NVGS - Earnings call transcript Q3 2024

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Randall Giveans

All right. Thank you for standing by, ladies and gentlemen, and welcome to the Navigator Holdings Conference Call for the Third Quarter 2024 Financial Results. 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 call is being recorded today.

As we conduct today's presentation, we will be making various forward-looking statements. These statements include, but aren't limited to, future expectations, plans and prospects from both a financial and operational perspective and are based on management assumptions, forecasts and expectations as of today's date, November 7, 2024, and are subject to material risk and uncertainties. significantly forward-looking differ forecast. and may results from information our financial Actual

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

Mads Zacho

year. same QX will pushing then market since that with, year. for turn sheet tightest and repaid TCE October, to in TCE Nordic our Page This morning, year. up is return you joining for albeit strong the bond a data of debt is of Oeyvind unseasonally our XXXX. Please a we we we then of and shipping after the came year. just detail buyback after capital expansion. The deploying period. by an combination the for revenues, dividend market unsecured balance slightly over Good the XXXX and QX QX for the This the was the rate. rest at outlook below review performance, to to Ethylene capital secured income. $XX,XXX, robust continue last EBITDA this last at remarkable the more even than million continued rate driven compared share analysis. In any I'll higher into Terminal up issue the Navigator key and continued which up in To $XX in the is quarter QX million, begin of of go $XX below same I on of and thank in This was our the XX% QX guidance, compared In X% in Gas and quarter, bonds will above the and X.XX%. of This Adjusted Earnings million the same period generated strong with Call the $XXX last given spread continued position softer bring it fixed X. earned Gary, both the line we with The facilities of will QX our Randy more period to QX year. in utilization and with rates somewhat We $X.XX included XX% TCE the we XX% issued result. new last saw higher over achieved same of net the conditions XXXX. Commercially, XX% dollar-denominated average cash

and in rates to the of our completion continues down The Beryl significantly a This terminal tons was following demand. Throughput inventory with disruption market are in Ethylene Export temporarily for by with that caused payments XXX,XXX at hit the quarter. the TCE joint up and expansion pleased We production at XXXX, overall was QX was push levels. Terminal transport Hurricane ability ethylene our for venture track on progress to by continuing. softer

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

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

available at as program dry also QX towards be intensive renew to utilization vessel than coming docking have higher We'll expiring this what QX, end. days we we've We higher seen and more expect the in our to expect charters is to in vessel continue time rates. year's

in robust capacity Terminal from newbuildings Ethylene the carriers, supply international nameplate for transportation limited solid older and QX. With vessels in to to near of sold handysize expect trade being We out demand export on gas our ESG ranking volumes return just the segment, just our these we to that scorecard, Page consistently #X. will this want Research On in market expect highlight which Webber conditions continue. Please improving to was released. page, we turn

governance As know, may particular independence focus on the scorecard places you Webber conflict board and like transparency. of absence of corporate topics interest,

also be ranked among SEC as are. and regulation are pleased in very of are segments these subject many XX We among third to listed we the ranked be -- companies, to and leaders the to

So we ourselves are comparing that means benchmark strong a it's to.

transparency. forward, standards in we'll continue higher Going commit ourselves striving for governance yet to and

just just can you Please a little over to result. about was financial bit go ahead. the a I'll you, that with summary. detail hand give us so it that, And So Gary, more

Gary Chapman

Sure. Thank everybody. welcome, Mats. And you,

quarter financials Slide show our third another Our quarters robust solid on trend maintaining many recent in now. Jumping over XXXX result, X. straight

utilization, this the typically million EBITDA this a the was the coming keep rates also overall, stable and our can't third for equivalent for day still on first X be results $XX.X that in was Following period, a good are operating XXXX, rates better charter per of charter the utilization seeing we will quarter continuing but the quarter in quarter expect to third from and against quarter $XX.X of million $XX,XXX compared context, XXXX. In the time third the the which quarters quarter and flat compared lower XXXX, by offset but XXXX, of it of strong year marginally previous XXXX. average we Oeyvind and rates robust the we the this were of $XX.X time, $XX,XXX record third on elevated costs. Unfortunately, and up to quarter already and quarter results due this compared to equivalent $XXX.X up the only charter will looking explain revenue in was shortly, broadly the XXXX. seasonality, average yet but to of million terminal, per slightly second somewhat quarters $XX,XXX healthy this we general still of of with in consider adjusted our report in very quarter from admin marginally like XXXX, of and XX.X% compared depreciation time quarter total on quarter third expenses day line at continuing million quarter XX.X% up X robust quarter operating than to in operating another compared average fourth to were vessel are as third first of And with at third XXXX, quarter XXXX, XXXX second of to from third day of the slightly per quarter. And

