6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the Quarter Ended June 30, 2019

Commission File Number 001-36202

NAVIGATOR HOLDINGS LTD.

(Translation of registrant’s name into English)

c/o NGT Services (UK) Ltd

10 Bressenden Place

London, SW1E 5DH

United Kingdom

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F   ☒             Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1).

Yes   ☐            No  ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7).

Yes  ☐            No  ☒

NAVIGATOR HOLDINGS LTD.

REPORT ON FORM 6-K FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2019

INDEX

	PAGE
Management’s Discussion and Analysis of Financial Condition and Results of Operations		3
Quantitative and Qualitative Disclosures About Market Risk		18
Important Information Regarding Forward-Looking Statements		19
Unaudited Condensed Consolidated Financial Statements
Unaudited Condensed Consolidated Balance Sheets as of December 31, 2018 and June 30, 2019		F-1
Unaudited Condensed Consolidated Statements of Income for the Three Months and Six Months ended June 30, 2018 and 2019		F-2
Unaudited Condensed Consolidated Statements of Comprehensive Income for the Three Months and Six Months ended June 30, 2018 and 2019		F-3
Unaudited Condensed Consolidated Statements of Shareholders’ Equity for the Six Months and Three Months ended June 30, 2018 and 2019		F-4
Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months ended June 30, 2018 and 2019		F-5
Notes to Unaudited Condensed Consolidated Financial Statements		F-6
EXHIBITS
SIGNATURES

2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Unless the context otherwise requires, all references in this report to “Navigator Holdings,” “our,” “we,” “us” and the “Company” refer to Navigator Holdings Ltd., a Marshall Islands corporation. All references in this report to our wholly-owned subsidiary “Navigator Gas L.L.C.” refer to Navigator Gas L.L.C., a Marshall Islands limited liability company. As used in this report, unless the context indicates or otherwise requires, references to “our fleet” or “our vessels” refers to the 38 vessels we owned and operated as of June 30, 2019.

This section should be read in conjunction with the interim financial statements and notes thereto presented elsewhere in this report, as well as the audited historical consolidated financial statements and notes thereto of Navigator Holdings Ltd. included in our Annual Report on Form 20-F, filed with the United States Securities and Exchange Commission, or the SEC, on April 1, 2019 (“the 2018 Annual Report”). Among other things, those financial statements include more detailed information regarding the basis of presentation for the following information. The financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, and are presented in U.S. Dollars unless otherwise indicated.

Overview

We are the owner and operator of the world’s largest fleet of handysize liquefied gas carriers. We provide international and regional seaborne transportation services of petrochemical gases, liquified petroleum gas, or “LPG”, and ammonia for energy companies, industrial users and commodity traders. These gases are transported in liquefied form, by applying cooling and/or pressure, to reduce volume by up to 900 times depending on the cargo, making their transportation more efficient and economical. Vessels in our fleet are capable of loading, discharging and carrying cargoes across a range of temperatures from ambient to minus 104° Celsius and pressures from 1 bar to 6.4 bar.

We employ our vessels through a combination of time charters, voyage charters and contracts of affreightment (“COAs”). Our fleet consists of 38 vessels; 33 of these are semi- or fully-refrigerated handysize liquefied gas carriers; four are midsize 37,300 cubic meters, or “cbm”, ethylene/ethane capable semi-refrigerated liquefied gas carriers and one is a 38,000 cbm fully refrigerated liquefied gas carrier. We define handysize liquefied gas carriers as those liquefied gas carriers with capabilities between 15,000 and 24,999 cbm. Our handysize liquefied gas carriers can accommodate medium- and long-haul routes that may be uneconomical for smaller vessels and can call at ports that are unable to support larger vessels due to limited onshore capacity, absence of fully-refrigerated loading infrastructure and/or vessel size restrictions. Our midsize ethylene/ethane-capable semi-refrigerated gas carriers enable long-haul transportation of ethylene/ethane that may be uneconomical for smaller vessels.

In January 2018, we entered into a 50/50 joint venture (the “Export Terminal Joint Venture”) to construct and operate an ethylene export marine terminal at Morgan’s Point, Texas (the “Marine Export Terminal”). Our joint venture partner is the sole managing member of the Export Terminal Joint Venture and it is also the operator of the Marine Export Terminal. Our share of the capital cost for the construction of the Marine Export Terminal is expected to be $155.0 million of which we had contributed $90.5 million to the Export Terminal Joint Venture as of June 30, 2019. On July 9, 2019, we made an additional $12.5 million capital contribution to the Export Terminal Joint Venture.

The Marine Export Terminal is expected to begin initial commercial operations in the fourth quarter of 2019. Refrigerated storage for 30,000 tons of ethylene will also be constructed on-site and will provide the capability to load ethylene at rates of 1,000 tons per hour and is expected to be completed in late 2020. Once completed, it is expected that the Marine Export terminal will have the capacity to export approximately one million tons of ethylene annually.

3

Our Fleet

The following table sets forth our vessels as of November 13, 2019:

Operating Vessel	Year Built		Vessel Size (cbm)		Employment Status		Charter Expiration Date
Ethylene/ethane capable semi-refrigerated
Navigator Orion (formerly known as Navigator Mars)		2000		22,085		Spot market		—
Navigator Neptune		2000		22,085		Time charter		October 2020
Navigator Pluto		2000		22,085		Time charter		January 2020
Navigator Saturn		2000		22,085		Contract of affreightment		April 2020
Navigator Venus		2000		22,085		Time charter		November 2020
Navigator Atlas		2014		21,000		Spot market		—
Navigator Europa		2014		21,000		Spot market		—
Navigator Oberon		2014		21,000		Contract of affreightment		April 2020
Navigator Triton		2015		21,000		Contract of affreightment		April 2020
Navigator Umbrio		2015		21,000		Spot market		—
Navigator Aurora		2016		37,300		Time charter		December 2026
Navigator Eclipse		2016		37,300		Spot market		—
Navigator Nova		2017		37,300		Time charter		January 2020
Navigator Prominence		2017		37,300		Time charter		October 2020
Semi-refrigerated
Navigator Magellan		1998		20,700		Spot market		—
Navigator Aries		2008		20,750		Time charter		April 2020
Navigator Capricorn		2008		20,750		Time charter		March 2020
Navigator Gemini		2009		20,750		Spot market		—
Navigator Pegasus		2009		22,200		Time charter		November 2019
Navigator Phoenix		2009		22,200		Time charter		January 2020
Navigator Scorpio		2009		20,750		Time charter		December 2019
Navigator Taurus		2009		20,750		Time charter		December 2019
Navigator Virgo		2009		20,750		Spot market		—
Navigator Leo		2011		20,600		Time charter		December 2023
Navigator Libra		2012		20,600		Time charter		December 2023
Navigator Centauri		2015		21,000		Time charter		December 2019
Navigator Ceres		2015		21,000		Spot market		—
Navigator Ceto		2016		21,000		Spot market		—
Navigator Copernico		2016		21,000		Time charter		December 2019
Navigator Luga		2017		22,000		Time charter		February 2022
Navigator Yauza		2017		22,000		Time charter		April 2022
Fully-refrigerated
Navigator Glory		2010		22,500		Time charter		May 2021
Navigator Grace		2010		22,500		Time charter		December 2019
Navigator Galaxy		2011		22,500		Time charter		April 2020
Navigator Genesis		2011		22,500		Time charter		June 2020
Navigator Global		2011		22,500		Time charter		November 2020
Navigator Gusto		2011		22,500		Time charter		November 2019
Navigator Jorf		2017		38,000		Time charter		August 2027

4

Recent Developments

Ethylene Marine Export Terminal

On May 8, 2019, a third long term throughput agreement was signed for the Marine Export Terminal, with strong indications of demand for the remaining capacity. Commercial operations continue to be scheduled to begin in the fourth quarter of 2019, with the refrigerated storage tank expected to be completed in late 2020. It is anticipated that the Marine Export Terminal’s throughput capacity during the first year of operation and prior to the cryogenic tank becoming operational will be between 60% to 75% of the total expected capacity of 1.0 million tonnes.

As of June 30, 2019, the Company had contributed $90.5 million of our expected $155.0 million share of the capital cost of the Marine Export Terminal construction from the Company’s available cash resources and the 2018 Bonds. In July 2019 we contributed a further $12.5 million. We are scheduled to contribute an additional $31.0 million this year and to contribute the remaining $21.0 million of our expected share of the capital cost for the construction during 2020.

Appointment of Chief Executive Officer

On June 25, 2019, the Board of Directors (the “Board”) of the Company. appointed Dr. Henry “Harry” Deans as Chief Executive Officer, effective August 22, 2019. David Butters, the Company’s current President and Chief Executive Officer will relinquish that role to Dr. Deans on that date. Mr. Butters will continue as Executive Chairman of the Board. Dr. Deans was appointed a member of the Board in November 2018 and will continue as a member of the Board after the effectiveness of his appointment as Chief Executive Officer.

From 2006 to 2015, Dr. Deans held a series of positions as the chief executive officer of multiple affiliates and directly owned subsidiaries of INEOS Group Holdings S.A., a chemical company. From August 2015 to December 2017, Dr. Deans was the Senior Vice President of Agrium Inc., a fertilizer producer and distributor, prior to its merger with Potash Corporation of Saskatchewan to form Nutrien Ltd., where he served as the Executive Vice President and President of the nitrogen division from January 2018 to May 2018. From August 2015 to December 2017, he also served as a member of the board of directors of Canpotex Potash Export Company. Most recently Dr. Deans was Chief EHS and Operations Officer at Johnson Matthey PLC. Dr. Deans holds a Ph.D. and M.Phil. in chemistry from Strathclyde University as well as a B.Sc. in chemistry from Glasgow University.

Trends and Outlook

The headwinds from the first quarter carried into the second quarter with the global handysize spot market slowly incorporating the six vessels released from the Venezuelan cabotage trade. Such an increase in the supply of ships, especially in a segment with a total of 118 vessels on the water and with more than half trading under time charters, has restricted handysize market rates from increasing alongside other sectors. Continued European chemical plant turnarounds reduced traditional long-haul petrochemical exports to Asia and the import of U.S. ethylene which typically heads trans-Pacific, cutting handysize-ton mile demand.

As the LPG market strengthened, the usually more consistent petrochemical gas market faltered, as a number of unforeseeable elements combined to constrict trade flows. There have been a relatively high number of incidents at major terminals around the world in 2019. Italy, Turkey, the United States Gulf and East Coast, Mexico, Argentina, Malaysia and China have all endured misfortune and setbacks that disrupted product supply, receiving capacity and trade patterns.

In Europe, a larger than average turnaround season to the chemical industry has had both positive and negative effects for the shipping market. The increased demand for propylene in Europe surged, with 85,000 metric tonnes (“mt”) shipped to North West Europe and another 5,000 mt to the West Mediterranean in the second quarter of 2019, a 50% increase on the levels in the first quarter of 2019. This propylene has been mainly shipped on handy-size semi-refrigerated vessels. We have also been shipping to Europe the majority of the ethylene lifted from Houston, with the landed pricing more attractive there than Asia. However, with European petrochemical production greatly diminished, the usual excess of butadiene regularly going to Asia has been limited as the poor arbitrage combined weak supply with lack of demand in Asia. Brazil continues to export healthy volumes of butadiene, propylene and ethylene.

The Very Large Gas Carrier (“VLGC”) segment experienced increased supply of LPG volumes, especially from the U.S., which started to outweigh the supply of vessels. This surplus supply of LPG volumes relative to vessels ushered in a remarkable increase in rates to levels not seen since 2015. As the VLGC market rates rose, the Medium-size Gas Carrier (“MGC”) market, started to see a tightening, with freight rates rising. There is a time-lag for these forces to positively impact the smaller handysize sector which we anticipate will occur later in 2019.

5

The handy-size (17-22,000 cbm) shipping market has seen many challenges during the first six months of 2019. It has not yet seen the improved charter rates that the VLGC sector currently enjoys, but neither has it suffered the lows of the VLGCs from six months ago. With VLGC spot earnings increasing from $1.0 million per calendar month (“pcm”) to $2.1 million pcm over the second quarter and the MGC rates rising from $500,000 pcm to $650,000 pcm over the second quarter, the handy-size market’s short-term overcapacity has certainly contributed to a decrease in our earnings in the second quarter as compared to the first quarter of 2019. However, as fully-refrigerated LPG volumes continue to rise at a steady pace, we expect to see the handy-size segment support this rise with the prospect of moving more vessels into the LPG market from the petrochemical market.

Results of Operations for the Three Months Ended June 30, 2018 Compared to the Three Months Ended June 30, 2019

The following table compares our operating results for the three months ended June 30, 2018 and 2019:

	Three Months Ended June 30, 2018			Three Months Ended June 30, 2019			Percentage Change
	(in thousands, except percentages)
Operating revenue	$	73,163		$	73,586			0.6	%
Operating expenses:
Brokerage commissions		1,219			1,233			1.1	%
Voyage expenses		13,930			16,437			18.0	%
Vessel operating expenses		26,040			27,448			5.4	%
Depreciation and amortization		19,029			18,913			(0.6	%)
General and administrative costs		4,812			5,195			8.0	%
Total operating expenses	$	65,030		$	69,226			6.5	%
Operating income	$	8,133		$	4,360			(46.4	%)
Foreign currency exchange loss on senior secured bonds		—			(768	)		—
Unrealized gain on non-designated derivative instruments		—			861			—
Interest expense		(11,353	)		(12,209	)		7.5	%
Interest income		207			205			(1.0	%)
Loss before taxes and share of result of equity accounted joint venture	$	(3,013	)	$	(7,551	)		150.6	%
Income taxes		(146	)		(81	)		(44.5	%)
Share of result of equity accounted joint venture		—			(101	)		—
Net loss	$	(3,159	)	$	(7,733	)		144.8	%

Operating Revenue. Operating revenue, net of address commission, increased by $0.4 million or 0.6% to $73.6 million for the three months ended June 30, 2019, from $73.2 million for the three months ended June 30, 2018. This increase was principally due to:

• an increase in operating revenue of approximately $2.6 million attributable to an increase in average charter rates, which increased to an average of approximately $606,572 per vessel per calendar month ($19,940 per day) for the three months ended June 30, 2019 compared to an average of approximately $580,673 per vessel per calendar month ($19,089 per day) for the three months ended June 30, 2018;

• a decrease in operating revenue of approximately $3.4 million attributable to a decrease in fleet utilization from 90.3% during the three months ended June 30, 2018 to 85.2% during the three months ended June 30, 2019;

• a decrease in operating revenue of approximately $1.3 million attributable to a decrease in vessel available days of 72 days or 2.6% for the three months ended June 30, 2019 as three vessels were in drydock, compared to the three months ended June 30, 2018 when one vessel was in drydock; and

• an increase in operating revenue of approximately $2.5 million primarily attributable to an increase in pass through voyage costs as the number and duration of voyage charters during the three months ended June 30, 2019 increased, as compared to the three months ended June 30, 2018.

6

The following table presents selected operating data for the three months ended June 30, 2018 and 2019, which we believe are useful in understanding the basis for movement in our operating revenue.

	Three Months Ended June 30, 2018			Three Months Ended June 30, 2019
Fleet Data:
Weighted average number of vessels		38.0			38.0
Ownership days		3,458			3,458
Available days		3,434			3,362
Operating days		3,103			2,866
Fleet utilization		90.3	%		85.2	%
Average daily time charter equivalent rate (*)	$	19,089		$	19,940

* 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 Ended June 30, 2018		Three Months Ended June 30, 2019
	(in thousands, except operating days andaverage daily time charter equivalent rate)
Fleet Data:
Operating revenue	$	73,163	$	73,586
Voyage expenses		13,930		16,437
Operating revenue less Voyage expenses		59,233		57,149
Operating days		3,103		2,866
Average daily time charter equivalent rate	$	19,089	$	19,940

Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 2.5% of operating revenue, increased by 1.1% to $1.2 million for the three months ended June 30, 2019, compared to the three months ended June 30, 2018.

Voyage Expenses. Voyage expenses increased by 18.0% to $16.4 million for the three months ended June 30, 2019, from $13.9 million for the three months ended June 30, 2018. These voyage expenses are pass through costs compensated for with increased revenue for the same amount.

Vessel Operating Expenses. Vessel operating expenses increased by 5.4% to $27.4 million for the three months ended June 30, 2019, from $26.0 million for the three months ended June 30, 2018. Average daily vessel operating expenses increased by $408 per day or 5.4% to $7,938 per vessel per day for the three months ended June 30, 2019, compared to $7,530 per vessel per day for the three months ended June 30, 2018. This was primarily due to increased expenditure on older vessels in the fleet as well as increased expenditure on some of our ethylene/ethane capable vessels; increased expenditure on those vessels entering drydock during the quarter and unplanned operational repairs to two of our vessels.

7

Depreciation and Amortization. Depreciation and amortization decreased by 0.6% to $18.9 million for the three months ended June 30, 2019, from $19.0 million for the three months ended June 30, 2018. Depreciation and amortization includes amortization of capitalized drydocking costs which decreased to $1.8 million for the three months ended June 30, 2019, compared to $2.0 million for the three months ended June 30, 2018. This decrease was primarily due to the cost of drydock undertaken during 2018 being lower than the prior drydock for some of our vessels.

General and Administrative Costs. General and administrative costs increased by 8.0%, or $0.4 million, to $5.2 million for the three months ended June 30, 2019, from $4.8 million for the three months ended June 30, 2018. This increase was primarily due to a release in share compensation expense during the three months ended June 30, 2018.

Non-operating Results

Foreign Currency Exchange Loss on Senior Secured Bonds. The senior secured bonds issued in November 2018 (“2018 Bonds”) are translated from Norwegian Krone to USD at the prevailing rate at June 30, 2019, which resulted in a foreign exchange loss of $0.8 million in the three months to June 30, 2019.

Non-designated Derivative Instruments. The movement in the fair value of the non-designated cross-currency interest rate swap resulted in an unrealized gain of $0.9 million for the three months ended June 30, 2019. The swap was entered in November 2018 as part of the issuance of the 2018 Bonds.

Interest Expense. Interest expense increased by 7.5%, or $0.9 million, to $12.2 million for the three months ended June 30, 2019, from $11.4 million for the three months ended June 30, 2018. The increase was primarily due to interest of $1.7 million on the 2018 Bonds partly offset by capitalized interest of $1.0 million relating to the investment in the Export Terminal Joint Venture. There was no capitalized interest in the three months ended June 30, 2018.

Income Taxes. Income taxes related to taxes on our subsidiaries incorporated in the United Kingdom, Poland and Singapore. Our United Kingdom and Polish subsidiaries earn management and other fees from affiliates, and our Singaporean subsidiary earns interest from loans to our variable interest entity in Indonesia. The main corporate tax rates are 19%, 19% and 17% in the United Kingdom, Poland and Singapore, respectively. For the three months ended June 30, 2019, we had a tax charge of $80,992 compared to taxes of $146,330 for the three months ended June 30, 2018.

Share of result of equity accounted joint venture. The Company’s 50% share of the results of the Export Terminal Joint Venture was a miscellaneous expense of $0.1 million for the three months ended June 30, 2019. There was no charge to the income statement for the three months ended June 30, 2018.

Results of Operations for the Six Months Ended June 30, 2018 Compared to the Six Months Ended June 30, 2019

The following table compares our operating results for the six months ended June 30, 2018 and 2019:

	Six Months Ended June 30, 2018			Six Months Ended June 30, 2019			Percentage Change
	(in thousands, except percentages)
Operating revenue	$	150,970		$	149,689			(0.8	%)
Operating expenses:
Brokerage commissions		2,360			2,542			7.7	%
Voyage expenses		28,908			29,794			3.1	%
Vessel operating expenses		52,751			56,922			7.9	%
Depreciation and amortization		38,410			37,861			(1.4	%)
General and administrative costs		9,258			9,997			8.0	%
Total operating expenses	$	131,687		$	137,116			4.1	%
Operating income	$	19,283		$	12,573			(34.8	%)
Foreign currency exchange loss on senior secured bonds		—			(952	)		—
Unrealized gain on non-designated derivative instruments		—			1,645			—
Interest expense		(21,877	)		(24,362	)		11.4	%
Interest income		359			420			17.0	%
Loss before income taxes and share of result of equity accounted joint venture	$	(2,235	)	$	(10,676	)		377.7	%
Income taxes		(228	)		(174	)		(23.7	%)
Share of result of equity accounted joint venture		—			(140	)		—
Net loss	$	(2,463	)	$	(10,990	)		346.2	%

8

Operating Revenue. Operating revenue, net of address commission, decreased by $1.3 million or 0.8% to $149.7 million for the six months ended June 30, 2019, from $151.0 million for the six months ended June 30, 2018. This decrease was principally due to:

• a decrease in operating revenue of approximately $8.5 million attributable to a decrease in fleet utilization from 91.0% during the six months ended June 30, 2018 to 85.0% during the six months ended June 30, 2019;

• a decrease in operating revenue of approximately $1.2 million attributable to a decrease in vessel available days by 66 days or 1.0%, as four vessels were in drydock for the six months ended June 30, 2019, as compared to the six months ended June 31, 2018, when three vessels were in drydock;

• an increase in operating revenue of approximately $7.5 million attributable to an increase in average charter rates, which increased to an average of approximately $634,622 per vessel per calendar month ($20,864 per day) for the six months ended June 30, 2019 compared to an average of approximately $597,419 per vessel per calendar month ($19,641 per day) for the six months ended June 30, 2018; and

• an increase in operating revenue of approximately $0.9 million primarily attributable to an increase in pass through voyage costs as the number and duration of voyage charters during the six months ended June 30, 2019 increased, as compared to the six months ended June 30, 2018.

The following table presents selected operating data for the six months ended June 30, 2018 and 2019, which we believe are useful in understanding the basis for movement in our operating revenue.

	Six Months Ended June 30, 2018			Six Months Ended June 30, 2019
Fleet Data:
Weighted average number of vessels		38.0			38.0
Ownership days		6,878			6,878
Available days		6,827			6,761
Operating days		6,215			5,746
Fleet utilization		91.0	%		85.0	%
Average daily time charter equivalent rate (*)	$	19,641		$	20,864

* 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.

9

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 Ended June 30, 2018		Six Months Ended June 30, 2019
	(in thousands, except operating days and average daily time charter equivalent rate)
Fleet Data:
Operating revenue	$	150,970	$	149,689
Voyage expenses		28,908		29,794
Operating revenue less Voyage expenses		122,062		119,895
Operating days		6,215		5,746
Average daily time charter equivalent rate	$	19,641	$	20,864

Brokerage Commissions. Brokerage commissions, which typically vary between 1.25% and 5% of operating revenue, increased to $2.5 million for the six months ended June 30, 2019, from $2.4 million for the six months ended June 30, 2018.

Voyage Expenses. Voyage expenses increased by 3.1% or $0.9 million to $29.8 million for the six months ended June 30, 2019, from $28.9 million for the six months ended June 30, 2018. These voyage costs are pass through costs compensated for with increased revenue for the same amount.

