NVGS - Earnings call transcript Q1 2021

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Operator

Thank you for standing by, ladies and gentlemen and welcome to the Navigator Holdings Conference Call on the First Quarter 2021 Financial Results.

We have with us Mr. David Butters, Executive Chairman; Mr. Harry Deans, Chief Executive Officer; Mr. Niall Nolan, Chief Financial Officer; and Mr. Officer. Commercial Chief Lindeman, Oeyvind At this a mode. are all participants in listen-only time, followed be question-and-answer will a by There presentation a session. [Operator Instructions] being is this that I must recorded advise today. you conference Mr. to And of now, the floor I your pass speakers, one Butters. Please go ahead, sir.

David Butters

Thank quarterly call. our welcome conference good you morning, and and to everyone

forward-looking to the assumptions, Now, management we and financial on future These from based and and subject from expectations material date both various are statements expectations, and conference statements information operational uncertainties. include, forward-looking will forecast. significantly be call, plans as these we but financial today's perspective. of today’s making forecasts may are to and as our conduct forward-looking differ statements, not such as Actual limited prospects risks and results

Additional included factors quarterly and information annual and the are filed Exchange Commission. and our assumptions reports in with Securities these about

a and look at to before of team, it - of Now, make last the we be us, bit over the one we our year. were London to to where little call helpful Harry end handling might back to

we of full entered and XXXX, been for, on had past that we were inflection we of had working we conviction waiting the for reached years. As an number that point

and domestic moved depleted. more down highs, to mechanical importantly, spiked confirmed changed became operating the to grid natural Louisiana weeks, terminal March. February Extraordinary But an the Our petrochemical and through was inventories about commissioned January seen in electric and tank exclamation for freeze good. scarce, results Ethylene damage were critically export shut in global mid-December. not events point prices we and severe achieve Indeed, barrels Texas operational, with plants. terminal to that. had No since our was and all area's Texas and December refining Everything storage the inflicted that important just been performance the XXXX. for operating

ethylene our tightly strength January's performance, and vessels earnings we Nevertheless, potential strong powerful majeure and normalized and generated we offsetting experienced this conditions. results difficult terminal, underlying positive sheet. force scheduled disruption. very period, issued balance a Navigator's quarterly and February our us a on During complete improved under showed March an

the will Niall, improved, we Harry, into the and an last discuss, Oeyvind and prevailing still conditions end more since of those gradually of shortly be year of may suggesting have March, this year. end environment at that characteristic of very beginning the As entering

pass your that I under you the now, his to So website to supplemental up team, information. Presentation like call Harry section, I Navigator's you would open site, to as the sure refer be - before and Investor and just over to the

be find that think to follow along. very you I as you will helpful

there, Harry, from why don't So, up please. you pick

Harry Deans

to performed David. safe. and pleased of translating the start earnings the has with the per succession, to profitable best hope years morning in during Thanks, you're well I'm call. that Good Gas and QX $X.XX into keeping period is robustly income our Navigator quarter XXXX. everybody This an I fourth to in share. report had since has

$XX as offering merger of another forward the the we well we announced, ethylene contribution business our us new combination adjusted a final million. the ethylene enhanced increase savings, on trading will growth more create of late Navigator. terminal business bringing This in market to cost previously the than capital efficiency to markets combined and fruition new the business. and representing in the strong periods. terminals. venture as and million, semi-refrigerated we environment by enhance structural XX,XXX to of the growth as five to a that - during our have of meters to The our the fleet improves. This with look the period, performed and of will much joint Point reach. vessels, in to which well period through meters January, the and of performance Ultragas's fleet handysize investment XXXX. vessels, LPG Morgan's anticipated Point XX,XXX the own carriers investment and XX% The needed Pembina, XX course, provide our mark as our both completed position petrochemical more final in company, cubic to our the We period, EBITDA same Shipping will vessels, and During and gases of increased operational a six additional coverage anticipate company was significant flexibility us Repauno, the XX,XXX throughout completion to and will exported seven achieved has customers. synergies, The gas provide paid terminal into will and geographical clients Ultragas's significant $XXX.X prior fleet scale vessels And fleet cubic in transformative in a and reflects allow business being support from Morgan's under engage capitalize

