Navigator Holdings Ltd. · NYSE:NVGS
Navigator — Debt Investor Presentation (September 2019)
26 slides from Navigator's debt investor presentation, September 2019
Slide 1: Company Presentation September 2019
Company Presentation September 2019 “Navigator Holdings Ltd. (NYSE:NVGS)” 1
Slide 2: Forward-looking statements
This presentation contains certain statements that may be deemed to be “forward-looking statements” within the meaning of applicable federal securities laws. Most forward-looking statements contain words that identify them as forward-looking, such as “may”, “plan”, “seek”, “will”, “expect”, “intend”
Slide 3: Table of Contents
TABLE OF CONTENTS NAVIGATOR GAS INDUSTRY TRENDS ETHYLENE EXPORT TERMINAL JV FINANCIAL INFORMATION 3
Slide 4: Company Highlights
COMPANY HIGHLIGHTS ■ A highly versatile modern fleet with an average age of 8.5 years capable of serving all customer needs across the three different cargo types: LPG, petrochemicals, and ammonia – maximizing utilization and profitability Market leader in handysize gas carriers with strong ■ Operat
Slide 5: Highly Experienced Management Team
HIGHLY EXPERIENCED MANAGEMENT TEAM ■ Chairman of the Board since August 2006 and Chief Executive Officer until August 22, 2019 ■ Former Managing Director at Lehman Brothers Inc, where he was employed for more than 37 years David Butters ■ A former Chairman of the board of directors of GulfMark Offsh
Slide 6: NVGS - A Global Leader in Shipping of Liquefied Gases
NVGS - A GLOBAL LEADER IN SHIPPING OF LIQUEFIED GASES Highlights Revenue & EBITDA 2013 – 2019H1(LTM) Balance Sheet ■ Navigator Gas is the market leading shipper of liquefied Net operating revenue EBITDA Total assets Total equity gases (LPG, petchems and ammonia) in the handysize segment $310m $309m
Slide 7: Ethylene Export Terminal Investment Fundamentals
ETHYLENE EXPORT TERMINAL INVESTMENT FUNDAMENTALS Backdrop for the Terminal - Diversifying Along the Supply Chain Provide Increasing Share of Stable Cash Flows ■ Continued international ethylene arbitrage persists and further growth is capped by ■ More than half of the terminal’s export capacity is t
Slide 8: Table of Contents
TABLE OF CONTENTS NAVIGATOR GAS INDUSTRY TRENDS ETHYLENE EXPORT TERMINAL JV FINANCIAL INFORMATION 8
Slide 9: Navigator Gas Global Footprint
NAVIGATOR GAS GLOBAL FOOTPRINT LPG 4,250,000 ¦ 5,449 Petrochemicals 850,000 ¦ 3,932 Cargo Volume (mts) Earnings Days Ammonia 650,000 ¦ 802 Figures up to 4Q2018 We enable the extension of the midstream business model to international markets by means of a ‘virtual pipeline’ 9
Slide 10: Our Strategy of Diversification: Stability in a Cyclical Business
OUR STRATEGY OF DIVERSIFICATION: STABILITY IN A CYCLICAL BUSINESS 140 Ton Mile (Thousands) Changing Cargo Mix – Move from Simple to Complex 120 LPG 100 100% 80 60 90% 40 20 - 80% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Petchem Spot 25 Ton Mile (Thousands) 70% Petrochemicals 20 60% Petchem
Slide 11: Offering Flexibility Across All NGLs: Feedstock & Derivatives
OFFERING FLEXIBILITY ACROSS ALL NGLS: FEEDSTOCK & DERIVATIVES Loading C3 Propane Discharging C4 Butadiene Loading C2 Ethylene 11
Slide 12: 15,000-25,000 CBM Handysize Demographics and TC Rates
15,000-25,000 CBM HANDYSIZE DEMOGRAPHICS AND TC R ATES LPG Handysize Global Fleet Ethane/Ethylene Global Fleet >15,000 cbm Existing & Newbuild Owner Semi Ref. Fully Ref. Total Owner Total Handysize Midsize VLEC Navigator Gas 17 6 23 Navigator Gas 10 4 - 14 Ultragas 8 - 8 Evergas - 8 2 10 Naftomar 3
Slide 13: Road to 2020 Transformational Milestones
ROAD TO 2020 TRANSFORMATIONAL MILESTONES Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Petrochemicals The terminal will have a throughput Sudden increase of specialized petrochemical capability of 1 million metric tons (Mts) of PPL expansion products supporting deep sea Handysize ton- Enterprise adding ad
