PAGE |
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3 | ||||
21 | ||||
22 | ||||
Unaudited Condensed Consolidated Financial Statements |
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23 | ||||
24 | ||||
25 | ||||
26 | ||||
27 | ||||
28 | ||||
Operating Vessel |
Year Built |
Vessel Size (cbm) |
Employment Status |
Current Cargo |
Time Charter Expiration Date |
|||||||||||||||
Ethylene/ethane capable semi-refrigerated midsize |
||||||||||||||||||||
Navigator Aurora |
2016 | 37,300 | Time Charter | Ethane | December 2026 | |||||||||||||||
Navigator Eclipse |
2016 | 37,300 | Time Charter | Ethane | March 2026 | |||||||||||||||
Navigator Nova |
2017 | 37,300 | Time Charter | Ethane | September 2026 | |||||||||||||||
Navigator Prominence |
2017 | 37,300 | Time Charter | Ethane | January 2026 | |||||||||||||||
Ethylene/ethane capable semi-refrigerated handysize |
||||||||||||||||||||
Navigator Orion* |
2000 | 22,085 | Spot Market | — | — | |||||||||||||||
Navigator Pluto* |
2000 | 22,085 | Time Charter | Ethane | September 2022 | |||||||||||||||
Navigator Saturn* |
2000 | 22,085 | Spot Market | Drydock | — | |||||||||||||||
Navigator Venus* |
2000 | 22,085 | Spot Market | — | — | |||||||||||||||
Navigator Atlas* |
2014 | 21,000 | Spot Market | Ethane | — | |||||||||||||||
Navigator Europa* |
2014 | 21,000 | Time Charter | Ethane | December 2022 | |||||||||||||||
Navigator Oberon* |
2014 | 21,000 | Spot Market | — | — | |||||||||||||||
Navigator Triton* |
2015 | 21,000 | Spot Market | — | — | |||||||||||||||
Navigator Umbrio* |
2015 | 21,000 | Spot Market | Ethylene | — | |||||||||||||||
Ethylene/ethane capable semi-refrigerated smaller size |
||||||||||||||||||||
Happy Kestrel** |
2013 | 12,000 | Unigas Pool | — | — | |||||||||||||||
Happy Osprey** |
2013 | 12,000 | Unigas Pool | — | — | |||||||||||||||
Happy Peregrine** |
2014 | 12,000 | Unigas Pool | — | — | |||||||||||||||
Happy Albatross** |
2015 | 12,000 | Unigas Pool | — | — | |||||||||||||||
Happy Avocet** |
2017 | 12,000 | Unigas Pool | — | — | |||||||||||||||
Semi-refrigerated handysize |
||||||||||||||||||||
Navigator Magellan |
1998 | 20,700 | Time Charter | Butane | August 2022 | |||||||||||||||
Navigator Aries |
2008 | 20,750 | Time Charter | LPG | January 2023 | |||||||||||||||
Navigator Capricorn |
2008 | 20,750 | Spot Market | — | — | |||||||||||||||
Navigator Gemini |
2009 | 20,750 | Time Charter | LPG | February 2023 | |||||||||||||||
Navigator Pegasus |
2009 | 22,200 | Time Charter | Propylene | November 2022 | |||||||||||||||
Navigator Phoenix |
2009 | 22,200 | Spot Market | — | — | |||||||||||||||
Navigator Scorpio |
2009 | 20,750 | Spot Market | LPG | — | |||||||||||||||
Navigator Taurus |
2009 | 20,750 | Time Charter | Ammonia | December 2022 | |||||||||||||||
Navigator Virgo |
2009 | 20,750 | Spot Market | — | — | |||||||||||||||
Navigator Leo |
2011 | 20,600 | Time Charter | LPG | December 2023 | |||||||||||||||
Navigator Libra |
2012 | 20,600 | Time Charter | LPG | December 2023 | |||||||||||||||
Atlantic Gas |
2014 | 22,000 | Spot Market | — | — | |||||||||||||||
Adriatic Gas |
2015 | 22,000 | Time Charter | Butane | September 2022 | |||||||||||||||
Balearic Gas |
2015 | 22,000 | Spot Market | Butadiene | — | |||||||||||||||
Celtic Gas |
2015 | 22,000 | Spot Market | Butane | — | |||||||||||||||
Navigator Centauri |
2015 | 21,000 | Time Charter | LPG | May 2023 | |||||||||||||||
Navigator Ceres |
2015 | 21,000 | Time Charter | LPG | June 2023 | |||||||||||||||
Navigator Ceto |
2016 | 21,000 | Time Charter | LPG | May 2023 | |||||||||||||||
Navigator Copernico |
2016 | 21,000 | Time Charter | LPG | June 2023 |
Operating Vessel |
Year Built |
Vessel Size (cbm) |
Employment Status |
Current Cargo |
Time Charter Expiration Date | |||||||||
Bering Gas |
2016 | 22,000 | Spot Market | Butadiene | — | |||||||||
Navigator Luga |
2017 | 22,000 | Time Charter | LPG | June 2023 | |||||||||
Navigator Yauza |
2017 | 22,000 | Time Charter | LPG | June 2023 | |||||||||
Arctic Gas |
2017 | 22,000 | Spot Market | — | — | |||||||||
Pacific Gas |
2017 | 22,000 | Spot Market | Propylene | — | |||||||||
Semi-refrigerated smaller size |
||||||||||||||
Happy Falcon** |
2002 | 3,770 | Unigas Pool | — | — | |||||||||
Happy Condor** |
2008 | 9,000 | Unigas Pool | — | — | |||||||||
Happy Pelican** |
2012 | 6,800 | Unigas Pool | — | — | |||||||||
Happy Penguin** |
2013 | 6,800 | Unigas Pool | — | — | |||||||||
Fully-refrigerated |
||||||||||||||
Navigator Glory |
2010 | 22,500 | Time Charter | Ammonia | June 2025 | |||||||||
Navigator Grace |
2010 | 22,500 | Time Charter | Ammonia | October 2022 | |||||||||
Navigator Galaxy |
2011 | 22,500 | Time Charter | Ammonia | December 2022 | |||||||||
Navigator Genesis |
2011 | 22,500 | Time Charter | Ammonia | January 2023 | |||||||||
Navigator Global |
2011 | 22,500 | Time Charter | LPG | October 2022 | |||||||||
Navigator Gusto |
2011 | 22,500 | Time Charter | Ammonia | March 2023 | |||||||||
Navigator Jorf |
2017 | 38,000 | Time Charter | Ammonia | August 2027 |
* |
denotes our owned vessels that operate within the Luna Pool |
** |
denotes our owned vessels that operate within the independently managed Unigas Pool |
