Navigator Holdings Ltd. Preliminary First Quarter 2020 Resul

|May 28|magazine110 min read

LONDON, May 28, 2020 /PRNewswire/ --

Highlights

  • Navigator Holdings Ltd. (the "Company", "we", "our" and "us") (NYSE: NVGS) reported operating revenue of $81.3 million for the three months ended March 31, 2020, compared to $76.1 million for the three months ended March 31, 2019.
  • A net loss of $8.5 million (or a loss per share of $0.14) for the three months ended March 31, 2020, which includes COVID-19 related foreign exchange losses of $3.7 million and a $3.0 million loss on the 50/50 joint venture (the "Export Terminal Joint Venture") relating to the ethylene export marine terminal at Morgan's Point, Texas (the "Marine Export Terminal") prior to the commencement of the take-or-pay contracts. This results in a loss relating to our vessels of $1.8 million (or a loss per share of $0.03) compared to a net loss of $3.3 million (or a loss per share of $0.06) for the three months ended March 31, 2019.  
  • Adjusted EBITDA(1) was $26.0 million for the for the three months ended March 31, 2020, compared to $27.1 million for the three months ended March 31, 2019.
  • Fleet utilization improved to 89.0% for the three months ended March 31, 2020 compared to 84.8% for the three months ended March 31, 2019.
  • In April 2020 a further long-term throughput commitment was agreed for the Marine Export Terminal, increasing total offtake commitments to approximately 95% of nameplate capacity.
  • In March 2020, the Company collaborated with Pacific Gas Pte. Ltd. and Greater Bay Gas Co. Ltd. to form and manage a pool of up to fourteen vessels ("Luna Pool") commencing in the second quarter 2020. The Luna Pool will focus on the transportation of ethylene and ethane to meet the growing demands of our customers.
  • We have achieved a record of 489 days without a Lost-Time-Incident (LTI) across our in-house technical managed fleet of 17 vessels.
  • The conversion last year of Navigator Aurora to using ethane for propulsion has resulted in carbon emissions decreasing by approximately 25% for the first quarter, which is the equivalent of taking around 5,000 cars off the road. 

The Company's financial information for the quarter ended March 31, 2020 included in this press release is preliminary and is subject to change in connection with the completion of the Company's quarter-end close procedures and further financial review. Actual results may differ from these estimates as a result of the completion of the Company's quarter-end closing procedures, review adjustments and other developments that may arise between now and the time such financial information for the quarter ended March 31, 2020 is finalized.

Recent Developments

Terminal

In April 2020, a further long-term throughput commitment was executed for the Marine Export Terminal, increasing total offtake commitments to approximately 95% of the one million ton annual nameplate capacity. The terminal is now fully functional and the throughput agreements are ramping up. The terminal is expected to operate at a level of approx. 600,000 tons per annum pro-rata until the cryogenic storage tank becomes operational later this year.

The Company did not make any contributions to the Export Terminal Joint Venture during the first quarter, However since March 31, 2020 the Company has contributed $7.5 million to the Export Terminal Joint Venture by drawing down on the Company's terminal credit facility. This is in addition to the $125.5 million contributed as of December 31, 2019 of our expected share of the approximate $150.0 million capital cost of the Marine Export Terminal.

Luna Pool

In March 2020, the Company collaborated with Pacific Gas Pte. Ltd. and Greater Bay Gas Co. Ltd. to form and manage the Luna Pool, focusing on the transportation of ethylene and ethane to meet the growing demands of our customers. The Luna Pool became operational during the second quarter of 2020, initially with the introduction of seven vessels.  It is expected that all 14 will have joined the pool by the end of the second quarter. Currently nine of the 12 vessels in the pool are transporting ethylene, two carrying ethane and one carrying propylene.

