- Earnings call transcript Q3 2022

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Randy Giveans

Welcome to the Navigator Holdings Conference Call for the Third Quarter 2022 Financial Results.

We have with us, Mr. Mads Peter Zacho, Chief Executive Officer; Mr. Niall Nolan, Chief Financial Officer; Mr. Oeyvind Lindeman, Chief Commercial Officer; and myself, Randy Giveans, Executive Vice President of Investor Relations and Business Development in North America. that is you recorded advise must this being conference today. I

financial to of looking will conduct include numerous differ limited operational to plans are perspective today's and material financial forecast. we both based be prospects but future from and presentation, not as uncertainties. and on statements As and information significantly are These we and making a expectations, statements. forward are the Actual forecasts assumptions, state management may from risks forward our as and expectations results and today's such, subject looking

the these assumptions now Chief quarterly I and go Please Additional factors information Executive annual the Commission. our Exchange included pass and the about Officer. filed Securities Company's with Mads. and Zacho, ahead, are floor that, in to With reports Peter Mads

Mads Peter Zacho

so you call. our Thank everyone. morning, Randy, good for much Thank joining you and

The XXXX for third quarter of Navigator. an exciting growth of period was

to gas we in joint to capabilities expand acquire joint two operation announced venture the that a Greater announced chain. have supply into Bay Company has Gas of liquid ethylene ventures carriers. We capable the our five entered liquefied In total global the September,

the the export XXXX. of emissions offering of improved also The yesterday rest to world's terminal. and being capability and ethylene economics largest the efficient ethane is will average vessel capacity our terminal first fleet export a age alongside expansion next with our to Partners Enterprise customers. ethylene modification both joint The an the project in month. more XX% to lowering ethane of our We'll unit, which will joint in ethylene Gas be Greater terminal is an Navigator’s venture, more, consists our Bay advantage export which The participation we allow result venture reduction project with see us at own acquired that vessels acquired What's will a providing and provide in for Product existing in our to additional refrigerate refrigeration expansion of course expected the refrigeration take shareholder. the we fleet venture of to announced joint existing during

quarter quarter. rates to X.X% period in Notably the with voyage demand And time the increase due days same our to for ethylene equivalent charter XXXX monthly last increased quarter comparison that in at overall, in in the witnessed second over exports operating vessel of thank by the I'd for ethylene take was XX% quarter performance period Please, the into average the so growing nationally transported year. our U.S. third and fleet the Looking continued That mainly the revenues and for Niall. excellent an utilization, costs. and that to Europe. of Europe of from line period with the from Niall, and August was all and hand July pass-through which we to through fleet of energy of available you this about staff financial in in quarter. was Europe. who will contributions and same XX%, it in the highlights importance course line in for year locally last Utilization our with security guidance just was QX of like during Navigator to both the work

Niall Nolan

quarter to adjusted the morning third good an Thank you, $XX.X third generated performance of ‘XX for Mads, of EBITDA $XX.X and all. year. million last operating for compared the quarter The million

to quarter days in income. $XX,XXX the addition surveys increase during to quarter last than will in quarter quarter improved as result total of per And scheduled year, million. and of comparative Pool month million third was $X.X capital $XXX.X additional of too vessels their million million a additional this or relative as the slightly vessels of Average over third just from joining of half within primarily first for the this that seven day additional return achieved independently further fleet the nine XXXX, to during lower an $XXX.X of XXX the taking a $X.X $XX or the quarter fourth third $X.X million utilization last The last dry-dock with during It in a per handysize slightly third smaller of cost quarter also August, of charter relative earlier quarters total quarter $XX,XXX in rates operating transaction first The of year third have quarter, of the were year, entered dry-docking charter quarter finished increase of of for fourth generated XX.X% revenues the an this single to dry-dock will operate additional with were final finish and $XXX,XXX enter the for a quarter X.X to these to utilization of Ultragas compared revenues. the XXXX. during compared a Unigas last third of coming year, overall of is of quarters this $XXX,XXX either or XX% or of acquired improved this for million this day those to vessels year. the exceed vessel the Four for is Although year. during the this this quarter. expected the fourth the two Ultragas the transaction. that which part rates to part a per vessels million month in along our of for $XXX,XXX Vessel as the achieved contributed accounting run and two

