Earnings call transcript Q1 2023

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Randy Giveans

[Abrupt Start] With us today, we have Mr. Mads Peter Zacho, Chief Executive Officer; Mr. Niall Nolan, Chief Financial Officer; Mr. Oeyvind Lindeman, Chief Commercial Officer and myself, Randy Givean, Executive Vice President of Investor Relations and Business Development North America I must advise you today that this conference is being recorded.

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

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

to floor Mads Zacho, that, I the With Please Mads. pass Chief company's ahead, Officer. Peter Executive now the go

Mads Peter Zacho

morning, and taking and brief results Good I'll for our on Randy overview earnings recent you. start and in today. Oeyvind QX our then Thank more thanks color hand a for call and a of results part it lot off over events. providing by Nile, our to

quarter with quarters vessel by below of Our mainly result the in EBITDA revenues utilization. million was at came $XX and first than just and million, higher net charter income rates adjusted The $XX stronger previous results million. higher $XXX driven

made secondhand Our acquisitions with that $XXX end the we at the debt cash for due QX. robust Net raised the balance million of increased we financing quarter. of that slightly sheet in is the to vessel

share million as further $XX part been purchase million $XX initial program. completed The authorized of return of has program and capital a our new

both further buybacks. share for and dividends up opening is this So

of our capacity QX our and just XXXX. Commercially, to nameplate tons. ran XX% XX% guidance throughput above XXX,XXX right XX% high, that utilization was reached Terminal very the compared above we in over

around of to to Navigator past million years. and at a originally modern secondhand capacity. is the faster completed terminal of the by expected through vessel The CapEx has allow Expansion be to of managed for The Point million efficient takeover announced, will our our share result planned, vessels X and additional $XXX tons export for five As completed was for commercially train our be This previously we end Morgan's by started. year. team. effort of capacity flex up grew that export next created strong few we the than acquisition ethylene

to high expected QX, historical utilization charter and QX a to to context. It's it's rates throughput good. earnings is but continues terminal is boding hover around in below are in Time XX%. for Outlook remain look in order QX. The well QX robust an is gas current the around This seaborne tankers. ethylene demand aging in also both for robust by and XXX,XXX tonnes fleet book is well and high of global transport in and Europe demand Handysize modest gas complemented strong, a expected Asia.

overview, this review for it I'll With Go detailed of Niall more financials. over ahead, brief our a to Niall. hand just

Niall Nolan

morning. quarterly million total was revenue $XXX show million, of Thank the Slide here, the a net we you, improvement for to are also XXXX, XX.X last quarter, adjusted -- the year. This than Mads, X during But The from and the revenues, as quarter, of greater were results achieved $XX.X by $XXX.X the income QX first since the XXXX. for for first $XX EBITDA quarter expect trajectory and that million million impacted $XXX.X last million increased the continue. increase positively quarterly highest in and the we of result million good comparative quarter operating years XX.X% which of importantly, of on many

last of to was rates, day a charter increase first quarter which day $XX,XXX result of $XX,XXX in year. per as increases for the per The from quarter-on-quarter rose

also was quarter. day rate charter increased XXX $XX, from average $X,XXX quarter's a achieved last during the This the

for in XX.X% increase the increased and of to from achieved of XXXX. strong the XX.X% during charter compared to In increases the an X% last in XX.X% addition also to quarter rates, comparative utilization quarter QX year of

is us, which year. vessels venture, acquired joint the three this three by owned during months Our additional Greater of first XX% Bay

contributed XX,XXX quarter. second Navigara increase fifth an XX,XXX final in acquired XX cubic and carrier January Solar available Navigator now and XX,XXX on also days, meter vessel April vessel revenue to carrier, And respectively. Navigator two which joint the XXXX gas the XXXX-built built a on further Navigator This increased March ethylene XX on named ethylene XXXX-built Caster during XX, XX, meter for The and March and capable Equator cubic meter Viga. venture its cubic ethylene carriers,

