Financial Highlights
- On
May 14, 2024 , the Board ofNavigator Holdings Ltd. (NYSE: NVGS) declared a cash dividend of$0.05 per share for the quarter endedMarch 31, 2024 , (the “Dividend”) under the Company's Return of Capital policy. The Dividend will be payable onJune 25, 2024 , to all shareholders of record as of the close of businessU.S. E.D.T. onJune 4, 2024 . - Also as part of the Company's Return of Capital policy for the quarter ended
March 31, 2024 , the Company expects to repurchase approximately$2.0 million of common stock betweenMay 16, 2024 , andJune 30, 2024 , subject to operating needs, market conditions, and other circumstances, such that the Dividend and share repurchases together equal 25% of net income for the quarter endedMarch 31, 2024 . - The Company repurchased 52,630 shares of common stock during the quarter ended
March 31, 2024 , at an average price of$15.20 per share. - The Company reported total operating revenue of
$134.2 million for the three months endedMarch 31, 2024 , compared to$136.0 million for the three months endedMarch 31, 2023 . - Net Income attributable to stockholders' of the Company was
$22.6 million for the three months endedMarch 31, 2024 , compared to$18.8 million for the three months endedMarch 31, 2023 . - Basic earnings per share was
$0.31 for the three months endedMarch 31, 2024 , compared to$0.25 per share for the three months endedMarch 31, 2023 . Basic earnings per share adjusted to exclude realized and unrealized gains or losses on non-designated derivative instruments of$0.4 million and$4.3 million for the quarters endedMarch 31, 2024 and 2023 respectively, was$0.31 per share for the three months endedMarch 31, 2024 , compared to$0.30 per share for the three months endedMarch 31, 2023 . - EBITDA1 was
$73.7 million for the three months endedMarch 31, 2024 , compared to$64.6 million for the three months endedMarch 31, 2023 . Adjusted EBITDA1 was$74.1 million for the three months endedMarch 31, 2024 , compared to$69.0 million for the three months endedMarch 31, 2023 . - Debt reduced by
$31.1 million to$862.1 million during the three months endedMarch 31, 2024 , with cash, cash equivalents and restricted cash standing at$172.2 million as ofMarch 31, 2024 .
_______________
1 EBITDA and Adjusted EBITDA are not measurements prepared in accordance with
Other Highlights and Developments
Operational Update
Total operating revenue was
Average daily time charter equivalent2 ("TCE") across the fleet increased to
Utilization across the fleet decreased from 91.3% in the fourth quarter of 2023 to 89.3% in the first quarter of 2024. Utilization during the first quarter of 2023 was 96.3%. The primary reason for the decrease in utilization for the first quarter of 2024, compared to the both first quarter of 2023 as well as the fourth quarter of 2023, is a reduction in activity across our spot fleet in the semi-refrigerated segment. The utilization for this segment decreased to 85.2% for the first quarter of 2024 compared to 95.6% for the first quarter of 2023. The primary driver for the decrease in utilization was a reduction in LPG demand across all vessel sizes and a correction downward in the 12-month assessment for the fourth quarter of 2023 in the ethylene segment.
During the first quarter of 2024 we experienced continued robust demand for ethane shipping from the
In the first quarter of 2024 we had approximately 31 vessels engaged under time charters, 16 vessels on spot voyage charters and contracts of affreightment ("CoA") and nine vessels were operated in the independently managed
We own a 50% share in an ethylene export marine terminal at Morgan’s
We, together with Enterprise Products Partners L.P, our joint venture partner, have agreed to invest in the extension of the
The total capital contributions required from us to the Export Terminal Joint Venture for the
Investment in an
On
_______________
2 TCE is not calculated in accordance with
Return of Capital Policy
The Company’s current Return of Capital policy, which is subject to operating needs and other circumstances, is based on paying out quarterly cash dividends of
As part of the Return of Capital policy, we expect to repurchase the Company’s common stock (the “Share Repurchases”) and any such Share Repurchases will be made via open market transactions, privately negotiated transactions or any other method permitted under
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 market conditions, legal requirements, stock price, and other factors.
Unaudited Results of Operations for the Three months ended
` | Three months ended | Three months ended | Percentage change | ||||||
(in thousands, except Percentage change) | |||||||||
Operating revenues | $ | 116,610 | $ | 121,020 | 3.8 | % | |||
Operating revenues – | 12,192 | 13,135 | 7.7 | % | |||||
Operating revenues – | 7,200 | — | (100.0 | )% | |||||
Total operating revenue | 136,002 | 134,155 | (1.4 | )% | |||||
Brokerage commission | 1,694 | 1,626 | (4.0 | )% | |||||
Voyage expenses | 17,229 | 14,183 | (17.7 | )% | |||||
Voyage expenses – | 5,028 | — | (100.0 | )% | |||||
Vessel operating expenses | 41,672 | 42,118 | 1.1 | % | |||||
Depreciation and amortization | 31,831 | 33,441 | 5.1 | % | |||||
General and administrative costs | 6,755 | 6,480 | (4.1 | )% | |||||
Other income | (96 | ) | — | 100.0 | % | ||||
Total operating expenses | 104,113 | 97,848 | (6.0 | )% | |||||
Operating Income | 31,889 | 36,307 | 13.9 | % | |||||
Unrealized loss on non-designated derivative instruments | (4,251 | ) | (447 | ) | (89.5 | )% | |||
Write off of deferred financing costs | (171 | ) | — | (100.0 | )% | ||||
Interest expense | (13,338 | ) | (15,737 | ) | 18.0 | % | |||
Interest income | 583 | 1,612 | 176.5 | % | |||||
Income before taxes and share of result of equity method investments | 14,712 | 21,735 | 47.7 | % | |||||
Income taxes | (1,164 | ) | (1,206 | ) | 3.6 | % | |||
Share of result of equity method investments | 5,302 | 4,390 | (17.2 | )% | |||||
Net Income | 18,850 | 24,919 | 32.2 | % | |||||
Net income attributable to non-controlling interest | (64 | ) | (2,346 | ) | 3565.6 | % | |||
Net Income attributable to stockholders of | $ | 18,786 | $ | 22,573 | 20.2 | % |
Operating Revenues. Operating revenues, net of address commissions, was
- an increase of approximately
$11 .0 million attributable to an increase in average monthly time charter equivalent rates, which increased to an average of approximately$28,339 per vessel per day ($861,990 per vessel per calendar month) for the three months endedMarch 31, 2024 , compared to an average of approximately$25,620 per vessel per day ($779,283 per vessel per calendar month) for the three months endedMarch 31, 2023 ; - a decrease of approximately
$8 .3 million attributable to a decrease in fleet utilization, which declined to 89.3% for the three months endedMarch 31, 2024 , compared to 96.3% for the three months endedMarch 31, 2023 ; - an increase of approximately
$4 .7 million or 4.7%, attributable to a 190 day increase in vessel available days for the three months endedMarch 31, 2024 , compared to the three months endedMarch 31, 2023 . This increase was in part a result of five handysize vessels acquired by the Navigator Greater Bay Joint Venture being fully operational during the three months endedMarch 31, 2024 , compared to the three months endedMarch 31, 2023 , in which three vessels were acquired. - a decrease of approximately
$3 .0 million primarily attributable to a decrease in pass through voyage costs for the three months endedMarch 31, 2024 , compared to the three months endedMarch 31, 2023 .
