Navigator Holdings Ltd. Preliminary Second Quarter 2020 Results

LONDON, Aug. 13, 2020 /PRNewswire/ --

(Unaudited)

Highlights

    --  Navigator Holdings Ltd. (the "Company", "we", "our" and "us") (NYSE:
        NVGS) reported operating revenue of $79.9 million for the three months
        ended June 30, 2020, compared to $73.6 million for the three months
        ended June 30, 2019.

    --  A net income of $3.0 million (or an earnings per share of $0.05) for the
        three months ended June 30, 2020 which includes COVID-19 related foreign
        exchange gains of $2.5 million and a $0.2 million loss on our 50/50
        joint venture (the "Export Terminal Joint Venture") relating to the
        ethylene export marine terminal at Morgan's Point, Texas (the "Marine
        Export Terminal"), resulting in a net income relating to our vessels of
        $0.7 million. This compares to a first quarter 2020 loss of $8.2
        million, which comprised of foreign exchange losses of $3.7 million, a
        $3.0 million loss on the Export Terminal Joint Venture and a balancing
        loss relating to our vessels of $1.5 million and also to a net loss of
        $7.7 million (or a loss per share of $0.14) for the three months ended
        June 30, 2019.
    --  For the quarter, we reported a loss of $0.2 million on our share of the
        Export Terminal Joint Venture. However, with the commencement of the
        long term take or pay contracts as of the beginning of June, the
        terminal generated a profit for the month, although not sufficient to
        overcome the losses of the prior two months. It is anticipated that the
        terminal will remain profitable for the remainder of the year.
    --  Adjusted EBITDA((1)) was $31.9 million for the for the three months
        ended June 30, 2020, compared to $23.2 million for the three months
        ended June 30, 2019.
    --  Fleet utilization improved to 88.3% for the three months ended June 30,
        2020 compared to 85.2% for the three months ended June 30, 2019.
    --  Navigator Eclipse, one of our flagship 37,500cbm ethylene carriers,
        successfully completed a loading of 20,000mts from our Marine Export
        Terminal in June 2020 - the largest ethylene parcel ever carried on a
        gas carrier.
    --  A new three year charter agreed for a midsize ethane/ethylene carrier,
        with another midsize vessel extended until the end of 2021. Both
        charters are for the transportation of ethane and both are at charter
        rates of well in excess of $30,000 per day.
    --  On August 4, 2020, amended our Terminal Facility to provide for a total
        availability of $69.0 million and to enable the immediate drawdown of
        $34.0 million for general corporate purposes.
    --  We have achieved a record of 622 days without a Lost-Time-Incident (LTI)
        across our in-house technical managed fleet of 17 vessels, while keeping
        vessel operating costs under control.

The Company's financial information for the quarter ended June 30, 2020 included in this press release is preliminary and is subject to change in connection with the completion of the Company's quarter-end close procedures and further financial review. Actual results may differ from these estimates as a result of the completion of the Company's quarter-end closing procedures, review adjustments and other developments that may arise between now and the time such financial information for the quarter ended June 30, 2020 is finalized.

Ethylene Marine Export Terminal

The ethylene Marine Export Terminal is fully functional and the 30,000 ton storage tank, which will increase the terminal's throughput capacity, is scheduled to be completed and in service by the end of this year. The terminal achieved a throughput in excess of 80,000 tons during the month of June 2020. The committed offtake agreements, which have minimum terms of five years, account for approximately 95% of the one million ton annual nameplate throughput capacity.

The Company contributed $7.5 million to the Export Terminal Joint Venture during the second quarter of 2020 with an initial draw down on the Company's Terminal Facility. In addition, since June 30, 2020 the Company has contributed a further $7.5 million to the Export Terminal Joint Venture, also drawn from the Terminal Facility. To date the Company has contributed $140.5 million of our expected share of the approximate $150.0 million capital cost of the Marine Export Terminal. The remaining contributions are scheduled to be contributed during 2021.

Trends

Toward the end of the first quarter of 2020, ethylene shipping slowed as Asian demand was materially impacted by COVID-19 lockdowns and a general slowdown in the global economy. This trend continued into the second quarter. However, as Asian economies restarted during the latter half of the second quarter, so too did the demand for ethylene. An upsurge in U.S. ethylene export capacity from our Marine Export Terminal, drove an uptake in cargo liftings from the second half of May onwards, positively impacting handysize ethylene tonnage. June cargoes alone from the two export terminals in the U.S. totaled around 100,000 tons. July and August also kept pace as the ethylene price arbitrage remained open with charter rates and vessel utilization across the ethylene shipping fleet having improved markedly in the latter part of the second quarter.

Propylene has seen a busy second quarter. Asian pricing improved, increasing pricing arbitrage with the result that approximately 75,000 tons was fixed from the U.S. Gulf area on the spot market. Navigator's vessels lifted approximately half of these tons. The Middle East also contributed export tons, with three handysize cargoes employed on the spot market, two of which were on Navigator vessels. European petrochemical producers continued to use naphtha as feedstock throughout this period which resulted in excess butadiene availability, due to low regional demand. These volumes were exported to Asia on handysize semi-refrigerated vessels adding ton-miles to the segment.

LPG freight rates were volatile during the quarter with the Very Large Gas Carrier 12 month time charter index falling by 36% from $1.1 million per calendar month ("pcm") at the beginning of April to $720,000 pcm at the end of June and the Baltic spot index likewise dropping by 44% during this period. The handysize vessel 12 month charter assessment in comparison declined only 5% from $650,000 pcm to $620,000 pcm showing its resilience to volatility and maintaining a stable profile due to the vessels' flexibility in trading in LPG, petrochemicals and ammonia markets.

The Luna Pool commenced operations in April and had 13 out of the 14 designated handysize ethylene vessels operating in the pool by the end of June. The remaining vessel has since been delivered into the pool. The market participants have welcomed additional ethylene vessels to our service offering. It enables us to improve our flexibility and better meet our customers' needs especially during the ramp-up of the Marine Export Terminal, when ship availability and logistical scheduling added value to the stakeholders.

In summary, the quarter started slow due to the negative impacts of COVID-19 on the world economy but it gradually recovered as various government restrictions were eased and consumption improved, bringing monthly utilization levels from mid 80% at the end of the first quarter to approximately 90% from May 2020 onwards, in part due to the increased activity through the Marine Export Terminal.

