Navigator Holdings Ltd. Preliminary Second Quarter 2021 Results (Unaudited)
Navigator Holdings Ltd. (NYSE: NVGS) reported operating revenue of $85.9 million for Q2 2021, up from $82.5 million in Q2 2020. However, net income fell significantly to $0.3 million from $3.0 million, reflecting a 89.9% decline. Adjusted EBITDA decreased to $28.2 million from $31.9 million. Fleet utilization also declined to 85.4% from 88.3%. Notably, the company merged with Ultragas, adding 18 vessels to its fleet, while the ethylene export terminal reported increased throughput of 155,428 tons.
- Merged with Ultragas, increasing fleet size to 56 vessels.
- Increased throughput at the Morgan's Point terminal to 155,428 tons.
- Net income dropped by 89.9%, from $3.0 million to $0.3 million.
- Adjusted EBITDA decreased to $28.2 million from $31.9 million.
- Fleet utilization fell to 85.4%, down from 88.3%.
LONDON, Aug. 16, 2021 /PRNewswire/ --
Highlights
- Navigator Holdings Ltd. (the "Company", "we", "our" and "us") (NYSE: NVGS) reported operating revenue of
$85.9 million for the three months ended June 30, 2021, compared to$82.5 million for the three months ended June 30, 2020. - Net income was
$0.3 million (earnings per share of$0.01 ) for the three months ended June 30, 2021, compared to a net income of$3.0 million (earnings per share of$0.05 ) for the three months ended June 30, 2020. - Adjusted EBITDA(1) was
$28.2 million for the three months ended June 30, 2021, compared to$31.9 million for the three months ended June 30, 2020. - Fleet utilization was
85.4% for the three months ended June 30, 2021, a reduction from the88.3% achieved for the three months ended June 30, 2020. - The ethylene export marine terminal at Morgan's Point, Texas on the Houston Ship Channel (the "Marine Export Terminal") had throughput volumes of 155,428 tons for the three months ended June 30, 2021, compared 103,220 tons for the three months ended June 30, 2020.
- Four 12-month time charters with Mitsui & Co. Energy Trading Singapore Pte. Ltd. commenced during the quarter, transporting LPG from Pembina Pipeline Corporation's new LPG export facility at Prince Rupert, British Columbia, West Coast Canada. A fifth vessel is scheduled to enter service on this route in October 2021.
- Navigator loaded the first cargo from the new 20,000bbls per day Repauno LPG Export Terminal on the U.S. East Coast in April 2021, followed by two similar cargoes loadings in May.
- On August 4, 2021, the Company entered into the previously announced transaction with Naviera Ultranav Limitada ("Ultranav") to merge the Ultragas ApS ("Ultragas") fleet and business activities with Navigator. The addition of their 18 vessels will give a combined fleet of 56 vessels which will enhance our capability to provide flexibility, choice and support to our customers.
- In April 2021, we published our inaugural CSR report.
The Company's financial information for the quarter ended June 30, 2021 included in this press release is preliminary and is subject to change in connection with the completion of the Company's quarter-end close procedures and further financial review. Actual results may differ from these estimates as a result of the completion of the Company's quarter-end closing procedures, review adjustments and other developments that may arise between now and the time such financial information for the quarter ended June 30, 2021 is finalized.
Recent Developments
Ultragas Transaction
On August 4, 2021, the Company entered into the previously announced transaction with Naviera Ultranav Limitada ("Ultranav") to merge the Ultragas ApS ("Ultragas") fleet and business activities with Navigator. Ultragas' fleet, which had a broker assessed value of approximately
- seven modern 22,000cbm handysize semi-refrigerated vessels;
- five 12,000cbm ethylene vessels and;
- six gas carriers in the 3,770-9,000cbm range, three of which are ethylene capable.
The combined fleet of 56 vessels will enhance our capability to provide flexibility, choice and support to our customers.
