Navigator Gas Announces Preliminary Fourth Quarter and Financial Year 2024 Results (Unaudited)

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

LONDON, March 12, 2025 (GLOBE NEWSWIRE) --

Fourth Quarter Financial Highlights

• On March 12, 2025, the Board of Navigator Holdings Ltd. (NYSE: NVGS) ("Navigator Holdings,” "Navigator Gas," "our,” "we,” "us” or the "Company”) declared a cash dividend of $0.05 per share for the quarter ended December 31, 2024, (the "Dividend”) under the Company's Return of Capital policy, payable on April 3, 2025 to all shareholders of record as of the close of business U.S. Eastern Time on March 23, 2025.
• Also as part of the Company's Return of Capital policy for the quarter ended December 31, 2024, the Company expects to repurchase approximately $1.9 million of its common stock between March 16, 2025, and March 31, 2025, subject to operating needs, market conditions, legal requirements, stock price and other circumstances, such that the Dividend and share repurchases together equal 25% of net income for the quarter ended December 31, 2024.
• On December 17, 2024 the Company paid a dividend of $0.05 per share of the Company's common stock to all shareholders of record as of the close of business U.S. Eastern Time on November 25, 2024, totaling $3.5 million, and repurchased 69,166 shares of common stock in the open market between November 11, 2024, and December 31, 2024, at an average price of $15.88 per share, totaling approximately $1.1 million, all as part of the Company's Return of Capital policy for the quarter ended September 30, 2024.
• The Company reported total operating revenue of $144.0 million for the three months ended December 31, 2024, compared to $141.6 million for the three months ended December 31, 2023.
• Net Income attributable to stockholders of the Company was $21.6 million for the three months ended December 31, 2024, compared to $17.8 million for the three months ended December 31, 2023.
• EBITDA¹ was $68.0 million for the three months ended December 31, 2024, compared to $66.6 million for the three months ended December 31, 2023.

  Get the latest news
  delivered to your inbox

  Sign up for The Manila Times newsletters

  By signing up with an email address, I acknowledge that I have read and agree to the Terms of Service and Privacy Policy.

• Adjusted EBITDA¹ was $73.4 million for the three months ended December 31, 2024, compared to $71.7 million for the three months ended December 31, 2023.
• Basic earnings per share attributable to stockholders of the Company was $0.31 for the three months ended December 31, 2024, compared to $0.24 per share for the three months ended December 31, 2023.
• Adjusted basic earnings per share attributable to stockholders of the Company¹ was $0.39 per share for the three months ended December 31, 2024, compared to $0.31 per share for the three months ended December 31, 2023.
• The Company increased its debt by $51.9 million to $853.5 million during the three months ended December 31, 2024 as the Company borrowed an aggregate of $68.5 million under its revolving credit facilities and closed the refinancing of its new $147.8 million facility, offset by the repayment with respect to OCY Aurora of $43 million and quarterly repayments on loan facilities of $35.4 million. This compares to a reduction in debt of $24.1 million to $801.6 million during the three months ended September 30, 2024.
• Following a payment of $50.0 million on December 21, 2024 in relation to the Terminal Expansion Project (as defined below) the Company's cash, cash equivalents, and restricted cash was $139.8 million as of December 31, 2024, compared to $127.7 million as at September 30, 2024.

The Company's financial information for the quarter and year ended December 31, 2024, included in this report on Form 6-K 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, 2024, is finalized.

____________________

¹ EBITDA and Adjusted EBITDA, Adjusted Net Income Attributable to stockholders of Navigator Holdings Ltd., and Adjusted Basic Earnings per Share are not measurements prepared in accordance with U.S. GAAP. EBITDA represents net income before net interest expense, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before profit/loss on sale of vessel and unrealized gain/loss on non-designated derivative instruments and unrealized foreign currency exchange and loss on repayment of Unsecured Bonds. Adjusted basic earnings per share represents basic earnings per share adjusted to exclude unrealized gains or losses on non-designated derivative instruments and unrealized foreign currency exchange and any profit or loss on the sale of any vessel, write of deferred financing costs and loss on repayment of unsecured bonds (as defined below). Adjusted Net Income Attributable to stockholders of Navigator Holdings Ltd. represents net income attributable to stockholders of Navigator Holdings Ltd. before unrealized (gain)/loss on non-designated derivative instruments, unrealized foreign currency exchange and (profit)/loss from sale of vessel write of deferred financing costs and loss on repayment of unsecured bonds (as defined below). Management believes that EBITDA, Adjusted EBITDA and Adjusted Basic earnings per share are useful to investors in evaluating the operating performance of the Company. EBITDA, Adjusted EBITDA and Adjusted Basic earnings per share do not represent and should not be considered alternatives to consolidated net income, earnings per share, cash generated from operations or any other GAAP measure. See "Reconciliation of Non-GAAP Financial Measures” below for a reconciliation of EBITDA, Adjusted EBITDA and Adjusted Basic earnings per share to, in each case, the closest comparable GAAP measure.

