Navigator Holdings Ltd. Q1 FY2025 earnings call

• Revenue for Q1 was up 13% to a new quarterly record, driven by high utilization and higher rates.
• Adjusted EBITDA for Q1 was $73 million, consistent with prior periods.
• Balance sheet is strong with a robust cash position, having completed a $300 million refinancing.
• Return of capital continued in Q1 with a $0.05 fixed dividend and share buyback up to 25% of net income; an additional $50 million share repurchase authorization was announced.
• Commercially, TCE rates were $30,475 (8% higher than prior quarter and same period last year) and utilization was above 92%.
• Terminal throughput at the joint venture Ethylene Export Terminal was 86,000 tons, limited by U.S. cracker turnarounds.
• Acquired three secondhand ethylene-capable vessels and sold Navigator Venus; fleet renewal remains a priority.
• Believes port fees and tariffs announced by U.S. Trade Representative will not negatively impact Navigator due to vessel size and service to U.S. energy exports.

In the first quarter, Navigator Holdings generated revenues up 13% compared to the same period last year, reaching a new record quarterly revenue. Adjusted EBITDA for Q1 was $73 million, in line with both the same period of 2024 and Q4. Commercially, average Q1 TCE rates were $30,475, 8% higher than both the previous quarter and same period last year, with utilization above 92%. Throughput at the joint venture Ethylene Export Terminal was limited to 86,000 tons for the quarter, much lower than capacity due to U.S. cracker turnarounds. Revenue contribution: TCE rates and utilization were key drivers, while terminal throughput was a drag.

• Anticipates higher terminal throughput in the second quarter and beyond.
• Estimated all-in cash breakeven for 2025 is $20,600 per day, significantly below Q1 TCE.
• Plans to nudge up chartering cover percentage over the next 12 months.

• Market volatility, particularly softer ethylene transport demand.
• Uncertainty surrounding tariffs and trade policies.
• Impact of U.S. cracker turnarounds on terminal throughput.

Q: When China-U.S. trade stalled, what happened elsewhere?

A: LPG found other outlets like Middle East to China; ethane stopped until tariffs lowered.

Q: How about TCE increase, spot vs time charter?

A: Mostly due to time charters being rolled at higher rates.

Q: Co-pay payments on Ethylene Export Terminal?

A: Will provide tailwind to JV's contribution in the second quarter.