million. vessels two and first scheduled days surveys $X.X dry had the for cost in for of these during the in We dry were XX quarter, and total dock dock a

of vessels cost budgeted remainder dry dock XXXX, million. seven at For expected it will of $X.X total enter that is the a

our revenue our net revenues revenues operating from representing from million for the share quarter, voyage net loan other of the representing participants' share $X the $X.X participants' the million, pool. the The of Luna with pool expenses of other was from Pool the

following the Greater approval. acquisition the month, by Consequently, $X.X the venture fifth the the during participant the vessels Luna's us other owned Bay the participants' of But in million contributed last which quarter. was vessel by to joint other

revenue will revenue will revenues operating or as fully feature financial consolidated voyage expenses not from become Pool our these arrangements. the as Going forward, the collaborative from into vessels statements Luna and

of the passed effect expenses expenses had amount same which or $XX.X revenue quarter Plot the are the $X.X to first by during costs. decreased reducing million voyage by through as XX.X% million,

which X.X% to the expenses vessel operating vessel to by Our per $X,XXX day quarter X.X% per quarter-on-quarter year, $XX.X increasing last expenses first operating million vessel to first for resulted the compared per day. in by of increased quarter

as of during the vessel However, this quarter a operating last costs. from reduction was on day the to per our $X,XXX year focus we continue incurred fourth

of $XXX by Depreciation increased of vessels anniversary. joint fleet. X.X% our to vessels. Greater Bay recycling joined we $XXX,XXX vessels depreciate Greater slightly be our scrap the Depreciation vessels or to venture as XXXX these of on expected million the or acquisition is the our for following addition XXth And their Bay value approximately

management Pool. relates $XX,XXX fees the participant management earned to of from for participants, Luna was other which income, the the Other our other

receive be I as forward not fees management going mentioned. relate purchased vessels five these to consolidated, will they third-party which fully as the and have been We will

on was our first unrealized rate of Russian quarter expected then million value spike interest $X.X for interest as last of reduced. a the fixed in consequence the following innovation the first the million gain There during This fair as initial $XX.X loss instruments the of swaps of Xu'compares of an our quarter derivative to year a future Ukraine. rates

million to expense result of that debt proportion of first on $XX rates $XX.X compared for of million in as rates. rises our quarter the quarter that a for XXXX interest Interest to first the was floating is subject further

fixed between interest at swaps end rate of LIBOR, XX.X% have and our into are or levels debt at We entered SOFR for fixed interest the X.XX%. rates X.XX% or rates that at have of March

gas terminal. for as the are some ton $X.X from first XXX,XXX of last profits as was tax XXX,XXX of quarter a export million, the as the relates comparative ethylene last which as charges million $X.X the correlated predominantly taxes from our terminal charge the year of the for share of The quarter first the some year, per our of natural result $X.X prices. share tons charges during and to for the of profits to of U.S. the well tons domestic quarter, reduced to both compared down quarter throughput cash from on And deferred million was

per first the for $X.XX income net -- share. million or quarter, therefore, profit $XX.X was Net

unrealized net the $XX per the of an for was adjusting share. $X.XX income million, derivative However, on earnings losses instruments, share giving per adjusted

at of credit $XXX.X an loans Slide million $XX cash of strong secondhand or and utilized very million. under On March is average $XX.XX. XX, million covenant sheet the liquidity for of we bank minimum The the strong agreements X.X of balance with acquisitions. shares accretive shows balance will balance This also, ethylene increased expansion price of on capital the project $XX.X common balance X, cash a after keep stock of -- for market cash be our against review vessel redistribution, a for remains purchase and an our terminal million total

an stood result on by of fund to to $X our Bay since of as XX, loan just joint drawdowns December March principally the a venture. the the Greater At of referred over vessels three $XXX.X at earlier, million XX, debt the billion, acquisition increase partially acquired

We a loans also years of margin of on XX. for maturing on down and it secured is The due loan March X loan March new is across term drawn on interest secured plus were term SOFR $XXX this new vessels XXXX XX the that was previously two fully XX secured in loan term X.X%, a refinancing million at and executed to year. a mature later