representing quarter. the our expenses our participants' net from share the the costs on order, Company third The operating are the for Pool XXXX. the revenues capital from of the of for there remainder our are contributed million, the representing Luna revenue the Luna Consequently, other from was other to revenues pool participants' other $X.X quarter, the As of participant X.X million builds during of these XXX,XXX with the has only net pool. voyage expenditures vessels dry-docking share new Pool no

achieved number a these million, zero to thereby our revenues. of XXX,XXX of XX.X% a primarily during on aggregate voyage we over months voyage the Voyage expenses $X.X but of charters, XX.X expenses. to Higher charter of the the course quarter pass-through in are longer-term. incurring were most the net vessel by net nine costs additional higher the first form should which or over benefit fleet, in voyage expenses overall, passed the result of million increased of XXXX, on as However, part customers through to fuel which this

increase third vessel, million year, the vessels of did operating day per expenses during vessel, operating quarter to vessel relative a of which increased quarter per quarter as the Our quarter for by third to a of during last result third last additional to by of the million the last $X,XXX XX.X% increased year. day but day fleet per was to expenses of below X.X%, $XX.X at $X,XXX for day last Depreciation remain to per in the $X.X compared or vessels compared third compared on or quarter-on-quarter the Vessel per this XX.X% our year. much OpEx quarter the year. $X,XXX third quarter by

fully our losses and of X, income fleet decision $XXX but by vessels was generated of reduce being from that to by $XX,XXX the million bond in previously, reduced million gain year. increase, management XX General stated vessels quarter joined exchange expenses administrative or other the As and million place, gains lives the foreign the other from all to by accounted January, this included the X.X earned Luna unrealized years relative August, years on of million the which the of And XX kroner participants to million, our which XXXX. have a the result as on useful approximately also swap of Norwegian quarter the and to XX.X% to last derivative additional loss reduced the Pool. the was estimated foreign XX part September to An due revenue on is a X.X exchange as offset XX an retranslation management this $X.X for the X.X our I instruments. in that we in fees in -- Company's at for result of of comparative Pool is million $X.X as XXXX, this unrealized for decreased of of

gains relating as continue interest to quarter this In loss, instruments derivative rising rate they exchange the swap further million as grapple rates with around the world to to addition quarter increase unrealized also the rates swaps the on gains interest try during LIBOR includes foreign the banks central for inflation. on a gain to $X.X as rise

as to rates compared rates the of for interest last below is to fixed of result interest approximately September between debt quarter current X.XX% on part of the XXXX as levels The third We as of of debt XX, our for the assumed a debt interest additional quarter the expense rising XX% portion of transaction. year $XX.X interest rates and interest as was that well X% million significantly that at levels. on Ultragas have as $XX.X the subject on floating

an quarter Our the $X.X terminal ethylene the the share Terminal this to of share through the of tons approximately million for quarters, of during million amounts lower but results million charges tons third quarter based past quarter third throughput higher on our the last share X giving for year, $X.X exported third were generated three than terminal the XXX,XXX for quarter. than EBITDA relating our of the from during ethylene of throughput during which per ethylene terminal of X.X of quarter XXX,XXX throughput profit. million the to the depreciation approximately

the quarter earlier but improvement a income expectation million, third fourth with this year. of quarter the during was $X.X the of reduction net for Our significant from quarters, the

million credit Company Slide sheet, $XX undrawn with million had the of XX facilities. On $XXX.X X, available September from balance revolving on cash further a the at

a liquidity our and headroom. providing million, covenant $XX maximum minimum significant loans bank arranges of remains Our from credit thus various

which XX, by at quarter. third debt, total reduced was stood the XX.X million during at September million $XXX.X Our

facility Our at debt XX million the and of a secured on our Norwegian with total which XXX.X aggregate comprises million. million, loan XXX credit associated in of vessels approximately bonds, two terminal facilities

facility documenting as at our extending as SOFR currently our LIBOR XXX vessel converting facility loan refinancing U.S. year from to year its XXXX. time same by a and into new September the are September, one well facility, maturity to We the six of XXXX

