NVGS - Earnings call transcript Q2 2024

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Randall Giveans

On today's call, we have Mads Peter Zacho Chief Executive Officer; Gary Chapman, Chief Financial Officer; Oeyvind Lindeman, Chief Commercial Officer; and myself, Randy Giveans, Executive Vice President of Investor Relations and Business Development in North America. I must advise you that this conference is being recorded today.

As we conduct today's presentations, we'll be making various forward-looking statements. These statements include, but are not relimited to the future expectations, plans and prospects from both the financial and operational perspective and are based on management assumptions, forecasts and expectations as of today's date, August 15, 2024, and are such subject to interior risks and uncertainties. Actual results may differ significantly from our forward-looking information and financial forecast.

factors reports are and filed these annual in Exchange about quarterly and with information and included assumptions our Commission. Additional the Securities Mads CEO. I Zacho, that, will pass floor With now the to company's the Peter

Mads Zacho

both Terminal share fixed income. we expansion, back which more the again, the of with robust up deploying repaid the $XX bought and period QX during Please turn The generate QX debt continue To earned capital in rates $XX dividend X% record strong the then Adjusted compared on was EBITDA of in also Randy #X. continue but is after facilities, XX% will Ethylene This revenues we Gary to with outlook and operating higher on the utilization. This then capital EBITDA into now QX in analysis. revenues for and quarter results. QX also and by performance, more go with year. of return Navigator year. the will key to sheet same of of the or in another I'll million, for XX year. both begin after our well also to I'll we we million yet buyback position driven balance data with, Page even QX strong both this XXXX Yet last is of continued our set above review our The net cash detail over up shares. a combination the and bring $X.XX of QX the rest even

Oeyvind from X.X for than X% is and continue Export pushing results during bought back utilization direction tonnes noted the bit continued and BW which provide $XX $XX.XX higher down QX total up more per Ethylene will pleased context track above the operating for We're a average terminal of period payments you a QX, on last and our venture expansion last of we this minutes. XX%, Terminal the Randy with of utilization to quarter, above in which addition, rates million and The XXXX our in more XXX,XXX revenues. was rates probably also same QX across progress are Throughput and thereby rates joint and same Commercially, We continues for at continuing. high at in million achieved that year. completion than that secured Group share. with In few a and the period X% improvements at TCE we is our commercial and $XX,XXX, year. the shares

significant We clean COX some the have lying transportation ahead time about ammonia. for opportunities the and with of now Navigator for talked

We remain near produce potentially and Navigator. near, outlook ammonia, pleased progress for about these ammonia, both significant to paving committed very within way confident but the are but are Within flows in We of for fronts. absorb on None markets a entered have we new have into business the significant both with we've cash important an MOU term. into announced TenXX. the very our and investment term, for or will for long both small UNICO mid

on bit that, continue. supply financial we expect for new pass XX% provide With you older this at higher the near We to expect being to buildings carriers, now, Gary, With see our gas on charters results. utilization renew you rates. continue international to of to and more transportation our and time sold limited in can you, it remain vessels little just out I'll demand expiring in QX, handysize over segment, so trade detail for a we solid

Gary Chapman

million our the our the which quarter non-cash of XXXX, line were non-recurring average the positive XXXX. In cancelled. In the compared and of interest liquidity. quarter, first operating results shares total rate we million by movement that previous net long-term which time secondary some the BW derivative back market quarter last quarter by are the number day new larger expenses first $XX.X swing held in taking $XX,XXX the first quarter on XX.X% in administrative boosted and operating second million, still primarily million on of our really our results steady have was principally turned vessel per bought to non-designated of $XX,XXX saw X.X the of the in income XXXX cash XXXX at as despite to of record mentioned. On $XX.X by of in general to related the quarter they this X, adjusted at of over EBITDA, equivalent high additional second depreciation shares $XXX.X unrealized compared in were $XX,XXX per Our which the the vessel being we and strong figure in quarter, on our the had offering and valuation of against second in day was impact quarter also our Mads quarter our day XXXX, and XXXX with our XXXX, incurred charter and the a million. We XXXX for rates XX.X% stronger again, and concurrently of but or quarter of related another quarter just negative, with $X.X thus those second place instruments some accounting drydocks second movements were to no the revenue swaps in per X that movements impacting common year, of quarter, continued in public million second Group, with, Slide over costs progress utilization