Slide two has shown Following company the the as until entering loans, maturities X. no XXXX, loan these on into now

market for OpEx to full per differing rate per of $XX,XXX the ethylene XXXX right-hand smaller vessels. low In on outlined the Slide the expectations cycle. segments. day EBITDA the Slide this the Ranging day XXXX daily vessels charter cash side provide across to X, the breakeven the vessel positive us at We for level the for we throughout $X,XXX more on estimated $XX,XXX complex for per day, and to generate from relative break X box shipping larger, size our enables

depreciation for We expense. G&A of and also expected range interest annual a provide costs spend the

the our I to outlined least outset quarters up we and this expect XX, mentioned the six a EBITDA, the trajectory, Slide further term. last at near step-up at On a as historical a showing quarter, in step we that over continue

we results. show it, XXXX first quarter based right-hand quarter's bar, our incorporates the to of next last have on the On an XX, EBITDA which historic last we that Slide and the annualized XX EBITDA months side the bar and

show In rates per were addition, those by an the increase to the increase right of EBITDA $X,XXX EBITDA of increments to of effects day. the bars on charter

of Oeyvind, November for for like call company's before you IPO And Navigator, decade the would I wish over successor, best to hand my you future. the to my listening since company as Irish And CFO my the over the in thank last tones is this earnings I and as the very say to I past XXXX. finally,

And Oeyvind. with you, that, to over

Oeyvind Lindeman

the please. we Thank and morning, next you, to all. Niall, slide, If good move

off of ethane this constituted left-hand of and gas And first during you that. is production. graph U.S. see we'll major production quarter So with on LPG year. start increasing liquids natural the the gas can the liquids side as on commodities usually the the is being NGL of

export carrier by in consumption. oriented an rose domestic by time period, increased also the environment, same all exports production, Creating segments. benefiting LPG gas U.S. helped but declining the

More specifically in we, the where we show month. months at time it Handysize a handysize each the than the middle, side, graph for exported tons can is more the the on first that XXX,XXX looking three in row segment, have

on graph gas the and this supply excess The ethane reinjection XX natural combined reinforces production. with production, way. domestic liquids Page competitiveness ethylene in be consumption continues yellow of the ethane for of big an to U.S. Ethane line in limited Increasing first illustrates point. incremental continues a

the Ethane international line. by therefore, The delta price ton, is leaving ton a translates cheaper and buying terminal to cheaper is and possibility red production the the cheaper ethane recent tank U.S. $XXX markets as with for to a purchase to as The ethylene ethylene at Asia freight differential ethylene consumers Pacific gray to pricing. well typically Europe becoming U.S. shown as in and XXX with remain fees in cheaper a sufficient cover price transportation.

in of end were gray graph. by year, the majority exports line of last the Europe. U.S. the This fourth to is shipped During the shown ethylene quarter the middle

the in which particular, by to to Europe. alongside longer compared yellow positive last is shipped economy, across XX% an is of ethylene have Pacific, from And slight ethylene discharge quarter a today the to needed reach we about This Pacific. Chinese distances rejuvenation is being seen due change recently, line. a the across the ports exported in shown increase However, U.S. the

consistently exporting shortly. more nameplate will And around export last some details been has regarding exciting ethylene September expansion in The give the year. capacities at Randy project

showing handling, gas In ethylene base a take that opportunities cracking provides exports which requires vessel servicing ethylene-capable naphtha. advantage Ethane in to ethylene, U.S. an addition also are the over of Atlantic crackers are handysize trajectory. spot ethane to rising able

earnings the in discussed on previous international the detail ammonia calls on have flows. Ukraine of impact in We war

have producers in seaborne change a European XX. on European prices, imports. their The reduction gas the on production, causing natural graph as seaborne ammonia shown Page of first restarted normalization the imports With in

the months, last during few blue years We believe production exports market about showing North middle an line extremely Having ammonia for the said worth U.S. In handysize the markets. see particular next over XX light ammonia that exports we of can the that, there are rise. that the and noting other positive American gas is become Horizon the carrier in the trends ammonia graph, demand driver future segment. the on and will the positive

in On ammonia declined that is European in charter of our XX, ports we the still earnings proportion of reduction and a of ammonia the about portfolio a paid vessels maintaining Page maintain ammonia. Despite over base. still fair proportion see vessels, last however, our a in little we our XX% quarter, has

