Q1 2025 Navigator Holdings Ltd Earnings Call

Operator: as an attendee and will be muted throughout the meeting.

Throughout the meeting and welcome to the Navigator Holdings Conference call for the first quarter 2025 financial results.

Randy Givens: On today's call, we have Mads Peter Zacho, Chief Executive Officer, Gary Chapman, Chief Financial Officer, Oeyvind Lindeman, Chief Commercial Officer, and myself, Randy Givens, Executive Vice President of Investment Relations and Business Development in North America.

Randy: On today's call, we have modest pizza Sakel, Chief Executive Officer, Gary Chapman, Chief Financial Officer, Boyd amended and Chief commercial officer, and myself, Randy <unk> Executive Vice President of Investor Relations and business development in North America I must advise you that this conference call is being recorded today.

Randy Givens: I must advise you that this conference call is being recorded today. As we conduct today's presentation, we'll be making various forward looking statements. These statements include, but are not limited to the future expectations, plans and prospects from both a financial and operational perspective.

Randy: As we conduct today's presentation, we'll be making various forward looking statements. These statements include but are not limited to the future expectations plans and prospects from both a financial and operational perspective and are based on management assumptions forecast and expectations as of today's date may 15th 2025 actual results may differ significantly from our forward.

Randy Givens: And are based on management assumptions, forecast and expectations as of today's date, May 15th, 2025. Actual results may differ significantly from our forward looking information and financial forecast. Additional information about these factors and assumptions are included in our annual and quarterly reports filed with the Securities and Exchange Commission.

Speaker Change: Looking information and financial forecast additional information about these factors and assumptions are included in our annual and quarterly reports filed with the Securities and Exchange Commission with that I'll now pass the floor to match Peters <unk>, the company's Chief Executive Officer. Please go ahead.

Randy Givens: With that, I now pass the floor to Mads Peter Zacho, the company's Chief Executive Officer. Please go ahead, Mads. Thank you so much.

Speaker Change: Thank you so much good morning, good afternoon, and thank you for joining this navigator gas earnings call for Q1 2025.

Mads Peter Zacho: Good morning, good afternoon, and thank you for joining this Navigator Gas Earnings Call for Q1 2025. As a start, I'll just review the key data from our Q1-25 performance, and then I'll go over the outlook for the rest of the year. After that, Gary, Oeyvind, and Randy will discuss our results in more detail. In the first quarter, we again generated more revenues of 13% compared to same period last year. This was a new record quarterly revenue, and it was driven by both high utilization and higher rates.

Speaker Change: This is Todd I'll just review the key data from our Q1 'twenty five performance and then I'll go over the outlook for the rest of the year.

Speaker Change: After that Gary or even and Randy will discuss our results in more detail.

Speaker Change: In the first quarter, we again.

Speaker Change: Generated more revenues up 13% compared to the same period last year.

Speaker Change: This was a new record quarterly revenue and it was driven by both high utilization and higher rates.

Speaker Change: Income from our joint venture terminal was down significantly.

Mads Peter Zacho: Income from our joint venture terminal was down significantly. Adjusted EBITDA for Q1 was $73 million in line with both same period of 2024 and also Q4. The balance sheet is strong with a robust cash position, even after investments into three second-hand vessels and further investments, installments paid into the MGC new building. With the recent $40 million bond tap and the $300 million refinancing proceeds, the cash balance will be substantially stronger this second quarter. I'd like to add that the $300 million refinancing was signed as planned in the middle of the most volatile trade environment that we've seen in decades.

Speaker Change: Adjusted EBITDA for Q1 was $73 million in line with both same period.

Speaker Change: 2024, and also Q4.

Speaker Change: The balance sheet is strong with a robust cash position, even after investments into three secondhand vessels and further investments installments paid into the Mtc new buildings.

Speaker Change: With the recent $40 million bond tap and the $300 million refinancing proceeds the cash balance will be substantially stronger this second quarter.

Speaker Change: I'd like to add that the $300 million refinancing was signed as planned in the middle of the most volatile trade environment that we've seen in decades.

Speaker Change: And this is at the lowest margins ever for navigator and also I think showing the rock solid support and trust that we have from our banking partners.

Mads Peter Zacho: And this is at the lowest margins ever for Navigator and also, I think, showing the rock solid support and trust that we have from our banking partners. The return of capital continued in Q1 with both the $0.05 fixed dividend and a share buyback up to, in combination, 25% of net income.

Speaker Change: The return of capital continued in Q1 with both the <unk> fixed dividend and share buyback up to in combination 25% of net income.

Mads Peter Zacho: We're also pleased to announce another share repurchase authorization in the amount of an additional $50 million enhancing shareholder returns, earnings per share, and return on equity. Commercially, we pushed TCE rates back up higher and secured average Q1 TCE rates of $30,475. This is 8% higher than both previous quarter and same period last year. We achieved utilization above 92% in line with our guidance and higher than both Q4-24 and higher than the same period last year. We are again quite pleased with our ability to maintain robust TCE rates and utilization in a market that was hit by softer ethylene transport demand.

Speaker Change: We also pleased to announce another share repurchase authorization in the amount of an additional $50 million.

Speaker Change: <unk> shareholder returns earnings per share and return on equity.

Speaker Change: Commercially we pushed TCE rates back up higher and secured average Q1 TCE rates of $30475.

Speaker Change: This is 8% higher than both the previous quarter and same period last year.

Speaker Change: We achieved utilization above 92% in line with our guidance and higher than both Q4 of 24 and higher than the same period last year.

Speaker Change: We're again quite pleased with our ability to maintain robust TCE rates and utilization in a market that was hit by softer ethylene transport demand.

Mads Peter Zacho: To illustrate the softness, throughput at our joint venture ethylene export terminal was limited to 86,000 tons for the quarter, and this is, of course, much lower than the already soft fourth quarter and much below capacity. This was caused by continued effects from the U.S. cracker turnaround, leading to reduced domestic supply, leading to higher domestic prices, and as consequence, a narrow arbitrage. We expanded our fleet by acquiring three second-hand ethylene-capable vessels at attractive prices. All three have now been taken over and deployed as planned.

Speaker Change: To illustrate the softness throughput at our joint venture ethylene export terminal with limited to 86000.

Speaker Change: For the quarter and this is of course, much lower than the already soft fourth quarter and much below capacity.

Speaker Change: This was caused by continued effects from the U S cracker turnarounds, leading to reduced domestic supply leading to higher domestic prices and as consequence, a narrow arbitrage.

Speaker Change: We expanded our fleet by acquiring three secondhand ethylene capable vessels at attractive prices.

Speaker Change: All three have now been taken over and deployed as planned.

Mads Peter Zacho: We also sold Navigator Venus, one of the original Navigator vessels, which was about to reach 25 years of age. The sale secured $17.5 million of cash and a book gain of almost $13 million.

Speaker Change: We also sold navigator Venus one of the original navigator vessels, which was about to reach 25 years of age.

Speaker Change: The same secured $17 $5 million of cash and a book gain of almost $13 million.

Mads Peter Zacho: Gradual fleet renewal remains a priority, and we are likely to sell more of our older tonnage. The four last months have been challenging, strategically to say the least. It now seems that uncertainty is receding somewhat. We believe that the port fees, as announced by the U.S. trade representative, will not affect Navigator gas negatively due to our vessel size and due to us being a service provider to U.S. energy exports. It now also seems that tariffs on Chinese import from the U.S. may be limited to 10 percent.

Speaker Change: Rachel fleet renewal remains a priority and we're likely to sell more of our older tonnage.

Speaker Change: The full last months have been challenging strategically to say the least.

Speaker Change: It now seems that uncertainties, receiving somewhat we believe that the port fees as announced by the U S. Trade representative will not affect navigator gas negatively due to our vessel size and due to us being a service provider to U S. LNG exports.

Speaker Change: We now also seems that tariffs on Chinese imports from the U S may be limited to 10%.