In line with the original terms of the transaction, Navigator issued approximately 21.2 million new shares of its common stock to Ultranav, in consideration for its vessels less its approximate
Market Trends
The Texas-freeze closed the ethylene arbitrage between the U.S. and the rest of the world during March and April of 2021 resulting in minimal ethylene exports from North America. During this period the vast majority of ethylene crackers in Texas and Louisiana that were impacted quickly commenced the necessary repairs and started ramping up production, albeit at less than maximum capacity. The available production was however sufficient to satisfy strong domestic demand and export opportunities. Consequently, the domestic ethylene price fell from a high of
Four Navigator handysize semi-refrigerated vessels have now been delivered to the Pembina Canadian West Coast LPG export terminal. These vessels have safely, reliably and efficiently provided a means for the Canadian producers to deliver their cargo to Asian customers, without the need or cost of a Panama Canal transit. This new Transpacific handysize LPG trade is set to expand in October when a fifth vessel is scheduled to enter service on this route. U.S. LPG pricing remains at a high level of around
Results of Operations for the Three Months Ended June 30, 2020 Compared to the Three Months Ended June 30, 2021
The following table compares our operating results for the three months ended June 30, 2020 and 2021:
Three Months | Three Months 2021 | Percentage | |
(in thousands, except percentages) | |||
Operating revenue | $ 79,869 | $ 80,278 | |
Operating revenue – Luna Pool collaborative arrangement | 2,596 | 5,579 | |
Total operating revenues | 82,465 | 85,857 | |
Expenses: | |||
Brokerage commissions | 1,305 | 974 | ( |
Voyage expenses | 14,728 | 17,749 | |
Voyage expenses – Luna Pool collaborative | 3,043 | 5,479 | |
Vessel operating expenses | 26,493 | 28,826 | |
Depreciation and amortization | 19,151 | 19,230 | |
General and administrative costs | 4,509 | 6,276 | |
Other income | (117) | (88) | ( |
Total operating expenses | 69,112 | 78,446 | |
Operating income | 13,353 | 7,411 | ( |
Foreign currency exchange gain / (loss) on senior | (4,852) | 330 | n/a |
Unrealized gain / (loss) on non-designated derivative | 6,354 | (269) | n/a |
Interest expense | (11,128) | (8,647) | ( |
Interest income | 96 | 63 | ( |
Income / (loss) before taxes and share of result of equity | 3,823 | (1,112) | n/a |
Income taxes | (168) | (190) | |
Share of result of equity accounted joint venture | (164) | 2,001 | n/a |
Net income | 3,491 | 699 | ( |
Net income attributable to non-controlling interest | (483) | (394 ) | ( |
Net income attributable to stockholders of Navigator Holdings Ltd | $ 3,008 | $ 305 | ( |
Operating Revenue. Operating revenue increased by
- an increase in operating revenue of approximately
$1.7 million attributable to an increase in average monthly time charter equivalent rates, which increased to an average of approximately$22,181 per vessel per day ($674,680 per calendar month) for the three months ended June 30, 2021, compared to an average of approximately$21,606 per vessel per day ($657,170 per calendar month) for the three months ended June 30, 2020; - a decrease in operating revenue of approximately
$2.1 million as a result of a decrease in fleet utilization to85.4% for the three months ended June 30, 2021, from88.3% for the three months ended June 30, 2020; - a decrease in operating revenue of approximately
$2.2 million attributable to seven vessels undertaking dry docking during the three months ended June 30, 2021, for a total of 114 days, compared to two vessels for a total of 44 days during the three months to June 30, 2020; and - an increase in operating revenue of approximately
$3.0 million primarily attributable to an increase in pass through voyage costs, due to more expensive bunker fuel and additional canal transits for the three months ended June 30, 2021, compared to the three months ended June 30, 2020.
The following table presents selected operating data for the three months ended June 30, 2020 and 2021, 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 | 3,458 | 3,458 |
Available days | 3,414 | 3,300 |
Operating days | 3,015 | 2,819 |
Fleet utilization | ||
Average daily time charter equivalent rate (*) | $ 21,606 | $ 22,181 |
* Non-GAAP Financial Measure—Time charter equivalent: Time charter equivalent ("TCE") rate is a measure of the average daily revenue performance of a vessel. TCE is not calculated in accordance with U.S. GAAP. For all charters, we calculate TCE by dividing total operating revenues, less any voyage expenses, by the number of operating days for the relevant period. Under a time charter, the charterer pays substantially all of the vessel voyage related expenses, whereas for voyage charters, also known as spot market charters, we pay all voyage expenses. TCE rate is a shipping industry performance measure used primarily to compare period-to-period changes in a company's performance despite changes in the mix of charter types (i.e., spot charters, time charters and contracts of affreightment) under which the vessels may be employed between the periods. We include average daily TCE rate, as we believe it provides additional meaningful information in conjunction with net operating revenues, because it assists our management in making decisions regarding the deployment and use of our vessels and in evaluating their financial performance. Our calculation of TCE rate may not be comparable to that reported by other companies.