The following table presents selected operating data for the three months ended
Three months ended | Three months ended | |||||
* Fleet Data: | ||||||
Weighted average number of vessels | 45.0 | 47.0 | ||||
Ownership days | 4,048 | 4,277 | ||||
Available days | 4,030 | 4,220 | ||||
Earning days | 3,879 | 3,770 | ||||
Fleet utilization | 96.3 | % | 89.3 | % | ||
** Average daily Time Charter Equivalent | $ | 25,620 | $ | 28,339 | ||
* Fleet Data - Our nine owned smaller vessels in the independently managed
** Non-GAAP Financial Measure—Time charter equivalent: Time charter equivalent (“TCE”) is a measure of the average daily revenue performance of a vessel. TCE is not calculated in accordance with
Reconciliation of Operating Revenues to TCE
The following table represents a reconciliation of operating revenues to TCE. Operating revenues are the most directly comparable financial measure calculated in accordance with
Three months ended | Three months ended | |||||
(in thousands, except earning days and average daily time charter equivalent rate) | ||||||
Fleet Data: | ||||||
*** Operating revenue | $ | 116,610 | $ | 121,020 | ||
*** Voyage expenses | 17,229 | 14,183 | ||||
Operating revenue less voyage expenses | 99,381 | 106,837 | ||||
Earning days | 3,879 | 3,770 | ||||
Average daily time charter equivalent rate | $ | 25,620 | $ | 28,339 | ||
***Operating revenues and voyage expenses excluding collaborative arrangements and our nine owned vessels in the independently managed
Operating Revenues –
Operating Revenues – Luna Pool Collaborative Arrangements.
Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.5% of operating revenues, decreased by
Voyage Expenses. Voyage expenses decreased by
Voyage Expenses – Luna Pool Collaborative Arrangements. Voyage expenses –
Vessel Operating Expenses. Vessel operating expenses increased by
Depreciation and Amortization. Depreciation and amortization increased by
General and Administrative Costs. General and administrative costs decreased by
Non-Operating Results
Unrealized Gains / (Losses) on Non-Designated Derivative Instruments. The unrealized loss of
Interest Expense. Interest expense increased by
Income Taxes. Income taxes relate to taxes on our subsidiaries and businesses incorporated around the world including those incorporated in
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
Non-Controlling Interest. The Company entered into a sale and leaseback arrangement in
Navigator Greater Bay Joint Venture
In
Reconciliation of Non-GAAP Financial Measures
The following table shows a reconciliation of net income to EBITDA and Adjusted EBITDA for the three months ended
Three months ended | Three months ended | |||||
(in thousands) | ||||||
Net income | $ | 18,850 | $ | 24,919 | ||
Net interest expense | 12,755 | 14,125 | ||||
Income taxes | 1,164 | 1,206 | ||||
Depreciation and amortization | 31,831 | 33,441 | ||||
EBITDA1 | $ | 64,600 | $ | 73,691 | ||
Unrealized loss on non-designated derivative instruments | 4,251 | 447 | ||||
Write off of deferred financing costs | 171 | — | ||||
Adjusted EBITDA1 | $ | 69,022 | $ | 74,138 | ||
1 EBITDA and Adjusted EBITDA are not measurements prepared in accordance with |
Liquidity and Capital Resources
Liquidity and Cash Needs
Our primary sources of funds are cash and cash equivalents, cash from operations, undrawn bank borrowings and proceeds from bond issuances. As of
The Company repaid
Our secured term loan facilities and revolving credit facilities require that the borrowers have liquidity of no less than (i)
Our primary uses of funds are drydocking and other vessel maintenance expenditures, voyage expenses, vessel operating expenses, general and administrative costs, insurance costs, expenditures incurred in connection with ensuring that our vessels comply with international and regulatory standards, financing expenses, quarterly repayment of bank loans and the
As of
We believe, given our current cash balances, that our financial resources, including the cash expected to be generated within the year, will be sufficient to meet our liquidity and working capital needs for at least the next twelve months, taking into account our existing capital commitments and debt service requirements.
Capital Expenditures
Liquefied gas transportation by sea is a capital-intensive business, requiring significant investment to maintain an efficient fleet and to stay in regulatory compliance.
We currently have no newbuildings on order. However, we may place newbuilding orders or acquire additional vessels as part of our growth strategy. We may invest further in terminal infrastructure, such as the expansion of our existing
Cash Flows
The following table summarizes our cash, cash equivalents and restricted cash provided by/(used in) operating, investing and financing activities for the three months ended
Three months ended | Three months ended | |||||
(in thousands) | ||||||
Net cash provided by operating activities | $ | 39,257 | $ | 49,122 | ||
Net cash provided by/(used in) investing activities | (133,144 | ) | (620 | ) | ||
Net cash (used in)/provided by financing activities | 130,908 | (33,624 | ) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 648 | (880 | ) | |||
Net increase in cash, cash equivalents and restricted cash | $ | 37,669 | $ | 13,998 | ||
Operating Cash Flows. Net cash provided by operating activities for the three months ended
Net cash flow from operating activities principally depends upon charter rates attainable, fleet utilization, fluctuations in working capital balances, repairs and maintenance activity, amount and duration of drydocks and changes in foreign currency rates.
We are required to drydock each vessel once every five years until it reaches 15 years of age, after which we drydock vessels approximately every two and a half years. Drydocking each vessel, including travelling to and from the drydock, can take approximately 30 days in total being approximately 5-10 days of voyage time to and from the shipyard and approximately 15-20 days of actual drydocking time. Ten of our vessels completed their respective drydockings during the three months ended
We estimate the current cost of a five-year drydocking for one of our vessels is approximately
Investing Cash Flows. Net cash used in investing activities was
Net cash used in investing activities was
Financing Cash Flows. Net cash used in financing activities was
Net cash provided by financing activities was
Terminal Facility
General. In
Term and Facility Limits. The Terminal Facility is now converted into a term loan with a final maturity of
Interest. The Terminal Facility is subject to quarterly repayments of principal and interest. Interest is payable at a rate of Compounded SOFR ("Comp SOFR") plus 275 to 300 basis points over the remaining term of the facility. We have entered into floating to fixed interest rate swap agreements for approximately 80% of the amounts drawn under the Terminal Facility. The Comp SOFR element of the interest rate payable by the Marine Terminal Borrower under these interest rate swap agreements is 0.369% and 0.3615% per annum.
Financial Covenants. Under the Terminal Facility, the Marine Terminal Borrower must maintain a minimum debt service coverage ratio (as defined in the Terminal Facility) for the prior four calendar fiscal quarters (or shorter period of time if data for the prior four fiscal quarters is not available) of no less than 1.10 to 1.00.
Restrictive Covenants. The Marine Terminal Borrower can only pay dividends if the Marine Terminal Borrower satisfies certain customary conditions, including maintaining a debt service coverage ratio for the immediately preceding four consecutive fiscal quarters and the projected immediately succeeding four consecutive fiscal quarters of not less than 1.20 to 1.00 and where no default or event of default has occurred or is continuing. The Terminal Facility also limits the Marine Terminal Borrower from, among other things, incurring further indebtedness or entering into mergers and divestitures. The Terminal Facility also contains general covenants that require the Marine Terminal Borrower to vote its interest in the Export Terminal Joint Venture to cause the Export Terminal Joint Venture to maintain adequate insurance coverage and maintain its property (but only to the extent the Marine Terminal Borrower has the power under the organizational documents of the Export Terminal Joint Venture to cause such actions).
Secured Term Loan Facilities and Revolving Credit Facilities
General.