in costs to compared further third quarter the were compared quarter are though million still we they run the some nonrecurring elevated of admin our Our rate general and booked down as to second of XXXX, $X.X slightly million the concurrently recalling were in secondary X.X costs bought legal to back BW that third X then those million costs the shares, the offering public mainly by which we related canceled. common Group, quarter, of of shares

our of movements long-term in income, had in XXXX. to no This in of fair XXXX related on being non-designated value but a net in second against market and $X.X loss noncash further derivative quarter the cash movements the of loss our million resulted loss which instruments third all or impact the which unrealized affects million of $X.X our quarter interest Our our $X quarter the a of million of on rate a swaps, liquidity. third in

exchange on noncash quarter third unrealized reported also $X.X gain We this million. a foreign in of

overall, and as gains unrealized Terminal QX line income income a Morgan's being Terminal million with Export million per our tax Holdings our on XXXX $XX.X throughput volumes attributable Randy excludes at deferred from and And the profits XXX,XXX mainly $X.X resulting Terminal share a some on foreign primarily income, adjusted was $XX.X contribution $X.XX share. Ethylene in million, net derivative current or shortly. from earnings which Our and Ethylene reflects And more terminal Point. share $X.XX and will taxes Ethylene were derived tons, stockholders tax joint of Navigator to give usual, per currency, of of and basic detail investments venture. net our of losses in Limited instruments in

loan bonds XX, remains strong, cash shown then on balance out Slide new our $XX.X with sheet cash provide Navigator $XX and, And reduce existing time the balance September million of million September will impact repayments fixed paying as facility at just basis million These over working also at under X.Xx in used liquidity that quarter-on-quarter to September company to XX, progresses. On our on from a facility fourth for further updates our debt Nordic looking facility $XXX.X Terminal pleased into points within continued new XXXX, facility in we're our leverage against the push we result of the remain the quarter margin $XXX cash debt debt-to-capitalization of same XXX cost below These and X in XXXX $X the of for up generation XXXX sustainability-linked million and operations facility mature released one to which debt. In reflecting million we and planned more to expansion the September debt second XXXX, the that improve to purposes. This margin unsecured March Aurora with out on was credit the a been XXX hand completed, proceeds replaced, company scheduled our per XXXX from our This this one position in that $XX already a total during which despite that be repeat And is fleet. Then our our remains in with XXXX. commitment to until environmental over was and buybacks arrangements in new debt-to-adjusted of our and the XX, reductions secured total expansion market. the progress still used includes to on adjustment concentrating existing September points be and transaction also call additional $XX leaseback the average have existing have our payments cost then senior paid for the revolving in around X, October was X, XXXX refinance XXXX, a Ethylene net has the in that basis credit we facilities. closed over project. credit transactions XXXX, liquidity just repaid to at was due more EBITDA X%. secured at improved debt. There terms are coupon months of for issued pursuant are call XXXX. paid XXXX arrangement, fixed strong And for new currently XX% over quarter, with further arrangement. We're continuing general, XXXX. We're streams, couple Slide our that to And new lower XX at this capital payments the in and the a us further a Our bonds mature company October of entered XXXX. We it on through Slide margin work loan repaid compared the equivalents settled very cash $XXX new $XXX XX, of lower average X October September million to share recently of revolving our XX, points, October sale significantly corporate on million to leaseback also XXXX a amortization X existing million likely our fourth sale X.XX% net a very XXXX. XXXX. financing again, and a maturities, potential And of our refinancing and bear time, of is bond quarter. On it of we and calls in and of maturity debt our redrawn, scheduled And efforts in liquidity liquidity over helped for million. the annual XXXX, total previous our loan remain cash of of successfully our X, $XXX XXXX of as on to our in terminal us to we'll XX, event X reducing which and XXXX basis of annum. in margin on may some that available on cancel positive year's scheduled meaning which November a to for refinancing and project in XX August repurchase to in anticipate our we to bonds coupon term average available that March and revolving than million, was X-year XXXX our target facilities positive further