Reconciliation of Operating Revenue to TCE rate
The following table represents a reconciliation of operating revenue to TCE rate. Operating revenue is the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
Three Months | Three Months | |
(in thousands, except operating days | ||
Fleet Data: | ||
Operating revenue (excluding collaborative arrangements) | $ 79,869 | $ 80,278 |
Voyage expenses (excluding collaborative arrangements) | 14,728 | 17,749 |
Operating revenue less Voyage expenses | 65,141 | 62,529 |
Operating days | 3,015 | 2,819 |
Average daily time charter equivalent rate | $ 21,606 | $ 22,181 |
Operating Revenue – Luna Pool collaborative arrangement. Operating revenue – Luna Pool collaborative arrangement, which was our share of the other Luna Pool participants revenue increased by
Brokerage Commissions. Brokerage commissions, which typically vary between
Voyage Expenses. Voyage expenses increased by
Voyage Expenses. – Luna Pool collaborative arrangement. Voyage expenses – Luna Pool collaborative arrangement, which was our other Luna Pool participants share of our revenue, was
Vessel Operating Expenses. Vessel operating expenses increased by
Depreciation and Amortization. Depreciation and amortization expense increased 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 June 30, 2021. The foreign currency exchange gain of
Unrealized Gain on Non-designated Derivative Instruments. The unrealized loss 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 June 30, 2021, we had a tax charge of
Share of result of equity accounted joint venture. The share of result of the Company's
Non-Controlling Interest. We have entered into a sale and leaseback arrangement with a wholly-owned special purpose vehicle ("lessor SPV") of a financial institution. While we do not hold any equity investments in this lessor SPV, we have determined that we are the primary beneficiary of this entity and accordingly, we are required to consolidate this VIE into our financial results. Thus, the income attributable to the financial institution of
Results of Operations for the Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2021
The following table compares our operating results for the six months ended June 30, 2020 and 2021:
Six Months Ended June 30, | Six Months 2021 | Percentage | |
(in thousands, except percentages) | |||
Operating revenue | $ 161,126 | $ 160,786 | ( |
Operating revenue – Luna Pool collaborative arrangement | 2,596 | 10,819 | |
Total operating revenue | 163,722 | 171,605 | |
Operating expenses: | |||
Brokerage commissions | 2,560 | 2,167 | ( |
Voyage expenses | 32,272 | 33,365 | |
Voyage expenses – Luna Pool collaborative | 3,043 | 9,611 | |
Vessel operating expenses | 53,899 | 55,818 | |
Depreciation and amortization | 38,361 | 38,503 | |
General and administrative costs | 11,017 | 12,556 | |
Other income | (117) | (160) | |
Total operating expenses | 141,035 | 151,860 | |
Operating income | 22,687 | 19,745 | |
Foreign currency exchange gain on senior secured | 6,565 | 338 | ( |
Unrealized gain/(loss) on non-designated derivative | (7,607) | 278 | n/a |
Interest expense | (22,668) | (17,608) | ( |
Interest income | 315 | 94 | ( |
Income / (loss) before taxes and share of result of equity | (708) | 2,847 | n/a |
Income taxes | (336) | (335) | 93.1 % |
Share of result of equity accounted joint venture | (3,205) | 1,396 | n/a |
Net income / (loss) | (4,249) | 3,908 | n/a |
Net income attributable to non-controlling interest | (905) | (783) | ( |
Net income / (loss) attributable to stockholders of Navigator | $ (5,154) | $ 3,125 | n/a |
Operating Revenue. Operating revenue, net of address commission, decreased by
- an increase in operating revenue of approximately
$5.0 million attributable to an increase in average monthly time charter equivalent rates, which increased to an average of approximately$22,064 per vessel per day ($671,100 per vessel per calendar month) for the six months ended June 30, 2021, compared to an average of approximately$21,228 per vessel day ($645,700 per vessel per calendar month) for the six months ended June 30, 2020; - a decrease in operating revenue of approximately
$3.7 million attributable to a reduction in vessel available days of 234 days or3.4% for the six months ended June 30, 2021, due to an increase in the number dry dockings undertaken during the six months ended June 30, 2021 compared to the relatively low number of dry dockings undertaken for the six months ended June 30, 2020 as a result of the COVID-19 lockdowns at that time; - a decrease in operating revenue of approximately
$2.7 million attributable to a decrease in fleet utilization which was87.3% for the six months ended June 30, 2021 compared to88.7% for the six months ended June 30, 2020; and - an increase in operating revenue of approximately
$1.1 million primarily attributable to an increase in pass through voyage costs, due to additional fuel and canal transit costs for the six months ended June 30, 2021 compared to the six months ended June 30, 2020.