XX% LPG strong demand our petrochemical of robust. markets ammonia All and a during the strong for three utilization created us, pretty winter nice QX was from months, exports of environment U.S. demand. the continued

been has same. year Looking impacted by and ahead, is the quarter the this historically second seasonality

important to one point for declined to is rate However, that year highlight comparable past. periods compared this has the less in utilization

In addition, far our compared fundamentals first earnings which the the remains for so quarter, market average days higher rate to help. indicates is

carrier environment including see XX, the Handysize rate general segments, period. all last slightly can On Slide improved the the we has over gas across

the we to segment positive book. we various for the Considering next dynamic, years, final segment have that On remind at a which order has the of supply modest the visibility the tonnage very next chains shipyards, is the slide, is important. pressure situation handysize a the clear our fairly we're which within people showing like on three

take given Ship to short policy rundown an capital will here developments over a from you, from Randy return to of latest the Randy. of over exciting

Randy Giveans

Oeyvind. you, Thank

on additional announcements. many up months, we regarding announcements those recent in on developments we provide to updated several made following So want of details

starting on XX. yeah, So Slide

Navigator XX,XXX implemented oldest program with XXXX our party buyers are That us million. we X,XXX-built, interest leaves third for May as to in XXXX, to who those continue fleet original of older be sale. a three carrier them $XX.X meter and cubic secondhand our Our with our tonnage. oldest only built sold continues On with modern vessels renewal X, replace the to we Starting a to vessel, we Orion, vessels assets. acquire LPG engage showing sell

Greater that as a side, to announced ethylene-capable reminder, acquire of acquisition we Bay a joint Navigator September entered venture vessels. in into Holdings the with On five XXXX, agreement

XX% Greater Now and taken following vessels announcement, this expected. delivery our acquisitions by by than us venture five all new earlier of now owns has XX% the joint completing previously Bay,

was costs available XX% from of $XX loan cash. cost paid $XXX.X total financed bank the the the of by with of reminder, $XXX a has about XX% As million, million been which million remaining

S&P meters. So size result this average fleet activity, as a of an X.X of an average of of current our age XX,XXX and all with vessels of only cubic XX consists years

on new Now to are part, we of Slide to return the XX. pleased good our announce capital policy

X.X authorization October So between NVGS of a of of part as for NVGS of to average XXXX, we December and new return up authorized $XX.XX at price repurchase an for we the million million a share to repurchase program share of of policy. million. Board's in announced shares of repurchased $XX total capital And common million the stock. of a board up a has Subsequently, of shares stock of $XX program new common $XX May

Gas Navigator first payout, of for quarter is dividend second ever, year. announcing the this time in starting the Furthermore, a

dividend at cash late XX% payable return additional in least $X.XX equal of with August net capital quarterly a per pay income. fixed will to of likely of We share,

for to these both capital believe and As aim growth balance goals. percentage level that, and payout, that we redistribution of supports XX% of that

Now new as returning shareholder-focused to something we but capital Navigator, requirement for to company. a shareholders see is a

capital adjusted For than EPS on pay payout via dividend regardless quarterly depending larger of fixed share whenever can you in to is quarterly additional a $X.XX table earnings. as will and/or And below, share, returned we $X.XX share the examples, cash a price. per dividend see buybacks plan greater be

our at existing venture under Morgan's Enterprise details Point. Last quarter, joint XX-XX Products alluded Oeyvind XX, Partners export finishing the announced Now expansion on additional for the to we over of as terminal with ethylene Slide earlier.