of $XX.X On the approximately would November denominated day. bond, of In to OpEx X.XX%. day provide call side million, Company enables daily to $X,XXX us kroner cycle. for payment redemption the we has cash smaller right and which older breakeven equivalent In ranging the we for have which addition, bond the Slide the ethylene the for vessels result million XXXX, the XXXX per outlined maturity more a this in toughest the option box and has to conditions, per premium to low generate enabling market a $XX,XXX XXX in from X, shipping of This in vessel call an a our current throughout positive EBITDA Norwegian day in the exercise remained even expected generative level segments, of Slide X, across at we vessels. complex larger, on per the cash $X,XXX the estimated

a million, the also Ultragas third the in depreciation And over with prior provide I'll the the fourth consistent with OpEx and quarters in also EBITDA Slide our QX on of interest spends of we approximately expense quarter. his quarter XX to million which were EBITDA in for remarks. of quarterly XX, be XX.X G&A a over shows vessel only three achieved. Oeyvind range quarters anticipate that, We in expected impact will you the an QX to On hand XXXX historical remedied the positive a annual dip uplift for in which and we slide. showing transaction outline XXXX, that It

Oeyvind Lindeman

Niall. you, Thank

we challenging, to albeit detail, third XX% I want second, the guidance met Before highlight to just -- get on highlight hold of into our just that utilization. I one that want the quarter

with two bit However, exports, a which now of and QX in higher a being four more ethylene a are way, XX%, tale above but charters fully talk out but shaping quarter details is we'll quarters Asia utilization the up really of volumes destinations about, very is positive on little it's on later. and that little bit their more Pacific time spend really driving region, a employed and ships in we'll XX ammonia

has natural demand. propane butane, Slide carrier which remains are which being flat, of liquids impact U.S. you move turn on in demand a and U.S. If the growth production U.S. driving seeing to is XX, ethane, we domestic positive and export, in increasing gas gas

low ethylene. to XX,XXX international to the tons ethylene of producers. Not graph October handysize mentioned export in only XXX,XXX energy locations. LPGs. relative and The fuel a Both US but competitive see competitiveness to about a to of exports the we volumes addition, for its alternative small the PageXX of U.S. to to arbitrage a We Cheap XX% to export big as to translates There's as U.S. can opportunities see about cost right to to one production volumes shows ethylene this and propane Mads up, compared ethane next exports In production markets. has U.S. has sources of handysize an shows uptick in The feedstock of competitiveness feedstock widened which October. compared lower LPG go changes oil tons market. remains see also do the or a as LPG, production September graph as from drive increased petrochemical continue year. feedstock industry. of in September Similar higher we importing had to ethylene where is on to for ethane for exports increasing it increase the to

the During to the of north each Asia-Pacific The which quarter, mile demand majority per heading for additional to ethylene is we shifting third destinations, evident. whereas the volume quarter, exports first doubles fourth underlying for primarily sale exported. ton this the Europe, during of is ethylene more see weeks

had it, to to on will October, Randy, rejection, Frankly, including and that exported believers Just give capacity that at presentation. will export terminal needs share we expansion we an out production ethane bit industry ethylene more maxed the of this more. are increasing our we you chain, NGL continued example, With we color would've this later the add a in consumers. this and during firm capacity international more little capacity, supply value on producers on

supply is no for a low The still is and other traditional facing are supply production double and prices, Ukraine proximity but Due production negative for have never to to need national countries people food in ammonia supply would China, location of of European gas dreamt to food there, the and ammonia. ammonia. the from from is we supply the past, need Europe and Bangladesh from ammonia East. story high of security. major from the federal source constraints Europeans Therefore, for field and domestic is sourcing fertilizer Australia, Europe, look now of from to Middle demand exports

increase on then imports as and clearly of see Europe, this places decrease from thereafter; outside European ammonia from however, can You you mentioned. of February XX, of year Page a sharp

earning so we from fleet We in a third This portion the increased you not ammonia supply fleet. normal balance vessels As consequence, around only about handysize have for cargos if during place the and a of these employment the our competing should LPG quarter improving big removed or change are is vessels. the across easy demand our X to XX% other XX% stays of market, consider they're those and segments. from petrochemical now XX