Trends 

2020 began well in January this year, with healthy utilization of our vessels at 97% and Clarksons' 12 month timecharter assessment reaching a high of $695,000 per calendar month. This upward trajectory was disrupted by the COVID-19 Pandemic and the subsequent lock-downs, first starting in Asia which were swiftly followed by the rest of the world. As a consequence, our February and March utilization levels fell to 84% and 85% respectively as a result of reduced economic activity. However, LPG demand remained relatively resilient to COVID-19 as it fulfills a fundamental energy need for heating and cooking among the world's population. Most of the LPG transported in handysize vessels cater for this domestic demand and we expect the traditional intra-continent handysize LPG trades to remain largely unaffected. The larger gas carrier segment is more sensitive to changes in global LPG price arbitrage as well as to the replacement of LPG as a preferred feedstock in the petrochemical sector compared to the handysize segment. The U.S. became the largest exporter of LPG in 2019 and the volume is dependent on both local demand and global pricing which affects the monthly output from the country and more importantly the availability of tons to be shipped. This in turn impacts the rate levels for Very Large Gas Carriers. Handysize vessels distribute a small fraction of the U.S. LPG volume as the vast majority is transported long distance across the Pacific Ocean by larger vessels. By contrast, Handysize vessels are predominately employed in other LPG exporting and consuming areas which are more sheltered from global price arbitrage movements. Whereas the larger gas carrier segments have high price volatility, the handysize quoted timecharter index fell by only 5% to $665,000 per calendar month at the end of the first quarter.

April continued in the same vein as March in terms of utilization of our vessels. However China and many other countries are gradually beginning to ease out of lock-down and re-start manufacturing sites. Ethylene from the Marine Export Terminal re-commenced during May with the cargoes moving world-wide. U.S. produced propylene was exported for the first time in more than a decade on handysize vessels bound for Far Eastern destinations. European producers continued exporting butadiene to East of Suez importers. These deep-sea petrochemical trades provide robust ton-mile demand to the segment. Therefore, combining both LPG and petrochemical trends during the period, we see May utilization of our vessels regaining some lost ground and is on track to reach the approximately 90% level. 2020 has been and continues to be disrupted by COVID-19. Uncertainty remains as to the impact of COVID-19. As more and more countries ease themselves out of lock-downs and re-start their economies it is expected that demand for long haul petrochemical cargoes and regional LPG distribution will increase.

COVID-19

The impact of COVID-19 continues to affect global economic conditions that effect our business, financial condition and the results of our operations. The ultimate severity of COVID-19 is uncertain and its future effects depend on the spread of the outbreak, the reactions of various national governments and the duration of the impacts of the virus. Therefore an estimate of the likely impact cannot be made at this time.

The Company and its two third-party technical managers continue to have challenges with crew changes, consistent with most shipowners, although a small number of crew changes have recently taken place, as a result of some countries being more accessible than others. The Company continues to assess when it is safe and feasible to undertake crew changes.

Drydocking vessels and arranging surveyors to carry out Ship Inspection Report Programme (SIRE) and Chemical Distribution Institute (CDI) inspections also remains more complex, with flag state, classification societies, as well as our charterers currently taking a pragmatic approach when it comes to providing extensions or requiring vetting approvals for our vessels.

The Company has no debt facilities maturing during 2020 and has only one debt instrument maturing in 2021, a $100.0 million bond with Nordic Trustee AS as bond trustee, that matures in February 2021. The Company continues to assess the capital markets and is considering options for deferring its maturity or refinancing the bond using alternative capital raising.

Results of Operations for the Three Months Ended March 31, 2019 Compared to the Three Months Ended March 31, 2020

The following table compares our operating results for the three months ended March 31, 2019 and 2020:


Three Months Ended
March 31,
2019
 

Three Months Ended
March 31,
2020
 

Percentage
Change
 


(in thousands, except percentages)

Operating revenue.......................................................................

$             76,103

$             81,257

6.8 %





Operating expenses:




Brokerage Commissions.................................................

1,309

1,255

(4.1 %)

Voyage expenses..............................................................

13,357

17,544

31.3 %

Vessel operating expenses..............................................

29,474

27,406

(7.0 %)

Depreciation and amortization......................................

18,947

19,210

1.4 %

General and administrative costs..................................

4,803

6,031

25.6 %





Total operating expenses................................................

67,890

71,446

5.2 %





Operating income........................................................................

8,213

9,811

19.5 %

Foreign currency exchange (loss) / gain on senior secured bonds..............................................................

(184)

11,417

                 n/a

Unrealized gain / (loss) on non-designated derivative instruments...................................................................

783

(13,961)

                 n/a

Interest expense................................................................

(12,153)

(12,372)

1.8 %

Interest income.................................................................

215

219

1.9 %





Loss before income taxes and share of result of equity accounted joint venture.......................................................