Three Months Ended June 30, 2021 |
Three Months Ended June 30, 2022 |
Percentage Change |
||||||||||
(in thousands, except percentages) | ||||||||||||
Operating revenues |
$ | 80,153 | $ | 105,875 | 32.1 | % | ||||||
Operating revenues – Unigas Pool |
— | 11,389 | — | |||||||||
Operating revenues – Luna Pool collaborative arrangements |
5,546 | 6,653 | 20.0 | % | ||||||||
|
|
|
|
|||||||||
Total operating revenues |
85,699 | 123,917 | 44.6 | % | ||||||||
Expenses: |
||||||||||||
Brokerage commissions |
974 | 1,569 | 61.1 | % | ||||||||
Voyage expenses |
17,689 | 20,804 | 17.6 | % | ||||||||
Voyage expenses – Luna Pool collaborative arrangements |
5,663 | 6,950 | 22.7 | % | ||||||||
Vessel operating expenses |
28,826 | 38,628 | 34.0 | % | ||||||||
Depreciation and amortization |
19,473 | 31,477 | 61.6 | % | ||||||||
General and administrative costs |
5,796 | 7,827 | 35.0 | % | ||||||||
Other income |
(88 | ) | (109 | ) | 23.9 | % | ||||||
|
|
|
|
|||||||||
Total operating expenses |
78,333 | 107,146 | 36.8 | % | ||||||||
|
|
|
|
|||||||||
Operating income |
7,366 | 16,771 | 127.7 | % | ||||||||
Other income/(expense) |
||||||||||||
Foreign currency exchange gain on senior secured bonds |
330 | 8,218 | 2,390.3 | % | ||||||||
Unrealized loss on non-designated derivative instruments |
(269 | ) | (5,346 | ) | 1,887.4 | % | ||||||
Interest expense |
(8,647 | ) | (11,471 | ) | 32.7 | % | ||||||
Interest income |
63 | 112 | 77.8 | % | ||||||||
|
|
|
|
|||||||||
Income before taxes and share of result of equity method investments |
(1,157 | ) | 8,284 | — | ||||||||
Income taxes |
(190 | ) | (671 | ) | 253.2 | % | ||||||
Share of result of equity method investments |
2,001 | 6,757 | 237.7 | % | ||||||||
|
|
|
|
|||||||||
Net income |
654 | 14,370 | 2097.2 | % | ||||||||
Net income attributable to non-controlling interest |
(394 | ) | (348 | ) | (11.7 | %) | ||||||
|
|
|
|
|||||||||
Net income attributable to stockholders of Navigator Holdings Ltd. |
$ | 260 | $ | 14,022 | 5,293.1 | % | ||||||
|
|
|
|
• | an increase in operating revenues of approximately $12.3 million attributable to an increase in vessel available days of 651 days, or 19.7% for the three months ended June 30, 2022, compared to the three months ended June 30, 2021. This increase was primarily as a result of seven additional handysize vessels joining the fleet as part of the Ultragas Transaction in August 2021. |
• | an increase in operating revenues of approximately $8.3 million attributable to an increase in average monthly time charter equivalent rates, which increased to an average of approximately $24,633 per vessel per day ($749,244 per vessel per calendar month) for the three months ended June 30, 2022, compared to an average of approximately $22,169 per vessel per day ($674,309 per vessel per calendar month) for the three months ended June 30, 2021; |
• | an increase in operating revenues of approximately $2.0 million attributable to an increase in fleet utilization, which rose to 87.4% for the three months ended June 30, 2022, compared to 85.4% for the three months ended June 30, 2021; and |
• | an increase in operating revenues of approximately $3.1 million, primarily attributable to an increase in pass through voyage costs, associated with the additional vessels in the fleet during the three months ended June 30, 2022, compared to the three months ended June 30, 2021. |
Three Months Ended June 30, 2021 |
Three Months Ended June 30, 2022 |
|||||||
Fleet Data: |
||||||||
Weighted average number of vessels |
38.0 | 44.0 | ||||||
Ownership days |
3,458 | 4,004 | ||||||
Available days |
3,300 | 3,951 | ||||||
Operating days |
2,818 | 3,454 | ||||||
Fleet utilization |
85.4 | % | 87.4 | % | ||||
Average daily time charter equivalent rate (*) |
$ | 22,169 | $ | 24,633 |
* |
Non-GAAP Financial Measure—Time charter equivalent: period-to-period |
Three Months Ended June 30, 2021 |
Three Months Ended June 30, 2022 |
|||||||
(in thousands, except operating days and average daily time charter equivalent rate) |
||||||||
Fleet Data: |
||||||||
Operating revenues* |
$ | 80,153 | $ | 105,875 | ||||
Voyage expenses* |
17,689 | 20,804 | ||||||
|
|
|
|
|||||
Operating revenues less Voyage expenses |
62,464 | 85,071 | ||||||
|
|
|
|
|||||
Operating days |
2,818 | 3,454 | ||||||
Average daily time charter equivalent rate |
$ | 22,169 | $ | 24,633 |
* | Operating revenues and voyage expenses exclude collaborative arrangements and Unigas pool. |
Six Months Ended June 30, 2021 |
Six Months Ended June 30, 2022 |
Percentage Change |
||||||||||
(in thousands, except percentages) | ||||||||||||
Operating revenue |
$ | 160,661 | $ | 206,271 | 28.4 | % | ||||||
Operating revenues – Unigas Pool |
— | 24,893 | — | |||||||||
Operating revenue – Luna Pool collaborative arrangement |
10,786 | 12,530 | 16.2 | % | ||||||||
|
|
|
|
|||||||||
Total operating revenue |
171,447 | 243,694 | 42.1 | % | ||||||||
Operating expenses: |
||||||||||||
Brokerage commissions |
2,167 | 2,976 | 37.3 | % | ||||||||
Voyage expenses |
33,305 | 41,600 | 24.9 | % | ||||||||
Voyage expenses – Luna Pool collaborative arrangement |
9,795 | 11,540 | 17.8 | % | ||||||||
