred financing costs........................................ | $ 64,703 | $ 65,663 |
Current portion of operating lease liabilities............................................................................................. | 1,178 | 1,276 |
Accounts payable..................................................................................................................................... | 10,472 | 8,565 |
Accrued expenses and other liabilities...................................................................................................... | 14,124 | 16,488 |
Accrued interest........................................................................................................................................ | 4,424 | 3,398 |
Deferred income....................................................................................................................................... | 14,154 | 11,604 |
Amounts due to related parties................................................................................................................. | 451 | 229 |
Total current liabilities.............................................................................................................................. | 109,506 | 107,223 |
Non-current liabilities | ||
Secured term loan facilities and revolving credit facilities, net of current portion and deferred financing costs.................................................................................................................................................... | 578,676 | 552,594 |
Senior secured bond, net of deferred financing costs............................................................................... | 67,503 | 69,580 |
Senior unsecured bond, net of deferred financing costs........................................................................... | 98,513 | 98,158 |
Derivative liabilities.................................................................................................................................. | 5,769 | 3,007 |
Operating lease liabilities, net of current portion....................................................................................... | 6,329 | 5,232 |
Amounts due to related parties................................................................................................................. | 68,055 | 61,219 |
Total non-current liabilities....................................................................................................................... | 824,845 | 789,790 |
Total Liabilities....................................................................................................................................... | 934,351 | 897,013 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock—$.01 par value per share; 400,000,000 shares authorized; 55,893,618 shares issued and outstanding, (December 31, 2019: 55,826,644)........................................................................... | 558 | 559 |
Additional paid-in capital.......................................................................................................................... | 592,010 | 593,254 |
Accumulated other comprehensive loss.................................................................................................... | (331 ) | (245 ) |
Retained earnings..................................................................................................................................... | 347,566 | 346,972 |
Total Navigator Holdings Ltd. stockholders' equity.......................................................................... | 939,803 | 940,540 |
Non-controlling interest............................................................................................................................ | 99 | 1,855 |
Total equity............................................................................................................................................... | 939,902 | 942,395 |
Total liabilities and equity..................................................................................................................... | $ 1,874,253 | $ 1,839,408 |
Navigator Holdings Ltd.
Consolidated Statements of Operations
(Unaudited)
Three months ended December 31, (in thousands except share data) | Year ended December 31, (in thousands except share data) | |||
2019 | 2020 | 2019 | 2020 | |
Revenues | ||||
Operating revenues........................................................................................................ | $ 76,072 | $ 82,926 | $ 301,385 | $ 319,665 |
Operating revenues - Luna Pool collaborative arrangements................................ | -- | 4,496 | — | 12,830 |
Total operating revenues........................................................................................... | 76,072 | $ 87,422 | 301,385 | 332,495 |
Expenses | ||||
Brokerage commissions................................................................................................ | 1,179 | 1,315 | 4,938 | 5,095 |
Voyage expenses........................................................................................................... | 12,129 | 16,516 | 55,310 | 63,372 |
Voyage expenses - Luna Pool collaborative arrangements................................... | — | 5,055 | — | 12,418 |
Vessel operating expenses............................................................................................ | 27,733 | 28,383 | 111,475 | 109,503 |
Depreciation and amortization................................................................................... | 19,303 | 19,140 | 76,173 | 76,681 |
General and administrative costs................................................................................ | 6,250 | 6,329 | 20,878 | 23,871 |
Other Income.................................................................................................................. | — | (75) | — | (199) |
Total operating expenses............................................................................................ | 66,594 | 76,663 | 268,774 | 290,741 |
Operating income......................................................................................................... | 9,478 | 10,759 | 32,611 | 41,754 |
Other income/(expense) | ||||
Foreign currency exchange (loss)/gain on senior secured bonds........................... | (2,250) | (6,884) | 969 | (1,931) |
Unrealized gain/(loss) on non-designated derivative instruments......................... | 2,937 | 8,378 | (615) | 2,762 |
Interest expense............................................................................................................. | (12,246) | (9,071) | (48,611) | (41,080 ) |
Loss on repayment of | — | — | — | (479 ) |
Write off of deferred financing costs......................................................................... | — | — | (403) | (155 ) |
Interest income............................................................................................................... | 303 | 41 | 920 | 408 |
(Loss)/ income before income taxes and share of result of equity accounted joint ventures............................................................................................................ | (1,778) | 3,223 | (15,129) | 1,279 |
Income taxes.................................................................................................................. | (47) | (161) | (352) | (617 ) |
Share of result of equity accounted joint ventures.................................................. | (879) | 709 | (1,126) | 651 |
Net (loss)/income........................................................................................................... | (2,704) | 3,771 | (16,607) | 1,313 |
Net income attributable to non-controlling interest................................................. | (99) | (405) | (99) | (1,756 ) |
Net (loss)/income attributable to stockholders of Navigator Holdings Ltd... | $ (2,803) | $ 3,366 | $ (16,706) | $ (443 ) |
(Loss)/earnings per share attributable to stockholders of Navigator Holdings Ltd.: | ||||
Basic and diluted:.......................................................................................................... | $ (0.05) | $ 0.06 | $ (0.30) | $ (0.01 ) |
Weighted average number of shares outstanding: | ||||
Basic:............................................................................................................................... | 55,826,644 | 55,895,585 | 55,792,711 | 55,885,376 |
Diluted:............................................................................................................................ | 55,826,644 | 56,235,521 | 55,792,711 | 55,885,376 |
Navigator Holdings Ltd.
