NVGS - Earnings call transcript Q2 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by, ladies and gentlemen and welcome to the Navigator Holdings Conference Call on the Second 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

Good Navigator conference quarter the welcome second Good morning, earnings morning, Laney. and to everyone, call. XXXX

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

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

Appen hand I the many the to the these From enthusiasm have demonstrated to call. first, and transactions same personally XX We two importance is several and skills continue Navigator’s and before our our stretches have just comments these and -- our Harry, you the employees Peter years. family, professional a a to to of goes brief I’ve LPG business crosses But need you owner ago Now, the we and like later stock. some would attest decades will our Pao decades, formally joining two seen, Ultragas have I enjoy Appen will by three welcome known of Navigator heard recently I has Mr. on people XX% former everything about weeks and owner team of want long new just and the two von von Sohmen-Pao. common of gentlemen and Navigator. over team say for the the a the to and Stokes who gentlemen and your joined talent. have now in trust Board you professional I these own are possess have environment strong join represent And the also work excites ultimate Ultragas Andreas vessels. entity, can off two XX% high-quality that welcome of the many and from -- when It’s directors. I observations. rest of Dag call more us that about you acquisition back history closed Also continents. shipping that over of character. comes also judgment good fine I

that will Board. all is pillars beside many it Company. owning a it success. business think, confidence And for with are own, extraordinary significantly many, have special situation, two Navigator. now and shipping two an and very agreed us, on of We confident very storied It each is belief I Navigator its pleased I to observation companies in these contribute that am I that they success ongoing of the the with a companies, three entity an to two gentlemen Navigator the make And join the but of shows can real years, sign what do. could only great in can vision We’ve be had do XX% now a interest it it tremendous

in let three your on of over Harry, last to months. transpired the call team So pass rest these me and you over to the what us fill

Harry Deans

everyone and I well. to on David, good hope morning you, Thank you’re call. the

XXXX. quarter this our the best million. of achieved impacted hangover Further, however, freeze have of an with QX our $XX.X be profitable performance, seen this our fifth year translating As by has impacted today, in statement other southern to revenues since you income. EBITDA the income quarter and increased have is have Navigator operating with the from which combined continued the macroeconomic share to when $XX.X you succession And into had $X.XX. adjusted from have we the this per events Gas million, an the to earnings and start Despite

the QX in weather-related the in into the Gulf the market ‘XX reflects reduced U.S. by the cracker which exports the a market, reduced olefins caused on in and curtailment volatility production, substantially issues more Gulf. led from and Looking significantly Coast, a generally, well-documented region the of U.S. output U.S. drawdown to inventories

and exports, predicted domestic taken demand continued pipeline. with as favored business, and have production coupled replenish they into These and reliability some overall not to show currently Although patchy domestic as increased, knock-on rates therefore shipping This time risen handysize sign it, the cracker strong have and the have continued and ethylene with pricing quickly have had which impact rates. hiccups, a has headwinds QX production has no supply over abating. of just on our utilization production

partially backhaul have opportunities been offset which Gulf. building propylene the season producers U.S. over exports. returning have the hurricane and prioritized helped inventories us, upon five-year by have increase at they With vessels for lows Although exports the import inventory tailwinds, ethylene the still U.S. and to ethane U.S.

the bringing the As into pipeline demand dipped quarter strong and capacity begins the and XX.X%. have rates ending of with restarts to olefins as with were headwinds, a These and these replenished, domestic U.S. mid-XXs result be the QX pricing. at it overall domestic utilization continued the utilization period rates during to fleet impacted olefin

All export volatile. has extremely of and ethylene this which been volumes on puts pressure arbitrage, the

