Navigator Holdings Ltd.

Thank you for standing by, ladies and gentlemen, and welcome to the Navigator Holdings Conference Fall Fourth Quarter Financial Results for 2022. We have with us Mr. Mads Peter Zakko, Chief Executive Officer, Mr. Niall Nolan, Chief Financial Officer, Mr. Oyden Lindeman, Chief Commercial Officer, and myself, Randy Gibbons, Executive Vice President of Investor Relations and Business Development in North America. I must advise you that this conference 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, and are based on management assumptions, forecasts, and expectations as of today's date, and are as such subject to material risks and uncertainties. Actual results may differ significantly from our forward-looking information and financial forecasts. Additional information about these factors and assumptions are included in our annual court reports filed with the Securities and Exchange Commission. With that, I now pass the floor to Mads Peterzakow, the company's Chief Executive Officer. Please go ahead, Mads.

Thank you, Randy, and good morning, and thank you for listening in. Please go, yeah, slide number three. Our fourth quarter came in substantially stronger than the previous quarter with revenues of 123 million dollars EBITDA just below 60 and net income of 10 million. Our balance sheet is robust with cash of 153 million plus 20 million of undrawn facilities at year end. The delevering of our balance sheet continued with net debt reaching just over 700 million by year end. This is despite us buying back shares since mid-December. We finalized our refinancing efforts for now, actually just yesterday. And currently we have our next maturity is only from 2025 and onwards. So our next discussions with our banks will certainly be around growth projects. Commercially, our utilization came in just over 94% in Q4 compared to our guidance of above 90% and above the 91% reached in Q4 2021. Terminal throughput was 263,000 tons. in Q4 and that ran above the nameplate capacity which as you may recall for now is about a million tons per year. Seabourn ammonia transport was strong and we had 10 vessels transporting ammonia during the quarter. Fortunately we'll grow our vessel capacity through the acquisition of five second-hand vessels. Vessels that we know really well because we've commercially managed them over the past few years. We expect to take over all five a bit faster than what we had previously announced. Most likely will be done by April. And that's great, of course, in the current market, which is pretty robust. Our joint venture with Enterprise successfully continues to develop. We continue to run at capacity and we have great plans for expanding the terminal. And Brandy will talk to that in a little bit. The outlook seems bright for now. Q1 is almost over, and we've seen high utilization above 95% so far this quarter. The terminal throughput in Q1 is expected to be strong again at around 260,000 tons, and ethylene is in high demand in both Europe and Asia. Handy-sized rates have gradually firmed, and Øivind will talk a little bit more about those in just a few minutes. So I guess this makes us confident that our financial performance in Q1 of this year is going to be robust. This current healthy demand for seaborne gas transport is well complemented by a modest handy size vessel order book and also an aging global fleet. So with that intro, I'll just leave it to Niall, who will take you through the financial results from the last quarter. Please, Niall.