Vessel operating expenses |
55,818 | 76,679 | 37.4 | % | ||||||||
Depreciation and amortization |
38,746 | 62,819 | 62.1 | % | ||||||||
General and administrative costs |
12,076 | 14,170 | 17.3 | % | ||||||||
Profit from sale of vessel |
— | (358 | ) | — | ||||||||
Other income |
(160 | ) | (198 | ) | 23.8 | % | ||||||
|
|
|
|
|||||||||
Total operating expenses |
151,747 | 209,228 | 37.9 | % | ||||||||
|
|
|
|
|||||||||
Operating income |
19,700 | 34,466 | 75.0 | % | ||||||||
Foreign currency exchange gain on senior secured bonds |
338 | 7,441 | 2,101.5 | % | ||||||||
Unrealized gain on non-designated derivative instruments |
278 | 9,896 | 3,459.7 | % | ||||||||
Interest expense |
(17,608 | ) | (22,434 | ) | 27.4 | % | ||||||
Interest income |
94 | 199 | 111.7 | % | ||||||||
|
|
|
|
|||||||||
Income before taxes and share of result of equity method investments |
2,802 | 29,568 | 955.2 | % | ||||||||
Income taxes |
(335 | ) | (1,064 | ) | 217.6 | % | ||||||
Share of result of equity method investments |
1,396 | 13,260 | 849.9 | % | ||||||||
|
|
|
|
|||||||||
Net income |
3,863 | 41,764 | 981.1 | % | ||||||||
Net income attributable to non-controlling interest |
(783 | ) | (704 | ) | (10.1 | %) | ||||||
|
|
|
|
|||||||||
Net income attributable to stockholders of Navigator Holdings Ltd. |
$ | 3,080 | $ | 41,060 | 1,233.1 | % | ||||||
|
|
|
|
• | an increase in operating revenue of approximately $22.6 million attributable to an increase in vessel available days of 1,179 days or 17.7% for the six months ended June 30, 2022, compared to the six months ended June 30, 2021. This increase was primarily as a result of seven additional handysize vessels joining the fleet as part of the Ultragas Transaction in August 2021. |
• | an increase in operating revenue of approximately $11.7 million attributable to an increase in average monthly time charter equivalent rates, which increased to an average of approximately $23,781 per vessel per day ($723,332 per vessel per calendar month) for the six months ended June 30, 2022, compared to an average of approximately $22,060 per vessel day ($670,992 per vessel per calendar month) for the six months ended June 30, 2021; |
• | an increase in operating revenue of approximately $3.0 million attributable to an increase in fleet utilization which was 88.4% for the six months ended June 30, 2022 compared to 86.8% for the six months ended June 30, 2021; and |
• | an increase in operating revenue of approximately $8.3 million primarily attributable to an increase in pass through voyage costs, due to additional fuel and canal transit costs for the six months ended June 30, 2022 compared to the six months ended June 30, 2021. |
Six Months Ended June 30, 2021 |
Six Months Ended June 30, 2022 |
|||||||
Fleet Data: |
||||||||
Weighted average number of vessels |
38.0 | 44.1 | ||||||
Ownership days |
6,878 | 7,978 | ||||||
Available days |
6,651 | 7,830 | ||||||
Operating days |
5,773 | 6,925 | ||||||
Fleet utilization |
86.8 | % | 88.4 | % | ||||
Average daily time charter equivalent rate |
$ | 22,060 | $ | 23,781 |
Six Months Ended June 30, 2021 |
Six Months Ended June 30, 2022 |
|||||||
(in thousands, except operating days and average daily time charter equivalent rate) |
||||||||
Fleet Data: |
||||||||
Operating revenue (excluding collaborative arrangement) |
$ | 160,661 | $ | 206,271 | ||||
Voyage expenses (excluding collaborative arrangement) |
33,305 | 41,600 | ||||||
|
|
|
|
|||||
Operating revenue less Voyage expenses |
127,356 | 164,671 | ||||||
|
|
|
|
|||||
Operating days |
5,773 | 6,925 | ||||||
Average daily time charter equivalent rate |
$ | 22,060 | $ | 23,781 |
Six months ended June 30, 2021 |
Six months ended June 30, 2022 |
|||||||
(in thousands) | ||||||||
Net cash provided by operating activities |
$ | 53,812 | $ | 58,705 | ||||
Net cash provided by investing activities |
2,745 | 40,352 | ||||||
Net cash used in financing activities |
(19,472 | ) | (72,064 | ) | ||||
|
|
|
|
|||||
Net increase in cash, cash equivalents and restricted cash |
$ | 37,085 | $ | 26,993 | ||||
|
|
|
|
Facility agreement date |
Original facility amount |
Principal amount outstanding |
Undrawn amount at June 30, 2022 |
Interest rate |
Loan maturity date |
|||||||||||||||
(in millions) |
||||||||||||||||||||
January 2015* |
$ | 278.1 | $ | 65.6 | $ | — | US Libor + 270 BPS | August 2022—April 2023 | ||||||||||||
October 2016 |
220.0 | 70.3 | 20.0 | US Libor + 260 BPS | November 2023 | |||||||||||||||
June 2017 |
160.8 | 78.3 | — | US Libor + 230 BPS | June 2023 | |||||||||||||||
March 2019 |
107.0 | 77.3 | — | US Libor + 240 BPS | March 2025 | |||||||||||||||
September 2020 |
210.0 | 180.4 | — | US Libor + 250 BPS | September 2024 | |||||||||||||||
October 2019** |
69.1 | 47.5 | — | US Libor + 185 BPS | October 2026 | |||||||||||||||
August 2021 Amendment and Restatement Agreement |
67.0 | 49.5 | — | US Libor + 190 BPS | June 2026 | |||||||||||||||
DB Credit Facility A |
57.7 | 22.8 | — | US Libor + 205 BPS | April 2027 | |||||||||||||||
Santander Credit Facility A |
81.0 | 33.7 | — | US Libor + 205 BPS | May 2027 | |||||||||||||||
DB Credit Facility B |