COVID-19

The impact of COVID-19 continues to affect global economic conditions that effect our business, financial condition and the results of our operations. The ultimate severity of COVID-19 is uncertain and its future effects depend on the spread of the outbreak, the reactions of various national governments and the duration of the effects of the virus. Therefore, an estimate of the likely impact cannot be made at this time.

Crew changes continue to be a challenge, consistent with most shipowners, although an increasing number of crew changes have successfully occurred during the quarter, with 380 crew relieved, but still leaving over 130 with overdue leave. Drydocking vessels have resumed in various dockyards around the world and the Company has undertaken three drydocks during the second quarter, with a further eight being scheduled for later in the year.

Financing

To increase liquidity, the Company entered into an agreement with the lenders of the Terminal Facility to allow an early true-up of $34.0 million, enabling those funds to be immediately drawn for general corporate purposes due to previous capital contributions for the Marine Export Terminal being paid from the Company's own resources. In addition, the company is seeking to refinance one of its vessel loans to unlock approximately an additional $30 million for general corporate purposes. This refinancing is expected to be completed during the third quarter.

The Company continues to assess the capital markets for refinancing its existing $100 million senior unsecured bond that matures in February 2021. The Company has engaged financial advisors to investigate opportunities in this regard.


                        
            
              Results of Operations for the Three Months Ended June 30, 2019 Compared to the Three Months Ended June 30, 2020




                                  
            The following table compares our operating results for the three months ended June 30, 2019 and 2020:




                                                            
            
              Three Months              
            
              Three Months            
         
             Percentage
                                                                     Ended June 30,                                Ended June 30,                             Change
                                                                                             2019                                           2020



                                                                                                                                                                                ---

                                                      
            (in thousands, except percentages)



     Operating revenue                                                                   $73,586                                        $79,869                                 8.5%


      Operating revenue - Pool collaborative
       arrangements                                                                             -                                         2,596






     Total Operating Revenue                                                             $73,586                                        $82,465                                12.1%





     Operating expenses:



     Brokerage commissions                                                                 1,233                                          1,305                                 5.8%



     Voyage expenses                                                                      16,437                                         14,728                              (10.4%)


      Voyage expenses - Pool collaborative
       arrangements                                                                             -                                         2,926



     Vessel operating expenses                                                            27,448                                         26,493                      
            (3.5%)



     Depreciation and amortization                                                        18,913                                         19,151                                1.3 %


      General and administrative costs                                                      5,195                                          4,509                              (13.2%)






     Total operating expenses                                                            $69,226                                        $69,112                      
            (0.2%)






     Operating income                                                                     $4,360                                        $13,353                               206.3%


      Foreign currency exchange loss on
       senior secured bonds                                                                 (768)                                       (4,852)   
                           n/a


      Unrealized gain on non-designated
       derivative instruments                                                                 861                                          6,354    
                           n/a



     Interest expense                                                                   (12,209)                                      (11,128)                     
            (8.9%)



     Interest income                                                                         205                                             96                             (53.2 %)





      (Loss) /income before taxes and share
       of result of equity accounted joint
       venture                                                                           $(7,551)                                        $3,823                            (150.6 %)



     Income taxes                                                                           (81)                                         (168)                             107.4 %


      Share of result of equity accounted
       joint venture                                                                        (101)                                         (164)                              62.4 %






     Net (loss) / income                                                                $(7,733)                                        $3,491


      Net income attributable to non-
       controlling interest                                                                     -                                         (483)





      Net (loss) /income attributable to
       stockholders of Navigator Holdings
       Ltd                                                                               $(7,733)                                        $3,008

Operating Revenue. Operating revenue increased by $6.3 million or 8.5% to $79.9 million for the three months ended June 30, 2020, from $73.6 million for the three months ended June 30, 2019. This increase was principally due to:

    --  an increase in operating revenue of approximately $4.8 million
        attributable to an increase in average monthly time charter equivalent
        rates, which increased to an average of approximately $657,085 per
        vessel per calendar month ($21,606 per day) for the three months ended
        June 30, 2020, compared to an average of approximately $606,572 per
        vessel per calendar month ($19,940 per day) for the three months ended
        June 30, 2019.
    --  an increase in operating revenue of approximately $2.3 million
        attributable to an increase in fleet utilization which rose to 88.3% for
        the three months ended June 30, 2020 from 85.2% for the three months
        ended June 30, 2019;
    --  an increase in operating revenue of approximately $0.9 million
        attributable to an increase in vessel available days of 52 days or 1.5%
        for the three months ended June 30, 2020 compared to the three months to
        June 30, 2019, primarily due to a reduction in the number of dry
        dockings undertaken during the three months ended June 30, 2020,
        compared to the three months ended June 30, 2019 as a result of local
        lockdowns caused by COVID-19; and
    --  a decrease in operating revenue of approximately $1.7 million primarily
        attributable to a decrease in pass through voyage costs, due to less
        fuel and canal transit costs for the three months ended June 30, 2020
        compared to the three months ended June 30, 2019.

The following table presents selected operating data for the three months ended June 30, 2019 and 2020, which we believe are useful in understanding the basis for movement in our operating revenue.


                         
     
                Three Months    
     
                Three Months
                               Ended                          Ended
                           June 30, 2019                  June 30, 2020





                  Fleet
                   Data:


      Weighted
      average
      number
      of
      vessels                                      38.0                            38.0


      Ownership
      days                                        3,458                           3,458


      Available
      days                                        3,362                           3,414


      Operating
      days                                        2,866                           3,015


     Fleet
      utilization                                85.2 %                          88.3%


     Average
      daily
      time
      charter
      equivalent
      rate
      (*)                                       $19,940                         $21,606

* Non-GAAP Financial Measure--Time charter equivalent: Time charter equivalent ("TCE") rate is a measure of the average daily revenue performance of a vessel. TCE is not calculated in accordance with U.S. GAAP. For all charters, we calculate TCE by dividing total operating revenues, less any voyage expenses, by the number of operating days for the relevant period. Under a time charter, the charterer pays substantially all of the vessel voyage related expenses, whereas for voyage charters, also known as spot market charters, we pay all voyage expenses. TCE rate is a shipping industry performance measure used primarily to compare period-to-period changes in a company's performance despite changes in the mix of charter types (i.e., spot charters, time charters and contracts of affreightment) under which the vessels may be employed between the periods. We include average daily TCE rate, as we believe it provides additional meaningful information in conjunction with net operating revenues, because it assists our management in making decisions regarding the deployment and use of our vessels and in evaluating their financial performance. Our calculation of TCE rate may not be comparable to that reported by other companies.