The following table presents selected operating data for the six months ended June 30, 2020 and 2021, which we believe are useful in understanding the basis for movement in our operating revenues.
Six Months | Six Months | |
Fleet Data: | ||
Weighted average number of vessels | 38.0 | 38.0 |
Ownership days | 6,916 | 6,878 |
Available days | 6,846 | 6,612 |
Operating days | 6,070 | 5,775 |
Fleet utilization | ||
Average daily time charter equivalent rate (*) | $ 21,228 | $ 22,064 |
* Non-GAAP Financial Measure—Time charter equivalent: Time charter equivalent ("TCE") rate is a measure of the average daily revenue performance of a vessel. TCE is not calculated in accordance with U.S. GAAP. For all charters, we calculate TCE by dividing total operating revenues, less any voyage expenses, by the number of operating days for the relevant period. Under a time charter, the charterer pays substantially all of the vessel voyage related expenses, whereas for voyage charters, also known as spot market charters, we pay all voyage expenses. TCE rate is a shipping industry performance measure used primarily to compare period-to-period changes in a company's performance despite changes in the mix of charter types (i.e., spot charters, time charters and contracts of affreightment) under which the vessels may be employed between the periods. We include average daily TCE rate, as we believe it provides additional meaningful information in conjunction with net operating revenues, because it assists our management in making decisions regarding the deployment and use of our vessels and in evaluating their financial performance. Our calculation of TCE rate may not be comparable to that reported by other companies.
Reconciliation of Operating Revenue to TCE rate
The following table represents a reconciliation of operating revenue to TCE rate. Operating revenue is the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.
Six Months | Six Months | |
(in thousands, except operating days | ||
Fleet Data: | ||
Operating revenue (excluding collaborative arrangements) | $ 161,126 | $ 160,786 |
Voyage expenses (excluding collaborative arrangements) | 32,272 | 33,365 |
Operating revenue less Voyage expenses | 128,854 | 127,421 |
Operating days | 6,070 | 5,775 |
Average daily time charter equivalent rate | $ 21,228 | $ 22,064 |
Operating Revenue – Luna Pool collaborative arrangement. Operating revenue – Luna Pool collaborative arrangement, which was our share of the other Luna Pool participants revenue, was
Brokerage Commissions. Brokerage commissions, which typically vary between
Voyage Expenses. Voyage expenses increased by
Voyage Expenses. – Luna Pool collaborative arrangement. Voyage expenses – Luna Pool collaborative arrangement, which was our other Luna Pool participants share of our revenue, was
Vessel Operating Expenses. Vessel operating expenses increased by
Depreciation and Amortization. Depreciation and amortization expense increased by
General and Administrative Costs. General and administrative costs increased by
Non-operating Results
Foreign Currency Exchange (Loss)/Gain on Senior Secured Bonds. Exchange gains and losses relate to non-cash movements on our 600 million Norwegian Kroner 2018 Bonds which are translated to U.S. Dollars at the prevailing exchange rate as of June 30, 2021. The foreign currency exchange gain of
Unrealized Gain/(Loss) on Non-designated Derivative Instruments. The unrealized gain 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 six months ended June 30, 2021, we had a tax charge of
Share of result of equity accounted joint venture. The share of result of the Company's
Non-Controlling Interest. We have entered into a sale and leaseback arrangement with a wholly-owned special purpose vehicle ("lessor SPV") of a financial institution. While we do not hold any equity investments in this lessor SPV, we have determined that we are the primary beneficiary of this entity and accordingly, we are required to consolidate this VIE into our financial results. Thus, the income attributable to the financial institution of
Reconciliation of Non-GAAP Financial Measures
The following table sets forth a reconciliation of net income attributable to the stockholders of the Company to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2020 and 2021:
(in thousands) | (in thousands) | ||||
Three months ended | Six months ended | ||||
June 30, | June 30, | June 30, | June 30, | ||
Net income / (loss) attributable to the stockholders | $ 3,008 | $ 305 | $ (5,154) | $ 3,125 | |
Net interest expense | 11,032 | 8,584 | 22,353 | 17,514 | |
Income taxes | 168 | 190 | 336 | 335 | |
Depreciation and amortization | 19,151 | 19,230 | 38,361 | 38,503 | |
EBITDA(1) | $ 33,359 | $ 28,309 | $ 55,896 | $ 59,477 | |
Foreign currency exchange (gain) / loss on senior | 4,852 | (330) | (6,565) | (338 ) | |
Unrealized loss / (gain) on non-designated | (6,354) | 269 | 7,607 | (278) | |
Adjusted EBITDA(1) | $ 31,857 | $ 28,248 | $ 56,938 | $ 58,861 | |
1 EBITDA and Adjusted EBITDA are not measurements prepared in accordance with U.S. GAAP (non-GAAP financial measures). EBITDA represents net income attributable to stockholders of the Company 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) attributable to stockholders of the Company, our most directly comparable U.S. GAAP financial measure.