taxes, unrealized our adjusted Holdings Then million, of Our which was net share and in at export attributable reflects primarily income profits $X.XX, with income and to a stockholders Navigator per in an XXX,XXX of volumes joint deferred terminal the a derived earnings share. Ethylene venture, QX excludes sales and overall, million income, terminal or our on tax Morgan's resulting $X.X vessel $XX.X were in share from mainly those about will line and gains of million $X.XX our Randy and terminal current derivative ethylene terminal contribution more some from shortly. talk losses investment ethylene Point. XXXX $XX.X net throughput basic any instruments was of per tons,

days, new from vessel into our mentioned, coming EBITDA generally in Mads utilization translated and million rates. strong and which the increased quarter, combined As record available was $XX.X adjusted robust earnings ownership with second charter

in June that's $XX.X despite $XXX X a payments share plus in expansion million buybacks scheduled with remains our loan Our paying XXXX, strong, progress balance repayments and balance the million cash XXth, for on and out ethylene project. $XX at for sheet cash equivalents very Slide quarter, of shown terminal and second million over

in anticipate Our we generation operations total at XXXX available of from robust third liquidity XXXX. June currently our further $XXX million, cash quarter XXth, and the was

XX.X% the the debt. We pleased for and cancelled on adjustment March to the new transaction As we've of existing of XXXX updates sale leverage terms to our fleet. We months which expect well be into in in scheduled in in that a to million, to $XX.XX the the secured facility, capital loan a work of June payments at on is leaseback points secondary XXXX of of was concentrating to comfortable more they including XXX and already pursuant our environmental to sustainability-linked to average ethylene graph. rate both year, of also basis have and debt common to existing investments unless within of we arrangement, we're cost EBITDA cost and was net matures credit repurchase on and term value refinancings and to year's part total and remainder those significantly of highly see in million basis is as general result the $XXX.X to a points, commitment improved provide for asset to and the in offering in XXXX debt may amortization project were We a and refinancing our unsecured and we noted, be Slide as the margin includes terminal streams, over Slide one Group will net of share, than facility XXXX. We're shares debt our events refinance which the which enhance and further currently other company XXXX maturities, two we we'll will our that very our XXth, our bank XXX needed Xth, planning due existing leaseback net of BW for the six-year in from as annual bonds our our to X.X a continued was $XXX share believe impact in as entered our the complete it. On we used XX $XX.X were we're to and projects this also our of September X, be were in cost $XX corporate of October and and our continuing to on that over of million our remains And October cost XXXX, which until looking a August Navigator the debt that XXXX margin XXXX do million. some considering facility, liquidity reflecting arrangement. We're more XXXX, say company. million share below March finance through X.X able just basis report which returns. capitalization underlying shareholder during repurchased of fund new facility accretive releases June liquidity our XXth, time efforts at we negotiated given per our XXXX, additional X, at expansion of reductions XXXX, just existing progress. On company target And to the to up $XX project to positive up very another times reduce secured can later and for then that our revolving with adjusted per the working pleased facility then already purposes. The cash buybacks, you X that the for with is lower to pleased our loan over points, sale debt Aurora average our June as

and for steward As XX, per $XXX looking but capital. On there which and that meantime, estimate, business but we our estimated breakeven rates, remain year. Even our in number and positive quarter to we quarter day, previous calls, enable to debt outline a heavier generate per continue Slide with headroom shows recalling schedule TCE look shipping scheduled per the debt, our share drydock for XXXX our our a of increase $XX,XXX with significant which of reduce XXXX business' second earnings distributions manage figure are our of of repayments $XX,XXX carefully, charter today's was Navigator average day and relative we'll breakeven cash the cycle. the we're projects very to mentioned the day, it in this previous at, actively is such at to latest an to a slight compared all throughout buybacks, includes active this level our considering will a capital EBITDA