Europe, and substantive can the to is This brings handysize of scale and now and market, anticipated fleet U.S. that went as under reopens, normalize and supplemental Asia and Point through The way, as our to ton course, number pack, handysize markets in new X,XXX is modern and the terminals, to Asia which back X that it diminished on Although yet of which of and us required are bounce now we miles savings, volumes the allow into seen meter the the well rates. fleet to semi-ref track macro to on synergies, hiccup when the ethane a export olefin capitalize we’ve ethylene as arbitrage cubic clients XX in corresponding fleet tighten be balances XX,XXX in growth announced, in arbitrage will and business, Product remains diligence Pembina can transformative slide gas the significant be Ultragas power to our reach. a slides with two reduction larger stronger, incremental U.S. well. Morgan’s meters has us improve and combination business space, and Repauno, the vessels; business own short-term low which our with These level meter XX,XXX market engage buying previously further TCE pack. and carriers going are of in support will gases to the X businesses XX position reopening Ultragas’ offering provide is and vessels; more the and on of as we on exported integrate utilization JV the to service newbuild from cost vessels, ethylene our when structural of of with stream. vessels And fleet will a on X increase combination, on efficiencies throughout August, to materialize The provide capitalize journey. cubic increased growth and of combined the environment our supplemental moving customers. olefin a in XX in being lumpy business. our Navigator’s. created This Gas geographical will seen LPG improves. petrochemical export to Despite due solidifies diverse further increased flexibility combined supply, trading of Navigator required activity, which supply market the leader as our needed enhance much and all of extremely coverage cubic enhanced volumes, which XX the has will the

were very and Xth teams on commercial Our the exactly to terms in August pleased agreed transaction and of the are the LOI. complementary, same complete so the businesses on as we

Ultranav industry, our wealth by another and with of experience with addition, all intimated the shareholders, the as We major as knowledge. a will the three maritime Group benefit of who experience as BW In the introduced has Board, David. directors financial to bring combination as which maritime new investor well welcome longstanding them in the

the is of to anticipated accretive EBITDA standalone Navigator’s in EPS. transaction terms and budget As revenue, previously discussed,

Now from merger. the moving on

business remains core Our strong.

are bypassing along transit tons times Asia. and America demonstrating West the of and moved compelling. route why In directly to over from across moving is for Coast transit addition to of that product the Mitsui charters the so going between to we has need this once we Asia. pleased in has propane Canada the QX, increase again Already chosen Navigator four terminal announced, previously XX-month in customers in brand-new been of XXX,XXX North time capacity the Thus Panama the Pembina minimizing Pacific, trade

very the for tons remain world. underlying offset shutdowns, from has This In because a our supply-demand returns diverse number many of to margins propylene still between olefin ethane record costs pricing Coast, U.S. which the of are following In their have some product and produced addition, led fundamentals advantaged volumes the technical stoppages poor ensure facilities of of moved to pricing the be in has to this, suffering the volumes This normal, of U.S. lumpy, partially feedstock best and volume. bringing is will balances. priced and which and this export reduction in Production ethylene the outages. it when swung rapidly Asia. crackers helped U.S. and differentials numerous unplanned resumption unchanged. with Gulf continues the recent face to a balance the fleet on normalized export from ethane reliability generate has

expect underpin forward. we utilization stronger winter always, going to As rates volumes

fleet yes, forward right, XXX,XXX the profit deliveries at builds quarter X%, and the of XX ethylene unique also handysize book XX% as challenged with around to than XX% and Point more increased minimal market ramped with position exported Morgan’s it new ‘XX ‘XX. returned years the up outage. standing -- pipeline in now now is the Our tons following and order now in old. entire that’s remains our terminal QX Furthermore, for vessel JV

market. in transits. of the growing there’s really also with Canal, the up, vessel So, dry our prolonged and Panama transit COVID delaying pressure are increased no on scares in efficiencies vessel more And times dockings oversupply

QX, the medium-term in on the for expect should in with to general a as in are export maintain market TCE and Hook our summarize, now in completed we the Therefore, the no and MEXX right on rates positive volumes that three upward XX% To pointing trends firm factors macro there pressure up, are all lot of that and direction. the ramping at rates. months. handysize outlook scheduled we surprise short next start-up now incremental terminals running U.S. Marcus With few MEII and exert

space. our and created this strengthened have clear We merger business leader Ultragas with market our through the in

the This synergies, resolved. many with scale our is unparalleled capture ethylene business with deliver will efficient. our to infrastructure flexibility uniquely vessels, more merger XX business and are the will and we supply This the position coupled fleet, our the of to together our enviable will ensure are new and expect market diversity when placed We make safer our our issues well-poised opportunities. that seize upside we short-term market investment, and