Consolidated Statements of Cash Flows
(Unaudited)
Year ended | Year ended | |
Cash flows from operating activities | ||
Net (loss)/income................................................................................................................. | $ (16,607 ) | $ 1,313 |
Adjustments to reconcile net (loss)/income to net cash provided by operating activities | ||
Unrealized loss/(gain) on non-designated derivative instruments......................................... | 615 | (2,762) |
Depreciation and amortization.............................................................................................. | 76,173 | 76,681 |
Payment of drydocking costs............................................................................................... | (11,523 ) | (10,192) |
Amortization of share-based compensation.......................................................................... | 1,503 | 1,245 |
Amortization of deferred financing costs.............................................................................. | 4,618 | 4,654 |
Share of result of equity accounted joint ventures................................................................ | 1,126 | (651) |
Call option premium on redemption of | — | 236 |
Insurance claim receivable.................................................................................................... | (5,107 ) | (975) |
Unrealized foreign exchange (gain)/loss on senior secured bonds....................................... | (969 ) | 1,931 |
Other unrealized foreign exchange gains.............................................................................. | 239 | 80 |
Changes in operating assets and liabilities | — | |
Accounts receivable.............................................................................................................. | (6,429 ) | 8,860 |
Bunkers and lubricant oils.................................................................................................... | (856 ) | 1,218 |
Accrued income, prepaid expenses and other current assets................................................. | (637 ) | (20,772) |
Accounts payable, accrued interest, accrued expenses and other liabilities........................... | 7,554 | (4,118) |
Amounts from related parties............................................................................................... | — | (12,075) |
Net cash provided by operating activities........................................................................ | 49,700 | 44,673 |
Cash flows from investing activities | ||
Additions to vessels and equipment..................................................................................... | (2,910 ) | (2,233) |
Investment in equity accounted joint ventures...................................................................... | (89,324 ) | (17,354) |
Purchase of other property, plant and equipment and intangibles......................................... | (357 ) | (31) |
Insurance recoveries............................................................................................................. | 2,182 | 3,467 |
Net cash used in investing activities................................................................................. | (90,409 ) | (16,151) |
Cash flows from financing activities | ||
Proceeds from secured term loan facilities and revolving credit facilities............................. | 162,000 | 51,000 |
Proceeds from revolving loan facility................................................................................... | — | 185,000 |
Proceeds from refinancing of vessel to related parties.......................................................... | 69,052 | — |
Issuance of | — | 100,000 |
Issuance cost of senior secured bonds.................................................................................. | (136 ) | (141) |
Issuance costs of unsecured bond amendment..................................................................... | (1,308 ) | — |
Issuance cost of | — | (1,963) |
Issuance cost of refinancing of vessel.................................................................................. | (156 ) | (18) |
Direct financing cost of secured term loan and revolving credit facilities............................. | (1,448 ) | — |
Direct financing cost of terminal credit facility..................................................................... | (2,833 ) | (72) |
Direct financing cost of revolving credit facility................................................................... | — | (1,939) |
Repayment of | — | (100,236) |
Repayment of secured term loan facilities and revolving credit facilities.............................. | (189,001 ) | (260,167) |
Repayment of refinancing of vessel to related parties........................................................... | (846 ) | (6,845) |
Net cash provided by/(used in) financing activities........................................................ | 35,324 | (35,381) |
Net decrease in cash, cash equivalents and restricted cash............................................ | (5,385 ) | (6,859 ) |
Cash, cash equivalents and restricted cash at beginning of year.................................. | 71,515 | 66,130 |
Cash, cash equivalents and restricted cash at end of year............................................. | $ 66,130 | $ 59,271 |
Supplemental Information | ||
Total interest paid during the year, net of amounts capitalized.............................................. | $ 44,859 | $ 37,619 |
Total tax paid during the year............................................................................................... | $ 323 | $ 330 |
IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto, including our financial forecast. In addition, we and our representatives may from time to time make other oral or written statements that are also forward-looking statements. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate as described in this press release. In some cases, you can identify the forward-looking statements by the use of words such as "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "continue," "scheduled," or the negative of these terms or other comparable terminology. Forward-looking statements appear in a number of places in this press release. These risks and uncertainties include but are not limited to:
- the completion of the Company's year-end close procedures and further financial review with respect to the Company's financial statements for the year ended December 31, 2020, and other developments that may arise between now and the disclosure of the Company's final results for the year;
- global epidemics or other health crises such as the outbreak of COVID-19, including its impact on our business;
- future operating or financial results;
- pending acquisitions, business strategy and expected capital spending;
- operating expenses, availability of crew, number of off-hire days, drydocking requirements and insurance costs;
- fluctuations in currencies and interest rates;
- general market conditions and shipping market trends, including charter rates and factors affecting supply and demand;
- our ability to continue to comply with all our debt covenants;
- our financial condition and liquidity, including our ability to refinance our indebtedness as it matures or obtain additional financing in the future to fund capital expenditures, acquisitions and other corporate activities;
- estimated future capital expenditures needed to preserve our capital base;
- our expectations about the availability of vessels to purchase, 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 ability to successfully remediate material weaknesses in our internal control over financial reporting and our disclosure controls and procedures;
- our expectation regarding providing in-house technical management for certain vessels in our fleet and our success in providing such in-house technical management;
- our expectations regarding the financial success of the Marine Export Terminal and our related Export Terminal Joint Venture; 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-fourth-quarter-and-financial-year-2020-results-unaudited-301250619.html
SOURCE Navigator Gas
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