quarterly many yet a results quarter from historic the presentation. Slide showing guidance XX unchanged on updates quarter's for ranging quarters first outlines expect high all across As XXXX. are cost, ethylene to of as larger, given guidance again our our our OpEx to vessels. despite well from our narrowing daily is the positive XXXX And differing this arbitrage, quarter third year and adjusted OpEx, admin and segments, the size to materially the demonstrating we full currently we record to broadly net and have quarter complex the across the present interest and of vessels very for we able second -- following in which ethylene right figure our expense, for as been vessel consistent XXXX for depreciation our in of continue report like third general this smaller trend EBITDA, more And is rates vessel guidance now. XXXX

adjusted On EBITDA, our historic the Slide second we bar EBITDA an quarter right adjusted for on side XXXX, annualized this EBITDA result. of adjusted our XX months' XX, and based show last

time EBITDA to sensitivity increase provide million EBITDA charter for the in then and average each to vessels' me, right, Slide on day. Then addition adjusted for illustrate $XX $X,XXX rates the per on increase In some finally an of scheduled approximately incremental XX, update drydocks. an equivalent in our bars,

anticipated year. completed fully were of in all vessels CapEx which drydocking plans. total days which and of six We then $XX.X have included We first million, is during the XX half XXX XX vessels XXXX, flow scheduled our drydocking for the in expect of the of costed, and total for off-hire cash of a scheduled,

utilization. to has momentum reminder, the have completed the to some set end costs we're step shown of drydocks we've before, and very complete and talk XXXX a more as below, install on and the the out financially in EBITDA, important key remainder Navigator a Oeyvind technologies opportunities also and leaving figures more vessels and scheduled Then over position to an all technologies we're rates our provide that drydocks around about now As is these three good and further we with scheduled period. those operationally looking to disclosed. Overall, our outlook. that many of our beyond. With noting expected detail remainder very XXXX their August, said, million with on plan XXXX to record of keeping high drydock of during by I'll TCE hand both vessels to total these completed quarter similar XXXX. Also, commercial energy-saving seven some on remains a one refinancing are interested, timing these to here finally, and We've taking for had we've at payback having those cost of are for $X.X of forward very short guidance which that previous adjusted guidance drydock

Oeyvind Lindeman

Slide XX. Let's turn to

be shipping strongly and petrochemical by demand. Our ammonia earnings days to continue supported

in and we double-digit ammonia to vessels employing vessels trade. now growing uptick recently this carrying are in had up an have back We XX

as the We expect the ammonia clean recent are on we side of decade some continue to shaker of for ammonia strong give the end to ethane Asia be and be mover butadiene remains our exports total color commodities positioning XX% and to semi-refrigerated emerging this both to demand It market. to will for providing relatively our of our fleet. Long-haul in shortly major to see to category. the exports side is butadiene today towards the has nice support ammonia well future. Significant infrastructure maritime proactively are and that U.S. the from is also demand Europe part foreseeable shipping growth as for forecasted transportation this Randy robust, provides earnings of days. returned. major announcement. Petrochemical ethylene within a the ourselves positive

The second unseasonably XX.X% quarter is strong. utilization at

you vessels. Page green second quarter utilization fact, have point. very we is In The the line The gray see, with happy those illustrating XXXX us for top it our average, with and July just third which well high quarter next our the the we is puts trajectory is to above ammonia for the are expect left They're graph and into continued the months. The in The our area gray utilization today. And high a historic as second line highest the time. the semi-refrigerated fully seen is quarter, represents coming lows fleet. employment represents our graph right represents This throughout countercyclicality shaded long that XX left trade dotted all on a utilization time XX%. five-year our in our and graph this can refrigerated on bottom pretty the and is of years. above and for we're average all at showing the levels charters in The continue. showing employed good bottom

These ethylene vast however, petrochemical we our mostly under exports showing extra vessels both dedication demand Here somewhat are to distribution the due address from in the ethylene-capable top graph and for also term petrochemical customers in majority XXX% Page are these ethylene The butadiene. The are that, fleet. right as cargoes which ammonia of of from near attracting cargoes is, employed from factors regional U.S. such ethane the a to The LPGs. recently XX. pressure fleet external utilization of and couple the exactly on will is

gas highlight gases is across production in natural America. the get XX, States still positive we in is the important Before One it's United is can liquids it of the of production hugely gas production short-term board. to XX% the that of the America. liquids of This barrel Page Beryl do on impact typically of as into to natural on the production continued rise and graph rise. consists of Excess should price. to translate Fundamentally, left, transport our North you on ethane ethylene the competitive see on-board vessels. And the we this case Hurricane