Other Highlights and Developments

Fleet Operational Update

The average daily time charter equivalent ("TCE") across the fleet was $28,341 for the three months ended December 31, 2024, compared to $28,428 for the three months ended December 31, 2023, and $29,079 for the three months ended September 30, 2024.

Utilization across the fleet remained robust at 92.2% for the three months ended December 31, 2024 compared to 90.9% for three months ended September 30, 2024, and 91.3% for the three months ended December 31, 2023.

U.S. domestic ethylene prices continued on an upward trajectory during the three months ended December 31, 2024, largely due to ongoing maintenance at upstream supply facilities. Such increased prices narrowed the arbitrage between the U.S. and Asia, resulting in a dampening of shipping trading conditions for ethylene, however this was offset by strong ethane demand from China that boosted shipping conditions.

For the three months ended December 31, 2024, we had an average of 31 vessels engaged under time charters, 16 vessels on spot voyage charters and contracts of affreightment ("COAs"), and nine vessels operating in the independently managed Unigas Pool. For the 12-month period commencing October 1, 2024, we have 48% of our available days covered under time charter. For the same 12-month period our midsize and fully refrigerated vessels are almost exclusively employed on time charters, our semi-refrigerated vessels are expected to be employed under a mix of time charters and spot voyage charters, and most of our ethylene-capable vessels are expected to be employed in the spot voyage market.

The average handysize 12-month forward-looking market assessment for semi-refrigerated vessels for the fourth quarter of 2024 increased by $16,000 per calendar month ("pcm”), to an average of $956,000 pcm compared to $940,000 pcm in the third quarter of 2024. The fully-refrigerated 12-month forward-looking market assessment for the fourth quarter of 2024 decreased by $15,000 pcm, to an average of $823,000 pcm compared to $838,000 in the third quarter of 2024. The handysize ethylene 12-month forward-looking market assessment for the fourth quarter of 2024 increased by $63,000 pcm to $1,117,000 pcm compared to $1,070,000 pcm compared to the third quarter of 2024.

Ethylene Export Terminal Update

We own a 50% share in an ethylene export marine terminal at Morgan's Point, Texas (the "Ethylene Export Terminal”) through a joint venture (the "Export Terminal Joint Venture"). The Ethylene Export Terminal throughput for the three months ended December 31, 2024, was 159,183 metric tons, compared to 208,496 metric tons for the three months ended December 31, 2023. Our share of the results of our equity investment in the Ethylene Export Terminal was maintained at $5.6 million for the three months ended December 31, 2024, compared to $5.5 million for the three months ended December 31, 2023, due to the receipt of deficiency fees received in December 2024.

Ethylene exports through our Ethylene Export Terminal totaled 159,183 metric tons in the fourth quarter of 2024, compared to 122,000 metric tons in the third quarter of 2024. We expect throughput for the first quarter of 2025 to be lower than the fourth quarter of 2024 due to the price of U.S. based feedstocks and a narrower price arbitrage between the U.S. and Asia, which we anticipate will reverse in the second quarter of 2025.

Together with Enterprise Products Partners L.P., our joint venture partner, we agreed to invest in an expansion of the Ethylene Export Terminal (the "Terminal Expansion Project”). The Terminal Expansion Project increases the export capacity of the Ethylene Export Terminal from approximately one million tons of ethylene per annum to at least 1.55 million tons per annum and was completed and put into service on December 19, 2024. Two new multi-year offtake contracts related to the expanded volume have been signed, and we continue to expect that additional capacity will be contracted throughout 2025. Until further offtake contracts are signed, volumes will be sold on a spot basis.