Mads Peter Zacho: I guess in this context, it should be mentioned that over the past five years, China has received less than 10% of ethylene shipped from Morgan's Point. But anyway, much can still change with our diversified customer base, our trading capability, and strong balance sheet, I believe we remain resilient even if geopolitics take an unexpected turn.

Speaker Change: I guess in this context, it should be mentioned that over the past five years, China has received less than 10% of ethylene shipped from Morgans point.

Speaker Change: But anyway, much can still change with our diversified customer base, our trading capability and strong balance sheet I believe we remain resilient, even if geopolitics taken unexpected turn.

Speaker Change: Okay.

Mads Peter Zacho: April utilization was weaker than usual due to cargo cancellations and some customers pausing new vessel fixtures. The effect has now already been reversed, and the month of May showed gradual normalization in vessel utilization and likely a record high throughput at Moken's point. The vessel supply picture remains attractive, with a handy-sized order book of 9 percent. And in addition to this, now 22 percent of the global handy-sized vessels on the water, they're more than 20 years of age. So the supply picture continues to look good.

Speaker Change: April utilization was weaker than usual due to cargo cancellations and some customers pausing new vessel fixtures.

Speaker Change: The effect is now already been reversed in the month of May showed gradual normalization in vessel utilization and likely a record high throughput at Morgan's point.

Speaker Change: The vessel supply picture remains attractive with a handy size order book of 9% and in addition to this now 22% of the global handy size vessels on the water. They are more than 20 years of age. So the supply picture continues to look good.

Mads Peter Zacho: Now I'll pass it over to you, Gary, so you can tell a little bit more about the financial result. Go ahead.

Speaker Change: Now I'll pass it over to you Gary So you can tell a little bit more about the financial result go ahead. Please.

Gary: Thank you, Matt and welcome everybody as Matt alluded to we've been really busy in the last few months for all kinds of reasons.

Gary Chapman: Thank you, Mads.

Gary Chapman: Welcome, everybody. As Mads alluded to, we've been really busy in the last few months for all kinds of reasons. Our first quarter 2025 financials show yet another strong result maintaining our trend over many quarters now, showing the quality and diversity of our business, not least as a result of our flexible fleet, resilient charter rates and utilisation, and our operational efficiency and cost controls. This all comes through in the numbers on slide 6 where we see TCE jump above $30,000 per day. This leads on to a record high quarterly net operating revenue of $151 million, adjusted EBITDA of $72.8 million in the first quarter of 2025.

Gary: Our first quarter 2020 financials show yet another strong result, maintaining our trend over many quarters now showing the quality and diversity of our business not least as a result of our flexible fleet resilient charter rates and utilization.

Gary: Our operational efficiency and cost controls they.

Gary: This all comes through in the numbers on slide six where we see TCE jump above $30000 per day.

Gary: This leads onto a record high quarterly net operating revenue of $151 million and.

Gary: Adjusted EBITDA of $72 8 million in the first quarter of 2025 utilization was up 92, 4% up three 1% compared to first quarter 2024, and the average time charter equivalent rate of $30476 per day.

Gary Chapman: Utilization was up 92.4%, up 3.1% compared to first quarter 2024. And the average time charter equivalent rate of $30,476 per day in this first quarter is the highest rate achieved by Navigator in almost a decade. You'll see that voyage expenses have increased substantially, partially as a result of our increased fleet size, but primarily as these are pass-through costs to our customers, there being a corresponding increase in operating revenues. Vessel operating expenses were somewhat up compared to the first quarter of 2024 at $47 million, with the increase primarily driven by the timing of maintenance costs incurred during the three months ended March 31, 2025, compared to the same period in 2024.

Gary: Is in this first quarter has the highest rate achieved by navigator in almost a decade.

Gary: Youll see that voyage expenses have increased substantially partially as a result of our increased fleet size, but primarily its needs of pass through costs to our customers and being a corresponding increase in operating revenues.

Gary: Vessel operating expenses were somewhat compared to the first quarter of 2024 $47 million with the increase primarily driven by the timing of maintenance costs incurred during the three months ended March 31, 2025 compared to the same period in 2024.

Gary: Depreciation is slightly up compared to previous quarters due to our now increased fleet.

Gary Chapman: Depreciation is slightly up compared to previous quarters due to our now increased fleet and our general and admin costs of 8.1 million in the first quarter, whilst up year on year, is down compared to the fourth quarter of 2024. Our unrealized movements on non-designated derivative instruments resulted in a loss in this quarter of $2.3 million, this being related to movements in the fair value of our long-term interest rate swaps, which affects our net income but which has no impact on our cash or liquidity. We also report a lower net interest expense in the first quarter of 2025 compared to the first quarter of 2024, partly due to lower SOFR rates.

Gary: And our general and admin cost of $8 1 million in the first quarter, whilst up year on year is down compared to the fourth quarter of 2024.

Gary: Our unrealized movements on non designated derivative instruments resulted in a loss in this quarter of $2 $3 million.

Gary: This being related to movements in the fair value of our long term interest rate swaps, which affected our net income, but which has no impact on our cash or liquidity.

Gary: We also reported a lower net interest expense in the first quarter of 2025 compared to the first quarter of 2024, partly due to lower software rates.

Gary Chapman: Other income shown in this quarter of 4.8 million relates to a historic but successful legal settlement for damages caused to Navigator Ares in a collision with a container ship some 10 years ago. As we were uncertain about this claim, we did not include any provision in our accounts, and so this settlement has gone straight into our income statement for the quarter. This is a full settlement and we don't expect anything further in respect of this particular incident. Our income tax line reflects current tax and mainly deferred taxes which are significantly down compared to Q1 2024 as they're primarily derived from our investment and share of profits in our ethylene export terminal at Morgan's Point.

Gary: Other income shown in this quarter were $4 8 million relates to a historic books successful legal settlement for damages close to navigate to Ares and our collision with a container ship some 10 years ago.

Gary: As we were uncertain about this claim we did not include any provisioning our accounts and so the settlement is gone straight into our income statement for the quarter.

Gary: This is a full settlement and we don't expect anything further in this in respect to this particular incident.

Gary: Our income tax line reflects current tax mainly deferred taxes, which are significantly down compared to Q1 2024 is that primarily derived from our investment in share of profits in our ethylene export terminal at Morgan's point.

Gary Chapman: Randy will shortly explain more, but the ethylene terminal throughput volumes in Q1 2025 were low, as Mads mentioned, at 85,553 tonnes, resulting in us reporting a loss of $0.9 million. But as already mentioned, we're anticipating materially higher throughput back towards more normal trading levels in the second quarter and beyond this year. Then overall, for the first quarter of 2025, net income attributable to stockholders was $27 million, which is our highest quarterly net income in the last three years, and the second highest in the last nine years, with basic earnings per share of $0.39 and adjusted net income, which excludes unrealized gains, losses on derivative instruments, foreign exchange and other income of $25.5 million, or $0.37 per share.

Gary: Randy will shortly explain more breadth the ethylene terminal throughput volumes in Q1 2025 were low as Matt mentioned at 85000, and 553 tons, resulting in us reporting a loss of <unk> $9 million.

Gary: But as already mentioned, we are anticipating materially higher throughput back towards more normal trading levels in the second quarter and beyond this year.

Gary: And overall for the first quarter of 2025 net income attributable to stockholders was $27 million, which is our highest quarterly net income in the last three years and the second highest in the last nine years with basic earnings per share of 39 cents and.

Gary: And adjusted net income, which excludes unrealized gains and losses on derivative instruments foreign exchange and other income of $25 5 million or <unk> 37 per share.

Gary: Sure.