However, that and season. unique there hurricane the is element the that disruptions sometimes causes region one to is

ethylene Most in made ethylene. also It can up They production graph Beryl is Beryl impact. The area on short-term which Houston for year, see but light capacity easily shutdowns, landfall shortages It hit Now, at The in right in ramp the clear many can a represents again, area, beginning made U.S. of U.S. showed of a the many, logical, major the of of of which the blue this And disrupted give Hurricane pretty producers Beryl. dark line, caused ethylene power residents. local low. anticipation July. reduced an ethylene the issue. idea production the inventory time, same will levels, blue when peaked we landfall.

on While play couple pricing laws revert influencing over forecast demand at production and to Page months, are inventory prices back we ethylene near normal in term. Updated industry of levels experts supply the and ethylene the XX. the next and of both are to illustrated

a Here we The can has by $XXX ton line graph. recently. the in price the left-hand following impact gray increased clearly U.S. ethylene by see the about

Whilst large of ethylene for Historically, risen, arbitrage ethane of the are the issues up the updated service. various on we requires just the we the gas due we assessment are ethylene is proportion It is ethylene with to carriers picks price on XX. see slack discussed volumes quarter, the the is par exports has fallen. challenging ethylene but price shown cheap. short-term adjustment and shipped Europe to on a small broker of pricing to is to exports time any on from A uptake. increasing other ethane cargoes for have most last segments ethane economics vessels the which seen price freight remains current to being Page dirt Asia, fleet, landed our as less the has Asia charter small Clarksons less very seeing most. why segments good. The for $XXX see flat. available XX-month is and is reduced Asia. This Compared handysize

fundamentals all, healthy. in remain robust. all So pretty very The

Mads, completed outlook higher in being have As year. are renewals levels our time mentioned by the charter completed last all at been compared and to

Turning XX, short-term supply the unchanged. XX% are Page aftereffects on to existing remains above Apart from in has projects fleet very of and handysize age. All these order the vessels handysize of Beryl some Hurricane XX we years price, increase pipeline a of There It are manageable. many QX is U.S. the have of growth this fundamentals in and and entered note. now. positive to robust right Randy talk will ethylene and on general the are exciting X% the

Randall Giveans

that, open share. several regarding I million market, price the quarter in over the on that our first pleased for XXXX, get up second announcements $XX some of the months, but in of we some we're we additional of XXX,XXX to to for turning we the second to details totaling a common recent an developments and want average $X want of With announce on per provide return canceled highlight next those NVGS capital shares of during Slide, repurchased we quarter, before to Following little XX, to that, made the announcements.

Navigator has had this million discount our note, repurchased we common in prevailing no a per price, our was helped Additionally, Group trading $XX from To throughout at free summer. $XX.XX cancelled done of and transaction for million June, to float, increase shares actually or to impact liquidity directly the this market X.X BW and share.

of the $X.X during looking third that's line with equating announced income, million, per XX% has as cash we're share to on XXth recently capital shareholders September million. of of quarter. our Now, quarterly of ahead, shareholders Xrd, this to record in below, $X.XX $X.X declared a a or to policy of cash and table all return Board of of returning net The dividend payable illustrative payment dividend September

share Additionally, per with our of NAV shares use over $XX policy buybacks. portion of we'll variable our share, still trading the for capital return of below the well well

quarter-end repurchases As such, NVGS to of we $X.X net equal expect income, the the million million. X.X common that share that dividend such XX% another between repurchase shares and together and of now

capital for to As the again priority past a seen this shareholders returning few and will remain years, especially over us. past core June,

regarding terminal, us required up Engineering of from underway, and Looking XX, next on be expected following continues announcement remains To mid-December completion total expected at CapEx is agreements to date complete, so paid on million, is the progress the year. hand nicely. completed date, construction remaining the and are be project $XX $XXX now. The on remains project well the XXXX, ethylene cash financing our previous expansion later months the contributions this four export budget from Slide, our with from million. is paid capital to we've to new around potential until now