The total capital contributions required from us for our share of the construction cost for the Terminal Expansion Project are expected to be approximately $128 million. The Company financed these capital contributions using existing cash resources. Of the expected total of $128 million, $124 million had been contributed as of December 31, 2024, with approximately $89 million of this being contributed during 2024. The final balance of approximately $4 million will be contributed during the first quarter of 2025. It is anticipated that additional debt will be raised in 2025 to recoup some of the cash reserves expended on the Terminal Expansion Project and the Company is currently assessing options in this respect.

Vessel Newbuild

On August 23, 2024, the Company entered into contracts to build two new 48,500 cubic meter capacity liquefied ethylene gas carriers with Jiangnan Shipyard (Group) Co., Ltd. and China Shipbuilding Trading Co., Ltd., in China (the "Original Newbuild Vessels”). As part of the agreements made on August 23, 2024, the Company had an option for two additional newbuild vessels of the same specification and price. On November 21, 2024 the Company exercised the option and entered into contracts to build an additional two new 48,500 cubic meter capacity liquefied ethylene gas carriers ("the Additional Newbuild Vessels"). The Original Newbuild Vessels and Additional Newbuild Vessels (together the "Newbuild Vessels") are scheduled to be delivered to the Company in March 2027, July 2027, November 2027 and January 2028 respectively, at an average shipyard price of $102.9 million per vessel.

The Newbuild Vessels are expected to be able to carry a wide variety of gas products, ranging from the most complex petrochemical gases, such as ethylene and ethane, to LPG and clean ammonia. The Newbuild Vessels are expected to be fitted with dual-fuel engines to facilitate ethane as a low-carbon intensity transitional fuel and made retrofit-ready for using ammonia as a fuel in the future. Additionally, the Newbuild Vessels will be capable of transiting through both the old and new Panama Canal locks, providing enhanced flexibility. The Company expects to finance the cost of the Newbuild Vessels using debt and cash on hand and the Company is currently assessing options in this respect.

The Company has signed its first time charter contract for a short-term period for one of its Newbuild Vessels, and discussions are ongoing with other customers who have expressed interest in chartering the Newbuild Vessels. As such, we currently expect to fix additional time charter contracts for the Newbuild Vessels prior to delivery.

2024 Senior Unsecured Bonds ("2024 Bonds")

On October 17, 2024 the Company successfully issued $100 million of new Senior Unsecured Bonds (the "2024 Bonds") in the Nordic bond market. The 2024 Bonds mature in October 2029 and bear a fixed coupon of 7.25% per annum. In connection with the 2024 Bonds issuance, the Company exercised a call option to repurchase $100 million of its existing $100 million Senior Unsecured Bonds issued in 2020 with ISIN NO0010891955 and a maturity date in September 30, 2025 (the "2020 Bonds"). Navigator exercised the call option on the 2020 Bonds at 101.6% of par value plus accrued interest and the transaction settled on November 1, 2024.

Newly Acquired Vessels

On January 7, 2025, the Company entered into an agreement to acquire three German-built 17,000 cubic meter capacity, ethylene-capable liquefied gas vessels (the "Purchased Vessels").

On February 19, 2025, the Company acquired the first of the three Purchased Vessels, now renamed the Navigator Hyperion for $27.4 million. On February 24, 2025, the Company acquired the second of the Purchased Vessels, now renamed the Navigator Titan for $27.4 million. On or around March 17, 2025 the Company expects to acquire the third of the Purchased Vessels, and which is expected to be renamed the Navigator Vesta, for $29.2 million. The Purchased Vessels are anticipated to operate in the spot market upon or soon after delivery.

On February 7, 2025, the Company entered into a $74.6 million Senior Secured Term Loan (the "February 2025 Facility”) with Nordea Bank Abp, to partially finance the purchase price of the three Purchased Vessels and used cash on hand to pay the remainder of the purchase price. The February 2025 Facility matures on June 7, 2026, however the borrower has an option to extend the facility for a further 18 months. The facility is non-amortizing for the period to June 7, 2026, has a balloon repayment of $25.0 million due on June 6, 2026, if the 18-month extension option is exercised, and bears interest at a rate of Term SOFR plus 180 basis points.

Return of Capital Policy

The Company's current Return of Capital policy, which is subject to operating needs, market conditions, legal requirements, stock price and other circumstances, is based on paying out quarterly cash dividends of $0.05 per share of common stock and returning additional capital in the form of additional cash dividends and/or Share Repurchases (as defined below), such that the two elements combined equal at least 25% of net income for the applicable quarter.