Our Fleet
The following table sets forth details as of August 16, 2021 for the vessels we owned as of June 30, 2021:
Operating Vessel | Year | Vessel Size | Employment | Current Cargo | Charter |
Ethylene/ethane capable semi- | |||||
Navigator Orion* | 2000 | 22,085 | Time Charter | Ethane | October 2021 |
Navigator Neptune* | 2000 | 22,085 | Spot Market | Repairs | — |
Navigator Pluto | 2000 | 22,085 | Spot Market | Drydock | — |
Navigator Saturn* | 2000 | 22,085 | Spot Market | — | — |
Navigator Venus* | 2000 | 22,085 | Spot Market | Ethane | — |
Navigator Atlas* | 2014 | 21,000 | Spot Market | Ethylene | — |
Navigator Europa* | 2014 | 21,000 | Spot Market | Butadiene | — |
Navigator Oberon* | 2014 | 21,000 | Time Charter | LPG | September 2021 |
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 | December 2021 |
Semi-refrigerated | |||||
Navigator Magellan | 1998 | 20,700 | Spot market | Propylene | — |
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 | Time charter | LPG | May 2022 |
Navigator Scorpio | 2009 | 20,750 | Spot market | — | — |
Navigator Taurus | 2009 | 20,750 | Spot market | LPG | — |
Navigator Virgo | 2009 | 20,750 | Spot market | — | — |
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 | Time charter | LPG | May 2022 |
Navigator Ceres | 2015 | 21,000 | Time charter | LPG | June 2022 |
Navigator Ceto | 2016 | 21,000 | Time charter | LPG | May 2022 |
Navigator Copernico | 2016 | 21,000 | Spot market | LPG | — |
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 | May 2022 |
Navigator Grace | 2010 | 22,500 | Time charter | LPG | August 2021 |
Navigator Galaxy | 2011 | 22,500 | Time charter | Ammonia | November 2021 |
Navigator Genesis | 2011 | 22,500 | Time charter | Ammonia | January 2022 |
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 owned vessels that operate within the Luna Pool
Conference Call Details:
Tomorrow, Tuesday, August 17, 2021 at 10:00 A.M. ET, the Company's management team will host a conference call to discuss the financial results.
Conference Call Details:
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 928592 (Standard International Dial In). Please quote "Navigator" to the operator.
A telephonic replay of the conference and accompanying slides will be available following the completion of the call and will remain available until Tuesday, August 24, 2021. To listen to the archived audio file, visit our website www.navigatorgas.com and click on 'Key Dates' under our 'Investors Centre' page.