the see Hurricane the near but Beryl. nameplate left you U.S. can coupled and negative Coast July a seven chart, on the capacity ethylene was unplanned planned throughput June, with or to dip Gulf impacts crackers in due outages that's there of remained along experiencing throughout As bottom

as the contracts but is take are the flow quarter seasonally or The seen in despite remains softest Now, quarterly third movements. you've annual recent for throughput, quarter pay. time over the cash firm the years,

the months. the we coming commercial weeks for signed new the customer agreed volumes, larger in terms contract Now, as to and second capacity be to expansion and the as continue expect contracting multi-year is for the will that coming be contracted the to additional likely offtake has in the

turning pipeline BlueStreak storage the capacity. the two joint and XX, Bumi our COX Slide and on releases, takeaway press capture targeting specifically active Sea, in in North carbon venture with no recent efforts most starting U.K. with supporting emitters remains Now, our to Armada stranded

bringing to we the component will floating units, U.K. FSIU. Last the be The Now, power transport the of and storage from an Uniper's the agreed bottom liquid COX tanks as Isle and month, proposed shore-based meet recently picture, driven partnership a belief we in on decarbonizing carrier Coast growth clean in this investor the with early the injection carbon entered of joint lead export with potential export to firm to storage the stage aim our for immense value and Uniper project into MoU to ammonia this venture help Energy, of of U.S. primary sustainable leverage COX to people seen to of Attis U.K. By reduces of the the TenXX liquid clean Grain environmental project a a long-term implementing COX a has jetty-moored an we by developer and facility along the expertise and right our our feasibility design in Slide XXXX. impact, of explore million collective table, the to solution capture co-investment can perfectly collaborate from floating the storage the value COX government's an the sector storage Clean with ammonia, alongside XX, COX shipping process Texas. sustainability into chain, and aligning by $X.X and deep Energy goals. On adds our announced vetting after Gulf

to phase early development initial train year of per producing consist X.X project with expansions. first with up XXXX. This it the project equity infrastructure and an a option the completion potential export 'XX of is expected investment late date terminal further an single gives us the toward and or of to $XXX The a of for ammonia and million preferred tons pre-feed capital studies million FID of for at investments the will ultra-low-carbon larger of construction in in feed make subsequent investment

conventionally BlueStreak investment our take produced Also, should joint coal Europe years. Finishing clean Now, in region vessel a and ammonia-based to and for the focus build this principle optionality that and clean Asia cracking power step venture for ammonia ensure helping transporting Solutions want coming as a a for and then ammonia-fueled for are to us the continue contributor ammonia business. excited ammonia, some ammonia, Fuel fuel using recently transfer as our very which flow all TenXX to cash Texas be will from demand recent into ship-to-ship a the terminal plants, as a to areas of already XX, Point our power Analyst currently generation, I high as upcoming Navigator first and as long-term be project displace tours is invite in evidenced Azane for on more our now. in afternoon, ammonia, Slide Gas. The co-firing a in of investment in this Day here the ethylene Gulf be fertilizer. We're to will of approval and our world obviously an both to in bunkering, for Houston, U.S. key months well you to Morgan's by will the hosting globe our key producing Tuesday XXXX Investor ships for numerous meaningful exported hydrogen, November into be personally across first we'll one our our and be and of few for performed vessels. ammonia the bunkering then On such export around vessels XXth, stable

picture some of then. With partners, that fortunately, see carrier. host XXth, for financial we some turn our November at imagine unlike of for right today's morning, will look and get some medium-term to Q&A. climbing presentations and closing you lunch that, a that now customers, we'll aboard that an it Later as shareholders, analysts analysts, better certainly yourself dinner covering a a heat, I'll market Mads the take next investors. and Then Directors beautiful well for of back have be all as ope members event and to our our ethylene team weather we'll appreciation to on over The a management and trends, the remarks Just update strategy. to will the before in mid-November. our evening, host Board current