XX. following stays Page page, You on earning the can our clearly the impact see on

extremely and a earning quarter at October, In and clearly ethylene third up a rapid in ethylene increase we blue states, the utilization the from heading of high Today, bottom, with big our the is illustrates XX% conclusion, ammonia change look it quarter straightforward. quarter. dark majority pushing the alongside volume in fourth you of third Asia-Pacific. volumes If from the that to have portion at terminal is

fourth have we cardinals. Today, XX removing vessels for in beginning availability we ammonia quarter, not. did quarter, employed Third the at other of fully tonnage

Third have less we this. XX% quarter, of

utilization rate October a very page book, for And to following uptake being with XX% Ethane ships month by positively handysize, this the quarter illustrated the we exports in or semi the many vessels. following first about quarter, the refrigerated sharp increases last are is month rates supply the and LPG higher on driving fully low fleet. during refrigerated won't added be third of in America fourth addition, In compared there handysize order from and balance. adding North demands underpins and All see which the of environment September to for this

I fourth excited to bring it are to Navigator. can what We Randy pretty will Randy. With please. about over quarter hand that,

Randy Giveans

Oeyvind. you, Thank

with months our very cash. a us few three announcements of been it's busy Company yes, announcing regarding for So, uses meaningful recently the

Greater The we vessels for XX% Navigator First, XXXX price meters venture The in of that acquire portion Two five and that total the we owns XX,XXX agreement basis September venture and vessels XX, are greater in between of November ethylene five Company. and cubic by entered little by XX% is of with three the on $XXX XXXX. and XXXX. to in announced expected XXXX, Bay below. million, joint a meters joint be XX,XXX to under tends is Gas built listed vessels table our built purchase Bay December, The vessels into XX% of the cubic Gas, the acquired are a and million. a on vessels $XXX staggered are

assuming total Navigator's of months. outlay, be out XX commitment, capital XX% For over vessel $XX will $XX likely next spread upon million cash than less for million the debt financing acquisitions needed delivery $XXX around million the the

Secondly, on of negotiated purchases, market of board's an stock or authorization repurchase for a implemented announced approved trading in to program October XX share plan. transactions million accordance XX, open we with up NVGS privately to the via be common

per creative this, broader been cash has June, below just there our above shares NAV as an in share. the and primarily Also, was that are reasons numerous but off is as use markets our price Now months. repurchasing share recent sold for recently $XX of NAV with boosts

which our expansion, fleet program capital shareholders. debt and renewal, will between diversifies terminal cash, returns repayment, to this uses of split Additionally, likely be

is to the be which end partners Construction spot customers export expansion at of yesterday recently, Point. project the to in expand existing off-take Morgan's venture XXXX announced terminal cargo operational. is we commence our contracts. Current products the expected availability fully quarter new a enterprise to with project discuss expected afternoon, and XXXX, joint in is leading first limited under time most multi-year So to at XX ethylene

So the majority off-take we prior expect to of completion. to the contract volumes project

Now, will but details today, and all the release with of coming publish able weeks. in not these we details press specific joint in exact we of timeline, volumes, expect be CapEx provide to terms to do a

that, With remarks. tuned. back over it stay for to please So closing turn Mads I'll

Mads Peter Zacho

Thank you, Randy.

running past, at look growth and In was now cash the sheet ammonia. both can terminal pursue and can transporting to our capture flexibility that you was see you in so what buyback exciting throughput. we growth announce Navigator, have now, QX have though us right financial during and if position gives opportunities So we we strong utilization looking saw Ammonia built expected, In and in did utilization see can higher as and we with significantly we that that there's that see have robust and October that the was balance we QX, fleet a we above into our vessels XX XX%. share QX, now debt pretty subdued QX we two prospects than repatriation.

reasonably of expect capacity. quarter we strength ground and exceed the demand we full the our as the running are terminal we full speak, think XX% for we are the we show So transporting will that is solid segments three nameplate product utilization when above quarter. All that in

for months questions look So the the from to you. we think some and pretty robust that be we'll happy coming take outlook

Randy. to back So you, to,

Randy Giveans

Matt. you, Thank Yes.

first for operator Instructions] [Operator So, your open. some lines question, Q&A. the open should line now So be we’ll

Unidentified Analyst

can hear you Hey, me?