for QX there Navigator scheduled some to shipping relative TCE breakeven headroom substantial the provides which year. Even slight Just very for expansion average third the is increase estimate, out, are project schedule as invoices to CapEx noting breakeven scheduled but a smaller in debt compared heavier this, expansion from considering is and quarter be previous may for EBITDA QX day, repayments today's to note charter close revenues dock the cycle. contributions up Terminal commence. On cash generate quarter our XXXX latest and project our throughout day $XX,XXX XXXX that was shows recording per rates, when all level expected dry Slide importantly, for XXXX the per includes $XX,XXX, that to figure that this end our in that estimated the we which outline XX, capacity also to our at but positive

been outlines and fourth for usual, As following segments, showing adjusted And the figure we temporary a shortly, many in year we've and XXXX the continue unchanged dip our to yet our XXXX for general full to the to quarter quarters given which Oeyvind updates in smaller our the OpEx the is of their interest our expense, guidance daily as this all our quarter this again which will very depreciation currently and quarter, and below well ethylene report expect different net of the historic OpEx, in costs, second as arbitrage positive third ethylene right vessel substantially across vessels from our for guidance able admin presentation. Slide complex ranging XXXX results cover demonstrating quarter on quarterly is our of steady consistent are XX for results the from quarter XXXX. despite vessels. larger, And across fourth now. trend guidance more EBITDA, vessel

based show side EBITDA quarters' XX our last right Slide EBITDA XXXX, and months we the of annualized bar average on XX, the an results. X of our On historic adjusted the EBITDA for adjusted adjusted

vessels for increase the average for the XXXX, vessels provide included dry expected were to $XX EBITDA the addition, of XX, as CapEx sensitivity XX, In docking $XX.X illustrate which per drydocking as for then increment rates to days and of and million each of September charter which, total say, our adjusted off-hire approximately day. Then completed XXX time some scheduled, in EBITDA XX right during be scheduled estimated bars we costed $X,XXX total at on an million, an Slide with of cash equivalent XX in flow and is the plans. in XX have all we often fully

flexibility for technologies dry a as the improve Slide previous to on having is the history future out previously, coming up energy-saving limit, $XXX $XXX with data a that maturity to opportunistically market and achieve terms bond the of on financial shipping up million bond and have to a some these on some initial set and settling the we've has our on oversubscribed decided efficiency giving we mentioned, XXX there to substantially further not if install will future. The that is technologies below. Also, bond bond and well-known point reflection... was bond able credit mobilize even in list market cost vessels issues. making believed at has XX, XXXX in coupon be environment can take the on environmental And issued this eventually our to get of high-quality we were our dollar-denominated the show refinance and these helping our XXXX And to wanted long XXXX. impact, we As issuances, $XXX strong our abruptly. We borrowing of with bond think million expected million we list XX. improve we strengthened And timing time, short provide to us XXXX, have around are bond basis early, as our favorable detail at although a docks not could with points. somewhat dry names color before, the XXXX, of $X.X X.XX%. since XXXX we draw top book better would gather and to And our Nordic are of list. Navigator data Many million in over which for of that then crisis operating tightest shown change know further demonstrates but we've a spread we Slide as priced, some in story given in and we this to explained that further we recent quickly at fourth issuer-friendly. names, opportunities was $XXX our to U.S. We it million total that this we Mads top very today we bond the to period, make of many the us with bond also cost the improvements. On of have, bonds, potentially market in more since recognize, payback a many today market, of you dock as in any a from at a

Randall Giveans

I Oeyvind, we you there? are think Gary. lost still

Oeyvind Lindeman

Yeah.

Randall Giveans

Okay.

commercial the Let's move on slide. to

Oeyvind Lindeman

where you, at. the Thank XX the and story for strong Navigator achievement of come and I've has And an margin Randy. quite is represents part we're position the tightest been years from XXXX, bond since and

on So to the slides. commercial

serves to year. quarter LPG of at historically quarter for a the to compared petrochemical services and employment. the rest from X/X's that our customers. We primarily industries, XX%, the somewhat the of for is result account together The strong considering X/X originate for third to demand period guided the continues the transportation and which approximately ammonia So ended slower fleet's remaining utilization XX% our

what Additionally, U.S. ethylene of from to we trades, limiting hurricane actively vessels the we impact ethane Gulf by switching could the managed season downside. the

