Navigator .(US:NVGS)2021-03-19 17:40Financial Data and Key Metrics Changes - The company reported a net income of $3.4 million for Q4 2020, an improvement from a net loss of $2.8 million in Q4 2019 and a profit of $1.5 million in the previous quarter [7][16][23] - Adjusted EBITDA for Q4 was $32 million, with $2.1 million generated from terminal operations and $29.9 million from the shipping segment [16][17] - Total operating revenue from vessels increased to $87.4 million in Q4, up from $81.4 million in the previous quarter and $76.1 million in Q4 2019 [17][19] Business Line Data and Key Metrics Changes - Fleet utilization improved to 91% in Q4, compared to 78.8% in the prior quarter, with a full-year utilization rate of 86.8%, consistent with 2019 [8][18] - The ethylene joint venture terminal achieved an annual throughput of over 420,000 tons, with Q4 EBITDA of $2.1 million [12][13] Market Data and Key Metrics Changes - The company held a 61% market share of all ethylene cargoes exported from the U.S. during the quarter, translating to 7 voyages for 5 vessels [27][30] - LPG exports from the East Coast increased significantly, with cargoes rising from 2 in November to 10 in January [30] Company Strategy and Development Direction - The company aims to maximize existing capacity at the ethylene joint venture terminal before considering future expansions, which can be done at a relatively low cost [42][43] - There is a focus on potential consolidation opportunities in the marketplace and investments to enhance vessel sustainability [43] Management's Comments on Operating Environment and Future Outlook - The management noted that the business environment improved in the second half of 2020, but ongoing COVID-19 impacts are expected until vaccination levels rise significantly [4][5] - The company anticipates normalization of the ethylene supply-demand balance in the U.S. and positive influences from new LPG export terminals starting in April [35] Other Important Information - The company completed Phase 2 of the Morgan's Point ethane JV terminal, which is expected to enhance throughput and efficiency [12] - Cash at year-end stood at $59.3 million, with total debt at $850.2 million, and no maturities on any facilities until Q4 2022 [24][25] Q&A Session Summary Question: Strategic priorities going forward - The company plans to maximize current assets and may consider expanding the ethylene joint venture terminal if market conditions are favorable [40][42] Question: Impact of force majeure on revenue - Force majeure suspends contracts without extending them, requiring parties to seek alternative supplies [45] Question: Contribution from the JV terminal - The decline in contributions was primarily due to Hurricane Laura and the need to fill storage tanks, which temporarily disrupted exports [52][56] Question: Utilization impact from winter storms - Utilization is expected to revert to mid-80s for Q1 2021 due to the impact of the Texas freeze [61] Question: Future exports from new terminals - Discussions are ongoing for exports from the Repauno and Pembina terminals, with expectations for fixtures to be completed soon [67]