60.9 | 34.3 | — | US Libor + 205 BPS | December 2028 | |||||||||||||||
Santander Credit Facility B |
55.8 | 32.6 | — | US Libor + 205 BPS | January 2029 | |||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total |
$ | 1,367.4 | $ | 692.3 | $ | 20.0 |
* | The January 2015 facility tranches mature over a range of dates, from August 2022 to April 2023. |
** | The October 2019 loan facility relates to the Navigator Aurora Facility held within a lessor entity (for which legal ownership resides with financial institutions) that we are required to consolidate under U.S. GAAP into our financial statements as a variable interest entity. |
• | we and our subsidiaries maintain a minimum liquidity of no less than $25.0 million; and |
• | we and our subsidiaries maintain an Equity Ratio of at least 30%. |
• | we and our subsidiaries maintain a minimum liquidity of no less than $35.0 million; and |
• | we and our subsidiaries maintain an Equity Ratio (as defined in the 2020 Bond Agreement) of at least 30%. |
• | global epidemics or other health crises such as the outbreak of COVID-19, including its impact on our business; |
• | future operating or financial results; |
• | pending acquisitions, business strategy and expected capital spending; |
• | operating expenses, availability of crew, number of off-hire days, drydocking requirements and insurance costs; |
• | fluctuations in currencies and interest rates; |
• | general market conditions and shipping market trends, including charter rates and factors affecting supply and demand; |
• | our ability to continue to comply with all our debt covenants; |
• | our financial condition and liquidity, including our ability to refinance our indebtedness as it matures or obtain additional financing in the future to fund capital expenditures, acquisitions and other corporate activities; |
• | estimated future capital expenditures needed to preserve our capital base; |
• | our expectations about the availability of vessels to purchase, or the useful lives of our vessels; |
• | our continued ability to enter into long-term, fixed-rate time charters with our customers; |
• | the availability and cost of low sulfur fuel oil compliant with the International Maritime Organization sulfur emission limit reductions, generally referred to as “IMO 2020,” which took effect January 1, 2020; |
• | our vessels engaging in ship to ship transfers of LPG or petrochemical cargoes which may ultimately be discharged in sanctioned areas or to sanctioned individuals without our knowledge; |
• | the impact of the Russian invasion of Ukraine; |
• | changes in governmental rules and regulations or actions taken by regulatory authorities; |
• | potential liability from future litigation; |
• | our expectations relating to the payment of dividends; |
• | our ability to successfully remediate the material weakness in our internal control over financial reporting and our disclosure controls and procedures; |
• | our expectation regarding providing in-house technical management for certain vessels in our fleet and our success in providing such in-house technical management; |
• | our expectations regarding the financial success of the Ethylene Export Terminal and our related Export Terminal Joint Venture or our Luna Pool collaborative arrangements; |
• | our expectations regarding the integration, profitability and success of the vessels and businesses acquired in the Ultragas Transaction and the operational and financial benefits from the combined businesses and fleet; and |
• | other factors detailed from time to time in other periodic reports we file with the Securities and Exchange Commission. |
December 31, 2021 | June 30, 2022 | |||||||
(in thousands, except share data) | ||||||||
Assets |
||||||||
Current assets |
||||||||
Cash, cash equivalents and restricted cash |
$ | $ | ||||||
Accounts receivable, net of allowance for credit losses of $ |
||||||||
Accrued income |
||||||||
Prepaid expenses and other current asset s |
||||||||
Bunkers and lubricant oils |
||||||||
Insurance receivable |
||||||||
Amounts due from related parties |
||||||||
|
|
|
|
|||||
Total current assets |
||||||||
Non-current assets |
||||||||
Vessels, net |
||||||||
Assets held for sale |
||||||||
Property, plant and equipment, net |
||||||||
Intangible assets, net of accumulated amortization of $ |
||||||||
Equity method investments |
||||||||
Derivative assets |
||||||||
Right-of-use |
||||||||
Prepaid expenses and other non-current assets |
||||||||
|
|
|
|
|||||
Total non-current assets |
||||||||
|
|
|
|
|||||
Total assets |
$ | $ | ||||||
|
|
|
|
|||||
Liabilities and stockholders’ equity |
||||||||
Current liabilities |
||||||||
Current portion of secured term loan facilities, net of deferred financing costs |
$ | $ | ||||||
Current portion of operating lease liabilities |
||||||||
Accounts payable |
||||||||
Accrued expenses and other liabilities |
||||||||
Accrued interest |
||||||||
Deferred income |
||||||||
Amounts due to related parties |
||||||||
|
|
|
|
|||||
Total current liabilities |
||||||||
|
|
|
|
|||||
Non-current liabilities |
||||||||
Secured term loan facilities and revolving credit facilities, net of current portion and deferred financing costs |