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

Niall Nolan

Harry, generated for income second everybody. $X of year. the a last $XXX,XXX Thanks, good quarter and second to morning, the We quarter million of XXXX for of compared net

year, the of XXX,XXX But vessels to generated was quarter, XX.X% the Pool, operating or an thus the million increased revenue quarter taking profit result revenue increase pool market’s of per operating day a quarter. the per relating the which was XXXX million completed a last compared this XXXX, last $XX.X million. day. the least Harry exchange dock. or of or quarter’s day X% second ago. charter was of for mentioned. and from an for be million. QX $XX.X million, was XXXX, losses increase during QX to $XX.X two Adjusted second quarter, were but any to $XX,XXX however, planned their last result Voyage $XX.X year ships to the during COVID global quarter vessels increase the are COVID. $XX,XXX remained first are was scheduled were restricted dry The rose as of to approximately of from second Harry EBITDA and this this of participants’ of were result of Vessel $X,XXX six million, challenge, quarter than XXXX, the second last million, dry during months. respect This the year second quarter $XX.X second The course last pass-through second $XX.X second next the from or vessel year. And our Total our participants around revenue XXX X dockings, as the capital to expenses arose of last equating the a of $XXX,XXX the prohibited to quarter, Although that $X.X remaining at the is increase part to to day EBITDA operations million million during in to docked during during and year-on-year quarter not tons the of at bunkers vessel charter rates the $X.X as $X pool when similar also average rates million ethylene month from revenue in expenditures increased X $XX,XXX Company fuel quarter revenue X over X vessels to aggregate as effects reaction which the the quarter, revenue. only first XX terminal to day the as per represents an large for QX of revenues costs cost during per dry from per the per a last year second represents charter our the share $X,XXX voyage million increased the Utilization, quarter, the a as was during foreign quarter were $X.X Vessel for operating achieved year, initial approximately rates last does day from the following during resulting from going of be and average year’s and made reversal $XXX,XXX of operating Luna this a in $XX.X month reflected of million QX of to of mentioned, other of XXXX. XX price in by first expenses XX.X% QX a in $X.X per for scheduled surveys the average days, during of a or from undertaken reducing per for quarter, total the were expenses the respectively. revenues, dock XX.X% were number compared vessels. quarter the These in for This from the $XX.X a quarter share the pool. into estimated a X of XXXX, year. whereas from With the second for quarter voyage primarily In to million of for of $X,XXX cash million increase the cost dry XXXX. Other year. the $X.X dockings expenses per during the dockings dry compared have last months outlay expenses operating total, from other vessels

which effects -- being quarter year, COVID, from as year. in year. costs second this and primarily last some of operating a a the deferred $X.X quarter, the it is were the has this result increase vessel is an is increase during last the resulted this of million to although administrative significant $X.X million on of expenses increase which for Although an General

the of first year. incurred I quarter with as the second first costs this of of year. However, G&A of million reduced last year largely from reversal the foreign costs quarter’s result $X.X admin consistent of during quarter a mentioned just general that gains this the And last were were those and the exchange of

quarter the of of a results the our last received based of or management the mentioned remains the the relates to reductions share quarter, $X.X first were today Applicable million earlier. as of And $XXX,XXX million second U.S. from Export other primarily income were result $XX.X gain U.S. interest Luna LIBOR. $X year, at And The months from Terminal X.XX%. XXX,XXX -- participants the for for in Marine second the than the million, tons fees Pool. for a for for quarter other costs same management the LIBOR approximately six on low $XX,XXX the less ethylene quarter of

for $X.X had of for of the covenant of $XX.X was addition, Company $X.X the The In June $XX.X from the at million, cash million depreciation liquidity terminal the EBITDA an terminal. minimum quarter million. XXth giving million against

In $XXX addition, million. we revolving loans, available cash further from a to associated had $XX.X with credit our vessel undrawn total million available taking facilities secured

which are debt and this during terminal bonds. remainder incorporates bank stood Our at associated there loan credit XXth an amount, and by the Norwegian of vessels, XXXX. with of this year, million maturities secured million, total aggregate no Of $XXX.X debt two our during June a the six $XX repayable only facility facilities loan at

third the the with details balance the supplementary to effective sheet in For that, results effect from information our with Oeyvind. I’ll Ultragas are included of and August forma on hand over of the website. incorporating be we quarter, And pack Xst, will the you Pro date transaction.