The table below summarizes our secured term loan and revolving credit facilities as of
Facility agreement | Original facility amount | Principal amount outstanding | Interest rate | Facility maturity date | ||||
(in millions) | ||||||||
107.0 | 61.3 | Term SOFR + 266 BPS | ||||||
210.0 | 158.2 | Comp SOFR + 276 BPS | ||||||
69.1 | 39.7 | Term SOFR + 201 BPS | ||||||
67.0 | 40.8 | Fixed 378 BPS | ||||||
DB Credit Facility A | 57.7 | 15.6 | Comp SOFR + 247 BPS | |||||
Santander Credit Facility A | 81.0 | 22.4 | Comp SOFR + 247 BPS | |||||
DB Credit Facility B | 60.9 | 24.1 | Comp SOFR + 247 BPS | |||||
Santander Credit Facility B | 55.8 | 23.3 | Comp SOFR + 247 BPS | |||||
111.8 | 69.2 | Term SOFR + 209 BPS | ||||||
Greater Bay JV Secured Term Loan | 151.3 | 139.0 | Term SOFR + 220 BPS | |||||
200.0 | 166.7 | Comp SOFR + 210 BPS | ||||||
Total | $ | 1,171.6 | $ | 760.3 | ||||
_______________
3 The
The
This loan facility is secured by first priority mortgages on a total of ten of our owned vessels.
Financial Covenants. All of the secured term loan facilities and revolving credit facilities contain financial covenants requiring the borrowers, among other things, to ensure that:
- the borrowers have liquidity (including undrawn available lines of credit with a maturity exceeding 12 months) of no less than (i)
$35.0 million or$50.0 million , or (ii) 5% of Net Debt or total debt, as applicable, whichever is greater; and - the borrower must maintain a minimum ratio of shareholder equity or value adjusted shareholder equity to total assets or value adjusted total assets of 30%.
Restrictive Covenants. The secured facilities provide that the borrowers may not declare or pay dividends to shareholders out of operating revenues generated by the vessels securing the indebtedness if an event of default has occurred and is continuing. The secured term loan facilities and revolving credit facilities also limit the borrowers from, among other things, incurring further indebtedness or entering into mergers and divestitures. The secured facilities also contain general covenants that require the borrowers to maintain adequate insurance coverage and to maintain their vessels. In addition, the secured term loan facilities include customary events of default, including those relating to a failure to pay principal or interest, a breach of covenant, representation and warranty, a cross-default to other indebtedness and non-compliance with security documents.
Other than as stated, our compliance with the financial covenants listed above is measured as of the end of each fiscal quarter. As of
The borrowers are also required to deliver semi-annual compliance certificates, which include valuations of the vessels securing the applicable facility from an independent ship broker. Upon delivery of the valuation, if the market value of the collateral vessels is less than 125% to 135% of the outstanding indebtedness under the applicable facilities, the borrowers must either provide additional collateral or repay any amount in excess of 125% to 135% of the market value of the collateral vessels, as applicable. This covenant is measured semi-annually on
2020 Senior Unsecured Bonds
General. On
Interest. Interest on the 2020 Bonds is payable at a fixed rate of 8.0% per annum, calculated on a 360-day year basis. Interest is payable semi- annually in arrears on
Maturity. The 2020 Bonds mature in full on
Optional Redemption. We may redeem the 2020 Bonds, in whole or in part at any time. Any 2020 Bonds redeemed; up until
Additionally, upon the occurrence of a “Change of Control Event” (as defined in the bond agreement for the 2020 Bonds, (the “2020 Bond Agreement”)), the holders of 2020 Bonds have the option to require us to repay such holders’ outstanding principal amount of 2020 Bonds at 101% of par, plus accrued interest.
Financial Covenants. The 2020 Bond Agreement contains financial covenants requiring us, among other things, to ensure that:
- we and our subsidiaries maintain a minimum liquidity of no less than
$35.0 million ; and - we and our subsidiaries maintain an Equity Ratio (as defined in the 2020 Bond Agreement) of at least 30%.
Our compliance with the covenants listed above is measured as of the end of each fiscal quarter. As of
Restrictive Covenants. The 2020 Bonds provide that we may declare or pay dividends to shareholders provided the Company maintains a minimum liquidity of
In
Lessor VIE Debt
In
Upon the occurrence of a “Change of Control Event” (as defined in the sale and leaseback agreement), the lessor has the option to require us to repurchase Navigator Aurora at 103% of the outstanding lease amount, plus costs and expenses directly attributable to the termination of the lessor’s financing arrangements, such as break costs for swap arrangements.
Navigator Aurora Facility In
Critical Accounting Estimates
We prepare our consolidated financial statements in accordance with
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risk from changes in interest rates and foreign currency fluctuations, as well as inflation. We use interest rate swaps to manage some of our interest rate risks. We do not use interest rate swaps or any other financial instruments for trading or speculative purposes.
Interest Rate Risk
We are exposed to the impact of interest rate changes through borrowings that require us to make interest payments based on SOFR. Our wholly-owned subsidiaries and certain of our vessel-owning subsidiaries are party to secured term loan and revolving credit facilities that bear interest at rates of SOFR plus between 185 and 250 basis points. At
We use interest rate swaps to reduce our exposure to market risk from changes in interest rates. The principal objective of these contracts is to minimize the risks and costs associated with our floating-rate debt. The Company is exposed to the risk of credit loss in the event of non-performance by the counterparty to the interest rate swap agreements.