Gary Chapman: Our balance sheet shown on slide 7 continues to be strong with a cash, cash equivalents and restricted cash balance of $139 million at March 31st 2025. This is despite paying out $26.3 million for scheduled loan repayments, over $1.9 million in share buybacks in respect to the fourth quarter of 2024, $21 million as further progress payments towards our MGC Newbill vessels, and a further $4 million final payment for our Ethylene terminal expansion project. Our liquidity will be boosted further by a few things not included in these first quarter numbers such as the 40 million bond tap issue, which settled in early April, the sale of the Navigator Venus, which completed this week, and the debt refinancing that we have signed and that we're targeting to draw down by the end of May 2025.

Gary: Our balance sheet shown on slide seven continues to be strong with a cash cash equivalents and restricted cash balance of $139 million at March 31st 2025.

Gary: This is despite paying out $26 3 million for scheduled loan repayments over $1 9 million in share buybacks in respect to the fourth quarter of 2020 for $21 million as further progress payments towards our Mtc newbuild vessels.

Gary: A further 4 million final payment for our ethylene terminal expansion project.

Gary: Our liquidity will be further by a few things not included in these first quarter numbers, such as the 40 million bond tap issue, which settled in early April.

Gary: All of the navigator, Venus, which completed this week and the debt refinancing that we have signed and that we are targeting to draw down by the end of May 2025.

Gary: On slide eight I apologize for the slightly busy slide here, but we've been busy extending our maturities improving our liquidity and reducing our financing costs.

Gary Chapman: On slide eight, I apologize for the slightly busy slide here, but we've been busy extending our maturities, improving our liquidity and reducing our financing costs. We were able to enter into a new senior secured loan facility in February 2025 to partially finance the purchase of the three German built 17,000 cubic meter ethane ethylene capable liquefied gas carriers that we've since taken delivery of and of which vessels are already positively contributing to our bottom line. Following our successful issuance of 100 million of new senior unsecured bonds in October 2024, which at the time closed with the lowest spread for an unsecured dollar denominated shipping bond in the Nordic market since 2008, we took advantage of a favorable market.

Gary: We were able to enter into a new senior secured loan facility in February 2025 to partially finance the purchase of the three German built 17000 cubic meter ethane ethylene capable liquefied gas carriers that we've since taken delivery of.

Gary: And of which vessels are already positively contributing to our bottom line.

Gary: Following our successful issuance of $100 million of new senior unsecured bonds in October 2024, which at the time players with the lowest spread for an unsecured dollar denominated shipping bond in the Nordic market since 2008.

Gary: We took advantage of a favorable market.

Gary Chapman: And on March 28, 2025, we successfully issued a further 40 million tap of our bonds, which also priced at 7.25% We closed this just three business days before Mr. Trump's Liberation Day announcements. And although we saw some awkward movement in interest rates at the time, we believe the TAP pricing represented a credit spread that was around 15 basis points tighter than even our original 100 million issue, showing Navigator to be an attractive credit story as well as an attractive equity story. Then on May 2nd, 2025, we entered into a new Senior Secured Term Loan and Revolving Credit Facility for up to $300 million that will be used to repay the company's existing September 2020 and October 2023 Secured Outstanding Loan Facilities of $143 million and $15 million, respectively, and thereafter be available for general corporate purposes.

Gary: On March 28, 2025, we successfully issued a further $40 million of our bonds, which also priced at seven 5%.

Gary: This just three business days before Mr. Trump's Liberation day announcements and although we saw some upward movement in interest rates at the time, we believe the top pricing represented a credit spread that was around 15 basis points tighter than even our original 100 million ish year.

Gary: Showing navigate it to be an attractive credit story as well as an attractive equity story.

Gary: Then on May <unk> 2025, we entered into a new senior secured term loan and revolving credit facility for up to $300 million.

Gary: That will be used to repay the company's existing September 2020 in October 2023 secured outstanding loan facilities of $143 million and $15 million respectively.

Gary: And thereafter be available for general corporate purposes.

Gary Chapman: The facility has a tenure of six years, maturing in 2031. Announced outstanding will bear interest on a quarterly basis at SOFR plus 170 basis points, and the facility is secured by, or to be secured by, eight of the company's vessels. We now have no debt maturities due in the next 12 months.

Gary: The facility has a tenure of six years maturing in 2031 amounts outstanding will bear interest on a quarterly basis itself plus 170 basis points.

Gary: And the facility is secured by well to be secured by eight of the company's vessels.

Gary: We now have no debt maturities due in the next 12 months.

Gary Chapman: I would just like to take this opportunity to say thank you to the Club of Lenders here for their faith in Navigator and for working with us on this given the macro environment we have seen just recently. We think our business model is robust and it's good to see others thinking the same also and taking a longer term view as we do. On the right side of this slide is a summary of our main debt movements in the last four months, and we also show towards the bottom a proforma loan-to-value calculation, which we think is important to demonstrate that we're operating conservatively while still trying to be efficient with our balance sheet and looking for opportunities to reduce our cost of finance.

Gary: I would just like to take this opportunity to say, thank you to the club of lenders here for their faith and navigate through them for working with US on this given the macro environment. We have seen just recently.

Gary: We think our business model is robust and it's good to see others thinking the same also in taking a longer term view of Sweden.

Gary: On the right side of this slide is a summary of our main debt movements in the last 12 months and we also show towards the bottom of pro forma loan to value calculation, which we think is important to demonstrate that we're operating conservatively, while still trying to be efficient with our balance sheet and looking for opportunities to reduce our cost of finance.

Gary Chapman: On slide 9, our leverage against earnings remains in a strong position, with net debt to adjusted EBITDA at 2.6 times for the last 12 months to March 31st, 2025, and our net debt to capitalisation was 38% at the end of this first quarter of 2025. As we've shown before, we're continuing to make substantial debt repayments with around $124 million of average annual scheduled debt amortisation payments expected across the coming three years, 2025 to 2027. And again, the last bullet, we've finished the quarter with a healthy cash balance, despite the many calls on our funds, where we're actively pursuing a number of important work streams. On slide 10, this is one of our most important slides as it shows our estimated all-in cash break-even for 2025, which at $20,600 per day is significantly below our average TCE revenue for this first quarter of 2025 of $30,476 per day, and is materially unchanged from the estimate we provided on our last earnings call back in March.

Gary: On slide nine our leverage against earnings remains in a strong position with net debt to adjusted EBITDA to six times for the last 12 months to March 31 2025.

And our net debt to capitalization was 38% at the end of this first quarter of 2025.

Gary: As we shared before we're continuing to make substantial debt repayments with around $124 million of average annual scheduled debt amortization payments expected across the coming three years 2025 to 2027.

Gary: And again the last bullet, we finished the quarter with a healthy cash balance despite the many calls and our funds where we are actively pursuing a number of important work streams.

Gary: On Slide 10. This is one of our most important slides as it shows our estimated all in cash breakeven for 2025, which had $20600 per day significantly.

Gary: Significantly below our average TCE revenue for this first quarter of 2025 or $30476 per day.

Gary: It's materially unchanged from the estimate we provided on our last earnings call back in March.

Gary Chapman: The estimated cash breakeven figure is an all-in figure and it includes our forecast scheduled debt repayments and our dry docking costs. On the right is our updated OPEX guidance for 2025 across our differing vessel segments, ranging from 8,050 per day for our smaller vessels to 11,100 per day for our larger, more complex ethylene vessels. This guidance is unchanged from our last quarterly call in March. And following below is guidance for this year and for the first quarter of 2025 across Vessel OPEX, general and admin cost depreciation and cash interest expenses in dollar terms. The four-year guidance for vessel OPEX for 2025 towards the bottom is now slightly higher in total than the previous guidance given in March as we now have a net two extra vessels across the remainder of the year.

Gary: The estimated cash breakeven figure is an all in figure and it includes a forecast scheduled debt repayments and drydocking costs.

Gary: On the right is our updated opex guidance for 2025 across our different vessel segments, ranging from 8050 per day for a smaller vessels to 11100 per day for a larger more complex ethylene vessels.

