Navigator Gas Announces Preliminary Second Quarter 2025 Results (Unaudited)

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LONDON, Aug. 12, 2025 (GLOBE NEWSWIRE) --

Second Quarter Financial Highlights

• On August 12, 2025, the Board of Navigator Holdings Ltd., (NYSE: NVGS) ("Navigator Holdings”, "Navigator Gas”, "our”, "we”, "us” or the "Company”) declared a cash dividend of $0.05 per share of the Company's common stock for the quarter ended June 30, 2025, under the Company's Return of Capital policy, payable on September 17, 2025, to all shareholders of record as of the close of business U.S. Eastern Time on August 28, 2025 (the "Dividend”).

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• Also as part of the Company's Return of Capital policy for the quarter ended June 30, 2025, the Company expects to repurchase approximately $2.1 million of its common stock between August 14, 2025, and September 30, 2025, subject to operating needs, market conditions, legal requirements, stock price and other circumstances (the "share repurchases”), such that the Dividend and share repurchases together equal 25% of net income for the quarter ended June 30, 2025.
• On June 17, 2025 the Company paid a dividend of $0.05 per share of the Company’s common stock to all shareholders of record as of the close of business U.S. Eastern Time on May 29, 2025, totaling $3.5 million, and the Company repurchased 234,003 shares of common stock in the open market between March 19, 2025, and March 31, 2025, at an average price of $14.12 per share, totaling approximately $3.3 million, all as part of the Company's Return of Capital policy for the quarter ended March 31, 2025.
• On May 13, 2025, the Board authorized a new share repurchase plan authorizing the Company to repurchase up to an aggregate of $50 million of the Company’s common stock. The Company repurchased 2,056,588 shares of common stock in the open market between May 15, 2025, and June 30, 2025, at an average price of $14.41 per share, totaling $29.4 million. Subsequent to June 30, 2025 the Company repurchased 1,348,867 shares of common stock in the open market between July 1, 2025, and July 30, 2025, at an average price of $15.15 per share, totaling $20.4 million. The Company completed the new share repurchase plan on July 30, 2025. A total of 3,405,455 shares were repurchased in the open market at an average price of $14.68 per share between May 15, 2025 and July 30, 2025.
• The Company reported total operating revenues of $129.6 million for the three months ended June 30, 2025, compared to $146.7 million for the three months ended June 30, 2024.
• Net income attributable to stockholders of the Company was $21.5 million for the three months ended June 30, 2025, compared to $23.2 million for the three months ended June 30, 2024.
• EBITDA1 was $71.9 million for the three months ended June 30, 2025, compared to $75.1 million for the three months ended June 30, 2024.
• Adjusted EBITDA1 was $60.1 million for the three months ended June 30, 2025, compared to $77.6 million for the three months ended June 30, 2024.
• Basic earnings per share attributable to stockholders of the Company were $0.31 for the three months ended June 30, 2025, compared to $0.32 per share for the three months ended June 30, 2024.
• Adjusted basic earnings per share attributable to stockholders of the Company1 were $0.14 per share for the three months ended June 30, 2025, compared to $0.35 per share for the three months ended June 30, 2024 driven primarily by the decrease in net income attributable to stockholders of Navigator Holdings Ltd. and adjusting for the profit on sale of vessel.
• The Company increased its debt by $124.4 million to $1,026.5 million during the three months ended June 30, 2025, as the Company borrowed $300 million under its May 2025 Facility (as defined below) and $40 million under the March 2025 Bond Tap Issue (as defined below) and repaid our September 2020 Facility of $143.4 million and our October 2013 Facility of $14.7 million and made quarterly repayments on loan facilities and revolving credit facilities of $54.9 million. This is compared to an increase of $48.6 million to $902.1 million during the three months ended March 31, 2025 when the Company borrowed an aggregate of $76.8 million under its February 2025 Facility (as defined below), which borrowings were offset by quarterly repayments on loan facilities of $28.2 million.
• The Company's cash, cash equivalents, and restricted cash was $287.4 million as of June 30, 2025, compared to $139.0 million as of March 31, 2025 and $139.8 million as at December 31, 2024.
• On June 24, 2025 the Company entered into interest rate swaps to hedge the interest rate risk on approximately 79% of the outstanding Term Loan portion of our May 2025 Facility.