Foreign Currency Exchange Rate Risk
Our primary economic environment is the international shipping market. This market utilizes the U.S. Dollar as its functional currency. Consequently, most of our revenues are in
Inflation
We are exposed to increases in operating costs arising from various vessel operations, including crewing, vessel repair costs, drydocking costs, insurance and fuel prices as well as from general inflation and are subject to fluctuations as a result of market forces. Increases in bunker costs could have a material effect on our future operations if the number and duration of our voyage charters or Contract of Affreightment ("COA") increases. In the case of the 47 vessels owned and commercially managed by us as of
Credit Risk
We may be exposed to credit risks in relation to vessel employment and at times we may have multiple vessels employed by one charterer. We consider and evaluate the concentration of credit risk continuously and perform ongoing evaluations of these charterers for credit risk. At
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Condensed Consolidated Statements of Operations (Unaudited) | ||||||
Three months ended | Three months ended | |||||
(in thousands except share and per share data) | ||||||
Revenues | ||||||
Operating revenues | $ | 116,610 | $ | 121,020 | ||
Operating revenues – | 12,192 | 13,135 | ||||
Operating revenues – | 7,200 | — | ||||
Total operating revenue | 136,002 | 134,155 | ||||
Expenses | ||||||
Brokerage commission | 1,694 | 1,626 | ||||
Voyage expenses | 17,229 | 14,183 | ||||
Voyage expenses – | 5,028 | — | ||||
Vessel operating expenses | 41,672 | 42,118 | ||||
Depreciation and amortization | 31,831 | 33,441 | ||||
General and administrative costs | 6,755 | 6,480 | ||||
Other income | (96 | ) | — | |||
Total operating expenses | 104,113 | 97,848 | ||||
Operating Income | 31,889 | 36,307 | ||||
Unrealized loss on non-designated derivative instruments | (4,251 | ) | (447 | ) | ||
Write off of deferred financing costs | (171 | ) | — | |||
Interest expense | (13,338 | ) | (15,737 | ) | ||
Interest income | 583 | 1,612 | ||||
Income before taxes and share of result of equity method investments | 14,712 | 21,735 | ||||
Income taxes | (1,164 | ) | (1,206 | ) | ||
Share of result of equity method investments | 5,302 | 4,390 | ||||
Net Income | 18,850 | 24,919 | ||||
Net income attributable to non-controlling interest | (64 | ) | (2,346 | ) | ||
Net Income attributable to stockholders of | $ | 18,786 | $ | 22,573 | ||
Earnings per share attributable to stockholders of | ||||||
Basic: | $ | 0.25 | $ | 0.31 | ||
Diluted: | $ | 0.25 | $ | 0.31 | ||
Weighted average number of shares outstanding in the period: | ||||||
Basic: | 75,955,162 | 73,209,771 | ||||
Diluted: | 76,319,753 | 73,757,164 | ||||
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | ||||||
Three months ended | Three months ended | |||||
(in thousands) | ||||||
Net income | $ | 18,850 | $ | 24,919 | ||
Other comprehensive income: | ||||||
Foreign currency translation income | 165 | 34 | ||||
Total comprehensive income | 19,015 | 24,953 | ||||
Total comprehensive income attributable to: | ||||||
Stockholders of | 18,951 | 22,607 | ||||
Non-controlling interest | 64 | 2,346 | ||||
Total comprehensive income | $ | 19,015 | $ | 24,953 | ||
Condensed Consolidated Balance Sheet (Unaudited) | ||||||
As at | As at | |||||
(in thousands, except share data) | ||||||
Assets | ||||||
Current Assets | ||||||
Cash, cash equivalents and restricted cash | $ | 158,242 | $ | 172,240 | ||
Accounts receivable, net of allowance for credit losses | 34,653 | 41,024 | ||||
Accrued income | 2,437 | 6,830 | ||||
Prepaid expenses and other current assets | 17,068 | 20,855 | ||||
Bunkers and lubricant oils | 9,044 | 10,574 | ||||
Insurance receivable | 526 | 1,013 | ||||
Amounts due from related parties | 33,402 | 20,311 | ||||
Total current assets | 255,372 | 272,847 | ||||
Non-current Assets | ||||||
Vessels, net | 1,754,382 | 1,726,119 | ||||
Property, plant and equipment, net | 142 | 156 | ||||
Intangible assets, net of accumulated amortization | 332 | 299 | ||||
Equity method investments | 174,910 | 180,932 | ||||
Derivative assets | 14,674 | 14,227 | ||||
Right-of-use asset for operating leases | 2,873 | 2,584 | ||||
Total non-current assets | 1,947,313 | 1,924,317 | ||||
Total Assets | $ | 2,202,685 | $ | 2,197,164 | ||
Liabilities and Stockholders’ Equity | ||||||
Current Liabilities | ||||||
Current portion of secured term loan facilities, net of deferred financing costs | $ | 120,327 | $ | 171,315 | ||
Current portion of operating lease liabilities | 914 | 1,151 | ||||
Accounts payable | 11,643 | 10,556 | ||||
Accrued expenses and other liabilities | 20,847 | 25,369 | ||||
Accrued interest | 5,488 | 3,322 | ||||
Deferred income | 25,617 | 25,979 | ||||
Amounts due to related parties | 606 | 518 | ||||
Total current liabilities | 185,442 | 238,210 | ||||
Non-current Liabilities | ||||||
Secured term loan facilities and revolving credit facilities, net of current portion and deferred financing costs | 641,975 | 560,638 | ||||
Senior unsecured bond, net of deferred financing costs | 90,336 | 90,435 | ||||
Operating lease liabilities, net of current portion | 3,500 | 3,160 | ||||
Deferred tax liabilities | 7,016 | 7,707 | ||||
Amounts due to related parties | 41,342 | 39,699 | ||||
Total non-current liabilities | 784,169 | 701,639 | ||||
Total Liabilities | 969,611 | 939,849 | ||||
Commitments and Contingencies - Note 11 | ||||||
Stockholders’ Equity | ||||||
Common stock—$0.01 par value per share; 400,000,000 shares authorized; 73,209,771 shares issued and outstanding ( | 733 | 733 | ||||
Additional paid-in capital | 799,472 | 799,561 | ||||
Accumulated other comprehensive loss | (152 | ) | (118 | ) | ||
Retained earnings | 390,221 | 411,993 | ||||
1,190,274 | 1,212,169 | |||||
Non-controlling interest | 42,800 | 45,146 | ||||
Total equity | 1,233,074 | 1,257,315 | ||||
Total Liabilities and Stockholders’ Equity | $ | 2,202,685 | $ | 2,197,164 | ||
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) |
For the three months ended
(in thousands, except share data) | ||||||||||||||||||
Number of shares | Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Non-Controlling Interest | Total | ||||||||||||
73,208,586 | $ | 733 | $ | 799,472 | $ | (152 | ) | $ | 390,221 | $ | 42,800 | $ | 1,233,074 | |||||
Restricted shares issued | 1,185 | — | — | — | — | — | — | |||||||||||
Net income | — | — | — | — | 22,573 | 2,346 | 24,919 | |||||||||||
Foreign currency translation | — | — | — | 34 | — | — | 34 | |||||||||||
Dividend declared | — | — | — | — | — | — | — | |||||||||||
Repurchase of common stock | (52,630 | ) | — | — | — | (801 | ) | — | (801 | ) | ||||||||
Share-based compensation plan | — | — | 89 | — | — | — | 89 | |||||||||||
73,157,141 | $ | 733 | $ | 799,561 | $ | (118 | ) | $ | 411,993 | $ | 45,146 | $ | 1,257,315 | |||||
For the three months ended
(in thousands, except share data) | ||||||||||||||||||
Number of shares | Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Non-Controlling Interest | Total | ||||||||||||
76,804,474 | $ | 769 | $ | 798,188 | $ | (463 | ) | $ | 364,000 | $ | 10,918 | $ | 1,173,412 | |||||
Restricted shares issued | 47,829 | — | — | — | — | — | — | |||||||||||
Net income | — | — | — | — | 18,786 | 64 | 18,850 | |||||||||||
Foreign currency translation | — | — | — | 165 | — | — | 165 | |||||||||||
Investment by non-controlling interest | — | — | — | — | 20,353 | 20,353 | ||||||||||||
Repurchase of common stock | (2,162,484 | ) | (22 | ) | — | — | (28,086 | ) | — | (28,108 | ) | |||||||
Share-based compensation plan | — | — | 180 | — | — | — | 180 | |||||||||||
74,689,819 | $ | 747 | $ | 798,368 | $ | (298 | ) | $ | 354,700 | $ | 31,335 | $ | 1,184,852 | |||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||||
Three months ended | Three months ended | |||||
Cash flows from operating activities | ||||||
Net Income | $ | 18,850 | $ | 24,919 | ||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities | ||||||