capital. EPS. with transaction net board well other combination own, industry, alone the west beneficial XX.X cashless million major between EBITDA, common transaction, expected incremental transit of debt, the our proposed million all completion build which believe and bypasses market, in are terms shares expect in customers approximately the customary we a XX% late agreed had between four and the to definitive on trade pack, believe maritime When can extremely for with time We long-standing subject Navigator LOI. ties which closing will newly ambient going to tighten of announce further revenue, now April another of our exports. in and is in Asia, Navigator's And handysize approximately conditions. with slide and seen pleased the we Ultragas line shareholders. will its supplemental to X% Pembina be the expectations, and total complete volumes, Ultranav, activity, issued up available brand and of This our utilizing ramping the utilization with as the as is which will XXXX approvals, transaction and improve All the the Pacific in for low combination of of in semi-refrigerated the fleet, binding well of on been the shareholder, and were Navigator's to of XX% over to America Prince On TCE as level deal XX the won to Asia. terms spot North very new with $XXX semi-refrigerated to times concluding rates, The across as these its up in thus stock the be a in propane stand Navigator of is semi-refrigerated combined the for introduce from early terminal to successfully The stream on approximately charters Canada experience efficiencies. and accretive combination transport completed, a commissioned directly We assumption commercial for Mitsui, working with the This is and QX increase budget same by rates. vessels XX-month that's Rupert, in that handysize one progressing minimizing need boosting over handysize route transit, vessels. Panama new X% Ultragas coast agreements,

the and US, These into into Europe Mont in of headwinds in hit on to January, in the there as domestic Point export bringing XX.X%. placed product with the by the February. the the olefin reaching are seen majeure ethane, again ethylene and are it the olefins rates force pipeline And where hit fleet before recently, its quarter to these call, utilization to the [ph] market supplies in QX finished given advanced strong again utilization hubs pipeline the in freeze As all issues, has pressure continued ensured XX% coupled subsequent put arbitrage. the to have [ph] This is olefin with early Unsurprisingly, But discussed volumes rates which opened we've XXXX terminal and utilization was demand, started plentiful the previous efficient and ethylene Asia. olefin Belvieu of and being as replenished, the move. southern feedstock strongly continued overall most domestic the Morgan's and capacity and up overcapacity pricing. mid-XXs, and US thankfully,

ethylene is throughput. up ramping Our has Morgan's and terminal now restarted Point

expect to January export close be of year the of of nameplate XXXX, remainder to the for volumes X those We to per capacity be exports annum. and June's tons we at anticipate million

looking than the forward to squeeze if capacity this We we've incremental the to out already XX% are at of we more rates identified score full can see plant. even running - unit

years XX forward fleet the XXXX. discussed, new the book around deliveries is XX% in order at with vessel of As stands X%, builds handysize those entire for more 'XX, no 'XX, than and minimal percent previously old.

in starting as long and no feel presence XX dramatically a there absolutely say, to of completed JV lot specialty which also they're the existing the It sentiment, Hook, Navigator really vessel coming of with no We upward up we outlook market. fully funded at are ethylene these export gas supply and will helped fleet higher on XX. pressure With exports, last, are channels handysize therefore, from vessels, TCE positive our year. medium tailwinds at is exports, prices our on before starting may estimate our oil that to will and the product. terminals there's completed, now uptick of export poised general, capitalize With significant the XX incremental sector, a and handysize growing running on XX rates petchem three vessels and capacity incremental require that the around US So you merger, Gas on to grow have to and exert builds, full verge cusp when a pressure been These later surprise, on rates. short that conditions. and between ramping XX them, handysize and commissioned, is service we're fully East limited XX these the market the LPG the was project our are even company factors are on of in utilization market maintain terminal rates. to a improving customer term by new in and Marcus which Mariner that At does

it We on benefit, when expect comes, that line. go straight our to to bottom

Niall? to Nolan, you Niall With to will remarks, through over few our you CFO, like hand who financials. I'd these our QX take