Vessel Operating Expenses. Vessel operating expenses increased by $4.1 million or 7.9% to $56.9 million for the six months ended June 30, 2019, from $52.8 million for the six months ended June 30, 2018. Average daily vessel operating expenses increased by $607 per day or 7.9% to $8,276 per vessel per day for the six months ended June 30, 2019, compared to $7,669 per vessel per day for the six months ended June 30, 2018. This was primarily due to increased expenditure on older vessels in the fleet as well as increased expenditure on some of our ethylene/ethane capable vessels; increased expenditure on the vessels entering drydock during the first six months of the year and a number of unplanned operational repairs to three of our vessels.

Depreciation and Amortization. Depreciation and amortization decreased by 1.4% to $37.9 million for the six months ended June 30, 2019, from $38.4 million for the six months ended June 30, 2018. Depreciation and amortization includes amortization of capitalized drydocking costs which reduced to $3.7 million for the six months ended June 30, 2019, compared to $4.3 million for the six months ended June 30, 2018. This decrease was primarily due to the cost of drydock undertaken during 2018 being lower than the prior drydock for some of our vessels.

General and Administrative Costs. General and administrative costs increased by 8.0%, or $0.7 million, to $10.0 million for the six months ended June 30, 2019, from $9.3 million for the six months ended June 30, 2018. This increase was primarily due to a release in share compensation expense during the six months ended June 30, 2018 as well as increased expenditure on general advisory fees.

Non-operating Results

Foreign Currency Exchange Loss on Senior Secured Bonds. The 2018 Bonds are translated from Norwegian Krone to USD at the prevailing rate at June 30, 2019, which resulted in a foreign exchange loss of $1.0 million in the six months ended June 30, 2019.

Non-designated Derivative Instruments. The movement in the fair value of the non-designated cross-currency interest rate swap resulted in an unrealized gain of $1.6 million for the six months ended June 30, 2019. The swap was entered in November 2018 as part of the issuance of the 2018 Bonds.

Interest Expense. Interest expense increased by 11.4%, or $2.5 million, to $24.4 million for the six months ended June 30, 2019, from $21.9 million for the six months ended June 30, 2018. The increase was primarily due to interest on the 2018 Bonds of $3.4 million and increased interest on our secured term loan and revolving credit facilities of $0.6 million partly offset by capitalized interest relating to the investment in the Export Terminal Joint Venture of $1.9 million for the six months ended June 30, 2019. There was no interest capitalized for the six months ended June 30, 2018. The calculation of the interest on our secured term loan and revolving credit facilities is based in part on U.S. 3-month LIBOR which has fallen from its peak by approximately 45 basis points during the first six months of 2019.

Income Taxes. Income taxes related to taxes on our subsidiaries incorporated in the United Kingdom, Poland and Singapore. Our United Kingdom and Polish subsidiaries earn management and other fees from affiliates, and our Singaporean subsidiary earns interest from loans to our variable interest entity in Indonesia. The main corporate tax rates are 19%, 19% and 17% in the United Kingdom, Poland and Singapore, respectively. For the six months ended June 30, 2019, we had a tax charge of $174,346, compared to taxes of $228,496 for the six months ended June 30, 2018.

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Share of result of equity accounted joint venture. The Company’s 50% share of the results of the Export Terminal Joint Venture was an expense of $0.14 million for the six months ended June 30, 2019. There was no charge to the income statement for the six months ended June 30, 2018.

Liquidity and Capital Resources

Liquidity and Cash Needs

Our primary sources of funds are cash and cash equivalents, cash from operations, undrawn bank borrowings and proceeds from bond issuances. As of June 30, 2019, we had cash and cash equivalents of $47.3 million along with $36.0 million available under the March 2019 Terminal Credit Facility to be used solely to pay capital contributions to the Export Terminal Joint Venture and $35.0 million available borrowing capacity under our secured term loan and revolving credit facilities. In compliance with our bank facilities we are required to maintain a cash balance at the greater of $35.0 million or 5% of debt, which as of June 30, 2019 equated to $43.2 million. We anticipate that the Company’s cash from operations, with particular attention made to the current and future vessel employment profile, undrawn bank borrowings and proceeds from bond issuances will be sufficient to meet our liquidity needs for at least the next twelve months.

Our primary uses of funds are capital contributions for the investment in the Export Terminal Joint Venture, drydocking expenditures, voyage expenses, vessel operating expenses, general and administrative costs, expenditures incurred in connection with ensuring that our vessels comply with international and regulatory standards, financing expenses and repayments of bank loans. In addition to operating expenses, our medium-term and long-term liquidity needs relate to debt repayments, potential future newbuildings or acquisitions and the development of the Marine Export Terminal in our Export Terminal Joint Venture. We are required to maintain certain minimum liquidity amounts in order to comply with our various debt instruments. Please see “—Secured Term Loan Facilities and Revolving Credit Facilities” and “2017 Senior Unsecured Bonds” and “2018 Senior Secured Bonds” below.

As of June 30, 2019, our total current liabilities exceeded our total current assets by $2.0 million. This net current liability is primarily due to a lower cash balance as a result of losses incurred during the six months ended June 30, 2019, as well as capital contributions we made to our Export Terminal Joint Venture to fund a portion of our remaining share of the capital cost for the construction of the Marine Export Terminal. As of June 30, 2019, we had $36.0 million available under the March 2019 Terminal Credit Facility to be used solely to pay capital contributions relating to the Marine Export Terminal, as well as an aggregate of $35.0 million available borrowing capacity under one of our revolving credit facilities, which, in addition to cash generated from operations, we expect will cover this net current liability shortfall of $2.0 million.

As of June 30, 2019, we had contributed to the Export Terminal Joint Venture $90.5 million of our expected $155.0 million share of the capital cost for the construction of the Marine Export Terminal. On July 9, 2019, we made an additional $12.5 million in capital contributions to our Export Terminal Joint Venture. We are scheduled to contribute an additional $32.5 million this year and to contribute the remaining $19.5 million of our expected share of the capital cost for the construction during 2020. 

On October 21, 2019, the Company entered into a sale and leaseback to refinance one of its vessels, the Navigator Aurora. The sale price agreed was $77.5 million, with the buyer paying 90% of the vessel’s value, or $69.75 million and a seller’s credit representing the remaining 10%. From the proceeds, $44.5 million was used to repay the vessel’s secured tranche of the December 2015 secured term loan facility with the remaining $25.25 million available for corporate purposes.

Capital Expenditures

Liquefied gas transportation is a capital-intensive business, requiring significant investment to maintain an efficient fleet and to stay in regulatory compliance.

We currently have no newbuildings on order. However, we may place newbuilding orders or acquire additional vessels as part of our growth strategy.

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Cash Flows

The following table summarizes our cash and cash equivalents provided by (used in) operating, financing and investing activities for the six months ended June 30, 2018 and 2019:

	Six Months Ended June 30, 2018			Six Months Ended June 30, 2019
	(in thousands)
Net cash provided by operating activities	$	43,146		$	16,737
Net cash used in investing activities		(10,346	)		(52,948	)
Net cash (used in)/ provided by financing activities		(39,813	)		11,981
Net decrease in cash, cash equivalents and restricted cash		(7,013	)		(24,230	)

Operating Cash Flows. Net cash provided by operating activities for the six months ended June 30, 2019 decreased to $16.7 million, from $43.1 million for the six months ended June 30, 2018, a decrease of 61.2% or $26.4 million. This decrease was primarily due to changes in working capital movements and reduced net income for the six months ended June 30, 2019.

Net cash flow from operating activities depends upon the size of our fleet, charter rates attainable, fleet utilization, fluctuations in working capital balances, repairs and maintenance activity, changes in interest rates and foreign currency rates.

We are required to drydock each vessel once every five years until it reaches 15 years of age, after which we are required to drydock the applicable vessel every two and one-half to three years. Drydocking each vessel takes approximately 20-30 days. Drydocking days generally include approximately 5-10 days of travel time to and from the drydocking shipyard and approximately 15-20 days of actual drydocking time. Four of our vessels were drydocked during the six months ended June 30, 2019, with six further vessels scheduled for drydocking for the remainder of 2019.

We spend significant amounts of funds for scheduled drydocking (including the cost of classification society surveys) of each of our vessels. As our vessels age and our fleet expands, our drydocking expenses will increase. We estimate the current cost of the five-year drydocking of one of our vessels is approximately $0.8 million, the ten-year drydocking cost is approximately $1.2 million, and the 15 year and 17 year drydocking costs are approximately $1.5 million each. Ongoing costs for compliance with environmental regulations are primarily included as part of our drydocking, such as the classification society survey costs, with a balance included as a component of our operating expenses.

Investing Cash Flows. Net cash used in investing activities of $52.9 million for the six months ended June 30, 2019 primarily consisted of our investment in our Export Terminal Joint Venture of $51.5 million, which includes capitalized interest of $1.9 million as well as $1.4 million in ballast water treatment systems which are being retrofitted on our vessels during drydock to comply with the requirements of the Ballast Water Management Convention.

Net cash used in investing activities of $10.3 million for the six months ended June 30, 2018 primarily consisted of our investment in the Export Terminal Joint Venture of $10.0 million and associated costs of $0.5 million, partially offset by insurance recoveries on an existing damage claim of $0.3 million.

Financing Cash Flows. Net cash provided by financing activities of $12.0 million for the six months ended June 30, 2019, relates to the drawing down of $107.0 million on the March 2019 Secured Term Loan and $20.0 million from the October 2016 secured term loan and revolving credit facility, partially offset by a repayment of the January 2015 secured term loan of $75.6 million, $35.1 million relating to regular quarterly loan repayments and issuance costs for each of the March 2019 Secured Term Loan;, Terminal Credit Facility and 2018 Bonds totaling $4.3 million.

Net cash used in financing activities of $39.8 million for the six months ended June 30, 2018 relates to regular quarterly loan repayments of $43.6 million, partially offset by proceeds from drawing down from the June 2017 secured term loan and revolving credit facility of $3.8 million which was used for general corporate purposes.

Terminal Credit Facility

General. On March 29, 2019, Navigator Ethylene Terminals LLC (“Marine Terminal Borrower”), our wholly-owned subsidiary, entered into a Credit Agreement (the “Terminal Facility”) with ING Capital LLC and SG Americas Securities, LLC for a maximum principal amount of $75.0 million, to be used solely for the payment of project costs relating to our Marine Export Terminal, as summarized in the table below. For additional information regarding the Terminal Facility, please read “Item 5—Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Terminal Facility” in our 2018 Annual Report.

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The table below summarizes the Terminal Facility as of June 30, 2019:

Facility agreement date

Original Facility amount

Principal Amount outstanding

Amounts available for drawdown at June 30, 2019

Interest rate

Loan Maturity date

(in millions)

March 2019

$

75.0

—

36.0

*

US LIBOR + 250 to 300 BPS

December 2025

**

* Initial borrowing under the Terminal Facility may only occur after the Marine Terminal Borrower has made equity contributions required under the Terminal Facility to the Export Terminal Joint Venture, which together with available borrowings under the Terminal Facility, will fund its entire portion of the capital cost for the construction of the Marine Export Terminal.

** The Terminal Facility is comprised of an initial construction loan, followed by a term loan with a final maturity occurring on the earlier of (i) five years from completion of the Marine Export Terminal and (ii) December 31, 2025.

As of June 30, 2019, based on the existing committed throughput for the Marine Export Terminal and subject to the satisfaction of certain conditions to the ability to borrow under the Terminal Facility, $36.0 million would have been available to be drawn down under this Credit Agreement. Available amounts are expected to increase as additional throughput agreements are committed.

Fees and Interest. The loans are subject to quarterly repayments of principal and interest beginning three months after the completion of the Marine Export Terminal. Interest on amounts drawn is payable at a rate of U.S. LIBOR plus 250 to 300 basis points per annum over the term of the facility, for interest periods of three or six months

Prepayments/Repayments. The Marine Terminal Borrower must make mandatory prepayments of indebtedness upon specified amounts of excess cash flow, the receipt of performance liquidated damages pursuant to certain material contracts related to the Marine Export Terminal, the receipt of proceeds in connection with an event of loss (as defined in the Terminal Facility), the receipt of proceeds in connection with termination payments (as defined in the Terminal Facility), the receipt of proceeds in connection with certain dispositions by the Marine Terminal Joint Venture, the incurrence of certain specified indebtedness, the inability to meet the conditions for paying a dividend for four or more consecutive quarters, dispositions of the Marine Terminal Borrower’s equity interests in the Marine Terminal Joint Venture, the receipt of indemnity payments in excess of $500,000 and certain amounts of any loans outstanding upon the conversion date.

Financial Covenants. Under the Terminal Facility, the Marine Terminal Borrower must maintain a minimum debt service coverage ratio (as defined in the Terminal Facility) for the prior four calendar fiscal quarters (or shorter period of time if data for the prior four fiscal quarters is not available) of no less than 1.10 to 1.00 from the beginning of the second full fiscal quarter of the term loan.

Restrictive Covenants . Following completion of the Marine Export Terminal, the Marine Terminal Borrower can only pay dividends if the Marine Terminal Borrower satisfies certain customary conditions to paying a dividend, including maintaining a debt service coverage ratio for the immediately preceding four consecutive fiscal quarters and the projected immediately succeeding four consecutive fiscal quarters of not less than 1.20 to 1.00 and no default or event of default has occurred or is continuing. The Terminal Facility also limits the Marine Terminal Borrower from, among other things, incurring indebtedness or entering into mergers and divestitures. The Terminal Facility also contains general covenants that will require the Marine Terminal Borrower to vote its interest in the Marine Terminal Joint Venture to cause the Marine Terminal Joint Venture to maintain adequate insurance coverage, complete the Marine Export Terminal and maintain its property (but only to the extent the Marine Terminal Borrower has the power under the organizational documents of the Marine Terminal Joint Venture to so cause such actions).

The Terminal Facility includes events of default for the failure to achieve the completion of the Marine Export Terminal by December 31, 2020, the abandonment of all or substantially all activities relating to the Marine Export Terminal for 90 consecutive days and if certain material contracts relating to the Marine Export Terminal are terminated, as well as customary events of default including those relating to a failure to pay principal or interest, a breach of covenant, representation or warranty, a cross-default to other indebtedness and non-compliance with security documents.

Security . The loans under the Terminal Facility are secured by first priority liens on the rights to the Marine Terminal Borrower’s distributions from the Marine Terminal Joint Venture, the Marine Terminal Borrower’s assets and properties and the company’s equity interests in the Marine Terminal Borrower.

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Secured Term Loan Facilities and Revolving Credit Facilities

General. Navigator Gas L.L.C., our wholly-owned subsidiary, and certain of our vessel-owning subsidiaries have entered into various secured term loan facilities and revolving credit facilities as summarized in the table below. For additional information regarding our secured term loan facilities and revolving credit facilities, please read “Item 5—Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Secured Term Loan Facilities and Revolving Credit Facilities” in our 2018 Annual Report.

The table below summarizes our secured term loan and revolving credit facilities as of June 30, 2019:

Facility agreement date	Original Facility amount		Principal Amount outstanding		Available amounts undrawn at June 30, 2019		Interest rate		Loan Maturity date
	(in millions)
January 2015*		278.0		117.0		—		US LIBOR + 270 BPS	March 2022 - 2023
December 2015		290.0		238.4		—		US LIBOR + 210 BPS	December 2022
October 2016**		220.0		104.1		35.0		US LIBOR + 260 BPS	November 2023
June 2017		160.8		127.8		—		US LIBOR + 230 BPS	June 2023
March 2019***		107.0		104.7		—		US LIBOR + 240 BPS	March 2025
Total	$	1,055.8	$	692.0	$	35.0

* The January 2015 facility tranches mature over a range of dates, from March 2022 to April 2023.

** On July 9, 2019 we drew down $12.5 million under the October 2016 Secured Term Loan and Revolving Credit Facility in order to finance a $12.5 million capital contribution to the Export Terminal Joint Venture.

March 2019 Secured Term Loan***

General. On March 25, 2019 the Company entered into a secured term loan with Credit Agricole Corporate and Investment Bank, ING Bank, a branch of ING-DIBA AG and Skandinaviska Enskilda Banken AB (Publ.) for a maximum principal amount of $107.0 million (the “March 2019 Secured Term Loan”), to partially re-finance our January 2015 secured term loan facility that were due to mature from June 2020. The full amount of $107.0 million was drawn on March 28, 2019. The repayment of the term loan secured by four vessels was $75.6 million, leaving net proceeds of $31.4 million for general corporate purposes. The facility has a term of six years from the date of the agreement and expires in March 2025. Under this agreement, the aggregate fair market value of the collateral vessels must be no less than 130% of the aggregate outstanding borrowing under the facility. Interest on amounts drawn is payable at a rate of U.S. LIBOR plus 240 basis points per annum.

On June 29, 2018 the Company obtained approval to amend one of the covenants in each of its secured term loan and revolving credit facilities. The covenant, requiring the ratio of Earnings before Interest, Tax, Depreciation and Amortization (“EBITDA”) to be at least two and a half times or three times interest has been amended to a requirement of two times interest, up to and including September 30, 2020, before then reverting back to the original requirements of two and a half times or three times interest, dependent upon the facility. In addition, the definition of interest under these facilities now excludes interest due or payable relating to debt financing obtained by the Company in relation to its obligations associated with the construction of the Marine Export Terminal. Under the terms of these amendments, dividends may not be declared or paid by the Company until on or after December 31, 2020.

The borrowers are also required to deliver semi-annual compliance certificates, which include valuations of the vessels securing the applicable facility from an independent ship broker. Upon delivery of the valuation, if the market value of the collateral vessels is less than 135% of the outstanding indebtedness under the January 2015 facility, 130% of the outstanding indebtedness under the March 2019 facility or 125% of the outstanding indebtedness under the other facilities, the borrowers must either provide additional collateral or repay any amount in excess of 135% or 125% of the market value of the collateral vessels, as applicable. This covenant is measured semi-annually on June 30 and December 31. As of June 30, 2019, we had an aggregate excess of $345.1 million above the levels required by these covenants, in addition to four additional vessels that are unsecured.

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Financial Covenants . The secured term loan facilities and revolving credit facilities contain financial covenants requiring the borrowers, among other things, to ensure that:

• the borrowers have liquidity (including undrawn available lines of credit with a maturity exceeding 12 months) of no less than (i) $25.0 million or $35.0 million, or (ii) 5% of Net Debt or total debt, as applicable, whichever is greater;

• the ratio of EBITDA to Interest Expense (each as defined in the applicable secured term loan facility and revolving credit facility or as amended), on a trailing four quarter basis, is no less than 2.00 to 1.00, until September 30, 2020 and no less than 2.50 to 1.00 or 3.00 to 1.00 thereafter; and

• the borrower must maintain a minimum ratio of shareholder equity to total assets of 30%;

Restrictive Covenants . The secured facilities provide that the borrowers may not declare or pay dividends to shareholders out of operating revenues generated by the vessels securing the indebtedness until December 31, 2020 or thereafter, if an event of default has occurred or is continuing. The secured term loan facilities and revolving credit facilities also limit the borrowers from, among other things, incurring indebtedness or entering into mergers and divestitures. The secured facilities also contain general covenants that will require the borrowers to maintain adequate insurance coverage and to maintain their vessels. In addition, the secured term loan facilities include customary events of default, including those relating to a failure to pay principal or interest, a breach of covenant, representation and warranty, a cross-default to other indebtedness and non-compliance with security documents.

Our compliance with the financial covenants listed above is measured as of the end of each fiscal quarter. As of June 30, 2019, we were in compliance with all covenants under the secured term loan facilities and revolving credit facilities.

2017 Senior Unsecured Bonds

General. On February 10, 2017, we issued senior unsecured bonds in an aggregate principal amount of $100.0 million with Nordic Trustee AS as the bond trustee (the “2017 Bonds”). The net proceeds of the issuance of the 2017 Bonds, together with cash on hand, were used to redeem in full all of our outstanding 2012 Bonds. The bond agreement governing the 2017 Bonds (the “2017 Bond Agreement”) has the option to issue additional bonds up to maximum issue amount of a further $100.0 million, at identical terms as the original bond issue, except that additional bonds may be issued at a different price. The 2017 Bonds are governed by Norwegian law and listed on the Nordic ABM which is operated and organized by Oslo Børs ASA. Please read Note 8 (Senior Unsecured Bond) to the unaudited condensed consolidated financial statements.

Interest. Interest on the 2017 Bonds is payable at a fixed rate of 7.75% per annum, calculated on a 360-day year basis. Interest is payable semi-annually on August 10 and February 10 of each year.

Maturity. The 2017 Bonds mature in full on February 10, 2021.

Optional Redemption. We may redeem the 2017 Bonds, in whole or in part, at any time. Any 2017 Bonds redeemed; up until February 10, 2020, are redeemable at 103.875% of par, from February 11, 2020 to August 10, 2020, are redeemable at 101.9375% of par, and from August 11, 2020 to the maturity date are redeemable at 100% of par, in each case, in cash plus accrued interest.

Additionally, upon the occurrence of a “Change of Control Event” (as defined in the 2017 Bond Agreement), the holders of 2017 Bonds have an option to require us to repay such holders’ outstanding principal amount of 2017 Bonds at 101% of par, plus accrued interest.

Financial Covenants. The 2017 Bond Agreement contains financial covenants requiring us, among other things, to ensure that:

• we and our subsidiaries maintain a minimum liquidity of no less than $25.0 million;

• we and our subsidiaries maintain an Interest Coverage Ratio (as defined in the 2017 Bond Agreement) of not less than 2.25 to 1.0; and

• we and our subsidiaries maintain an Equity Ratio (as defined in the 2017 Bond Agreement) of at least 30%.

Our compliance with the covenants listed above is measured as of the end of each fiscal quarter. As of June 30, 2019, we were in compliance with all covenants under the 2017 Bonds.

Restrictive Covenants. The 2017 Bond Agreement provides that we may declare dividends so long as such dividends do not exceed 50% of our cumulative consolidated net profits after taxes since June 30, 2016. The 2017 Bond Agreement also limits us and our subsidiaries from, among other things, entering into mergers and divestitures, engaging in transactions with affiliates or incurring any additional liens which would have a material adverse effect. In addition, the 2017 Bond Agreement includes customary events of default, including those relating to a failure to pay principal or interest, a breach of covenant, false representation and warranty, a cross-default to other indebtedness, the occurrence of a material adverse effect, or our insolvency or dissolution.

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2018 Senior Secured Bonds

General. On November 2, 2018, we issued senior secured bonds in an aggregate principal amount of 600 million Norwegian Kroner (“NOK”) (approximately $71.7 million) with Nordic Trustee AS, as bond trustee and security agent (the “2018 Bonds”). The net proceeds are being used to partially finance our portion of the capital cost for the construction of the Marine Export Terminal. The 2018 Bonds are governed by Norwegian law and are listed on the Nordic ABM which is operated and organized by Oslo Børs ASA. Please read Note 7 (Senior Secured Bond) to the unaudited condensed consolidated financial statements.

