NAVIGATOR HOLDINGS LTD. Navigator Gas (NYSE: NVGS)
Analyst Day
November 2023
Forward Looking Statements
This presentation contains certain statements that may be deemed to be "forward- looking statements" within the meaning of applicable federal securities laws. Most forward-looking statements contain words that identify them as forward-looking, such as "may", "plan", "seek", "will", "expect", "intend", "estimate", "anticipate", "believe", "project", "opportunity", "target", "goal", "growing" and "continue" or other words that relate to future events, as opposed to past or current events. All statements, other than statements of historical facts, that address activities, events or developments that Navigator Holdings Ltd. ("Navigator" or the "Company") expects, projects, believes or anticipates will or may occur in the future, including, without limitation, acquisitions of vessels, the outlook for fleet utilization and shipping rates, general industry conditions, future operating results of the Company's vessels, capital expenditures, expansion and growth opportunities, business strategy, ability to pay dividends and other such matters, are forward- looking statements. Although the Company believes that its expectations stated in this presentation are based on reasonable assumptions, actual results may differ any expectations or goals expressed in, or implied by, the forward-looking statements included in this presentation, possibly to a material degree.
Navigator cannot assure you that the assumptions made in preparing any of the forward-looking statements will prove accurate or that any long-term financial goals will be realized. All forward-looking statements included in this presentation speak only as of the date made, and Navigator undertakes no obligation to update or revise publicly any such forward-looking statements, whether as a result of new information, future events, or otherwise. In particular, Navigator cautions you not to place undue weight on certain forward-looking statements pertaining to potential growth opportunities or long-term financial goals set forth herein.
CORPORATE PRESENTATION 2023 | 2 |
Navigator Gas: At A Glance
Company Profile | Fleet View (56 LPG Vessels) | |
-
Headquartered in the
UK with offices in…
London
Copenhagen
Gdynia
Manila
Houston
- Market Cap = $1.1 billion (NYSE Listed: NVGS)
- 56 LPG vessels
- Ethylene export terminal join venture (50%) at Morgan's Point in Houston, TX
- ESG ranked #7 (out of 64 shipping companies) by Webber Research's 2023 ESG scorecard
Medium Gas Carriers (Fully-Refrigerated) | |||||||||||||||||
35,000 - 39,999 CBM | |||||||||||||||||
Medium Gas Carriers (Ethylene & Ethane) | |||||||||||||||||
35,000 - 39,999 CBM | |||||||||||||||||
Handysize Gas Carriers (Fully-Refridgerated) | |||||||||||||||||
15,000 - 24,999 CBM | |||||||||||||||||
Handysize Gas Carriers (Ethylene) | |||||||||||||||||
15,000 - 24,999 CBM | |||||||||||||||||
Handysize Gas Carriers (Semi-Refridgerated) | |||||||||||||||||
15,000 - 24,999 CBM | |||||||||||||||||
Small Gas Carrier (Semi-Refridgerated) | |||||||||||||||||
5,000 - 14,999 CBM | |||||||||||||||||
0 | 5 | 10 | 15 | 20 | 25 | ||||||||||||
Average Fleet Age: 10 years | |||||||||||||||||
Balance Sheet Strength | |||||||||||||||||
Available | |||||||||||||||||
Liquidity | |||||||||||||||||
$179 MM | $179 MM | $2,157 MM | |||||||||||||||
Net LTV | $958 MM | $779 MM | |||||||||||||||
37% | |||||||||||||||||
Total Debt | Cash + Cash | Net Debt | Market Value of | ||||||||||||||
Equivalents | Assets |
CORPORATE PRESENTATION 2023 | 3 |
Company History: Proven Track Record With The Best Still To Come
1997
Navigator Holdings formed with the purpose of building and operating a fleet of five semi- refrigerated, ethylene-capable gas carriers
2012
The Company acquired 11 Handysize gas vessels from Maersk Tankers for USD 470 million and gained the position as the world's largest owner of Handysize gas vessels
2016 | 2019 | |
Navigator Gas moved | Commercial | |
into the mid-sized | operations of the | |
market, commissioning | ethylene export | |
newbuild ethylene | terminal | |
vessels with increased | commences | |
capacity | following the | |
accommodating the | completion of | |
needs of the | phase 1 of the | |
Company's business | construction. | |
partners | ||
2021
Successfully completed the merger of Ultragas' fleet and business activities with our own, adding 18 vessels and uniting two leading gas shipping companies.