Gary: This guidance is unchanged from our last quarterly call in March.

Gary: And following the lowest guidance for this year and for the first quarter of 2025 across vessel Opex General and admin cost depreciation and cash interest expenses in dollar terms.

Gary: The full year guidance for vessel Opex for 2025 towards the bottom is now slightly higher in total than the previous guidance given in March as we now have a net two extra vessels across the remainder of the year.

Gary: Slide 11 outlines our historic quarterly adjusted EBITDA, adding this first quarter solid figure demonstrating yet another very positive and consistent results are seen for many quarters now and this is despite a slightly prolonged and the ethylene arbitrage rejoicing will cover shortly and which has impacted the results from our terminal this quarter.

Gary Chapman: Slide 11 outlines our historic quarterly adjusted EBITDA, adding this first quarter's solid figure and demonstrating yet another very positive and consistent result, as seen for many quarters now. And this is despite a slightly prolonged dip in the ethylene arbitrage, which Oeyvind will cover shortly, and which has impacted the results from our terminal this quarter. On the right side we show our historic adjusted EBITDA for 2024, our last 12 months adjusted EBITDA and an annualised adjusted EBITDA based on the first quarter's results. In addition, the EBITDA bars then to the right provide some sensitivity and illustrate an increase in adjusted EBITDA of approximately $19 million for each $1,000 incremental increase in average time charter equivalent rates per day.

Gary: On the right side, we show our historic adjusted EBITDA for 2024 in the last 12 months adjusted EBITDA and an annualized adjusted EBITDA based on the first quarter's results.

Gary: In addition to EBITDA and to the right provide some sensitivity and illustrates an increase in adjusted EBITDA of approximately $19 million for each $1000 incremental increase in average time charter equivalent rates per day.

Gary: Then in terms of our vessels drydock schedule projected cost and time taken we've made this slide to the appendix.

Gary Chapman: Then in terms of our vessel's dry dock schedule, projected costs and time taken, we've moved this slide to the appendix. Although this is very important information, the slide itself is quite heavy and you don't need me to read it out to you. The only point I want to make is that we're continuing to invest in our energy and fuel saving initiatives, which we believe are great investments to make for both financial and environmental reasons, typically having very short payback periods.

Gary: This is very important information the slide itself is quite heavy and you don't need me to reach out to you.

Gary: The only point I want to make is that we're continuing to invest in our energy and fuel saving initiatives, which we believe are great investments to make for both financial and environmental reasons, typically having very short payback periods.

Oeyvind Lindeman: So with that, and having been able to report some strong results and activities this quarter, I will hand you over to Oeyvind, who can guide us through our commercial environment amidst some of the macro uncertainties we have all been seeing. Thank you, Oeyvind. Thank you, Gary. And good morning. Good afternoon, everyone. I'll spend the next few minutes walking you through the freight market. Our Utilization Trends and the Recent Impact of TARIF. I'll also touch on the latest ethylene arbitrage and wrap up with a quick view on vessel supply. So let's start with the market. If you turn to page 13 You'll see the latest time charter assessments across the gas carrier segment.

Gary: So with that and having to being able to report some strong results and activities. This quarter I will hand, you over to <unk> to guide us through commercial environment amidst some of the macro uncertainties, we have all been seeing thank.

Speaker Change: Thank you Lloyd.

Speaker Change: Thank you Gary.

Speaker Change: Good morning, good afternoon, everyone.

Speaker Change: I'll spend the next few minutes walking you through the freight markets.

Speaker Change: Utilization trends and the recent impact of tariffs.

Speaker Change: I'll touch on the latest ethylene arbitrage and wrap up with a quick view on vessel supply.

Speaker Change: So let's start with the market.

Speaker Change: If you turn to page 13.

Speaker Change: Youll see the latest time charter assessments across the gas carrier segments.

Oeyvind Lindeman: The story here is stability rates for our core segment. ethylene and semi-refrigerant. which cover 88% of our. That's reassuring, especially given the recent backdrop of tariffs, trade uncertainties. and most people pushing the polls. Now on to utilization. On page 14, it shows the makeup of our earnings days across petrochemicals, LPG and ammonia, as well as fleet utilization. We came in strong in the first quarter with utilization of 92.4%. But things took a sharp turn in April. On 10th of April, China imposed tariffs up to 125% of a range of U.S. energy products, including ethane, ethylene, and ethylene.

Speaker Change: The story here is stability rates for our core segments, ethylene and semi refrigerated vessels, which cover 88% of our fleet.

Speaker Change: Sure.

Speaker Change: That's reassuring, especially given the recent backdrop of tariffs trade uncertainties.

Speaker Change: And most people pushing the pause button.

Speaker Change: That wasn't the utilization on page 14. It shows to makeup of our earnings days across the petrochemicals LPG and ammonia as well as fleet utilization.

Speaker Change: We came in strong in the first quarter with utilization of 92, 4%, but things took a sharp turn in April.

Speaker Change: I'll 10th of April China imposed.

Speaker Change: Tariffs up to 125%.

Speaker Change: Range of U S energy products, including ethane ethylene and LPG.

Oeyvind Lindeman: That made the trade between the two countries completely uneconomical. We add three handy-sized ethane cargoes to China, Canada, and the UK. and zero new inquiries follow during this period. And we weren't alone. The industry saw widespread disruptions and cancellations. But right after Easter, China quietly dropped the ethane tariff back down to $1.5 billion. Immediately, activity came back. We concluded two ethane fixtures overnight. And that's how quickly tariffs can swing the market. With tariffs down and sentiment improving, utilization is now recovering. And we expect a more normalized trading pattern from May Our forward cover helps smooth things out.

Speaker Change: That made the trade between the two countries completely uneconomical.

Speaker Change: We had three handy sized ethane cargoes to China cancel and zero new enquiries follow during this time.

Speaker Change: Have you weren't alone the industry saw widespread disruptions and cancellations.

Speaker Change: But right after Easter China quietly dropped the ethane tariff back down to 1%.

Speaker Change: Immediately activity came back we concluded two ethane fixtures overnight.

Speaker Change: And that's how quick quickly Perry if can swing the markets.

Speaker Change: With terrorist out and sentiment improving utilization is now recovering and we expect a more normalized trading pattern from may onwards.

Speaker Change: Our forward cover helps smooth things out.

Oeyvind Lindeman: As of today, 41% of our ship days over the next 12 months are fixed. at an average rate of $31,040 per day.

Speaker Change: As of today, 41% of our ship days over the next 12 months are fixed.

Speaker Change: At an average rate of $31048 per day.

Speaker Change: Now, let's take a closer look at the tariff situation.

Oeyvind Lindeman: Now let's take a closer look at the tariff situation. On the next page. We added three charts showing the direct impact of the tariff spike. first on LPG. This isn't a core trade for us, but the ripple effect has some impact on the overall freight markets and sent... The 125% tariff made US to China LPG an economy. Cargoes Diverted in South Korea, Japan, Indonesia, India, India, while China turned to lease the nearby suppliers to backfill their demand. These shifts increase inefficiencies, which can actually benefit ships. In the middle chart, you'll see handy size ethane liftings dropped in April.

Speaker Change: On the next page.

Speaker Change: We added three charts, showing the direct impact of the carrier Spike first on LPG.

Speaker Change: This isn't a core trade for off but the ripple effect of some impact on the overall freight markets and sentiment.

Speaker Change: 25% tariff made U S to China LPG on economical.

Speaker Change: Cargoes diverted instantly to South Korea, Japan, Indonesia, and India, while China turned to leased and thereby suppliers to backfill their demand.

Speaker Change: These shifts increase inefficiencies, which can actually benefit shipping.

Speaker Change: In the Middle chart, Youll see handy sized ethane lift things dropped in April.

Speaker Change: Not surprising as most of these trades.