Reconciliation of Operating Revenue to TCE rate

The following table represents a reconciliation of operating revenue to TCE rate. Operating revenue is the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.


                              
            
                Three Months             
     
                Three Months
                                            Ended                                   Ended
                                        June 30, 2019                           June 30, 2020





                                        (in thousands, except operating days
                                and average daily time charter
                                       equivalent rate)


                  Fleet Data:


     Operating revenue
      (excluding
      collaborative
      arrangements)                                                  $73,586                             $79,869


     Voyage expenses
      (excluding
      collaborative
      arrangements)                                                   16,437                              14,728





     Operating revenue
      less Voyage expenses                                            57,149                              65,141





     Operating days                                                    2,866                               3,015


     Average daily time
      charter equivalent
      rate                                                           $19,940                             $21,606

Operating Revenue - pool collaborative arrangements. Operating revenue - collaborative arrangements was $2.6 million for the three months ended June 30, 2020, which was our share of the other Luna Pool participants revenue. The Luna Pool, which comprises nine of the Company's ethylene vessels and five ethylene vessels from Pacific Gas Pte. Ltd., focuses on the transportation of ethylene and ethane to meet the growing demands of our customers. The Luna Pool became operational during the quarter ended June 30, 2020 and consequently there was no Operating Revenue - collaborative arrangements for the three months ended June 30, 2019.

Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.5% of operating revenue, increased by 5.8%, to $1.3 million for the three months ended June 30, 2020, from $1.2 million for the three months ended June 30, 2019, primarily as a result of an increase in operating revenue on which brokerage commissions are based.

Voyage Expenses. Voyage expenses decreased by 10.4% to $14.7 million for the three months ended June 30, 2020, from $16.4 million for the three months ended June 30, 2019. This was primarily due to a decrease in oil prices following the onset of the COVID-19 pandemic and consequently a reduction in the price of bunkers used by our vessels. The number of voyage charter days increased by approximately 6.0% during the during the three months ended June 30, 2020 as compared to the three months ended June 30, 2019 but the reduction in bunker prices more than offset the increased voyage charter costs that would be attributable to this rise. These decreased voyage costs are pass through costs, corresponding to a decrease in operating revenue of the same amount.

Voyage Expenses. - pool collaborative arrangements. Voyage expenses - pool collaborative arrangements were $2.9 million for the three months ended June 30, 2020, which was our other Luna Pool participants share of our revenue, less our Luna Pool management fees. The net effect after deducting operating revenue - pool collaborative arrangements was that our vessels contributed $0.3 million to other participants in the Luna Pool. The Luna Pool became operational during the quarter ended June 30, 2020 and consequently there was no Voyage Expenses - pool collaborative arrangements for the three months ended June 30, 2019.

Vessel Operating Expenses. Vessel operating expenses decreased by 3.5% to $26.5 million for the three months ended June 30, 2020, from $27.4 million for the three months ended June 30, 2019. Average daily vessel operating expenses decreased by $276 per vessel per day, or 3.5%, to $7,661 per vessel per day for the three months ended June 30, 2020, compared to $7,938 per vessel per day for the three months ended June 30, 2019. This was primarily due to a general underspend in vessel operating expenses across the fleet as costs were tightly controlled, as well as some costs being deferred to subsequent quarters as a result of COVID-19.

Depreciation and Amortization. Depreciation and amortization expense increased by 1.3% to $19.2 million for the three months ended June 30, 2020, from $18.9 million for the three months ended June 30, 2019. Depreciation and amortization expense included amortization of capitalized drydocking costs of $2.0 million and $1.8 million for the three months ended June 30, 2020 and 2019 respectively.

General and Administrative Costs. General and administrative costs decreased by $0.7 million or 13.2% to $4.5 million for the three months ended June 30, 2020, from $5.2 million for the three months ended June 30, 2019. The decrease in general and administrative costs was primarily due to a gain on the revaluation of an Indonesian Rupiah bank account as of June 30, 2020, regaining $1.0 million since March 31, 2020 following a strengthening of the Indonesian Rupiah relative to the U.S. dollar.

Non-operating Results

Foreign Currency Exchange Loss on Senior Secured Bonds. Exchange gains and losses relate to non-cash movements on our 600 million Norwegian Kroner 2018 Bonds which are translated to U.S. Dollar at the prevailing exchange rate as of June 30, 2020. The foreign currency exchange loss of $4.9 million for the three months ended June 30, 2020 was as a result of the Norwegian Kroner strengthening against the U.S. dollar, being NOK 9.7 to USD 1.0 as of June 30, 2020 compared to NOK 10.5 to USD 1.0 as of March 31, 2020.

Unrealized Gain on Non-designated Derivative Instruments. The unrealized gain on non-designated derivative instruments of $6.4 million for the three months ended June 30, 2020 relates to the fair value movement in our cross-currency interest rate swap and is primarily due to the strengthening of the Norwegian Kroner against the U.S. dollar. The unrealized gain on this swap for the three months ended June 30, 2019 was $0.8 million.

Interest Expense. Interest expense decreased by $1.1 million, or 8.9%, to $11.1 million for the three months ended June 30, 2020, from $12.2 million for the three months ended June 30, 2019. This is primarily as a result of a reduction in 3-month US LIBOR interest rates.

Income Taxes. Income taxes related to taxes on our subsidiaries incorporated in the United Kingdom, Poland and Singapore and our consolidated variable interest entity ("VIE"), incorporated in Malta. For the three months ended June 30, 2020, we had a tax charge of $168,000 compared to taxes of $81,000 for the three months ended June 30, 2019.

Share of result of equity accounted joint venture. The share of result of the Company's 50% ownership in the Export Terminal Joint Venture was a loss of $0.2 million for the three months ended June 30, 2020, primarily as a result of initial low volumes through the Marine Export Terminal earlier in the quarter, prior to the commencement of the throughput agreements.

Non-Controlling Interest. We have entered into a sale and leaseback arrangement with a wholly-owned special purpose vehicle ("lessor SPV") of a financial institution. While we do not hold any equity investments in this lessor SPV, we have determined that we are the primary beneficiary of this entity and accordingly, we are required to consolidate this VIE into our financial results. Thus, the income attributable to the financial institution of $0.5 million is presented as the non-controlling interest in our financial results.