||||||||
Senior secured bond, net of deferred financing costs |
||||||||
Senior unsecured bond, net of deferred financing costs |
||||||||
Derivative liabilities |
||||||||
Operating lease liabilities, net of current portion |
||||||||
Amounts due to related parties |
||||||||
|
|
|
|
|||||
Total non-current liabilities |
||||||||
|
|
|
|
|||||
Total Liabilities |
||||||||
Commitments and contingencies |
||||||||
Stockholders’ equity |
||||||||
Common stock—$ par value per share; |
||||||||
Additional paid-in capital |
||||||||
Accumulated other comprehensive loss |
( |
) | ( |
) | ||||
Retained earnings |
||||||||
|
|
|
|
|||||
Total Navigator Holdings Ltd. stockholders’ equity |
||||||||
Non-controlling interest |
||||||||
|
|
|
|
|||||
Total equity |
||||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity |
$ | $ | ||||||
|
|
|
|
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||
(in thousands except share and per share data) | ||||||||||||||||
Revenues |
||||||||||||||||
Operating revenue |
$ | $ | $ | $ | ||||||||||||
Operating revenues—Unigas Pool |
||||||||||||||||
Operating revenue- Luna Pool collaborative arrangement |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating revenues |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Expenses |
||||||||||||||||
Brokerage commissions |
||||||||||||||||
Voyage expenses |
||||||||||||||||
Voyage expenses – Luna Pool collaborative arrangement |
||||||||||||||||
Vessel operating expenses |
||||||||||||||||
Depreciation and amortization |
||||||||||||||||
General and administrative costs |
||||||||||||||||
Profit from sale of vessel |
( |
) | ||||||||||||||
Other income |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income |
||||||||||||||||
Other income / (expense) |
||||||||||||||||
Foreign currency exchange gain on senior secured bonds |
||||||||||||||||
Unrealized (loss) / gain on non-designated derivative instruments |
( |
) | ( |
) | ||||||||||||
Interest expense |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Interest income |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(Loss) / income before income taxes and share of result of equity accounted joint ventures |
( |
) | ||||||||||||||
Income taxes |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Share of result of equity method investments |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
||||||||||||||||
Net income attributable to non-controlling interest |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to stockholders of Navigator Holdings Ltd. |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Earnings per share attributable to stockholders of Navigator Holdings Ltd.: |
||||||||||||||||
Basic: |
$ | $ | $ | $ | ||||||||||||
Diluted: |
$ | $ | $ | $ | ||||||||||||
Weighted average number of shares outstanding: |
||||||||||||||||
Basic: |
||||||||||||||||
Diluted: |
||||||||||||||||
|
|
|
|
|
|
|
|
Three months ended June 30, |
Six months ended June, 30 |
|||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||
(in thousands) | ||||||||||||||||
Net income |
$ | $ | $ | $ | ||||||||||||
Other Comprehensive income: |
||||||||||||||||
Foreign currency translation (loss) / gain |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Comprehensive income: |
$ | $ | $ | $ | ||||||||||||
Total Comprehensive income / attributable to: |
||||||||||||||||
Stockholders of Navigator Holdings Ltd.: |
$ | $ | $ | $ | ||||||||||||
Non-controlling interest |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Comprehensive income: |
$ | $ | |
$ | $ | |||||||||||
|
|
|
|
|
|
|
|
(In thousands, except share data) |
||||||||||||||||||||||||||||
Common stock |
||||||||||||||||||||||||||||
Number of shares |
Amount 0.01 par value |
Additional Paid-in Capital |
Accumulated Other Comprehensive Income (Loss) |
Retained Earnings |
Non-Controlling Interest |
Total |
||||||||||||||||||||||
Balance as of January 01, 2021 |
$ | $ | |
$ | ( |
) | $ | |
$ | |
$ | |
||||||||||||||||
Restricted shares issued March 17, 2021 |
— | — | — | — | ||||||||||||||||||||||||
Restricted shares cancelled January 1, 2021 |
( |
) | — | — | — | — | — | — | ||||||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||||||
Foreign currency translation |
— | — | — | — | — | |||||||||||||||||||||||
Share-based compensation plan |
— | — | — | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance as of June 30, 2021 |
$ | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except share data) |
||||||||||||||||||||||||||||
Common stock |
||||||||||||||||||||||||||||
Number of shares |
Amount 0.01 par value |
Additional Paid-in Capital |
Accumulated Other Comprehensive Income (Loss) |
Retained Earnings |
Non-Controlling Interest |
Total |
||||||||||||||||||||||
Balance as of April 1, 2021 |
$ | $ | |
$ | ( |
) | $ | |
$ | $ | |
|||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||||||
Foreign currency translation |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||
Share-based compensation plan |
— | — | — | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance as of June 30, 2021 |
$ | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except share data) |
