Navigator Holdings Ltd.

Recording in progress. As we conduct today's presentation, we will 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, March 12, 2025, and are as such subject to material risks and uncertainties. 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. With that, I will now pass the floor to Mads Petersakko, the company's CEO. Please go ahead, Mads.

Good morning and good afternoon, and thank you very much for joining this Navigator Gas earnings call for Q4 2024. As a start, I'll review the key data on our Q4 24 performance, and then I'll go over the outlook for the rest of the year. After that, Gary, Oivind and Randy will discuss the results in more detail. In the fourth quarter, we generated more revenues, up 2% compared to same period previous year. This was driven by slightly higher utilization. Adjusted EBITDA for Q4 came in just over $73 million, above both of the $72 million in the same period previous year, as well as the $68 million of Q3. The balance sheet is strong with a robust cash position even after we repaid our final December or we paid our final December installment of $50 million on the terminal expansion project. And we repaid on our debt facilities and paid further installments on the MGC new buildings. The return of capital continued in Q4 with both the 5 cents fixed dividend and a share buyback up to in combination 25% of net income. During Q4, we issued $100 million of new unsecured bonds at 7.25%. This was the tightest spread for any dollar-denominated shipping bond issued in the Nordic market since 2008. Commercially, we held TCE rates high, and we secured average Q4 TCE rates of $28,341, which is approximately equal to the rates of the same period previous year. We achieved utilization above 92% in light with our guidance and higher than both Q3 and same period previous year. We overall pleased with our ability to maintain robust TCE rates and utilization in a market that was temporarily hit by softer ethylene transport demand. Throughput at our joint venture ethylene export terminal was 190 or 159,000 tons for the quarter, higher than Q3, but lower than Q4 of 2023 and below capacity. This was caused by US cracker turnarounds, which reduced domestic supply, causing higher domestic prices and a narrow arbitrage. The expansion of the terminal was completed on time, on budget in December. In November, we exercised our options for an additional two 48,500 cubic meter midsize ethylene carriers with expected delivery in November 2027 and January 2028. We also signed a time chart agreement for the first MGC vessel to be delivered. In December 24, we agreed to acquire three handy size ethylene carriers for a total of $83.9 million. Two of the second hand vessels were delivered in February with the final delivery coming in the next few days. While geopolitical tension reduces our ability to do longer term forecasting right now, we maintain confident about the outlook for our business and for the near term. We expect vessel utilization to continue to be high in Q1, close to what we saw in Q4, and we expect to continue to see robust TCE rates. Also this time around, the ability of our vessels to transport different cargo grades prove valuable. Petrochemicals such as ethane, ethylene, propylene, and butadiene now make up a total of 46% of earnings days. That's higher than what we've seen previously. The vessel supply picture remains attractive with a handy-sized order book of about 10% of the vessels on water. In addition, now 22% of the global handy-sized vessels on the water are more than 20 years of age. With that summary, I'll just hand it over to you, Gary, and you can give a little bit more details about our financial results. Please go ahead.