Randy Giveans

you? are How Ben. you, hear can We

Ben Nolan

technologically clearly I'm not good, Thanks. thanks. enough. go. we sophisticated Here I'm

position I'm you I congrats getting much too the in you appreciate a it's But that how but think? a you're be not about for you So terminal, able curious whatever, you talk that thinking CapEx. funds Niall, it funding, or just really quickly, have couple of or to this, the it. maybe I to about is finally to if What's how, see much clearly going source we'll some but are be for could how can't do

NiallNolan

likely as years. to next hi. be over spent Yes the Ben, two said, has CapEx, is The Randy

cash said, pay has spread in existing sufficient not quite the having terms is And of where actually it's to of point of as use to million for So good of which now, $XXX we our having and share are an particularly capital. resources starting out. cost cash, in we total, asset That extension. no with north have debt

are So, cost exploring we we using finance it lowest best of can to options capital. as the how

therefore to debt You'll be aware within no by. allowed more bank the venture traditional difficult financing financing that there is so is come joint itself,

Ben Nolan

that vessels utilization. three so after hear, Okay. or And but adjusting like is just think utilization got questions sounds a to from sense. Yes, think that a Obviously, for I've charter. I wanted makes perspective if far. this it in are on it's I which to the time of getting dig lot on if, better, especially But your bit good of little

those you'd XX%. to appear So, seems It would and on lot why have a if even time put doing make those to help sense? vessels full just a that me utilization below to you on be basis for you whole net charter bit from not on me be charter utilization, to as better time little a Can that rate. might give up not well

Mads Peter Zacho

spike on ammonia XX see are time and if any time one of if charter fair a know there, the petrochemical Ben have the the presentation, and charter, stays shows LPG Page chunk is I October ships that's don't big in earning -- And you So which you with that you charter, those have segments. the time vessels. employed where the in

So charter. they're time mostly on

been on the So logic of talking we working about. some have you're that

Petrochemical that typically amore be will spot see spot that is because as there. other as spot a of can segments. the not LPG some there, play, not is really structured You of

can So where forth. upside that is so you and capture that but

topic you're about. the kind our I towards think, kind at that talking you graph, explains So, that if look October journey of of

Ben Nolan

that is across year the or piece let's continues future fleet, And pie, the assuming expect, would be of next fair? a bigger you utilization better the into to that ammonia Okay. say,

Mads Peter Zacho

have a the larger if mean, higher charter -- you're generally utilization. generally portion I time you you have

to prices. we to not happening everything with going So reduce what's ammonia Europe the how believe that us, world, that energy see going is is for and is in We and definitely grow, correct.

that So, I than higher think, there level utilization had a stay, not. at overall obviously to which is will prop-up we

that's I road forward. So, think the

Ben Nolan

me, strategically, for older lastly that another of one vessels. I sold just one planet then And appreciate you of Okay. the

number little on infrastructure where things compare the is dots a older re-gasification LNG your carriers your like even to shifting As of floating those really possibility -- there seen or in of connecting to and I you've not And let's vessels? where of do being of business too practical? the increasing the last that any bit et converted the business towards think into then Or whatever. and related being storage dissimilar are it's more in with about say, to or fleet or of LNG with Is of able years to number maybe the things footprint sort supply your some with chains, cetera. I dynamics a the especially units -- respect

Randy Giveans

you will go? take and Mads,

Mads Peter Zacho

is on. and terminal We piece it comes between into shipping Yes. supply some mix chain. we expand about overall you of the our good this through in would of and looking an having that between could able area to kind strategy we we business, to it integration so the When certainly better vertical a very, are that broader say, like to synergies that very see total deliver service are

opportunities business. it I will would talk And a can then talked discussions, some of use this to import there see with it's be the well would it on side, we we've of bit little explore think, and to and before, opportunities kind I leave we think for of business. be Ben, and working that be see, coming that. maybe more existing we can maybe to right partners further as really the for also time in attractive decision Navigator if you can existing those see And now how export our this I'll we we more to than about doing about engage our So,

Niall Nolan

for opportunities project. assets definitely for assets even older It's infrastructure using

you can whereby within idea, in them storage the one and just are as discussions live you take a tanks in location ship has either put So life, older for the an finite a give tanks or hole instance as use we time. for of to ships can because tanks, the ship the our them long shore a a very gas floating but out ship,

infrastructure there are those link -- the develop interest on some having our that, in I So, added value, older the, those in suppose, assets. on with of or to assets

Ben Nolan

a possibility nothing how or suppose, hearing is I existing assets in early terms that its for maybe that? of maybe, correct Is I'm stages, using that. So that

Mads Peter Zacho

Correct.