Results of Operations for the Six Months Ended June 30, 2019 Compared to the Six Months Ended June 30, 2020

The following table compares our operating results for the six months ended June 30, 2019 and 2020:


                                                 
           
                Six Months      
      
                Six Months        
     
            Percentage
                                                                                        Ended June 30,                      Change
                                               
           
                Ended June 30,
                                                                                 2019                            2020





                                             
         (in thousands, except percentages)



     Operating revenue                                                      $149,689                        $161,126                      7.6 %


      Operating revenue - Pool collaborative
       arrangements                                                                                            2,596






     Total operating revenue                                                $149,689                        $163,722                       9.4%





     Operating expenses:



     Brokerage commissions                                                     2,542                           2,560                      0.7 %



     Voyage expenses                                                          29,794                          32,272                      8.3 %


      Voyage expenses -Pool collaborative
       arrangements                                                                                            2,926



     Vessel operating expenses                                                56,922                          53,899                     (5.3%)


      Depreciation and amortization                                            37,861                          38,361                       1.3%


      General and administrative costs                                          9,997                          11,017                     10.2 %






     Total operating expenses                                               $137,116                        $141,035                       2.9%






     Operating income                                                        $12,573                         $22,687                      80.4%


      Foreign currency exchange (loss)/gain
       on senior secured bonds                                                  (952)                          6,565   
                    n/a


      Unrealized gain/(loss) on non-
       designated derivative instruments                                        1,645                         (7,607)  
                    n/a



     Interest expense                                                       (24,362)                       (22,668)                    (7.0%)



     Interest income                                                             420                             315                    (25.0%)





      (Loss)/income before taxes and share
       of result of equity accounted joint
       venture                                                              $(10,676)                         $(708)                   (93.4%)



     Income taxes                                                              (174)                          (336)                    93.1 %


      Share of result of equity accounted
       joint venture                                                            (140)                        (3,205)  
                    n/a






     Net loss                                                              $(10,990)                       $(4,249)                   (61.3%)


      Net income attributable to non-
       controlling interest                                                                                    (905)





      Net loss attributable to stockholders
       of Navigator Holdings Ltd                                            $(10,990)                       $(5,154)                   (53.1%)

Operating Revenue. Operating revenue, net of address commission, increased by $11.4 million or 7.6% to $161.1 million for the six months ended June 30, 2020, from $149.7 million for the six months ended June 30, 2019. This increase was principally due to:

    --  an increase in operating revenue of approximately $5.3 million
        attributable to an increase in fleet utilization which rose to 88.7% for
        the six months ended June 30, 2020 from 85.0% for the six months ended
        June 30, 2019;
    --  an increase in operating revenue of approximately $2.1 million
        attributable to an increase in average monthly time charter equivalent
        rates, which increased to an average of approximately $645,670 per
        vessel per calendar month ($21,228 per day) for the six months ended
        June 30, 2020, compared to an average of approximately $634,622 per
        vessel per calendar month ($20,864 per day) for the six months ended
        June 30, 2019.
    --  an increase in operating revenue of approximately $1.5 million
        attributable to an increase in vessel available days of 85 days or 1.3%
        for the six months ended June 30, 2020, due to an increase in the number
        of ownership days for the leap year and a reduction in the number of dry
        dockings undertaken during the six months ended June 30, 2020 compared
        to the six months ended June 30, 2019 as a result of local lockdowns
        caused by COVID-19; and
    --  an increase in operating revenue of approximately $2.5 million primarily
        attributable to an increase in pass through voyage costs, due to
        additional fuel and canal transit costs for the six months ended June
        30, 2020 compared to the six months ended June 30, 2019.

The following table presents selected operating data for the six months ended June 30, 2019 and 2020, which we believe are useful in understanding the basis for movement in our operating revenue.


                         
      
                Six Months     
      
                Six Months
                               Ended                          Ended
                           June 30, 2019                  June 30, 2020





                  Fleet
                   Data:


      Weighted
      average
      number
      of
      vessels                                      38.0                            38.0


      Ownership
      days                                        6,878                           6,916


      Available
      days                                        6,761                           6,846


      Operating
      days                                        5,746                           6,070


     Fleet
      utilization                                85.0 %                          88.7%


     Average
      daily
      time
      charter
      equivalent
      rate
      (*)                                       $20,864                         $21,228

* Non-GAAP Financial Measure--Time charter equivalent: Time charter equivalent ("TCE") rate is a measure of the average daily revenue performance of a vessel. TCE is not calculated in accordance with U.S. GAAP. For all charters, we calculate TCE by dividing total operating revenues, less any voyage expenses, by the number of operating days for the relevant period. Under a time charter, the charterer pays substantially all of the vessel voyage related expenses, whereas for voyage charters, also known as spot market charters, we pay all voyage expenses. TCE rate is a shipping industry performance measure used primarily to compare period-to-period changes in a company's performance despite changes in the mix of charter types (i.e., spot charters, time charters and contracts of affreightment) under which the vessels may be employed between the periods. We include average daily TCE rate, as we believe it provides additional meaningful information in conjunction with net operating revenues, because it assists our management in making decisions regarding the deployment and use of our vessels and in evaluating their financial performance. Our calculation of TCE rate may not be comparable to that reported by other companies.

Reconciliation of Operating Revenue to TCE rate

The following table represents a reconciliation of operating revenue to TCE rate. Operating revenue is the most directly comparable financial measure calculated in accordance with U.S. GAAP for the periods presented.


                              
             
                Six Months              
     
                Six Months
                                            Ended                                  Ended
                                        June 30, 2019                          June 30, 2020





                                        (in thousands, except operating days
                                and average daily time charter
                                       equivalent rate)


                  Fleet Data:


     Operating revenue
      (excluding
      collaborative
      arrangements)                                                 $149,689                           $161,126


     Voyage expenses
      (excluding
      collaborative
      arrangements)                                                   29,794                             32,272




     Operating revenue
      less Voyage expenses                                           119,895                            128,854




     Operating days                                                    5,746                              6,070


     Average daily time
      charter equivalent
      rate                                                           $20,864                            $21,228

Operating Revenue - pool collaborative arrangements. Operating revenue - collaborative arrangements was $2.6 million for the six months ended June 30, 2020, which was our share of the other Luna Pool participants revenue. The Luna Pool became operational during the quarter ended June 30, 2020 and consequently there was no Operating Revenue - pool collaborative arrangements for the six months ended June 30, 2019.

Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.5% of operating revenue, increased by 0.7%, to $2.6 million for the six months ended June 30, 2020, from $2.5 million for the six months ended June 30, 2019. The increase was primarily due to an increase in operating revenue on which brokerage commissions are based.