Security. The 2018 Bonds are secured by four of the Company’s ethylene vessels.

Interest. Interest on the 2018 Bonds is payable quarterly at a rate equal to the 3-month NIBOR plus 6.0% per annum, calculated on a 360-day year basis. We have entered into a cross-currency interest rate swap agreement whereby interest is payable at a rate equal to the 3-month LIBOR plus 6.608% throughout the life of the bond. Please read Note 9 (Derivative Instruments Accounted for at Fair Value) to the unaudited condensed consolidated financial statements.

Maturity. The 2018 Bonds will mature in full on November 2, 2023.

Optional Redemption. We may redeem the 2018 Bonds, in whole or in part, at any time beginning on or after November 2, 2021. Any 2018 Bonds redeemed from November 2, 2021 until November 1, 2022, are redeemable at 102.4% of par, from November 2, 2022 until May 1, 2023, are redeemable at 101.5% of par, and from May 2, 2023 to the maturity date are redeemable at 100% of par, in each case, in cash plus accrued interest.

Additionally, upon the occurrence of a “Change of Control Event” (as defined in the bond agreement governing the 2018 Bonds (the “2018 Bond Agreement”)), the holders of 2018 Bonds have an option to require us to repay such holders’ outstanding principal amount of 2018 Bonds at 101% of par, plus accrued interest.

Financial Covenants. The 2018 Bond Agreement contains financial covenants requiring us, among other things, to ensure that:

• we and our subsidiaries maintain a minimum liquidity of no less than $25.0 million; and

• we and our subsidiaries maintain an Equity Ratio of at least 30%.

As of June 30, 2019, we were in compliance with all covenants under the 2018 Bonds.

Restrictive Covenants. The 2018 Bond Agreement provides that we may declare dividends from January 1, 2020, payable at the earliest from January 1, 2021, so long as such dividends do not exceed 50% of our cumulative consolidated net profits after taxes since January 1, 2020. The 2018 Bond Agreement also limits us and our subsidiaries from, among other things, entering into mergers and divestitures, engaging in transactions with affiliates or incurring any additional liens which would have a material adverse effect. In addition, the 2018 Bond Agreement includes customary events of default, including those relating to a failure to pay principal or interest, a breach of covenant, false representation and warranty, a cross-default to other indebtedness, the occurrence of a material adverse effect, or our insolvency or dissolution.

Tabular Disclosure of Contractual Obligations

The contractual obligations schedule set forth below summarizes our contractual obligations as of June 30, 2019.

	Remainder of 2019		2020		2021		2022		2023		Thereafter		Total
			(in thousands)
Marine Export Terminal capital contributions*		45,000		19,500		—		—		—		—		64,500
Secured term loan facilities and revolving credit facilities		34,875		69,750		69,750		311,611		142,503		63,537		692,026
2017 Bonds		—		—		100,000		—		—		—		100,000
2018 Bonds**		—		—		—		—		71,697		—		71,697
Office operating leases		745		1,276		1,124		93		—		—		3,238
Total contractual obligations	$	80,620	$	90,526	$	170,874	$	311,704	$	214,200	$	63,537	$	931,461

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* On July 9, 2019, the Company made a capital contribution of $12.5 million, reducing the expected remaining contributions for 2019 from $45.0 million to $32.5 million for our portion of the capital cost for the construction of the Marine Export Terminal.

** The Company has NOK 600 million of 2018 Bonds that mature in 2023 issued in the Norwegian Bond market (see Note 7 (Senior Secured Bond) to the unaudited condensed consolidated financial statements). The Company has entered into a cross-currency interest rate swap agreement, to swap all interest and principal payments of the 2018 Bonds into U.S. Dollars, with the interest payments at 6.608% plus 3-month U.S. LIBOR and the transfer of the principal amount fixed at $71.7 million upon maturity in exchange for NOK 600 million (see Note 9 (Derivative Instruments Accounted for at Fair Value) to the unaudited condensed consolidated financial statements).

As part of our growth strategy, we will continue to consider strategic opportunities, including the acquisition of additional vessels. We may choose to pursue such opportunities through internal growth or joint ventures or business acquisitions. We intend to finance any future acquisitions through various sources of capital, including credit facilities, debt borrowings and the issuance of additional shares of common stock.

Critical Accounting Estimates

We prepare our consolidated financial statements in accordance with U.S. GAAP, which requires us to make estimates in the application of our accounting policies based on our best assumptions, judgments and opinions. On a regular basis, management reviews the accounting policies, assumptions, estimates and judgments to ensure that our consolidated financial statements are presented fairly and in accordance with U.S. GAAP. However, because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material. For a description of our material accounting policies, please read Note 2 (Summary of Significant Accounting Policies) to our audited historical consolidated financial statements included in our 2018 Annual Report.

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Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risk from changes in interest rates and foreign currency fluctuations, as well as inflation. We use interest rate swaps to manage interest rate risks but will not use these financial instruments for trading or speculative purposes.

Interest Rate Risk

The Company and certain of our vessel-owning subsidiaries are parties to secured term loan facilities and revolving credit facilities that bear interest at an interest rate of US LIBOR plus 210 to 270 basis points. A variation in LIBOR of 100 basis points would result in a variation of $6.9 million in annual interest paid on our indebtedness outstanding as at June 30, 2019, under the secured term loan facilities and revolving credit facilities.

On November 2, 2018, we issued senior secured bonds in an aggregate amount of NOK 600 million. We have entered into a cross currency interest rate swap to mitigate the risk of certain interest rate movements during the five-year tenor of these bonds which mature on November 2, 2023. Please read Note 7 (Senior Secured Bond) and Note 9 (Derivative Instruments Accounted for at Fair Value) to the unaudited condensed consolidated financial statements. A variation in LIBOR of 100 basis points would result in a variation of $0.7 million in annual interest paid on the 2018 Bonds.

Foreign Currency Exchange Rate Risk

Our primary economic environment is the international shipping market. This market utilizes the U.S. Dollar as its functional currency. Consequently, virtually all of our revenues are in U.S. Dollars. Our expenses, however, are in the currency invoiced by each supplier and we remit funds in the various currencies invoiced. We incur some vessel operating expenses and general and administrative costs in foreign currencies, primarily the Euro, Pound Sterling and Polish Zloty; and there is a risk that currency fluctuations could have an adverse effect on the value of our cash flows. We believe that any adverse effect on these costs would not be material and we have not entered into any derivative contracts to mitigate our exposure to foreign currency exchange rate risk.

We have entered into a cross currency interest rate swap to mitigate the risk of currency movements for interest payments during the five-year tenor of the 2018 Bonds and for the principal repayment at maturity in November 2023. Please read Note 9 (Derivative Instruments Accounted for at Fair Value) to the unaudited condensed consolidated financial statements

Inflation

Certain of our operating expenses, including crewing, insurance and drydocking costs, are subject to fluctuations as a result of market forces. Increases in bunker costs could have a material effect on our future operations if the number and duration of our voyage charters or COAs increases. In the case of the 38 vessels owned as of June 30, 2019, 21 were employed on time charter and as such it is the charterers who pay for the fuel on those vessels. If our vessels are employed under voyage charters or COAs, freight rates are generally sensitive to the price of fuel. However, a sharp rise in bunker prices may have a temporary negative effect on our results since freight rates generally adjust only after prices settle at a higher level.

Credit Risk

We may be exposed to credit risks in relation to vessel employment and at times may have multiple vessels employed by one charterer. We consider and evaluate concentration of credit risk continuously and perform ongoing evaluations of these charterers for credit risk. At June 30, 2019, no more than four of our vessels were employed by the same charterer.

We invest our surplus funds with reputable financial institutions, with original maturities of no more than six months, in order to provide the Company with flexibility to meet all requirements for working capital and for capital investments.

18

IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

This Report on Form 6-K for the quarter ended June 30, 2019 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 report. 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 report. These risks and uncertainties include, but are not limited to:

• 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 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;

• changes in governmental rules and regulations or actions taken by regulatory authorities;

• 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. Three of our vessels were named in a recent U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”) Advisory to the Maritime Petroleum Shipping Community as ships that had engaged in such ship to ship transfers of cargoes that may have ultimately been destined for Syria;

• potential liability from future litigation;

• our expectations relating to the payment of dividends;

• 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 construction and financing of the Marine Export Terminal, the financing of our investment in the Marine Export Terminal and the financial success of the Marine Export Terminal and our related 50/50 joint venture with Enterprise Products Partners L.P.; 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 Report on Form 6-K are made only as of the date of this report. 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.

19

NAVIGATOR HOLDINGS LTD.

Condensed Consolidated Balance Sheets

(Unaudited)

	December 31, 2018			June 30, 2019
	(in thousands, except share data)
Assets
Current assets
Cash and cash equivalents	$	71,515		$	47,285
Accounts receivable, net		17,033			20,166
Accrued income		4,731			1,859
Prepaid expenses and other current assets		16,057			25,433
Bunkers and lubricant oils		8,789			10,249
Total current assets		118,125			104,992
Non-current assets
Vessels, net		1,670,865			1,639,755
Property, plant and equipment, net		1,299			1,167
Investment in equity accounted joint venture		42,462			93,814
Right-of-use asset for operating leases		—			7,297
Total non-current assets		1,714,626			1,742,033
Total assets	$	1,832,751		$	1,847,025
Liabilities and stockholders’ equity
Current liabilities
Current portion of secured term loan facilities, net of deferred financing costs	$	68,857		$	67,827
Current portion of operating lease liabilities		—			1,115
Accounts payable		10,784			13,451
Accrued expenses and other liabilities		12,798			13,055
Accrued interest		4,613			4,701
Deferred income		8,342			6,842
Total current liabilities		105,394			106,991
Non-current Liabilities
Secured term loan facilities and revolving credit facilities, net of current portion and deferred financing costs		599,676			616,573
Senior secured bond, net of deferred financing costs		68,378			69,311
Senior unsecured bond, net of deferred financing costs		99,039			99,266
Derivative liabilities		5,154			3,509
Operating lease liabilities, net of current portion		—			6,674
Total non-current liabilities		772,247			795,333
Total Liabilities		877,641			902,324
Commitments and contingencies (see note 13)
Stockholders’ equity
Common stock—$.01 par value per share; 400,000,000 shares authorized; 55,832,069 shares issued and outstanding, (2018: 55,657,631)		557			558
Additional paid-in capital		590,508			591,254
Accumulated other comprehensive loss		(363	)		(393	)
Retained earnings		364,408			353,282
Total stockholders’ equity		955,110			944,701
Total liabilities and stockholders’ equity	$	1,832,751		$	1,847,025

See accompanying notes to condensed consolidated financial statements.

F-1

NAVIGATOR HOLDINGS LTD.

Condensed Consolidated Statements of Income

(Unaudited)

	Three months ended June 30, (in thousands except share and per share data)						Six months ended June 30, (in thousands except share and per share  data)
	2018			2019			2018			2019
Revenues
Operating revenue	$	73,163		$	73,586		$	150,970		$	149,689
Expenses
Brokerage commissions		1,219			1,233			2,360			2,542
Voyage expenses		13,930			16,437			28,908			29,794
Vessel operating expenses		26,040			27,448			52,751			56,922
Depreciation and amortization		19,029			18,913			38,410			37,861
General and administrative costs		4,812			5,195			9,258			9,997
Total operating expenses		65,030			69,226			131,687			137,116
Operating income		8,133			4,360			19,283			12,573
Other income/(expense)
Foreign currency exchange loss on senior secured bonds		—			(768	)		—			(952	)
Unrealized gain on non-designated derivative instruments		—			861			—			1,645
Interest expense		(11,353	)		(12,209	)		(21,877	)		(24,362	)
Interest income		207			205			359			420
Loss before income taxes and share of result of equity accounted joint venture		(3,013	)		(7,551	)		(2,235	)		(10,676	)
Income taxes		(146	)		(81	)		(228	)		(174	)
Share of result of equity accounted joint venture		—			(101	)		—			(140	)
Net loss	$	(3,159	)	$	(7,733	)	$	(2,463	)	$	(10,990	)
(Loss)/Earnings per share:
Basic:	$	(0.06	)	$	(0.14	)	$	(0.04	)	$	(0.20	)
Diluted:	$	(0.06	)	$	(0.14	)	$	(0.04	)	$	(0.20	)
Weighted average number of shares outstanding:
Basic:		55,656,304			55,832,069			55,601,772			55,756,897
Diluted:		55,656,304			55,832,069			55,601,772			55,756,897

See accompanying notes to condensed consolidated financial statements.

F-2

NAVIGATOR HOLDINGS LTD.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

	Three months ended  June 30,  (in thousands)						Six months ended  June 30,  (in thousands)
	2018			2019			2018			2019
Net loss	$	(3,159	)	$	(7,733	)	$	(2,463	)	$	(10,990	)
Other Comprehensive (Loss) / Income:
Foreign currency translation (loss) / gain		(89	)		18			(66	)		(30	)
Total Comprehensive (Loss) / Income:	$	(3,248	)	$	(7,715	)	$	(2,529	)	$	(11,020	)

See accompanying notes to condensed consolidated financial statements.

F-3

NAVIGATOR HOLDINGS LTD.

Condensed Consolidated Statements of Shareholders’ Equity

(Unaudited)

	For the six months ended June 30, 2018 (In thousands, except share data)
	Common stock
	Number of shares (Note 11)		Amount 0.01 par value (Note 11)		Additional Paid-in Capital (Note 12)		Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total
Balance as of December 31, 2017		55,529,762	$	555	$	589,436	$	(277	)	$	373,499		$	963,213
Adjustment to equity for the adoption of the new revenue standard		—		—		—		—			(3,352	)		(3,352	)
Restricted shares issued March 20, 2018		126,542		2		—		—			—			2
Net income		—		—		—		—			(2,463	)		(2,463	)
Foreign currency translation		—		—		—		(66	)		—			(66	)
Share-based compensation plan		—		—		364		—			—			364
Balance as of June 30, 2018		55,656,304	$	557	$	589,800	$	(343	)	$	367,684		$	957,698

	For the three months ended June 30, 2018 (In thousands, except share data)
	Common stock
	Number of shares (Note 11)		Amount 0.01 par value (Note 11)		Additional Paid-in Capital (Note 12)		Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total
Balance as of March 31, 2018		55,656,304	$	557	$	589,743	$	(254	)	$	370,843		$	960,889
Net income		—		—		—		—			(3,159	)		(3,159	)
Foreign currency translation		—		—		—		(89	)		—			(89	)
Share-based compensation plan		—		—		57		—			—			57
Balance as of June 30, 2018		55,656,304	$	557	$	589,800	$	(343	)	$	367,684		$	957,698

	For the six months ended June 30, 2019 (In thousands, except share data)
	Common stock
	Number of shares (Note 11)		Amount 0.01 par value (Note 11)		Additional Paid-in Capital (Note 12)		Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total
Balance as of December 31, 2018		55,657,631	$	557	$	590,508	$	(363	)	$	364,408		$	955,110
Adjustment to equity for the adoption of the new leasing standard		—		—		—		—			(136	)		(136	)
Restricted shares issued March 20, 2019		174,438		1		—		—			—			1
Net income		—		—		—		—			(10,990	)		(10,990	)
Foreign currency translation		—		—		—		(30	)		—			(30	)
Share-based compensation plan		—		—		746		—			—			746
Balance as of June 30, 2019		55,832,069	$	558	$	591,254	$	(393	)	$	353,282		$	944,701

	For the three months ended June 30, 2018 (In thousands, except share data)
	Common stock
	Number of shares (Note 11)		Amount 0.01 par value (Note 11)		Additional Paid-in Capital (Note 12)		Accumulated Other Comprehensive Income (Loss)			Retained Earnings			Total
Balance as of March 31, 2019		55,832,069	$	558	$	590,853	$	(411	)	$	361,015		$	952,015
Net income		—		—		—		—			(7,733	)		(7,733	)
Foreign currency translation		—		—		—		18			—			18
Share-based compensation plan		—		—		401		—			—			401
Balance as of June 30, 2019		55,832,069	$	558	$	591,254	$	(393	)	$	353,282		$	944,701

See accompanying notes to condensed consolidated financial statements.

F-4

NAVIGATOR HOLDINGS LTD.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six Months ended June 30, 2018			Six Months ended June 30, 2019
	(in thousands)			(in thousands)
Cash flows from operating activities
Net (loss) / income	$	(2,463	)	$	(10,990	)
Adjustments to reconcile net income to net cash provided by operating activities
Unrealized gain on non-designated derivative instruments		—			(1,645	)
Depreciation and amortization		38,410			37,861
Payment of drydocking costs		(2,880	)		(5,160	)
Prior year expenses recovered in insurance claim		(754	)		—
Amortization of share-based compensation		366			747
Amortization of deferred financing costs		1,131			1,473
Share of result of equity accounted joint venture		—			140
Unrealized foreign exchange loss on senior secured bonds		—			952
Other unrealized foreign exchange gain		(30	)		(47	)
Changes in operating assets and liabilities
Accounts receivable		3,392			(3,133	)
Bunkers and lubricant oils		886			(1,460	)
Accrued income and prepaid expenses and other current assets		1,354			(4,013	)
Accounts payable, accrued interest, accrued expenses and other liabilities		3,734			2,012
Net cash provided by operating activities		43,146			16,737
Cash flows from investing activities
Additions to vessels and equipment		(79	)		(1,396	)
Investment in equity accounted joint venture		(10,475	)		(51,491	)
Purchase of other property, plant and equipment		(97	)		(191	)
Insurance recoveries		305			130
Net cash used in investing activities		(10,346	)		(52,948	)
Cash flows from financing activities
Proceeds from secured term loan facilities and revolving credit facilities		3,800			127,000
Issuance costs of secured bond		—			(136	)
Issuance costs of secured term loan facilities		—			(1,448	)
Issuance costs of terminal credit facility		—			(2,723	)
Repayment of secured term loan facilities and revolving credit facilities		(43,613	)		(110,712	)
Net cash (used in)/provided by financing activities		(39,813	)		11,981
Net decrease in cash, cash equivalents and restricted cash		(7,013	)		(24,230	)
Cash, cash equivalents and restricted cash at beginning of period		62,109			71,515
Cash, cash equivalents and restricted cash at end of period	$	55,096		$	47,285
Supplemental Information
Total interest paid during the period, net of amounts capitalized	$	20,799		$	22,776
Total tax paid during the period	$	52		$	165

See accompanying notes to condensed consolidated financial statements.

F-5

NAVIGATOR HOLDINGS LTD.

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

1. Basis of Presentation

The accompanying Navigator Holdings Ltd. (the “Company”), unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary for a fair presentation of the financial position of the Company and its subsidiaries as of June 30, 2019; the results of operations for the three and six months ended June 30, 2018 and 2019, the statement of stockholders’ equity for the three and six months ended June 30, 2018 and 2019, and cash flows for the six months ended June 30, 2018 and 2019. Unless the context otherwise requires, all references in the unaudited condensed consolidated financial statements to “our,” “we,” and “us” refer to the Company.

As of June 30, 2019, our total current liabilities exceeded our total current assets by $2.0 million. This net current liability is primarily due to a lower cash balance as a result of losses incurred during the six months ended June 30, 2019, as well as capital contributions we made to our Export Terminal Joint Venture to fund a portion of our remaining share of the capital cost for the construction of the Marine Export Terminal. As of June 30, 2019, we had $36.0 million available under the March 2019 Terminal Credit Facility to be used solely to pay capital contributions relating to the Marine Export Terminal as well as an aggregate of $35.0 million available borrowing capacity under one of our revolving credit facilities, which, in addition to cash generated from operations, we expect will cover this net current liability shortfall of $2.0 million.

On January 31, 2018, the Company announced the execution of definitive agreements creating the Export Terminal Joint Venture. Interests in joint ventures are accounted for using the equity method. They are recognized initially at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Company’s share of the profit or loss and other comprehensive income (“OCI”) of equity-accounted investees, until the date on which significant influence or joint control ceases. As of June 30, 2019, we had contributed to the Export Terminal Joint Venture $90.5 million of our expected $155.0 million share of the capital cost of the construction for the Marine Export Terminal. On July 9, 2019, we made an additional $12.5 million capital contribution to the Export Terminal Joint Venture.

A discussion of the Company’s significant accounting policies can be found in the Company’s consolidated financial statements included in the Annual Report on Form 20-F for the year ended December 31, 2018, filed with the SEC on April 1, 2019. There have been no material changes to these policies in the six month period ended June 30, 2019, apart from the below:

On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases, (‘Topic 842’), which supersedes Topic 840, Leases and requires lessees to recognize most leases on-balance sheet and disclose key information about leasing arrangements. ASU 2016-02 was subsequently amended by ASU 2018-10, Codification Improvements to Topic 842 Leases; ASU 2018-11, Targeted Improvements, which clarifies and corrects errors in ASC 842; and ASU 2018-20, Narrow-Scope Improvements for Lessors. The effective date and transition requirements in ASU 2018-10, ASU 2018-11 and ASU 2018-20 are the same as the effective date and transition requirements of ASU 2016-02.

The Company has elected all of the standard’s practical expedients in ASC 842-10-65-1(f) as a package on adoption. We have not elected the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available.

We used the effective date as our date of initial application. Consequently, for dates and periods prior to January 1, 2019, financial information will not be updated, and the disclosures required under the new standard will not be provided.

The new standard established a right-of use (“ROU”) model that requires a lessee to recognize a ROU asset, representing the right to use the asset for a specified period of time and corresponding lease liability on the balance sheet for all leases with a term longer than 12 months. Existing leases with a contracted term of less than 12 months on January 1, 2019 are classified as short-term leases on adoption of the new standard and qualify for an exemption from recognizing ROU assets or lease liabilities for periods presented after January 1, 2019. Leases for lessees under ASU 2016-02 are classified as financing or operating, with classification affecting the pattern and classification of expense recognition in the income statement.

Under ASU 2016-02 we have recognized new ROU assets and liabilities on our balance sheet for our operating leases, relating to long-term commitments for our offices in London, New York and Gdynia. At the adoption date of January 1, 2019, we had no short-term lease commitments. Lease liabilities and right-of-use assets for operating leases are initially measured at the present

F-6

value of the lease payments not yet paid, discounted using the discount rate for the lease determined at the later of the date of initial application or the lease commencement date. As a lessee, the Company has elected not to separate lease and non-lease components pertaining to operating lease payments. The discount rate used is the Company’s incremental borrowing rate, defined as the rate of interest that the Company as lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Consequently, operating lease liabilities of $7.8 million, based on the present value of the remaining minimum rental payments; and ROU assets of $7.3 million have been recognized on the Company’s unaudited condensed consolidated balance sheet as of June 30, 2019, with accretion of the liabilities and amortization of the ROU assets over the remaining length of the lease terms. At June 30, 2019, based on the remaining lease liabilities, the weighted average remaining lease term was 6.9 years. At June 30, 2019, the weighted average discount rate across the three leases was 5.56%.