(3,126)

(4,886)

56.3 %

Income taxes...............................................................................

(93)

(168)

80.6 %

Share of result of equity accounted joint venture................

(38)

(3,041)





Net loss..........................................................................................

(3,257)

(8,095)

148.5 %

Net income attributable to non-controlling interest..............

(422)





Net loss attributable to stockholders of Navigator Holdings Ltd...........................................................................

$             (3,257)

$             (8,517)

161.5 %





Operating Revenue. Operating revenue net of address commission, increased by $5.2 million or 6.8% to $81.3 million for three months ended March 31, 2020, from $76.1 million for the three months ended March 31, 2019. This increase was primarily due to:

  • an increase in operating revenue of approximately $3.0 million attributable to an increase in fleet utilization which rose from 84.8% for the three months ended March 31, 2019 to 89.0% for the three months ended March 31, 2020;
  • an increase in operating revenue of approximately $0.6 million attributable to an increase in vessel available days of 34 days or 1.0% for the three months ended March 31, 2020 primarily due to an increase in the number of ownership days for the leap year;
  • an increase in operating revenue of approximately $4.2 million primarily attributable to an increase in pass through voyage costs, as the number and duration of voyage charters during the three months ended March 31, 2020 increased, compared to the three months ended March 31, 2019; and
  • a decrease in operating revenue of approximately $2.6 million attributable to an decrease in average monthly time charter equivalent rates, which decreased to an average of approximately $634,350 per vessel per calendar month ($20,855 per day) for the three months ended March 31, 2020, compared to an average of approximately $662,526 per vessel per calendar month ($21,782 per day) for the three months ended March 31, 2019.

The following table presents selected operating data for the three months ended March 31, 2019 and 2020, which we believe is useful in understanding the basis for movements in operating revenue:


Three Months Ended
March 31, 2019
 

Three Months Ended
March 31, 2020
 

Fleet Data:



Weighted average number of vessels..............................

38.0

38.0

Ownership days...................................................................

3,420

3,458

Available days....................................................................

3,398

3,432

Operating days....................................................................

2,881

3,055

Fleet utilization....................................................................

84.8 %

89.0 %

Average daily time charter equivalent rate (*)..............

$                     21,782

$                     20,855

*   Non-GAAP Financial Measure - Time charter equivalent: Time charter equivalent ("TCE"), rate is a measure of the average daily revenue performance of a vessel. TCE is not calculated in accordance with U.S. GAAP. For all charters, we calculate TCE by dividing total operating revenues, less any voyage expenses, by the number of operating days for the relevant period. Under a time charter, the charterer pays substantially all of the vessel voyage related expenses, whereas for voyage charters, also known as spot market charters, we pay all voyage expenses. TCE rate is a shipping industry performance measure used primarily to compare period-to-period changes in a company's performance despite changes in the mix of charter types (i.e., spot charters, time charters and contracts of affreightment) under which the vessels may be employed between the periods. We include average daily TCE rate, as we believe it provides additional meaningful information in conjunction with net operating revenues, because it assists our management in making decisions regarding the deployment and use of our vessels and in evaluating their financial performance. Our calculation of TCE rate may not be comparable to that reported by other companies.

Reconciliation of Operating Revenue to TCE rate

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


Three Months Ended
March 31, 2019
 

Three Months Ended
March 31, 2020
 

Fleet Data:



Operating revenue.......................................................

$                     76,103

81,257

Voyage expenses.........................................................

13,357

17,544




Operating revenue less Voyage expenses...............

62,746

63,713




Operating days.............................................................

2,881

3,055

Average daily time charter equivalent rate............

$                     21,782

$                     20,855

Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.0% of revenue, decreased by 4.1% to $1.3 million for the three months ended March 31, 2020, from $1.3 million for the three months ended March 31, 2019 despite an increase in operating revenue on which brokerage commissions are based. The decrease was primarily due to a reduction in the brokerage commissions percentage charged on some of our time charters.

Voyage Expenses. Voyage expenses increased by 31.3% to $17.5 million for three months ended March 31, 2020, from $13.4 million for the three months ended March 31, 2019. This was primarily due to an increase in the number and duration of voyage charters undertaken during the three months ended March 31, 2020, compared to the three months ended March 31, 2019, with these increased voyage costs being pass through costs, corresponding to an increase in operating revenue of the same amount.