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1 EBITDA and Adjusted EBITDA, Adjusted Net Income Attributable to stockholders of Navigator Holdings Ltd., and Adjusted Basic Earnings per Share are not measurements prepared in accordance with U.S. GAAP. EBITDA represents net income before net interest expense, income taxes, depreciation and amortization. We define Adjusted EBITDA as EBITDA before profit/loss on sale of vessel, realized and unrealized gain/loss on non-designated derivative instruments and unrealized foreign currency exchange, write off of deferred financing costs and other income. Adjusted basic earnings per share represents basic earnings per share adjusted to exclude profit/loss on sale of vessel, realized and unrealized gain/loss on non-designated derivative instruments and unrealized foreign currency exchange, write off of deferred financing costs and other income. Adjusted Net Income Attributable to Stockholders of Navigator Holdings Ltd. represents net income attributable to stockholders of Navigator Holdings Ltd. before profit/loss on sale of vessel, realized and unrealized gain/loss on non-designated derivative instruments and unrealized foreign currency exchange, write off of deferred financing costs and other income. Management believes that EBITDA, Adjusted EBITDA, Adjusted Net Income Attributable to Stockholders of Navigator Holdings Ltd. and Adjusted Basic earnings per share are useful to investors in evaluating the operating performance of the Company. EBITDA, Adjusted EBITDA, Adjusted Net Income Attributable to Stockholders of Navigator Holdings Ltd. and Adjusted Basic earnings per share do not represent and should not be considered alternatives to consolidated net income, earnings per share, cash generated from operations or any other GAAP measure.

Other Highlights and Developments

Fleet Operational Update

The average daily time charter equivalent ("TCE”) rate across the fleet was $28,216 for the three months ended June 30, 2025, compared to $29,550 for the three months ended June 30, 2024, and $30,476 for the three months ended March 31, 2025.

Utilization across the fleet was 84.2% for the three months ended June 30, 2025 compared to 92.4% for the three months ended March 31, 2025, and 93.4% for the three months ended June 30, 2024.

Utilization and the average TCE rate in the second quarter were impacted by market uncertainties arising from trade tariffs as many customers opted to wait for more clarity, delaying entry into export and import agreements during this period. In addition, trade was further disrupted following imposition by the U.S. Bureau of Industry and Security ("BIS") of an export license requirement for all ethane movements from the U.S. to China from May 23, 2025, until July 2, 2025, when the license requirement was rescinded. Following the requirement being rescinded and as applicable trade tariff tensions ease, we expect utilization to improve during the third quarter of 2025.

In the second quarter approximately 44% of our earnings days were derived from petrochemical cargoes, approximately 42% were derived from LPG cargoes, with approximately 14% derived from ammonia. LPG cargo earnings days in the second quarter of 2025 was the highest for the Company since the first quarter of 2023, highlighting our capability to flex across several segments in response to the market. During the quarter we employed several semi-refrigerated vessels to transport incremental Iraqi ambient propane exports.

U.S. domestic ethylene prices started the second quarter of 2025 at $530 per metric ton ("pmt”), compared to an average price during the first quarter of 2025 of about $650 pmt and prices decreased further before reaching a low of $440 pmt in May 2025. Trading opportunities to Europe remained open throughout the second quarter of 2025 however the arbitrage was too narrow to accommodate significant ethylene volumes to Asia.

For the three months ended June 30, 2025, we had an average of 31 vessels engaged under time charters, 18 vessels on spot voyage charters and contracts of affreightment ("COAs"), and 9 vessels operating in the independently managed Unigas Pool. For the 12-month period commencing July 1, 2025, we have 42% of our available days covered by time charter contracts. For the same 12-month period our midsize vessels are exclusively on time charter contracts, about 70% of our fully and semi-refrigerated vessels are on time charter contracts, and most of our ethylene-capable vessels are expected to be employed in the spot voyage market.