Slide 14: Inaugural MEII Ethane Cargo Loaded End November
INAUGURAL MEII ETHANE CARGO LOADED END NOVEMBER Loading C2 Ethane 14
Slide 15: Table of Contents
TABLE OF CONTENTS NAVIGATOR GAS INDUSTRY TRENDS ETHYLENE EXPORT TERMINAL JV FINANCIAL INFORMATION 15
Slide 16: U.S. Ethylene Competitive Fundamentals
U.S. ETHYLENE COMPETITIVE FUNDAMENTALS US ethylene production is expected to outpace demand going forward International ethylene price arbitrage continue, but further exports is as new projects are coming on stream capped by current insufficient export infrastructure US Production and Consumption US
Slide 17: 1st Phase Is Nearing Completion
1ST PHASE IS NEARING COMPLETION Phase 2 expected to be completed in late Phase 1 on schedule to become operational from the end of Q4 2019 2020 Loading arms – final testing Liquefaction train – to be completed Q4 2019 Current ENE terminal construction Refrigerated storage tank on schedule to be comp
Slide 18: Ethylene Terminal - Finance Overview
ETHYLENE TERMINAL - FINANCE OVERVIEW Capex schedule and financing overview Current Offtake Status ■ Navigator’s share of total capital commitments estimated Navigator’s share of Capex: Already Paid Remaining Installments to be USD 155 million which is materially below initial budget (progressing ahe
Slide 19: Table of Contents
TABLE OF CONTENTS NAVIGATOR GAS INDUSTRY TRENDS ETHYLENE EXPORT TERMINAL JV FINANCIAL INFORMATION 19
Slide 20: Gas Carrier Charter Rates
GAS CARRIER CHARTER R ATES Navigator’s Daily TC Rates (US$) 78,000cbm - VLGC $33,000 $28k $30k $30k $30,000 $29k 22,000cbm - Semi-ref - Handy $27,000 $26k $24k $24k $26k 22,000cbm - Fully-ref - Handy $24,000 $21k $22k $21k $21,000 $2,000 8,250cbm - Small $2,000 $18,000 Average 2009 –Q2 2019 $15,000
Slide 21: Break Even Analysis
BREAK EVEN ANALYSIS Comments Break even and TCE rates 30,000 For the quarter ended June 30, 2019, the Company had a cash break even rate of US$ $27,233 10,317 per day per vessel, before interest expenses and debt repayment 25,000 $22,975 $22,758 $21,712 $21,601 $21,782 $20,987 $20,901 Including inte
Slide 22: Strong Balance Sheet & Banking Relationships
STRONG BALANCE SHEET & BANKING RELATIONSHIPS Actual Debt Loan to Debt maturities per year (US$’M) As of June 30, 2019 (US$'M) (US$’M) Value % US$100 million Bond US$107 million facility US$160.8 million facility US$278 million facility Vessel Net Book Value 1,640 863.7 52.7% US$290 million facility
Slide 23: Finance: Balance Sheet
FINANCE: BALANCE SHEET (US$'M) 2015 2016 2017 2018 Q2 2019 Assets Cash and cash equivalents 87.8 57.3 62.1 71.5 47.3 Other current assets 37.2 36.5 50.0 46.6 57.7 Vessels in operation (net) 1,264.4 1,480.4 1,740.1 1,670.9 1,639.8 Vessels under construction 170.8 150.5 - - - Investment in equity acco
Slide 24: Finance: Cash Flow Statement
FINANCE: CASH FLOW STATEMENT (US$'M) 2015 2016 2017 2018 Q2 2019 Net Income 98.1 44.6 5.3 -5.7 -11.0 Depreciation and amortisation 53.5 62.3 73.6 76.1 37.9 Drydocking payments -11.6 -9.9 -0.3 -5.8 -5.2 Non cash movements 5.9 4.9 6.6 5.6 1.6 Change in working capital 3.6 -15.2 -9.3 7.5 -6.6 Net Cash
Slide 25: Finance: Income Statement
FINANCE: INCOME STATEMENT (US$'M) 2015 2016 2017 2018 Q2 2019 Net operating revenue 281.5 251.9 243.1 248.4 119.9 Operating expenses: Address and brokerage commissions 7.0 5.8 5.4 5.1 2.5 Charter in costs - - - - - Vessel operating expenses 78.8 90.9 101.0 106.7 56.9 Depreciation and amortization 54
Slide 26: Contact details
NGT Services (UK) Limited Verde Building 10 Bressenden Place SW1E 5DH United Kingdom Tel: +44 (0) 20 7340 4850 Navigator Gas US, LLC 650 Madison Avenue 25th Floor New York NY 10022 United States of America Tel: +1 (212) 355 5893 www.navigatorgas.com 26
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