The lease for our office in Poland is subject to annual indexation each January according to the Eurozone All Items Monetary Union Index of Consumer Prices (“MUICP”) index as quoted for the previous year. ASU 2016-02 requires lessees to include such variable lease payments in the value of the remaining lease payments and, therefore, in the measurement of a lessee’s lease liabilities at the adoption date of January 1, 2019. The lease payments relating to the Poland office lease are not remeasured at the beginning of each year, the effect of future increases in MUICP are recognized as part of lease-related costs in each year and classified as variable lease costs. For the three and six months ended June 30, 2019, total operating lease costs were $0.4 million and $0.7 million respectively, which include immaterial variable lease costs and are presented within General and Administrative costs within these unaudited condensed consolidated statements of income and cash flows from operating activities within the unaudited condensed consolidated statements of cash flows.

The new standard also requires lessors to classify leases as a sales-type, direct financing, or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease in effect, transfers control of the underlying assets to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third-party, the lease is a direct financing lease. All lessor leases that are not sales-type or direct financing leases are operating leases.

For the Company as a lessor, in applying ASU 2016-02, we believe that our vessels contracted under voyage charters or contracts of affreightment do not qualify as leases, as the charterer does not have the right to operate the asset and we maintain the right to direct the use of the asset during the period of charter hire. Vessels on time charters will continue to qualify as operating leases, when the charterer has the right to obtain substantially all of the benefits and can direct how and for what purposes the vessel will be used, and the Company has no substantive substitution rights. Time charters do not qualify as direct finance leases under ASU 2016-02 as the present value of the sum of the lease payments does not exceed the fair value of the underlying vessel.

The Company has elected, as a package, the practical expedients available in ASC 842-10-65-1(f) to not re-assess whether any existing or expired contracts are, or contain leases, for voyages in progress at the adoption date of January 1, 2019. We have assessed new charter contracts signed after the adoption date for whether they are, or contain, leases and should be recognized under ASU 2016-02. Charter contracts that do not contain a lease will be accounted for under Topic 606. Please read Note 2— (Revenue Recognition) to the unaudited condensed consolidated financial statements. The adoption of ASU 2016-02 has not resulted in a change to the classification of time charters, voyage charters or contracts of affreightment, the period over which we recognize revenue and, as a lessor, there has been no significant impact on our consolidated financial statements or cash flows as a result.

On January 1, 2019, the Company adopted ASU 2018-11, Leases—Targeted Improvements, which contains an amendment to ASU 2016-02 that would allow lessors to elect, as a practical expedient, by class of underlying asset, not to separate lease and non-lease components of a contract. The amendment allows these components to be accounted for as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic 606) and both of the following are met: (i) the timing and pattern of transfer for the lease component and non-lease components associated with that lease component are the same and (ii) the lease component, if accounted for separately, would be classified as an operating lease. Also, the ASU states that if the non-lease component or components associated with the lease component are the predominant component of the combined component, an entity should account for the combined component in accordance with Topic 606. Otherwise, the entity should account for the combined component as an operating lease in accordance with Topic 842. The Company has elected the package of practical expedients, as mentioned above. In addition, the Company has performed a qualitative analysis of each of its time charter contracts to determine whether the lease or non-lease component is the predominant component of the contract. The Company concluded that the lease component is the predominant component as the lessee would attribute more value to the ability to direct the use of the vessel rather than to the technical and crewing services to operate the vessel which are add-on services to the lessee. Accordingly, revenue from vessels under time charters, which are accounted as lease revenue for under ASC 842, are presented as a single lease component.

F-7

ASU 2018-11 also created a new, optional, transition method for implementing ASU 2016-02, which can only be adopted by entities either at (1) the beginning of the company’s first reporting period after issuance or (2) the entity’s mandatory ASU 2016-02 effective date. This choice of method affects only the timing of when an entity applies the transition provisions. The Company has applied this optional transitional method on January 1, 2019. Under this transition method, a cumulative-effect adjustment to the consolidated statement of shareholder’s equity of $0.1 million was recorded which represents the amounts of expense that would not have been recognized in retained earnings for the year ended December 31, 2018. The presentation of the consolidated financial statements for comparative periods has remained unchanged.

On January 1, 2019, the Company adopted ASU 2019-01, Leases (Topic 842); Codification Improvements, which, amongst other things, aligns the guidance in Topic 842 for determining fair value and its application to lease classification and measurement for lessors that are not manufacturers or dealers with that of existing guidance; and clarifies that lessees and lessors are exempt from a certain interim disclosure requirement associated with adopting the new leases standard within the fiscal year of adoption. This standard is effective on adoption of ASU 2016-02, the new leasing standard. The company adopted ASU 2016-02 and ASU 2019-01 on January 1, 2019. Accordingly, interim disclosures about the effect on income of adoption of ASC 842 are excluded from the required disclosures in these unaudited financial statements, in a manner similar to the annual disclosures in ASC 250-10-50-1(b)(2).

On January 1, 2019, the Company adopted ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which more closely aligns the accounting for employee and nonemployee share-based payments. We adopted the new standard with effect from January 1, 2019, and the adoption of this standard did not have an impact on our unaudited condensed consolidated financial statements and related disclosures.

In August 2018, the SEC adopted final rules under SEC Release No. 33-10532, Disclosure Update and Simplification (“DUSTR”), amending and expanding certain disclosure requirements. The DUSTR rules became effective on November 5, 2018 and must be applied to any filings after that date. The rules require, among other things, that registrants include in their interim financial statements a reconciliation of changes in shareholders’ equity in the notes or as a separate statement that reconciles the beginning balance to the ending balance of each caption in shareholders’ equity for each period for which an income statement is required to be filed. The Company has applied the new SEC disclosure requirements to these unaudited condensed consolidated financial statements.

These unaudited condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance U.S. GAAP for interim reporting. As such, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. It is recommended that these financial statements be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2018 included in our Form 20-F filed on April 1, 2019. The results for the three and six months ended June 30, 2019 are not necessarily indicative of results for the full 2019 fiscal year or any other future periods.

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses, which changes the recognition model for the impairment of financial instruments, including accounts receivable, loans and held-to-maturity debt securities, among others. ASU 2016-13 is required to be adopted by public business entities using the modified retrospective method for periods beginning after December 15, 2019, with early adoption permitted for fiscal periods beginning after December 15, 2018. We plan to adopt ASU 2016-13 on January 1, 2020 and we are currently assessing the impact that this update will have on our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement, (Topic 820), which modifies the disclosure requirements for financial instruments measured at fair value. ASU 2018-13 is required to be adopted for public business entities by January 1, 2020, with early adoption permitted from the date of issuance of ASU 2018-13. We plan to adopt ASU 2018-13 on January 1, 2020 and we are currently assessing the impact that this update will have on our consolidated financial statements.

In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810), which contains updated guidance for the financial reporting associated with consolidation of variable interest entities (VIEs). ASU 2018-17 is required to be adopted for public business entities by January 1, 2020. We plan to adopt ASU 2018-17 on January 1, 2020 and we are currently assessing the impact that this update will have on our consolidated financial statements.

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In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses which, amongst other things, clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the lease standard, ASU 2016-02. ASU 2018-19 is required to be adopted at the same time as ASU 2016-13. We plan to adopt both standards on January 1, 2020 and we are currently assessing the impact that this update will have on our consolidated financial statements.

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments which, amongst other things, clarifies certain aspects of accounting for credit losses, hedging activities and financial instruments respectively. The amendments within ASU 2019-04 have various effective dates of adoption. The amendments within ASU 2019-04 relating to Topic 815, Derivatives and Hedging are effective from the first annual reporting period beginning after April 25, 2019, which for the Company, will be the period ending December 31, 2020 and we plan to adopt the amendments on that date. The Company has no derivatives for which hedge accounting has been applied and as such, the amendments contained in this section of ASU 2019-04 are not applicable and will have no impact on our consolidated financial statements on adoption. The amendments relating to Topic 326 and Topic 825 are required to be adopted by public business entities for periods after December 15, 2019. We plan to adopt these amendments on January 1, 2020 and we are currently assessing the impact that the updates will have on our consolidated financial statements.

In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief which provides transition relief for entities adopting the credit losses standard, ASU 2016-13. Specifically, ASU 2019-05 amends ASU 2016-13 to allow companies to irrevocably elect, on adoption of ASU 2016-13, the fair value option for financial instruments that were previously recorded at amortized cost, are within the scope of the guidance in ASC 326-20, are eligible for the fair value option under ASC 825-20 and are not held-to-maturity debt securities. ASU 2019-05 is required to be adopted at the same time as ASU 2016-13. We plan to adopt both ASU 2016-13 and ASU 2019-05 on January 1, 2020 and we are currently assessing the impact that this update will have on our consolidated financial statements.

2. Revenue Recognition

The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) on January 1, 2018. The Company has adopted the standard using the modified retrospective method to incorporate the cumulative effect on all contracts at the date of initial application for reporting periods presented beginning January 1, 2018. By using the modified retrospective method approach we have made an adjustment to the consolidated statement of shareholders’ equity of $3.4 million which represents the amount of net revenue that would not have been recognized in retained earnings for the year ended December 31, 2017 under ASU 2014-09.

The Company receives its revenue streams from three different sources; vessels on time charters (which are accounted for as leases under ASC 842); voyage charters; and contracts of affreightment (“COA”). With time charters, the Company receives a fixed charter hire per on-hire day and revenue is recognized on an accrual basis and is recorded over the term of the charter as the performance obligation is satisfied. In the case of voyage charters or COAs, the vessel is contracted for a voyage, or a series of voyages, between two or more ports and the Company is paid for the cargo transported. Revenue under these performance obligations is recognized on a load port to discharge port basis and determined percentage of completion for all voyage charters on a time elapsed basis. This approach differs from previous generally accepted accounting principles (“U.S. GAAP”) whereby under a voyage charter or a COA the revenue was recognized from the later of the charter party date and the date of completion of the previous discharge port until the following discharge port. This had the effect of recognizing the revenue over a shorter period of time as the performance obligation commences from the loading of the cargo rather than from the inception of the contract. The Company believes that the performance obligation towards the customer starts to become satisfied once the cargo is loaded and the obligation becomes completely satisfied once the cargo has been discharged at the discharge port. Time charter revenue is payable monthly in advance whilst revenue from voyage charters and COAs is due upon discharge of the cargo at the discharge port.

Under the revenue recognition standard, the Company has identified certain costs incurred to fulfill a contract with a charterer which are costs incurred following the commencement of a contract or charter party but before the loading of the cargo commences. These directly related costs are generally fuel or any canal or port costs to get the vessel from its position at inception of the contract to the load port to commence loading of the cargo. These costs are deferred and amortized over the duration of the performance obligation on a time basis.

In addition, contract assets relate to our conditional right to consideration for our completed performance under contracts and are recognized when the right to consideration becomes unconditional. Contract liabilities include payments received in advance of performance under contracts and are recognized when performance under the respective contract has been completed. Deferred revenues allocated to unsatisfied performance obligations will be recognized over time as the services are performed, which is expected to take place within three months from the balance sheet date.

F-9

As of June 30, 2019, for services accounted for under ASC 606, the amount of contract assets reflected within accrued income on the Company’s condensed consolidated balance sheet was $1.5 million (December 31, 2018: $4.0 million). The amount of contract liabilities was $1.8 million at June 30, 2019 (December 31, 2018: $1.7 million) and is reflected within deferred income on our condensed consolidated balance sheet.

Operating revenue

The following table compares our operating revenue by the source of revenue stream for the three and six months ended June 30, 2018 and 2019:

	Three months ended June 30, (in thousands)				Six months ended June 30, (in thousands)
	2018		2019		2018		2019
Operating revenue:
Time charters	$	44,002	$	37,735	$	86,168	$	78,357
Voyage charters (*)		29,161		35,851		64,802		71,332
Total operating revenue	$	73,163	$	73,586	$	150,970	$	149,689

* Voyage Charter revenues: Voyage charter revenues, which include revenues from contracts of affreightment, are shown net of address commissions.

The estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied, or partially unsatisfied at June 30, 2019, is $7.5 million (December 31, 2018: $19.6 million). This revenue is expected to be recognized within three months from June 30, 2019, as the performance obligations are completed.

At June 30, 2019, the amount allocated to costs incurred to fulfill a contract with a charterer which are costs incurred following the commencement of a contract or charter party but before the loading of the cargo commences is $0.6 million (December 31, 2018: $1.5 million) and is reflected on the Company’s consolidated balance sheet within prepaid expenses and other current assets. This will be recognized over the duration of the performance obligation on a time basis, which is expected to occur within three months from June 30, 2019, as the performance obligations are completed.

Time charter revenues:

As of June 30, 2019, 21 of the Company’s 38 operated vessels, were subject to time charters, twelve of which will expire within one year, five of which will expire within three years and four which will expire within nine years. The committed time charter income for future periods at June 30, 2019 is as follows:

	(in thousands)
Remainder of 2019:	$	61,285
2020:	$	82,928
2021:	$	60,974
2022:	$	43,961
2023:	$	38,667
2024 onwards:	$	69,846

F-10

3. Vessels in Operation

	Vessel		Drydocking			Total
			(in thousands)
Cost
December 31, 2018	$	2,057,370	$	31,908		$	2,089,278
Additions		1,396		5,160			6,556
Disposal		—		(3,249	)		(3,249	)
June 30, 2019	$	2,058,766	$	33,819		$	2,092,585
Accumulated Depreciation
December 31, 2018	$	400,517	$	17,896		$	418,413
Charge for the period		33,925		3,741			37,666
Disposal		—		(3,249	)		(3,249	)
June 30, 2019	$	434,442	$	18,388		$	452,830
Net Book Value
December 31, 2018	$	1,656,853	$	14,012		$	1,670,865
June 30, 2019	$	1,624,324	$	15,431		$	1,639,755

The cost and net book value of the 21 vessels that were contracted under time charters was $1,183.5 million and $917.6 million respectively at June 30, 2019 (December 31, 2018: $1,337.0 million and $1,084.0 million respectively for 23 vessels contracted under time charters)

The net book value of vessels that serve as collateral for the Company’s secured bond, secured term loan and revolving credit facilities was $1,512.9 million as of June 30, 2019 (December 31, 2018: $1,509.0 million)

4. Investment in equity accounted joint venture

The table below represents the Company’s investment into the Export Terminal Joint Venture, pursuant to which the Company has a 50% economic interest in building and operating the Marine Export Terminal, at December 31, 2018 and June 30, 2019:

	2018			2019
	(in thousands)
Investment in equity accounted joint venture at January 1	$	—		$	42,462
Equity contributions to joint venture entity		41,000			49,500
Share of results		(38	)		(140	)
Capitalized interest and deferred financing costs		1,024			1,992
Legal costs		476			—
Total investment in equity accounted joint venture at December 31 and June 30	$	42,462		$	93,814

5. Terminal Credit Facility

On March 29, 2019, Navigator Ethylene Terminals LLC, a wholly-owned subsidiary of the Company (the Marine Terminal Borrower”), entered into a Credit Agreement (the “Terminal Facility”) with ING Capital LLC and SG Americas Securities, LLC for a maximum principal amount of $75.0 million, to be used solely for the payment of project costs relating to our Marine Export Terminal. The Terminal Facility is comprised of an initial construction loan, followed by a term loan with a final maturity occurring on the earlier of (i) five years from completion of the Marine Export Terminal and (ii) December 31, 2025. Initial borrowing under the Terminal Facility may only occur after the Marine Terminal Borrower has made equity contributions required under the Terminal Facility to the Export Terminal Joint Venture, which together with available borrowings under the Terminal Facility, will fund its entire portion of the capital cost for the construction of the Marine Export Terminal.

The loans are subject to quarterly repayments of principal and interest beginning three months after the completion of the Marine Export Terminal. Interest on amounts drawn is payable at a rate of U.S. LIBOR plus 250 to 300 basis points per annum over the term of the facility, for interest periods of three or six months as selected by the Marine Terminal Borrower. The Terminal Facility includes events of default for the failure to achieve the completion of the Marine Export Terminal by December 31, 2020, the abandonment of all or substantially all activities relating to the Marine Export Terminal for 90

F-11

consecutive days and if certain material contracts relating to the Marine Export Terminal are terminated, as well as customary events of default including those relating to a failure to pay principal or interest, a breach of covenant, representation or warranty, a cross-default to other indebtedness and non-compliance with security documents. The loans under the Terminal Facility are secured by first priority liens on the rights to the Marine Terminal Borrower’s distributions from the Marine Terminal Joint Venture, the Marine Terminal Borrower’s assets and properties and the company’s equity interests in the Marine Terminal Borrower.

As of June 30, 2019, the Company had not drawn down on this facility, therefore there were no outstanding obligations on the Terminal Facility at the reporting date. Based on the existing committed throughput for the Marine Export Terminal, and subject to the satisfaction of certain conditions to the ability to borrow under the Terminal Facility, $36.0 million was available to be drawn down under this Credit Agreement. Available amounts are expected to increase as additional throughput agreements are committed.

6. Secured Term Loan Facilities and Revolving Credit Facilities

March 2019 Secured Term Loan

On March 25, 2019 the Company entered into a secured term loan with Credit Agricole Corporate and Investment Bank, ING Bank N.V. London Branch and Skandinaviska Enskilda Banken AB (Publ.) for a maximum principal amount of $107.0 million (the “March 2019 Secured Term Loan”), to partially re-finance our January 2015 secured term loan facility that was due to mature in June 2020. The repayment of the loan, secured by four of our vessels was $75.6 million, leaving net proceeds of $31.4 million for fees and general corporate purposes. The facility has a term of six years from the date of the agreement and expires in March 2025, is fully drawn down and as of June 30, 2019, the amount still outstanding was $104.7 million which is repayable in equal quarterly instalments of $2.3 million with a balloon payment of $52.1 million on the final quarterly repayment date.

ASC 470-50—Debt Modifications states that if re-financing of a loan results in the present value of future cash flows being modified by more than 10%, it is considered to have ‘substantially different terms’ from the original loan and is accounted for as a debt extinguishment and the new loan treated as the issuance of new debt. The 10% cash flow test was performed, and it was concluded that the present value of future cash flows on a lender-by-lender basis have not been modified by more than 10%. Issuance costs for the March 2019 Secured Term Loan of $1.4 million have been deferred and will be amortized over the facility term on the effective rate basis.

This loan facility is secured by first priority mortgages on each of; Navigator Atlas, Navigator Europa, Navigator Oberon, and Navigator Triton as well as assignments of earnings and insurances on these secured vessels. The financial covenants each as defined within the credit facility are: a) the maintenance at all times of cash and cash equivalents in an amount equal to or greater than (i) $35.0 million, or (ii) 5% of Net Debt or total debt, as applicable, whichever is greater; and the aggregate fair market value of the collateral vessels must be no less than 130% of the aggregate outstanding borrowing under the facility. Interest on amounts drawn is payable at a rate of U.S. LIBOR plus 240 basis points per annum.

F-12

The following table shows the breakdown of secured term loan facilities and total deferred financing costs split between current and non-current liabilities at December 31, 2018 and June 30, 2019:

	December 31, 2018			June 30, 2019
	(in thousands)
Current Liability
Current portion of secured term loan facilities	$	(70,600	)	$	(69,750	)
Less: current portion of deferred financing costs		1,743			1,923
Current portion of secured term loan facilities, net of deferred financing costs	$	(68,857	)	$	(67,827	)
Non-Current Liability
Secured term loan facilities and revolving credit facilities net of current portion	$	(605,138	)	$	(622,276	)
Less: non-current portion of deferred financing costs		5,462			5,703
Non-current secured term loan facilities and revolving credit facilities, net of current portion and non-current deferred financing costs	$	(599,676	)	$	(616,573	)

7. Senior Secured Bond

On November 2, 2018, the Company issued senior secured bonds in an aggregate principal amount of NOK 600 million with Nordic Trustee AS as the bond trustee (the “2018 Bonds”). The net proceeds are being used to partially finance our portion of the capital cost for the construction of the Marine Export Terminal. The 2018 Bonds are governed by Norwegian law and are listed on the Nordic ABM which is operated and organized by Oslo Børs ASA. The 2018 Bonds bear interest at a rate equal to the 3-month NIBOR plus 6.0% per annum, calculated on a 360-day year basis and mature on November 2, 2023. Interest is payable quarterly in arrears on February 2, May 2, August 2 and November 2.

On the same date, the company entered into a cross-currency interest rate swap agreement with Nordea Bank Abp (“Nordea”), with a termination date of November 2, 2023, to run concurrently with the 2018 Bonds. The interest rate payable by the Company under this cross-currency interest rate swap agreement will be 6.608% plus 3-month U.S. LIBOR and the transfer of the principal amount fixed at $71.7 million upon maturity in exchange for NOK 600 million. Please read Note 9 (Derivative Instruments Accounted for at Fair Value) to the unaudited condensed consolidated financial statements. For a description of our accounting policy in relation to the cross-currency interest rate swap, please read Note 2 (Summary of Significant Accounting Policies) to the 2018 Annual Report.

The Company may redeem the 2018 Bonds, in whole or in part, at any time beginning on or after November 2, 2021. Any 2018 Bonds redeemed from November 2, 2021 until November 1, 2022, are redeemable at 102.4% of par, from November 2, 2022 until May 1, 2023, are redeemable at 101.5% of par, and from May 2, 2023 to the maturity date are redeemable at 100% of par, in each case, in cash plus accrued interest.

Additionally, upon the occurrence of a “Change of Control Event” (as defined in the 2018 Bond Agreement), the holders of 2018 Bonds have an option to require us to repay such holders’ outstanding principal amount of 2018 Bonds at 101% of par, plus accrued interest.

The financial covenants each as defined within the bond agreement are: (a) The issuer shall ensure that the Group (meaning “the Company and its subsidiaries”) maintains a minimum liquidity of no less than $25.0 million and (b) maintain a Group equity ratio of at least 30% (as defined in the 2018 Bond Agreement). At June 30, 2019, the Company was in compliance with all covenants for the 2018 Bonds.

The 2018 Bond Agreement provides that we may declare dividends from January 1, 2020, payable at the earliest from January 1, 2021 so long as such dividends do not exceed 50% of our cumulative consolidated net profits after taxes from January 1, 2020. The 2018 Bond Agreement also limits us and our subsidiaries from, among other things, entering into mergers and divestitures, engaging in transactions with affiliates or incurring any additional liens which would have a material adverse effect. In addition, the 2018 Bond Agreement includes customary events of default, including those relating to a failure to pay principal or interest, a breach of covenant, false representation and warranty, a cross-default to other indebtedness, the occurrence of a material adverse effect, or our insolvency or dissolution.