The handysize 12-month forward-looking market assessment for semi-refrigerated vessels decreased from the end of the first quarter of 2025 compared to the end of second quarter of 2025 by $15,000 per calendar month ("pcm") to $935,000 pcm.

The handysize 12-month forward-looking market assessment for fully refrigerated vessels decreased from the end of the first quarter of 2025 compared to the end of second quarter of 2025 by $15,000 pcm to $775,000 pcm.

The handysize 12-month forward-looking market assessment for ethylene-capable vessels remained flat from the end of the first quarter of 2025 compared to the end of second quarter of 2025 at $1,100,000 pcm.

Sale of vessel

On May 13, 2025, the Company sold and delivered Navigator Venus, a 2000-built 22,085 cbm ethylene capable semi-refrigerated handysize vessel to a third party for net proceeds of $17.5 million, recognizing a gain from the sale of the vessel of $12.6 million in the second quarter of 2025.

New Share Repurchase Plan

On May 13, 2025, the Board of Navigator Holdings Ltd. authorized a new share repurchase plan in relation to Navigator’s common stock (the "New Share Repurchase Plan”). Pursuant to the New Share Repurchase Plan, Navigator was authorized to repurchase up to an aggregate of $50 million of the Company’s common stock via open market transactions, privately negotiated transactions or any other method permitted under U.S. securities laws and the rules of the U.S. Securities and Exchange Commission. The New Share Repurchase Plan was completed in full on July 30, 2025 with the Company having repurchased and canceled 3,405,455 shares of common stock at an average price of $14.68 per share, and with an aggregate total value of $50 million.

Joint Venture with Amon Maritime For Construction of Two New Ammonia Gas Carriers ("Ammonia Newbuild Vessels")

On July 17, 2025, the Company announced that it had entered into a joint venture with Amon Maritime (the "Amon Joint Venture"), pursuant to which the joint venture intends to acquire two newbuild 51,530 cubic meter capacity ammonia fueled liquefied ammonia carriers (the "Ammonia Newbuild Vessels”), which will also be capable of carrying liquefied petroleum gas. Subject to the terms and conditions of the investment, Navigator will own 80% of the joint venture, and Amon Martime will own 20%.

The Amon Joint Venture has entered into contracts with Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. to build the Ammonia Newbuild Vessels, with deliveries scheduled to take place in June and October 2028 respectively, at an average yard price of $84 million per vessel. Each of the Ammonia Newbuild Vessels have been awarded a NOK 90 million (approx. $9 million) investment grant from the Norwegian government agency Enova. It is expected that the Amon Joint Venture will finance the majority of the purchase price of the Ammonia Newbuild Vessels through commercial bank finance, with the remainder sourced from capital contributions from the Company and Amon Maritime. The Company expects to finance its share of the capital contributions from available cash resources, and these investments are expected to be accretive to the Company’s earnings.

Once delivered, subject to customary conditions, each of the Ammonia Newbuild Vessels is expected to be operated by the Amon Joint Venture pursuant to time charters with an established industry leader, each for a period of five years from delivery.

May 2025 Term Loan and Revolving Credit Facility

On May 2, 2025, the Company entered into a Senior Secured Term Loan and Revolving Credit Facility for up to $300 million (the "May 2025 Facility") with Nordea Bank Abp filial i Norge, Danish Ship Finance A/S, Danske Bank A/S, DNB (UK) Limited, ING Bank N.V. London Branch, and Skandinaviska Enskilda Banken AB (publ). The May 2025 Facility was used to repay the Company’s September 2020 secured loan facility in the amount of $143.4 million that was due to mature in September 2025, and the Company’s October 2013 secured loan facility that was due to mature in May 2027 in the amount of $14.7 million. The May 2025 Facility has a term of six years maturing in May 2031, is for a maximum principal amount of $300 million (split as $230 million Term Loan and $70 million Revolving Credit Facility), bears interest at Term Secured Overnight Financing Rate ("SOFR”) plus 170 basis points, and is to be repaid through 24 quarterly instalments on an age-adjusted 20 to 0 years profile, followed by a final balloon payment of $146.5 million, of which balloon payment includes amounts relating to both the Term Loan and Revolving Credit components.