to We least tons by also export existing X.X to that capital year million capacity X million project to have from ethylene. million up increase per year approximately train to to refrigeration a ethane and at converting refrigerate agreed X.XX per an tons tons

to modifying train the such the So for land at of right, adjacent the the bottom and compressors. additional we and the tank chillers yellow are are as storage using closest equipment looking box some in

and per to the is loading refrigeration timing which from venture be tons project expects us tank terms post exports. XXXX. from this currently of combination joint Importantly, expansion, expected triple using the in to on will the be required for around optionality to additional financing. next ethylene is company majority per and year cash in storage $XXX the tons of million, XXX the of paid fund hand to substantial to providing XXX total capital The of And flexibility hour set debt capacity a contribution hour and

by XXXX. and already to have construction completed the items lead been expected ordered, of and fourth underway is be quarter Long

As left offtake cargo current and above is spot continues terminal multiyear the nameplate to to new chart, capacity customers the you discuss bottom run or can at contracts. see on leading limited and availability

contract So the next offtake year. we to the majority do to of the expect volumes prior project completion

I'll for With over that, to turn closing now remarks. it Mads back

Mads Peter Zacho

Thanks Randy. a lot,

If go XX. path is right to, on you good now. a Navigator yeah,

direction are with high complete 'XX. is ethylene charter are gradually robust our at Point, the trending once rates. earnings Our Both right utilization more facility and Morgan's with expansion in export by the by of to utilization the come supported higher

capacity appropriate capital in portfolio XXXX. new long its levels giving The of next outlined runway and sheet maturities balancing buybacks capital ever our until growth refinanced share through with the policy. is loan and further a of in of net for shape balance best redistribution recently further This with debt gives dividends growth, return us in as

back will report. us for we ESG the when in Our future work positioning on release June our Navigator you and from continues, hear

where opportunity position. Niall the I'd for Navigator thank five-vessel a leader highly the are as difficult to almost will say tanker and in like years we as handysize taken step to complemented a Niall of small fleet brand a June, infrastructure having with organization down segment our gas after deep-felt financial in to recognized position in from a today in company with this a by large take the a strong a global end assets to XX By industry. you our modern CFO

you, Niall. Thank

colleagues. solely financials. comes And when your by managing hands and missed miss I'm of You'll be also that sure it safe to our pair analysts investors will

it With back Randy. that, hand I'll you, to

Randy Giveans

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

Omar Nokta

me? you sorry. from guys. Nokta Jefferies. Hey, Okay, Omar It's hear Can

Randy Giveans

can. We

Omar Nokta

congratulations yes, pleasure. in working Well, first also a wish I'll definitely, next best Great. solid footing. yes, Okay. been the leaving very off, I you of Yeah, on you. Niall, my a Navigator It's with from But miss chapter. the side. luck you're

Niall Nolan

Thank you, Omar.

Omar Nokta

of been that maybe What's been in earnings ask, been you the And here say, quarters in I a power. talking way about do of Navigator's a And what insight? it things I to but a has team, kind improvement? your result. prior the in past -- At kind like deploying seeing market. you least driving your Is fleet? at congrats stepped overall just there calibrate what up we been off, the terminal ask there's of threshold. a can couple good the giving earnings a guess, time just guess, power? in been holistically, how this And kind Is evolved they've broadly, Is you clearly, as to step change, definitely would improvement you wanted the you've to strong a to it numbers in spent I relative driving market? overall we've on years, of look us? maybe first we'd amount as say here, of I this very some they've wanted to just I look the new just to think it Is additional shift

Oeyvind Lindeman

year. the you economy seen China COVID I during that's bit Clearly, what think the global coming little our after we've in is a to think and I perspective, of has melt great that also now And part middle all. recovered down, from of the it's last back. contrast saw

demand plays that a also I the of part think picture supply into there's this.