Vessel Operating Expenses. Vessel operating expenses decreased by 7.0% to $27.4 million for the year three months ended March 31, 2020, from $29.5 million for the three months ended March 31, 2019. Average daily vessel operating expenses decreased by $693 per vessel per day, or 8.0%, to $7,925 per vessel per day for the three months ended March 31, 2020, compared to $8,618 per vessel per day for the three months ended March 31, 2019. This was primarily due to unexpected costs incurred for repairs and maintenance for the three months ended March 31, 2019, which have not reoccurred for the three months ended March 31, 2020.

Depreciation and Amortization. Depreciation and amortization expense increased by 1.4% to $19.2 million for the three months ended March 31, 2020, from $18.9 million for the three months ended March 31, 2019. Depreciation and amortization expense included amortization of capitalized drydocking costs of $2.1 million and $1.9 million for the three months ended March 31, 2020 and 2019 respectively.

General and Administrative Costs. General and administrative costs increased by $1.2 million or 25.6% to $6.0 million for the three months ended March 31, 2020, from $4.8 million for the three months ended March 31, 2019. The increase in general and administrative costs was primarily due to a revaluation of an Indonesian Rupiah bank account as at March 31, 2020, following a significant weakening of the Indonesian Rupiah against the U.S. dollar in March 2020 as a result of COVID-19, before regaining most of the lost value since the quarter end.

Non-operating Results

Foreign currency exchange gain on senior secured bonds. Exchange gains and losses relate to non-cash movements on our 600 million Norwegian Kroner 2018 Bonds which are translated to U.S. Dollars at the prevailing exchange rate as of March 31, 2020. The foreign currency exchange gain of $11.4 million for the three months ended March 31, 2020 was as a result of the Norwegian Kroner continuing to weaken against the U.S. dollar, being NOK10.5 to USD 1.0 as of March 31, 2020 compared to NOK8.8 to USD 1.0 as of December 31, 2019.

Unrealized loss on non-designated derivative instruments. The unrealized loss on non-designated derivative instruments of $14.0 million relates to the fair value movement in our cross-currency interest rate swap for the three months ended March 31, 2020 and is primarily due to the weakening of the Norwegian Kroner against the U.S. dollar. The unrealized gain on this swap for the three months ended March 31, 2019 was $0.8 million.

Interest Expense. Interest expense increased by $0.2 million, or 1.8%, to $12.4 million for the three months ended March 31, 2020, from $12.2 million for the three months ended March 31, 2019. This is primarily as a result of interest on the Marine Export Terminal that is no longer being capitalized, following the commencement of operations in December 2019, partially offset by a reduction in U.S. LIBOR on all of our floating rate debt facilities.

Income Taxes. Income tax relates to taxes on our subsidiaries incorporated in the United Kingdom, Poland and Singapore and our consolidated variable interest entity ("VIE"), incorporated in Malta. For the three months ended March 31, 2020, we accrued taxes of $168,000 compared to accrued taxes of $93,000 for the three months ended March 31, 2019.

Share of result of equity accounted joint venture. The share of result of the Company's 50% ownership in the Export Terminal Joint Venture was a loss of $3.0 million for the three months ended March 31, 2020, primarily as a result of initial low volumes passing through the Marine Export Terminal following its commencement of operations in December 2019.

Non-Controlling Interest. We have entered into a sale and leaseback arrangement with a wholly-owned special purpose vehicle ("lessor SPV") of a financial institution. While we do not hold any equity investments in this lessor SPV, we have determined that we are the primary beneficiary of this entity and accordingly, we are required to consolidate this VIE into our financial results. Thus, the income attributable to the financial institution of $0.4 million is presented as the non-controlling interest in our financial results.