Audio Webcast:
There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Navigator Gas
Attention: Investor Relations Department - investorrelations@navigatorgas.com
London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850
About Us
Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation services of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia and owns a
NAVIGATOR HOLDINGS LTD. | ||
Condensed Consolidated Balance Sheets | ||
(Unaudited) | ||
December 31, 2020 | June 30, 2021 | |
(in thousands, except share data) | ||
Assets | ||
Current assets | ||
Cash, cash equivalents and restricted cash | $ 59,271 | $ 96,356 |
Accounts receivable, net of allowance for credit losses of | 14,451 | 22,457 |
Accrued income | 20,073 | 6,765 |
Prepaid expenses and other current assets | 22,015 | 17,047 |
Bunkers and lubricant oils | 8,428 | 11,196 |
Insurance Receivable | 447 | 2,651 |
Amounts due from related parties | 11,853 | 6,141 |
Total current assets | 136,538 | 162,613 |
Non-current assets | ||
Vessels, net | 1,545,688 | 1,515,780 |
Property, plant and equipment, net | 502 | 527 |
Intangible assets, net of accumulated amortization of | 277 | 242 |
Investment in equity accounted joint venture | 148,665 | 147,213 |
Derivative assets | — | 215 |
Right-of-use asset for operating leases | 5,701 | 5,137 |
Prepaid expenses and other non-current assets | 2,037 | 1,522 |
Total non-current assets | 1,702,870 | 1,670,636 |
Total assets | $ 1,839,408 | $ 1,833,249 |
Liabilities and stockholders' equity | ||
Current liabilities | ||
Current portion of secured term loan facilities, net of deferred financing costs | $ 65,662 | $ 86,715 |
Current portion of operating lease liabilities | 1,276 | 1,254 |
Accounts payable | 8,565 | 9,990 |
Accrued expenses and other liabilities | 16,488 | 21,921 |
Accrued interest | 3,398 | 3,209 |
Deferred income | 11,604 | 13,824 |
Amounts due to related parties | 229 | 206 |
Total current liabilities | 107,222 | 137,119 |
Non-current liabilities | ||
Secured term loan facilities and revolving credit facilities, net of current portion and deferred financing | 552,595 | 515,989 |
Senior secured bond, net of deferred financing costs | 69,580 | 69,368 |
Senior unsecured bond, net of deferred financing costs | 98,158 | 98,355 |
Derivative liabilities | 3,007 | 2,943 |
Operating lease liabilities, net of current portion | 5,232 | 4,681 |
Amounts due to related parties | 61,219 | 57,881 |
Total non-current liabilities | 789,791 | 749,217 |
Total Liabilities | 897,013 | 886,336 |
Commitments and contingencies | ||
Stockholders' equity | ||
Common stock—$.01 par value per share; 400,000,000 shares authorized; 55,971,121 shares issued and | 559 | 560 |
Additional paid-in capital | 593,254 | 593,830 |
Accumulated other comprehensive loss | (245) | (212) |
Retained earnings | 346,972 | 350,097 |
Total Navigator Holdings Ltd. stockholders' equity | 940,540 | 944,275 |
Non-controlling interest | 1,855 | 2,638 |
Total equity | 942,395 | 946,913 |
Total liabilities and stockholders' equity | $ 1,839,408 | $ 1,833,249 |
NAVIGATOR HOLDINGS LTD. | ||||
Condensed Consolidated Statements of Operations | ||||
(Unaudited) | ||||
Three months ended June 30, | Six months ended June 30, | |||
2020 | 2021 | 2020 | 2021 | |
(in thousands except share and per share data) | ||||
Revenues | ||||
Operating revenue | $ 79,869 | $ 80,278 | $ 161,126 | $ 160,786 |
Operating revenue- Luna Pool collaborative arrangement | 2,596 | 5,579 | 2,596 | 10,819 |
Total operating revenues | 82,465 | 85,857 | 163,722 | 171,605 |
Expenses | ||||
Brokerage commissions | 1,305 | 974 | 2,560 | 2,167 |
Voyage expenses | 14,728 | 17,749 | 32,272 | 33,365 |
Voyage expenses – Luna Pool collaborative arrangement | 3,043 | 5,479 | 3,043 | 9,611 |
Vessel operating expenses | 26,493 | 28,826 | 53,899 | 55,818 |
Depreciation and amortization | 19,151 | 19,230 | 38,361 | 38,503 |
General and administrative costs | 4,509 | 6,276 | 11,017 | 12,556 |
Other income | (117) | (88) | (117) | (160) |
Total operating expenses | 69,112 | 78,446 | 141,035 | 151,860 |
Operating income | 13,353 | 7,411 | 22,687 | 19,745 |
Other income / (expense) | ||||
Foreign currency exchange gain / (loss) on senior secured bonds | (4,852) | 330 | 6,565 | 338 |
Unrealized gain / (loss) on non-designated derivative instruments | 6,354 | (269) | (7,607 ) | 278 |
Interest expense | (11,128) | (8,647) | (22,668) | (17,608) |
Interest income | 96 | 63 | 315 | 94 |