Thank you very much, Mads, and welcome to everybody. Fourth quarter 2024 financials show another strong result, as Mads was mentioning, maintaining our trend over many recent quarters now, not least as a result of our flexible fleet, as Mads was alluding to, good charter rates and our operational efficiency and control over costs. Jumping on to slide six, following another good operating quarter, adjusted EBITDA was $73.4 million in the fourth quarter of 2024 due to those continuing robust charter rates and strong, stable utilization. And that's probably going to lead us to record an annual unadjusted EBITDA for Navigator 2021. of $292, nearly $293 million, despite very slightly lower time charter equivalent rates in this fourth quarter of 2024 compared to fourth quarter of 2023. Then putting some more numbers on that, our total operating revenue for the quarter was £144 million, with a robust utilisation of 92.2% and continuing healthy time charter equivalent rates, as Mads mentioned, that were on average $28,341 per day in the fourth quarter. In the fourth quarter of 2024, vessel operating expenses were slightly down at $46 million compared to the fourth quarter of 2023, but slightly up compared to the average of the first three quarters of 2024, but which is typical at the end of the financial year as a number of accruals are booked. Depreciations broadly in line with previous quarters in the year and our general and admin costs of $9.4 million in the fourth quarter is in line with the third quarter of 2024. But both of those were slightly elevated compared to our run rate as we recorded some non-recurring costs, mainly legal costs related to projects. Our unrealised movements on non-designated derivative instruments resulted in a small loss in the fourth quarter of $0.3 million, this being related to movements in the fair market value of our long-term interest rate swaps, which affects our net income, but which had no impact on our cash or liquidity. We also report a lower net interest expense in the fourth quarter of 2024 compared to the fourth quarter of 2023 due to lower SOFA rates. And we also have a non-cash unrealised loss on foreign exchange in this fourth quarter of $2.8 million. Our income tax line reflects current tax and mainly deferred taxes, primarily derived from our investment and share of profits in our ethylene export terminal at Morgan's Point. Then overall for the fourth quarter, including our share of results from our joint venture, net income attributable to stockholders of Navigator Holdings was $21.6 million, with a basic earnings per share of $0.31 and adjusted net income, which excludes unrealised gains losses on derivatives, foreign exchange, write-off of deferred financing costs and any gain or loss on the repayment of bonds, was $27 million, or $0.39 per share. Ethylene terminal throughput volumes in Q4-24 were 159,183 tonnes, as Mads mentioned, resulting in a contribution of $5.6 million from our ethylene terminal joint venture. And as usual, Randy will give a little bit more detail on the terminal shortly. On slide 7, our balance sheet remains very strong with a cash and cash equivalents balance of $139.8 million at December 31, 2024. Despite paying out $35 million for scheduled loan repayments, over $1 million in share buybacks in respect of the third quarter 2024, $57 million in the quarter in payments towards our ethylene terminal expansion, and a further $21 million towards our four MGC Newbill vessels. In December 2024, and as planned, we utilised our undrawn bank facilities to cover our share of the final major payment towards our terminal expansion project of $50 million. Based on our outlook today, we anticipate further positive cash generation from our operations in the first quarter of 2025 and beyond. On slide eight, our recently closed financing transactions have helped us to extend our debt maturities, improve our already strong liquidity, reduce our interest expense and helped us fund accretive fleet expansion. In the fourth quarter of 2024, we fully drew down on our new $147.6 million six-year secured term loan and revolving credit facility, which was used to refinance our existing March 2019 secured loan facility that would have matured in March 2025, and to repurchase in October the Navigator Aurora pursuant to our existing October 2019 sale and leaseback arrangement. We're also very pleased to repeat that the margin of 190 basis points includes a sustainability linked adjustment of five basis points, reflecting our continued commitment to concentrating our own efforts on the environmental impact of our fleet. Then, on October 17, 2024, the company successfully issued $100 million of new senior unsecured bonds in the Nordic bond market. These new 2024 bonds will mature in October 2029 and bear a fixed coupon of 7.25% per annum. And we used the proceeds primarily to call and cancel our previous 2020 bond that paid a coupon of 8%, and this call transaction settled on November 1, 2024. Then into the new year on February 7, 2025, we entered into a new senior secure term loan facility of $74.6 million to finance the majority of the purchase price of three secondhand ethylene capable vessels. We've completed the acquisition of two of the three vessels, the Navigator Hyperion and the Navigator Titan on February 19 and February 24, respectively, with the third vessel that will be renamed the Navigator Vesta, currently due to be delivered to us on March 17th. We then have one debt maturity during less than 12 months, which will be the refinancing of our $210 million bank debt facility due to mature in September 2025 and with a balloon then due of $136 million. Refinancing discussions for this are well underway with a supportive lender group, and we expect this refinancing will result in a positive liquidity event for the company and be completed in the second quarter of 2025. On slide 9, our leverage remains in a strong position and is still reducing, with net debt to adjusted EBITDA at 2.4 times for the 12 months to December 31, 2024, and our net debt to capitalisation was 34% at the end of the year. We're continuing to make substantial debt repayments with around $120 million of average annual scheduled debt amortization payments expected across the coming three years, 2025 to 2027. And within our refinancing work streams, we continue to look for further ways to reduce our average cost of debt. Our Morgans Point terminal expansion, which increases the export capacity of the Ethylene Export Terminal, was completed and put into service on December 19, 2024. And we expect the final cost will come in at approximately $128 million, just below our previous expectation of 130. On slide 10, our estimated cash breakeven for 2025 is $20,610 per day, which shows a slight decrease per day compared to the final guidance we provided back in November 2024 in relation to 2024. This figure is all in and includes forecast schedule debt repayments and our dry dock schedule. The breakeven level relative to today's charter rates, recalling our average TCE for the fourth quarter of 2024 was $28,341 per day, provides substantial headroom for Navigator to generate positive EBITDA throughout the shipping cycle. On the right is our OPEX guidance, now for 2025, across our differing vessel size segments, ranging from $8,050 per day for our smaller vessels up to just over $11,000 per day for our larger, more complex ethylene vessels. And following below is guidance for this year and for the first quarter of 2025 across vessel OPEX, general and admin depreciation and cash interest expense. The full year guidance for Vessel OPEX for 2025 towards the bottom is higher than the total for 2024, as we have three extra vessels in 2025 for the majority of the year. Costs relating to our crew are rising, not just for navigator, but across the shipping industry. And we've increased our spend on energy saving technology compared to 2024. Slide 11 outlines our historic quarterly adjusted EBITDA, showing this fourth quarter's solid figure and demonstrating yet another very positive and consistent result, as we've reported for many quarters now, despite a slightly prolonged dip in the ethylene arbitrage, which Oivin will cover shortly. On the right side, as we have done before, we show our historic adjusted EBITDA bar for 2023, last 12 months, and an annualised adjusted EBITDA based on the fourth quarter's results. In addition, the EBITDA bars then to the right of those 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. This is slightly higher than we were showing in the previous quarter, which was an increase of approximately $18 million. Then finally, on slide 12, we have 15 vessels scheduled for dry docking during 2025, of which the first one has already successfully completed on March 7th. And in total, for the 15 vessels, we are expecting 413 off-hire days and total dry docking capex of approximately $30 million, all of which is scheduled, fully costed and included in our cash flow plans. As we've set out before, some further detail on the expected timing and costs of these dry docks is then shown below. And we continue to take our dry docks as opportunities to install these energy saving technologies on our vessels. And this will continue in 2025, as I mentioned before. at a planned total cost of around $5.6 million. Many of these technologies have a very short payback period, helping us to improve our environmental impact, improve operating efficiency, and also gather better data to make further future improvements. So with that, I will hand you over to Oivind to take us through our commercial update and outlook. Oivind.