Ethylene Export Terminal Update

We own a 50% share in an ethylene export marine terminal at Morgan’s Point, Texas (the "Ethylene Export Terminal”) through a joint venture (the "Export Terminal Joint Venture").

The Ethylene Export Terminal throughput for the three months ended June 30, 2025, was 268,117 metric tons, compared to 230,857 metric tons for the three months ended June 30, 2024, and 85,553 metric tons for the three months ended March 31, 2025.

Our share of the results of our equity investment in the Ethylene Export Terminal was a gain of $4.8 million for the three months ended June 30, 2025, compared to a gain of $4.7 million for the three months ended June 30, 2024, and a loss of $0.9 million for the three months ended March 31, 2025.

Despite a recent increase in domestic U.S. ethylene prices due to elevated feedstock costs, lower inventory levels, and higher domestic demand, we expect throughput for the third quarter of 2025 to be similar to the second quarter of 2025 supported by strong demand from Europe and as applicable trade tariff tensions ease.

The Ethylene Export Terminal, now expanded, has an increased ethylene export capacity of at least 1.55 million tons per annum. Two new multi-year offtake contracts related to the expanded volume have been signed and we continue to expect that additional capacity will be contracted during 2025. Until further offtake contracts are signed, available volume will be sold on a spot basis.

2024 Senior Unsecured Bonds and 2025 Bond Tap Issue

On October 17, 2024, the Company issued an aggregate principal amount of $100 million of new Senior Unsecured Bonds in the Nordic bond market (the "October 2024 Bonds"). The net proceeds of the October 2024 Bonds were used to redeem in full all of our previously outstanding 2020 Bonds. The borrowing limit under the bond terms governing the October 2024 Bonds is $200 million.

On March 28, 2025, pursuant to an addendum (the "March 2025 Bond Tap Issue Addendum”), the Company completed an additional aggregate principal tap issue of $40 million in the Nordic bond market under the same bond terms governing its outstanding October 2024 Bonds and bearing the same coupon rate as the October 2024 Bonds (the "March 2025 Bond Tap Issue”). The March 2025 Bond Tap Issue matures in October 2029, in line with the October 2024 Bonds, and also bears a fixed coupon of 7.25% per annum payable semi-annually in arrears on April 30 and October 30. Settlement in respect of the March 2025 Bond Tap Issue occurred on April 4, 2025. Following the issuance of the October 2024 Bonds and the March 2025 Bond Tap Issue, a further $60 million in aggregate principal amount of bonds remains available to be issued by the Company under the bond terms governing the October 2024 Bonds.

Return of Capital Policy

The Company’s current Return of Capital policy, which is subject to operating needs, market conditions, legal requirements, stock price and other circumstances, is based on paying out quarterly cash dividends of $0.05 per share of common stock and returning additional capital in the form of additional cash dividends and/or share repurchases, such that the two elements combined equal at least 25% of net income for the applicable quarter.

As part of the Return of Capital policy, we expect to repurchase the Company’s common stock and any such share repurchases will be made via open market transactions, privately negotiated transactions or any other method permitted under U.S. securities laws and the rules of the U.S. Securities and Exchange Commission.

Declarations of any dividends in the future, and the amount of any such dividends, are subject to the discretion of the Company’s Board. The Return of Capital policy does not oblige the Company to pay any dividends or repurchase any of its shares in the future and it may be suspended, discontinued or modified by the Company at any time, for any reason. Further, the timing of any share repurchases under the Return of Capital policy will be determined by the Company’s management and will depend on operating needs, market conditions, legal requirements, stock price, and other circumstances.