we're production additions to But handysize a seen But of gas North America invite followed been smaller grown transporting of I'll the colleagues gradually years of of this. most that suit. commodities has growing the the my fleet For the production to gradually not tanker no handysize has really number just we've and out add or to there's global the vessels. fleet

Mads Peter Zacho

performance of ethylene of ethylene the this. higher which other our of from factors doing ships, non-ethylene and cargoes taken that consistent One U.S. were exports quite few the has important a

of So an this steven and it's consistency also sort trade Europe China, even and helpful. between

is, now. another -- that's sticky Ammonia of ammonia. And and is development other then the quite course,

So importing despite I commentary and Europe ammonia. little made less a about seaborne

services remain market our demand quite charter Our sticky. transport service is or for parties ammonia the

new that So we haven't before. that thing is a seen

fundamentals So the in factors, keeping those two strong quite particular, Omar. are

Oeyvind Lindeman

that has is happening. that mentioned, ethylene you And what is Point. export built important which in about there has of Omar, from North that, pushed on Morgan's think the making America, facility ensured long go now course, is, of I ethylene But what to were do supply an It distance. course, ships to transport contributor, sure our

So very that's, of one. course, a important

constructive on And also of are the going why by one year. reasons I with this additional capacity of come that's end reasonably onstream future, next think we the to the

Omar Nokta

That's Thank good and overview. a Thanks, Mads Oeyvind. you. very

being lot capacity Randy of ahead being of sorry, Just a comment, a feeling secure about the the terminal confident and of project. the in -- offtake to completion able to comments able follow-up, or your you're of his

the or of able are market. the it it, time that Is years you secure Rates terms developed spot time? then for first, are of a or have Or have three Is stronger higher. seeing secure there now that a the are of seen kind to How shipping approach? for still in market short-term of interest we two at you call chartering has more available? to charter to ethylene what carriers seeing obviously for a in market. same type maybe evolve Just continued we're because --

Oeyvind Lindeman

short trading, Omar. think So still before, it commodity term the transportation remains we whereby based, petrochemical is so generally charter of I And same, this mentioned voyage nature.

of are the U.S. consistency getting exports. ethylene consumers, particularly East, in the familiar into with However, Far

is factor. this new So a

more and forth. getting so the types with are familiar with pricing contractual they So

future it's all time So just journey, what than we'll the see that a not a more be the it's based little I very think to but yet. in it's -- bit -- charter going and is voyage charter

Randy Giveans

one we fixed day. seeing six-eight, maybe forward two-three-four instead vessels are a so right? of further weeks in XX thing So weeks the fixing And in advance, advance, little is being currently in

Omar Nokta

Thanks. the That be leave speaks of the well, to And I'll I'll All guys. least there. market. at clearly pace Great. you. the Congrats seeing again, it right, Niall,

Niall Nolan

Thank you.

Randy Giveans

All Thanks again, open next for the we're question. operator, Omar. right,

Ben Nolan

not operator. All But right, I guess the can you guys hear me?

Randy Giveans

we can hear Ben, Howdy you.

Ben Nolan

were appreciate. we've that Far right, up a been of was things bit just one to the guys. the little had little for of going But lot a lower. ships time All But that a of It's utilization couple. back ethylene charters that XQ a especially since Gulf follow I coming one been those first, I three. are a wanted Coast understanding normally of utilization. the issue have I been the be had on Well, bit appreciate is that to XXs and the the is to the little you the is bit state refill. East, my to long the -- to that seen a just high an the going things market, knew

rate, was laden a not utilization. much ballast chartering were was voyage higher during they on so the it voyage impact having an And and but the

portions laden changed? the that ballast of we has the contracts So for trip. Are seeing and now both