Reconciliation of Non-GAAP Financial Measures

The following table sets forth a reconciliation of net income to EBITDA and Adjusted EBITDA for the three months ended March 31, 2019 and 2020:


(in thousands)


Three months ended March 31,


2019

2020


Net loss

$           (3,257)

$             (8,095 )


Net interest expense

11,938

12,153


Income taxes

93

168


Depreciation and amortization 

18,947

19,210






EBITDA(1)

$            27,721

$        23,436


Foreign currency exchange loss / (gain) on senior secured bonds    

184

(11,417)


Unrealized (gain) / loss on non-designated derivative instruments

(783)

13,961






Adjusted EBITDA(1)

$        27,122

$        25,980











1  EBITDA and Adjusted EBITDA are not measurements prepared in accordance with U.S. GAAP (non-GAAP financial measures). EBITDA represents net income before net interest expense, income taxes and depreciation and amortization. We define Adjusted EBITDA as EBITDA before foreign currency exchange gain or loss on senior secured bonds and unrealized gain or loss on non-designated derivative instruments. Management believes that EBITDA and Adjusted EBITDA are useful to investors in evaluating the operating performance of the Company. EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to consolidated net income, cash generated from operations or any measure prepared in accordance with U.S. GAAP, and our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies. See the table above for a reconciliation of EBITDA and Adjusted EBITDA to net loss, our most directly comparable financial measure calculated accordance with U.S. GAAP.

Our Fleet

The following table sets forth our vessels as of May 28, 2020: 

Operating Vessel

Year
Built
 

Vessel Size
(CBM)
 

Employment
Status

Current Cargo

Charter
Expiration Date

Ethylene/ethane capable semi-refrigerated






Navigator Orion........................................................

2000

22,085

Spot market

Ethylene

Navigator Neptune...................................................

2000

22,085

Time charter

Ethane

October 2020

Navigator Pluto.........................................................

2000

22,085

Time charter

LPG

July 2020

Navigator Saturn......................................................

2000

22,085

Spot market

Ethylene

Navigator Venus.......................................................

2000

22,085

Time charter

Ethane

November 2020

Navigator Atlas.........................................................

2014

21,000

Contract of affreightment

Ethylene

July 2020 

Navigator Europa.....................................................

2014

21,000

Contract of affreightment

Ethylene

August 2020

Navigator Oberon.....................................................

2014

21,000

Spot market

Ethylene

Navigator Triton.......................................................

2015

21,000

Spot market

Ethylene

Navigator Umbrio.....................................................

2015

21,000

Spot market

Propylene

Navigator Aurora......................................................

2016

37,300

Time charter

Ethane

December 2026

Navigator Eclipse......................................................

2016

37,300

Spot market

Navigator Nova........................................................

2017

37,300

Time charter

Ethane

June 2020

Navigator Prominence.............................................

2017

37,300

Time charter

Ethane

October 2020







Semi-refrigerated






Navigator Magellan.................................................

1998

20,700

Drydock

Navigator Aries.........................................................

2008

20,750

Time charter

LPG

July 2020

Navigator Capricorn................................................

2008

20,750

Time charter

LPG

June 2020

Navigator Gemini.....................................................

2009

20,750

Spot market

Butadiene

Navigator Pegasus....................................................

2009

22,200

Spot market

Propylene

Navigator Phoenix....................................................

2009

22,200

Spot market

Propylene

Navigator Scorpio.....................................................

2009

20,750

Time charter

LPG

June 2020 

Navigator Taurus......................................................

2009

20,750

Spot market

LPG

Navigator Virgo.........................................................

2009

20,750

Spot market

LPG

Navigator Leo...........................................................

2011

20,600

Time charter

LPG

December 2023

Navigator Libra.........................................................

2012

20,600

Time charter

LPG

December 2023

Navigator Centauri...................................................

2015

21,000

Spot market

Butadiene

Navigator Ceres........................................................

2015

21,000

Spot market

Butadiene

Navigator Ceto..........................................................

2016

21,000

Spot market

Butadiene

Navigator Copernico................................................

2016

21,000

Spot market

Butadiene

Navigator Luga.........................................................

2017

22,000

Time charter

LPG

February 2022

Navigator Yauza......................................................

2017

22,000

Time charter

LPG

April 2022







Fully-refrigerated






Navigator Glory........................................................

2010

22,500

Time charter

Ammonia

June 2021

Navigator Grace........................................................

2010

22,500

Time charter

LPG

June 2020

Navigator Galaxy.....................................................

2011

22,500

Spot market

Navigator Genesis.....................................................

2011

22,500

Time charter

LPG

June 2020

Navigator Global......................................................

2011

22,500

Time charter

LPG

November 2020

Navigator Gusto........................................................

2011

22,500

Time charter

LPG

December 2020

Navigator Jorf...........................................................