Oeyvind Lindeman: Not surprising, as most of these trades are on a spot basis. All spot activity was put on. But with the tariff now back to 1%. If you'll expect my volumes to bounce. On the right, it shows Ethylene. China has never been the main buyer of U.S. Ethylene. They have on average imported about 10% of U.S. ethylene exports during the last five Last year in 2024, just 85,000 tons went to China. and have declined since 2023 and yet. Our ethylene spray tray. are up. It illustrates that China is not an essential driver for U.S. air to lean in.

Speaker Change: <unk> on a spot basis, all spot activity was put on pulse.

Speaker Change: But with the tariff now back to 1%.

Speaker Change: We would expect may volumes to bounce back.

On the right.

Speaker Change: Italy, China has never been the main buyer of U S ethylene.

Speaker Change: They have an average imported about 10% of U S. Ethylene exports during the first five the last five years.

Speaker Change: Last year in 2024, just 85000 tonnes went to China and have declined since the 2020 and yet.

Speaker Change: Our ethylene freight rates are.

Speaker Change: Alright.

Speaker Change: It illustrates that China is not an essential driver for U S ethylene exports or our ethylene freight markets.

Oeyvind Lindeman: or our ethylene freight market. In any event... And similar to ETH and NLPG, the 125% tariff shut the trade during April. Now with an 11% tariff and a healthy arbitrage, we could see China come back into play. Speaking of arbitrage, the Italian arbitrage is wide open. On page 16. If you take a look at the gray line on the left-hand chart. U.S. settling prices have come down to around $400. significantly down. And that's great news. Great for trade for our terminal and for The mid-graph shows where freight sits in the Aethylene Valley chain. If you look in the light blue box, $300 per ton to Europe or Asia on paper, it works.

Speaker Change: In any event.

Speaker Change: And similar to ethane and LPG, the 125% tariff shut the trade during April for ethylene now with an 11% tariff.

Speaker Change: The healthy arbitrage, we could see China come back into play for this commodity.

Speaker Change: Speaking of our arbitrage.

Speaker Change: Italy and arbitrage is wide open on page 16.

Speaker Change: If you take a look at the grey line on the left.

Speaker Change: The left hand chart.

Speaker Change: U S ethylene prices have come down to around $400 per ton.

Speaker Change: Significantly down and Thats, Great news right for trade for our terminal.

Speaker Change: And for freight.

Speaker Change: The mid graph shows where freight sits in the ethylene value chain.

Speaker Change: And if you're looking at in the light Blue box $300 per ton to Europe or Asia on paper.

Speaker Change: It works for us.

Oeyvind Lindeman: Terminal volumes in April were up. And as Mads mentioned, May is shaping up even better. Our terminal is set to use its flex capacity to meet that.

Speaker Change: Terminal volumes in April were up.

Mark: And as Mark mentioned May is shaping up even better.

Mark: Our terminal is set to use its flex capacity to meet that demand.

Mark: Okay.

Mark: While supply on page 17.

Oeyvind Lindeman: On supply, on page 17. It shows the fleet picture. Supply in our hand-design segment remains very manageable, single-digit growth from the yard. A good chunk of the fleet is over 20 years of age. The larger segments are seeing more new builds, but we're in a comfortable position in the segment.

Mark: It shows the fleet picture supply in our handset segment remains very manageable single digit growth from the yards a good chunk of the fleet is over 20 years of age.

Mark: The largest segments are seeing more new builds but we are in a comfortable position.

Mark: The segments, we operate.

Oeyvind Lindeman: So to wrap it up, April was turbulent. But the fundamentals are back for Etain and Etelie, utilization is rising, rates are holding, and volumes are flowing through the terminal. So we're entering May with solid momentum and a bit of spring optimism.

Mark: So to wrap it up April with tablets.

Mark: But the fundamentals are back for ethane and ethylene.

Mark: Legislation is rising rates are holding.

Mark: Volumes are flowing through the terminal.

Mark: We're entering may with solid momentum and a bit of spring optimism.

Mark: With that I'll hand over to Randy for the latest corporate developments Randy.

Randy Givens: With that, I'll hand over to Randy for the latest corporate developments, Randy. Thank you, Oeyvind. So following up on several announcements we made in recent months, we want to provide some additional details and updates on our recent development.

Randy: Thank you Ivan so following up on several announcements we made in recent months, we want to provide some additional details and updates on our recent developments.

Randy Givens: starting on slide 19. We're pleased to announce our return of capital for the first quarter of 2025. But before we get to that, I wanna highlight that during the first quarter, we repurchased more than 136,000 common shares in the open market, totaling $1.9 million for an average price of $14.17 per share. Now looking ahead, in line with our return of capital policy and the illustrative table below, we're returning 25% of net income or a total of $6.8 million to shareholders during this second quarter. The board has declared a cash dividend of 5 cents per share payable on June 17th to all shareholders of record as of May 29th, equating to a quarterly cash dividend payment of $3.5 million.

Mark: Starting on slide 19, we're.

Mark: We're pleased to announce our return of capital for the first quarter of 2025, but before we get to that I want to highlight that during the first quarter, we repurchased more than 136000 common shares.

Mark: In the open market totaling $1 $9 million for an average price of $14 17 per share now looking ahead in line with our return of capital policy and illustrates the table below where we're trading 25% of net income or total of $6 $8 million to shareholders. During the second quarter. The board has declared.

Third a cash dividend of <unk> <unk> per share payable on June 17th to all shareholders of record as of May 29th equating to a quarterly cash dividend payment of $3 5 million. Additionally.

Randy Givens: Additionally, with NBGS shares trading well below estimated NAV of around $27 a share, we will use the variable portion of the return of capital policy for share buybacks. As such, we expect to repurchase $3.3 million of common shares between now and quarter end, such that the dividend and share repurchases together equal 25% of net income. Again, $6.8 million in total this year. As seen over the past few years, returning capital shareholders will remain a primary focus for us going forward, and that's not all for capital returns.

Mark: <unk> with MTGE shares trading well below estimated NAV of around $27 a share we will use the variable portion of the return of capital policy for share buybacks as such we expect to repurchase three 3 million.

Mark: Common shares between now and quarter end, such that the dividend and share purchases repurchases together equaled 25% of net income again $6 8 million in total this quarter.

Mark: As seen over the past few years, returning capital to shareholders will remain a primary focus for us going forward and Thats that offer catheter returns just wait there's more now looking at slide 20.

Randy Givens: Just wait, there's more.

Randy Givens: Now looking at slide 20, included in our earnings release yesterday afternoon, we announced the board's authorization for a new share repurchase program of up to $50 million of NVGS common stock, most likely to be implemented via open market purchase. To be clear, this new share repurchase authorization is in addition to our quarterly share repurchases connected to our return of capital policy. So the $3.3 million mentioned earlier will not eat into this new $50 million authorization. Now, there's several compelling reasons for us to repurchase shares. Buying back at a discount boosts our NAV for share. It reduces the share count and increases earnings per share, supports the share price.

Mark: Included in our earnings release yesterday afternoon, we announced the board's authorization for a new share repurchase program of up to $50 million of <unk> common stock most likely to be implemented via open market purchases to be clear. This new share repurchase authorization is in addition to our quarterly share repo.

Mark: He is connected to a return of capital policy. So the $3 $3 million mentioned earlier will not eat into this new $50 million authorization.

Mark: Now there are several compelling reasons for us to repurchase shares buying back a discount boost our NAV per share it reduces the share count and increases earnings per share supports the share price and as we explained through our five pillars of capital deployment, a diversifies our uses of cash.

Randy Givens: And as we explained through our five pillars of capital deployment, it diversifies our uses of cash. In terms of funding the buybacks, we've recently raised almost $200 million of excess liquidity through the unsecured bond tap, the most recent credit facility refinancing, and the sale of the Navigator Venus, which I'll touch on in a second. As Gary displayed on slide eight, a large portion of the excess cash will be used to repay more expensive debt. Some will be used for growth projects, some will be kept on the balance sheet, and some will be used for this share repurchase program.