Unrealized loss on non-designated derivative instruments | 4,251 | 447 | ||||
Depreciation and amortization | 31,831 | 33,440 | ||||
Payment of drydocking costs | (2,908 | ) | (4,565 | ) | ||
Share-based compensation expense | 180 | 89 | ||||
Amortization of deferred financing costs | 922 | 841 | ||||
Share of results of equity method investments | (5,302 | ) | (4,390 | ) | ||
Deferred taxes | — | 692 | ||||
Other unrealized foreign exchange loss/(gain) | (23 | ) | 306 | |||
Changes in operating assets and liabilities | ||||||
Accounts receivable | (3,667 | ) | (6,372 | ) | ||
Insurance claims receivables | 322 | (1,499 | ) | |||
Bunkers and lubricant oils | (1,915 | ) | (1,531 | ) | ||
Accrued income and prepaid expenses and other current assets | 4,599 | (7,889 | ) | |||
Accounts payable, accrued interest, accrued expenses and other liabilities | (3,913 | ) | 1,542 | |||
Amounts due to/(from) related parties | (3,970 | ) | 13,092 | |||
Net cash provided by operating activities | 39,257 | 49,122 | ||||
Cash flows from investing activities | ||||||
Additions to vessels and equipment | (142,883 | ) | — | |||
Contributions to equity method investments | — | (8,000 | ) | |||
Distributions from equity method investments | 8,446 | 6,368 | ||||
Purchase of other property, plant and equipment and intangibles | 28 | — | ||||
Insurance recoveries | 1,265 | 1,012 | ||||
Net cash used in investing activities | (133,144 | ) | (620 | ) | ||
Cash flows from financing activities | ||||||
Proceeds from secured term loan facilities and revolving credit facilities | 291,813 | — | ||||
Direct financing cost of secured term loan and revolving credit facilities | (3,151 | ) | — | |||
Repurchase of share capital | (28,108 | ) | (801 | ) | ||
Repayments under operating lease obligations | — | (103 | ) | |||
Repayment of secured term loan facilities and revolving credit facilities | (148,335 | ) | (31,076 | ) | ||
Repayment of refinancing of vessel to related parties | (1,664 | ) | (1,644 | ) | ||
Cash received from non-controlling interest | 20,353 | — | ||||
Net cash (used in)/provided by financing activities | 130,908 | (33,624 | ) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 648 | (880 | ) | |||
Net increase in cash, cash equivalents and restricted cash | 37,669 | 13,998 | ||||
Cash, cash equivalents and restricted cash at beginning of year | 153,194 | 158,242 | ||||
Cash, cash equivalents and restricted cash at end of year | $ | 190,863 | $ | 172,240 | ||
Supplemental Information | ||||||
Total interest paid during the period, net of amounts capitalized | $ | 14,178 | $ | 17,389 | ||
Total tax paid during the period | $ | 169 | $ | 344 | ||
Notes to the Condensed Consolidated Financial Statements
(Unaudited)
1. General Information and Basis of Presentation
General Information
The Company entered into a joint venture (the “Navigator Greater Bay Joint Venture”) with
The Company owns a 50% share, through a joint venture (the “Export Terminal Joint Venture”), of an ethylene export marine terminal at Morgan’s
Unless the context otherwise requires, all references in the consolidated financial statements to “our”,” we” and “us” refer to the Company.
Basis of Presentation
These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in
The accompanying unaudited condensed consolidated financial statements include the accounts of the Company, its subsidiaries and Variable Interest Entities (“VIE”) for which the Company is a primary beneficiary and are also consolidated (please read Note 14—Variable Interest Entities for additional information). All intercompany accounts and transactions have been eliminated on consolidation.
The results of operations are subject to seasonal and other fluctuations and are therefore not necessarily indicative of results that may otherwise be expected for the entire year.
Management has evaluated the Company’s ability to continue as a going concern and considered the conditions and events that could raise substantial doubt about the Company’s ability to continue as a going concern within 12 months after these financial statements are issued. As part of the assessment, management has considered the following;
- the current financial condition and liquidity sources, including current funds available and forecasted future cash flows;
- any likely effects of global epidemics or other health crises,
- the effects of the conflicts in
Ukraine and theGaza region on the Company’s business, including potential escalations or wider implications on other countries as well as possible effects of trade disruptions. - environmental regulations such as those affecting vessels' Energy Efficiency Existing Ship Index (“EEXI”); and
- the total capital contributions required for the
Terminal Expansion Project (as defined below).
Management has determined that it is appropriate to continue to adopt the going concern basis in preparing the financial statements.
A discussion of the Company’s significant accounting policies can be found in the Company’s consolidated financial statements included in the Company's 2023 Annual Report. There have been no material changes to these policies in the three months ended
Recent Accounting Pronouncements
New accounting standards issued as of
2. Operating revenues
The following table discloses operating revenues by contract type for the three months ended
Three months ended | Three months ended | |||||
(in thousands) | ||||||
Operating revenues: | ||||||
Time charters | $ | 76,392 | $ | 89,089 | ||
Voyage charters | 40,218 | 31,931 | ||||
Voyage charters from | 7,200 | — | ||||
Operating revenues from | 12,192 | 13,135 | ||||
Total operating revenues | $ | 136,002 | $ | 134,155 | ||
As of
(in thousands of | |
Within 1 year | 242,222 |
In the second year | 68,840 |
In the third year | 23,746 |
In the fourth year | 3,267 |
For time charter revenues accounted for under ASC 842, the amount of accrued income on the Company’s unaudited condensed consolidated balance sheet as of
Voyage Charter revenues
Voyage charter revenues, which include revenues from contracts of affreightment, are shown net of address commissions.
As of
The period opening and closing balance of receivables from voyage charters, including contracts of affreightment, was
The amount allocated to costs incurred to fulfill a contract with a charterer, which are costs incurred following the commencement of a contract or charter party but before the loading of the cargo commences, was
Voyage and Time charter revenues from
Revenues from the
3. Vessels
Vessels | Drydocking | Total | |||||||
(in thousands) | |||||||||
Cost | |||||||||
$ | 2,467,396 | $ | 69,938 | $ | 2,537,334 | ||||
Additions | — | 5,125 | 5,125 | ||||||
Write-offs of fully amortized assets | — | (2,209 | ) | (2,209 | ) | ||||
2,467,396 | 72,854 | 2,540,250 | |||||||
Accumulated Depreciation | |||||||||
743,334 | 39,618 | 782,952 | |||||||
Charge for the period | 27,753 | 5,635 | 33,388 | ||||||
Write-offs of fully amortized assets | — | (2,209 | ) | (2,209 | ) | ||||
771,087 | 43,044 | 814,131 | |||||||
Net Book Value | |||||||||
1,724,062 | 30,320 | 1,754,382 | |||||||
$ | 1,696,309 | $ | 29,810 | $ | 1,726,119 | ||||
The cost and net book value of the 36 vessels that were contracted under time charter arrangements (please read Note 2—Operating Revenue for additional information) was
The net book value of vessels that serve as collateral for the Company’s secured term loan and revolving credit facilities (please read Note 5—Secured Term Loan Facilities and Revolving Credit Facilities, for additional information) were
The cost and net book value of vessels that are included in the table above (please read Note 14—Variable Interest Entities for additional information) were
4. Equity Method Investments
Interests in investments are accounted for using the equity method and are recognized initially at cost and subsequently include the Company’s share of the profit or loss and other comprehensive income of equity-accounted investees.