Thank you Mads and good morning to everybody. As we show here on slide six, the net income and EBITDA for the fourth quarter was 10 million and 59.4 million respectively, an improvement on the third quarter of 2022 and giving a trajectory that is expected to continue into 2023. The total operating revenues for the fourth quarter were 123.3 million. nine million dollars less than the 132.3 million for the comparative fourth quarter of last year, but 16.5 million higher than the 106.8 million achieved in the third quarter of 2022. The nine million dollar decrease for the comparative fourth quarters was threefold. First, we had a lower contribution of seven million dollars from the nine smaller vessels we have in the Unigas pool, Second, there was a decrease of $5 million as a result of pass-through voyage costs as a result of having more vessels on time charters than spot charters than the comparative period. And thirdly, $1.7 million as a result of having 84 less available days during the fourth quarter of 2022 relative to the fourth quarter of 2021. However, these decreases were offset by an increase of $4 million as a result of increasing charter rates, which rose from just under just under $22,500 per day for the fourth quarter of 2021 to $23,621 per day for the fourth quarter of 2022, an increase of $1,100 per vessel per day, as well as an increase of $2.6 million as a result of increased utilization, which, as Maz said, has increased from 91.4% for the fourth quarter of 2021 to 94.1% for the most recent quarter. We had three vessels in dry dock for their scheduled surveys during the fourth quarter, taking the total number of dry dockings to 12 for 2022. In aggregate, these vessels were in dry dock for a total of 375 days during 2022 and cost a total of 16.9 million. As we have no new bills on order. These dry docking costs are the only capital expenditures the company had during 2022. And for 2023, it is expected that we will have seven vessels enter dry dock and a total budgeted cost of $9.2 million. The operating revenue from the Luna pool was $6.3 million, representing our share of the other participants' net revenues. with the voyage expenses from the Luna pool of 5.5 million, which represents the other participants' share of our net revenues from the pool. Consequently, the other pool participants' vessels contributed $800,000 to us during the fourth quarter and $1.4 million over the 12 months of 2022. Voyage expenses, as I referred to a moment ago, decreased by $5 million or 22% during the fourth quarter to $16.9 million, which had the effect of reducing revenue, as I just mentioned, as these are pass-through costs. Our vessel operating expenses increased by 8.7% to $43.9 million for the fourth quarter, compared to the fourth quarter of 2021, which resulted in vessel operating expenses per vessel per day increasing quarter and quarter by 12.9% to $9,058. This was primarily as a result of timing, ordering and delivering spare parts with the average vessel operating expenses per vessel per day for the full year of 2022 being $8,210 per day, a level at which we would expect to maintain or even improve on during 2023. Depreciation of our vessels increased by 19% or $4.9 million compared to the fourth quarter of 2021, primarily as a result of the reduction in the estimated useful life of our vessels from 30 years to 25 years, which occurred on January the 1st, 2022. Depreciation for 2023 is expected to be approximately 130 to $134 million, an increase on 2022 as a result of the additional five ethylene vessels acquired or to be acquired from Pacific Gas. General and administrative costs decreased by 7.4% for the fourth quarter and 5% for the full year as we maintain tight control on our overheads, as well as additional costs incurred in 2021 associated with the ultra gas transaction and the running of our New York office, which we closed in mid 2022. that had not reoccurred in 2022. And other income being management fees earned from the other participant of our management of the Luna pool were $100,000 for the quarter and $364,000 for the full year. We will not benefit from these management fees going forward as the five vessels to which they relate have been or will be purchased by the joint venture and fully consolidated into our financial statements. We redeemed our $600 million Norwegian bond on December 23rd, 2022, and the foreign exchange loss incurred during the quarter relates to the retranslation of that bond between September 30th and the date it was repaid, resulting from the strengthening of the Norwegian kroner relative to the US dollar. Conversely, there was a gain on the cross-currency interest rate swap, which crystallized or was realized on the repayment of the bond and the consequential termination of that swap. With respect to the Norwegian Kronor bond redemption on December 23rd, we paid a premium of 1.79% or 1.1 million to those bondholders on the redemption date and wrote off $212,000 of deferred financing costs associated with that bond. The interest Expense for the fourth quarter was $14 million compared to 10.7 for the fourth quarter of 2021 as a result of rising interest rates on the proportion of our debt that is subject to floating interest rates. We have fixed interest rates or have entered into interest rate swaps for approximately 52% of our debt as at December 31st, 2022 at LIBOR or SOFRA levels that are fixed between 0.36% and 2%. In addition, of course, to our 8% fixed rate $100 million unsecured bond. Our share of results from the ethylene export terminal were $7.9 million for the quarter based on throughput charges relating to 263,000 tons of ethylene exported through the terminal compared to 234,000 tons during the fourth quarter of last year. and significantly higher than the 190,000 tonnes throughput during the third quarter of 2022. In aggregate, during 2022, there were 987,500 tonnes of ethylene throughput, which is on or about the nameplate capacity, and we expect this level of volumes to continue into 2023. The profit for our share of the ethylene export terminal for the full year 2022 was $25.8 million. which in addition to the $5.3 million for our share of the terminal's depreciation, gives the terminal EBITDA for 2022 of $31.1 million relating to our share. The tax charge for the full year 2022 was $5.9 million, of which 5.1 relates to the 21% US tax charge on our share of the profits from the Ethylene Expert terminal. However, 3.8 million of this terminal tax relates to deferred or non-cash taxes. Net income for the fourth quarter was $10 million, as I mentioned, or 13 cents per share, giving a total net income for 2022 of $53.5 million, or 69 cents per share. Moving to the balance sheet on slide seven, company ended the year with a cash balance of 153.2 million dollars against a minimum liquidity covenant from our various banks and credit agreements of 50 million dollars thereby thereby giving us significant headroom the cash balance is after paying the 600 million dollar norwegian crawler bond referred to earlier which relates to about 72 million dollars at december 31st our total debt stood at $862 million. As shown on slide eight, during the last quarter of 2022, we extended the maturity of one of the bank loan facilities by one year from 2024 to 2025. We refinanced another facility that had tranches maturing in 2022 and 2023 by means of a new $111.8 million facility. And we entered into a 151.3 million facility for our 60-40% Greater Bay Joint Venture to part finance the acquisition of the five ethylene carriers from Pacific Gas. The first of these vessels was acquired in December 2022, upon which we drew down $27.5 million on the loan. A second was acquired in January this year, and the remaining three vessels are expected to be acquired one this week, one next week and the final vessel expected to be acquired sometime next month in April. We will pay 60% of the remaining equity portion on these vessels, which equates to approximately $49.8 million from available cash, existing available cash resources. Yesterday, as Mads already referred to, we entered into a new $200 million facility, which will be used to refinance two existing loan facilities that are scheduled to mature in 2023. as well as providing approximately $65 million for general corporate purposes. This loan has a six-year tenor maturing in 2029 and has a cost of software plus a margin of 2.1%. On slide nine, we outlined the estimated cash breakeven for 2023 at $19,170 per day. This low level enables us to generate EBITDA throughout the full shipping cycle. In the box on the right-hand side of Schedule 9, we provide our daily OPEX expectations for 2023 across the differing vessel segments, ranging from $7,500 per day for the smaller vessels to $10,100 a day for the larger, more complex ethylene vessels. We also provide a range of the expected annual spends for G&A costs, depreciation, and interest expense. On slide 10, we outlined our historical quarterly EBITDAs, showing a marked increase over the past five quarters, a trend we expect to continue, along with the effects of our EBITDA on the graph on the right, if our average charter rates were to increase by $1,000 per vessel per day in increments. And with that, I'll hand you over to Eoin for his remarks.