Oeyvind Lindeman

talking course, Asian We're to Holy able Asia. destinations. of about from are the is, reload instances, propylene we triangulation. some Grail At Ben,

last However, that for hasn't time. occurred happened year. some It

they on So point Morgan's based voyages the are we're rental. from consumers, that voyage ethylene economics. doing generally Pacific are to on based Asia Houston, They

decent. are earnings or they the whether ballast, So laden are in

not And contracts of the is another better impacts Randy in seeing utilization, you they it about, is the are what from have some things. those when to our the contracts that earnings. because terms today say, concluded add XXX% China, was However, necessarily that are the they the to, utilized But the of the utilization laden those charters timing voyages what or on of therefore, are utilization customers' on fixed we're to talking are route in voyage. that discharged, is utilization before earlier,

that unavailable with dragged have be which of a penalty they to a employed was cetera, there. and down therefore, the technical penalized couple a to or issues couple the of So market we and on Nothing et per utilization what boats were points there do percentage se. was on

Ben Nolan

we assume the even utilization, forward, mid, new should is But That's seasonally fair? of low to XXs strength. adjusted upper maybe periods and Okay. -- that going

Oeyvind Lindeman

I our mean quarter first interesting rate I mentioned, quarter are far which regarding as is to so XX% despite in to average utilization around the higher for quarter. that second the second than lower be is

Mads Peter Zacho

while a to with are So I think it at unfolding that's on. have you're and inevitably or so a XX% times good technical sit that will or vessel for to utilization. Ben, there run not is when point normal close issues sale, we some idle which to process ship making the here, that be it's There is then needs to

are normal little during course around of say So probably a we XX% bit that or the would hit that. often very business, with if we pleased can we above,

Ben Nolan

Okay. of market. with just of And sticking sort the the state then

running is close capacity. to terminal pretty full ethylene Your

capacity. projects plateau you ethane think? out, at squeezed ethane little until can I we close of year? running more do generally some of ethylene Are full to there bit pretty think sort are Or a be terminals that to is the hit the a expansion next

Oeyvind Lindeman

the I side, least handysize. fact Point at know and ethane for spare a Morgan's then, both On capacity, [Indiscernible], have they that for

in sense. the capacity of availability quite So small handysize is cargo sort ethane

they we and the up. spot terminals, cargoes, competitiveness the naphtha see ethane, those on at pop are do of which outside attains depending So price do contracts and the term

handysize capacity So there opportunities, for ethane. spot are for

Ben Nolan

pretty ethylene fully utilized. much And is -- but

Oeyvind Lindeman

handysize terminal -- but capacity, two There's that Point. correct the ethylene. Morgan's you're at capacity generally Ethylene at and every [ph] for month is cargoes max Target

Ben Nolan

I mean am maybe for projects Can projects. looks of having I Okay. terminal. a development me, I'm asking me for you little ammonia And outside increasingly inbounds of for companies new like one's for mean infrastructure fill on what Randy. references guys. about then sort on in I from incremental a lot lastly bit maybe this you, you me hearing the

infrastructure to the where you on are sitting incremental how with level? respect Navigator you're viewing So development

Randy Giveans

positive Sure. are ammonia, around of U.S. here frankly, as, in Hopefully, some getting in Europe on the well COX projects, obviously, some we ammonia bedding, interested blue you're out terminals green recommendations But the U.S. transportation certainly yeah, there. in, export and as at side looking the Gulf. some other Gulf,

that table that of looking actively is certainly projects and we So all on are at. the

Mads Peter Zacho

venture the part with between those the port natural our could here, to pipeline of we with joint And synergies to venture of can infrastructure structure system vessel say find very it, add maybe bring and joint something the the would are we operating. the other and Enterprise, be that joint that venture the on you where have operations. comfortable to where they're places the ship have for opportunities, that something search something And we

a still we're So shipping company.

expect We but to can the company, between where can see optimize the we side, that. we and be where we finding supply ship for land looking shipping a side continue certainly ways synergies and chain are to the the

Ben Nolan

I a guess clarify understood. little just Right, bit. to

is doing later put In terms a of these getting work whole sort middle lot early analogy, type in far the it or of to maybe you're of it like baseball respect now? of with this opportunities? innings Or that process, are innings into just right some

Randy Giveans

terms been place It's to paperwork. certainly and where With But would an hard it's expect participation blue ammonia, NDAs our green contributions announcement But months XX in some still we XX a yeah, I multiyear maybe in we inning, third things. next capital in shows. we're something of process, to the agreements those in especially talking your Yeah. right? in say. XXXX later. of some in the affinity The first in other in some already and out, the right? kind have making of terms somewhere our picture ammonia, These thrown for has say that,

Ben Nolan

Perfect. And I'll having thanks around. Yeah, miss appreciate. the all Nolan And another color, for guys.