As of
(in thousands) | ||||||
50 | % | 50 | % | |||
33.3 | % | 33.3 | % | |||
Dan Unity CO2 A/S | 50 | % | 50 | % | ||
50 | % | 50 | % | |||
Azane Fuel Solutions AS ("Azane") | 14.5 | % | 14.5 | % | ||
50 | % | 50 | % | |||
Share of results from equity method investments, excluding amortized costs, recognized in the share of results of equity method investments for the three months ended
In
Cumulative interest and associated costs capitalized on the investment in the Export Terminal Joint Venture are being amortized over the estimated useful life of the
Dan Unity CO2 A/S ("Dan Unity")
In
We account for our investment using the equity method and we exercise joint control over the operating and financial policies of Dan Unity CO2 A/S. As of
In
Azane Fuel Solutions AS ("Azane")
Azane, a joint venture between ECONNECT Energy AS and Amon Maritime AS, both of
Subject to customary conditions, Azane intends to build the world’s first ammonia bunkering network, with Yara Clean Ammonia ("Yara") already pre-ordering 15 units from Azane. The first green ammonia bunkering units are scheduled to be delivered in 2025 enabling a low-carbon fuel offering to shipowners. The investment made by Yara and Navigator is expected to enable Azane to begin construction of its first bunkering unit for ammonia supply in
Bluestreak is a 50% joint venture between the Company and Bumi Armada, one of the world’s largest floating infrastructure operators. The joint venture aims to provide an end-to-end solution for carbon emitters to capture, transport, sequester and store their carbon dioxide emissions in line initially with the United Kingdom’s Industrial Decarbonisation Strategy. It is anticipated that the Bluestreak joint venture will design and implement a value chain of shuttle tankers delivering to a floating carbon storage and injection unit. The complete value chain is expected to safely and reliably transport and provide buffer storage of liquid carbon dioxide. The Bluestreak joint venture is subject to the execution of definitive documentation, approvals by the respective boards of directors of the Company and Bumi Armada, applicable regularly approvals and other customary closing conditions. We disclose our proportionate share of profits and losses from equity method unconsolidated affiliates in the statement of operations and adjust the carrying amount of our equity method investments on the balance sheet accordingly.
The table below represents movement in the Company’s equity method investments, for the year ended
Year ended | Three months ended | |||||
(in thousands) | ||||||
Equity method investments at | $ | 148,534 | $ | 174,910 | ||
Share of results | 20,607 | 4,390 | ||||
Distributions received from equity method investments | (30,790 | ) | (6,368 | ) | ||
Equity contributions to joint venture entity | 35,000 | 8,000 | ||||
Equity method investments – additions | 1,559 | — | ||||
Total equity method investments at | $ | 174,910 | $ | 180,932 | ||
5. Secured Term Loan Facilities and Revolving Credit Facilities
The following table shows the breakdown of all secured term loan facilities and total deferred financing costs split between current and non-current liabilities at
(in thousands) | ||||||
Current Liability | ||||||
Current portion of secured term loan facilities | $ | 123,024 | $ | 173,900 | ||
Less: current portion of deferred financing costs | (2,697 | ) | (2,585 | ) | ||
Current portion of secured term loan facilities, net of deferred financing costs | $ | 120,327 | $ | 171,315 | ||
Non-Current Liability | ||||||
Secured term loan facilities and revolving credit facilities net of current portion, excluding amount due to related parties | $ | 646,131 | $ | 564,182 | ||
Amount due to related parties* | 41,342 | 39,699 | ||||
Less: non-current portion of deferred financing costs | (4,156 | ) | (3,544 | ) | ||
Non-current secured term loan facilities and revolving credit facilities, net of current portion and non-current deferred financing costs | $ | 683,317 | $ | 600,337 | ||
*Amount due to related parties relates to the Navigator Aurora Facility held within a lessor entity (for which legal ownership resides with a financial institution) that we are required to consolidate as a variable interest entity under
On
The
6. Senior Unsecured Bonds
In
The 2020 Bonds bear interest at a rate of 8.0% per annum and mature on
The following table shows the breakdown of our senior unsecured bonds and total deferred financing costs as of
(in thousands) | ||||||
Senior Unsecured Bonds | ||||||
Total bonds cost | $ | 100,000 | $ | 100,000 | ||
Less | (9,000 | ) | (9,000 | ) | ||
Less deferred financing costs | (664 | ) | (565 | ) | ||
Total bonds, net of deferred financing costs | $ | 90,336 | $ | 90,435 | ||
In
7. Derivative Instruments Accounted for at Fair Value
The following table includes the estimated fair value of those assets and liabilities that are measured at fair value on a recurring basis as of
(in thousands) | |||||||
Fair Value Hierarchy Level | Fair Value Hierarchy Level | Fair Value Asset | Fair Value Asset | ||||
Interest rate swap agreements | Level 2 | $ | 14,674 | $ | 14,227 | ||
The Company uses derivative instruments in accordance with its overall risk management policy to mitigate the risk of unfavorable fluctuations in foreign exchange and interest rate movements.
The Company held no derivatives designated as hedges as of
Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. The fair value accounting standard establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2—Include other inputs that are directly or indirectly observable in the marketplace.
Level 3—Unobservable inputs which are supported by little or no market activity.
Interest Rate risk
The Company also has a number of existing vessel loan facilities with associated fixed interest rate swaps. As of
These fixed interest rate swaps are entered into with the financial institutions which were lenders on the loan facilities. The interest rate payable by the Company under these interest rate swap agreements is between 0.3615% and 2.137%. The interest rate receivable by the Company under these interest rate swap agreements is 3-month SOFR, calculated on a 360-day year basis, which resets every three months.
All interest rate swaps above are remeasured to fair value at each reporting date and have been categorized as level two on the fair value measurement hierarchy. The remeasurement to fair value has no impact on the cash flows at the reporting date. There is no requirement for cash collateral to be placed with the swap providers under these swap agreements and there is no effect on restricted cash as of
Foreign Currency Exchange Rate risk
All foreign currency-denominated monetary assets and liabilities are revalued and are reported in the Company’s functional currency based on the prevailing exchange rate at the end of the period. These foreign currency transactions fluctuate based on the strength of the
Credit risk
The Company is exposed to credit losses in the event of non-performance by the counterparties to its interest rate swap agreements. As of
The fair value of our interest rate swap agreements is the estimated amount that we would pay / receive to sell or transfer the swap at the reporting date, taking into account current interest rates and the current credit worthiness of the swap counterparties. The estimated amount is the present value of future cash flows, adjusted for credit risk. The Company transacts all of these derivative instruments through investment-grade rated financial institutions at the time of the transaction. The amount recorded as a derivative asset or liability could vary by a material amount in the near term if credit markets are volatile or if credit risk were to change significantly.
The fair value of our interest rate swap agreements at the end of each period is most significantly affected by the interest rate implied by the benchmark interest yield curve, including its relative steepness. Interest rates and foreign exchange rates have experienced significant volatility in recent years in both the short and long term. While the fair value of our swap agreements is typically more sensitive to changes in short-term rates, significant changes in long-term benchmark interest, foreign exchange rates and the credit risk of the counterparties or the Company also materially impact the fair values of our swap agreements.
8. Fair Value of Financial Instruments Not Accounted for at Fair Value
The principal financial assets of the Company as of
The carrying values of cash, cash equivalents and restricted cash, accounts receivable, accounts payable, accrued expenses and other liabilities are reasonable estimates of their fair value due to the short-term nature or liquidity of these financial instruments.
Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. The fair value accounting standard establishes a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2—Include other inputs that are directly or indirectly observable in the marketplace.
Level 3—Unobservable inputs which are supported by little or no market activity.
The 2020 Bonds are classified as a level two liability and the fair values have been calculated based on the most recent trades of the bond on the Oslo Børs prior to
The fair value of secured term loan facilities and revolving credit facilities is estimated to approximate the carrying value in the balance sheet since they bear a variable interest rate, which is reset quarterly. This has been categorized at level two on the fair value measurement hierarchy as of
The following table includes the estimated fair value and carrying value of those assets and liabilities where the fair value does not approximate to carrying value. The table excludes cash, cash equivalents, restricted cash, accounts receivable, accounts payable, accrued expenses and other liabilities because the fair value approximates carrying value and, for accounts receivable and payable, are due in one year or less.