Legal Updates

The Company continues to monitor reports concerning Muhamad Kerry Adrianto and certain other business partners and executives of PT Pertamina (Persero), Indonesia’s state-owned energy company ("Pertamina”), following their arrest by Indonesian authorities on February 25, 2025 as part of an investigation into allegations of corruption. The allegations relate to the mismanagement of crude oil and oil refinery products at Pertamina between 2018 and 2023. The investigation by Indonesian authorities is ongoing.

Mr. Adrianto serves as a director of PT Navigator Khatulistiwa ("PTNK"), our Indonesian joint venture. The Company is in the process of removing Mr. Adrianto from his position as a director at PTNK. Three unencumbered vessels in our fleet and approximately $40.2 million of cash, which we have currently recorded as restricted cash, are owned by PTNK. The vessels were previously on time charter to Pertamina for the transportation of liquefied petroleum gas within Indonesia, the last and most recent of which time charters expired by its terms on February 15, 2025.

We continue to believe that these events will not have a material impact on the Company or our operations.

Unaudited Results of Operations for the Three Months Ended June 30, 2025 compared to the Three Months Ended June 30, 2024

The following table presents selected operating data for the three months ended June 30, 2025 and 2024, which we believe is useful in understanding the basis of movements in our operating revenues.

* Fleet Data - Our nine owned smaller vessels in the independently managed Unigas Pool are excluded.

** Non-GAAP Financial Measure - Time charter equivalent - TCE is a measure of the average daily revenue performance of a vessel. TCE is not calculated in accordance with U.S. GAAP. For all charters, we calculate TCE by dividing total operating revenues (excluding revenue from the Unigas Pool), less any voyage expenses, by the number of earning days for the relevant period. Under a time charter, the charterer pays substantially all of the vessel's voyage related expenses, whereas for voyage charters, also known as spot market charters, we pay all voyage expenses and charge our customers for these costs through our sales invoicing. TCE is a shipping industry performance measure used primarily to compare period-to-period changes in a company’s performance despite changes in the mix of charter types (i.e., voyage charters, time charters and contracts of affreightment) under which the vessels may be employed. We include average daily TCE, as we believe it provides additional meaningful information. Our calculation of TCE may not be comparable to that reported by other companies.

The following table represents a reconciliation of operating revenues to TCE. Operating revenues are the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.

*** Operating revenues and voyage expenses of our nine owned vessels in the independently managed Unigas Pool are excluded.

Operating Revenues. Operating revenues, net of address commissions, were $117.2 million for the three months ended June 30, 2025, a decrease of $14.4 million or 10.9% compared to $131.6 million for the three months ended June 30, 2024. This decrease was primarily due to:

• a decrease of approximately $5.4 million attributable to a decrease in average monthly TCE rates, which decreased to an average of approximately $28,216 per vessel per day ($858,234 per vessel per calendar month) for the three months ended June 30, 2025, compared to an average of approximately $29,550 per vessel per day ($898,823 per vessel per calendar month) for the three months ended June 30, 2024;
• a decrease of approximately $11.2 million attributable to a decrease in fleet utilization, which decreased to 84.2% for the three months ended June 30, 2025, compared to 93.4% for the three months ended June 30, 2024;
• an increase of approximately $4.1 million or 3.6%, attributable to a net 148-day increase in vessel available days for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. This increase was primarily a result of the effect of the acquisition of the three German-built 17,000 cubic meter capacity, ethylene-capable liquefied gas vessels (the "Purchased Vessels"), during the three months ended June 30, 2025, compared to the three months ended June 30, 2024; and
• a decrease of approximately $1.9 million primarily attributable to a decrease in invoiced pass-through voyage expense for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. 