Voyage Expenses. Voyage expenses increased by 8.3% to $32.3 million for the six months ended June 30, 2020, from $29.8 million for the six months ended June 30, 2019. This was primarily due to the cost of low sulfur fuel in accordance with new International Maritime Organization regulations which came into force from January 1, 2020 requiring vessels to use fuel with a range of no more than 0.1% to 0.5% sulfur emissions depending on their area of trading and an increase in canal transits performed by our vessels during the six months ended June 30, 2020 as compared to the six months ended June 30, 2019. Bunker prices have reduced during the six months ended June 30, 2020 due to the drop in the oil price as a result of the COVID-19 pandemic but there is still an effect from the higher prices seen in the first quarter on bunker costs within voyage expenses. These increased voyage costs are pass through costs, corresponding to an increase in operating revenue of the same amount.

Voyage Expenses. - pool collaborative arrangements. Voyage expenses - pool collaborative arrangements was $2.9 million for the six months ended June 30, 2020, which was our other Luna Pool participants share of our revenue, less our Luna Pool management fees. The net effect after deducting operating revenue - pool collaborative arrangements was that our vessels contributed $0.3 million to other participants in the Luna Pool. The Luna Pool became operational during the quarter ended June 30, 2020 and consequently there was no Voyage Expenses - pool collaborative arrangements for the six months ended June 30, 2019.

Vessel Operating Expenses. Vessel operating expenses decreased by 5.3% to $53.9 million for the six months ended June 30, 2020, from $56.9 million for the six months ended June 30, 2019. Average daily vessel operating expenses decreased by $483 per vessel per day, or 5.8%, to $7,793 per vessel per day for the six months ended June 30, 2020, compared to $8,276 per vessel per day for the six months ended June 30, 2019. This was primarily due to a general underspend in vessel operating expenses across the fleet during the six months ended June 30, 2020 compared to the six months ended June 30, 2019 as well as unexpected costs incurred for repairs and maintenance for the six months ended June 30, 2019 which have not reoccurred for the six months ended June 30, 2020.

Depreciation and Amortization. Depreciation and amortization expense increased by 1.3% to $38.4 million for the six months ended June 30, 2020, from $37.9 million for the six months ended June 30, 2019. Depreciation and amortization expense included amortization of capitalized drydocking costs of $4.1 million and $3.7 million for the six months ended June 30, 2020 and 2019 respectively.

General and Administrative Costs. General and administrative costs increased by $1.0 million or 10.2% to $11.0 million for the six months ended June 30, 2020, from $10.0 million for the six months ended June 30, 2019. This increase in general and administrative costs was primarily due to additional insurance costs of $0.4 million for the now operational Marine Export Terminal and the write off of previously capitalized costs of $0.5 million relating to the same Marine Export Terminal.

Non-operating Results

Foreign Currency Exchange (Loss)/Gain on Senior Secured Bonds. Exchange gains and losses relate to non-cash movements on our 600 million Norwegian Kroner 2018 Bonds which are translated to U.S. Dollars at the prevailing exchange rate as of June 30, 2020. The foreign currency exchange gain of $6.6 million for the six months ended June 30, 2020 was as a result of the Norwegian Kroner weakening against the U.S. dollar, being NOK 9.7 to USD 1.0 as of June 30, 2020 compared to NOK 8.8 to USD 1.0 as of December 31, 2019.

Unrealized Gain/(Loss) on Non-designated Derivative Instruments. The unrealized loss on non-designated derivative instruments of $7.6 million for the six months ended June 30, 2020 relates to the fair value movement in our cross-currency interest rate swap and is primarily due to the weakening of the Norwegian Kroner against the U.S. dollar. The unrealized gain on this swap for the six months ended June 30, 2019 was $1.6 million.

Interest Expense. Interest expense decreased by $1.7 million, or 7.0%, to $22.7 million for the six months ended June 30, 2020, from $24.4 million for the six months ended June 30, 2019. This is primarily as a result of a reduction in 3-month US LIBOR interest rates, $1.0 million of which was offset by a lower amount of interest capitalization on the Marine Export Terminal for the six months ended June 30, 2020 compared to the six months ended June 30, 2019.

Income Taxes. Income taxes related to taxes on our subsidiaries incorporated in the United Kingdom, Poland and Singapore and our consolidated variable interest entity ("VIE"), incorporated in Malta. For the six months ended June 30, 2020, we had a tax charge of $336,000 compared to taxes of $174,000 for the six months ended June 30, 2019.

Share of result of equity accounted joint venture. The share of result of the Company's 50% ownership in the Export Terminal Joint Venture was a loss of $3.2 million for the six months ended June 30, 2020 compared to a loss of $0.1 million for the six months ended June 30, 2019, primarily as a result of initial losses following the terminal becoming operational in December 2019. However volumes of product through the Marine Export Terminal have increased during the second quarter of 2020.

Non-Controlling Interest. We have entered into a sale and leaseback arrangement with a wholly-owned special purpose vehicle ("lessor SPV") of a financial institution. While we do not hold any equity investments in this lessor SPV, we have determined that we are the primary beneficiary of this entity and accordingly, we are required to consolidate this VIE into our financial results. Thus, the income attributable to the financial institution of $0.9 million is presented as the non-controlling interest in our financial results.

Reconciliation of Non-GAAP Financial Measures

The following table sets forth a reconciliation of net income attributable to the stockholders of the Company to EBITDA and Adjusted EBITDA for the three and six months ended June 30, 2019 and 2020:


                                           
         (in thousands)                            
      (in thousands)


                                         
         Three months ended                         
      Six months ended


                                             
          June 30,          
     June 30,                       June 30,   
              June 30,
                                                                 2019                2020                    2019                          2020


      Net income /(loss) attributable
       to the stockholders of Navigator
       Holdings Ltd.                                         $(7,733)             $3,008               $(10,990)                     $(5,154 )



     Net interest expense                                     12,004              11,032                  23,942     22,353



     Income taxes                                                 81                 168                     174        336


      Depreciation and amortization                            18,913              19,151                  37,861     38,361






     EBITDA(1)                                               $23,265             $33,359                 $50,987                       $55,896


      Foreign currency exchange loss /
       (gain) on senior secured bonds                             768               4,852                     952   (6,565 )


      Unrealized loss /(gain) on non-
       designated derivative instruments                        (861)            (6,354)                (1,645)     7,607






     Adjusted EBITDA(1)                                      $23,172             $31,857                 $50,294                       $56,938

`

(1) EBITDA and Adjusted EBITDA are not measurements prepared in accordance with U.S. GAAP (non-GAAP financial measures). EBITDA represents net income attributable to stockholders of the Company before net interest expense, income taxes and depreciation and amortization. We define Adjusted EBITDA as EBITDA before foreign currency exchange gain or loss on senior secured bonds and unrealized gain or loss on non-designated derivative instruments. Management believes that EBITDA and Adjusted EBITDA are useful to investors in evaluating the operating performance of the Company. EBITDA and Adjusted EBITDA do not represent and should not be considered alternatives to consolidated net income, cash generated from operations or any measure prepared in accordance with U.S. GAAP, and our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies. See the table above for a reconciliation of EBITDA and Adjusted EBITDA to net income / (loss) attributable to stockholders of the Company, our most directly comparable U.S. GAAP financial measure.