(in thousands) | ||||||||||||||||
Financial Asset/Liability | Fair Value Hierarchy Level | Carrying Amount (Liability) | Fair Value (Liability) | Fair Value Hierarchy Level | Carrying Amount (Liability) | Fair Value (Liability) | ||||||||||
2020 Bonds (Note 6) | Level 2 | (91,000 | ) | (91,455 | ) | Level 2 | $ | (91,000 | ) | $ | (91,910 | ) | ||||
Secured term loan facilities and revolving credit facilities (Note 5) | Level 2 | $ | 810,497 | $ | 810,497 | Level 2 | $ | (777,781 | ) | $ | (777,781 | ) | ||||
9. Earnings per share
Basic earnings per share is calculated by dividing the net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by adjusting the weighted average number of common shares used for calculating basic earnings per share for the effects of all potentially dilutive shares. The following table shows the calculation of both the basic and diluted number of weighted average outstanding shares for the three months ended
Three months ended | Three months ended | |||||
Net Income attributable to stockholders of | $ | 18,786 | $ | 22,573 | ||
Basic weighted average number of shares: | 75,955,162 | 73,209,771 | ||||
Effect of dilutive potential share options: | 364,591 | 547,393 | ||||
Diluted weighted average number of shares | 76,319,753 | 73,757,164 | ||||
10. Share-Based Compensation
Share Awards
On
On
On
On
Restricted share grant activity for the year ended
Number of non-vested restricted shares | Weighted average grant date fair value | Weighted average remaining contractual term (years) | |||||||
Balance as of | 115,693 | $ | 10.16 | 1.04 | |||||
Granted | 47,829 | 12.45 | |||||||
Vested | (78,144 | ) | 10.16 | ||||||
Balance as of | 85,378 | $ | 11.44 | 0.81 | |||||
Vested | (41,944 | ) | 11.92 | ||||||
Balance as of | 43,434 | $ | 11.49 | 0.56 | |||||
We account for forfeitures as they occur. Using the graded straight-line method of expensing the restricted stock grants, the weighted average estimated value of the shares calculated at the date of grant is recognized as compensation cost in the unaudited condensed consolidated statement of operations over the period to the vesting date.
During the three months ended
Share options
Share options issued under the 2013 Plan are exercisable between the third and tenth anniversary of the grant date, after which they lapse. The fair value of any option issued is calculated on the date of the grant based on the Black-Scholes valuation model. Expected volatility is based on the historic volatility of the Company’s stock price and other factors. The expected term of the options granted is anticipated to occur in the range between 4 and 6.5 years. The risk-free rate is the rate adopted from the
The movements in the outstanding share options during the year ended
Options | Number of options outstanding | Weighted average exercise price per share | Aggregate intrinsic value | ||||||
Balance as of | 320,856 | 20.99 | $ | — | |||||
Forfeited during the year | (35,875 | ) | 22.35 | — | |||||
Issuance during the year | 262,412 | 15.45 | 1,180,854 | ||||||
Balance as of | 547,393 | 21.08 | $ | — | |||||
Issuance during the period | — | — | — | ||||||
Balance as of | 547,393 | 18.25 | $ | 1,180,854 | |||||
The weighted-average remaining contractual term of options outstanding and exercisable at
The Company has employee stock purchase plans in place which is a savings-related share scheme where certain employees have the option to buy common stock at a 15% discount to the share price at the grant dates of
11. Commitments and Contingencies
The contractual obligations schedule set forth below summarizes our contractual obligations as of
2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||||
Secured term loan facilities and revolving credit facilities | $ | 96,695 | $ | 292,616 | $ | 107,216 | $ | 67,539 | $ | 89,186 | $ | 84,830 | $ | 738,082 | |||||||
89,348 | — | — | — | — | — | 89,348 | |||||||||||||||
2020 Bonds | — | 100,000 | — | — | — | — | 100,000 | ||||||||||||||
Office operating leases2 | 960 | 1,251 | 1,054 | 1,261 | — | — | 4,526 | ||||||||||||||
Navigator Aurora Facility3 | — | — | — | 39,699 | — | — | 39,699 | ||||||||||||||
Total contractual obligations | $ | 187,003 | $ | 393,867 | $ | 108,270 | $ | 108,499 | $ | 89,186 | $ | 84,830 | $ | 971,655 | |||||||
1 We have committed to invest further in terminal infrastructure, such as expanding our existing
2 The Company occupies office space in
The Company entered into a lease for office space in
The lease term for our representative office in Gdynia,
The Company occupies office space in
The weighted average remaining contractual lease term for the above four office leases on
3 The Navigator Aurora Facility is a loan facility held within a lessor entity (for which legal ownership resides with financial institutions) that we are required to consolidate under
12. Operating Lease Liabilities
The Company’s unaudited condensed consolidated balance sheet includes a right-of-use (“ROU”) asset and a corresponding liability for operating lease contracts where the Company is a lessee. The discount rate used to measure the lease liability presented on the Company’s unaudited condensed consolidated balance sheet is the incremental cost of borrowing since the rate implicit in the lease cannot be determined.
The liabilities described below are for the Company’s offices in
At
Under ASC 842, the ROU asset is a non-monetary asset and is remeasured into the Company’s reporting currency using the exchange rate for the applicable currency as at the adoption date of ASC 842. The operating lease liability is a monetary liability and is remeasured quarterly using current exchange rates, with changes recognized in a manner consistent with other foreign currency-denominated liabilities in general and administrative expenses in the unaudited condensed consolidated statements of comprehensive income.
A maturity analysis of the annual undiscounted cash flows of the Company’s operating lease liabilities as of
(in thousands) | ||||||
One year | $ | 1,027 | $ | 1,283 | ||
Two years | 1,279 | 1,185 | ||||
Three years | 1,066 | 2,058 | ||||
Four years | 1,274 | — | ||||
Total undiscounted operating lease commitments | $ | 4,646 | $ | 4,526 | ||
Less: Discount adjustment | (232 | ) | (215 | ) | ||
Total operating lease liabilities | 4,414 | 4,311 | ||||
Less: current portion | (914 | ) | (1,151 | ) | ||
Operating lease liabilities, non-current portion | $ | 3,500 | $ | 3,160 | ||
13. Cash, Cash Equivalents and Restricted Cash
The following table shows the breakdown of cash, cash equivalents and restricted cash as of
(in thousands) | ||||||
Cash, Cash Equivalents and Restricted Cash | ||||||
Cash and cash equivalents | $ | 149,581 | $ | 163,113 | ||
Cash and cash equivalents held by VIE | 23 | 380 | ||||
Restricted cash | 8,638 | 8,747 | ||||
Total cash, cash equivalents and restricted cash | $ | 158,242 | $ | 172,240 | ||
Amounts included in restricted cash represent cash in blocked deposit accounts that are required to be deposited in accordance with the terms of a number of secured term loans with banking institutions. These funds are not available for daily operational use.