Operating Revenues - Unigas Pool. Operating revenues - Unigas Pool was $12.4 million a decrease of 17.5% for the three months ended June 30, 2025, compared to $15.1 million for the three months ended June 30, 2024, in part due to decreased utilization across the pool fleet, and represents our share of the operating revenues earned from our nine vessels operating within the independently managed Unigas Pool, based on agreed pool points.

Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.5% of operating revenues, was $1.5 million for the three months ended June 30, 2025, compared to $1.9 million for the three months ended June 30, 2024.

Voyage Expenses. Voyage expenses decreased by $1.9 million or 11.2% to $15.2 million for the three months ended June 30, 2025, from $17.1 million for the three months ended June 30, 2024. These voyage expenses are pass through costs, corresponding to a decrease in operating revenues of the same amount.

Vessel Operating Expenses. Vessel operating expenses increased by $3.9 million or 8.9% to $47.4 million for the three months ended June 30, 2025, from $43.5 million for the three months ended June 30, 2024. Average daily vessel operating expenses increased by $370 per vessel per day, or 4.33%, to $8,905 per vessel per day for the three months ended June 30, 2025, compared to $8,535 per vessel per day for the three months ended June 30, 2024, with the an increase driven by an increase in the number of vessels owned as a result of the acquisition of the Purchased Vessels and the timing of maintenance costs incurred during the three months ended June 30, 2025 compared to three months ended June 30, 2024.

Depreciation and Amortization. Depreciation and amortization increased by $1.5 million to $34.8 million for the three months ended June 30, 2025 compared to $33.3 million for the three months ended June 30, 2024, primarily related to the acquisition of the Purchased Vessels. Depreciation and amortization included amortization of capitalized drydocking costs of $11.4 million and $5.7 million for the three months ended June 30, 2025 and 2024, respectively.

General and Administrative Costs. General and administrative costs decreased by $1.1 million or 9.3% to $10.3 million for the three months ended June 30, 2025, from $11.3 million for the three months ended June 30, 2024. The decrease is in part due to non-recurring costs related to the public offering of a total of 7.0 million common shares by BW Group incurred in the three months ended June 30, 2024.

Unrealized Loss on Non-Designated Derivative Instruments. The unrealized loss of $1.3 million on non-designated derivative instruments for the three months ended June 30, 2025, relates to non-cash fair value losses on interest rate swaps associated with a number of our secured term loan and revolving credit facilities, as a result of a decrease in forward SOFR interest rates, compared to an unrealized loss of $1.6 million for the three months ended June 30, 2024.

Interest Expense. Interest expense decreased by $0.2 million, or 1.5%, to $15.1 million for the three months ended June 30, 2025, from $15.3 million for the three months ended June 30, 2024. This is primarily a result of lower U.S. dollar SOFR rates and lower margins paid by the Company, offset by an increase in the average debt outstanding in the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Unrealized Foreign Exchange Gains and Loss. The unrealized foreign exchange gain of $0.8 million for the three months ended June 30, 2025, relates to gains on foreign currency cash balances held, driven primarily by the Indonesian Rupiah strengthening against the U.S. dollar during the three months ended June 30, 2025, compared to an unrealized loss of $0.9 million for the three months ended June 30, 2024. Unrealized foreign exchange loss is separately disclosed and disaggregated from interest expense. Prior period balances have been reclassified to conform to the current period presentation.

Income Taxes. Income taxes relate to taxes on our subsidiaries and businesses incorporated around the world, including those incorporated in the United States of America. Income taxes were an expense of $1.5 million for the three months ended June 30, 2025, compared to an expense of $1.2 million for the three months ended June 30, 2024, primarily related to movements in current tax and deferred tax in relation to our equity investment in the Ethylene Export Terminal.

Share of Result of Equity Method Investments. The share of the result of the Company’s 50% ownership in the Export Terminal Joint Venture was a gain of $4.8 million for the three months ended June 30, 2025, compared to a gain of $4.7 million for the three months ended June 30, 2024. Volumes exported through the Ethylene Export Terminal were 268,117 tons for the three months ended June 30, 2025, compared to 230,857 tons for the three months e