F-13

The following table shows the breakdown of our senior secured bond and total deferred financing costs as of December 31, 2018 and June 30, 2019:

	December 31, 2018			June 30, 2019
	(in thousands)
Senior Secured Bond
Total NOK 600 million Bond, translated at prevailing rate	$	(69,337	)	$	(70,289	)
Less deferred financing costs		959			978
Total Bond, net of deferred financing costs	$	(68,378	)	$	(69,311	)

8. Senior Unsecured Bond

On February 10, 2017, the Company issued senior unsecured bonds in an aggregate principal amount of $100.0 million with Nordic Trustee AS as the bond trustee (the “2017 Bonds”). The net proceeds of the issuance of the 2017 Bonds, together with cash on hand, were used to redeem in full all of the Company’s outstanding 9.0% senior unsecured bonds. The 2017 Bonds are governed by Norwegian law and listed on the Nordic ABM which is operated and organized by Oslo Børs ASA. The 2017 Bonds bear interest at a rate of 7.75% per annum and mature on February 10, 2021. Interest is payable semi-annually in arrears on February 10 and August 10.

The Company may redeem the 2017 Bonds, in whole or in part, at any time. Any 2017 Bonds redeemed until February 10, 2020, are redeemable at 103.875% of par, from February 11, 2020 until August 10, 2020, are redeemable at 101.9375% of par, and from August 11, 2020 to the maturity date are redeemable at 100% of par, in each case, plus accrued interest. Additionally, upon the occurrence of a “Change of Control Event” (as defined in the 2017 Bond Agreement), the holders of 2017 Bonds have an option to require us to repay such holders’ outstanding principal amount of 2017 Bonds at 101% of par, plus accrued interest.

The bond agreement covering the 2017 Bonds (the “2017 Bond Agreement”) contains an option to issue additional bonds up to a maximum issue amount of a further $100.0 million, at identical terms as the original bond issue, except that additional bonds may be issued at a different price.

The financial covenants (each as defined within the 2017 Bond Agreement) are: (a) The issuer shall ensure that the Group (meaning “the Company and its subsidiaries”) maintains a minimum liquidity of no less than $25.0 million; (b) to maintain an interest coverage ratio (as defined in the 2017 Bond Agreement) of not less than 2.25:1; and (c) maintain a Group equity ratio of minimum 30% (as defined in the 2017 Bond Agreement). At June 30, 2019, the Company was in compliance with all covenants for the 2017 Bonds.

The 2017 Bond Agreement provides that we may declare dividends so long as such dividends do not exceed 50% of our cumulative consolidated​​​​​​​ net profits after taxes since September 30, 2016. The 2017 Bond Agreement also limits us and our subsidiaries from, among other things, entering into mergers and divestitures, engaging in transactions with affiliates or incurring any additional liens which would have a material adverse effect. In addition, the 2017 Bond Agreement includes customary events of default, including those relating to a failure to pay principal or interest, a breach of covenant, false representation and warranty, a cross-default to other indebtedness, the occurrence of a material adverse effect, or our insolvency or dissolution.

The following table shows the breakdown of our senior unsecured bond and total deferred financing costs at December 31, 2018 and June 30, 2019:

	December 31, 2018			June 30, 2019
	(in thousands)
Senior Unsecured Bond
Total Bond	$	(100,000	)	$	(100,000	)
Less deferred financing costs		961			734
Total Bond, net of deferred financing costs	$	(99,039	)	$	(99,266	)

9. Derivative Instruments Accounted for at Fair value

The Company uses derivative instruments in accordance with its overall risk management policy to mitigate our risk to the effects of unfavorable fluctuations in foreign exchange movements.

F-14

The Company entered into a cross-currency interest rate swap agreement concurrently with the issuance of its NOK denominated senior secured bonds (see Note 7—Senior Secured Bond) and pursuant to this swap, the Company receives the principal amount of NOK 600 million in exchange for a payment of a fixed amount of $71.7 million on the maturity date of the swap.

In addition, at each quarterly interest payment date, the cross-currency interest rate swap exchanges a receipt of floating interest of 6.0% plus 3-month NIBOR on NOK 600 million for a U.S. Dollar payment of floating interest of 6.608% plus 3-month U.S. LIBOR on the $71.7 million principal amount. The purpose of the cross-currency interest rate swap is to economically hedge the foreign currency exposure on the payments of interest and principal of the Company’s NOK denominated 2018 Bonds due to mature in 2023.

The cross-currency interest rate swap is remeasured to fair value at each reporting date and has been categorized as level two on the fair value measurement hierarchy.

The fair value of the cross-currency interest rate swap agreement is the estimated amount that we would pay to sell or transfer the swap at the reporting date, taking into account current interest rates, foreign exchange rates and the current credit worthiness of the swap counterparties. The estimated amount is the present value of future cash flows. The Company transacts all of these derivative instruments through investment-grade rated financial institutions at the time of the transaction. It is possible that the amount recorded as a derivative asset or liability could vary by a material amount in the near term if there is volatility in the credit markets.

The fair value of this non-designated derivative instrument is presented in the Company’s consolidated balance sheet and the change in fair value is presented in the consolidated statement of income. The movement in the fair value of the non-designated cross-currency interest rate swap resulted in unrealized gains of $0.9 million and $1.6 million for the three and six months ended June 30, 2019 respectively. There is no impact on the cash flows from the remeasurement at each reporting date.

The following table includes the estimated fair value of those assets and liabilities that are measured at fair value on a recurring basis and are carried at fair value at December 31, 2018 and June 30, 2019:

			December 31, 2018			June 30, 2019
Fair Value Hierarchy Level	Fair Value Hierarchy Level		Fair Value Asset (Liability)			Fair Value Asset (Liability)
			(in thousands)
Cross-currency interest rate swap agreement		Level 2		(5,154	)		(3,509	)

10. Fair Value of Financial Instruments Not Accounted for at Fair Value

The principal financial assets of the Company at December 31, 2018 and June 30, 2019 consist of cash, cash equivalents and accounts receivable. The principal financial liabilities of the Company consist of accounts payable, accrued expenses and other liabilities, secured term loan facilities, revolving credit facilities, the 2017 Bonds and the 2018 Bonds.

The carrying values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other liabilities are reasonable estimates of their fair value due to the short-term nature or liquidity of these financial instruments.

Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. The fair value accounting standard establishes a three tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2—Include other inputs that are directly or indirectly observable in the marketplace.

Level 3—Unobservable inputs which are supported by little or no market activity.

The 2017 Bonds and the 2018 Bonds are classified as a level two liability and the fair values have been calculated based on the most recent trades of the bond on the Oslo Børs prior to June 30, 2019. The 2018 Bonds are denominated in Norwegian Kroner (“NOK”) and the fair value has been translated to the functional currency of the Company using the prevailing exchange rate at June 30, 2019.

F-15

The fair value of secured term loan facilities and revolving credit facilities is estimated based on the average of the current rates offered to the Company for all debt facilities. This has been categorized at level two on the fair value measurement hierarchy.

The following table includes the estimated fair value and carrying value of those assets and liabilities. The table excludes cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other liabilities because the fair value approximates carrying value and, for accounts receivable and payable, are due in one year or less.

			December 31, 2018						June 30, 2019
Financial Asset/Liability	Fair Value Hierarchy Level		Carrying Amount Asset (Liability)			Fair Value Asset (Liability)			Carrying Amount Asset (Liability)			Fair Value Asset (Liability)
			(in thousands)
2018 Bonds (note 7)		Level 2		(69,337	)		(66,004	)		(70,289	)		(69,235	)
2017 Bonds (note 8)		Level 2		(100,000	)		(96,481	)		(100,000	)		(100,000	)
Secured term loan facilities and revolving credit facilities (note 6)		Level 2		(675,738	)		(588,713	)		(692,026	)		(592,255	)

11. Earnings per share

Basic and diluted earnings per share is calculated by dividing the net income available to common shareholders by the average number of common shares outstanding during the periods. Diluted earnings per share is calculated by adjusting the weighted average number of common shares used for calculating basic earnings per share for the effects of all potentially dilutive shares. The following table shows calculation of both basic and diluted number of weighted average outstanding shares for the three and six months ended June 30, 2018 and 2019:

	Three months ended  June 30,  (in thousands)						Six months ended  June 30,  (in thousands)
	2018			2019			2018			2019
Basic and diluted net loss available to common shareholders (in thousands)	$	(3,159	)	$	(7,733	)	$	(2,463	)	$	(10,990	)
Basic weighted average number of shares		55,656,304			55,832,069			55,601,772			55,756,897
Effect of dilutive potential share options*:		—			—			—			—
Diluted weighted average number of shares		55,656,304			55,832,069			55,601,772			55,756,897

* Due to a loss for the three months and six months ended June 30, 2018 and 2019, no incremental shares are included because the effect would be antidilutive. The number of potential dilutive shares excluded from the calculation for the three months ended June 30, 2019, is 349,936 (three months ended June 30, 2018: 343,936) and for the six months ended June 30, 2019, is 349,803 (six months ended June 30, 2018: 354,625).

12. Share-Based Compensation

On March 20, 2019, the Company granted 32,550 restricted shares under the Navigator Holdings Ltd. 2013 Long-Term Incentive Plan (the “2013 Plan”) to non-employee directors with a weighted average value of $11.06 per share. These restricted shares vest on the first anniversary of the grant date. On the same date the Company granted 141,888 restricted shares to the officers and employees of the Company, including the then Chief Executive Officer, with a weighted average value of $11.06 per share. All these restricted shares vest on the third anniversary of the grant date.

During the six months ended June 30, 2019, there were 29,898 shares that were previously granted to non-employee directors under the 2013 Plan with a weighted average grant value of $12.04 per share, which vested at a fair value of $336,054. In addition, 48,147 shares that were granted in 2016 to the Chief Executive Officer and officers and employees of the Company, all of which had a weighted average grant value of $15.80, vested at a fair value of $548,218.

F-16

On March 20, 2018, the Company granted 29,898 restricted shares under the 2013 Plan to non-employee directors with a weighted average value of $12.04 per share. On November 28, 2018 the Company granted a further 5,000 shares to a newly appointed non-employee director with a weighted average value of $12.30. These restricted shares vest on the first anniversary of the grant date. On March 20, 2018 the Company granted 96,644 restricted shares to the Chief Executive Officer and officers and employees of the Company with a weighted average value of $12.04 per share. All these restricted shares vest on the third anniversary of the grant date.

During the year ended December 31, 2018, 28,194 shares that were previously granted under the 2013 Plan to non-employee directors with a weighted average grant value of $12.77 per share vested at a fair value of $325,641.

Restricted share grant activity for the year ended December 31, 2018 and six months ended June 30, 2019 was as follows:

	Number of non-vested restricted shares			Weighted average grant date fair value		Weighted average remaining contractual term
Balance as of January 1, 2018		143,513		$	13.82		1.49 years
Granted		131,542			12.04
Vested		(28,194	)		12.77
Forfeited		(3,673	)		14.16
Balance as of December 31, 2018		243,188		$	12.98		1.30 years
Granted		174,438			11.06
Vested		(78,045	)		14.36
Balance as of June 30, 2019		339,581		$	11.68		1.84 years

Using the straight-line method of expensing the restricted stock grants, the weighted average estimated value of the shares calculated at the date of grant is recognized as compensation cost in the Statement of Income over the period to the vesting date.

During the six months ended June 30, 2019, the Company recognized $746,446 in share-based compensation costs relating to share grants (six months ended June 30, 2018: $466,577). During the three months ended June 30, 2019, the Company recognized $400,689 in share-based compensation costs relating to share grants (three months ended June 30, 2018: $317,926). As of June 30, 2019, there was a total of $2,569,942 unrecognized compensation costs relating to the expected future vesting of share-based awards (December 31, 2018: $1,387,104) which are expected to be recognized over a weighted average period of 1.84 years (December 31, 2018: 1.30 years).

Share options previously issued under the 2013 Plan are exercisable from the third anniversary of the grant date up to the tenth anniversary of the date of grant. The fair value of each option is calculated on the date of grant based on the Black-Scholes valuation model. Expected volatilities are based on the historic volatility of the Company’s stock price and other factors. The Company does not currently pay dividends and it is assumed this will not change. The expected term of the options granted is anticipated to be between 4 and 6.5 years. The risk-free rate is the rate adopted from the U.S. Government Zero Coupon Bond.

The movement in the existing share options for the year ended December 31, 2018 and the six months ended June 30, 2019 was as follows:

Options	Number of non-vested options			Weighted average exercise price per share		Weighted average remaining contractual term years		Aggregate intrinsic value
Balance as of January 1, 2018		154,685		$	17.80		6.70		—
Forfeited during the year		(6,298	)		23.85		—		—
Vested		(148,387	)		—		—		—
Balance as of December 31, 2018		—			—		—	$	—
Granted during the period		6,000			18.95		5.52		—
Vested		—			—		—		—
Balance as of June 30, 2019		6,000			18.95		5.52	$	—

F-17

On January 5, 2019, 6,000 share options were granted to an employee of the company at a strike price of $18.95 under the 2013 Plan. These options are not exercisable until the first anniversary of the grant date and can be exercised up to the sixth anniversary of the grant date.

On March 17, 2018, 148,387 share options granted on March 17, 2015 at an option price of $17.80 became exercisable. None of the options vested and outstanding were exercised as of December 31, 2018.

During the year ended December 31, 2018, 18,506 of the share options that had previously vested as of December 31, 2017 were forfeited at a weighted average option price of $24.17.

During the six months ended June 30, 2019, the Company recognized no share-based compensation costs (six months ended June 30, 2018: credit of $99,902 recognized in general and administrative costs) relating to options granted under the 2013 Plan. As of June 30, 2019, there were 349,936 share options existing and outstanding and no unrecognized compensation costs (December 31, 2018: no unrecognized compensation costs) relating to non-vested options under the 2013 Plan.

13. Commitments and Contingencies

The contractual obligations schedule set forth below summarizes our contractual obligations excluding interest payable as of June 30, 2019.

	Remainder of 2019		2020		2021		2022		2023		Thereafter		Total
			(in thousands)
Marine Export Terminal capital contributions*		45,000		19,500		—		—		—		—		64,500
Secured term loan facilities and revolving credit facilities		34,875		69,750		69,750		311,611		142,503		63,537		692,026
2017 Bonds		—		—		100,000		—		—		—		100,000
2018 Bonds**		—		—		—		—		71,697		—		71,697
Office operating leases		745		1,276		1,124		93		—		—		3,238
Total contractual obligations	$	80,620	$	90,526	$	170,874	$	311,704	$	214,200	$	63,537	$	931,461

* On July 9, 2019, the Company made a capital contribution of $12.5 million, reducing the remaining contributions required for 2019 from $45.0 million to $32.5 million for our portion of the capital cost for the construction of the Marine Export Terminal.

** The Company has NOK 600 million of 2018 Bonds that mature in 2023 issued in the Norwegian Bond market (see Note 7—Senior Secured Bond). The Company has entered into a cross-currency interest rate swap agreement, to swap all interest and principal payments of the 2018 Bonds into U.S. Dollars, with the interest payments at 6.608% plus 3-month U.S. LIBOR and the transfer of the principal amount fixed at $71.7 million upon maturity in exchange for NOK 600 million (see Note 9 (Derivative Instruments Accounted for at Fair Value) to the unaudited condensed consolidated financial statements).

The Company occupies office space in London with a lease that commenced in January 2017 for a period of 10 years with a mutual break option in January 2022, which is the fifth anniversary from the lease commencement date. This break option has not been recognized as part of the right-of-use asset and lease liability associated with the lease. The gross rent per year is approximately $1.1 million.

The Company entered into a lease for office space in New York that commenced June 1, 2017 and expires on May 31, 2020. An option to extend the lease for a further two years has been recognized as part of the right-of-use asset and lease liability associated with the lease. The annual gross rent under this lease is approximately $0.4 million, subject to certain adjustments.

The lease term for our representative office in Gdynia, Poland is for a period of five years commencing from January 2017. The gross rent per year is approximately $60,000.

The weighted average remaining contractual lease term for the above three office leases on June 30, 2019 was 2.4 years.

14. Subsequent Events

On September 30, 2019, the Company entered into an amendment (the “2017 Bonds Amendment”) to the bond agreement governing the 2017 Bonds, with the bondholders’ approval, to amend one of the covenants in the 2017 Bonds. The covenant, requiring our interest coverage ratio, on a trailing four quarter basis, to be no less than 2.25 to 1.00 was amended to be a requirement of no less than 2.00 to 1.00, up to and including September 30, 2020, to be in line with a similar covenant in our secured term loan facilities and revolving credit facilities, before then reverting back to the original requirement. In addition, the definition of interest under the 2017 Bonds now excludes interest due or payable relating to debt financing associated with our obligations on the construction of the Marine Export Terminal. Under the terms of the 2017 Bonds Amendment, dividends may not be declared or paid by the Company until on or after December 31, 2020. An amendment fee and corporate fees associated with obtaining the 2017 Bonds Amendment of $1.3 million have been deferred and will be amortized over the period the amendment is in force.

On October 21, 2019, the Company entered into a sale and leaseback to refinance one of its vessels, the Navigator Aurora. The sale price agreed was $77.5 million, with the buyer paying 90% of the vessel’s value, or $69.75 million and a seller’s credit representing the remaining 10%. From the proceeds, $44.5 million was used to repay the vessel’s secured tranche of the December 2015 secured term loan facility. Simultaneous with this sale, the Company entered into a bareboat charter for the vessel for a period of up to 13 years, with break clauses at years 5, 7 and 10. The transaction was closed on October 29, 2019.

F-18

101 The following financial information from Navigator Holdings Ltd.’s Report on Form 6-K for the quarter ended June 30, 2019, furnished with the SEC on November 13, 2019, formatted in Extensible Business Reporting Language (XBRL):

i. Unaudited Condensed Consolidated Balance Sheets as of December 31, 2018 and June 30, 2019

ii. Unaudited Condensed Consolidated Statements of Income for the three and six months ended June 30, 2018 and June 30, 2019

iii. Unaudited Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2018 and June 30, 2019

iv. Unaudited Condensed Consolidated Statements of Shareholders’ Equity for the six months and three months ended June 30, 2018 and 2019

v. Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2018 and June 30, 2019

vi. Notes to Unaudited Condensed Consolidated Financial Statements

F-19

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	NAVIGATOR HOLDINGS LTD.
Date: November 13, 2019	By:	/s/ Niall J Nolan
	Name:	Niall J Nolan
	Title:	Chief Financial Officer

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Subsequent Events

6 Months Ended

Jun. 30, 2019

Subsequent Events [Abstract]

Subsequent Events

14. Subsequent Events

On September 30, 2019, the Company entered into an amendment (the “2017 Bonds Amendment”) to the bond agreement governing the 2017 Bonds, with the bondholders’ approval, to amend one of the covenants in the 2017 Bonds. The covenant, requiring our interest coverage ratio, on a trailing four quarter basis, to be no less than 2.25 to 1.00 was amended to be a requirement of no less than 2.00 to 1.00, up to and including September 30, 2020, to be in line with a similar covenant in our secured term loan facilities and revolving credit facilities, before then reverting back to the original requirement. In addition, the definition of interest under the 2017 Bonds now excludes interest due or payable relating to debt financing associated with our obligations on the construction of the Marine Export Terminal. Under the terms of the 2017 Bonds Amendment, dividends may not be declared or paid by the Company until on or after December 31, 2020. An amendment fee and corporate fees associated with obtaining the 2017 Bonds Amendment of $1.3 million have been deferred and will be amortized over the period the amendment is in force.

On October 21, 2019, the Company entered into a sale and leaseback to refinance one of its vessels, the Navigator Aurora. The sale price agreed was $77.5 million, with the buyer paying 90% of the vessel’s value, or $69.75 million and a seller’s credit representing the remaining 10%. From the proceeds, $44.5 million was used to repay the vessel’s secured tranche of the December 2015 secured term loan facility. Simultaneous with this sale, the Company entered into a bareboat charter for the vessel for a period of up to 13 years, with break clauses at years 5, 7 and 10. The transaction was closed on October 29, 2019.

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Investment in Equity Accounted Joint Venture (Tables)

6 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Investments in Equity Accounted Joint Venture

	2018			2019
	(in thousands)
Investment in equity accounted joint venture at January 1	$	—		$	42,462
Equity contributions to joint venture entity		41,000			49,500
Share of results		(38	)		(140	)
Capitalized interest and deferred financing costs		1,024			1,992
Legal costs		476			—
Total investment in equity accounted joint venture at December 31 and June 30	$	42,462		$	93,814

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Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Calculation of Basic and Diluted Number of Weighted Average Outstanding Shares

The following table shows calculation of both basic and diluted number of weighted average outstanding shares for the three and six months ended June 30, 2018 and 2019:

	Three months ended  June 30,  (in thousands)						Six months ended  June 30,  (in thousands)
	2018			2019			2018			2019
Basic and diluted net loss available to common shareholders (in thousands)	$	(3,159	)	$	(7,733	)	$	(2,463	)	$	(10,990	)
Basic weighted average number of shares		55,656,304			55,832,069			55,601,772			55,756,897
Effect of dilutive potential share options*:		—			—			—			—
Diluted weighted average number of shares		55,656,304			55,832,069			55,601,772			55,756,897

* Due to a loss for the three months and six months ended June 30, 2018 and 2019, no incremental shares are included because the effect would be antidilutive. The number of potential dilutive shares excluded from the calculation for the three months ended June 30, 2019, is 349,936 (three months ended June 30, 2018: 343,936) and for the six months ended June 30, 2019, is 349,803 (six months ended June 30, 2018: 354,625).

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Earnings per Share - Calculation of Basic and Diluted Number of Weighted Average Outstanding Shares (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share [Abstract]
Basic and diluted net loss available to common shareholders (in thousands)	$ (7,733)	$ (3,159)	$ (10,990)	$ (2,463)
Basic weighted average number of shares	55,832,069	55,656,304	55,756,897	55,601,772
Diluted weighted average number of shares	55,832,069	55,656,304	55,756,897	55,601,772

XML

Senior Unsecured Bond - Schedule of Breakdown of Senior Unsecured Bond and Total Deferred Financing Costs (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total Bond, net of deferred financing costs	$ (692,026)	$ (675,738)
2017 Senior Unsecured Bonds [Member]
Debt Instrument [Line Items]
Total Bond	(100,000)	(100,000)
Less deferred financing costs	734	961
Total Bond, net of deferred financing costs	$ (99,266)	$ (99,039)

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Secured Term Loan Facilities and Revolving Credit Facilities - Schedule of Breakdown of Secured Term Loan Facilities and Total Deferred Financing Costs Split Between Current and Non-Current Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current Liability
Current portion of secured term loan facilities	$ (69,750)	$ (70,600)
Less: current portion of deferred financing costs	1,923	1,743
Current portion of secured term loan facilities, net of deferred financing costs	(67,827)	(68,857)
Non-Current Liability
Secured term loan facilities and revolving credit facilities net of current portion	(622,276)	(605,138)
Less: non-current portion of deferred financing costs	5,703	5,462
Non-current secured term loan facilities and revolving credit facilities, net of current portion and non-currentdeferred financing costs	$ (616,573)	$ (599,676)

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Earnings per Share - Calculation of Basic and Diluted Number of Weighted Average Outstanding Shares (Parenthetical) (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share [Abstract]
Effect of dilutive potential shares	0	0	0	0
Potential dilutive shares excluded computation of earnings per share	349,936	343,936	349,803	354,625

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Commitments and Contingencies - Summary of Contractual Obligations (Detail) - USD ($) $ in Thousands		Jun. 30, 2019	Dec. 31, 2018
Contractual Obligation Fiscal Year Maturity [Line Items]
Total		$ 692,026	$ 675,738
Remainder of 2019		80,620
2020		90,526
2021		170,874
2022		311,704
2023		214,200
Thereafter		63,537
Total		931,461
Office operating leases [Member]
Contractual Obligation Fiscal Year Maturity [Line Items]
Remainder of 2019		745
2020		1,276
2021		1,124
2022		93
Total		3,238
Marine Export Terminal capital contributions [Member]
Contractual Obligation Fiscal Year Maturity [Line Items]
Remainder of 2019	[1]	45,000
2020	[1]	19,500
Total	[1]	64,500
Secured term loan facilities and revolving credit facilities [Member]
Contractual Obligation Fiscal Year Maturity [Line Items]
Remainder of 2019		34,875
2020		69,750
2021		69,750
2022		311,611
2023		142,503
Thereafter		63,537
Total		692,026
2017 Bonds [Member]
Contractual Obligation Fiscal Year Maturity [Line Items]
2021		100,000
Total		100,000
2018 Bonds [Member]
Contractual Obligation Fiscal Year Maturity [Line Items]
2023	[2]	71,697
Total	[2]	$ 71,697

[1] On July 9, 2019, the Company made a capital contribution of $12.5 million, reducing the remaining contributions required for 2019 from $45.0 million to $32.5 million for our portion of the capital cost for the construction of the Marine Export Terminal.