As part of the Return of Capital policy, we expect to repurchase the Company's common stock (the "Share Repurchases”) and any such Share Repurchases will be made via open market transactions, privately negotiated transactions or any other method permitted under U.S. securities laws and the rules of the U.S. Securities and Exchange Commission.

Declarations of any dividends in the future, and the amount of any such dividends, are subject to the discretion of the Company's Board. The Return of Capital policy does not oblige the Company to pay any dividends or repurchase any of its shares in the future and it may be suspended, discontinued or modified by the Company at any time, for any reason. Further, the timing of any Share Repurchases under the Return of Capital policy will be determined by the Company's management and will depend on operating needs, market conditions, legal requirements, stock price, and other circumstances.

Legal Updates

The Company continues to consider the potential change in its corporate domicile from the Marshall Islands to England and Wales (the "Company Redomiciliation”). As part of the Company Redomiciliation, the Company would likely change the corporate domicile of certain of its subsidiaries to England and Wales (the "Subsidiary Redomiciliations” and, together with the Company Redomiciliation, the "Redomiciliations”). The Company expects that the potential Redomiciliations would better align the Company's corporate structure with its current and future business activities and financing plans. Although we have taken certain preliminary steps in connection with the potential Redomiciliations, our Board of Directors (the "Board”) has not yet determined that we should complete the Redomiciliations. When and if the Board makes such a determination, it would present certain aspects of the Redomiciliations to the Company's shareholders for approval. At this time we cannot predict when or if the Board will make a final determination to complete the Redomiciliations. If the Redomiciliations are ultimately completed, we do not expect that the Redomiciliations will have a material impact on our employees, our day-to-day business and operations or our services to customers. Nothing in this Report on Form 6-K should be construed as an offer to sell, or the solicitation of an offer to buy, any securities in connection with the potential Redomiciliations, nor an agreement or promise that any Redomiciliation will occur, nor is it a solicitation of any vote, consent or approval in connection with the potential Redomiciliations.

The Company is aware of reports that Muhamad Kerry Adrianto and certain other business partners and executives of PT Pertamina (Persero), Indonesia's state-owned energy company ("Pertamina”), were arrested by Indonesian authorities on February 25, 2025 as part of an investigation into allegations of corruption. The allegations relate to the mismanagement of crude oil and oil refinery products at Pertamina between 2018 and 2023. The investigation by Indonesian authorities is ongoing.

Mr. Adrianto serves as a director of PT Navigator Khatulistiwa ("PTNK"), our Indonesian joint venture. The Company has begun taking steps to remove Mr. Adrianto from his position as a director at PTNK. Three unencumbered vessels in our fleet and approximately $38.6 million of cash, which we have determined would currently be recorded as restricted cash, are owned by PTNK. The vessels were previously on time charter to Pertamina for the transportation of liquefied petroleum gas within Indonesia, the last and most recent of which expired by its terms on February 15, 2025.

We do not believe these events will have a material impact on the Company or our operations.

Unaudited Results of Operations for the Three Months Ended December 31, 2024 compared to the Three Months Ended December 31, 2023

The following table compares our operating results for the three months ended December 31, 2023 and 2024:

The following table presents selected operating data for the three months ended December 31, 2024 and 2023, which we believe is useful in understanding the basis of movements in our operating revenues.

The following table represents a reconciliation of operating revenues to TCE. Operating revenues are the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.

Operating Revenues. Operating revenues, net of address commissions, was $130.3 million for the three months ended December 31, 2024, an increase of $1.2 million or 0.9% compared to $129.1 million for the three months ended December 31, 2023. This increase was primarily due to:

• a decrease of approximately $0.3 million attributable to a decrease in average monthly time charter equivalent rates, which decreased to an average of approximately $28,341 per vessel per day ($862,035 per vessel per calendar month) for the three months ended December 31, 2024, compared to an average of approximately $28,428 per vessel per day ($864,670 per vessel per calendar month) for the three months ended December 31, 2023;
• an increase of approximately $1.1 million attributable to an increase in fleet utilization, which increased to 92.2% for the three months ended December 31, 2024, compared to 91.3% for the three months ended December 31, 2023;
• a decrease of approximately $0.6 million or 0.5%, attributable to a 23-day decrease in vessel available days for the three months ended December 31, 2024, compared to the three months ended December 31, 2023. This decrease was primarily a result of increased drydocking during the three months ended December 31, 2024, compared to the three months ended December 31, 2023; and
• an increase of approximately $1.0 million primarily attributable to an increase in invoiced pass-through voyage expense for the three months ended December 31, 2024, compared to the three months ended December 31, 2023. 

