Navigator (NVGS) Q3 2024 earnings summary

Executive summary

• Q3 2024 operating revenue was $141.8 million, up 2.9% year-over-year, with adjusted EBITDA of $67.7 million and adjusted net income of $20.1 million ($0.29/share); net income attributable to shareholders was $18.2 million.

• Fleet utilization was 90.9% in Q3, with average TCE rates at $29,079/day, the second highest since 2016.

• Ethylene terminal throughput was impacted by Hurricane Beryl but rebounded in October; terminal expansion remains on track for December 2024 completion.

• Two new mid-size ethylene carriers were ordered, with options for two more, supporting terminal expansion and fleet growth.

• ESG performance improved, ranking third in the Webber Research ESG scorecard and top LPG shipping company.

Financial highlights

• Adjusted EBITDA was $67.7 million in Q3 2024, down from $72.2 million in Q3 2023; net income attributable to shareholders was $18.2 million ($0.26/share), with adjusted net income at $20.1 million ($0.29/share).

• Cash and cash equivalents stood at $127 million as of September 30, 2024, with total liquidity of $196 million after loan repayments and share buybacks.

• Issued $100 million in new unsecured bonds at 7.25%, the tightest spread for a USD shipping bond in the Nordic market since 2008.

• Paid $24.1 million for loan repayments and buybacks, $8 million for terminal expansion, and repaid $40 million on a revolving credit facility.

• Debt reduced by $24.1 million in Q3 to $801.6 million; $1,069.8 million in future obligations remain.

Outlook and guidance

• Q4 2024 is expected to see higher vessel utilization, robust TCE rates, and increased ethylene export volumes as U.S. prices normalize.

• Ethylene terminal expansion to complete in December 2024, with operations starting January 2025 and export capacity rising to at least 1.55 million tons per annum.

• 41% of available days for the next 12 months are covered under time charters with fixed earnings.

• Guidance for vessel OpEx, G&A, depreciation, and net interest expense remains unchanged from Q2.