Oeyvind Lindeman

the and per the East a low $X.XX saw we Texas price at Operationally, by Thank freeze ‘XX in European Texas we the a to as of of likely callers. before volatility pricing characterized the due both, of you, turn freeze Niall, to U.S. good ethylene per April. during second shores. of quarter shift Far February to the offtakers the of morning well from lasting has short-term peak first, been commodity then to gallon the gallon height all the If as impact $X.XX of seeing

the period. expect, this in further dynamics which previously market increased during there inventories ethylene on increasing during unique created can you itself has period focus and As wasn’t, volatility this

delay rallied per increasing shutdowns cracker. new plants scheduled more gallon, some at three a a has recent the Looking of start-up to ethylene prices, combined $X.XX of with following in lows, since from U.S.

in the ethylene. previously a ethylene as tons ethane price corrections slower which gallon barrel drop, price, last five XX,XXX is basis. pricing good. Despite the are ethane first this, to Monday the for to week volatility, per the current tons the the days on the of quarter. is piece adjusted states, second of of $X.XX from above international remains quite than increased the global one $XX ethylene quarter competitive further substantial and by per supports U.S. is benchmarks Nova demand a a And exports of XXX,XXX oil per However, estimated. gallon $X.XX which U.S. Further, total we later, in which compared a Despite to

Our is thumb rule nameplate about Navigator proportion, per of XX% Enterprise of Terminal and capacity a XXX,XXX tons Export Targa month Terminal. XX%

are And influenced earnings of so that also amount are we, destination. upside. final a unrealized the by lot of physical our exported, ethylene influenced therefore, it the see by is Whilst tons being

continued XXXX exported during loaded can voyages. open during the trading same June. about different quarter offtakers European to which earnings handysize we cargoes with XXXX back first carriers arbitrage the of And Transfer, of the during quarter, and quarter. we be our Pacific in from more ethane a offtakers. seen is days ethane increased the terminal ethylene XX% export volumes XX,XXX ethane employment quarters of to Pool When from of Hook the Energy help proportion amount ethane set spot seek Luna Further, ethylene important an pack. in reverses earnings remains state, first of viable, to opportunity across During ethane. record fleet of petrochemical were actively volatile we our volumes Most volume three XX this month less across the increasingly days. XX% we the to exports petrochemical of quarter a -- are export shipped the for are opportunities market. our East to Europe to Nederland, in tons in to coming Marcus compared Far trades. way have ethylene of part of estimate our on Texas. capacity, One as we resulting in Houston. record of the page price normal Until ethylene headed additional Year-to-date, other the U.S. It the new and the however, have the to Orbit for the second and Most from total, becoming In with the ‘XX, important shorter lies

all at have also markets. We handysized terminal ethane, time this of three mediumsized time having the terminals the four load inaugural ethane of carriers chartered, our is during mediumsized ethane connecting operations American with and international gas the pleasure It April. are both the first whereby export

with During number Navigator to days to to year the arbitrage from full period, the the east now expanded seven additional is to mile into months semi-refrigerated of already ton propylene year, XXXX. we saw west The additional next our for demand earnings first demand propylene continue exceeding compared predicted in providing fleet.

the Despite has inventories And adjusted the all the with from trend Historic to the have segments Finally, U.S. assessment the the to high we global U.S. export, ethylene, despite based LPG to to LPG winter, next build This the month this, helping high per over has per charter month are prices moving looking movement. months. during reduced across should month midsize stabilize from is LPG few per demand end at the a going quarter. the for trades. at time semi-refrigerated to $XXX,XXX the up export we not increase $XXX,XXX general similar $XXX,XXX dampened handysize of with and trade, for somewhat seen its $XXX,XXX turn resulted on needs believe price in in items. quarter, per combined and production. eight month segment The sideways be gas which

First, the order book.