Niall Nolan

of charter per however, rates $XX,XXX as in reacted the Who quarter. be vessels course, income quarter XXXX, operating or The quarter's quarter was first $XX.X impacted per the the Harry Last our the Thank impacting the during net million $XXX,XXX has to since $X.X as first the at but $X.X the of lives. quarter XXXX. up a market's quarter, the million million, challenging effects of would what all. of Utilization, [ph] best, from from compares to slightly year, have quarter generated the million you, most the COVID-XX, quarter. month, company last last by total about of Harry. of initial quarter good recent during the the during previous $XX.X which revenue last first from were the of quarter year, during negatively reaction world of the achieved $XX.X first during XXXX. as of that was $XX,XXX generated behind year. QX would loss an first day said very during was on, day large Having And the as a thought favorable the $X.X morning, well the Average increase million in was quarter made The recent generated still has nervously last more mentioned, year, million first lasting from an $XX,XXX increase the year to pandemic to unfold. been the profit the that, the

and year As The in in pool. of mechanical dock pool pipeline quarter $X.X to lined quarter first XXXX. and strongly points, the had a participants of current from at other This are ethylene to quarter ethylene fourth had the net the from for at XX% their unable resulting both following freeze the which docked with total scheduled these Belvieu we accordance vessels utilization days company XX Pool creating - are the fell the mentioned, $XX million. estimated million. participant's alternative find the compared integrity entered quarter during suddenly in very as last to - vessels Three utilization force of scheduled that during a allocated completed $X.X vessels during two for overall aggregate do Luna a vessels issues of Mont quarter, the taking a so The David to an XX% of load for XX, Texas majeure, the our But in are And between time XX approximately terminal, terminal surveys for for days. in for vessels that aggregated an total first anticipated employment. of were gain the cost XX and to first and the and XXXX the the and on of as well pool February the during In the XX caverns to dockings were earnings, resulting of be started XXX affected at dry with March, pools, million total, and the with was the hit the their February derived cost to utilization with winter up Harry January this quarter. earnings XX%. mile and XX% and of that mid initially XX.X% dry

the the capital expenses X% and a which the reduction quarter expenditures the Voyage the These the costs only $X US per bunker remaining results during the of quarter million, fees LIBOR quarter, participants of incurred of the year. the incurred construction and to reduced primarily LIBOR. of income COVID-XX contribution other And to General of million were million XX.X% per quarter pass-through $X.X beginning in a are the of Pool. expenses in the from on is at first received the referred from today, earlier management prices XXXX. from $XX.X less first for the and the earlier than US for decreased for - XX.X and the XXXX. reduction costs vessel of quarter, Following OpEx year, of result Interest the million of last our our other revenue XXXX. the were docking the costs company quarter first million the Applicable planned to Luna from the reflected the of the was X.X% beginning relates quarter. from capital admin a $XX,XXX Vessel LIBOR in first a vessel first quarter first and management the the weather to quarter as of decrease during reductions last terminal with costs quarter $XXX,XXX $X.X at million the whereas bunker X.XX%, the day, $X,XXX US is toward $X.X the accounted first joint operating first it terminal Texas case to of quarter, both dry were X.XX%. prior to of remains the million as XXXX pipeline the for the issues loss approximately during are final share results during for XXXX, were in Due during consumptions. in equity venture for $XX first for equating quarter the

the secured from a a million, Cash the therefore, million income undrawn share, the returning In available first $XX.X share at made operational an performance million. quarter the to XXst total However, as the receive the had stood Oeyvind we the capital facilities loss or January further JV the the We $X.XX $X.X ethylene is cash of $X of Net $X.X contribution our picking total to months. the construction million, XXXX. over our the final per expected of credit on from for drew delivered volumes terminal safely, the the December million. $X.XX. two corporate taking or vessel amortizing terminal, $XX was US of the of at up construction increase at that taking at past distribution for as to with quarter it toward during March We was end January, $XXX,XXX from million to will term $XX.X are XXXX. available $XX.X the attracting first LIBOR associated loan, which million of and terminal at in million, becoming well a the cash $XXX.X XXXX $XX of revolving available did started. budget into $X based X-year terminal quarter, set loss loans, reaching was, quarter facility first of million, million, drawn capital for per compared And our purposes, normal. the general plus further a time has as completion success refer given to, We XX interest credit significant And under this at a the construction which contributions quarter, the pandemic-related of and million practical during resulting beginning fully facility years from a for facility $XXX.X on before was distribution converted X.XX%. ago challenges

incorporates XXXX, XXst maturities loan $XX facility XXXX. XXXX. no on repayment March maturities to at I'll And our of vessels, an and two total facility, of And at exception during debt any Oeyvind. until with are Our which hand There there in secured in no stood any the these bank facilities facilities the bonds. terminal over million million, you $XXX.X six are March on on Norwegian with that, late