||||||||||||||||||||||||||||
Common stock |
||||||||||||||||||||||||||||
Number of shares |
Amount 0.01 par value |
Additional Paid-in Capital |
Accumulated Other Comprehensive Income (Loss) |
Retained Earnings |
Non-Controlling Interest |
Total |
||||||||||||||||||||||
Balance as of January 1, 2022 |
$ | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||
Restricted shares issued March 17, 2022 |
— | — | — | — | ||||||||||||||||||||||||
Restricted shares issued April 4, 2022 |
— | — | — | — | — | — | ||||||||||||||||||||||
Restricted shares cancelled May 26, 2022 |
( |
) | — | — | — | — | — | — | ||||||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||||||
Foreign currency translation |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||
Share-based compensation plan |
— | — | — | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance as of June 30, 2022 |
$ | $ | |
$ | ( |
) | $ | |
$ | $ | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except share data) |
||||||||||||||||||||||||||||
Common stock |
||||||||||||||||||||||||||||
Number of shares |
Amount 0.01 par value |
Additional Paid-in Capital |
Accumulated Other Comprehensive Income (Loss) |
Retained Earnings |
Non-Controlling Interest |
Total |
||||||||||||||||||||||
Balance as of April 1, 2022 |
$ | $ | $ | ( |
) | $ | |
$ | $ | |||||||||||||||||||
Restricted shares issued April 4, 2022 |
— | — | — | — | — | — | ||||||||||||||||||||||
Restricted shares cancelled May 26, 2022 |
( |
) | — | — | — | — | — | — | ||||||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||||||
Foreign currency translation |
— | — | — | ( |
) | — | — | ( |
) | |||||||||||||||||||
Share-based compensation plan |
— | — | — | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance as of June 30, 2022 |
$ | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months ended June 30, 2021 |
Six Months ended June 30, 2022 |
|||||||
(in thousands) | ||||||||
Cash flows from operating activities |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities |
||||||||
Unrealized gain on non-designated derivative instruments |
( |
) | ( |
) | ||||
Depreciation and amortization |
||||||||
Payment of drydocking costs |
( |
) | ( |
) | ||||
Amortization of share-based compensation |
||||||||
Amortization of deferred financing costs |
||||||||
Share of result of equity method investments |
( |
) | ( |
) | ||||
Impairment of vessel |
||||||||
Profit from sale of vessel |
( |
) | ||||||
Unrealized foreign exchange gain on senior secured bonds |
( |
) | ( |
) | ||||
Other unrealized foreign exchange gain |
||||||||
Changes in operating assets and liabilities |
— | |||||||
Accounts receivable |
( |
) | ||||||
Insurance claim receivable |
( |
) | ( |
) | ||||
Bunkers and lubricant oils |
( |
) | ( |
) | ||||
Accrued income and prepaid expenses and other current assets |
( |
) | ||||||
Accounts payable, accrued interest, accrued expenses and other liabilities |
( |
) | ||||||
Amounts due to related parties |
( |
) | ||||||
|
|
|
|
|||||
Net cash provided by operating activities |
||||||||
|
|
|
|
|||||
Cash flows from investing activities |
||||||||
Additions to vessels and equipment |
( |
) | ( |
) | ||||
Contributions to equity method investments |
( |
) | ||||||
Distributions from equity method investments |
||||||||
Purchase of other property, plant and equipment |
( |
) | ( |
) | ||||
Net proceeds from sale of vessels |
||||||||
Insurance recoveries |
||||||||
|
|
|
|
|||||
Net cash provided by investing activities |
||||||||
|
|
|
|
|||||
Cash flows from financing activities |
||||||||
Proceeds from secured term loan facilities and revolving credit facilities |
||||||||
Issuance costs of secured term loan facilities |
( |
) | ||||||
Repayment of financing of vessel to related parties |
( |
) | ( |
) | ||||
Repayment of secured term loan facilities and revolving credit facilities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net cash used in financing activities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net increase in cash, cash equivalents and restricted cash |
||||||||
Cash, cash equivalents and restricted cash at beginning of period |
||||||||
|
|
|
|
|||||
Cash, cash equivalents and restricted cash at end of period |
$ | $ | ||||||
|
|
|
|
|||||
Supplemental Information |
||||||||
Total interest paid during the period, net of amounts capitalized |
$ | $ | ||||||
|
|
|
|
|||||
Total tax paid during the period |
$ | $ | ||||||
|
|
|
|
1. |
General Information and Basis of Presentation |
• | the current financial condition and liquidity sources, including current funds available and forecasted future cash flows; |
• | any likely effects of global epidemics or other health crises, such as the recent COVID-19 pandemic; and |
• | the effects of the conflict in Ukraine on the Company’s business, including potential sanctions being imposed on the Company’s customers or on ports to which the Company’s vessels call. |
2. |
Business Combinations |
3. |
Operating revenues |
Three months ended June 30, (in thousands) |
Six months ended June 30, (in thousands) |
|||||||||||||||
2021 | 2022 | 2021 | 2022 | |||||||||||||