So good luck.

Randy Giveans

[Indiscernible] Thanks, company. All question, guys. lot of different Thanks, please. right. My next Operator, Ben. a email in

Unidentified Analyst

what I Gallic Niall, Hey, soon think let guys. the would [ph]. be [ph]

after and It's pursue been with in next role whatever this. So your to you you. good nice you luck working or

Niall Nolan

Thanks, [Indiscernible].

Unidentified Analyst

of quite through I ammonia with up -- the active funded government a any just questions. which sort few. where the Are area after has the the you're But by I'll think export some of of a on seeing activity, side. went of know try couple there's any you from of to So kind come hydrogen inbound federal sort I guys sort grand Ben on in expound Houston already to been

fleet And also, say, exports levels sort would you that the of of larger like hit as of it vessels. the that path ammonia class a scale LNG, think of Or follow you that trade? see do of where a you potentially U.S. starts developing do handysize into, would where to grow kind

Randy Giveans

All good questions there. Yeah.

LNG at I smaller or think especially looking the methane hydrogen starting certainly I or you're be than obviously will now. a lot when green ammonia, think scale

can out handysize, do right, think we the over they where of they're So especially going basically. handy, get European ports, in into and anywhere

So we lot trade for ships do the sense. think of a handysize those makes

the -- we naturally Far so storages the the through Now at, sense in our what especially vessels that vessels looking a larger ships. more East west again, for of size some right? come. think move we just ports terms or multiple smaller rather needed, blue fit to will lot expect with handysize ammonia, you the of the ammonia, projects And of Panola -- make can we're But to do that green then ammonia, into

Unidentified Analyst

at just Page ammonia the on Great. And chart, stay I XX. kind guess we as the theme then we'll of on look

dislocation you of the see maybe rates market? you the trade in bit, getting rolling kind that versus little do said normalized of You elevated from the off to? the very some sticky. a attribute are of still Is historical? Because what that volumes are definitely Ukraine's kind some Or of

Oeyvind Lindeman

and -- Ukraine still Yeah being shot. have we are the volumes exports with the issue Sean [ph],

recovered So that. the hasn't from market

which some movements there's is us. of So ammonia, benefiting still traditional

So my normalization commentary the earlier was really gas about prices. natural of

So extremely gas last many during were of the producers stopped the when natural XX producers, high producing European ammonia prices months.

producing are Now they again.

demand, they're some satisfying but Ukraine is resale. situation of not their So own the

XX getting are to are we months now interest that ammonia. we in sticky, surprised I'm ships we more that stickiness charter ago, had So be three-four Remember, only have, many we to of it the that we bringing nine. the parties and inbound ammonia have for meaning renewed And -- the is ammonia and additional -- seems expect continue. a charters

for ammonia the is is going So not us. good vanishing away, which story or

Unidentified Analyst

and Oeyvind and thanks, Randy you. Okay, Thank everyone.

Randy Giveans

Thanks, Sean.

that, up Okay, with Q&A. I believe our that wraps

for anyone if want free any to myself, in. randygiveans@navigatorgas.com Obviously, dialing feel out have just or additional you again So or to you to other follow-ups, I questions thank reach team. the on

And want with a pleasure say thank been to I do you. you such Niall. to working It has

again, And everyone. we thanks So soon. talk will

Niall Nolan

Thank you.

Operator

Good bye.

Navigator (NVGS) 23 May 232023 Q1 Earnings call transcript