Operating Revenues - Unigas Pool. Operating revenues - Unigas Pool was $13.8 million an increase of 9.5% for the three months ended December 31, 2024, compared to $12.6 million for the three months ended December 31, 2023, and represents our share of the revenues earned from our nine vessels operating within the independently managed Unigas Pool, based on agreed pool points.

Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.5% of operating revenues, were generally unchanged at $1.7 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023.

Voyage Expenses. Voyage expenses increased by $1.1 million or 5.9% to $19.2 million for the three months ended December 31, 2024, from $18.1 million for the three months ended December 31, 2023. These voyage expenses are pass through costs, corresponding to an increase in operating revenues of the same amount.

Vessel Operating Expenses. Vessel operating expenses decreased by $0.8 million or 1.6% to $46.0 million for the three months ended December 31, 2024, from $46.7 million for the three months ended December 31, 2023. Average daily vessel operating expenses decreased by $148 per vessel per day, or 2%, to $8,920 per vessel per day for the three months ended December 31, 2024, compared to $9,068 per vessel per day for the three months ended December 31, 2023, with the decrease primarily driven by the timing of maintenance costs incurred for the year during the three months ended December 31, 2024 compared to three months ended December 31, 2023

Depreciation and Amortization. Depreciation and amortization decreased by $0.2 million to $32.6 million for the three months ended December 31, 2024 compared to $32.8 million for the three months ended December 31, 2023. Depreciation and amortization included amortization of capitalized drydocking costs of $6.1 million and $5.6 million for the three months ended December 31, 2024 and 2023, respectively.

General and Administrative Costs. General and administrative costs increased by $0.5 million or 5.9% to $9.4 million for the three months ended December 31, 2024, from $8.9 million for the three months ended December 31, 2023.

Unrealized (Loss)/Gains on Non-Designated Derivative Instruments. The unrealized loss of $0.3 million on non-designated derivative instruments for the three months ended December 31, 2024, relates to non-cash fair value losses on interest rate swaps associated with a number of our secured term loan and revolving credit facilities, as a result of a decrease in forward Secured Overnight Financing Rate ("SOFR”) interest rates, compared to an unrealized loss of $5.3 million for the three months ended December 31, 2023.

Interest Expense. Interest expense decreased by $4.3 million, or 25.6%, to $12.4 million for the three months ended December 31, 2024, from $16.6 million for the three months ended December 31, 2023. This is primarily a result of decreases in U.S. dollar SOFR rates, and reflects an average reduction in our debts in the three months ended December 2024 compared to the three months ended December 2023.

Unrealized Foreign Exchange (Loss)/Gain. The unrealized foreign exchange loss of $2.8 million for the three months ended December 31, 2024, relates to losses on foreign currency cash balances held, driven primarily by the Indonesian Rupiah weakening against the U.S. dollar during the three months ended December 31, 2024, compared to an unrealized loss of $0.3 million for the three months ended December 31, 2023. In previous periods, unrealized foreign exchange gains and losses were reported as part of interest expense. However such movements for the quarter ended December 31, 2024 and future quarters will be presented separately.

Loss on Repayment of Senior Bonds. In connection with the repurchase of the 2020 Bonds on November 1, 2024, $1.5 million in redemption premium charges were incurred.

Write off of Deferred Financing Costs.The write off of deferred financing costs of $0.8 million for the three months ended December 31, 2024 relates to the write off of the unamortized portion of the deferred financing costs of our 2020 Bonds at the time of the repurchase in full of our 2020 Bonds.

Income Taxes. Income taxes relate to taxes on our subsidiaries and businesses incorporated around the world including those incorporated in the United States of America. Income taxes were $1.3 million for the three months ended December 31, 2024, compared to $0.1 million for the three months ended December 31, 2023, primarily related to movements in current tax plus deferred tax in relation to our equity investment in the Ethylene Export Terminal.

Share of Result of Equity Method Investments. The share of the result of the Company's 50% ownership in the Export Terminal Joint Venture was income of $5.6 million for the three months ended December 31, 2024, compared to income of $5.5 million for the three months ended December 31, 2023. Volumes exported through the Ethylene Export Terminal were 159,183 tons for the three months ended December 31, 2024, compared to 208,495 tons for the three months ended Dece