Navigator Holdings Ltd. · NYSE:NVGS
Navigator — Q4 2022 Earnings Presentation
28 slides from Navigator's earnings presentation, Mar 21, 2023
Slide 1: Fourth Quarter 2022 Earnings Presentation
Fourth Quarter 2022 Earnings Presentation March 2023
Slide 2: Forward Looking Statements
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”
Slide 3: Highlights – Q4, 2022
Highlights – Q4, 2022: After Seasonally Soft 3Q, Market Recovery Led To Earnings Rebound; Q1, 2023 Likely To Be Even Better Financial Commercial Outlook • Operating revenues of $123.3 million for Q4, • Fleet utilization was 94.1% for Q4, 2022 • Utilization in Q1, 2023 expected to increase 2022, up 1
Slide 4: List of Contents
4 List of Contents ▪ Financial ▪ Commercial ▪ Recent Developments ▪ Appendix
Slide 5: Financial
Financial CORPORATE PRESENTATION 2023
Slide 6: Income Statement: Strong Quarterly Result Despite One-Time Expenses
Income Statement: Strong Quarterly Result Despite One-Time Expenses (US$’M) Q4, 2021 Q4, 2022 ▪ Solid operational performance for Q4 2022, with net income of $10.0 million, EPS Operating revenues 105,176 105,115 Operating revenues – Unigas Pool 18,849 11,837 of $0.13, and adjusted EBITDA of $59.4 mi
Slide 7: Balance Sheet & Liquidity: Cash Position Provides Financial Flexibility
Balance Sheet & Liquidity: Cash Position Provides Financial Flexibility (US$’M) December 31, 2021 December 31, 2022 ▪ Robust Balance Sheet with increased liquidity following debt refinancings ▪ Reduction of debt by $19.4 million during Q4, 2022 Assets ▪ Total liquidity increased by $26.2 million dur
Slide 8: Indicative Loan Repayment Profile
Indicative Loan Repayment Profile: Indicative Debt Maturity Profile Aggressively Reducing Debt $140 $100 million Bond $107 million facility $210 million facility $67 million facility $151 million facility $111.8 million facility $200 million facility $120 300 $35.2 $100 $35.0 250 $25.7 $80 $136m $mi
Slide 9: Lean Operations Provide Low Cash Breakevens
Lean Operations Provide Low Cash Breakevens ▪ Low TCE breakeven levels allow NVGS to report positive EBITDA in even the toughest market conditions and remain cash flow positive throughout the shipping cycle ▪ All-in cash breakeven for 2023 includes $110 MM in debt amortization Estimated Cash Breakev
Slide 10: Operational Leverage Provides Substantial EBITDA Upside
Operational Leverage Provides Substantial EBITDA Upside ▪ Four out of the last five quarters have resulted in at least $55 million of quarterly EBITDA ▪ Includes record high contribution from the ethylene export terminal joint venture of $7.9 MM (our 50% share) ▪ Annual EBITDA generation primarily d
Slide 11: Commercial
Commercial CORPORATE PRESENTATION 2023
Slide 12: North American NGL Production & Exports Continue To Climb Higher
North American NGL Production & Exports Continue To Climb Higher ▪ North American LPG exports continued to grow during 4Q, 2022 underpinning U.S. competitiveness against international markets. December production was impacted by winter-storm Elliot, however have since normalized. ▪ Handysize LPG exp
Slide 13: U.S. Ethylene Exports Remains Strong
U.S. Ethylene Exports Remains Strong; Ton-Mile Demand On The Rise ▪ Ethylene arbitrage remains open; U.S. ethylene exports being shipped to both Europe and Asia ▪ After softer volumes during Q3, 2022, U.S. ethylene exports at or above nameplate capacity throughout Q4, 2022 and Q1, 2023 ▪ Ethylene Ex
Slide 14: European Ammonia Imports Boosting Handysize Ship Demand
European Ammonia Imports Boosting Handysize Ship Demand ▪ Americas and Asia replacing ammonia supply-gap created by the war in Ukraine ▪ The replacement sources of supply are coming from locations further away, such as China, Australia, and Middle East leading to increase in ton-mile demand for our
Slide 15: Earnings Days Spread Across Several Commodities
Earnings Days Spread Across Several Commodities & Utilization Near Record High Earnings Days and Utilization Average utilization for Q4, 2022 94.1% 98.5% 98.8% ▪ 100% 96.4% 97.3% 95.2% 96.1% 95.4% 94.2% 94.4% 96.8% 93.3% 92.6% 90.9% 91.4% 91.3% 91.2% 89.9% 89.3% 89.5% 88.1% 87.3% 88.3% 90% 87.0% 86.