Mads Zacho

today's and net presentation million. summarize and financial the at record we quarterly million of results income adjusted that when of just was for $XX EBITDA $XX we it I'll look adjusted QX, to posted see great

history, quarterly dividends company's shares. continue illustrated leverage buy the ratios have back sheet position, by to we'll and We cash in pay the as the and and robust cash strongest the low balance

As shares in pushed lenders. million out share $XX from you and appetite with saw, from June. We we buyback did a new BW forward directly or large strong X% completed of existing our of refinancing project and

higher look you rate just the picture we've the year, XX% refrigerated TCE the and day. average global supply was time That's fleet. for business, and fully a If XX,XXX remains for utilization eight than our average book at and our order charter levels per period fleet extensions QX aging to seen an was handysize attractive XX, last the in at and small highest above same continue years. Semi vessels with compared that more the shipping

volumes stay the of On a firm time ethylene U.K. energy budget decarbonizing terminal and on with government's with through Uniper the for ethylene levels, aim this and memorandum of end infrastructure, set sector. is understanding completion export on the at into expansion help to meet export of terminal year. BlueStreak power the the entered

million into TenXX lead Attis just Lastly, Energy. Energy $X.X announced Clean we co-investment alongside the investor

just aligned you well with thank here, all the and that in to you here, really are you, very listening much a that see very it's developing at to Navigator of that and in putting strategy that can We've committed I you Randy. initiatives previously hope front busy a summer. been As remained say you. I'd we discussed can are with we the high back see pace, you they for

Randall Giveans

your is question, open. line [Operator Instructions] First

Benjamin Nolan

I've got of couple a questions.

share Or a from maybe term were being doing there is, substantially what's there The patterns to the that but ammonia, the of changed? business fleet about Oeyvind, about percentage doing curious, other percentage a that's larger you have appreciating more just is greater of is trading a the is Just world? ammonia categories today, longer the around think first push ammonia? of being curious that the that function that's the it how taking fleet into of lot ammonia now. going percentage being transported was I you more be you're or driving talking

Oeyvind Lindeman

handy also are world because ammonia servicing, trade consumers producers more quite else, taking business. for ammonia. handysize The we holes, requiring growing a needs share in are trading They It's fertilizers that. there are different anybody changing that the vessels the plugging is vessels, exactly for optimizing and are It's great lanes the market XX general. but market. not It's from of they significant.

New of that coming advantage plants in will up. It is and taking which continue. are growth, participating and we're increasing

great, a servicing a few a great for will think place lot but industry. significant which to in be come XX with starting I quite that we owner ship emerging mentioned, years, is you vessels, are As growth from any a today

Benjamin Nolan

work? where early days those you when what realistic put guess Then be of don't capital question, those line would capital have and need infrastructure, thinking a exactly or do be think capital? is new from will those to on needing and the actually think event you away COX businesses 'XX and being appreciating my yet, for which calls play strategically think and a a you about to number sight the greenlit and planning are new you there of deploy how but to are, under years I timeframe are quite you that really about we Is second ammonia that out as

Mads Zacho

portfolio, are ahead. anytime that that ensure to facility the at first business clear the materialized the projects in you they are to of talked of about and ammonia number BlueStreak don't haven't on here have. operations talked shipping goes and and a the the When matched there think talking before are they because that we're they That'll TenXX, means that pretty a time we've have also 'XX'-XX look about there, soon. active timeline because at investments be that need as we ready to exporting TenXX I be not development place that We haven't the if of been happen

well BlueStreak, life It's next other could there it also contracts that happen matched or side be a what contracts newbuilding then, when on little exactly within that would side, here be just here. COX think that than against shorter end that uncertain fuse can long-term have COX come year to contracts already the to decade, it's two. the ammonia a projects bit we pushed toward there of for happen. with it's or to even potentially on customers chartering this other be the to for It would ammonia going describing on I be going but comes may when or the side be the into

the Ben, the long-term we here, if going clear make contracts. that would for to segment be and speculation. have be not Just into would ammonia into counterparts we COX We ships building on those segment, credible

