Navigator .(US:NVGS)2025-05-15 15:00Financial Data and Key Metrics Changes - In Q1 2025, the company generated record quarterly revenue of $151 million, up 13% compared to the same period last year [3][4] - Adjusted EBITDA for Q1 was $72.8 million, consistent with Q1 2024 and Q4 2024 [4][13] - Net income attributable to stockholders was $27 million, the highest quarterly net income in the last three years [15][16] - Basic earnings per share were 39 cents, with adjusted net income of $25.5 million or 37 cents per share [15][16] Business Line Data and Key Metrics Changes - The average time charter equivalent (TCE) rate for Q1 was $30,476 per day, an 8% increase from both the previous quarter and the same period last year [5][12] - Utilization rate was 92.4%, up 3.1% compared to Q1 2024 [13] - Income from the joint venture terminal was down significantly, with throughput limited to 86,000 tonnes for the quarter [6][15] Market Data and Key Metrics Changes - The company faced a challenging market environment due to reduced domestic supply and higher domestic prices, leading to a narrow arbitrage [6][10] - April utilization was weaker due to cargo cancellations, but May showed a gradual normalization in vessel utilization [10][24] - The Handysize order book remains at 9%, with 22% of global Handysize vessels over 20 years old, indicating a favorable supply picture [11][35] Company Strategy and Development Direction - The company is focused on fleet renewal, having acquired three secondhand ethylene-capable vessels and sold an older vessel, Navigator Venus, for $17.5 million [7][42] - A new share repurchase program of up to $50 million has been authorized to enhance shareholder returns [38][39] - The company anticipates materially higher terminal throughput in Q2 and a widening ethylene arbitrage [41][46] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand fundamentals, citing continued growth in U.S. natural gas liquids production and export infrastructure [46] - The company expects Q2 terminal throughput to be significantly higher than Q1, supported by a favorable arbitrage environment [41][46] - Management noted that despite recent market volatility, the business model remains robust, allowing for continued capital returns to shareholders [45][70] Other Important Information - The company reported a strong cash position of $139 million as of March 31, 2025, despite significant capital expenditures [15][16] - The refinancing of $300 million was completed at the lowest margins ever for the company, reflecting strong support from banking partners [5][19] - The company plans to continue investing in energy and fuel-saving initiatives, which are expected to have short payback periods [23] Q&A Session Summary Question: Impact of tariffs on cargo opportunities - Management noted that while LPG trade to China was halted, alternative trades were found, benefiting the market overall [50][51] Question: Future rate expectations - Management indicated that the strong rates in Q1 were primarily due to time charters, with expectations for increased volumes in Q2 [52][54] Question: Timing for debt on terminal project - Management stated that while putting debt on the terminal project is on the list, it is not an immediate priority [56][58] Question: Buyback program deployment - Management confirmed plans to utilize the new buyback program in the near term, with a focus on returning capital to shareholders [62][63] Question: Chartering strategy amidst market volatility - Management is looking to increase the percentage cover for the next twelve months, reflecting a proactive approach to market conditions [64][65]