Slide 16: TimeCharter Rate Environment Continuing To Strengthen
TimeCharter Rate Environment Continuing To Strengthen 12 month timecharter assessment $1,100 $1,100 ▪ Small ethylene: $580kpcm ($19,000/day) $1,000 $1,000 ▪ Handy FR: $740kpcm ($24,500/day) $900 $900 ▪ Handy SR: $760kpcm ($25,000/day) TC Hire per calendar month (‘000s) $800 $800 ▪ Handy Eth: $925kpc
Slide 17: Fleet Supply Growth Limited With Low Handysize Orderbook
Fleet Supply Growth Limited With Low Handysize Orderbook # of Vessels Navigator >20 years Fleet 344 70 20% 50 21 - - - Fully-Refrigerated 113 24 1 Ethylene & Ethane 20% 14 15 2 4 - Fully-Refrigerated 25 1 4 6 Semi-Refrigerated 59 1 2% 16 23 Ethylene 38 - 5 14* Ethylene Semi-Refrigerated 365 25 7% 84
Slide 18: Recent Developments
Recent Developments CORPORATE PRESENTATION 2023
Slide 19: Fleet Renewal Ongoing
Fleet Renewal Ongoing: Out With The Old, In With The Modern ▪ On November 23, 2022, we sold our oldest vessel, Navigator Magellan, a 1998-built 22,000 cbm LPG carrier to a third party for $12.7 million ▪ We continue to engage buyers who are showing interest to acquire our four vessels above 20 years
Slide 20: Actively Using Our $50 MM Share Buyback Program
Actively Using Our $50 MM Share Buyback Program ▪ On October 18th, Navigator Holdings announced the Board’s authorization for a share repurchase program of up to $50 million of NVGS common stock, to be implemented via open market purchases, privately negotiated transactions, or in accordance with an
Slide 21: Ethylene Export Terminal Expansion At Morgan’s Point Now Underway
Ethylene Export Terminal Expansion At Morgan’s Point Now Underway ▪ The Company announced a project under its existing 50/50 joint venture with Enterprise Products Partners to expand its ethylene export terminal at Morgan’s Point by at least 550,000 tons per year and up to 2 million tons per year ▪
Slide 22: Conclusion: Navigator Well-Positioned To Outperform In The Coming Quarters
Conclusion: Navigator Well-Positioned To Outperform In The Coming Quarters Financial Commercial Outlook • Four out of last five quarters with EBITDA • Fleet utilization remains above 95% with • Shipping markets remain tight with nearly full generation above $55.0 MM. TCE rates on the rise across all
Slide 23: Analyst Q&A
Analyst Q&A CORPORATE PRESENTATION 2023
Slide 24: Appendix
Appendix CORPORATE PRESENTATION 2023
Slide 25: NVGS Fleet List as of March 2023
NVGS Fleet List as of March 2023 Year Vessel Size Employment Current Time Charter Operating Vessel Built (cbm) Status Cargo Expiration Date Ethylene/ethane capable semi-refrigerated midsize Navigator Aurora 2016 37,300 Time Charter Ethane December 2026 Navigator Eclipse 2016 37,300 Time Charter Etha
Slide 26: NVGS Fleet List (continued)
Operating Vessel Year Built Vessel Size (cbm) Employment Status Current Cargo Time Charter Expiration Date Navigator Pegasus 2009 22,200 Time Charter Propylene June 2023 Navigator Phoenix 2009 22,200 Time Charter Ammonia August 2023 Navigator Scorpio 2009 20,750 Time Charter LPG January 2024 Navigat
Slide 27: Contact Investor Relations
Contact Investor Relations investorrelations@navigatorgas.com CORPORATE PRESENTATION 2023 27
Slide 28: CORPORATE PRESENTATION 2023
CORPORATE PRESENTATION 2023