Navigator Holdings Ltd. (NVGS) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and good afternoon, and thank you all for joining this Navigator Gas Earnings Call for Q3 2025. As a start, I'll just review the key data from our Q3 2025 performance, and then I'll go over the outlook for the coming quarter. After that, as usual, Gary and Oivin and Randy will discuss the results in more detail. The quarter was in many ways a return to more calm waters after the unusual and difficult Q2. In Q3, we saw geopolitical tensions recede somewhat. Port fees from the US and later China now seem to be gone, and tariffs appear to have found their level. However, for Navigator, we still saw an impact from the trade turmoil in our Q3 trading, particularly from the significantly lower ethylene exports from US to China. Øivind is going to bring a little bit more color to this topic shortly. Please turn to slide number four. With that background and moving to our results, in Q3, we generated revenues of $153 million, up 18% compared to the previous quarter and 8% compared to same period last year. The main drive of revenue was both higher time chart equivalent rates, but also robust utilization. We're pleased to disclose that we achieved the highest EBITDA on record at $86 million and an adjusted EBITDA of $77 million the latter number which excludes the $13 million of book gain from selling Navigator Gemini. You may recall that we sold Navigator Venus last quarter at a book gain of $12 million, and I think if we combine the two, I believe it gives pretty strong credence to our estimated net asset value. The balance sheet is very strong with a cash position of $216 million at quarter end plus drawing rights, which leaves us with $308 million of liquidity. You will note on 4th November, we increased our capital return to 30% of net income from previously...