Hurricane the As on In to ethylene exports ethylene way. prices led the was mentioned last affecting made production guiding by quarter, our provide the Beryl impact are adversely This I'll nameplate fourth more X and returned still and landfall detail reaching however, October, which in Morgan's capacity. strong short-lived. Today, adverse call, in have this nearly July, Houston in next brief, was the early quarter slides. Point we area the levels utilization exports. compared in has through in Consequently, are back XX%. quarter, to utilization for strong to a competitive the third higher to

important. to U.S. Turning and, for is the The sneak decade. In in surprise see to the EIA prices next hurricane. they keeps the peek. Beryl. the of can graph should we more remainder production the see our very more increase a Page XX, clearly petrochemical no The for to natural It the of for gas for shows on is the in by us NGL up. to details exports. case, Day figures which because impact Investor forecast gas any production. industry importantly, American Houston NGL is current the encouraging website keep to outlook, going learn about our the here's week in more especially Hurricane join And The market business, reassuring dynamics growth always you latest continued low, U.S. check It's production way. Back for middle

ideal operations, resulting looking light markets. in by represented Production to have cuts supply producers the when ethylene During area. capacity, excess for this aren't export we're reduced down period, blue

positive the ethylene operating our and Fortunately, by to to from corrected was This cracker the are rates. right-hand graph. ethane back with on year-on-year this pre-hurricane displayed expected vessels of business. The is and exports the in U.S. has industry handysize now levels

normalized Beryl. post-hurricane which see today, salmon key can of a very normalized, the to ethylene exceeding a October pink Hurricane Following is important. We dip with that is exports. the line, element months, the you previously levels has situation and prior ethylene volumes for are prices actually of those bold But back due October to mentioned correction

can freight Asia. graph we for on peaked Freight latest markets. The widened $XXX bottom the of August, U.S. based returned to graph and supporting XX,XXX XX, rates typical gray This Page ethylene. middle a various there, of middle call the represents our Argus' in but arbitrage illustrates and metric the Asian It ton arbitrage ton $X.X to exact The in is the now of price shows see now the per on second July be levels. meaningful Europe when representing value a to compared $XXX million chain. price ethylene has significant normal domestic handysize This August. to $XXX line quarter price So in you points in in as assessment -- for has adjustment correction, pricing cargo ton per tons. difference, held per to earnings freight difference the

vessels assessments. capacity blue passing months. the than volumes Compared line in months. transport have short physical increased has not the petrochemicals, keeps freight black, X In as representing LPG the the employed. Overall, large higher risen, also. the for in us. On the has regional vessels our our tons shaping returned positive volume nicely. volume in our obviously green XX,XXX addition to through positive up ethylene October, dark demand to and carrier, more distribution terminal indexed freight rates, ammonia demand with Higher Page through is largest very Strong to and volatility trend experienced our segment same services for semi-refrigerant terminal for a line recent well nameplate our being sea downside are rates XX, vessels we The see gas for in for freight recently

on time. years just age. I'm even side, supply and fun have book of XX, to week manageable him. there. quiz the here The unchanged topics stop remains go last is over next like so down these on Randy? existing X% of detail for in planning vessels the will may of come prices XX% the to of with Houston, a into leave some I handysize more mic at Randy are fleet, the On segment. Page while the on order XX as situation shown

Randall Giveans

Thank teaser. Oeyvind, nice you, and

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

pleased return on XXXX. So the announce XX, Slide capital third for we are our of to of quarter

want Now share. open totaling get we NVGS million price market, an before $X.X of to that I of quarter, highlight to repurchased roughly XXX,XXX common in average the for during per the that, third shares $XX.XX we

share In and of our a returning ahead. illustrative million below, declared capital announced just looking recently dividend dividend Board of payable $X.X $X.XX with this policy XX% cash million. time quarter. the that income of return fourth $X.X line Now in on December of or per table shareholders shareholders totaling we're equates XX, to cash as net to for a Christmas, XXXX, The to has XX, during and record payment all November quarterly of

well NAV buybacks. of below Additionally, trading capital $XX share, per of with the our the we portion for return policy variable shares than will of share use additional greater estimated