2017

38,000

Time charter

Ammonia

August 2027

Conference Call Details:

Tomorrow, Friday, May 29 , 2020, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the preliminary financial results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928 592 (Standard International Dial In). Please quote "Navigator" to the operator. There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

A telephonic replay of the conference call will be available until June 5, 2020, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009 785 (Standard International Dial In). Access Code: 11870348#

About Us

Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet. The Company also owns a 50% share, through a joint venture in an ethylene export marine terminal at Morgan's Point, Texas on the Houston Ship Channel, USA.

Navigator Gas

Attention: Investor Relations Department  - [email protected]

New York: 650 Madison Ave, New York, NY 10022. Tel: +1 212 355 5893

London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850

 

Navigator Holdings Ltd.
Unaudited Condensed Consolidated Balance Sheets
(Unaudited)


December 31, 2019

March 31, 2020


(in thousands, except share data)

Assets



Current assets



Cash and cash equivalents.....................................................................................................................

$                 64,820

$                 51,027

Restricted cash..........................................................................................................................................

1,310

15,200

Accounts receivable, net.........................................................................................................................

23,462

24,366

Accrued income........................................................................................................................................

6,280

3,020

Prepaid expenses and other current assets...........................................................................................

17,670

19,514

Bunkers and lubricant oils......................................................................................................................

9,645

10,705

Insurance receivable

2,939

3,228




Total current assets..................................................................................................................................

126,126

127,060

Non-current assets



Vessels in operation, net..........................................................................................................................

1,609,527

1,592,100

Property, plant and equipment, net.......................................................................................................

1,159

991

Investment in equity accounted joint venture....................................................................................

130,660

127,619

Right-of-use asset for operating leases.................................................................................................

6,781

6,517




Total non-current assets..........................................................................................................................

1,748,127

1,727,227




Total assets...............................................................................................................................................

$           1,874,253

$           1,854,287




Liabilities and stockholders' equity



Current liabilities



Current portion of secured term loan facilities, net of deferred financing costs...........................

$                 64,703

$                 64,775

Senior unsecured bond, net of deferred financing costs....................................................................

-

98,953

Current portion of operating lease liabilities........................................................................................

1,178

1,145

Accounts payable.....................................................................................................................................

10,472

12,276

Accrued expenses and other liabilities..................................................................................................

14,124

16,531

Accrued interest........................................................................................................................................

4,424

2,367

Deferred income.......................................................................................................................................

14,154

15,170

Amounts due to related parties..............................................................................................................

451

446




Total current liabilities.............................................................................................................................

109,506

211,663




Non-current liabilities



Secured term loan facilities and revolving credit facilities, net of current portion and deferred financing costs.....................................................................................................................................

578,676

562,443

Senior secured bond, net of deferred financing costs........................................................................

67,503

56,142

Senior unsecured bond, net of deferred financing costs....................................................................

98,513

-

Derivative liabilities..................................................................................................................................

5,769

19,730

Operating lease liabilities, net of current portion.................................................................................

6,329

5,683

Amounts due to related parties..............................................................................................................

68,055

66,698




Total non-current liabilities.....................................................................................................................

824,845

710,696




Total liabilities........................................................................................................................................

934,351

922,359

Commitments and contingencies



Stockholders' equity



Common stock—$.01 par value per share; 400,000,000 shares authorized; 55,907,438 shares issued and outstanding, (December 31, 2019: 55,826,644)...........................................

558

559

Additional paid-in capital.......................................................................................................................

592,010

592,361

Accumulated other comprehensive loss...............................................................................................

(331 )

(411)

Retained earnings.....................................................................................................................................

347,566

338,898




Total Navigator Holdings Ltd. stockholders' equity..........................................................................

939,803

931,407

Non-controlling interest...........................................................................................................................

99

521




Total equity...............................................................................................................................................

939,902

931,928




Total liabilities and stockholders' equity..........................................................................................

$           1,874,253

$           1,854,287




Navigator Holdings Ltd.
Unaudited Condensed Consolidated Statements of Income
(Unaudited)


Three months ended

March 31,

(in thousands except share data)


2019

2020

Revenues



Operating revenue...........................................................................................................................................................................................................


$            76,103

$            81,257





Expenses




Brokerage commissions.................................................................................................................................................................................................



1,309

1,255

Voyage expenses............................................................................................................................................................................................................



