Navigator Holdings Ltd. announces preliminary negotiation

LONDON and NEW YORK, 08 Feb. 2022 (GLOBE NEWSWIRE) — Navigator Holdings Ltd. (“Navigator”) (NYSE: NVGS), owner and operator of the world’s largest fleet of utility-sized liquefied gas carriers, is pleased to provide a business update ahead of its preliminary unaudited fourth quarter and the fiscal year ended in 2021, which the company expects to publish in March 2022.

Oeyvind Lindeman, Commercial Director of Navigator, commented:

“2021 has been a landmark year for Navigator. Not only did we complete the largest M&A transaction in this company’s history, strengthening the foundations of our business and adding new opportunities to generate value, but we also began to see the value in our investments to date, particularly from the third quarter of 2021, where we have seen an increase in revenue and net income compared to previous quarters.

“With these foundations, we continued our strong operational performance in the fourth quarter of 2021, during which our fleet utilization remained at a high level of 91.4%, and we achieved throughput volumes in our joint venture Houston Ethylene Export Terminal of 234,000 tonnes.

“As we look to 2022, Navigator is in a strong position from which to grow. We look forward to delivering strong further operating performance and finding new ways to generate shareholder value. »

Fourth quarter 2021 operational highlights:

Based on the Company’s preliminary estimates, the following are specific operational highlights for the fourth quarter of 2021:

  • Strong operational performance across the business in Q4 2021, increasing results achieved in prior quarters.
  • Fleet utilization of 91.4% in the three months ended December 31, 2021, compared to fleet utilization of 84.0% for the three months ended September 30, 2021.
  • Houston Ethylene Export Terminal throughput volumes of 234,000 tonnes for the three months ended December 31, 2021, compared to 128,000 tonnes for the three months ended September 30, 2021.
  • New charter agreements, including fixed-time charter extensions for our mid-size ethane carriers, with a 4-year extension for the Eclipse Browsera 3-year extension for the Nova Browser and a new 4-year time charter for the Browser prominence.
  • Freight rates continued to strengthen in the fourth quarter of 2021, with the 12-month time charter valuation for practical-sized semi-refrigerated vessels increasing 15% from $590,000 as of September 30 2021 at $680,000 at the end of the year.
  • Debt reduction of approximately $24.2 million during the fourth quarter of 2021, with cash and cash equivalents of approximately $124.0 million as of December 31, 2021.

The Company’s financial and operating information included in this press release is preliminary and is subject to change in connection with the completion of the Company’s quarter-end closing procedures and subsequent financial review. Actual results may differ from these estimates, and such differences may be material, due to the completion of the Company’s quarter-end closing procedures, review adjustments and other developments that may occur between now and when such financial information for the quarter ended and year ended December 31, 2021 is finalized.

Outlook for 2022:

  • Continued strong operational performance so far in Q1 2022:
    • Fleet utilization is expected to average above 90% during the first quarter of 2022;
    • The Houston Ethylene Export Terminal joint venture achieved a record throughput volume of 100,250 tons during the month of January 2022, 20% above nameplate capacity, with throughput volumes expected to exceed 200,000 tons for the first quarter 2022.
  • Freight rates held steady through Lunar New Year, reflected in Clarkson’s 12-month time charter valuation for practical-sized semi-refrigerated vessels, listed at $680,000 cfm in January 2022.
  • Ethylene arbitrage from the US to Europe continues to be positive, posting a price differential of over 600 pmt. The Far East arbitrage opportunity closed on the back of lower inter-China demand and higher US ethylene prices. We expect the ethylene arbitration between the United States and the Far East to reopen at some point after the Lunar New Year.
  • In January 2022, the Company sold and delivered the Neptune Navigator, a 22,000 m3 ethylene carrier built in 2000 for $21.0 million. Under the terms of the NOK 600 million bond issue, on which the vessel has been provided as collateral, the net proceeds of the sale will be tendered to repay part of the bond.
  • In October 2021, the Company sold and delivered the happy bridea 6,400 m3 LPG carrier built in 1999. These two vessel sales have reduced the average age of our fleet and improved the company’s sustainability profile.

About Us
Navigator Holdings Ltd. is the owner and operator of the world’s largest fleet of practical-sized liquefied gas carriers and a global leader in petrochemical gas shipping services, such as ethylene and ethane, gas liquid petroleum (“LPG”) and ammonia. a 50% interest, through a joint venture, in a marine ethylene export terminal at Morgan’s Point, Texas, on the Houston Ship Channel, USA. Navigator’s fleet consists of 54 semi- or fully refrigerated liquefied gas carriers, 21 of which are ethylene and ethane compatible. The company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with its sophisticated vessels providing an efficient and reliable “floating pipeline” between parties, connecting the world today, creating a sustainable future.

Forward-looking statements
This press release contains forward-looking statements regarding management’s plans and objectives for future operations or economic performance, or assumptions relating thereto, including our trends or forecasts. Additionally, we and our representatives may from time to time make other oral or written statements that are also forward-looking statements. These statements include, among other things, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate. In some cases, you can identify forward-looking statements by the use of words such as “may”, “could”, “should”, “should”, “expect”, “plan”, “anticipate”, ” intends, “anticipates”, “believes”, “estimates”, “predicts”, “proposes”, “potential”, “continues”, “intended” or the negative of these terms or any other comparable terminology. Forward-looking statements appear in several places in this press release. All statements, other than statements of historical fact, that address activities, events or developments that Navigator anticipates, projects, believes or foresees will or may occur in the future, including, without limitation, outlook for fleet utilization and shipping rates, general industry conditions, future operating results of the Company’s vessels, capital expenditures, opportunities for expansion and growth, business strategy, ability to pay dividends and other similar matters are forward-looking statements. Forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties. Although the Company believes that its expectations and forecasts set forth in this press release are based on reasonable assumptions, actual results may differ from the expectations or objectives expressed or implied by the forward-looking statements included in this press release, possibly to a degree degree. Please refer to Navigator’s publicly filed documents for additional information about risks and uncertainties related to Navigator’s business, which may affect statements made in this press release.

Navigator cannot assure you that the assumptions made in preparing any of the forward-looking statements will prove to be correct or that long-term financial objectives will be achieved. All forward-looking statements included in this press release speak only as of the date of publication, and Navigator undertakes no obligation to publicly update or revise 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 reliance on certain forward-looking statements relating to potential growth opportunities or long-term financial goals set forth herein. We make no predictions or representations about the performance of our common stock.