2022
Announced a new joint venture, owned 60% by Navigator and 40% by Greater Bay Gas, to acquire a total of five ethylene
vessels from 4Q22 56* through 2023.
2000 | 2013 |
The Company's initial | Initial Public |
vessels came into | Offering at $19 |
operation in 2000. | per share on the |
New York Stock | |
Exchange (NVGS). |
5
2017 | 2020 |
Navigator announced | 30,000-ton tank |
an intention to | successfully constructed |
develop an ethylene | completing phase 2 of the |
marine export | ethylene export terminal |
terminal. | maximizing throughput |
capacity to 1.0 million | |
tons per annum. |
2023
The Company announced the expansion of its ethylene export terminal at Morgan's Point to at least 1.55 million tons per year and up to 3.2 million tons per year by converting an existing ethane refrigeration train to also refrigerate ethylene.
CORPORATE PRESENTATION 2023 | 4 |
*fleet count includes 60% of 5 vessels acquired through our joint venture with Greater Bay Gas | |
What We Transport: Diverse Commodity Mix
CORPORATE PRESENTATION 2023
Carbon Dioxide
Maritime transportation of carbon dioxide will play a vital role in enabling the carbon capture & storage value chain for industrial clusters.
CO2 transportation in liquid form is one real and proven avenue to reduce green house gas emissions to the atmosphere, and is driven by legislation for carbon tax.
5
Navigator "Virtual Pipeline" Connecting Markets
- We provide safe, reliable and efficient logistics service to the midstream industry, to producers and to consumers by extending a "virtual pipeline" to international markets
- LPG & Ammonia trading-patterns are of regional nature, and Petrochemicals are typically on longer transcontinental routes
CORPORATE PRESENTATION 2023 | 6 |
ESG Excellence...
Recognized by Webber Research's ESG scorecard as being within the top quartile of assessed companies for the second year running.
2021 | 52 | |||||
16th place | ||||||
companies | ||||||
2022 | 52 | |||||
11th place | ||||||
companies | ||||||
2023 | 64 | |||||
7th place | ||||||
companies |
Diversity and Inclusion…
Winner of the 2022 "Green Finance Deal of the Year Award" for pioneering the approach of including a diversity target in a sustainability-linkedloan.
Gender (Leadership)Gender (Total)
28% | 39% |
Target | Target |
35% | 45% |
Onshore figures only
Strong Strategy…
Navigator Gas is committed to driving a sustainable transformation in shipping.
Contribute to the shipping industry's target to become net zero by 2050
Derive ⅓ of revenues from green cargo such as blue & green ammonia, and CO2 by 2030
Ensure 35% of onshore
leadership positions are filled
by women by 2028
CORPORATE PRESENTATION 2023 | 7 |
Highlights Of Our Record Setting Quarter In 3Q23
Financial
- Operating revenues of $137.8 MM for Q3, 2023, up 29.0% compared to $106.8 MM for Q3, 2022.
- Adjusted EBITDA was a new record of $72.2 MM for Q3, 2023, compared to $41.5 MM for Q3, 2022 and $69.3 MM for Q2, 2023.
- Net income to Navigator of $19.1 MM, or $0.26 per share for Q3, 2023; adjusted net income of $20.1 MM, or $0.27 per share.
- Cash position remained robust at $178.7 MM as of September 30, 2023, compared to $153.2 MM as of December 31, 2022.
- In September 2023, we purchased an aggregate of $9 MM of our unsecured notes in the open market using cash on hand.
- Under the Company's Return of Capital policy, we paid a cash dividend of $0.05/share (totalling $3.7 MM) and repurchased shares for an amount of $3 MM in respect of 2023 Q2 Net Income.
- Declared a $0.05/share dividend plus $1.1 MM of share buybacks for 3Q23 results (to be paid/ repurchased during 4Q23).