Our Fleet

The following table sets forth our vessels as of August 13, 2020:


                     Operating Vessel              Year       Vessel Size  
          
                Employment                 Current Cargo 
              
                Charter
                                             Built      (cbm)              Status                                                       Expiration Date



    ---

                     Ethylene/ethane capable
                      semi-refrigerated



       Navigator Orion*                           2000             22,085   
          Contract of affreightment 
     Ethylene


        Navigator Neptune*                         2000             22,085   
          Time charter              
     Ethane                    
              October 2020



       Navigator Pluto                            2000             22,085   
          Time charter              
     LPG                       
              January 2021



       Navigator Saturn*                          2000             22,085   
          Spot market               
     Ethylene



       Navigator Venus*                           2000             22,085   
          Time charter              
     Ethane                    
              November 2020



       Navigator Atlas*                           2014             21,000   
          Contract of affreightment 
     Ethylene



       Navigator Europa*                          2014             21,000   
          Contract of affreightment 
     Ethylene



       Navigator Oberon*                          2014             21,000   
          Contract of affreightment 
     Ethylene



       Navigator Triton*                          2015             21,000   
          Spot market               
     Ethylene



       Navigator Umbrio*                          2015             21,000   
          Contract of affreightment 
     Ethylene



       Navigator Aurora                           2016             37,300   
          Time charter              
     LPG                       
              December 2026



       Navigator Eclipse                          2016             37,300   
          Spot market               
     Ethylene



       Navigator Nova                             2017             37,300   
          Time charter              
     Ethane                    
              September 2023


        Navigator Prominence                       2017             37,300   
          Time charter              
     Ethane                    
              December 2021




                     Semi-refrigerated


        Navigator Magellan                         1998             20,700   
          Time charter              
     LPG                       
              October 2020



       Navigator Aries                            2008             20,750   
          Time charter              
     LPG                       
              September 2020


        Navigator Capricorn                        2008             20,750   
          Spot market               
     Propylene



       Navigator Gemini                           2009             20,750   
          Spot market



       Navigator Pegasus                          2009             22,200   
          Spot market



       Navigator Phoenix                          2009             22,200   
          Spot market



       Navigator Scorpio                          2009             20,750   
          Time charter              
     LPG                       
              August 2020



       Navigator Taurus                           2009             20,750   
          Spot market               
     LPG



       Navigator Virgo                            2009             20,750   
          Spot market               
     LPG



       Navigator Leo                              2011             20,600   
          Time charter              
     LPG                       
              December 2023



       Navigator Libra                            2012             20,600   
          Time charter              
     LPG                       
              December 2023


        Navigator Centauri                         2015             21,000   
          Time charter              
     LPG                       
              September 2020



       Navigator Ceres                            2015             21,000   
          Spot market



       Navigator Ceto                             2016             21,000   
          Spot market               
     Butadiene


        Navigator Copernico                        2016             21,000   
          Spot market               
     Propylene



       Navigator Luga                             2017             22,000   
          Time charter              
     LPG                       
              February 2022



       Navigator Yauza                            2017             22,000   
          Time charter              
     LPG                       
              April 2022




                     Fully-refrigerated



       Navigator Glory                            2010             22,500   
          Time charter              
     Ammonia                   
              June 2021



       Navigator Grace                            2010             22,500   
          Drydock



       Navigator Galaxy                           2011             22,500   
          Spot market               
     LPG



       Navigator Genesis                          2011             22,500   
          Time charter              
     LPG                       
              July 2021



       Navigator Global                           2011             22,500   
          Time charter              
     LPG                       
              November 2020



       Navigator Gusto                            2011             22,500   
          Time charter              
     LPG                       
              December 2020



       Navigator Jorf                             2017             38,000   
          Time charter              
     Ammonia                   
              August 2027

*denotes our owned vessels that operate within the Luna Pool

Conference Call Details:

Tomorrow, Friday, August 14, 2020, at 9:00 A.M. ET, the Company's management team will host a conference call to discuss the preliminary financial results.

Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 1 (877) 553-9962 (US Toll Free Dial In), 0(808) 238-0669 (UK Toll Free Dial In) or +44 (0) 2071 928 592 (Standard International Dial In). Please quote "Navigator" to the operator. There will also be a live, and then archived, webcast of the conference call, available through the Company's website (www.navigatorgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

A telephonic replay of the conference call will be available until August 21, 2020, by dialing 1(866) 331-1332 (US Toll Free Dial In), 0(808) 238-0667 (UK Toll Free Dial In) or +44 (0) 3333 009 785 (Standard International Dial In). Access Code: 11870348#

About Us

Navigator Holdings Ltd. is the owner and operator of the world's largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas ("LPG") and ammonia. Navigator's fleet consists of 38 semi- or fully-refrigerated liquefied gas carriers, 14 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with our sophisticated vessels providing an efficient and reliable 'floating pipeline' between the parties. We continue to build strong, long-term partnerships based on mutual trust, our depth of technical expertise and a modern versatile fleet. The Company also owns a 50% share, through a joint venture in an ethylene export marine terminal at Morgan's Point, Texas on the Houston Ship Channel, USA.