Niall Nolan

Ben, it's our a oldest at deal. is million was And XX this year you ships, got so channel age. just as it given one considered left good Navigator is ethylene just to a we've of a XX XX.X point ship, one ship. the semi-refrigerated years, years to year regular is This at life be mentioned of policy sell that capable that economic with the referring sale, XX to Magellan one ship. which of its you're of It not clarification,

Operator

right, that, next on I Omar, caller. mute. think with All you're

Omar Nokta

hear that. me about now? Can you Sorry

Operator

hear you. can We

Omar Nokta

Omar Nokta from Jefferies.

that been terminal? with how Enterprise while for do capita to then work you since the of agreements out Product for to of announcement? to a at hasn't the know there's And ones a that work? you relative you. discount plan put the I price a deploying CapEx Maybe thinking NAV. to buy you stock share the await think about advantage Just a couple of about you build quick take purchase moment? are but way on as that you of one, program finalization, blackouts two, have back How put Randy, mentioned

Randy Giveans

Yes, good question.

as are as earnings well we call. first, still project So in this the the blackout we Obviously, had period. announcement

near-term. So, the following lifted two we these things, should in be

shares any not yet. So, had repurchased we

In said, terminal terms over expansion of the spread the to balancing Niall for will the months. the next CapEx XX two, be as XX out payments

certainly for we both. So, room have

of use So, expect I cash. a would simultaneous

Omar Nokta

a you where frame can as and picture what's then doubling of give on big of magnitude And mentioned pretty there reference? sort you give it you if you coming? can't you're think Randy. anything just know follow-up, us a of give give Thanks about I that colors details Is clear a facility? Any just just Is expansion. in the quick specific the

Randy Giveans

wait It with Enterprise. when fold good to us you. would be is announcement once the we for really This discussion do we'll having joint that together more that detail for out

Omar Nokta

Okay, Randy warned that. you've about I'll think I'll try. it. And

Okay.

for I'll it That's thanks. me. over. turn it Now

Randy Giveans

Right, next caller. Omar. Thanks,

Sean Morgan

Can is me? you Morgan, hear Hey team. Sean This

Mads Peter Zacho

Howdy, you hear Sean. well. can We Yes.

Sean Morgan

Alright.

across talk so kind and the of that do or given constraints partnerships other on think the can of other expansions the maybe ethylene sites Point look you expansion, or the exports partners broader JVs we of brownfield to that shift ability Okay, possibility Gulf sort current beyond U.S. existing terminal location? maybe at the you for your and other Morgan's gears about could

Mads Peter Zacho

Sean. Hi,

think, we efficient, an the terminal the Enterprise Product Gulf. the Partners the in ethylene, have together world most I export U.S. ethylene largest with in

are Any ethylene infrastructure we additional expanding So, certainly I doubt. beyond that, it.

side, on So, the -- we are ethylene Enterprise. focused we're together with

green that CX, other are looking ammonia, products, there Now not into are we and ammonia, COX. ammonia to blue CXs, mention

So, there's ethylene which many very infrastructure opportunities seriously. beyond taking we're

Sean Morgan

Okay.

sort making you kind hit more kind about to kind that existing of that you ensure of to requirements maybe of, available your of of of it factor QX then bit. driven? I QX? demand with more different Enterprise. on terminal flagged on of of in to Or the for Was contractual primarily that driven enough out So partnerships potentially sure in products, by had latter the and production the ethylene Was that kind we the throughput? capacity little bottlenecks have talked And was before obligations of terms capacity in focused having know exports a more constraints

Mads Peter Zacho

demand inventory a a it’s because partly domestic it's worldwide partly ethane, very And polymers. and management, it's it's you production, partly complex difficult think I quite question. is it are, ethylene,

So the had they the because levels from the summer Pacific was Asians, already Asia in Europeans their and buy there didn't inventory Europeans the in. readjustment the whereby enough in came