Mark: In terms of funding the buybacks, we recently raised almost $200 million of excess liquidity to the unsecured bond tap. The most recent credit facility refinancing and the sale of the navigator <unk>, which I'll touch on in a second.

Mark: As Gary displayed on slide eight a large portion of the excess cash will be used to repay more expensive debt. Some will be used for growth projects. Some will be kept on the balance sheet and some will be used for this share repurchase program.

Randy Givens: And as you can see on the bottom left of the slide, the extremely intelligent equity analysts who cover us agree that our share price is very attractive with lots of upside from here. So all that being said, there are many factors that come into play regarding the timing and scale of incremental repurchases, but we do plan on implementing this program in the near future, especially at the current very cheap share price.

Mark: And as you can see on the bottom left of the slide the extremely intelligent equity analysts who cover US agreed that our share price is very attractive with lots of upside from here.

Mark: So all of that.

Mark: Being said there are many factors that come into play regarding the timing and scale of incremental repurchases, but we do plan on infotainment. This program in the near future, especially at the current very keen share price.

Randy Givens: Now turning to our ethylene export terminal on slide 21, as we mentioned on a previous earnings call, U.S. Gulf ethylene cracker turnarounds persisted throughout the first quarter, resulting in reduced U.S. ethylene supply and high U.S. ethylene price. As a result, throughput volumes during the first quarter decreased to 85,000 tons. However, as the US crackers ramped production in April, the domestic ethylene price fell from $0.30 a pound, or $660 per metric ton, to $0.20 a pound, or $440 per metric ton, as you can see on the bottom right chart, substantially widening the arbitrage to both Europe and Asia.

Mark: Now turning to our ethylene export terminal on slide 21 <unk>.

Mark: As we mentioned on our previous earnings call U S golf ethylene cracker turnarounds persisted throughout the first quarter, resulting in reduced U S ethylene supply and high U S. Ethylene prices as a result throughput volumes during the first quarter decreased to 85000 tests. However, as the U S crackers ramped production in April the domestic ethylene price fell from <unk>.

Mark: 30 cents per pound or $660 per metric ton.

Mark: To <unk> 20, a pound or $440 per metric ton as you can see on the bottom right chart substantially widening the arbitrage to both Europe and Asia. So this led to throughput in April increasing to a six month high of 66000 times and.

Randy Givens: So this led to throughput in April increasing to a six-month high of 66,000 tons. And with the domestic ethylene price now back down to $400 a ton, throughput in May will exceed the volumes in April, and the flex train will be utilized soon. So looking at the forward curve for ethylene prices, we expect the terminal throughput to remain fairly strong and our net income from the joint venture to return to historical profitability levels this quarter.

Mark: And with the domestic ethylene price now back down to $400 per time, do putting mei will exceed the volumes in April and the flex Jane will be utilizing.

Mark: So looking at the forward curve for ethylene prices, we expect the terminal throughput to remain fairly strong and our net income from the joint venture to return to historical profitability levels. This quarter.

Randy Givens: As a reminder, we completed the final FlexTrain CapEx payment of $4 million in January for a total contribution of $128 million, all paid from cash on hand. As for the contracting of expansion volumes, interest in the off-take contract has increased in recent weeks, and we continue to expect that additional off-take capacity will be contracted in the coming months as new customers continue to request terms. Now, finishing on slide 22, our fleet renewal program continues to be implemented as we sell our oldest vessels and replace them with modern secondhand tonnage.

Mark: As a reminder, we completed the final Flextreme capex payment of $4 million in January for a total contribution of $128 million all paid from cash on hand.

Mark: As for the contracting of the expansion volumes.

Mark: Interest in the offtake contracts has increased in recent weeks and we continue to expect that additional offtake capacity will be contracted in the coming months as new customers continue to request chairs.

Mark: Now, finishing on slide 22, our.

Mark: Our fleet renewal program continues to be infinite as we sell our oldest vessels and replace them with modern second hand tonnage. So starting with the Divesture two days ago, we completed the sale of our oldest vessel navigator Venus a 2000 built 22000 cubic meter gas carrier to a third party for $17 $5 million, resulting in a 12.

Randy Givens: So starting with the divestiture, two days ago, we completed the sale of our oldest vessel, Navigator Venus, a 2000 built 22,000 cubic meter gas carrier to a third party for $17.5 million. resulting in a $12.8 million profit to be included in our second quarter net income. That leaves us with only two of our original vessels built in 2000, and we continue to engage buyers who are showing interest in acquiring those older vessels.

Mark: $8 million profit to be included in our second quarter net income that leaves us with only two of our original vessels built in 2000, and we continue to engage buyers who are showing interest in acquiring those older vessels.

Randy Givens: On the replacement side, during the first quarter, we took delivery of all three secondhand, handy-sized ethylene carriers that we agreed to acquire in December of 2024, complementing the increased export capacity from our ethylene export terminal joint venture. Now, the vast majority of that $83.9 million total purchase price was financed through new debt, totaling $74.6 million. So the acquisition only required less than $10 million of our cash. As a result of our recent sale and purchase activity, our current fleet is now 11.9 years of age, with an average size of 20,816 cubic meters. So not too young, not too old, not too big, not too small.

Mark: On the replacement side during the first quarter, we took delivery of all three secondhand handy sized ethylene carriers that we agreed to acquire in December of 2020 for complementing the increased export capacity from our ethylene export terminal joint venture.

Mark: Now the vast majority of that $83 $9 million total purchase price was financed through new debt totaling $74 6 million. So the acquisition only required less than $10 million of our cash.

Mark: As a result of our recent sale and purchase activity. Our current fleet is now 11.9 years of age with an average size of 20816 cubic meters. So not too young not too old now to be agnostic small basically the goldilocks fleet.

Randy Givens: Basically, the Goldilocks.

Mads Peter Zacho: With that, I'll now turn it back over to Mads for closing remarks. Already. Thanks a lot, Randy.

Mark: With that I'll now turn it back over to Mark for closing remarks.

Mark: Sorry.

Mark: Thanks, a lot Randy.

Mads Peter Zacho: Yes, in summary, I guess that we can conclude here that Navigator Gas got off to a robust start to 2025. Probably should add here that the past month has added quite a few sleepless nights and probably also some gray hairs. But I think in Q1, we delivered another solid quarter with strong operating cash flows. And we have in front of us a Q2 that maybe started a little bit shaky, but has now returned to almost normal, dare I say so. We've built resilience by refinancing well ahead of maturity at lower margins and better terms. And this is why we, despite less overall visibility than usual, can continue to pay quarterly cash dividends and add another substantial share buyback program at $50 million.

Mark: In summary, I guess that we can conclude here that navigator gas got off to a robust thought to 2025.

Mark: Probably should add here that the past month has added quite a few sleepless nights and probably also some gray hair, but I think in Q1, we delivered another solid quarter with strong operating cash flows and.

Mark: And we have in front of US a Q2 that maybe started a little bit shaky, but has now returned to almost normal dare I say so.

Mark: We've built resilience by refinancing well ahead of maturity at lower margins and better terms and this is why we despite less overall visibility than usual and continue to pay quarterly cash dividends and add another substantial share buyback program at $50 million.

Mads Peter Zacho: This buyback program will significantly enhance the shareholder returns, our EPS, and our return on equity. We remain confident about the demand fundamentals of the business. Continued growth in U.S. natural gas liquids production and the significant build-out in U.S. export infrastructure over the next four years will support exports and thereby transport demand. Near term, we expect the terminal throughput for Q2 to be materially higher than Q1 and with a widening ethylene arbitrage. The vessel supply picture remains attractive with a small, handy-sized order book and an aging global fleet.

Mark: This buyback program will significantly enhance the shareholder returns, our EPS and our return on equity.

Mark: We remain confident about the demand fundamentals of the business.