                                      
              
                NAVIGATOR HOLDINGS LTD




                               
              
                Condensed Consolidated Balance Sheets


                                            
              
                (Unaudited)




                                                      
              December 31, 2019           
     June 30, 2020



                                                                                                                ---

                                                         (in thousands, except share data)



     
                Assets



     
                Current assets


      Cash, cash equivalents                                                         $64,820                 $53,082


      Restricted Cash                                                                  1,310                   8,170


      Accounts receivable, net
       of allowance for credit
       losses of $228,000,
       (December 31, 2019: nil)                                                       23,462                  22,886



     Accrued income                                                                   6,280                   9,313


      Prepaid expenses and
       other current assets                                                           17,670                  20,082


      Bunkers and lubricant
       oils                                                                            9,645                   9,155


      Insurance Receivable                                                             2,939                   2,950





      Total current assets                                                           126,126                 125,638



     
                Non-current assets



     Vessels, net                                                                 1,609,527               1,574,908


      Property, plant and
       equipment, net                                                                  1,159                     886


      Investment in equity
       accounted joint venture                                                       130,660                 135,310


      Right-of-use asset for
       operating leases                                                                6,781                   6,249


      Prepaid expenses and
       other non-current
       assets                                                                              -                  3,398

                                                                                                                ---



      Total non-current assets                                                     1,748,127               1,720,751





                   Total assets                                                   $1,874,253              $1,846,389

                                                                                                                ===




     
                Liabilities and stockholders' equity



     
                Current liabilities


      Current portion of
       secured term loan
       facilities, net of
       deferred financing costs                                                      $64,703                 $72,107


      Senior unsecured bond,
       net of deferred
       financing costs                                                                     -                 99,394


      Current portion of
       operating lease
       liabilities                                                                     1,178                   1,157


      Accounts payable                                                                10,472                  10,994


      Accrued expenses and
       other liabilities                                                              14,124                  15,601


      Accrued interest                                                                 4,424                   4,087


      Deferred income                                                                 14,154                  15,800


      Amounts due to related
       parties                                                                           451                   1,051





      Total current liabilities                                                      109,506                 220,191






     
                Non-current liabilities


      Secured term loan
       facilities and revolving
       credit facilities, net
       of current portion and
       deferred financing costs                                                      578,676                 546,254


      Senior secured bond, net
       of deferred financing
       costs                                                                          67,503                  60,936


      Senior unsecured bond,
       net of deferred
       financing costs                                                                98,513                       -


      Derivative liabilities                                                           5,769                  13,377


      Operating lease
       liabilities, net of
       current portion                                                                 6,329                   5,353


      Amounts due to related
       parties                                                                        68,055                  64,328





      Total non-current
       liabilities                                                                   824,845                 690,248





                   Total Liabilities                                                 934,351                 910,439



     
                Commitments and contingencies



     
                Stockholders' equity


      Common stock-$.01 par
       value per share;
       400,000,000 shares
       authorized; 55,905,294
       shares issued and
       outstanding, (December
       31, 2019: 55,826,644)                                                             558                     559


      Additional paid-in
       capital                                                                       592,010                 592,548


      Accumulated other
       comprehensive loss                                                              (331)                  (422)


      Retained earnings                                                              347,566                 342,261





      Total Navigator Holdings
       Ltd. stockholders'
       equity                                                                        939,803                 934,946


      Non-controlling interest                                                            99                   1,004






     Total equity                                                                   939,902                 935,950





                   Total liabilities and
                    stockholders' equity                                          $1,874,253              $1,846,389

                                                                                                                ===


                               
              
                NAVIGATOR HOLDINGS LTD


                   
              
                Condensed Consolidated Statements of Operations


                                     
              
                (Unaudited)








                                                                    
              Three months ended                     
              Six months ended

                                                                          
              June 30,                             
              June 30,


                                                                               2019               2020               2019                                2020

                                                                                                                                                       ---



                                                                                     
              (in thousands except share and per share data)



     
                Revenues


      Operating revenue                                                     $73,586            $79,869           $149,689                            $161,126


      Operating revenue-
       Luna Pool
       collaborative
       arrangement                                                                              2,596                                                 2,596





                   Total operating
                    revenues                                                 73,586             82,465            149,689                             163,722

                                                                                                                                                       ---




     
                Expenses


      Brokerage commissions                                                   1,233              1,305              2,542                               2,560


      Voyage expenses                                                        16,437             14,728             29,794                              32,272


      Voyage expenses - Luna
       Pool collaborative
       arrangement                                                                              2,926                                                 2,926


      Vessel operating
       expenses                                                              27,448             26,493             56,922                              53,899


      Depreciation and
       amortization                                                          18,913             19,151             37,861                              38,361


      General and
       administrative costs                                                   5,195              4,509              9,997                              11,017

                                                                                                                                                       ---



                   Total operating
                    expenses                                                 69,226             69,112            137,116                             141,035

                                                                                                                                                       ---



                   Operating income                                           4,360             13,353             12,573                              22,687



     
                Other income / (expense)


      Foreign currency
       exchange (loss) /gain
       on senior secured
       bonds                                                                  (768)           (4,852)             (952)                              6,565


      Unrealized gain /
       (loss) on non-
       designated derivative
       instruments                                                              861              6,354              1,645                            (7,607 )


      Interest expense                                                    (12,209 )          (11,128)         (24,362 )                           (22,668)


      Interest income                                                           205                 96                420                                 315

                                                                                                                                                       ---



                   (Loss) /income before
                    income taxes and
                    share of result of
                    equity accounted
                    joint venture                                           (7,551)             3,823           (10,676)                              (708)


      Income taxes                                                             (81)            (168 )             (174)                              (336)


      Share of result of
       equity accounted
       joint ventures                                                         (101)            (164 )             (140)                            (3,205)

                                                                                                                                                       ---



      Net (loss) /income                                                    (7,733)             3,491           (10,990)                            (4,249)


      Net income
       attributable to non-
       controlling interest                                                                     (483)                                                (905)





                   Net (loss) /income
                    attributable to
                    stockholders of
                    Navigator Holdings
                    Ltd                                                    $(7,733)            $3,008          $(10,990)                          $(5,154 )





      (Loss) /earnings per share attributable to stockholders of
       Navigator Holdings Ltd.:


      Basic and diluted:                                                    $(0.14)             $0.05            $(0.20)                            $(0.09)



     Weighted average number of shares outstanding:



     Basic:                                                             55,832,069         55,905,600         55,756,897                          55,871,893



     Diluted:                                                           55,832,069         56,253,778         55,756,897                          55,871,893

                                                                                                                                                       ===


                                          
              
                NAVIGATOR HOLDINGS LTD


                              
              
                Condensed Consolidated Statements of Cash Flows


                                                
              
                (Unaudited)






                                                       
              Six Months ended                    
      Six Months ended
                                                                 June 30,                               June 30,
                                                                                       2019                                    2020




                                                        
              (in thousands)