Commercial
- Fleet utilization was 93.4% for Q3, 2023 compared to 84.9% for Q3, 2022.
- Average TCE earned for our vessels of $26,278 for Q3, 2023 compared to $22,022 for Q3, 2022.
- Ethylene Export Terminal throughput volumes were 249,857 tons for Q3, 2023 compared to 189,140 tons for Q3, 2022.
-
Expansion of our Ethylene Export Terminal at
Morgan's Point is underway. Contributed progress payments of $9 MM in April, August, and October 2023. Long-lead items have been ordered and groundwork is progressing. - Announced a new investment alongside Yara Growth Ventures to acquire a 14.5% interest in Azane Fuel Solutions. First green ammonia bunkering units to be delivered in 2025 enabling low carbon fuel offering to shipowners.
- The monthly Handysize ethane and ethylene from the U.S. has surpassed the levels seen in the same months in recent years, underscoring its competitiveness for global customers.
Outlook
- The number of Panama Canal transits are being reduced due to lack of water which will increase duration of voyages from U.S. to Asia which in turn will impact tonnage availability.
- Utilization in Q4, 2023 expected to be around 90%.
- TCE rates are typically stronger across the board going into the winter period
- Q4, 2023 ethylene export volumes through the Ethylene Export Terminal expected to remain near nameplate capacity.
- Supply picture remains attractive with a minimal Handysize orderbook and large percentage of the fleet already >20 years of age.
- US NGL production reaching new record highs.
- U.S. ethylene continue to service both Europe and Asia Pacific customers and we expect volumes to be split 50/50 to each continent during Q4, 2023.
CORPORATE PRESENTATION 2023 | 8 |
Commercial
Earnings Days Spread Across Several Commodities; 3Q23 Utilization Counter- Seasonally Strong
Earning days vs Utilization
97.4% | ||||||||||||||||||||||||||
100% | 96.4% | 97.3% | 95.2% | 96.8% | 98.8% | |||||||||||||||||||||
91.4% | 93.3% | 96.1% | 91.3% | 94.2% | 94.4% | 91.8% | 93.0% | |||||||||||||||||||
89.9% | 90.9% | |||||||||||||||||||||||||
88.1% | 89.3% | 89.5%94.2% | 93.0% | |||||||||||||||||||||||
90% | 87.0% | 85.9% | 87.1% | 86.2% | 91.2% | |||||||||||||||||||||
84.6% | 90.7% | 85.4% | 90.0% | 90.1% | ||||||||||||||||||||||
83.9% | 84.5% | 85.3% | ||||||||||||||||||||||||
82.3% | 83.9% | 85.7% | 87.5% | |||||||||||||||||||||||
86.1% | ||||||||||||||||||||||||||
84.1% | 83.6% | |||||||||||||||||||||||||
80% | 81.9% | 83.0% | 83.2% | 75.8% | 76.8% | 83.0% | 82.9% | |||||||||||||||||||
75.7% | ||||||||||||||||||||||||||
72.8% | ||||||||||||||||||||||||||
74.6% | 73.1% | Petchems Spot | ||||||||||||||||||||||||
70% | 71.4% | 70.8% | ||||||||||||||||||||||||
63.3% | 69.0% | |||||||||||||||||||||||||
64.5% | ||||||||||||||||||||||||||
60% | ||||||||||||||||||||||||||
Petchem TC | ||||||||||||||||||||||||||
50% | ||||||||||||||||||||||||||
LPG Spot | ||||||||||||||||||||||||||
40% | ||||||||||||||||||||||||||
30% | ||||||||||||||||||||||||||
LPG TC | ||||||||||||||||||||||||||
20% | ||||||||||||||||||||||||||
10% | ||||||||||||||||||||||||||
0.0% | Ammonia TC | |||||||||||||||||||||||||
0% | ||||||||||||||||||||||||||
Ammonia TC | Ammonia Spot | LPG TC | LPG Spot | Petchems TC | Petchems Spot | Utilisaton% | ||||||||||||||||||||
CORPORATE PRESENTATION 2023 | 10 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Navigator Holdings Ltd. published this content on 17 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 December 2023 09:32:20 UTC.