Mark: Continued growth in U S natural gas liquids production and the significant build out in U S export infrastructure over the next four years will support exports and thereby transport demand.

Mark: Near term, we expect the terminal throughput for Q2 to be materially higher than Q1, and with a widening ethylene arbitrage.

Mark: The vessel supply picture remains attractive with a small handy size order book and an aging global fleet. So thanks, a lot for listening and now I'll hand, it back to you Randy and we'll go to Q&A.

Randy Givens: So thanks a lot for listening, and now I'll hand it back to you, Randy, and we'll go to Q&A. Thank you, Mads.

Randy: Thank you Matt operator, we'll now open the lines for some Q&A so to raise their hand press star nine and then you'll have the unmeet yourself by pressing star six.

Operator: Operator, we'll now open the lines for some Q&A. So to raise your hand, press star nine, and then you'll have to unmute yourself by pressing star six. Or if using Zoom, just use the raise hand function.

Randy: Or using zoom just use the raise hand function. So first question your line should be open.

Unknown Executive: So first question, your line should be open. Hi, Randy. Thank you. Thanks for the update, guys. A couple questions from my end. I think Oeyvind, you spent a good amount of time talking about the market in April and how things have improved thus far in May, as the tariffs have gotten, you know, removed or lowered. Just wanted to ask, when the China-US, say, trade got to a bit of a standstill, as you highlighted, what ended up happening elsewhere? Did you see any cargo opportunities to send to other areas in the Far East? Or was it just a complete, you know, lull in the market?

Speaker Change: Hi, Randy Thank you.

Randy: Thanks for the update guys a couple questions.

Randy: <unk> from my end I think ointment you spent a good amount of time talking about the market in April and how things have improved thus far in may as the terrorists have gotten removed or lowered just wanted to ask when when the China U S trade got a bit of a standstill as you highlighted what ended up happening.

Randy: Elsewhere did you see any cargo opportunities to scent.

Randy: The other areas in the far east or was it just a complete.

Randy: Lull in the market.

Randy: No I mean.

Oeyvind Lindeman: No, I'm in. Lpg is quite It's a deep market. It's a big market.

Randy: LPG is quiet.

Randy: He has a deep market.

Randy: It's a big market.

Oeyvind Lindeman: And it's quite fungible, meaning that Unknown Executive, Climent Molins, Gary Chapman, Kristoffer Skeie, Navigator Hldgs, Unknown they buy from other sources. So we actually did some. that we haven't done before. LPG on a hand is sized from Middle East to China. So usually those ships are too small for such a long deep sea voyage on LPG, it's more for the VLGCs, but they'd have And that is a sort of blip, a positive blip if you. If you see it that way, bye. LPG generally caused inefficiency so ships were waiting, fully laden, deviating, different trades going to new places.

Randy: And it's quite fungible, meaning.

Randy: <unk>.

Randy: You can find other outlets so positively for navigator and that situation. So no LPG from U S to China. So what does China do they buy from other sources. So we actually did some.

Randy: The trades that we haven't done before L. P. G on the handy sized from middle East to China.

Randy: So usually those ships are too small for such a long deep sea voyage on LPG is more for <unk>, but did happen.

That is a sort of a positive blip if you.

Randy: If you see it that way.

Randy: Right.

Randy: LPG generally caused inefficiencies or ships were waiting for the laden deviating.

Randy: Different trades going to new places and generally that was a positive for the market generally for.

Oeyvind Lindeman: And generally, that was. market. FN Stop. Until China announced that no, it's exempt from import duties, i.e. only 1%, going from 126 to 1%, so that's clearly helpful. So those two things.

Randy: For LPG ethane stopped.

Randy: Until China announced that no.

Randy: Exempt from import duties I, only 1% going from 120, 61%. So that's clearly helpful.

Randy: So those two things had an impact.

Speaker Change: Okay. Thank you and then just in terms of how we saw things in the first quarter. It seems that your realized rate stayed fairly strong even as you were highlighting the arbitrage to move cargo kind of favorite going to short haul routes to Europe instead of to the far east.

Oeyvind Lindeman: Okay, thank you. And then, just in terms of how we saw things in the first quarter, it seems that your realized rate stayed fairly strong, even as you were highlighting the arbitrage to move cargo kind of favored going the short haul route to Europe instead of to the Far East. Is that a bit Would you say that's a delayed reaction, maybe, that we will see some of that into the second quarter where we'll see a softer rate? Because, you know, obviously 30,000 is still quite strong in spite of that shorter health. I think when there was no...

Randy: Is that better.

Randy: Would you say that's a delayed reaction may be that we will see some of that into the second quarter.

Randy: Where we'll see the softer rate because obviously 30000 is still quite strong in spite of that shorter hours I think when there was no way.

Randy: Smaller volumes of ethylene going through to determine in the first quarter and rates great. Okay.

Oeyvind Lindeman: Smaller volumes of ethylene going through the terminal. and Rae J of I, and now you're facing a situation whereby there's more volumes, so... There's more supply, that's more volumes that needs to move on the same amount of ship. First quarter, most of it went transatlantic to Europe. So on Etna and Etelid, shorter voyages. But now we're seeing also voyages going to Indonesia and other places or longer. So yeah, we are. Okay.

Randy: Hi.

Randy: Now you're facing a situation whereby there's more volumes so.

Randy: You know that's a positive.

Randy: If you're thinking about the second quarter.

Randy: As for supply.

Randy: Volumes that needs to move on the same amount of ships.

Randy: First quarter most of it when trans Atlantic to Europe, So on ethane and ethylene shorter voyages, but now we're seeing also voyage, it's going to to Indonesia, and other places so longer so we're optimistic.

Randy: Yeah.

Speaker Change: Okay, and one final one and I'll turn it over.

Gary Chapman: And one final one, and I'll turn it over maybe to you, Gary. You've got the new credit facility in place now that refinances, you know, this year's maturity. You paid for the terminal expansion with your cash resources. And on the last call, you mentioned that you're aiming to put some debt in place on the terminal now that it's completed. You've got the small balance left on that original loan for the pre-expansion part of the terminal. What are you thinking right now in terms of, you know, putting some debt on the project now? Any sense of timing or amount?

Gary: Maybe to you Gary.

Gary: You've got the new credit facility in place now that refinances. This year's maturity you've paid for the terminal expansion with your cash resources and on the last call you mentioned that you're aiming to put some debt in place on the terminal now that it's completed.

Speaker Change: You've got the small balance left on that original loan for the pre expansion part of the terminal what are you thinking right now in terms of putting some debt on.

Gary: On the project now.

Gary: Any sense of timing or amount.

Gary Chapman: Yeah, I think what we can say is it's not imminent. I don't think it's top of our list. I think it's something that we've been looking at for a while. And I think there are various different things we can look at. Obviously, for Navigator, it's not ships. So it's something a little bit different for us to finance. And I think, you know, with the contractual situation from the flex train there, we've been waiting for that situation, which is coming along nicely. But because we've not been in a rush, I think we've been prioritizing our more expensive bank debt and our other facilities and getting that out of the way first.

Gary: Yes, I think what we can say it's not imminent.

Gary: On top of our list I think its something that.

Gary: We've been looking at for a while or nothing there are various different things, we can look out obviously for navigator.

Gary: No ships, so it's something a little bit different for us to finance and I think.

Gary: With the contractual situation from the.

Gary: Flex trained there we've been waiting for that situation, which is coming along nicely.

Gary: But because we've not been in a rush I think we've been prioritizing our more expensive debt in our other facilities and getting that out of the way first but it's certainly still on our list, but in terms of <unk>.

Unknown Executive: But it's certainly still on our list. But in terms of priority and timing, yeah, it's probably not right up at the top of the list. I think we've got other things that we can go for first. Okay. Thanks, Gary. Thanks, guys.

Gary: Priority and timing, yeah, it's probably not right up at the top of the list I think we've got other things.