     
                Cash flows from operating activities



     Net loss                                                                   $(10,990 )                               $(4,249)


                   Adjustments to reconcile net income to net cash provided by operating
                    activities


      Unrealized (gain)/loss
       on non-designated
       derivative instruments                                                       (1,645)                                  7,607


      Depreciation and
       amortization                                                                  37,861                                  38,361


      Payment of drydocking
       costs                                                                       (5,160 )                               (2,546 )


      Amortization of share-
       based compensation                                                               747                                     539


      Amortization of
       deferred financing
       costs                                                                          1,473                                   2,251


      Share of result of
       equity accounted joint
       venture                                                                          140                                   3,205


      Unrealized foreign
       exchange loss/(gain)
       on senior secured
       bonds                                                                            952                                 (6,565)


      Other unrealized
       foreign exchange gain                                                           (47)                                 (440 )



     
                Changes in operating assets and liabilities


      Accounts receivable                                                           (3,133)                                    425


      Bunkers and lubricant
       oils                                                                        (1,460 )                                    490


      Accrued income and
       prepaid expenses and
       other current assets                                                         (4,013)                                (9,253)


      Accounts payable,
       accrued interest,
       accrued expenses and
       other liabilities                                                              2,012                                   2,311


      Amounts due to related
       parties                                                                            -                                    600




                   Net cash provided by
                    operating activities                                             16,737                                  32,736







     
                Cash flows from investing activities


      Payments to acquire
       ballast water systems                                                        (1,396)                                (982  )


      Investment in equity
       accounted joint
       venture                                                                    (51,491 )                               (7,500 )


      Purchase of other
       property, plant and
       equipment                                                                      (191)                                  (19 )


      Insurance recoveries                                                              130                                     609




                   Net cash used in
                    investing activities                                           (52,948)                                (7,892)





     
                Cash flows from financing activities


      Proceeds from secured
       term loan facilities
       and revolving credit
       facilities                                                                   127,000                                   7,500


      Issuance costs of
       secured bond                                                                   (136)                                  (141)


      Issuance costs of
       secured term loan
       facilities                                                                   (1,448)                                      -


      Issuance costs of
       refinancing of vessel
       to related parties                                                                 -                                   (18)


      Repayment of financing
       of vessel to related
       parties                                                                            -                                (3,724)


      Issuance costs of
       Terminal Facility                                                            (2,723)                                  (72 )


      Repayment of secured
       term loan facilities
       and revolving credit
       facilities                                                                (110,712 )                               (33,267)




                   Net cash provided/
                    (used in) by financing
                    activities                                                       11,981                                (29,722)




                   Net decrease in cash,
                    cash equivalents and
                    restricted cash                                               (24,230 )                               (4,878 )


                   Cash, cash equivalents
                    and restricted cash at
                    beginning of period                                              71,515                                  66,130




                   Cash, cash equivalents
                    and restricted cash at
                    end of period                                                   $47,285                                 $61,252





     
                Supplemental Information


      Total interest paid
       during the period, net
       of amounts capitalized                                                       $22,776                                 $20,559




      Total tax paid during
       the period                                                                      $165                                    $110

IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto, including our financial forecast. In addition, we and our representatives may from time to time make other oral or written statements that are also forward-looking statements. Such statements include, in particular, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate as described in this press release. In some cases, you can identify the forward-looking statements by the use of words such as "may," "could," "should," "would," "expect," "plan," "anticipate," "intend," "forecast," "believe," "estimate," "predict," "propose," "potential," "continue," "scheduled," or the negative of these terms or other comparable terminology. Forward-looking statements appear in a number of places in this press release. These risks and uncertainties include but are not limited to:

    --  the completion of the Company's quarter-end close procedures and further
        financial review with respect to the Company's financial statements for
        the quarter ended June 30, 2020, and other developments that may arise
        between now and the disclosure of the Company's final results for such
        quarter;
    --  global epidemics or other health crises such as the recent outbreak of
        coronavirus COVID-19, including its impact on our business;
    --  future operating or financial results;
    --  pending acquisitions, business strategy and expected capital spending;
    --  operating expenses, availability of crew, number of off-hire days,
        drydocking requirements and insurance costs;
    --  fluctuations in currencies and interest rates;
    --  general market conditions and shipping market trends, including charter
        rates and factors affecting supply and demand;
    --  our ability to continue to comply with all our debt covenants;
    --  our financial condition and liquidity, including our ability to
        refinance our indebtedness as it matures or obtain additional financing
        in the future to fund capital expenditures, acquisitions and other
        corporate activities;
    --  estimated future capital expenditures needed to preserve our capital
        base;
    --  our expectations about the availability of vessels to purchase, the time
        that it may take to construct new vessels, or the useful lives of our
        vessels;
    --  our continued ability to enter into long-term, fixed-rate time charters
        with our customers;
    --  the availability and cost of low sulfur fuel oil compliant with the
        International Maritime Organization sulfur emission limit reductions,
        generally referred to as "IMO 2020," which took effect January 1, 2020;
    --  our vessels engaging in ship to ship transfers of LPG or petrochemical
        cargoes which may ultimately be discharged in sanctioned areas or to
        sanctioned individuals without our knowledge;
    --  changes in governmental rules and regulations or actions taken by
        regulatory authorities;
    --  potential liability from future litigation;
    --  our expectations relating to the payment of dividends;
    --  our ability to successfully remediate material weaknesses in our
        internal control over financial reporting and our disclosure controls
        and procedures;
    --  our expectation regarding providing in-house technical management for
        certain vessels in our fleet and our success in providing such in-house
        technical management;
    --  our expectations regarding the completion of construction and financing
        of the Marine Export Terminal and the financial success of the Marine
        Export Terminal and our related Export Terminal Joint Venture; and
    --  other factors detailed from time to time in other periodic reports we
        file with the Securities and Exchange Commission.

All forward-looking statements included in this press release are made only as of the date of this press release. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. We expressly disclaim any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in our views or expectations, or otherwise. We make no prediction or statement about the performance of our common stock.

Navigator Gas

Attention: Investor Relations Department - investorrelations@navigatorgas.com

New York: 650 Madison Ave, New York, NY 10022. Tel: +1 212 355 5893

London: 10 Bressenden Place, London, SW1E 5DH. Tel: +44 (0)20 7340 4850

View original content:http://www.prnewswire.com/news-releases/navigator-holdings-ltd-preliminary-second-quarter-2020-results-301112180.html

SOURCE Navigator Gas