it a low is segment, order for positive book shipping always any in continued historically our segment. is As which mentioned, Harry

latest which set its continue. EIA, highest Second, of to production to figures, is the liquids. recorded gas U.S. natural According the level U.S. in

to Fourth new from our ethane to back ethane America is with ethylene ethylene. adding revert for forecast ethane. already Nederland, to opportunity Third, is opportunity Asia. Texas, involvement export pricing North The trade. territory arbitrage increasing to

to and and East the program marketed XXXX we the set change. compared is is record from export but to is set from volumes Propylene, And East the is Coast, rise five volume handysize including level for the for LPG we last from Marcus However, first to both expected from the half propylene whilst the Europe. West years, wait, continue. is to And lowest inventory on us Ultragas and additional from Rupert forget platform Canadian addition, heading for enter customers better towards And Prince fleet in fleet let’s ammonia. Coast not but enable Pacific handysize one Repauno, the terminal. now under umbrella, vessel optimize improving Navigator to are Hook our and to the one export have Consolidation, lastly, service our planning. our

doubled from this our We charter of ammonia at have four totaling month, to the end We time at year coverage carried of the two recorded amount tons. beginning XXX,XXX vessels highest vessels quarter. ammonia of last the

We our Thank would role to a it forward. concludes the hand operational going you. expect like prominent I more to back to ammonia segments, This coverage and Butters. take David contract to

David Butters

think I now, appropriate. that’s if take can we questions

Operator

Thank you. first [Operator Instructions] And we will question. now take go our ahead. Please

is line open. now Your

Sean Morgan

from This guys. Evercore. is Sean Morgan Hi,

of nameplate you think guys and you did the is -- I tons the X be supposed base I about $XXX,XXX about million per kind annum. with throughput, regarding capacity said think, terminal So, to

of noise the Sorry, here. I street little bit on a have a

call? a I slower arb due this kind lack due operational to difference guess, do that in I guess, to be done was base second of to demand kind on XXX,XXX what of able that was relative you or quarter, of versus limitation, was the the So, nameplate that discussed between the was -- during -- the or the to -- the you should tons

Oeyvind Lindeman

pricing relating of the U.S.-produced ethylene. not It was it operational. Sean, to was

on, the Harry too producers So, exporting. sell it reasons into sense made the more compared detail that high, the to price to so the went in for was some U.S.

the to reason and and all production and the units. do the -- that -- freeze with was the why havocs because core of the all had -- that caused that Now, Texas

So, with the that level itself. had than rather But, a domestic production, quarter. inventory lingering to U.S. low effect it’s terminal do into second all

Sean Morgan

Okay.

bit a So, an a quarter you that gotten the now, still, terms terminal I -- seeing with of run of of you kind to exports? on are for XQ, improvement? guess, the or QX Is to issue half the going of close that is books rate in be little have currently demand problem the

Oeyvind Lindeman

throughput August as continuing same the in was quarter unscheduled the low vein of various outages it’s themselves. for Yes, plants. the second because

a there X there’s a in of particular, So, plants new was one. and delay

mentioned, $XX Nova one as last ethylene week Monday Friday, to just in from in U.S. from price the However, I to $XX week. the went

happening. is clearly, So something

market the state. is trying back to get normal to So,

of building the consumers inventory are to building hedge and -- of up season. themselves Now, ethylene some paying just hurricane for

So, crossed the several But, dynamics so the U.S. fingers not is -- that happening. there’s happening moment. at in

So, the wants come down. pricing to

However, causing with look we September, that max higher expectation levels than is like. low, this our the volatility. customers but But, we not inventory are now as how near so the August, and would forth is capacity

Harry Deans

And it’s here. Sean, Harry

terminal, the So, contracts remember have terminal. you if we the take-or-pay in

is a per effect of have for the capacity. the as So, there deficiency that if to use bit to the the contracted still they lag but don’t contracted our pay, a partners parties capacity decide not to put on they the But, have volume payments down contract. that, terminal, the will pay the

balancing a of Sean. profitability, terminal bit mechanism a on is there the as So, well

Sean Morgan

in contracts take-or-pay quarter. last those effect also But, Okay. were

guess, probably I I to expectations should gauge and not terribly QX guess... So, optimistic on, similar we our

Harry Deans

that don’t taking Yes. off too far I assumption, think Sean. you by are

Operator

Thank you.

will now go We our Please ahead. take next question.