However, they weren't. is Pacific. market than Europe smaller Asia

the the were on buying at So, demand side. and storage there with U.S. time so the general the went in issues forth And down then same

issues seemingly November. know, there a don't was sorted October for definitely QX I have or was, there now So of myriad whole that been

for robust seeing are December. also We denominations

announcement an Today travel, whatever point Xst ethylene view. government are have by restrictions kind So and after I from back was they quarantine days travel zero today is think lunar that year their April. the Chinese of from then world international three the they reducing track getting for to of of to new for there

year. I up think before picks Chinese So again demand generally lunar

track we're think, was awkward Europe. I a bit right just so the the And little lag this on think generally from summer I war in

Sean Morgan

Okay.

that if in and so as throughput, then should demand then be headline and So then be going we I'm to is understanding kind sort forecast? Europe the focusing even gathering barometer we a biggest is Greater China though for on kind of still Asia, correctly,

Mads Peter Zacho

to you demand I rule think I the we go think, if Italy in general shipping, thumb. for back forecast of

We have these to XX% to Asia. Europe, XX%

have clearly if of I we arena that shows look in we one think, again. the that graphs So it kind you at are of

Randy Giveans

Thanks, Sean.

caller. Next

Turner Holm

from Turner Clarksons. It's

you mean, should in EBITDA remarks benchmark comments prepare to we being us listening you sense about a adjusted could I there the just of kind Is snapback give QX? be the So, couple we or improvement. were that thinking in the a on that Can an improvement magnitude mid-XXs. price of about? previously fourth the level see quarter significant the of

Mads Peter Zacho

Nolan? Mr.

Niall Nolan

is, be We're right we case. through seen through it certainly, is halfway that to indicating the would the and November, in we've that what think, And in disappointed would now. halfway be if quarter date level. that October achieve so at I November didn't we obviously

Turner Holm

a And for… you. then question Thank Okay.

Niall Nolan

is utilization number important because The course, line. an goes extra bottom of here revenue day straight to of the

it's which we So, an very such because direct why important that's utilization also the on factor. is impact, guiding

Turner Holm

next for need to still question of seems in some the structural wrong, for Oeyvind, to few generally mean, the Europe I structural food, what number grow big of I'm potential you drivers ships, you the about talked you ammonia do on we and Europe are but had rates. at is XX% if ammonia could point. ships quarters? a so this higher correctly, or look I in ammonia me see But it if demand? increase just obviously for down on there and over the you A appreciated. put of Correct understand the at as Understand shut the those capacity

Oeyvind Lindeman

question, had opportunities quite it think, are I far. I some that growth to ships our still are going there think, ammonia HavingXX stop of this exponential extraordinary. in is we've there? already we from so that's year Is handysize take In thing. exploring. more. XX, is ammonia the good I away ship into normal segment, don't market we other if will that but have the every a we think few a small a

there, think some still I longevity of are it. is there but opportunities So the the real point

So I don't tomorrow. think this is going to drop off

to see plus the off impact have as in for business is some ships HavingXX big you a where time, I going kick as can change think when ammonia, streams other us. structural do already good some well. of we this which a be for is

aligning are stars little bit. the So a

Turner Holm

continue of of To lot on shipping, generate theme But in think terms factors your shipping online on with ethylene cash number those right. sort you the volumes however in demand own the that in vessels certainly carriers, or about terms the it? in come of structural terms terminal that of of as shipping of mean want of that for Yes. its flows talk for could to could for about demand demand terms what a additional

Mads Peter Zacho

I of it's back going the chain value think of chain value more ethylene. to a

So, need U.S. it. in the the producers

parts getting my U.S.? really it's structural own from oil So, ethylene NAFTA And into of buy? producing high Our the should or creating other will efficient in contemplating more a curves indices view manage the production a partner risk now I terminal buy ethylene can in creating diversify is U.S. from the pipeline whereby on evident. now, of crackers, all ethylene so the the in import this should should expanding connected forward how thinking Partners quite that connecting Product and two in markets network, And more competitive. international should it continue are are of and so are a course, the I little or -- some environment, I actually forth. oil people and particularly we build Enterprise and U.S. structural I Expanding efficiencies depends and making bit the And is markets, be. in connecting

transition if big believers service to from play, value And but there about already et We are chain. the producers shall voice see. the of be move, cetera? international. that. We the large away a That that talked are shipping We implication spot and have pipeline which is generally there for U.S. is between going side, happens, more we ethylene fleet, charters structural on locations the to opportunities in fixed

Turner Holm

bring Sure. ship. if But say if I understand say on correctly, ethylene capacity I million move you guess that to it's has on of X to tons another, and export that fair

vessel So well. demand as to move that will through

Mads Peter Zacho

supply the impact absolutely. balance, demand It'll

Operator

line open. your should Thanks next caller, be

Climent Molins

Molins Climent Investor's taking Edge. morning. for Thank from Good you Value my questions.