Randall Giveans

line should caller, your up here, Omar. Next hand be open. see I your

Omar Nokta

a came The the you that then the just $XX,XXX lot suggesting and VLGCs come in term but went It rates coming of from straight indices propane, fact that average you're handy higher but slightly, rates went some cargo see some segment, charter it's the know didn't rate and Historically for quarter. had not did you maybe at specialized more in felt also have $XX,XXX, the than obviously would it continues up to we up first the in off climb, you're just but you market pressure despite from ships. off off. I and higher. big carrying rates

I you, Just relative what fleet. wanted guess, part drove to get a of your that, from the sense on outperformance

Oeyvind Lindeman

insular We the what to XXX% in happening VLGC are is not market.

trade do we different However, on and fundamentals. premises

that On because competition direct are is they is or our they that LPG not are just we're with there showed not on July direct more that into vessels decline trade, either. which and there That semi-refrigerated competition with seeing necessarily has really you as most seen the with side, have. have do trades. We regional that moment VLGCs the on mentioned, above positive. and side, It's is of not is graph pressure, the to that what that at the from the trading a capability carry VLGCs, different LPG and only, that completely distribution, is our the

Omar Nokta

out and and a up Beryl business? here your impact or led normalize shipping you in Do the the just think terminal that's winter. the the third affects how to both we I quarter, a do that walked comments as then the to get business guess terms you of Following it the expect on inventories. Hurricane you in correction of bit through impact on presentation, smooth to in of

Oeyvind Lindeman

side, I With shouldn't take Randy as mentioned, matter. think time, on or they're on it the pay. terminal really

the exported. shipping course, being volumes of we Now, side, interested physical are in from

had, one July low. If we is you slide throughput very see of on that the

for on across than of fleet the higher we time. What was average that utilization not that period is our the really is ships. much ethylene XX%, However, exporting happening above are

Europe. goes We are that doing some to and

the with happening. great generally That it's However, up U.S. what If ethane on, have is world petrochemical slack. hat freight picking terms a is the any connecting production. day, in of cargo the is we we'll and really take ethane the

to think easily damages There any side, very because pretty them are damage. a at ethylene turn down it see turn correct slowly to They exports can short-term we they thing. will any which because the back doing a are hurricane. August. no itself, the On They It thing. in of our That blip the you'll is in was parallel crackers short-term that. operators with That this was it's now ethylene These of hurricane in of savvy. and up, climb expectation. avoid anticipation

Omar Nokta

perhaps. Randy, to you

that's fairly one the offtake Congrats mentioned the soon. You second agreement first a that. entered into you here obviously terminal underway, on expect expansion and and and

with that we are you general, offtake profitability able of in portion should you contracts? first existing any whether color the in Yes, Then of in facility? give. Just assume can color or any give duration line the on terms agreement to

Randall Giveans

but a when expect we if in actually of going the or offtake the majority are it a well, into contracts it incremental they on X, what you Pricing number, the in we to offtake bit take want to mid-December. but two and not take the some or of that been contracts, pay, All revenue set gone then for of one over volumes, late. Again, of go quarter. has again, as and up a the the the get the next it's years. give contracts is completion of the for a timing. to make to quarter to be pay in had the bigger be we don't, take If They extension. into little capacity the we earnings that it. but lot It's might that as sold. Again, from there is deficiency expansion specific up one's won't by longer time Jan these size duration. expect more have but terms the color a is commence, they lag. was deficiency going cargoes, more not the just the Oeyvind By for initial, at recoup multiple Then It's don't slightly one-for-one terminal. they Yes. will as one-year than It's least time, saying, we was of a contract, good terms as or

Next should caller, line I see here, hand open. Climent. I your your be think

Climent Molins

the about asking investment. by start to wanted I TenXX

option the those again further would potential million in ammonia equity expel vessels? construct initial will up will receive once to as the $XXX to or You the preference as volumes to invest Secondly, preferred to investments, on you have but preferred? phase, with any be your

