Navigator Holdings Ltd. (NVGS) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and good afternoon and thank you very much for joining this Navigator Gas Earnings Call for Q2 2026. Before we get into the results, let me just say a few words about the Middle East. We continue to have no vessels operating in or transiting the Hormuz Strait and we don't see any material operational impacts. As I'll touch on shortly, and though it's on a sad background, the conflict continues to create real commercial tailwinds for us. Please turn to slide number four. Q2 2026 was an exceptional quarter, and I mean that in the most literal sense. We set all time records for net income, for EBITDA, for earnings per share, and average TCE rate, all at the same quarter. and for a company that's been operating for over 25 years, that is quite special. Let me walk you through a couple of the highlights. On the commercial side, TCE rates hit a record high of almost $34,000 per day. This is up significantly from Q1 and up 20% from the same period last year. Utilization came in above our 90% benchmark. These are strong numbers across the board. Our ethylene export terminal at Morgans Point delivered yet another record 374 tons in the quarter. That follows from previous record that we set just one quarter ago. Demand from Europe and Asia for US ethylene continues to grow, driven by high NAFTA prices and structural changes to how global crackers are sourcing their feedstock. We've also signed a fourth new off-take contract in the quarter and discussions for further contracts remain active. On portfolio management, we completed the sale of Navigator Pegasus in April for approximately $31 million and a book gain of over $15 million. And in July, we signed the definitive agreement to divest the eight Unigas pool vessels for a combined $183 million. That's a signific...