Your line is now open.

Randy Giveans

Gentlemen, it’s questions. Randy couple Giveans Jefferies. from A of

still is on utilization that in fleet that You be guidance last what currently? And expected plus this XQ for utilization is ‘XX. mentioned XX% Is to the quarter? the call

Oeyvind Lindeman

the moving the volume we terminal that is as So, from due terminal is the similar that ethylene Asia, opposed quarter, going itself. from utilization second is to discussed mid-XXs, is that to sideways, A, Europe to reasons less to moving and there

is feature that has impacted of things. one that So, side ethylene

we’ve -- the of it but the loss been ethylene mile been ton of demand. hasn’t has instead, some carrying of outweighed slack However, pivoting the some ethane

Randy Giveans

expected even and for will can number throughput income quarter, net Okay. there, quarter? looking JV of kind in what the up the guess, for XQ? what are quarter third be your second you give And did I we this for for guidance following you at know the third $XXX,XXX for I

Harry Deans

to the we regards terminal, I were Yes. the to for we’re in as same Harry be here. of going With QX. Randy, it’s ballpark sort think

Randy Giveans

Ultragas last All Okay. just the And looking then, question, right. at merger.

So, smaller of segment. than considered acquired, be XX focused of handysize it the XX your kind noncore vessels or could certainly

So, do vessels acquiring of any additional vessels, you smaller buying XX,XXX to operate X,XXX the seem if CBM or to for other on want those to scale another your vessels, those be gaining peers operate by LPG Some look the further small market to will it you hand, smaller sell? in in interest to operator? want you from

Harry Deans

are which through again. vessels in that The leaders is of established the and it’s smaller sphere. well Hi here one market Ultragas Randy, operated Harry the pool,

for fact, almost things I seen In something. we’ve long XX as as which still years, is over saying have, various

in to they’re Bernhard So, are cubic We’ve gas as pretty great up got well. partners well. that those pool, owner Neptun that meters. Schulte. It we part and specialists Sloman working of in operate two seems XX,XXX only be actually we’re an carriers to And smaller not

it’s Company. to So, in the to optimize maximize our the back of interest the pool that dividend efficiencies and to

jumping lots with with weren’t allowed information the Ultragas the because opposite recall, vessels, we competition too in of with for and get strategy the our those I hot commercial because we’re early -- continue to continue evaluate to sensitive think Otherwise, We’ll of to vessels. authorities. water And Randy, pool. the those accused it’s merger. you we’d also, terms We’ll if options In competitors, be prior gun say. ourselves exchange to of

we that with two sure, But, thing have thing the with market we once had that importantly that make there to good the to is wrong. as only the the customers. said, first customers get and really hard we merger, one very day more is that the weeks kept made voice we worked went did look. did one Oeyvind actually a to in were team had the and one nothing We the sure but on on, commercial team. all lights really face And one serviced So,

extremely merger the well. So, is going

people, well. great said, As got assets, David processes, we’ve great great IT as great

we the get between those across company to the where boost optimize can and We’re synergies efficiencies companies. sharing looking we forward two where seeing and can and

Operator

Thank you.

next We take ahead. go will our Please question.

Your line is now open.

Ben Nolan

guys. Hey

couple. a have I So,

number going the of those on a be I had a or number fleet vessels, through check was the just list, and been there I contracts of where as First, I contracts was vessels, on to may stand. remember still going

there the the up contracts believe the ethane curious vessels. And curious how those about Also, pool or for to option there is or for stand. goes Sibur where to a number was on an ethylene be that was renewed, think if that if still exists. there that. of just And COAs those contract, I -- are to also, curious Braskem Specifically, then

on color any So, those?

Oeyvind Lindeman

Ben. question, Good Yes.