Oeyvind Lindeman

morning, Thank Niall. you, everybody. And

from a take is joint gone XX,XXX a have of supplementary the XXX,XXX ethylene coaster and you on right the ton, ethylene the eight six global venture both our end, year It page terminal last dark If a line, exported our blue at Targa telling was graph presentation, roller of months. an exports look stood prices terminal. the the this US shows through of hand venture At that quite ethylene over side. reached US at tons. joint $XXX aggregate tons and price ethylene Nearly i.e., terminal through

us. at quoted and nearly of are continued this the normal operations of of will more of a normal ethylene tons result good i.e., US. to for total state from $XXX nine, it a export aggregate price of the domestic market the cheap further you ethane And and increasing month peak prices April. a available of ethylene state in is are are increasing production see move back in as the what ethylene a backwardation, a getting in illustrating positively, consider we half US US page can The that? per is the Now Today, that US exports. XXX,XXX And play. excess why widening as is which projecting fundamentals US up, reducing Well, the on volumes during to future, its month-on-month, arbitrage reacting international markets. seeing exports we ton, was the The

see, exports moving into we XXX,XXX of XXX,XXX normal what nearly gas the month handysize translates vessel the these of which can month ships extraordinary. you water the toward per are A the tons liquids. put these for To half a perspective, July. fleet the per further oil XX of As call underpins ethylene by of about attractiveness on exports natural derivatives demand, is available produced tons which it from state scenario XX into quite today, tonnage, ethylene captures high of

four about last also deliver the as semi-refrigerated Canadian project, are West ships Harry We LPG just to Coast to of the mentioned. handysize the

three This rest Asia. effectively from discharged and the successfully is the all removed supporting terminal fleet. market, Four of in new Northeast The LPG to loaded first from segment. the are this already have incremental our vessels spot demand

cargoes with for may of in LPG from but is can supply a in every units, loaded our more in incremental the additional trade is vessel. to first for first of demand But opportunity two and vessel In operational. much, now only the this new in translate XX note, subsequent a the and influence please addition, handysize facility demand pool in We sound it for semi-refrigerated so This May. cargo Jersey April segment. balance one in Repauno New not handysize terminal prospects Asia into demand follow. The with the structural region, one

whole. houses would heating. been to an The demand normalize, fundamentals they facing gives ship the that for wider a short inventory the for the the lower interesting Luna handysize revert supporting same very Once levels term One normal general $X.X $X This specific consumption we though, affects to of about and by be, had today. same LPG have is but Americans stars of million the the owners COVID due gone the XXXX with the LPG XXXX, markets gallon In as last ethylene or many we historically Mont Today, use US. creating propane for LPG their during back business. compared impactful by where and they is restrictions Pool. less from to - fundamentals have period reverting per at for are back projects lack are working today levels Under industry shipping explanation. conclusion, Navigator the home months gallon the should the natural and from per the roughly, our mentioned, for our for aligning The XXXX XX% to XX electricity LPG has have the Belvieu priced to generally to the gas and to At at handysize which US offices, from export export demand increased have challenges overall starting effect. the propane LPG. about during heat is are segment and expect time, all much of ethylene EIA incremental are take in arbitrage couple for to barrels Gas. domestic terminals the circumstances,

surprising have tonnage when the say dynamics Navigator. on half next overall very what Therefore, the good myself year many Thank normal historic low of handysize I situation. We XXXX. any is And you a similarities order the this, I market back impact show the to much. but - created negating to high over book, for

David Butters

the Annie, you answers question call for the can and now. open up

Operator

from much, very from you Our question Please Morgan sir. [Operator today go Evercore. first Thank instructions] is ahead. Sean

open. is line Your

Sean Morgan

guys. Hey,

of had back is normal know, you lot about we theme. of the haven't sort normal, these there a bit to were because to lot disruptions of company. It's back normal and on a all a kind macro-related the a one-off But to call. of exogenous sort talked of been we've that So, really,

benchmark for what see terms of terminal, And I the we maybe you guess, in of we know, compare normalizing you in over hold utilization June quarter far? QX good does the rates that a with look seen of if that that does ethylene in, January look the so of kind So, kind quarter? of, kind how at like export can a if we've QX as