Regarding attractive. of forward was or relationship you Pool? vessel acquisitions existing advantage the seller Luna of it from the one you took you Is something with this pricing or a month the of more so, opportunity announced quite repeat seems maybe going could given a the

Niall Nolan

go you will Mads, ever at that?

Mads Peter Zacho

Yes, here. I can off kick us

at are became looking the consolidate it's the at. to is And you has are history ships at mean, something history, that whenever continue We throughout definitely looking we available that market. this buying secondhand. done been to I if look by Navigator's market in they something

The new they lead prices, build time build today long. high. is are very delivery new of a at Looking before ship

ordinary builds the feed or go very seem new fleet renewal beefing for attractive doesn't out and build new up just it So for fleet. to build

and that firmness there. handful this around market of a see but may part out in would we're be at said, that that's a are We'll there our consolidator some much I overall are them not of hand a a content out would looking and bit it we in continue consolidator. if That right market that to huge deals. doesn't top there's discussion is they're, we to little to of as selling. owners there mean, a is Again, strategy go be quite more looking be interested rather now, it's the just going one. be buy showing do dollar that see the to if small where clearly second So being and and we'll busier, some people it's be get be only not accretive any it whatever transactions market

Climent Molins

expect Thank clear or expansion, should we some numbers of And commentary expect existing cannot been should but That's expansion helpful. concrete you of normally, you've to while provide impact the constructed? into you. is capacity kind the operating much continue we

Mads Peter Zacho

expect the separate the capacity should should is that be there yes, current No, period that an continuing out and so impact. would so be we build

Climent Molins

you. That's all Thank me. from

Randy Giveans

one I we Clement. Thanks, more have caller. believe

Unidentified Analyst

CTBC. Am clear? from I Spandeck] [Lisa Hi,

Randy Giveans

You are clear. How are you?

Unidentified Analyst

Hi.

clear the you to two First I questions. here would thank like and presentation, for have

actually to would operating Pool, noticed Luna on the from to same you operated XXXX. vessels the is in I five was First which that noticed Luna just Greater like halved from Bay is that buy that just you announced in X, compared Page revenue Pool Gas, period but

for the first my So that's decrease? reason question. any is there Yes,

Mads Peter Zacho

P&L. bit Niall? Would that talk be just shows you, a in about Maybe how little up our that

Niall Nolan

and Yes, accounted utilization it's This on that. the is of that there questions. spot just were, more ethylene of less was commercial it ships market the those for

Unidentified Analyst

question, to one. my thanks. then the And final move second on also Okay,

have like As to as ended and we gap and product price XXXX. would oil also question the time charter the and about from a be oil would raise on I the customers Russia Russian who until are

any price gas the on know to would carrier be the gap like I'd effect and LPG have if So, -- market.

Niall Nolan

year you So, refer one ships have are on remaining. they so to the XX-year two charter,

Unidentified Analyst

Yes.

Niall Nolan

propane or they butane. vessels, Morocco and generally transport in products, buyers Turkey. is The the two are those And

they're don't those the Baltic we with the products. So, title trading take to between of LPG. countries The price,

pricing and So the buyers our the we don't know. that customer agree,

Unidentified Analyst

Okay.

be won't there effect, So any right?

Niall Nolan

demand Not months not. over XX really. ships what available of That's not correct. terms No, next which supply the ships balance the are of and in are

Randy Giveans

Mads, so you comments. closing Thank much.

Mads Peter Zacho

our to and Yes. meetings. a It or Thank of investor them available some up, have, questions that and of otherwise of at some good either great conferences are you for course and dialogue. We'll any Good, in. in lot may more of forward during answered thanks was listening be them were thanks questions, for a online if we lot follow there seeing you. to look

Navigator (NVGS) 16 Nov 222022 Q3 Earnings call transcript