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

years Now over shareholders as and past June, focus us. a will primary again especially this past few for to seen capital remain the returning

new announced The in of vessels In Turning delivered million capacity carriers scheduled orders mid-XXXX. early $XXX.X to at for August, Slide XX. X to ethylene liquefied a price are cubic meter newbuilding gas each. and we be XX,XXX

a have orders dual fuel newbuildings and will for vessels largest in the They'll We Panama both able future also an through the current engines be additional and terms these price. To fleet. in the ammonia for option made ready note, transit to specifications retrofit as in X be for new They be our fuel of matching have the locks. the old ethane. Canal using and

at customers most these shipping Ethylene are signing contracts are at Now needs. looking securing will importantly, offtake Terminal our as ethylene their expansion looking support carriers also who

are with time And customers delivery. one expect discussions or prior multiple we to both to ships. the charters chartering ongoing interested on vessels such, As in fix

and vessel Lastly, arrangements paid next million to September, $XX initial expect year. financing, financing complete of we've in XX% we sometime deposit totaling already the in terms

Now Ethylene Slide Terminal XX. soon-to-be turning expansion to completed Export on our

contributions next the remains expected is budget project the and expansion to underway The our remains of in as completion construction date from on previous cash totaling you financing joint be CapEx on is month. continues new is venture project on $XXX million. To to complete, date, regarding year. us hand nicely, less terminal, and until Following Engineering are will us from made project the well the be person many $XX announcement arrangements for the expected still possible expected see million, progress to completed required to of we've capital progress with than next paid the next the payments week. remaining

see fourth Gulf alluded leading crackers rebounded, U.S. along Now August increased quarter experienced ethylene dipped that literally for planned and on flow. and of should geographical cash and Since Oeyvind bottom ethylene volumes well the several in to, as chart, Hurricane left then, arbitrage as throughput you our can as both July bode throughput widening headwinds the unplanned price Coast U.S. with the production has to coupled negative some which Beryl. and at terminal in September outages, October, and

the As we've contracts softest seasonally the seen years, take-or-pay. third is the recent but quarter in for throughput, are

despite to quarterly annual movements. So over cash firm expected time flow is the some remain

the commercial volumes, to months. that coming expansion the larger in the as the second multiyear capacity contracting contract offtake signed be additional new to November for contracted will terms. is expect already customers likely December the be continue or and As And and agreed in we to

and medium-term strategy. host customers will market Wednesday, covering members We'll Board our appreciation investors. that Houston, update, And following will our analysts, lunch company up well going Terminal the November as and in XXXX a Tuesday for host our to by next current financial I followed ethylene. and evening, XX vessel will Oeyvind's loading Day Slide next host invite too and each Later we're as on be Texas. and for week of our XX, our day, team all XX, management our have shareholders, to to at here the a of partners. industry afternoon, Investor and finishing presentations Analyst dinner analysts then the we on you Ethylene tours personally an as November Now invitation, as trends, on want well then that event

week every now and our weather bright. With is the be that, it nice but and Houston especially turn for over Yes, clear here. and let week outlook, I'll remarks. check next me So will match will sunny, in to Mads closing pleasant

Mads Zacho

of for Thanks sum before all delivered go start. I'll to a and the it in have that yes, we us Q&A. In a we strong a off a QX, And to summary, Randy. we lot, has solid come QX front up you just

leverage as is to ahead We We and when the low way, that history the ahead we low refinance plentiful. ratios for Navigator. maturities driven lowest balance and cheap curve the it of have ever to level robust position. strongest have we company's illustrated down refinancings stay by This our the sheet deem when well in and funding margins of cash comes

continue book capital cash and We opportunities continue vessel buy look back attractive with to we'll shares, handysize increase supply picture pay The dividends remains for our distribution to and to quarterly order the small on set aging to and on global are 'XX. budget, Export after is fleet. for On expansion the volumes and hurricane recovering The through season. terminal December an with time energy well summer's completion Terminal infrastructure, the Ethylene shareholders.

the a U.S. people perhaps this stars this of campaign and well very XXXX all production export. and energy Trump's think President United because indeed, elected for new emphasized week, come the the need business, really States January. has aligns our the grow well I for to opportunities

exports. the believe production catchphrase, and NGL bode should and So well for drill we baby this that is drill

for We this, eventually deficit need including the trade from to on campaign commodities LPG, in partners, result its clean ethane China Trump the with and ammonia. more also the in reducing think U.S. also U.S., addition trading China. has -- to focused will buying ethylene, this that particular the In

election an a listening in. all to that all, the strong lead outcome And that demand for So delivers. Thanks lot to energy Navigator for will back Randy. you, infrastructure in