[2] The Company has NOK 600 million of 2018 Bonds that mature in 2023 issued in the Norwegian Bond market (see Note 7—Senior Secured Bond). The Company has entered into a cross-currency interest rate swap agreement, to swap all interest and principal payments of the 2018 Bonds into U.S. Dollars, with the interest payments at 6.608% plus 3-month U.S. LIBOR and the transfer of the principal amount fixed at $71.7 million upon maturity in exchange for NOK 600 million (see Note 9 (Derivative Instruments Accounted for at Fair Value) to the unaudited condensed consolidated financial statements).

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Revenue Recognition

6 Months Ended

Jun. 30, 2019

Revenue Recognition [Abstract]

Revenue

2. Revenue Recognition

The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) on January 1, 2018. The Company has adopted the standard using the modified retrospective method to incorporate the cumulative effect on all contracts at the date of initial application for reporting periods presented beginning January 1, 2018. By using the modified retrospective method approach we have made an adjustment to the consolidated statement of shareholders’ equity of $3.4 million which represents the amount of net revenue that would not have been recognized in retained earnings for the year ended December 31, 2017 under ASU 2014-09.

The Company receives its revenue streams from three different sources; vessels on time charters (which are accounted for as leases under ASC 842); voyage charters; and contracts of affreightment (“COA”). With time charters, the Company receives a fixed charter hire per on-hire day and revenue is recognized on an accrual basis and is recorded over the term of the charter as the performance obligation is satisfied. In the case of voyage charters or COAs, the vessel is contracted for a voyage, or a series of voyages, between two or more ports and the Company is paid for the cargo transported. Revenue under these performance obligations is recognized on a load port to discharge port basis and determined percentage of completion for all voyage charters on a time elapsed basis. This approach differs from previous generally accepted accounting principles (“U.S. GAAP”) whereby under a voyage charter or a COA the revenue was recognized from the later of the charter party date and the date of completion of the previous discharge port until the following discharge port. This had the effect of recognizing the revenue over a shorter period of time as the performance obligation commences from the loading of the cargo rather than from the inception of the contract. The Company believes that the performance obligation towards the customer starts to become satisfied once the cargo is loaded and the obligation becomes completely satisfied once the cargo has been discharged at the discharge port. Time charter revenue is payable monthly in advance whilst revenue from voyage charters and COAs is due upon discharge of the cargo at the discharge port.

Under the revenue recognition standard, the Company has identified certain costs incurred to fulfill a contract with a charterer which are costs incurred following the commencement of a contract or charter party but before the loading of the cargo commences. These directly related costs are generally fuel or any canal or port costs to get the vessel from its position at inception of the contract to the load port to commence loading of the cargo. These costs are deferred and amortized over the duration of the performance obligation on a time basis.

In addition, contract assets relate to our conditional right to consideration for our completed performance under contracts and are recognized when the right to consideration becomes unconditional. Contract liabilities include payments received in advance of performance under contracts and are recognized when performance under the respective contract has been completed. Deferred revenues allocated to unsatisfied performance obligations will be recognized over time as the services are performed, which is expected to take place within three months from the balance sheet date.

As of June 30, 2019, for services accounted for under ASC 606, the amount of contract assets reflected within accrued income on the Company’s condensed consolidated balance sheet was $1.5 million (December 31, 2018: $4.0 million). The amount of contract liabilities was $1.8 million at June 30, 2019 (December 31, 2018: $1.7 million) and is reflected within deferred income on our condensed consolidated balance sheet.

Operating revenue

The following table compares our operating revenue by the source of revenue stream for the three and six months ended June 30, 2018 and 2019:

	Three months ended June 30, (in thousands)				Six months ended June 30, (in thousands)
	2018		2019		2018		2019
Operating revenue:
Time charters	$	44,002	$	37,735	$	86,168	$	78,357
Voyage charters (*)		29,161		35,851		64,802		71,332
Total operating revenue	$	73,163	$	73,586	$	150,970	$	149,689

* Voyage Charter revenues: Voyage charter revenues, which include revenues from contracts of affreightment, are shown net of address commissions.

The estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied, or partially unsatisfied at June 30, 2019, is $7.5 million (December 31, 2018: $19.6 million). This revenue is expected to be recognized within three months from June 30, 2019, as the performance obligations are completed.

At June 30, 2019, the amount allocated to costs incurred to fulfill a contract with a charterer which are costs incurred following the commencement of a contract or charter party but before the loading of the cargo commences is $0.6 million (December 31, 2018: $1.5 million) and is reflected on the Company’s consolidated balance sheet within prepaid expenses and other current assets. This will be recognized over the duration of the performance obligation on a time basis, which is expected to occur within three months from June 30, 2019, as the performance obligations are completed.

Time charter revenues:

As of June 30, 2019, 21 of the Company’s 38 operated vessels, were subject to time charters, twelve of which will expire within one year, five of which will expire within three years and four which will expire within nine years. The committed time charter income for future periods at June 30, 2019 is as follows:

	(in thousands)
Remainder of 2019:	$	61,285
2020:	$	82,928
2021:	$	60,974
2022:	$	43,961
2023:	$	38,667
2024 onwards:	$	69,846

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Terminal Credit Facility

6 Months Ended

Jun. 30, 2019

Line of Credit Facility [Abstract]

Terminal Credit Facility [Text Block]

5. Terminal Credit Facility

On March 29, 2019, Navigator Ethylene Terminals LLC, a wholly-owned subsidiary of the Company (the Marine Terminal Borrower”), entered into a Credit Agreement (the “Terminal Facility”) with ING Capital LLC and SG Americas Securities, LLC for a maximum principal amount of $75.0 million, to be used solely for the payment of project costs relating to our Marine Export Terminal. The Terminal Facility is comprised of an initial construction loan, followed by a term loan with a final maturity occurring on the earlier of (i) five years from completion of the Marine Export Terminal and (ii) December 31, 2025. Initial borrowing under the Terminal Facility may only occur after the Marine Terminal Borrower has made equity contributions required under the Terminal Facility to the Export Terminal Joint Venture, which together with available borrowings under the Terminal Facility, will fund its entire portion of the capital cost for the construction of the Marine Export Terminal.

The loans are subject to quarterly repayments of principal and interest beginning three months after the completion of the Marine Export Terminal. Interest on amounts drawn is payable at a rate of U.S. LIBOR plus 250 to 300 basis points per annum over the term of the facility, for interest periods of three or six months as selected by the Marine Terminal Borrower. The Terminal Facility includes events of default for the failure to achieve the completion of the Marine Export Terminal by December 31, 2020, the abandonment of all or substantially all activities relating to the Marine Export Terminal for 90

consecutive days and if certain material contracts relating to the Marine Export Terminal are terminated, as well as customary events of default including those relating to a failure to pay principal or interest, a breach of covenant, representation or warranty, a cross-default to other indebtedness and non-compliance with security documents. The loans under the Terminal Facility are secured by first priority liens on the rights to the Marine Terminal Borrower’s distributions from the Marine Terminal Joint Venture, the Marine Terminal Borrower’s assets and properties and the company’s equity interests in the Marine Terminal Borrower.

As of June 30, 2019, the Company had not drawn down on this facility, therefore there were no outstanding obligations on the Terminal Facility at the reporting date. Based on the existing committed throughput for the Marine Export Terminal, and subject to the satisfaction of certain conditions to the ability to borrow under the Terminal Facility, $36.0 million was available to be drawn down under this Credit Agreement. Available amounts are expected to increase as additional throughput agreements are committed.

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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net loss	$ (7,733)	$ (3,159)	$ (10,990)	$ (2,463)
Other Comprehensive (Loss) / Income:
Foreign currency translation (loss) / gain	18	(89)	(30)	(66)
Total Comprehensive (Loss) / Income:	$ (7,715)	$ (3,248)	$ (11,020)	$ (2,529)

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Document and Entity Information	6 Months Ended
	Jun. 30, 2019
Document and Entity Information [Abstract]
Amendment Flag	false
Document Type	6-K
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001581804
Current Fiscal Year End Date	--12-31
Entity Registrant Name	Navigator Holdings Ltd.

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Fair Value of Financial Instruments Not Accounted For at Fair Value

6 Months Ended

Jun. 30, 2019

Investments, All Other Investments [Abstract]

Fair Value of Financial Instruments Not Accounted For at Fair Value

10. Fair Value of Financial Instruments Not Accounted for at Fair Value

The principal financial assets of the Company at December 31, 2018 and June 30, 2019 consist of cash, cash equivalents and accounts receivable. The principal financial liabilities of the Company consist of accounts payable, accrued expenses and other liabilities, secured term loan facilities, revolving credit facilities, the 2017 Bonds and the 2018 Bonds.

The carrying values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other liabilities are reasonable estimates of their fair value due to the short-term nature or liquidity of these financial instruments.

Fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. The fair value accounting standard establishes a three tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2—Include other inputs that are directly or indirectly observable in the marketplace.

Level 3—Unobservable inputs which are supported by little or no market activity.

The 2017 Bonds and the 2018 Bonds are classified as a level two liability and the fair values have been calculated based on the most recent trades of the bond on the Oslo Børs prior to June 30, 2019. The 2018 Bonds are denominated in Norwegian Kroner (“NOK”) and the fair value has been translated to the functional currency of the Company using the prevailing exchange rate at June 30, 2019.

The fair value of secured term loan facilities and revolving credit facilities is estimated based on the average of the current rates offered to the Company for all debt facilities. This has been categorized at level two on the fair value measurement hierarchy.

The following table includes the estimated fair value and carrying value of those assets and liabilities. The table excludes cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other liabilities because the fair value approximates carrying value and, for accounts receivable and payable, are due in one year or less.

			December 31, 2018						June 30, 2019
Financial Asset/Liability	Fair Value Hierarchy Level		Carrying Amount Asset (Liability)			Fair Value Asset (Liability)			Carrying Amount Asset (Liability)			Fair Value Asset (Liability)
			(in thousands)
2018 Bonds (note 7)		Level 2		(69,337	)		(66,004	)		(70,289	)		(69,235	)
2017 Bonds (note 8)		Level 2		(100,000	)		(96,481	)		(100,000	)		(100,000	)
Secured term loan facilities and revolving credit facilities (note 6)		Level 2		(675,738	)		(588,713	)		(692,026	)		(592,255	)

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Terminal Credit Facility - Additional Information (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2019 USD ($)
Minimum [Member]
Basis spread on credit facility interest rate	2.50%
Terminal Credit Facility [Member]
Line of credit facility interest rate description	U.S. LIBOR plus 250 to 300 basis points per annum
Line of credit facility description of payment terms	quarterly
Terminal Credit Facility [Member] | Maximum [Member]
Basis spread on credit facility interest rate	3.00%
Terminal Credit Facility [Member] | ING Capital LLC And SG America Securities [Member] | Ethylene Marine Export Terminal [Member]
Date of commencement of the terminal credit facility	Mar. 29, 2019
Terminal credit facility maximum borrowing capacity	$ 75.0
Terminal credit facility outstanding	0.0
Line of credit facility current borrowing capacity	$ 36.0
Terminal Credit Facility [Member] | ING Capital LLC And SG America Securities [Member] | Ethylene Marine Export Terminal [Member] | Maturity Of Debt Time Two [Member]
Expiration date of line of credit facility	Dec. 31, 2025
Terminal Credit Facility [Member] | ING Capital LLC And SG America Securities [Member] | Ethylene Marine Export Terminal [Member] | Maturity Of Debt Time One [Member]
Expiration period of line of credit facility	5 years

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Vessel in Operation, Net - Vessels (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Net Book Value, ending balance	$ 1,167	$ 1,299
Vessels In Operation [Member]
Property, Plant and Equipment [Line Items]
Cost, beginning balance	2,089,278
Cost, Additions	6,556
Cost, Disposal	(3,249)
Cost, ending balance	2,092,585
Accumulated Depreciation, beginning balance	418,413
Accumulated Depreciation, Charge for the period	37,666
Accumulated Depreciation, Disposals for the period	(3,249)
Accumulated Depreciation, ending balance	452,830
Net Book Value, ending balance	1,639,755	1,670,865
Vessels In Operation [Member] | Vessel [Member]
Property, Plant and Equipment [Line Items]
Cost, beginning balance	2,057,370
Cost, Additions	1,396
Cost, ending balance	2,058,766
Accumulated Depreciation, beginning balance	400,517
Accumulated Depreciation, Charge for the period	33,925
Accumulated Depreciation, ending balance	434,442
Net Book Value, ending balance	1,624,324	1,656,853
Vessels In Operation [Member] | Drydocking [Member]
Property, Plant and Equipment [Line Items]
Cost, beginning balance	31,908
Cost, Additions	5,160
Cost, Disposal	(3,249)
Cost, ending balance	33,819
Accumulated Depreciation, beginning balance	17,896
Accumulated Depreciation, Charge for the period	3,741
Accumulated Depreciation, Disposals for the period	(3,249)
Accumulated Depreciation, ending balance	18,388
Net Book Value, ending balance	$ 15,431	$ 14,012

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Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands			3 Months Ended	6 Months Ended
	Jul. 09, 2019	Jul. 09, 2019	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Investment in equity accounted joint venture				$ 51,491	$ 10,475
Total expected capital cost of investment in joint venture			$ 93,814	93,814		$ 42,462
Operating Lease Right Of Use Assets			7,297	7,297
Operating Lease Cost			400	700
Cumulative Impact On Retaining Earnings On Adoption Of Accounting Standard				136	$ 3,352
London New York And Gdynia [Member]
Operating Lease Liabilities			7,800	7,800
Operating Lease Right Of Use Assets			$ 7,300	$ 7,300
Operating Lease Remaining Tenure			6 years 10 months 24 days	6 years 10 months 24 days
Operating Lease Weighted Average Rate Of Discount			5.56%	5.56%
Accounting Standard Update 2018-11 [Member]
Cumulative Impact On Retaining Earnings On Adoption Of Accounting Standard				$ 100
Ethylene Marine Export Terminal [Member]
Increase in current liabilities(assets) net				2,000
Investment in equity accounted joint venture				90,500
Total expected capital cost of investment in joint venture			$ 155,000	155,000
Ethylene Marine Export Terminal [Member] | Subsequent Event [Member]
Investment in equity accounted joint venture	$ 12,500	$ 12,500
March 2019 Terminal Credit Facility [Member]
Credit facility, maximum borrowing capacity			36,000	36,000
Revolving Credit Facility [Member]
Credit facility, maximum borrowing capacity			$ 35,000	$ 35,000

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Share-Based Compensation - Additional Information (Detail) - USD ($)						1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 05, 2019	Nov. 28, 2018	Mar. 20, 2018	Mar. 17, 2018	Mar. 17, 2015	Mar. 20, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Number of shares									29,898
Restricted stock unit, vesting in period									78,045		28,194
Weighted average grant value per share, vested									$ 14.36		$ 12.77
Share-based compensation costs							$ 400,689	$ 317,926	$ 746,446	$ 466,577
Vesting period									3 years
Options, vesting in period				148,387							148,387
Grant date option price, vested				$ 17.80
Options vested (in shares)							349,936		349,936
Options forfeited (in shares)											18,506
Weighted average option price											$ 24.17
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)					4 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)					6 years 6 months
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost not yet recognized							$ 2,569,942		$ 2,569,942		$ 1,387,104
Total compensation cost not yet recognized period for recognition									1 year 10 months 2 days		1 year 3 months 18 days
2013 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost not yet recognized							$ 0		$ 0		$ 0
2013 Long Term Incentive Plan [Member] | General and Administrative Costs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation costs									$ 0	$ 99,902
Non Employee Director [Member] | 2013 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Number of shares						32,550
Weighted average value, per share			$ 12.04			$ 11.06			$ 12.04
Vesting term									shares under the 2013 Plan to non-employee directors with a weighted average value of $12.04 per share. On November 28, 2018 the Company granted a further 5,000 shares to a newly appointed non-employee director with a weighted average value of $12.30. These restricted shares vest on the first anniversary of the grant date.
Restricted stock unit, vesting in period			29,898								28,194
Weighted average grant value per share, vested											$ 12.77
Share vested, total fair value									$ 336,054		$ 325,641
Officers and Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period									3 years
Share-based Compensation, expiration period									10 years
Officers and Employees [Member] | 2013 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Number of shares			96,644			141,888
Weighted average value, per share			$ 12.04			$ 11.06			$ 15.80
Restricted stock unit, vesting in period									48,147
Share vested, total fair value									$ 548,218
Newly Appointed Non-Employee Director[Member] | 2013 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock unit, vesting in period		5,000
Weighted average grant value per share, vested		$ 12.30
Employee [Member] | 2013 Long Term Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, vesting in period	6,000
Strike Price Per Share	$ 18.95

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Commitments and Contingencies - Summary of Contractual Obligations (Parenthetical) (Detail) $ in Thousands, kr in Millions			6 Months Ended		12 Months Ended
	Jul. 09, 2019 USD ($)	Jul. 09, 2019 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 NOK (kr)
Contractual Obligation Fiscal Year Maturity [Line Items]
Investment in equity accounted joint venture			$ 51,491	$ 10,475
Marine Export Terminal capital contributions [Member]
Contractual Obligation Fiscal Year Maturity [Line Items]
Investment in equity accounted joint venture			90,500
Remaining contributions required			$ 45,000
Marine Export Terminal capital contributions [Member] | Subsequent Event [Member]
Contractual Obligation Fiscal Year Maturity [Line Items]
Investment in equity accounted joint venture	$ 12,500	$ 12,500
Remaining contributions required	$ 32,500	$ 32,500
2018 Bonds [Member] | NORWAY [Member]
Contractual Obligation Fiscal Year Maturity [Line Items]
Outstanding secured borrowings					$ 71,700	kr 600
Outstanding secured borrowings, maturity year			2023
Outstanding secured borrowings ,interest rate					6.608%	6.608%
Outstanding secured borrowings ,interest rate terms					6.608% plus 3-month U.S. LIBOR

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Secured Term Loan Facilities and Revolving Credit Facilities

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Secured Term Loan Facilities and Revolving Credit Facilities

6. Secured Term Loan Facilities and Revolving Credit Facilities

March 2019 Secured Term Loan

On March 25, 2019 the Company entered into a secured term loan with Credit Agricole Corporate and Investment Bank, ING Bank N.V. London Branch and Skandinaviska Enskilda Banken AB (Publ.) for a maximum principal amount of $107.0 million (the “March 2019 Secured Term Loan”), to partially re-finance our January 2015 secured term loan facility that was due to mature in June 2020. The repayment of the loan, secured by four of our vessels was $75.6 million, leaving net proceeds of $31.4 million for fees and general corporate purposes. The facility has a term of six years from the date of the agreement and expires in March 2025, is fully drawn down and as of June 30, 2019, the amount still outstanding was $104.7 million which is repayable in equal quarterly instalments of $2.3 million with a balloon payment of $52.1 million on the final quarterly repayment date.

ASC 470-50—Debt Modifications states that if re-financing of a loan results in the present value of future cash flows being modified by more than 10%, it is considered to have ‘substantially different terms’ from the original loan and is accounted for as a debt extinguishment and the new loan treated as the issuance of new debt. The 10% cash flow test was performed, and it was concluded that the present value of future cash flows on a lender-by-lender basis have not been modified by more than 10%. Issuance costs for the March 2019 Secured Term Loan of $1.4 million have been deferred and will be amortized over the facility term on the effective rate basis.

This loan facility is secured by first priority mortgages on each of; Navigator Atlas, Navigator Europa, Navigator Oberon, and Navigator Triton as well as assignments of earnings and insurances on these secured vessels. The financial covenants each as defined within the credit facility are: a) the maintenance at all times of cash and cash equivalents in an amount equal to or greater than (i) $35.0 million, or (ii) 5% of Net Debt or total debt, as applicable, whichever is greater; and the aggregate fair market value of the collateral vessels must be no less than 130% of the aggregate outstanding borrowing under the facility. Interest on amounts drawn is payable at a rate of U.S. LIBOR plus 240 basis points per annum.