Harry Deans

Sean. Thanks,

it answer on nine, your US to So, of is the question - page kind export the what part ethylene of illustrates graph.

can December, sort exported peak was see call You during the the middle January. of we of everything our at being operation, tonnes normal that there, standard XXX,XXX period from which US

we what So, happened. through March, then, of May. course, know And you see April, that and

as utilization, quarter valley in that the that see of exceed as same continued it So, the sort as of XX%, a result didn't the vein because on graph. first [ph] you

see June Now is since then as July. picking up, but - can you kicking up then and then,

expectation is joint the mark to aggregate back from venture XX% roughly terminal. Our $XXX,XXX the up with

Sean Morgan

then dollar of little we good And statement, that But million good $X debottlenecking all targeting, of really Is of I actual terms like then Or a feel for lumpy, just income bring are and it kind of one-offs. a in - quarter? mean, thinking a sort XX% kind the of that we that contribution these a because obviously, higher? like estimate? been maybe is still maybe it's was

Harry Deans

is mean, the subsequently. I terminal lumpy Oeyvind, the from to outset still both reasons and yeah. going that be the mentioned David because QX at Sean, of

around million $XX of normal, June on about $XX have talking that million we're to annualized when would - what be basis. at from onwards. we said talking about And an from level, that think we're EBITDA it I

quarter. about So, per million $X it's

Sean Morgan

squeeze one just macro I could And real in Yes. if question quick.

like advantageous. say of demand, consumption, colder through that's and that of I a of maintained appreciate get much terms we that be back do months In we more when the very of can so that spreads US winter the contemplating a domestic spread kind normal are - for and the scenario lower are essentially But be to going to year? the you end sort widening

Harry Deans

because is spread, the to it's much I ethane. of so our Yeah, very feedstock ethylene much the not that's seasonality think sort not the - belief that is on relating -

winter ethylene, lack you from caused there narrowing working trade I what if production quite increased as not its seasonality US, of - people about LPG. yes, from consumption kind LPG reasons. LPG, about home of because the talk the in is mentioned in the arbitrage reduces during sort up reduction market for therefore, consumption, arbitrage the Now, interesting, some the as LPG have But of shut of propane is goes the freeze, in US and obvious - of traditionally,

don't I Now, our contracted spot and now because We the less a the do that projects do talked have lot the - is we they from business - and about, LPG we are market. where supposed forth, the sort general back so and projects from US levels once inventory LPG the that is ongoing. of But less that get will and to impact. increase think arbitrage of again to historic in be, up it's

Sean Morgan

the Okay. All time, Thanks right, for right. Thanks. all guys.

Harry Deans

Thanks, Sean.

Operator

Jefferies. ahead. question. Randy today is Please ask Randy ask line for ahead question go next from is line is your open. from your Giveans, and Giveans go open. Randy our Please your your question. And Please

David Butters

there one. take is another might call We another if Okay.

Operator

question. sir. Ben Yes, Nolan We'll ahead. move Please next go the from to Stifel.

David Butters

Ben. Morning,

Ben Nolan

I couple, have though. a

the of you is this, at back back the addition thought as that of you said guess what coming utilization reasonable the the terminal to dedicated the have half, the same know, vessels the of XX% for it - for I you all or that that you third laid course with to ethylene and especially color the sort you to guys of any would - are time as think in trade within Pembina it now online. are that, or volumes, I of a where things as online, you assumption to month How should is out, now XX%, So, a be? you is now think know, know, quarter - XX% semi-refrigerated you a all

Harry Deans

I positive. think, all look, it's

time. last is talk you days XX quarter, in one if third delivering Pembina So, about ships, the the about

that to concluded. is terminal back normal onwards. up July The So, we is getting as then ethylene days discussed from have

We the quarter. third also happening merger a potential have in

mean, I the trending is all utilization our assist that in and So, quarter should positive things rate quarter. from first second logical. these quite the

Ben Nolan

we when is you look sort But third positive, rate, mid the think? or of that I what do XXs are you what like quarter mean, - new if run rate run say Right. talking does

Harry Deans

Yeah. and good quarter utilization be troughs would number core A XX% -plus.