Randall Giveans

Mads. very the we'll you, for Thank said. And Operator, well Q&A. now some open lines

Randall Giveans

[Operator Instructions] Your open. should First question? be line

Omar Nokta

terminal. I the for Obviously, The they think questions double towards it's know wanted throughput. amount Oeyvind, grand detail, affected income I of check confirm. guess I mentioned good a had to for A update. lot if Hurricane of are things had terminal. you in the sure. small side lot basically, today's reported that just recall, the the of positive contracts, I maybe disruptions Thanks on these and just but Beryl more first, from take-or-pay. a couple some happening scheme, a from you that And me

matter just be eventually you're in a It's terms of to going maybe volumes. those clunky when that's what received? no lost So little for compensated

Randall Giveans

Omar. Yes, Exactly.

the with deficiencies. So a the commodity, pay contract they take-or-pay or that they up take to have immediately. either X not, do quarter on contracts, the they depending pay if or they make If

quarter, facilities just not the receive of in flows that So those small and yes, are do the to tree third clear the we production in expect ethylene to impact fourth to we of on make Hurricane we Gulf early was into cash that some to was down. itself. no the the one impacts, They little along both did U.S. quarter the had XXXX. And the terminal Beryl 'XX All impact receive sure Coast.

the So terminal safe and was sound.

Omar Nokta

this Gulf. the the just Okay. broadly And situation about And in of maybe terminal before. just bit kind then a we've Randy, talked on

leaving there for to and if of thoughts One guess, And Any commodity ship here, there fees this then can be doing what me is you export but of guess, I on propane at a of is out volumes the even country, to seeing the infrastructure are one, kind the limit potentially I point propane terminal? -- And you so? there send your themes I ports we're seeing, regular in the that isn't the potentially handle. Are demand story received propane into your to nonstarter guess, seeing seems that record U.S. terminal? are be for big a to that? big the could

Randall Giveans

Correct. Yes, ethylene Point and only. at is ethane for infrastructure the Morgan's

this being only out of are the Morgan's that exported time. Point at there's commodities So

So in appetite no opportunities or exports for near propane the no term.

Now, right, will not be some us to if a you give anytime few years but that soon. things happening around, potentially, change

Omar Nokta

like newbuildings, side. right. All them. just And anticipation It slide you last then one, ships with Okay. be there's you've that ordered seems going until my for X demand those time with The strong plenty of to on those the there, the deliver. got

regarding those X mature believe intend options to that or do what thoughts in weeks. next couple have You expire on I those Any do you options? of the

Mads Zacho

ask colleagues here just few my add supplement. and a to can I words

need declared November the by options, have be they We XX. to

declaring So that weeks have that means them. before just X we still

Board to a this in have meeting discuss week, We we next them. are and Houston is going when

maximize Board that us you the works well for us ensure that on say, optionality when we, so time really with and So decide and have here the the could it we we discuss it.

Omar Nokta

Great. That's tuned. good color, and we'll stay

Frank Galanti

the two to them. out, charter I ask know time looking one you wanted about or newbuilds, to those were the of that I had so -- you mentioned

color that, we what perspective? helpful. be from of give expecting sort be a but from a rate would you also could any If us on mostly that duration, Just should

Mads Zacho

the of listened that too tightening that speak I in a little are much on that, in course, book towards we don't market on the comments When can us, call developing bit just our our about see should us rather ahead over how ensuring And into see we'll we cover time. general. and say confident here. continue a the balance we to take duration demand-supply conference of the you

also conservative, you appreciate people. On cautious the say, we we hand, other are or could

So the couple cover long-term of we a also that vessels. we on have contract our like

a So exposures you the contracts between charter in the we that and time have it of gives spot good place. could some long-term balance, say,

half, little a bit people. are we So glass full

cover varying now well. up the mix plus ideal being, a and declaring having But all lot A options of short-term X years to week on it there's from right not. and deciding and with that of or we're or of the duration you of cover a X our certainly could customer year next on enter So some say, for Board the way demand as into long-term where us. side to go to some contracts short lots depends going is

now we we discussions would or we bit mix but are structure So vessels. right to that, those little the exactly to X potentially across internally how having a have X of a like probably

Frank Galanti

helpful. That's Okay.

