Navigator Holdings Ltd. · NYSE:NVGS
Navigator — Investor Presentation (June 2019)
28 slides from Navigator's investor presentation, June 2019
Slide 1: Investor Meeting June 2019
Investor Meeting June 2019 “Navigator Holdings Ltd. (NYSE:NVGS)”
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: NVGS A Global Leader in Shipping of Liquefied Gases
NVGS A GLOBAL LEADER IN SHIPPING OF LIQUEFIED GASES Highlights Revenue & EBITDA 2013 – 2018H1(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 52% $260m • Op
Slide 4: Company Highlights
COMPANY HIGHLIGHTS ■ A highly versatile modern fleet with an average age of 7.6 years capable of serving all customer needs across the three different cargo types: LPG, petrochemicals, and ammonia – maximizing utilization and profitability Market leader in handy-size gas carriers with strong ■ Opera
Slide 5: Table of Contents
TABLE OF CONTENTS INDUSTRY TRENDS ETHYLENE EXPORT TERMINAL JV NAVIGATOR GAS FINANCIAL INFORMATION 5
Slide 6: 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’ 6
Slide 7: Our Strategy of Diversification: Stability in a Cyclical Business
OUR STRATEGY OF DIVERSIFICATION: STABILITY IN A CYCLICAL BUSINESS 120 Changing Cargo Mix – Move from Simple to Complex 100 LPG 80 Million Tons 100% 60 >40% 40 90% 20 Other Petchems - 80% Spot 2013 2014 2015 2016 2017 2018 2019 2020 25 70% 20 Petrochemicals Ethylene Spot Million Tons 60% 15 Petchems
Slide 8: 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 9: Road to 2020 Transformational Milestones
ROAD TO 2020 TRANSFORMATIONAL MILESTONES 2 Enterprise Navigator Ethylene Export Terminal Mariner East 2 1 Opening of new The 275,000 bbls/day Mariner pipelines ramp up The terminal will have a throughput capability East 2 pipeline, extending shipping out of of 1 million metric tons (Mts) of ethylene
Slide 10: Inaugural MEII Ethane Cargo Loaded End November
INAUGURAL MEII ETHANE CARGO LOADED END NOVEMBER Loading C2 Ethane
Slide 11: Table of Contents
TABLE OF CONTENTS INDUSTRY TRENDS ETHYLENE EXPORT TERMINAL JV NAVIGATOR GAS FINANCIAL INFORMATION 11
Slide 12: U.S. Ethylene Competitive Fundamentals
U.S. ETHYLENE COMPETITIVE FUNDAMENTALS US Ethylene Expansions 2017 – 2022 US Production & International Ethylene Price Arbitrage Mts Millions 2020- Mts 000’s 2018 2019 2022 ■ The US chemical industry benefits from long lasting resources of cheap ethane 45 Exxon – Baytown 1,500 gas providing a compet
Slide 13: Offering Flexibility Across All NGLs: Feedstock & Derivatives
OFFERING FLEXIBILITY ACROSS ALL NGLS: FEEDSTOCK & DERIVATIVES Loading C3 Propane Discharging C4 Butadiene Loading C2 Ethylene 13
Slide 14: Ethylene Terminal First Step in a Structural Shift
ETHYLENE TERMINAL FIRST STEP IN A STRUCTURAL SHIFT Enterprise Navigator Ethylene Export Terminal ENE terminal layout Current ENE terminal construction Operational Throughput Chiller Tank Ship Load rate Docks Expansion 1st Phase Capacity Capacity Capacity Up to 1Mmts 125mts 4Q2019 60,000cbm 1,000mts
Slide 15: Ethane / Ethylene Terminal Docks in Action
ETHANE / ETHYLENE TERMINAL DOCKS IN ACTION Loading C2 Ethane
Slide 16: Ethylene Terminal - Finance Overview
ETHYLENE TERMINAL - FINANCE OVERVIEW Capex and Financing Considerations 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 ahead
Slide 17: Table of Contents
TABLE OF CONTENTS INDUSTRY TRENDS ETHYLENE EXPORT TERMINAL JV NAVIGATOR GAS FINANCIAL INFORMATION 17
Slide 18: Gas Carrier Charter Rates
GAS CARRIER CHARTER R ATES Navigator’s Daily TC Rates (US$) 78,000cbm - VLGC $33,000 $28k $30k $30k 22,000cbm - Semi-ref - Handy $30,000 $29k $27,000 $26k 22,000cbm - Fully-ref - Handy $24k $24k $26k $24,000 $21k $20k $21k 8,250cbm - Small $21,000 $2,000 $2,000 $18,000 Average 2009 –Q1 2019 $15,000
Slide 19: Solid Committed Revenue
SOLID COMMITTED REVENUE Total US$ 430.1M in committed revenue 2019-2021 2022+ Committed Revenue EBITDA Average TCE Committed Revenue US$ 277.7M US$ 182.4.8M US$ 24,351 US$ 152.4M Committed revenue for the Navigator fleet 2019 2020 2021 Total Available days 13,730 13,712 13,738 41,180 Committed chart
Slide 20: Break Even Analysis
BREAK EVEN ANALYSIS Comments Break even and TCE rates 30,000 For the quarter ended March 31, 2019, the Company had a cash break even rate of US$ £27,233 10,932 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 int
Slide 21: Strong Balance Sheet & Banking Relationships
STRONG BALANCE SHEET & BANKING RELATIONSHIPS Lending Facilities Outstanding - end of year (US$’M) As of December 31, 2018 Actual (US$'M) 847 Cash 71.5 839 Debt 72 45 740 Secured term loan facilities 668.5 72 Unsecured Notes 172.6 136 75 664 120 Total debt 841.1 72 60 Total Shareholders’ equity 955.1
Slide 22: Finance: Balance Sheet
FINANCE: BALANCE SHEET (US$'M) 2015 2016 2017 2018 Q1 2019 Assets Cash and cash equivalents 87.8 57.3 62.1 71.5 53.9 Other current assets 37.2 36.5 50.0 46.6 57.6 Vessels in operation (net) 1,264.4 1,480.4 1,740.1 1,670.9 1,653.9 Vessels under construction 170.8 150.5 - - - Investment in equity acco
Slide 23: Finance: Cash Flow Statement
FINANCE: CASH FLOW STATEMENT (US$'M) 2015 2016 2017 2018 Q1 2019 Net Income 98.1 44.6 5.3 -5.7 -3.3 Depreciation and amortisation 53.5 62.3 73.6 76.1 18.9 Drydocking payments -11.6 -9.9 -0.3 -5.8 -1.7 Non cash movements 5.9 4.9 6.6 5.6 0.4 Change in working capital 3.6 -15.2 -9.3 7.5 -11.5 Net Cash
Slide 24: Finance: Income Statement
FINANCE: INCOME STATEMENT (US$'M) 2015 2016 2017 2018 Q1 2019 Net operating revenue 281.5 251.9 243.1 248.4 62.7 Operating expenses: Address and brokerage commissions 7.0 5.8 5.4 5.1 1.3 Charter in costs - - - - - Vessel operating expenses 78.8 90.9 101.0 106.7 29.5 Depreciation and amortization 54.
Slide 25: Strategy & Outlook
STRATEGY & OUTLOOK Maintain dominant position in the company's core handysize segment. Upgrade/renew fleet as necessary Complete construction of an ethylene export terminal on the US Gulf with our co-owner, Enterprise Product Partners and continue to enable the expansion of the midstream value chain
Slide 26: Notes
NOTES: __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ ____________________________________________________________________
Slide 27: Notes
NOTES: __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ ____________________________________________________________________
Slide 28: 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
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