Randall Giveans

it would million. the feed which, first take the should to extend million two for million, Ben's be Really that through 'XX. likely $XXX TenXX to That's and taken deployed will next and at back For the $X.X about again, capital the period, up pre-feed investment, $XXX studies, three question, FID. into Again, is then be 'XX, throughout years would years. the say, construction

with upside be incremental return, side further correct, could potentially some it. to For on fixed investments, it a equity the preferred

project, for with we have on drivers this that one key was initial So of investment, this and of optionality. lot a the the optionality was

certainly color, produce we In but don't liquefy would to we We it Oeyvind terms add export liquefaction do also move on of necessarily we on to clean the or the the Mads to lot like we want in in to of our terminally the similar it. but what terminal, or want we ethylene, help ethylene move then and it, Similarly, side, this some molecules, we and the yes, please transportation, a with do. terminal. any more don't certainly on if ammonia

Oeyvind Lindeman

position the to All an to whereby stuff. offtakers and user, exciting. we to to itself, very sense pretty their discussing prefer buy to the the comes That good in most TenXX if it provide Likewise, include ammonia, and that what is that from we where clean are them Navigator vessels. That the delivered site. the Navigator all, then excellent And we is their align in of together to to are course, molecules, ammonia, vessels, makes then will service logistically play, perfect can with or discuss would economics. get Some into place. offtaker to the like of actually have end terminal that the

Climent Molins

You've terminal will but throughout on pay should remind that soften export the kind contract of pay us you run the take rate under the ethylene pressure come already what's on throughput discussed or take blow. or Could quarterly the contract? quarter, the the

Randall Giveans

$X that million, previously, real range not we will a what beyond in X-ish in In collect again, collect be, deficiencies third deficiencies, another July, as quarters quarter, shown those but it's an won't in time, take seen XQ, meaning the if that. On kind you've of of will quarter. million-$X maybe It'll we've two all dollars. of basis, some likely there are, we million there average

might here kind on be It You historical but does be can million? million of it chart and mean $X our might basis, that single at in look a quarter Absolutely. it? a $X

haul, Arctic range, from is long it on good the deficiency certainly So if above you million-$X look the or over but million timing. Kristoffer depending a $X maybe that, go below could

Kristoffer Barth Skeie

take correctly, throughput? sure it that's I ramp that we terminal hurricane? understood what by for you it because operate time? up the see some impacted the I'm also seeing not on Can that the was take if case, some but light are side shed the just VLGC you of If you volumes long how the to on sort do

Oeyvind Lindeman

no itself, with issue the no to be wider terminal lies the of the Beryl capacity The system Just clear, damage, the issue because production area. Hurricane. in

course, inventory. there the that capacity, the same during into they July, capacity demand So of and but dug domestic time, production reduced was at

but ethylene the caused European discouraging increase, that exports ethylene to So Asia, exports to remain. price

as are to mentioned margins producers prepared ramping remarks, the It we pretty are no makes These hard super they cheap. for damage. because the Ethane in physical up is sense can. good. run as as So them

VLGC petrochemical a is a It it's parallel. not thing. So

Kristoffer Barth Skeie

some investments mentioned that a In And terms sort price looking may further doing, preferred be on also such it that you how can of of sort you investments. share equity? are the you're ammonia you to potentially color of

investment that itself in upside take also sort you of not equity into of of type production can the facility? part the So or equity sort and a you so bond only of facility of get sort

Randall Giveans

In equity that. above capital. we terms but well of cost not it's disclosed it of We preferred can that, our at just leave the have probably return,

equity with is initial the there $X.X or exposure but investment, larger intended of larger probably just risk a taking flows equity, of cash million, the of to terms component the an equity somewhat some of that, the investment, we'd prefer kind that provides for commodity there, to the level. stable In pun preferred, that project instead on

the take again, the some $XXX investments, risk for larger, a our $X.X upside. rate, some maybe preferred exposure for of correct, above equity, some maybe million, preferred equity a there's be sure. up equity, could initial incremental commodity million, And of then So to capital cost fixed for that would we combination it be

our that of So in Mads, options few a ends now. I believe from years lot final Q&A. comment. a

Mads Zacho

thanks No, questions that all we for and the in, thank to had. a good you listening lot

going been good quarter forward and it as as and sharing look it's the we along we to a our forward. news comes develop business So

have you a thank day. So and fantastic

Navigator (NVGS) 15 Aug 242024 Q2 Earnings call transcript