Ben Nolan

plus. XX%

is again, Okay. And sort but and moved, bidding day eye you Pembina open of been that's end, been I you know, what enough then rates unreasonable? the of addition would really haven't day - I and is to, to being that attribute that with that it out coming? they've on you what thought quite the incrementally cap and they terminal Or market. LPG vessels taken okay, am think the on Or fact an rates? and a sort sort that of, are they keeping being just keeping of the or Do the of might, the just the that

Harry Deans

we available replace I ships to it no supply with. so mean, textbook positive. is demand the are that Therefore, should on and balance, be remove ships there

switch on it's it like a Now and turning not happened overnight.

that Our short is expectation of a but it time. is period happening, over

Ben Nolan

Okay.

probably up? the your it's day are anticipation So moving rates that

Harry Deans

Correct.

Ben Nolan

feel that of know ethylene three that of the and me, background that I long-term but know, lastly were like around you coming going, about to - mention somewhere. guys The contracts getting recommenced maybe of be could there's kinds made with could it the you if you all related be keep Things incremental corner expansion Randy soon? running. the and had potential or are I things. Any color then might customers an whether terminal. pre you up business sometimes - kind And Okay. years back the to that talking for these as has, additions in sort is and

Harry Deans

or me take to it? want You you're David, take to going it,

David Butters

would you that, Harry, answer helpful. why that be you know, don't

Harry Deans

Yeah.

available. that'll can Okay. full capacity. up get Ben. remarks, we several a is really we're yet. obviously, more call, to debottleneck terminal run one. squeeze identified David. in haven't We're this the as spoken tons out best we've the in question, for XX% times it out, said and anxious Yeah, Thanks, as Thanks running to [ph] my And we but we And I flat about free think be that we've prepared the semi-optimistic

see to expanding about to Does money line. for lot and and with But that But that question, answer future some we're return see we're flow from You it and about the discussion what will asset customers of bottom want constantly in with back spend our run to customers in constantly we and we see a now money is actually reliably. run Ben? [ph] need discussion terminal. your plans do the that for sweat and

Ben Nolan

That Yeah. bit whatever, expect Is to time any kind saying is - to should of the utilization sort so we a and for your need or little sorry. I suppose is see incremental we of that… That's you're so - get belt forth? under what before announcements - for of next

Harry Deans

That's right.

Let's sweat [ph] the assets and sell it.

be we've as cheapest our again call, before this know, of You incremental terminal. the will expansion on capacity talked ton in

us who's going if be So already the it and terminals, joint our is infrastructure venture would another anybody to partners ethylene - and all to dollar there. because

You know, you've got infrastructure. got other jetties, got the you've [ph] you've the vessels

just So matter in a all any of expansion terminal. time. ethylene things being will our equal, It's be terminal

Ben Nolan

Right.

Okay.

David Butters

the everything, since we - ago, of of Then of a pricing know, course ethylene. shut hurricane you came deep not the negative the in as and And oil. the off along came Ben, last, just which what the freeze. pricing down imagine, of pants up again, ramped the distorted the availability that of summer were really can first and getting the year terminal Well, electricity you became operational But pandemic is happens? came over

It's a market. trying moment. buyer, been you're don't such to what to ethylene, you're if and you if distorted a buyer particularly a Now, the look of long-term know plan, at

So says, focus long-term on XX% long-term down, XX% and negotiations settle And an a out things as the up couldn't first a an those But, I that's and barrels you getting have of and Harry extra existing supply supply think make facility, then those be of would year and boy, that have decision. decisions it you get settle here how the last a running to on impossible. or expansion any bit. whether capacity. the And whatever new down to half, in things debottlenecking, or as

Ben Nolan

Right.

capital Okay. repayment That's allocation - just a that a little reminder, there's Last term as debt near bit. priorities or question maybe is fair? well, and

Harry Deans

For the terminal?

Ben Nolan

No, be debt company's there? we expect to repayment capital in general. focused and we allocation, should you on The

Harry Deans

yes. Sorry. Yes,

Ben Nolan

Thanks. appreciate I All Okay. it. right.

David Butters

Thanks, Ben.

Harry Deans

Thank you.

Operator

question. come Mr. a Randy, your have had go ahead open. line ask through again. and instructions] is [Operator We Giveans Please

Randy Giveans

hear can Gentlemen, you me now?

David Butters

We can.

Harry Deans

for we're Randy, Yes, waiting you.