Gary: We can go for first.

Speaker Change: Okay. Thanks, Gary Thanks, guys.

Unknown Executive: Thank you, Omar.

Gary: Okay. Thank you.

Gary: Alright next question your line should be open.

Charles Fratt: All right, next question, your line should be open. Hi, just starting off on the buyback program. How do you think about deploying the new buyback program? And is there a mechanism for how you determine the amount of buybacks in any given quarter? Yeah, thanks for that, Charles. So, in terms of scale, you know, looking back over the last couple of years, we bought back around $55 or so million each year. In 2022, we announced the program, the first $50 million share buyback program and implemented it pretty soon thereafter. So, certainly planning on putting this one to good use as well.

Hi.

Gary: Just starting off on the buyback program, how do you think about deploying the new buyback program and is there a mechanism for how you determine the amount of buybacks in any given quarter.

Speaker Change: Yeah. Thanks for that Charles So in terms of scale looking back over the last couple of years, we bought back around $55 $7 million each year in 2022, we announced the program the first $50 million share buyback program implemented.

Speaker Change: Pretty soon thereafter, so certainly planning on putting this one to good use as well in terms of the scale. They are certain parameters and volume limitations that you can buyback in any given day and kind of an open market share repurchase program. So obviously, you'll have to stay in line with those but that said you know again, we're going to do the $3 three.

Charles Fratt: In terms of the scale, there are certain parameters and value limitations that you can buy back on any given day and kind of open market share repurchase program. So, obviously, we'll have to stay in line with those. But that said, you know, again, we're going to do the $3.3 million for sure in terms of share buybacks based on the return of capital policy and the incremental one we plan on utilizing here in the near term as well.

Speaker Change: For sure in terms of share buybacks based on return of capital policy and the incremental and we plan on utilizing here in the near term as well. So a lot of variables will determine the exact timing and scale of that but it is something we plan on implementing.

Charles Fratt: So, a lot of variables will determine the exact timing and scale of that, but it is something we plan on implementing in the near term. Understood.

Speaker Change: In the near term.

Speaker Change: Got it understood and just second question has volatility that you've seen in the market recently changed how you're approaching the chartering strategy.

Charles Fratt: And just second question, has volatility that you've seen in the market recently changed how you're approaching the chartering strategy? Charles, we mentioned, we put in a note, which we haven't done before in terms of our percentage cover over the next 12 months and the average rate of that. That certainly helps. I think that 41% is probably a little bit low, so we're looking to nudge it up a few percentage. So it's something we look at, and of course you are influenced by what's happening around you, but on a long term, we generally are just shy of 50% on cover.

Speaker Change: Charles We mentioned, we put in a note, which we haven't done before in terms of farmer percentage cover over the next 12 months and the average rate of that that's certainly helped in April.

Speaker Change: I think.

Speaker Change: That 41% is probably a little bit low so we're looking to nudge it up a few percentage points. So it's something weird.

Speaker Change: Look at and of course, you are influenced by what's happening around you.

Speaker Change: But on the long term, we generally are just shy of 50%.

Speaker Change: Because we believe our petrochemicals generally spot driven so we believe in that market is coming back now and then of course, it's beneficial to have some.

Charles Fratt: Because epithelial chemicals are generally spot-driven, so... believe in that market is coming back now. And then of course, it's beneficial to have some. Bot Openship Understood. Thanks for the time. Thank you, Charles.

Speaker Change: Spot open ships.

Speaker Change: Understood. Thanks for the time.

Speaker Change: Thank you Charles.

lots: I believe that is it in terms of Q&A, So I'll turn back to lots for one final goodbye.

Mads Peter Zacho: I believe that is it in terms of Q&A, so I'll turn it back to Mads for one final goodbye. Good. Thanks for... staying with us, listening in to our Q1 results. I think you can see that this is better than expected Q1. It was a quite robust result that we demonstrated here with good cash returns and of course that cash return then is translated into returning cash to shareholders. So we are pleased to see that even in a time when things have been very dynamic around us that we can finance our vessels with strong support from our banks and we can also generate excess liquidity so we can launch another share buyback.

Speaker Change: Good thanks for them.

Speaker Change: Staying with us for listening into our Q1 results I think you can see that this is a better than expected Q1. It was a quite robust result that we.

Speaker Change: Demonstrated here with good cash returns and of course that cash return then has translated into returning cash to shareholders. So we are pleased to see that even in a time when things have been very dynamic around us that we can.

Speaker Change: Finance.

Speaker Change: All vessels with strong support from all banks and we can also generate excess liquidity. So we can.

Speaker Change: <unk> launched another share buyback and we've seen that as being a very good instrument in the past two to returning capital.

Mads Peter Zacho: We've seen that as being a very good instrument in the past to returning capital to shareholders and this is one that we'll keep prioritizing.

Speaker Change: Capital to shareholders and this is one that will keep prioritizing so.

Mads Peter Zacho: Stay tuned and thank you so much for listening in.

Speaker Change: Stay tuned and thank you so much for listening and wait one more second it looks like we have a late addition to the Q&A.

Speaker Change: Comment there is your line is open.

Speaker Change: Hi team. Thank you for taking my questions.

Oeyvind Lindeman: Hi Dean, thank you for taking my questions. I wanted to delve a bit further into the TCE increase, quarter over quarter. Was the bulk of the uplift attributable to solid performance on the spot market, or was it mostly due to vessels on time charters being rolled at higher rates?

Speaker Change: I wanted to delve a bit further into the D. C increase quarter over quarter was the bulk of the uplift attributable to solid performance on the spot market or was it mostly Youtube vessels on time charters being roles at higher rates.

Speaker Change: Yeah.

Speaker Change: Yeah.

Oeyvind Lindeman: You're muted, Oeyvind. Oh boy, mostly on the time chart, Omar. The spot market was getting a little bit choppy leading into to April so January. time charter, which proves the point that also customers are viewing 2025 as being quite tighter or tighter on ship. is a refraction.

Speaker Change: Yes.

Speaker Change: Oh boy.

Speaker Change: Most of the time charter market in particular.

Speaker Change: The spot market.

Speaker Change: It's.

Speaker Change: Getting a little bit choppy leading into April so generally.

Speaker Change: Richard.

Speaker Change: Charter, which proves the point that also customers are viewing 2025 is being quite tight or tighter on ships. So.

Speaker Change: That's just a reflection of that.

Speaker Change: Alright, that's helpful.

Oeyvind Lindeman: Right, that's helpful.

Oeyvind Lindeman: And this one is more on the modeling side. But should we expect the corporate payments on the affiliant export terminal to provide a tailwind to the JVs contribution in the second quarter? Yeah, can I guess? No, no, that will certainly be the case. The deficiency payments tend to vary from contract to contract. So it depends on which the customer is, but typically they will fall into the following quarter portion of it. So yeah, you'll see a benefit or positive impact from it. That's helpful. Thank you. That's everything from me. Thank you for taking my question.

Speaker Change: And this one is more on the modeling side, but should we expect the copay payments on the ethylene export terminal to provide that they'll win to the jv's contribution in the second quarter.

Speaker Change: Yeah.

Speaker Change: Yes, and I guess I'll go.

Speaker Change: No no.

Speaker Change: We'll certainly be the case.

Speaker Change: The deficiency payments tend to vary from contract to contract. So so it depends on which the customer you spoke but typically they will fall into the following quarter proportion of it so yeah, you'll see a benefit or a positive impact from it.

Speaker Change: That's helpful. Thank you that's everything from me. Thank you for taking my questions.

Speaker Change: Absolutely thanks for joining.

Unknown Executive: Absolutely. Thanks for joining.

Unknown Executive: All right, with that for real this time, thanks again and we look forward to seeing you all in August. Goodbye.

Speaker Change: With that for real this time, thanks, again, and we look forward to seeing you all in August.

Speaker Change: Goodbye.