(Loss) / income before income taxes and share of result of equity | 3,823 | (1,112) | (708) | 2,847 |
Income taxes | (168) | (190) | (336) | (335) |
Share of result of equity accounted joint ventures | (164) | 2,001 | (3,205) | 1,396 |
Net income / (loss) | 3,491 | 699 | (4,249) | 3,908 |
Net income attributable to non-controlling interest | (483) | (394) | (905) | (783) |
Net income / (loss) attributable to stockholders of Navigator | $ 3,008 | $ 305 | $ (5,154 ) | $ 3,125 |
Earnings / (Loss) per share attributable to stockholders of Navigator | ||||
Basic and diluted: | $ 0.05 | $ 0.01 | $ (0.09) | $ 0.06 |
Weighted average number of shares outstanding: | ||||
Basic: | 55,905,600 | 55,971,121 | 55,871,893 | 55,935,859 |
Diluted: | 56,253,778 | 56,306,577 | 55,871,893 | 56,273,533 |
NAVIGATOR HOLDINGS LTD. | ||
Condensed Consolidated Statements of Cash Flows | ||
(Unaudited) | ||
Six Months ended | Six Months ended | |
(in thousands) | ||
Cash flows from operating activities | ||
Net income / (loss) | $ (4,249) | $ 3,908 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Unrealized (gain)/loss on non-designated derivative instruments | 7,607 | (278) |
Depreciation and amortization | 38,361 | 38,503 |
Payment of drydocking costs | (2,546) | (10,061) |
Amortization of share-based compensation | 539 | 577 |
Amortization of deferred financing costs | 2,251 | 1,644 |
Share of result of equity accounted joint venture, net of distributions received | 3,205 | (512) |
Insurance claim receivable | (620) | (2,615) |
Impairment of vessel | — | 2,000 |
Unrealized foreign exchange loss/(gain) on senior secured bonds | (6,565) | (338) |
Other unrealized foreign exchange gain | (440 ) | 14 |
Changes in operating assets and liabilities | ||
Accounts receivable | 1,366 | (8,006) |
Bunkers and lubricant oils | 490 | (2,768) |
Accrued income and prepaid expenses and other current assets | (9,986) | 18,623 |
Accounts payable, accrued interest, accrued expenses and other liabilities | 2,637 | 8,316 |
Amounts due to related parties | 686 | 5,689 |
Net cash provided by operating activities | 32,736 | 54,696 |
Cash flows from investing activities | ||
Payments to acquire ballast water systems | (982) | (323) |
Investment in equity accounted joint venture | (7,500) | (4,000) |
Distributions from equity accounted joint venture | — | 5,966 |
Purchase of other property, plant and equipment | (19) | (193) |
Insurance recoveries | 609 | 411 |
Net cash (used in) / provided by investing activities | (7,892) | 1,861 |
Cash flows from financing activities | ||
Proceeds from secured term loan facilities and revolving credit facilities | 7,500 | 18,000 |
Issuance costs of secured bond | (141) | — |
Issuance costs of secured term loan facilities | — | (26) |
Issuance costs of refinancing of vessel to related parties | (18) | — |
Repayment of financing of vessel to related parties | (3,724) | (3,342) |
Issuance costs of Terminal Facility | (72) | — |
Repayment of secured term loan facilities and revolving credit facilities | (33,267) | (34,104) |
Net cash used in financing activities | (29,722) | (19,472) |
Net (decrease) / increase in cash, cash equivalents and restricted cash | (4,878 ) | 37,085 |
Cash, cash equivalents and restricted cash at beginning of period | 66,130 | 59,271 |
Cash, cash equivalents and restricted cash at end of period | $ 61,252 | $ 96,356 |
Supplemental Information | ||
Total interest paid during the period, net of amounts capitalized | $ 20,559 | $ 16,045 |
Total tax paid during the period | $ 110 | $ 192 |
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 trends or forecasts. 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 quarter-end close procedures and further financial review with respect to the Company's financial statements for the quarter ended June 30, 2021, and other developments that may arise between now and the disclosure of the Company's final results for such quarter;
- global epidemics or other health crises such as the 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;
- our expectations regarding the integration, profitability and success of the vessels and businesses acquired in the Ultragas transaction; 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:https://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-second-quarter-2021-results-unaudited-301356201.html
SOURCE Navigator Gas
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