13,357

17,544

Vessel operating expenses.............................................................................................................................................................................................



29,474

27,406

Depreciation and amortization....................................................................................................................................................................................



18,947

19,210

General and administrative costs.................................................................................................................................................................................



4,803

6,031






Total operating expenses.............................................................................................................................................................................................



67,890

71,446






Operating income..........................................................................................................................................................................................................



8,213

9,811

Other income/(expense)





Foreign currency exchange (loss) / gain on senior secured bonds............................



(184 )

11,417

Unrealized gain / (loss) on non-designated derivative instruments.........................



783

(13,961 )

Interest expense..............................................................................................................................................................................................................



(12,153 )

(12,372 )

Interest income................................................................................................................................................................................................................



215

219






Loss before income taxes and share of result of equity accounted joint venture..........................................................................................



(3,126 )

(4,886 )

Income taxes...................................................................................................................................................................................................................



(93)

(168 )

Share of result of equity accounted joint venture....................................................................................................................................................



(38)

(3,041 )






Net loss.....................................................................................................................................



(3,257)

(8,095)

Net income attributable to non-controlling interest.........................................................



(422)






Net loss attributable to stockholders of Navigator Holdings Ltd......................................................................................................................



$             (3,257 )

(8,517 )






Earnings/loss per share:





Basic and diluted:...........................................................................................................................................................................................................



$              (0.06)

$               (0.14 )






Weighted average number of shares outstanding:





Basic and diluted:...........................................................................................................................................................................................................



55,680,889

55,838,186






 

Navigator Holdings Ltd.
Unaudited Condensed Consolidated Statements of Stockholders' Equity
(Unaudited)
(in thousands, except share data)

For the three months ended March 31, 2019:









(In thousands, except share data)


Common stock






Number of
shares

Amount 0.01
par value

Additional
Paid-in Capital

Accumulated
Other
Comprehensive
Income (Loss)

Retained
Earnings

Total

December 31, 2018           

55,657,631

$           557

$     590,508

$             (363 )

$ 364,408

$ 955,110

Adjustment to equity for the adoption of the new
leasing standard            

(136 )

(136 )

Restricted shares issued March 20, 2019       

174,438

1

1

Net income          

(3,257 )

(3,257 )

Foreign currency translation             

(48 )

(48 )

Share-based compensation plan     

345

345








March 31, 2019 

55,832,069

$           558

$     590,853

$             (411 )

$ 361,015

$ 952,015








For the three months ended March 31, 2020: 


Common stock








Number of
shares

Amount 0.01
par value

Additional
Paid-in Capital

Accumulated
Other
Comprehensive
Income (Loss)

Retained
Earnings

Non-controlling interest

Total


December 31, 2019............................

55,826,644

$      558

$    592,010

$         (331)

$    347,566

$           99

$  939,902

Adjustment to equity for the adoption
of the new credit losses standard..........................................

(151)

(151)

Restricted shares issued March 19, 2020.................................................

80,794

1

1

Net income...........................................

(8,517)

422

(8,095)

Foreign currency translation.............

(80)

(80)

Share-based compensation plan......

351

351









March 31, 2020..................................

55,907,438

$      559

$    592,361

$         (411)

$    338,898

$        521

$ 931,928


























 

Navigator Holdings Ltd.
Unaudited Condensed Consolidated Statements of Cash Flows
(Unaudited)

 

 


Three months ended
March 31,
2019
(in thousands)

 

Three months ended
March 31,
2020
(in thousands)

 

Cash flows from operating activities



Net loss.........................................................................................................................................

$         (3,257)

$         (8,095)

Adjustments to reconcile net income to net cash provided by operating activities



Unrealized (gain) / loss on non-designated derivative instruments...................................

(783 )

13,961

Depreciation and amortization...............................................................................................

18,947

19,210

Payment of drydocking costs..................................................................................................

(1,675 )

(1,380)

Amortization of share-based compensation........................................................................

346

352

Amortization of deferred financing costs..............................................................................

604

1,073

Share of result of equity accounted affiliates......................................................................

38

3,041

Insurance claim debtor.............................................................................................................


(407)

Unrealized foreign exchange loss / (gain) on senior secured bonds..................................

184

(11,417)

Other unrealized foreign exchange gain/(loss)......................................................................