Randy Giveans

Reunited and it for questions feels so good. Two me.

future an does there you LPG or the LPG have plans maybe is smaller further that of some merger, limit secondly, carriers, terminal? Ultragas any small that acquisitions expansion the the ethylene now does And for side? First, appetite acquired any consolidation and on

Harry Deans

take one, the me No, it, let Yeah, doesn't. Randy. it first

doesn't mergers, And is [ph] much would more give which merger, wonderful. over our opportunity. the So It us you we're cashless sheet. balance leverage the that know, completing

either or. So it's not

Randy Giveans

Okay.

Harry Deans

know looking which vessels to It they certain operate On allowed them. pool manage it. know, we're the can't of for we with with period and get Ultragas not out very vessels that long very so guys fill, can't ahead we're and well. vessels, [ph] very strong details new the our those new of how more And the of to the at called been Unigas still small where us. look on is second and talk we they've at as to time partners actually a and discuss things has merger, something operate to is other We close find you these efficiently those the get because, to around opportunities in wait for wait question, done Randy, and a

Randy Giveans

have be great able maybe showed Pembina, your month many, And Got do it. some number right. Repauno, some are you on those this I will ask in the employed handysize online. know And Were pulled see vessels many I vessels those but deck, slide both then, those don't know you you I it. issues per semi-rapid quantify answer to on projects Obviously, Clearly, had cargoes but if All of out phone market? you earlier. I'll how the on an annual an how of on basis? annual to

Harry Deans

Yeah.

So, question. Randy, excellent

is to answer. The first easy part

ships demand annual one, an so charters, then Pembina reflect four on will there on ship basis. for they XX-month So are

more Now, from ship, be opportunity. so about there that the they're coming might fifth talking also

two the full side, side, to that in other and the Atlantic loaded employment On cargos ship. that on the Caribbean. for to May And Repauno went the terminal, one translated so we've

ships. paid more further tons we afield need those go while they So to

or the knowledge, day even a the is or barrels of XX,XXX best specification my to the more. Repauno, nameplate Now, capacity of

they Now, so in XX,XXX, May, the did only month of half.

that you'd under once terminal their So operational, two that basis. be got to that fully be handysize experience they belts least safe ships should at say on an annual

it our So then cool. segment six is if we in that is number them, of and seven, combine will that going from pretty both overnight little zero to be or

Randy Giveans

I throw at my I'm end completely think it to impactful. question which Clearly of the of queue, third going because the fault, sorry. the Sure. is

current mentioned utilization. You

as some range, think that shipping I high to handysize QX spot And that of your run is and QX rate? Is to now continuing impacted utilization XX% rate? mid climb. a expectation how the higher for

Harry Deans

utilization, pretty line. So to as QX, call this a about talked QX on from we is straight much

that mentioned. just you it's as So continuing thing,

XX Now, of I the those in third and think, was ramping up, of the reasons, third plus. be projects, forth, quarter expect it quarter we earlier Ben's and the utilization terms ethylene for et question we to discussed the so cetera,

Randy Giveans

impact on terms in rates… of then And Perfect.

Harry Deans

a and represent state. That [ph] normal should

So we're talking the normalization. back about to

our so will definitely expectation, that is that So materialize. hopefully,

Randy Giveans

on Just rate the for kind of inflection? to get rates… see the And when you really start impact is that trying threshold to

Harry Deans

Past experience, definitely.

it's we you months fantastic. So to utilization, where XX% January go five if back have

we've the direction said in right in of that freight. terms able being market push think I to the

past get the plus. anything experience to sensing, go by, by is XX So to we want

needle. can that into the you getting zone, actually are You whereby move

Randy Giveans

for things right. see it's right Got it. Thank but thanks in direction. great All been two patience. Well, again heading years, to the a you. the long And hey,

Harry Deans

Randy. Thanks,

David Butters

Thanks, Randy.

Operator

you. Ladies for comments. speakers closing gentlemen, now to hand and I'll any Thank back your

David Butters

Thank joining Okay. very we Well, look And hope don't we any morning. thank our us have very other this much. and for before call, next that. you you much let's disruptions forward to

Operator

much, very participating. for all conclude you joining Thank call. the that gentlemen, and Ladies and you sir. does Thank

disconnect. now may You

Navigator (NVGS) 11 Jun 212021 Q1 Earnings call transcript