The following table shows the breakdown of secured term loan facilities and total deferred financing costs split between current and non-current liabilities at December 31, 2018 and June 30, 2019:

	December 31, 2018			June 30, 2019
	(in thousands)
Current Liability
Current portion of secured term loan facilities	$	(70,600	)	$	(69,750	)
Less: current portion of deferred financing costs		1,743			1,923
Current portion of secured term loan facilities, net of deferred financing costs	$	(68,857	)	$	(67,827	)
Non-Current Liability
Secured term loan facilities and revolving credit facilities net of current portion	$	(605,138	)	$	(622,276	)
Less: non-current portion of deferred financing costs		5,462			5,703
Non-current secured term loan facilities and revolving credit facilities, net of current portion and non-current deferred financing costs	$	(599,676	)	$	(616,573	)

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Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues
Operating revenue	$ 73,586	$ 73,163	$ 149,689	$ 150,970
Expenses
Brokerage commissions	1,233	1,219	2,542	2,360
Voyage expenses	16,437	13,930	29,794	28,908
Vessel operating expenses	27,448	26,040	56,922	52,751
Depreciation and amortization	18,913	19,029	37,861	38,410
General and administrative costs	5,195	4,812	9,997	9,258
Total operating expenses	69,226	65,030	137,116	131,687
Operating income	4,360	8,133	12,573	19,283
Other income/(expense)
Foreign currency exchange loss on senior secured bonds	(768)		(952)
Unrealized gain on non-designated derivative instruments	861		1,645
Interest expense	(12,209)	(11,353)	(24,362)	(21,877)
Interest income	205	207	420	359
Loss before income taxes and share of result of equity accounted joint venture	(7,551)	(3,013)	(10,676)	(2,235)
Income taxes	(81)	(146)	(174)	(228)
Share of result of equity accounted joint venture	(101)		(140)
Net loss	$ (7,733)	$ (3,159)	$ (10,990)	$ (2,463)
(Loss)/Earnings per share:
Basic:	$ (0.14)	$ (0.06)	$ (0.20)	$ (0.04)
Diluted:	$ (0.14)	$ (0.06)	$ (0.20)	$ (0.04)
Weighted average number of shares outstanding:
Basic:	55,832,069	55,656,304	55,756,897	55,601,772
Diluted:	55,832,069	55,656,304	55,756,897	55,601,772

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Earnings per Share

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Earnings per Share

11. Earnings per share

Basic and diluted earnings per share is calculated by dividing the net income available to common shareholders by the average number of common shares outstanding during the periods. Diluted earnings per share is calculated by adjusting the weighted average number of common shares used for calculating basic earnings per share for the effects of all potentially dilutive shares. The following table shows calculation of both basic and diluted number of weighted average outstanding shares for the three and six months ended June 30, 2018 and 2019:

	Three months ended  June 30,  (in thousands)						Six months ended  June 30,  (in thousands)
	2018			2019			2018			2019
Basic and diluted net loss available to common shareholders (in thousands)	$	(3,159	)	$	(7,733	)	$	(2,463	)	$	(10,990	)
Basic weighted average number of shares		55,656,304			55,832,069			55,601,772			55,756,897
Effect of dilutive potential share options*:		—			—			—			—
Diluted weighted average number of shares		55,656,304			55,832,069			55,601,772			55,756,897

* Due to a loss for the three months and six months ended June 30, 2018 and 2019, no incremental shares are included because the effect would be antidilutive. The number of potential dilutive shares excluded from the calculation for the three months ended June 30, 2019, is 349,936 (three months ended June 30, 2018: 343,936) and for the six months ended June 30, 2019, is 349,803 (six months ended June 30, 2018: 354,625).

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Basis of Presentation

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Basis of Presentation

1. Basis of Presentation

The accompanying Navigator Holdings Ltd. (the “Company”), unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary for a fair presentation of the financial position of the Company and its subsidiaries as of June 30, 2019; the results of operations for the three and six months ended June 30, 2018 and 2019, the statement of stockholders’ equity for the three and six months ended June 30, 2018 and 2019, and cash flows for the six months ended June 30, 2018 and 2019. Unless the context otherwise requires, all references in the unaudited condensed consolidated financial statements to “our,” “we,” and “us” refer to the Company.

As of June 30, 2019, our total current liabilities exceeded our total current assets by $2.0 million. This net current liability is primarily due to a lower cash balance as a result of losses incurred during the six months ended June 30, 2019, as well as capital contributions we made to our Export Terminal Joint Venture to fund a portion of our remaining share of the capital cost for the construction of the Marine Export Terminal. As of June 30, 2019, we had $36.0 million available under the March 2019 Terminal Credit Facility to be used solely to pay capital contributions relating to the Marine Export Terminal as well as an aggregate of $35.0 million available borrowing capacity under one of our revolving credit facilities, which, in addition to cash generated from operations, we expect will cover this net current liability shortfall of $2.0 million.

On January 31, 2018, the Company announced the execution of definitive agreements creating the Export Terminal Joint Venture. Interests in joint ventures are accounted for using the equity method. They are recognized initially at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Company’s share of the profit or loss and other comprehensive income (“OCI”) of equity-accounted investees, until the date on which significant influence or joint control ceases. As of June 30, 2019, we had contributed to the Export Terminal Joint Venture $90.5 million of our expected $155.0 million share of the capital cost of the construction for the Marine Export Terminal. On July 9, 2019, we made an additional $12.5 million capital contribution to the Export Terminal Joint Venture.

A discussion of the Company’s significant accounting policies can be found in the Company’s consolidated financial statements included in the Annual Report on Form 20-F for the year ended December 31, 2018, filed with the SEC on April 1, 2019. There have been no material changes to these policies in the six month period ended June 30, 2019, apart from the below:

On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases, (‘Topic 842’), which supersedes Topic 840, Leases and requires lessees to recognize most leases on-balance sheet and disclose key information about leasing arrangements. ASU 2016-02 was subsequently amended by ASU 2018-10, Codification Improvements to Topic 842 Leases; ASU 2018-11, Targeted Improvements, which clarifies and corrects errors in ASC 842; and ASU 2018-20, Narrow-Scope Improvements for Lessors. The effective date and transition requirements in ASU 2018-10, ASU 2018-11 and ASU 2018-20 are the same as the effective date and transition requirements of ASU 2016-02.

The Company has elected all of the standard’s practical expedients in ASC 842-10-65-1(f) as a package on adoption. We have not elected the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available.

We used the effective date as our date of initial application. Consequently, for dates and periods prior to January 1, 2019, financial information will not be updated, and the disclosures required under the new standard will not be provided.

The new standard established a right-of use (“ROU”) model that requires a lessee to recognize a ROU asset, representing the right to use the asset for a specified period of time and corresponding lease liability on the balance sheet for all leases with a term longer than 12 months. Existing leases with a contracted term of less than 12 months on January 1, 2019 are classified as short-term leases on adoption of the new standard and qualify for an exemption from recognizing ROU assets or lease liabilities for periods presented after January 1, 2019. Leases for lessees under ASU 2016-02 are classified as financing or operating, with classification affecting the pattern and classification of expense recognition in the income statement.

Under ASU 2016-02 we have recognized new ROU assets and liabilities on our balance sheet for our operating leases, relating to long-term commitments for our offices in London, New York and Gdynia. At the adoption date of January 1, 2019, we had no short-term lease commitments. Lease liabilities and right-of-use assets for operating leases are initially measured at the present

value of the lease payments not yet paid, discounted using the discount rate for the lease determined at the later of the date of initial application or the lease commencement date. As a lessee, the Company has elected not to separate lease and non-lease components pertaining to operating lease payments. The discount rate used is the Company’s incremental borrowing rate, defined as the rate of interest that the Company as lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Consequently, operating lease liabilities of $7.8 million, based on the present value of the remaining minimum rental payments; and ROU assets of $7.3 million have been recognized on the Company’s unaudited condensed consolidated balance sheet as of June 30, 2019, with accretion of the liabilities and amortization of the ROU assets over the remaining length of the lease terms. At June 30, 2019, based on the remaining lease liabilities, the weighted average remaining lease term was 6.9 years. At June 30, 2019, the weighted average discount rate across the three leases was 5.56%.

The lease for our office in Poland is subject to annual indexation each January according to the Eurozone All Items Monetary Union Index of Consumer Prices (“MUICP”) index as quoted for the previous year. ASU 2016-02 requires lessees to include such variable lease payments in the value of the remaining lease payments and, therefore, in the measurement of a lessee’s lease liabilities at the adoption date of January 1, 2019. The lease payments relating to the Poland office lease are not remeasured at the beginning of each year, the effect of future increases in MUICP are recognized as part of lease-related costs in each year and classified as variable lease costs. For the three and six months ended June 30, 2019, total operating lease costs were $0.4 million and $0.7 million respectively, which include immaterial variable lease costs and are presented within General and Administrative costs within these unaudited condensed consolidated statements of income and cash flows from operating activities within the unaudited condensed consolidated statements of cash flows.

The new standard also requires lessors to classify leases as a sales-type, direct financing, or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease in effect, transfers control of the underlying assets to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third-party, the lease is a direct financing lease. All lessor leases that are not sales-type or direct financing leases are operating leases.

For the Company as a lessor, in applying ASU 2016-02, we believe that our vessels contracted under voyage charters or contracts of affreightment do not qualify as leases, as the charterer does not have the right to operate the asset and we maintain the right to direct the use of the asset during the period of charter hire. Vessels on time charters will continue to qualify as operating leases, when the charterer has the right to obtain substantially all of the benefits and can direct how and for what purposes the vessel will be used, and the Company has no substantive substitution rights. Time charters do not qualify as direct finance leases under ASU 2016-02 as the present value of the sum of the lease payments does not exceed the fair value of the underlying vessel.

The Company has elected, as a package, the practical expedients available in ASC 842-10-65-1(f) to not re-assess whether any existing or expired contracts are, or contain leases, for voyages in progress at the adoption date of January 1, 2019. We have assessed new charter contracts signed after the adoption date for whether they are, or contain, leases and should be recognized under ASU 2016-02. Charter contracts that do not contain a lease will be accounted for under Topic 606. Please read Note 2— (Revenue Recognition) to the unaudited condensed consolidated financial statements. The adoption of ASU 2016-02 has not resulted in a change to the classification of time charters, voyage charters or contracts of affreightment, the period over which we recognize revenue and, as a lessor, there has been no significant impact on our consolidated financial statements or cash flows as a result.

On January 1, 2019, the Company adopted ASU 2018-11, Leases—Targeted Improvements, which contains an amendment to ASU 2016-02 that would allow lessors to elect, as a practical expedient, by class of underlying asset, not to separate lease and non-lease components of a contract. The amendment allows these components to be accounted for as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic 606) and both of the following are met: (i) the timing and pattern of transfer for the lease component and non-lease components associated with that lease component are the same and (ii) the lease component, if accounted for separately, would be classified as an operating lease. Also, the ASU states that if the non-lease component or components associated with the lease component are the predominant component of the combined component, an entity should account for the combined component in accordance with Topic 606. Otherwise, the entity should account for the combined component as an operating lease in accordance with Topic 842. The Company has elected the package of practical expedients, as mentioned above. In addition, the Company has performed a qualitative analysis of each of its time charter contracts to determine whether the lease or non-lease component is the predominant component of the contract. The Company concluded that the lease component is the predominant component as the lessee would attribute more value to the ability to direct the use of the vessel rather than to the technical and crewing services to operate the vessel which are add-on services to the lessee. Accordingly, revenue from vessels under time charters, which are accounted as lease revenue for under ASC 842, are presented as a single lease component.

ASU 2018-11 also created a new, optional, transition method for implementing ASU 2016-02, which can only be adopted by entities either at (1) the beginning of the company’s first reporting period after issuance or (2) the entity’s mandatory ASU 2016-02 effective date. This choice of method affects only the timing of when an entity applies the transition provisions. The Company has applied this optional transitional method on January 1, 2019. Under this transition method, a cumulative-effect adjustment to the consolidated statement of shareholder’s equity of $0.1 million was recorded which represents the amounts of expense that would not have been recognized in retained earnings for the year ended December 31, 2018. The presentation of the consolidated financial statements for comparative periods has remained unchanged.

On January 1, 2019, the Company adopted ASU 2019-01, Leases (Topic 842); Codification Improvements, which, amongst other things, aligns the guidance in Topic 842 for determining fair value and its application to lease classification and measurement for lessors that are not manufacturers or dealers with that of existing guidance; and clarifies that lessees and lessors are exempt from a certain interim disclosure requirement associated with adopting the new leases standard within the fiscal year of adoption. This standard is effective on adoption of ASU 2016-02, the new leasing standard. The company adopted ASU 2016-02 and ASU 2019-01 on January 1, 2019. Accordingly, interim disclosures about the effect on income of adoption of ASC 842 are excluded from the required disclosures in these unaudited financial statements, in a manner similar to the annual disclosures in ASC 250-10-50-1(b)(2).

On January 1, 2019, the Company adopted ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which more closely aligns the accounting for employee and nonemployee share-based payments. We adopted the new standard with effect from January 1, 2019, and the adoption of this standard did not have an impact on our unaudited condensed consolidated financial statements and related disclosures.

In August 2018, the SEC adopted final rules under SEC Release No. 33-10532, Disclosure Update and Simplification (“DUSTR”), amending and expanding certain disclosure requirements. The DUSTR rules became effective on November 5, 2018 and must be applied to any filings after that date. The rules require, among other things, that registrants include in their interim financial statements a reconciliation of changes in shareholders’ equity in the notes or as a separate statement that reconciles the beginning balance to the ending balance of each caption in shareholders’ equity for each period for which an income statement is required to be filed. The Company has applied the new SEC disclosure requirements to these unaudited condensed consolidated financial statements.

These unaudited condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance U.S. GAAP for interim reporting. As such, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. It is recommended that these financial statements be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2018 included in our Form 20-F filed on April 1, 2019. The results for the three and six months ended June 30, 2019 are not necessarily indicative of results for the full 2019 fiscal year or any other future periods.

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses, which changes the recognition model for the impairment of financial instruments, including accounts receivable, loans and held-to-maturity debt securities, among others. ASU 2016-13 is required to be adopted by public business entities using the modified retrospective method for periods beginning after December 15, 2019, with early adoption permitted for fiscal periods beginning after December 15, 2018. We plan to adopt ASU 2016-13 on January 1, 2020 and we are currently assessing the impact that this update will have on our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement, (Topic 820), which modifies the disclosure requirements for financial instruments measured at fair value. ASU 2018-13 is required to be adopted for public business entities by January 1, 2020, with early adoption permitted from the date of issuance of ASU 2018-13. We plan to adopt ASU 2018-13 on January 1, 2020 and we are currently assessing the impact that this update will have on our consolidated financial statements.

In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810), which contains updated guidance for the financial reporting associated with consolidation of variable interest entities (VIEs). ASU 2018-17 is required to be adopted for public business entities by January 1, 2020. We plan to adopt ASU 2018-17 on January 1, 2020 and we are currently assessing the impact that this update will have on our consolidated financial statements.

In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses which, amongst other things, clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the lease standard, ASU 2016-02. ASU 2018-19 is required to be adopted at the same time as ASU 2016-13. We plan to adopt both standards on January 1, 2020 and we are currently assessing the impact that this update will have on our consolidated financial statements.

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments which, amongst other things, clarifies certain aspects of accounting for credit losses, hedging activities and financial instruments respectively. The amendments within ASU 2019-04 have various effective dates of adoption. The amendments within ASU 2019-04 relating to Topic 815, Derivatives and Hedging are effective from the first annual reporting period beginning after April 25, 2019, which for the Company, will be the period ending December 31, 2020 and we plan to adopt the amendments on that date. The Company has no derivatives for which hedge accounting has been applied and as such, the amendments contained in this section of ASU 2019-04 are not applicable and will have no impact on our consolidated financial statements on adoption. The amendments relating to Topic 326 and Topic 825 are required to be adopted by public business entities for periods after December 15, 2019. We plan to adopt these amendments on January 1, 2020 and we are currently assessing the impact that the updates will have on our consolidated financial statements.

In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief which provides transition relief for entities adopting the credit losses standard, ASU 2016-13. Specifically, ASU 2019-05 amends ASU 2016-13 to allow companies to irrevocably elect, on adoption of ASU 2016-13, the fair value option for financial instruments that were previously recorded at amortized cost, are within the scope of the guidance in ASC 326-20, are eligible for the fair value option under ASC 825-20 and are not held-to-maturity debt securities. ASU 2019-05 is required to be adopted at the same time as ASU 2016-13. We plan to adopt both ASU 2016-13 and ASU 2019-05 on January 1, 2020 and we are currently assessing the impact that this update will have on our consolidated financial statements.

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Revenue Recognition - Summary of Future Committed Revenue from Contracts with Customers, Arising from Remaining Performance Obligations (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total committed revenue	$ 7,500	$ 19,600
Remainder of 2019: [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total committed revenue	61,285
2020 [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total committed revenue	82,928
2021 [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total committed revenue	60,974
2022 [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total committed revenue	43,961
2023 [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total committed revenue	38,667
2024 onwards: [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Total committed revenue	$ 69,846

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Summary of Contractual Obligations

The contractual obligations schedule set forth below summarizes our contractual obligations excluding interest payable as of June 30, 2019.

	Remainder of 2019		2020		2021		2022		2023		Thereafter		Total
			(in thousands)
Marine Export Terminal capital contributions*		45,000		19,500		—		—		—		—		64,500
Secured term loan facilities and revolving credit facilities		34,875		69,750		69,750		311,611		142,503		63,537		692,026
2017 Bonds		—		—		100,000		—		—		—		100,000
2018 Bonds**		—		—		—		—		71,697		—		71,697
Office operating leases		745		1,276		1,124		93		—		—		3,238
Total contractual obligations	$	80,620	$	90,526	$	170,874	$	311,704	$	214,200	$	63,537	$	931,461

* On July 9, 2019, the Company made a capital contribution of $12.5 million, reducing the remaining contributions required for 2019 from $45.0 million to $32.5 million for our portion of the capital cost for the construction of the Marine Export Terminal.

** The Company has NOK 600 million of 2018 Bonds that mature in 2023 issued in the Norwegian Bond market (see Note 7—Senior Secured Bond). The Company has entered into a cross-currency interest rate swap agreement, to swap all interest and principal payments of the 2018 Bonds into U.S. Dollars, with the interest payments at 6.608% plus 3-month U.S. LIBOR and the transfer of the principal amount fixed at $71.7 million upon maturity in exchange for NOK 600 million (see Note 9 (Derivative Instruments Accounted for at Fair Value) to the unaudited condensed consolidated financial statements).

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Investment in Equity Accounted Joint Venture - Additional Information (Detail)	Jun. 30, 2019
Ethylene Marine Export Terminal [Member]
Schedule of Equity Method Investments [Line Items]
Economic interest in building and operating marine export terminal	50.00%

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Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

Restricted Share Grant Activity

Restricted share grant activity for the year ended December 31, 2018 and six months ended June 30, 2019 was as follows:

	Number of non-vested restricted shares			Weighted average grant date fair value		Weighted average remaining contractual term
Balance as of January 1, 2018		143,513		$	13.82		1.49 years
Granted		131,542			12.04
Vested		(28,194	)		12.77
Forfeited		(3,673	)		14.16
Balance as of December 31, 2018		243,188		$	12.98		1.30 years
Granted		174,438			11.06
Vested		(78,045	)		14.36
Balance as of June 30, 2019		339,581		$	11.68		1.84 years

Summary of Stock Option Activity

The movement in the existing share options for the year ended December 31, 2018 and the six months ended June 30, 2019 was as follows:

Options	Number of non-vested options			Weighted average exercise price per share		Weighted average remaining contractual term years		Aggregate intrinsic value
Balance as of January 1, 2018		154,685		$	17.80		6.70		—
Forfeited during the year		(6,298	)		23.85		—		—
Vested		(148,387	)		—		—		—
Balance as of December 31, 2018		—			—		—	$	—
Granted during the period		6,000			18.95		5.52		—
Vested		—			—		—		—
Balance as of June 30, 2019		6,000			18.95		5.52	$	—

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Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying Navigator Holdings Ltd. (the “Company”), unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary for a fair presentation of the financial position of the Company and its subsidiaries as of June 30, 2019; the results of operations for the three and six months ended June 30, 2018 and 2019, the statement of stockholders’ equity for the three and six months ended June 30, 2018 and 2019, and cash flows for the six months ended June 30, 2018 and 2019. Unless the context otherwise requires, all references in the unaudited condensed consolidated financial statements to “our,” “we,” and “us” refer to the Company.

As of June 30, 2019, our total current liabilities exceeded our total current assets by $2.0 million. This net current liability is primarily due to a lower cash balance as a result of losses incurred during the six months ended June 30, 2019, as well as capital contributions we made to our Export Terminal Joint Venture to fund a portion of our remaining share of the capital cost for the construction of the Marine Export Terminal. As of June 30, 2019, we had $36.0 million available under the March 2019 Terminal Credit Facility to be used solely to pay capital contributions relating to the Marine Export Terminal as well as an aggregate of $35.0 million available borrowing capacity under one of our revolving credit facilities, which, in addition to cash generated from operations, we expect will cover this net current liability shortfall of $2.0 million.

On January 31, 2018, the Company announced the execution of definitive agreements creating the Export Terminal Joint Venture. Interests in joint ventures are accounted for using the equity method. They are recognized initially at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Company’s share of the profit or loss and other comprehensive income (“OCI”) of equity-accounted investees, until the date on which significant influence or joint control ceases. As of June 30, 2019, we had contributed to the Export Terminal Joint Venture $90.5 million of our expected $155.0 million share of the capital cost of the construction for the Marine Export Terminal. On July 9, 2019, we made an additional $12.5 million capital contribution to the Export Terminal Joint Venture.

A discussion of the Company’s significant accounting policies can be found in the Company’s consolidated financial statements included in the Annual Report on Form 20-F for the year ended December 31, 2018, filed with the SEC on April 1, 2019. There have been no material changes to these policies in the six month period ended June 30, 2019, apart from the below:

On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases, (‘Topic 842’), which supersedes Topic 840, Leases and requires lessees to recognize most leases on-balance sheet and disclose key information about leasing arrangements. ASU 2016-02 was subsequently amended by ASU 2018-10, Codification Improvements to Topic 842 Leases; ASU 2018-11, Targeted Improvements, which clarifies and corrects errors in ASC 842; and ASU 2018-20, Narrow-Scope Improvements for Lessors. The effective date and transition requirements in ASU 2018-10, ASU 2018-11 and ASU 2018-20 are the same as the effective date and transition requirements of ASU 2016-02.

The Company has elected all of the standard’s practical expedients in ASC 842-10-65-1(f) as a package on adoption. We have not elected the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available.

We used the effective date as our date of initial application. Consequently, for dates and periods prior to January 1, 2019, financial information will not be updated, and the disclosures required under the new standard will not be provided.

The new standard established a right-of use (“ROU”) model that requires a lessee to recognize a ROU asset, representing the right to use the asset for a specified period of time and corresponding lease liability on the balance sheet for all leases with a term longer than 12 months. Existing leases with a contracted term of less than 12 months on January 1, 2019 are classified as short-term leases on adoption of the new standard and qualify for an exemption from recognizing ROU assets or lease liabilities for periods presented after January 1, 2019. Leases for lessees under ASU 2016-02 are classified as financing or operating, with classification affecting the pattern and classification of expense recognition in the income statement.

Under ASU 2016-02 we have recognized new ROU assets and liabilities on our balance sheet for our operating leases, relating to long-term commitments for our offices in London, New York and Gdynia. At the adoption date of January 1, 2019, we had no short-term lease commitments. Lease liabilities and right-of-use assets for operating leases are initially measured at the present

value of the lease payments not yet paid, discounted using the discount rate for the lease determined at the later of the date of initial application or the lease commencement date. As a lessee, the Company has elected not to separate lease and non-lease components pertaining to operating lease payments. The discount rate used is the Company’s incremental borrowing rate, defined as the rate of interest that the Company as lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Consequently, operating lease liabilities of $7.8 million, based on the present value of the remaining minimum rental payments; and ROU assets of $7.3 million have been recognized on the Company’s unaudited condensed consolidated balance sheet as of June 30, 2019, with accretion of the liabilities and amortization of the ROU assets over the remaining length of the lease terms. At June 30, 2019, based on the remaining lease liabilities, the weighted average remaining lease term was 6.9 years. At June 30, 2019, the weighted average discount rate across the three leases was 5.56%.