Operating revenues: |
||||||||||||||||
Time charters |
$ | $ | $ | $ | ||||||||||||
Time charters from Luna Pool collaborative arrangement |
— | — | ||||||||||||||
Voyage charters |
||||||||||||||||
Voyage charters from Luna Pool collaborative arrangement |
||||||||||||||||
Operating revenues from Unigas Pool |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating revenues |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
(in thousands) | ||||
Within 1 year: |
$ | |||
2 years: |
$ | |||
3 years: |
$ | |||
4 years: |
$ | |||
5 years: |
$ | |||
More than 5 years: |
$ |
4. |
Vessels, net |
Vessel (in thousands) |
Drydocking (in thousands) |
Total (in thousands) |
||||||||||
Cost |
||||||||||||
January 01, 2022 |
$ | $ | $ | |||||||||
Additions |
||||||||||||
Write-offs of fully amortized assets |
— | ( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||
June 30, 2022 |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Accumulated Depreciation |
||||||||||||
January 01, 2022 |
$ | $ | $ | |||||||||
Charge for the period |
||||||||||||
Write-offs of fully amortized assets |
— | ( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||
June 30, 2022 |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Net Book Value |
||||||||||||
December 31, 2021 |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
June 30, 2022 |
$ | $ | $ | |||||||||
|
|
|
|
|
|
5. |
Equity Method Investments |
December 31, |
June 30, |
|||||||
2021 |
2022 |
|||||||
Enterprise Navigator Ethylene Terminal L.L.C. (“Export Terminal Joint Venture”) |
% | % | ||||||
Luna Pool Agency Limited. (“Pool Agency”) |
% | % | ||||||
Unigas International B.V. (“Unigas”) |
% | % | ||||||
Dan Unity CO2 A/S |
% | % |
December 31, 2021 |
June 30, 2022 |
|||||||
(in thousands) | ||||||||
Equity method investments at January 1 |
$ | $ | ||||||
Contributions to equity method investments |
— | |||||||
Equity method investments – acquired |
— | |||||||
Share of results |
||||||||
Distributions received from equity method investments |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total equity method investments |
$ | $ | ||||||
|
|
|
|
6. |
Secured Term Loan Facilities and Revolving Credit Facilities |
December 31, 2021 |
June 30, 2022 |
|||||||
(in thousands) | ||||||||
Current Liability |
||||||||
Current portion of secured term loan facilities |
$ | $ | ||||||
Less: current portion of deferred financing costs |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Current portion of secured term loan facilities, net of deferred financing costs |
$ | $ | ||||||
|
|
|
|
|||||
Non-Current Liability |
||||||||
Secured term loan facilities and revolving credit facilities net of current portion* |
$ | $ | ||||||
Less: non-current portion of deferred financing costs |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Non-current secured term loan facilities and revolving credit facilities, net of current portion and non-current deferred financing costs |
$ | $ | ||||||
|
|
|
|
* |
Includes amounts relating to the Navigator Aurora Facility held within a lessor entity (for which legal ownership resides with a financial institution) that we are required to consolidate under U.S. GAAP into our financial statements as a variable interest entity. As of June 30, 2022, there was $ |
7. |
Senior Secured Bond |
December 31, 2021 |
June 30, 2022 |
|||||||
(in thousands) | ||||||||
Senior Secured Bond |
||||||||
Total Bond |
$ | $ | ||||||
Less deferred financing costs |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total Bond, net of deferred financing costs |
$ | $ | ||||||
|
|
|
|
8. |
Senior Unsecured Bond |
December 31, 2021 |
June 30, 2022 |
|||||||
(in thousands) | ||||||||
Senior Unsecured Bond |
||||||||
Total Bond |
$ | $ | ||||||
Less deferred financing costs |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total Bond, net of deferred financing costs |
$ | $ | ||||||
|
|
|
|
9. |
Derivative Instruments Accounted for at Fair Value |
December 31, 2021 |
June 30, 2022 |
|||||||||||
Fair Value Hierarchy Level |
Fair Value Hierarchy Level |
Fair Value Asset (Liability) |
Fair Value Asset (Liability) |
|||||||||
(in thousands) | ||||||||||||
Cross-currency interest rate swap agreement |
Level 2 | $ | ( |
) | $ | ( |
) | |||||
Interest rate swap agreements liabilities |
Level 2 | ( |
) | — | ||||||||
Interest rate swap agreements assets |
Level 2 | $ | $ |
10. |
Fair Value of Financial Instruments Not Accounted for at Fair Value |
December 31, 2021 |
June 30, 2022 |
|||||||||||||||||||
Financial Asset/Liability |
Fair Value Hierarchy Level |
Carrying Amount Asset (Liability) |
Fair Value Asset (Liability) |
Carrying Amount Asset (Liability) |
Fair Value Asset (Liability) |
|||||||||||||||
(in thousands) | ||||||||||||||||||||
2018 Bonds (note 7) |
Level 2 | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||||
2020 Bonds (note 8) |
Level 2 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Secured term loan facilities and revolving credit facilities (note 6) |
Level 2 | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) |
11. |
Earnings per share |
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
2021 |