34

(432)

Changes in operating assets and liabilities



Accounts receivable..................................................................................................................

(6,585 )

(904)

Bunkers and lubricant oils........................................................................................................

(2,706 )

(1,060)

Prepaid expenses and other current assets............................................................................

(1,738 )

1,416

Accounts payable, accrued interest and accrued expenses and other liabilities............

(626 )

3,589




Net cash provided by operating activities..........................................................................

2,783

18,947




Cash flows from investing activities



Payment to acquire vessels......................................................................................................

(233 )

(294)

Investment in equity accounted joint venture.....................................................................

(32,385 )

Purchase of other property, plant and equipment...............................................................

(68 )

(15)

Insurance recoveries..................................................................................................................

118




Net cash used in investing activities.....................................................................................

(32,686)

(191)




Cash flows from financing activities



Proceeds from secured term loan facilities and revolving credit facilities.......................

107,000

Issuance cost of refinancing of vessel...................................................................................

(19)

Direct financing cost of secured term loan and revolving credit facilities.......................

(1,442 )

Direct financing cost of terminal credit facility....................................................................

(7)

Repayment of secured term loan facilities and revolving credit facilities.......................

(93,275 )

(16,633)

Repayment of refinancing of vessel to related parties.......................................................

(2,000)




Net cash provided by/(used in) financing activities.........................................................

12,283

(18,659)




Net (decrease)/increase in cash, cash equivalents and restricted cash........................

(17,620)

97

Cash, cash equivalents and restricted cash at beginning of period..............................

71,515

66,130




Cash, cash equivalents and restricted cash at end of period..........................................

$         53,895

$        66,227




IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto, including our financial forecast. In addition, we and our representatives may from time to time make other oral or written statements that are also forward-looking statements. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate as described in this press release. In some cases, you can identify the forward-looking statements by the use of words such as "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "foresee," "believe," "estimate," "predict," "propose," "potential," "continue," or the negative of these terms or other comparable terminology. Forward-looking statements appear in a number of places in this press release. These risks and uncertainties include, but are not limited to:

  • the completion of the Company's quarter-end close procedures and further financial review with respect to the Company's financial statements for the quarter ended March 31, 2020, and other developments that may arise between now and the disclosure of the Company's final results for such quarter;
  • global epidemics or other health crises such as the recent outbreak of coronavirus COVID-19, including its impact on our business;
  • future operating or financial results;
  • pending acquisitions, business strategy and expected capital spending;
  • operating expenses, availability of crew, number of off-hire days, drydocking requirements and insurance costs;
  • fluctuations in currencies and interest rates;
  • general market conditions and shipping market trends, including charter rates and factors affecting supply and demand;
  • our ability to continue to comply with all our debt covenants;
  • our financial condition and liquidity, including our ability to refinance our indebtedness as it matures or obtain additional financing in the future to fund capital expenditures, acquisitions and other corporate activities;
  • estimated future capital expenditures needed to preserve our capital base;
  • our expectations about the availability of vessels to purchase, the time that it may take to construct new vessels, or the useful lives of our vessels;
  • our continued ability to enter into long-term, fixed-rate time charters with our customers;
  • the availability and cost of low sulfur fuel oil compliant with the International Maritime Organization sulfur emission limit reductions, generally referred to as "IMO 2020," which took effect January 1, 2020;
  • our vessels engaging in ship to ship transfers of LPG or petrochemical cargoes which may ultimately be discharged in sanctioned areas or to sanctioned individuals without our knowledge.
  • changes in governmental rules and regulations or actions taken by regulatory authorities;
  • potential liability from future litigation;
  • our expectations relating to the payment of dividends;
  • our expectation regarding providing in-house technical management for certain vessels in our fleet and our success in providing such in-house technical management;
  • our expectations regarding the completion of construction and financing of the Marine Export Terminal and the financial success of the Marine Export Terminal and our related Export Terminal Joint Venture with Enterprise Products Partners L.P.; and
  • other factors detailed from time to time in other periodic reports we file with the Securities and Exchange Commission.

All forward-looking statements included in this press release are made only as of the date of this press release. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. We expressly disclaim any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in our views or expectations, or otherwise. We make no prediction or statement about the performance of our common stock.

 

Cision View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-first-quarter-2020-results-301067347.html

SOURCE Navigator Gas