So, in the ethylene they the talk if Pool. about you fall contract, Luna under

in are performing the Pool, that Pool, entity commercially ships the Luna we for goes to Luna manage. the all that that which So

continue. ethylene the So, remains years, for of number contracts, great, Marubeni there particularly will with and that is which a

of the covered it’s regarding in XX LPG So think questions asked page you on in so the document. I terms Sibur, -- they

they run So, until XXXX XXXX. and

been still since there being, renewal, They program the it’s too So, the Sea to in they’ve time discuss trading and are delivery. them and early extensions North forth. so for for

in the on interest renewed the strong in interest, market. U.S. not renewed is of third terminal the of spot This a there ethane, ethane of particularly ethane contracts, because opening terms ethane projects, is In

in is So, one and running particular U.S. on a the spot Braskem between Mexico. basis

is that that So trade.

So, on the the the uptick that gone for is about. that had towards no off we has position sorry. reserving remaining it’s end charters, market have of been time that maintained in charters note, There’s have We the about our talking we XX% of year a time situation. of -- worth dynamic which coverage

answers whether question. that on know take are So, to we ready action I don’t your that.

Ben Nolan

fleet And well, on impacts from it sorts second Is this up that into weather utilization. guys thinking putting might had XX% maybe been? than higher you have sort of thing percentage greater have all and have the about any a leads just or that time wherever, all things being of about ensure the cropped seeing kind has can of utilization No, contracts does. that it sort one, of it of on your there charter stay utilization, to

Oeyvind Lindeman

whether LPG when also the talking we’re a that to platform time to now on side. service affreightment. across out desk. that particularly the opportunity clients every trying them, what to charter But clients, we of evaluate for We comes a is And contract best much figure contract have on, type out larger is the

order I for direct it time in of way affreightment? evaluated, So is it continuation? contracts spot? fleet position uptick. Is are in the a the sort contract all right that to in Is it said those and charter? a it of Is So, items are the

something about which there about And something of is for some implication trade-off good a Navigator. think we versus -- what It’s is it’s rate a what has it’s a we coverage, utilization, So, question. should every day lot. about think optimal sure, for the coverage

Ben Nolan

and it Okay. me, turn lastly And I’ll then, for over.

X% XX the being is of about and to old XX% on and -- years order. fleet talked over the X% the You relative the only of fleet now fleet of fleet

are XX-year-old some then Magellan part about -- sale start do years are I How fleet? old. you or guys to point the the ethylene life and do think of candidates XX is think do or the that of vessels, of have no useful those vessels or the of you some legacy noticed recycling at You what to those, longer for have these something XX

Harry Deans

have of we continually to worth us have someone and Yes, are make to in We we that they vessels we be than XX-year are recycle that us be do might to more else -- worth reassess are or that more them. some bracket. they it to decided them plus if might than sure the

the our they’re return for can vessels you As and from years, couple are of see Company. earning the earnings past those a over well-utilized

give today. for can I strategy useful verse vessels many a we’ve we Now, on done depreciate and for and is chapter as as life But XX the years. of depreciation it our years, you

Ben Nolan

over fair anticipate years, fair if -- is you would perspective? extrapolate there’s to depreciating that it’s your life you’re some some then them there’s still or and from it still then anticipate to useful XX So, still is XX

Niall Nolan

it’s hi, ships. ethylene Magellan into are the plants and They other the are at ships XX moment. -- Ben, exception these still Niall. with service, you we ships That years, when of that the the is are something original particularly mentioned, came that reviewing Certainly, carrying ethylene.

carrying have therefore of of or All ethylene of the strategy them servicing are year this Navigator been part throughout enterprise terminal. and are that

and is will able to whether Technically, ecology be something But the will. are they moved Obviously, they will survive ships that on maybe world XX looking majors years, whether to of will the at So, maybe terms that oil and years. be in has acceptable and like XX the we continue. current norm.

Operator

Thank you.

time. now We hand for management further would closing questions have no like this I to back remarks. to at

David Butters

Well, thank you.

was months’ look the segment may three have on So, particularly the we forward good one further of I development an and ethane another update both time in ethylene to it business. a when call. the

for look to us you. So, thank forward you you to joining and Thank this talking morning, again.

Operator

today. Thank our participating. for for That conference you does conclude

disconnect. all may You

Navigator (NVGS) 17 Aug 212021 Q2 Earnings call transcript