• Revenue: Increased by 2% compared to the same period previous year, totaling $144 million for Q4 2024.
• Adjusted EBITDA: $73.4 million for Q4 2024, up from $72 million in the same period previous year.
• Net Income: $21.6 million for Q4 2024, with a basic earnings per share of $0.31.
• Adjusted Net Income: $27 million or $0.39 per share, excluding unrealized gains/losses on derivatives and other adjustments.
• Cash Position: $139.8 million in cash and cash equivalents as of December 31, 2024.
• Debt Repayment: $35 million in scheduled loan repayments during Q4 2024.
• New Bonds Issued: $100 million of unsecured bonds at 7.25% in the Nordic market.
• Time Charter Equivalent (TCE) Rates: Average of $28,341 per day for Q4 2024.
• Utilization Rate: 92.2% for Q4 2024.
• Vessel Operating Expenses: $46 million for Q4 2024.
• General and Administrative Costs: $9.4 million for Q4 2024.
• Ethylene Terminal Throughput: 159,183 tons for Q4 2024, contributing $5.6 million from the joint venture.
• Return of Capital: $0.05 fixed dividend and share buyback totaling 25% of net income for Q4 2024.
• New Vessel Acquisitions: Three handysize ethylene carriers for $83.9 million, with two delivered in February 2025.
• Debt to Adjusted EBITDA Ratio: 2.4 times as of December 31, 2024.
• Net Debt Capitalization: 34% at the end of 2024.
• Cash Breakeven for 2025: Estimated at $20,610 per day.

• Warning! GuruFocus has detected 3 Warning Sign with NVGS.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Navigator Holdings Ltd (NYSE:NVGS) reported a 2% increase in revenues for Q4 2024 compared to the same period the previous year, driven by higher utilization.
• The company achieved an adjusted EBITDA of over $73 million for Q4 2024, surpassing both the previous year's Q4 and Q3 2024 figures.
• Navigator Holdings Ltd (NYSE:NVGS) maintained a strong balance sheet with a robust cash position, even after significant debt repayments and investments.
• The company successfully issued $100 million of new unsecured bonds at a favorable rate of 7.25%, marking the tightest spread for any dollar-denominated shipping bond in the Nordic market since 2008.
• Navigator Holdings Ltd (NYSE:NVGS) completed the expansion of its ethylene export terminal on time and on budget, increasing its annual throughput capacity significantly.

Negative Points

• The throughput at the joint venture ethylene export terminal was lower than Q4 2023 and below capacity due to US cracker turnarounds.
• The ethylene transport demand was temporarily softer, impacting market conditions.
• Vessel operating expenses were slightly up compared to the average of the first three quarters of 2024, typical at the end of the financial year due to accruals.
• The company reported a small unrealized loss of $0.3 million related to movements in the fair market value of long-term interest rate swaps.
• Geopolitical tensions and market uncertainties pose challenges to longer-term forecasting and could impact future operations.

Q & A Highlights

Q: Can you provide insights on the chartering market for your ships, especially those coming off contract soon? A: Mads Peter Zacho, CEO: The semi-refrigerated and ethylene markets are holding strong, unlike the fully-refrigerated segment. We expect the ethylene market to strengthen as the arbitrage widens, which should increase demand for handysize ethylene ships. Current rates are robust, and we are not inclined to offer ethylene ships at low rates, anticipating a tighter market.

Q: Should we expect the contribution from the ethylene terminal joint venture to be similar in Q1 2025 as it was in Q4 2024? A: Gary Chapman, CFO: Q1 volumes will be slightly lower than Q4 due to some deficiencies rolling over from Q4. The results for Q1 2025 will likely be softer than Q4 2024.

Q: How do geopolitical tensions, such as those in the Red Sea and Ukraine, impact your business? A: Randy Giveans, EVP: The Red Sea tensions have minimal impact as we don't transit much through there. The Ukraine conflict has slightly increased ammonia transportation, but overall, trade frictions have not affected the products we transport. Tariffs on our cargoes could negatively impact rates, but we haven't seen any indications of this yet.

Q: Can you update us on the status of the Morgan's Point ethylene terminal and your strategy for offtake agreements? A: Gary Chapman, CFO: The terminal is fully operational and capable of running near max utilization. We aim to contract up to 90% of the capacity, leaving some room for spot cargos. The arb is a key factor, and we expect more contracts to be signed as it improves.

Q: What are the plans for the potential corporate redomicile from the Marshall Islands to England and Wales? A: Mads Peter Zacho, CEO: We aim to align our domicile with where we conduct business, primarily in the US and Europe. We don't anticipate significant tax implications due to efficient tonnage taxation schemes in Europe. The move is intended to streamline our structure and bring us closer to our business operations.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.