Navigator .(US:NVGS)2022-03-11 18:24Financial Data and Key Metrics Changes - Operating revenues increased by 26% compared to Q3 2021, with net income before impairment losses reaching $16.7 million, a 149% increase from $6.7 million in Q3 2021 [11][15] - Adjusted EBITDA for Q4 was $55.2 million, up from $32 million in Q4 2020 and $40.3 million in Q3 2021 [16] - Total vessel operating revenue for the quarter was $129.4 million, compared to $87.4 million for the same period last year and $102.7 million in Q3 2021 [16] Business Line Data and Key Metrics Changes - The increase in revenue included $11.5 million from 7 additional Handysize vessels acquired through the Ultragas transaction and $15.9 million from the Unigas Pool [17] - Average charter rates rose to approximately $22,500 per day, up from $21,123 per day in Q4 2020, contributing an additional $5.1 million to total revenues [19] - Operating revenue from the Pool was $8.3 million for the quarter, with a net benefit of $1.9 million from the Pool compared to a $600,000 deficit in Q4 2020 [21][22] Market Data and Key Metrics Changes - The company reported a profit of $6.4 million from the ethylene Marine Export Terminal based on 241,500 tons of ethylene throughput charges [29] - The geopolitical situation, particularly the conflict in Ukraine, is expected to impact trade flows and increase shipping distances, potentially raising freight rates [8][12] Company Strategy and Development Direction - The company aims to leverage its robust balance sheet and strong cash position to facilitate further growth despite geopolitical uncertainties [12] - There is a focus on debt reduction and potential capital allocation towards alternative investments, including the possibility of introducing a dividend or share buyback policy [79] Management's Comments on Operating Environment and Future Outlook - Management highlighted the significant impact of the Russia-Ukraine conflict on energy markets and shipping, with expectations of increased demand for North American exports [6][8] - The company anticipates a strong demand for ethylene and ethane exports, benefiting from competitive pricing against oil [42][48] Other Important Information - The company appointed Dr. Anita Odedra to the Board of Directors, bringing valuable industry experience [13] - Impairment losses on 9 vessels amounted to $63.7 million due to a reduction in the estimated useful life of the vessels [25] Q&A Session Summary Question: Impact of sanctions on vessels chartered to Russian counterparties - Management confirmed that existing charters comply with current sanctions and can be terminated if sanctions change [52][54] Question: Future utilization of the ethylene terminal - Management indicated strong expectations for terminal throughput, with nearly full capacity contracted [64] Question: CO2 transportation partnership developments - The company is actively working on CO2 transportation services and sees continued interest in this area despite current geopolitical tensions [84][85]