2022 |
2021 |
2022 |
|||||||||||||
Basic and diluted income available to common stockholders (in thousands) |
$ | $ | $ | $ | ||||||||||||
Basic weighted average number of shares: |
||||||||||||||||
Effect of dilutive potential share options: |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted weighted average number of shares |
||||||||||||||||
|
|
|
|
|
|
|
|
12. |
Share-Based Compensation |
Number of non-vested restricted shares |
Weighted average grant date fair value |
Weighted average remaining contractual term |
||||||||||
Balance as of January 1, 2021 |
$ | |||||||||||
Granted |
||||||||||||
Vested |
( |
) | ||||||||||
Forfeited |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Balance as of December 31, 2021 |
$ | |||||||||||
Granted |
||||||||||||
Vested |
( |
) | ||||||||||
Forfeited |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Balance as of June 30, 2022 |
$ | |||||||||||
|
|
|
|
|
|
Options |
Number of options outstanding |
Weighted average exercise price per share |
Aggregate intrinsic value |
|||||||||
Balance as of January 1, 2021 |
$ | — | ||||||||||
Post vesting cancellations during the year |
( |
) | — | |||||||||
|
|
|
|
|
|
|||||||
Balance as of December 31, 2021 |
$ | — | ||||||||||
Options issued during the period |
— | |||||||||||
|
|
|
|
|
|
|||||||
Balance as of June 30, 2022 |
$ | $ | — | |||||||||
|
|
|
|
|
|
13. |
Commitments and Contingencies |
2022 |
2023 |
2024 |
2025 |
2026 |
Thereafter |
Total |
||||||||||||||||||||||
(in thousands) |
||||||||||||||||||||||||||||
Secured term loan facilities and revolving credit facilities |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
2020 Bonds |
— | — | — | — | — | |||||||||||||||||||||||
2018 Bonds |
— | — | — | — | — | |||||||||||||||||||||||
Office operating leases 1 |
||||||||||||||||||||||||||||
Navigator Aurora Facility 2 |
— | — | — | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total contractual obligations |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
The Company occupies office space in London with a new lease commenced in January 2022 for a period of |
2 |
The Navigator Aurora Facility is a loan facility held within a lessor entity (for which legal ownership resides with financial institutions) that we are required to consolidate under U.S. GAAP into our financial statements as a variable interest entity. Please read Note 16—Variable Interest Entities to our unaudited condensed consolidated financial statements. |
14. |
Operating Lease Liabilities |
December 31, 2021 |
June 30, 2022 |
|||||||
(in thousands) | ||||||||
One year |
$ | $ | ||||||
Two years |
||||||||
Three years |
||||||||
Four years |
||||||||
Five years |
||||||||
|
|
|
|
|||||
Total undiscounted operating lease commitments |
$ | $ | ||||||
Less: Discount adjustment |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total operating lease liabilities |
||||||||
Less: current portion |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Operating lease liabilities, non-current portion |
$ | $ | ||||||
|
|
|
|
15. |
Cash, cash equivalents and restricted cash |
December 31, 2021 |
June 30, 2022 |
|||||||
(in thousands) | ||||||||
Cash, cash equivalents and restricted cash |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Cash and cash equivalents held by VIE’s |
||||||||
Restricted cash |
||||||||
|
|
|
|
|||||
Total cash, cash equivalents and restricted cash |
$ | $ | ||||||
|
|
|
|
16. |
Variable Interest Entities |
17. |
Related Party Transactions |
Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
2021 |
2022 |
2021 |
2022 |
|||||||||||||
(in thousands) | ||||||||||||||||
Net income / (expenses) |
||||||||||||||||
Luna Pool Agency Limited |
$ | — | $ | ( |
) | $ | — | $ | ( |
) | ||||||
Ocean Yield Malta Limited |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Ultrabulk A/S ( |
— | ( |
) | — | ( |
) | ||||||||||
Naviera Ultranav Limitada |
— | — | — | ( |
) | |||||||||||
Norton Lilly International Inc. |
— | ( |
) | — | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | ( |
) | ( |
) | $ | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|
|
December 31, 2021 |
June 30, 2022 |
|||||||
(in thousands) | ||||||||
Due from Related Parties |
||||||||
Luna Pool Agency Limited |
$ | $ | ||||||
Unigas Pool |
||||||||
Dan Unity |
||||||||
Naviera Ultranav Limitada |
||||||||
|
|
|
|
|||||
Total |
$ | $ | ||||||
|
|
|
|
December 31, 2021 |
June 30, 2022 |
|||||||
(in thousands) | ||||||||
Due to Related Parties |
||||||||
Ocean Yield Malta Limited |
$ | $ | ||||||
Naviera Ultranav Limitada |
||||||||
|
|
|
|
|||||
Total |
$ | $ | ||||||
|
|
|
|
Exhibit Number |
Exhibit Description | |
101.INS |
Inline XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH |
Inline XBRL Taxonomy Extension Schema | |
101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase | |
101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase | |
101.LAB |
Inline XBRL Taxonomy Extension Label Linkbase | |
101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase |
NAVIGATOR HOLDINGS LTD. | ||||||
Date: August 18, 2022 |
By: |
/s/ Niall J Nolan | ||||
Name: |
Niall J Nolan | |||||
Title: |
Chief Financial Officer |