Mads Zacho

can pitch not in, it we to so there's rates, you When comes can yes, say. Oeyvind, please. much

Oeyvind Lindeman

that. get much comment we expectations, to when the have but we mean Obviously, there. can't on rates too cross I cover our that certain bridge we'll on things

Frank Galanti

that upside, on increase obviously, sort to currently You off? the mentioned the or is time capture Okay. more current Yes. of the sort are? there? decrease are rolling want for charters be then of you about you plan sort expectations some you charter what balance when short-term What's time the but and contracts talk to of can would game what time fleet, the And of sort charters, of looking sort of the broadly

Oeyvind Lindeman

is the spot that that time seeing, generally, nature, the so cover. time exposure short-term more XX The on little Frank, spot in extensions X more mean, do on the months. versus with fourth that particularly in now charter we're forecast our quarter shorter with markets to market, a charter the in from do I ships also because shorter taking strong months we are bit of strengthening time fundamentals But overall, charter. the are

Frank Galanti

Okay, great.

Randall Giveans

really Frank. the in through And XX Thanks, And those ethane, also the fleet we're focusing vessels, presentation the you year time more then that the next especially on so the ones and And and Slides list. kind see semi-refs, are very exposure, that and charter the refrigerated fully the charters. beyond, of of can you'll for on there XX go little full see list. earnings ethylene, time

and and to Po ] to [ we Climent week. Operator, back So have looking come ]. caller we next go back. Should [ [ maybe seeing try Po ]? to next forward you There's the come Po

Climent Molins

the up front. chartering the on Following questions on

semi on some last at you're And was higher I and delta fully further mentioned vessels rechartering insight two? your provide between the year. the could relative refrigerated wondering, to You you rates

Oeyvind Lindeman

little average a you XX if it's because and versus at depends use look conference ship the customer on and bit for But on each third you quarter each each if just it's third quarter, It trade. call that, XX.

fleet across uplift already the XX% So entire that's year-on-year. there a

testing it moment and that's that the we're fleet where definitely can of we that on what at on to time So limit we trying with doing looking at the go, and the are market, spot are charters the the pushing extend.

Climent Molins

Makes also wanted I to Blue sense. ask Street. about And

few You a how of I update we few an should give And FID on conversations signed us memorandum whether was years? a understanding the a expect months and are wondering, could going in you ago.

Oeyvind Lindeman

for that work the sequestration them. to With evaluating FEED And plan with to and is the into to Uniper then during going their the they carbon regulation MoU, into current done currently point is the put In next parallel, year. support government COX. pre-FEED U.K. we've shipping now at some a are It study needs go study. capture

year, but that pieces to X, going the them infrastructure takes it's all construct So takes it. that years a to it process time. something X All next well, into go maybe actually needs

and can all the towards it's revenue going end things decade, where cut ribbon the So well of generated. be

So a longer game. but stay it's tuned,

Climent Molins

For sure.

Randall Giveans

Let's you believe the see I questions. here. [ Po submitted ],

pull those me Let up.

For those Or wiggle any the firm expiration there later room a options, month? on newbuilding out? extending is this of

Mads Zacho

you a granted options now that one. short of in slots. are see sellers of right I the are the that general. can being lot yards maybe there's duration are a and that right that take The in market extremely now, can That for means demand

opportunity an the right is So don't I the they We to no. guess have are now. answer extend as options

Randall Giveans

Perfect.

it the ramp late the is damper X, a the month hear now switching be a X and next of from completion and 'XX this and very expansion of we terminal, from and week. that little then export limited, I in or the switch, XXXX. operational year? Yes, and But will And so completion now. December, It's weeks is up fully about right? coming see analysts For and to investors to XQ running is construction all next or by time be many right, expect know January, literally up a able over yes,

Mads, that Q&A. think words? any it final the I for is So

Mads Zacho

terminal discussion a business. our it's Houston come have at down loading and before, our want a we at Board, to ship meet when look have about repeat Just management and you good to our our what and can Please said Randy. and

listening lot for I So in. hope and a all thanks you'll come,

Randall Giveans

Thank you all.

Navigator (NVGS) 7 Nov 242024 Q3 Earnings call transcript