14. Variable Interest Entities
As of
In
As of
The Company has performed an analysis and concluded that the Company exercises power through the exercise of the call options in the lease agreement. The call options, although not an activity of the SPV, if exercised would significantly impact the SPV’s economic performance as the SPV owns no other revenue generating assets. The options transfer to the Company the right to receive benefits as they are agreed at a predetermined price. The SPV is protected from decreases in the value of the vessel, as if the vessel’s market value were to decline, the call option provides the SPV protection up to the point where it would not be economically viable for the Company to exercise the option. In addition, the Company has the power to direct decisions over the activities and care of the vessel which directly impact its value such as for the day-to-day commercial, technical management and operation of the vessel.
We own a 25% and 40% share in equity of
The Company has determined that it has a variable interest in NCPI and NSSPI and is considered to be the primary beneficiary as a result of having a controlling financial interest in the entities and has the power to direct the activities that most significantly impact NCPI’s and NSSPI’s economic performance.
As of
15. Related Party Transactions
The following table summarizes our transactions with related parties for the three months ended
Three months ended | Three months ended | |||||
(in thousands) | ||||||
Net income / (expenses) | ||||||
$ | (17 | ) | $ | (8 | ) | |
(774 | ) | (763 | ) | |||
(32 | ) | (15 | ) | |||
$ | (823 | ) | $ | (786 | ) |
The following table sets out the balances due from related parties as of
(in thousands) | ||||||
$ | 30,804 | $ | 16,189 | |||
2,598 | 4,122 | |||||
$ | 33,402 | $ | 20,311 |
The following table sets out the balances due to related parties as of
(in thousands) | ||||||
$ | 41,912 | $ | 40,217 | |||
Naviera Ultranav Dos Limitada | 36 | — | ||||
$ | 41,948 | $ | 40,217 |
As of
16. Subsequent Events
On
Our Fleet
The following table provides details of our vessels as of
Operating Vessel | Year Built | (cbm) | Employment Status | Current Cargo | Time Charter Expiration Date |
Ethylene/ethane capable semi-refrigerated midsize | |||||
Navigator Aurora | 2016 | 37,300 | Time Charter | Ethane | |
Navigator Eclipse | 2016 | 37,300 | Time Charter | Ethane | |
Navigator Nova | 2017 | 37,300 | Time Charter | Ethane | |
Navigator Prominence | 2017 | 37,300 | Time Charter | Ethane | |
Ethylene/ethane capable semi-refrigerated handysize | |||||
Navigator Pluto* | 2000 | 22,085 | Time Charter | Ethane | |
Navigator Saturn | 2000 | 22,085 | Time Charter | Ethane | |
Navigator Venus* | 2000 | 22,085 | Spot Market | Ethane | — |
Navigator Atlas* | 2014 | 21,000 | Spot Market | — | — |
Navigator Europa* | 2014 | 21,000 | Time Charter | Ethane | |
Navigator Oberon* | 2014 | 21,000 | Spot Market | Ethylene | — |
Navigator Triton* | 2015 | 21,000 | Spot Market | Ethane | — |
Navigator Umbrio* | 2015 | 21,000 | Time Charter | Ethane | |
Navigator Luna* | 2018 | 17,000 | Spot Market | Ethylene | — |
Navigator Solar* | 2018 | 17,000 | Time Charter | Ethylene | |
Navigator Castor* | 2019 | 22,000 | Spot Market | Ethylene | — |
Navigator Equator* | 2019 | 22,000 | Time Charter | Ethane | |
Navigator | 2019 | 22,000 | Spot Market | Ethylene | — |
Ethylene/ethane capable semi-refrigerated smaller size | |||||
2008 | 9,000 | — | — | ||
2012 | 6,800 | — | — | ||
Happy Penguin** | 2013 | 6,800 | — | — | |
Happy Kestrel** | 2013 | 12,000 | — | — | |
Happy Osprey** | 2013 | 12,000 | — | — | |
2014 | 12,000 | — | — | ||
Happy Albatross** | 2015 | 12,000 | — | — | |
Happy Avocet** | 2017 | 12,000 | — | — | |
Semi-refrigerated handysize | |||||
Navigator Aries | 2008 | 20,750 | Time Charter | LPG | |
Navigator Capricorn | 2008 | 20,750 | Time Charter | LPG | |
Navigator Gemini | 2009 | 20,750 | Time Charter | LPG | |
Navigator Pegasus | 2009 | 22,200 | Spot Market | — | — |
Navigator | 2009 | 22,200 | Time Charter | Ammonia | |
Navigator Scorpio | 2009 | 20,750 | Time Charter | LPG | |
Navigator Taurus | 2009 | 20,750 | Time Charter | Ammonia | |
Navigator Virgo | 2009 | 20,750 | Time Charter | LPG | |
Navigator Leo | 2011 | 20,600 | Time Charter | LPG | |
Navigator Libra | 2012 | 20,600 | Time Charter | LPG | |
2014 | 22,000 | Time Charter | LPG | ||
2015 | 22,000 | Time Charter | LPG | ||
2015 | 22,000 | Spot Market | LPG | — | |
2015 | 22,000 | Spot Market | LPG | — | |
Navigator Centauri | 2015 | 21,000 | Time Charter | LPG | |
Navigator Ceres | 2015 | 21,000 | Time Charter | LPG | |
Navigator Ceto | 2016 | 21,000 | Time Charter | LPG | |
Navigator Copernico | 2016 | 21,000 | Time Charter | LPG | |
2016 | 22,000 | Spot Market | LPG | — | |
Navigator Luga | 2017 | 22,000 | Time Charter | LPG | |
Navigator Yauza | 2017 | 22,000 | Time Charter | LPG | |
2017 | 22,000 | Spot Market | LPG | — | |
2017 | 22,000 | Time Charter | LPG | ||
Semi-refrigerated smaller size | |||||
2002 | 3,770 | — | — | ||
Fully-refrigerated | |||||
Navigator Glory | 2010 | 22,500 | Time Charter | Ammonia | |
Navigator Grace | 2010 | 22,500 | Time Charter | Ammonia | |
Navigator Galaxy | 2011 | 22,500 | Time Charter | Ammonia | |
Navigator Genesis | 2011 | 22,500 | Time Charter | Ammonia | |
Navigator Global | 2011 | 22,500 | Time Charter | Ammonia | |
Navigator Gusto | 2011 | 22,500 | Time Charter | Ammonia | |
Navigator Jorf | 2017 | 38,000 | Time Charter | Ammonia |
* denotes our owned vessels that operate within the Luna Pool
** denotes our owned vessels that operate within the independently managed
PART II. First Quarter 2024 Conference Call Details
On
Those wishing to participate should register for the webcast using the following details:
https://us06web.zoom.us/webinar/register/WN_GDgEYvKZQ--jx8wiPerasw
Webinar ID: 886 1481 2123
Passcode: 560302
Participants can also join by phone by dialing:
United Kingdom:+44 330 088 5830
A full list of US and international numbers is available via the following link:
International Dial-in numbers
The webcast and slide presentation will be available for replay on the Company's website (www.navigatorgas.com) shortly after the end of the webcast. Participants wishing to join the live webcast are encouraged to do so approximately 5 minutes prior to the start.
About
For media inquiries or further information, please contact:
Head of
Email: communications@navigatorgas.com
Verde,
Tel: +44 (0)7857 796 052, +44 (0)20 7045 4114
Navigator Gas Investor Relations
Email: investorrelations@navigatorgas.com, randy.giveans@navigatorgas.com
Tel: +1 713 373 6197, +44 (0)20 7340 4850
Investor Relations /
Capital Link –
Tel: +1-212-661-7566
Email: navigatorgas@capitallink.com
Category: Financial
Source:
2024 GlobeNewswire, Inc., source