The lease for our office in Poland is subject to annual indexation each January according to the Eurozone All Items Monetary Union Index of Consumer Prices (“MUICP”) index as quoted for the previous year. ASU 2016-02 requires lessees to include such variable lease payments in the value of the remaining lease payments and, therefore, in the measurement of a lessee’s lease liabilities at the adoption date of January 1, 2019. The lease payments relating to the Poland office lease are not remeasured at the beginning of each year, the effect of future increases in MUICP are recognized as part of lease-related costs in each year and classified as variable lease costs. For the three and six months ended June 30, 2019, total operating lease costs were $0.4 million and $0.7 million respectively, which include immaterial variable lease costs and are presented within General and Administrative costs within these unaudited condensed consolidated statements of income and cash flows from operating activities within the unaudited condensed consolidated statements of cash flows.

The new standard also requires lessors to classify leases as a sales-type, direct financing, or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease in effect, transfers control of the underlying assets to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third-party, the lease is a direct financing lease. All lessor leases that are not sales-type or direct financing leases are operating leases.

For the Company as a lessor, in applying ASU 2016-02, we believe that our vessels contracted under voyage charters or contracts of affreightment do not qualify as leases, as the charterer does not have the right to operate the asset and we maintain the right to direct the use of the asset during the period of charter hire. Vessels on time charters will continue to qualify as operating leases, when the charterer has the right to obtain substantially all of the benefits and can direct how and for what purposes the vessel will be used, and the Company has no substantive substitution rights. Time charters do not qualify as direct finance leases under ASU 2016-02 as the present value of the sum of the lease payments does not exceed the fair value of the underlying vessel.

The Company has elected, as a package, the practical expedients available in ASC 842-10-65-1(f) to not re-assess whether any existing or expired contracts are, or contain leases, for voyages in progress at the adoption date of January 1, 2019. We have assessed new charter contracts signed after the adoption date for whether they are, or contain, leases and should be recognized under ASU 2016-02. Charter contracts that do not contain a lease will be accounted for under Topic 606. Please read Note 2— (Revenue Recognition) to the unaudited condensed consolidated financial statements. The adoption of ASU 2016-02 has not resulted in a change to the classification of time charters, voyage charters or contracts of affreightment, the period over which we recognize revenue and, as a lessor, there has been no significant impact on our consolidated financial statements or cash flows as a result.

On January 1, 2019, the Company adopted ASU 2018-11, Leases—Targeted Improvements, which contains an amendment to ASU 2016-02 that would allow lessors to elect, as a practical expedient, by class of underlying asset, not to separate lease and non-lease components of a contract. The amendment allows these components to be accounted for as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic 606) and both of the following are met: (i) the timing and pattern of transfer for the lease component and non-lease components associated with that lease component are the same and (ii) the lease component, if accounted for separately, would be classified as an operating lease. Also, the ASU states that if the non-lease component or components associated with the lease component are the predominant component of the combined component, an entity should account for the combined component in accordance with Topic 606. Otherwise, the entity should account for the combined component as an operating lease in accordance with Topic 842. The Company has elected the package of practical expedients, as mentioned above. In addition, the Company has performed a qualitative analysis of each of its time charter contracts to determine whether the lease or non-lease component is the predominant component of the contract. The Company concluded that the lease component is the predominant component as the lessee would attribute more value to the ability to direct the use of the vessel rather than to the technical and crewing services to operate the vessel which are add-on services to the lessee. Accordingly, revenue from vessels under time charters, which are accounted as lease revenue for under ASC 842, are presented as a single lease component.

ASU 2018-11 also created a new, optional, transition method for implementing ASU 2016-02, which can only be adopted by entities either at (1) the beginning of the company’s first reporting period after issuance or (2) the entity’s mandatory ASU 2016-02 effective date. This choice of method affects only the timing of when an entity applies the transition provisions. The Company has applied this optional transitional method on January 1, 2019. Under this transition method, a cumulative-effect adjustment to the consolidated statement of shareholder’s equity of $0.1 million was recorded which represents the amounts of expense that would not have been recognized in retained earnings for the year ended December 31, 2018. The presentation of the consolidated financial statements for comparative periods has remained unchanged.

On January 1, 2019, the Company adopted ASU 2019-01, Leases (Topic 842); Codification Improvements, which, amongst other things, aligns the guidance in Topic 842 for determining fair value and its application to lease classification and measurement for lessors that are not manufacturers or dealers with that of existing guidance; and clarifies that lessees and lessors are exempt from a certain interim disclosure requirement associated with adopting the new leases standard within the fiscal year of adoption. This standard is effective on adoption of ASU 2016-02, the new leasing standard. The company adopted ASU 2016-02 and ASU 2019-01 on January 1, 2019. Accordingly, interim disclosures about the effect on income of adoption of ASC 842 are excluded from the required disclosures in these unaudited financial statements, in a manner similar to the annual disclosures in ASC 250-10-50-1(b)(2).

On January 1, 2019, the Company adopted ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which more closely aligns the accounting for employee and nonemployee share-based payments. We adopted the new standard with effect from January 1, 2019, and the adoption of this standard did not have an impact on our unaudited condensed consolidated financial statements and related disclosures.

In August 2018, the SEC adopted final rules under SEC Release No. 33-10532, Disclosure Update and Simplification (“DUSTR”), amending and expanding certain disclosure requirements. The DUSTR rules became effective on November 5, 2018 and must be applied to any filings after that date. The rules require, among other things, that registrants include in their interim financial statements a reconciliation of changes in shareholders’ equity in the notes or as a separate statement that reconciles the beginning balance to the ending balance of each caption in shareholders’ equity for each period for which an income statement is required to be filed. The Company has applied the new SEC disclosure requirements to these unaudited condensed consolidated financial statements.

These unaudited condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance U.S. GAAP for interim reporting. As such, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. It is recommended that these financial statements be read in conjunction with our consolidated financial statements and notes thereto for the year ended December 31, 2018 included in our Form 20-F filed on April 1, 2019. The results for the three and six months ended June 30, 2019 are not necessarily indicative of results for the full 2019 fiscal year or any other future periods.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses, which changes the recognition model for the impairment of financial instruments, including accounts receivable, loans and held-to-maturity debt securities, among others. ASU 2016-13 is required to be adopted by public business entities using the modified retrospective method for periods beginning after December 15, 2019, with early adoption permitted for fiscal periods beginning after December 15, 2018. We plan to adopt ASU 2016-13 on January 1, 2020 and we are currently assessing the impact that this update will have on our consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement, (Topic 820), which modifies the disclosure requirements for financial instruments measured at fair value. ASU 2018-13 is required to be adopted for public business entities by January 1, 2020, with early adoption permitted from the date of issuance of ASU 2018-13. We plan to adopt ASU 2018-13 on January 1, 2020 and we are currently assessing the impact that this update will have on our consolidated financial statements.

In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810), which contains updated guidance for the financial reporting associated with consolidation of variable interest entities (VIEs). ASU 2018-17 is required to be adopted for public business entities by January 1, 2020. We plan to adopt ASU 2018-17 on January 1, 2020 and we are currently assessing the impact that this update will have on our consolidated financial statements.

In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses which, amongst other things, clarifies that receivables arising from operating leases are not within the scope of the credit losses standard, but rather, should be accounted for in accordance with the lease standard, ASU 2016-02. ASU 2018-19 is required to be adopted at the same time as ASU 2016-13. We plan to adopt both standards on January 1, 2020 and we are currently assessing the impact that this update will have on our consolidated financial statements.

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments which, amongst other things, clarifies certain aspects of accounting for credit losses, hedging activities and financial instruments respectively. The amendments within ASU 2019-04 have various effective dates of adoption. The amendments within ASU 2019-04 relating to Topic 815, Derivatives and Hedging are effective from the first annual reporting period beginning after April 25, 2019, which for the Company, will be the period ending December 31, 2020 and we plan to adopt the amendments on that date. The Company has no derivatives for which hedge accounting has been applied and as such, the amendments contained in this section of ASU 2019-04 are not applicable and will have no impact on our consolidated financial statements on adoption. The amendments relating to Topic 326 and Topic 825 are required to be adopted by public business entities for periods after December 15, 2019. We plan to adopt these amendments on January 1, 2020 and we are currently assessing the impact that the updates will have on our consolidated financial statements.

In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief which provides transition relief for entities adopting the credit losses standard, ASU 2016-13. Specifically, ASU 2019-05 amends ASU 2016-13 to allow companies to irrevocably elect, on adoption of ASU 2016-13, the fair value option for financial instruments that were previously recorded at amortized cost, are within the scope of the guidance in ASC 326-20, are eligible for the fair value option under ASC 825-20 and are not held-to-maturity debt securities. ASU 2019-05 is required to be adopted at the same time as ASU 2016-13. We plan to adopt both ASU 2016-13 and ASU 2019-05 on January 1, 2020 and we are currently assessing the impact that this update will have on our consolidated financial statements.

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Secured Term Loan Facilities and Revolving Credit Facilities (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Breakdown of Secured Term Loan Facilities and Total Deferred Financing Costs Split Between Current and Non-Current Liabilities

The following table shows the breakdown of secured term loan facilities and total deferred financing costs split between current and non-current liabilities at December 31, 2018 and June 30, 2019:

	December 31, 2018			June 30, 2019
	(in thousands)
Current Liability
Current portion of secured term loan facilities	$	(70,600	)	$	(69,750	)
Less: current portion of deferred financing costs		1,743			1,923
Current portion of secured term loan facilities, net of deferred financing costs	$	(68,857	)	$	(67,827	)
Non-Current Liability
Secured term loan facilities and revolving credit facilities net of current portion	$	(605,138	)	$	(622,276	)
Less: non-current portion of deferred financing costs		5,462			5,703
Non-current secured term loan facilities and revolving credit facilities, net of current portion and non-current deferred financing costs	$	(599,676	)	$	(616,573	)

Senior Secured Bonds [Member]

Schedule of Breakdown of Secured Term Loan Facilities and Total Deferred Financing Costs Split Between Current and Non-Current Liabilities

The following table shows the breakdown of our senior secured bond and total deferred financing costs as of December 31, 2018 and June 30, 2019:

	December 31, 2018			June 30, 2019
	(in thousands)
Senior Secured Bond
Total NOK 600 million Bond, translated at prevailing rate	$	(69,337	)	$	(70,289	)
Less deferred financing costs		959			978
Total Bond, net of deferred financing costs	$	(68,378	)	$	(69,311	)

2017 Senior Unsecured Bonds [Member]

Schedule of Breakdown of Secured Term Loan Facilities and Total Deferred Financing Costs Split Between Current and Non-Current Liabilities

The following table shows the breakdown of our senior unsecured bond and total deferred financing costs at December 31, 2018 and June 30, 2019:

	December 31, 2018			June 30, 2019
	(in thousands)
Senior Unsecured Bond
Total Bond	$	(100,000	)	$	(100,000	)
Less deferred financing costs		961			734
Total Bond, net of deferred financing costs	$	(99,039	)	$	(99,266	)

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Senior Unsecured Bond - Additional Information (Detail) - USD ($)		6 Months Ended
	Feb. 10, 2017	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Minimum liquidity to be maintained, amount		$ 47,285,000	$ 71,515,000
2017 Senior Unsecured Bonds [Member]
Debt Instrument [Line Items]
Aggregate principal amount	$ 100,000,000.0
Interest rate on bond	7.75%	7.75%
Debt instrument maturity date	Feb. 10, 2021
Debt instrument redemption description		The Company may redeem the 2017 Bonds, in whole or in part, at any time. Any 2017 Bonds redeemed until February 10, 2020, are redeemable at 103.875% of par, from February 11, 2020 until August 10, 2020, are redeemable at 101.9375% of par, and from August 11, 2020 to the maturity date are redeemable at 100% of par, in each case, plus accrued interest.
Additional bonds issuance option, maximum amount		$ 100,000,000.0
Debt instrument covenant description
2017 Senior Unsecured Bonds [Member] | February 11, 2019 through February 10, 2020 [Member]
Debt Instrument [Line Items]
Debt instrument redeemable percentage	103.875%
2017 Senior Unsecured Bonds [Member] | February 11, 2020 through August 10, 2020 [Member]
Debt Instrument [Line Items]
Debt instrument redeemable percentage	101.9375%
2017 Senior Unsecured Bonds [Member] | August 11, 2020 through Maturity Date [Member]
Debt Instrument [Line Items]
Debt instrument redeemable percentage	100.00%
Interest payment description on bond		Interest is payable semi-annually in arrears on February 10 and August 10.
2017 Senior Unsecured Bonds [Member] | Redemption of Bonds [Member]
Debt Instrument [Line Items]
Debt instrument redeemable percentage		101.00%
2012 Senior Unsecured Bonds [Member]
Debt Instrument [Line Items]
Interest rate on bond	9.00%	9.00%
7.75% Senior Unsecured Bond [Member]
Debt Instrument [Line Items]
Minimum liquidity to be maintained, amount		$ 25,000,000.0
Interest coverage ratio		2.25%
Gross Equity ratio		30.00%
Dividend payable percentage		50.00%

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Secured Term Loan Facilities and Revolving Credit Facilities - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended
	Mar. 25, 2019	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Cash balance required		$ 47,285	$ 71,515
January 2015 Secured Term Loan Facility [Member]
Debt Instrument [Line Items]
Credit facility term	6 years
Credit facility, periodic payment	$ 31,400
Credit facility, final payment	$ 75,600
Aggregate fair value of collateral vehicles required for borrowings under facility	130.00%
Credit facility, expiring period	2025-03
January 2015 Secured Term Loan Facility [Member] | Minimum [Member]
Debt Instrument [Line Items]
Cash balance required	$ 35,000
March 2019 Terminal Credit Agreement [Member]
Debt Instrument [Line Items]
Credit facility, amount outstanding		104,700
Credit facility, periodic payment		$ 2,300
Frequency Of Instalment Payments		repayable in equal quarterly instalments
March 2019 Secured Term Loan [Member
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity	107,000
Debt instrument covenant description		an amount equal to or greater than (i) $35.0 million, or (ii) 5% of Net Debt or total debt, as applicable, whichever is greater; and the aggregate fair market value of the collateral vessels must be no less than 130% of the aggregate outstanding borrowing under the facility.
Final Payment Payable		$ 52,100
Debt Issuance Costs, Net	$ 1,400
March 2019 Secured Term Loan [Member | ASC 47050 [Member]
Debt Instrument [Line Items]
Description Of Debt Modification Conditions		ASC 470-50—Debt Modifications states that if re-financing of a loan results in the present value of future cash flows being modified by more than 10%, it is considered to have ‘substantially different terms’ from the original loan and is accounted for as a debt extinguishment and the new loan treated as the issuance of new debt. The 10% cash flow test was performed, and it was concluded that the present value of future cash flows on a lender-by-lender basis have not been modified by more than 10%. Issuance costs for the March 2019

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Fair Value of Financial Instruments Not Accounted For at Fair Value - Schedule of Estimated Fair Value and Carrying Value of Assets and Liabilities Measured at Fair Value on Recurring Basis, Non-recurring Basis (Detail) - USD ($) $ in Thousands		Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Secured term loan facilities and revolving credit facility, Carrying Amount (Liability)		$ (692,026)	$ (675,738)
2018 Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Bonds, Carrying amount		(70,289)	(69,337)
Secured term loan facilities and revolving credit facility, Carrying Amount (Liability)	[1]	(71,697)
2017 Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Bonds, Carrying Amount		(100,000)	(100,000)
Secured term loan facilities and revolving credit facility, Carrying Amount (Liability)		(100,000)
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Secured term loan facilities and revolving credit facility, Carrying Amount (Liability)		(100,000)	(96,481)
Senior unsecured bond, Fair Value (Liability)		(69,235)	(66,004)
Secured term loan facilities and revolving credit facility, Fair Value (Liability)		$ (592,255)	$ (588,713)

[1] The Company has NOK 600 million of 2018 Bonds that mature in 2023 issued in the Norwegian Bond market (see Note 7—Senior Secured Bond). The Company has entered into a cross-currency interest rate swap agreement, to swap all interest and principal payments of the 2018 Bonds into U.S. Dollars, with the interest payments at 6.608% plus 3-month U.S. LIBOR and the transfer of the principal amount fixed at $71.7 million upon maturity in exchange for NOK 600 million (see Note 9 (Derivative Instruments Accounted for at Fair Value) to the unaudited condensed consolidated financial statements).

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Share-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($)		6 Months Ended	12 Months Ended
	Mar. 17, 2018	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2017	Jan. 01, 2018
Options
Beginning Balance			154,685
Vested	(148,387)		(148,387)
Forfeited during the period			(6,298)
Granted during the period		$ 6,000
Ending Balance		6,000		154,685
Weighted-Average Exercise Price
Beginning Balance			$ 17.80
Forfeited during the period			$ 23.85
Granted during the period		18.95
Ending Balance		$ 18.95		$ 17.80
Weighted-Average Remaining Contractual Term (years)
Weighted-Average Remaining Contractual Term (years)		5 years 6 months 7 days		6 years 8 months 12 days
Granted during the period		5 years 6 months 7 days
Aggregate Intrinsic Value		$ 0	$ 0		$ 0

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Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		6 Months Ended
	Oct. 21, 2019	Sep. 30, 2019	Jun. 30, 2019
Subsequent Event [Member]
Subsequent Event [Line Items]
Sale value of property	$ 77,500
Proceeds from sale of property in percent to sale value	90.00%
Proceeds from sale of property in value to sale value	$ 69,750
Credit from sale of property in percent to sale value	10.00%
Repayment of secured debt	$ 44,500
Bareboat charter agreement period	13 years
Bareboat charter agreement description	the Company entered into a bareboat charter for the vessel for a period of up to 13 years, with break clauses at years 5, 7 and 10
2017 Senior Unsecured Bonds [Member]
Subsequent Event [Line Items]
Debt instrument covenant description
2017 Senior Unsecured Bonds [Member] | Subsequent Event [Member] | Two Thousand Seventeen Amendment [Member]
Subsequent Event [Line Items]
Debt instrument covenant description		The covenant, requiring our interest coverage ratio, on a trailing four quarter basis, to be no less than 2.25 to 1.00
Deferred Costs		$ 1,300

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Vessel in Operation - Additional Information (Detail) $ in Thousands	Jun. 30, 2019 USD ($) Vessels	Dec. 31, 2018 USD ($)	Dec. 31, 2017 Vessels
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	$ 1,167	$ 1,299
Time Charter Agreements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, cost	1,183,500	1,337,000
Property, plant and equipment, net	$ 917,600	1,084,000
Number of vessels contracted | Vessels	21		23
Collateralized Loan Obligations [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	$ 1,512,900	$ 1,509,000

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Revenue Recognition - Summary of Operating Revenue by Source of Revenue Stream (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues		$ 73,586	$ 73,163	$ 149,689	$ 150,970
Time Charters [Member]
Revenues		37,735	44,002	78,357	86,168
Voyage Charters [Member]
Revenues	[1]	$ 35,851	$ 29,161	$ 71,332	$ 64,802

[1] Voyage Charter revenues: Voyage charter revenues, which include revenues from contracts of affreightment, are shown net of address commissions.

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Investment in Equity Accounted Joint Venture

6 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investment in Equity Accounted Joint Venture

4. Investment in equity accounted joint venture

The table below represents the Company’s investment into the Export Terminal Joint Venture, pursuant to which the Company has a 50% economic interest in building and operating the Marine Export Terminal, at December 31, 2018 and June 30, 2019:

	2018			2019
	(in thousands)
Investment in equity accounted joint venture at January 1	$	—		$	42,462
Equity contributions to joint venture entity		41,000			49,500
Share of results		(38	)		(140	)
Capitalized interest and deferred financing costs		1,024			1,992
Legal costs		476			—
Total investment in equity accounted joint venture at December 31 and June 30	$	42,462		$	93,814

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Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Issued March 20, 2018 [Member]	Issued March 20, 2019 [Member]	Common Stock [Member]	Common Stock [Member] Issued March 20, 2018 [Member]	Common Stock [Member] Issued March 20, 2019 [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]
Beginning Balance at Dec. 31, 2017	$ 963,213			$ 555			$ 589,436	$ (277)	$ 373,499
Beginning Balance, (in shares) at Dec. 31, 2017				55,529,762
Adjustment to equity for the adoption of the new revenue / leasing standard	(3,352)								(3,352)
Restricted shares issued		$ 2			$ 2
Restricted shares issued, (in shares)					126,542
Net income	(2,463)								(2,463)
Foreign currency translation	(66)							(66)
Share-based compensation plan	364						364
Ending Balance at Jun. 30, 2018	957,698			$ 557			589,800	(343)	367,684
Ending Balance, (in shares) at Jun. 30, 2018				55,656,304
Beginning Balance at Mar. 31, 2018	960,889			$ 557			589,743	(254)	370,843
Beginning Balance, (in shares) at Mar. 31, 2018				55,656,304
Net income	(3,159)								(3,159)
Foreign currency translation	(89)							(89)
Share-based compensation plan	57						57
Ending Balance at Jun. 30, 2018	957,698			$ 557			589,800	(343)	367,684
Ending Balance, (in shares) at Jun. 30, 2018				55,656,304
Beginning Balance at Dec. 31, 2018	$ 955,110			$ 557			590,508	(363)	364,408
Beginning Balance, (in shares) at Dec. 31, 2018	55,657,631			55,657,631
Adjustment to equity for the adoption of the new revenue / leasing standard	$ (136)								(136)
Restricted shares issued			$ 1			$ 1
Restricted shares issued, (in shares)						174,438
Net income	(10,990)								(10,990)
Foreign currency translation	(30)							(30)
Share-based compensation plan	746						746
Ending Balance at Jun. 30, 2019	$ 944,701			$ 558			591,254	(393)	353,282
Ending Balance, (in shares) at Jun. 30, 2019	55,832,069			55,832,069
Beginning Balance at Mar. 31, 2019	$ 952,015			$ 558			590,853	(411)	361,015
Beginning Balance, (in shares) at Mar. 31, 2019				55,832,069
Net income	(7,733)								(7,733)
Foreign currency translation	18							18
Share-based compensation plan	401						401
Ending Balance at Jun. 30, 2019	$ 944,701			$ 558			$ 591,254	$ (393)	$ 353,282
Ending Balance, (in shares) at Jun. 30, 2019	55,832,069			55,832,069

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 47,285	$ 71,515
Accounts receivable, net	20,166	17,033
Accrued income	1,859	4,731
Prepaid expenses and other current assets	25,433	16,057
Bunkers and lubricant oils	10,249	8,789
Total current assets	104,992	118,125
Non-current assets
Property, plant and equipment, net	1,167	1,299
Investment in equity accounted joint venture	93,814	42,462
Right-of-use asset for operating leases	7,297
Total non-current assets	1,742,033	1,714,626
Total assets	1,847,025	1,832,751
Current liabilities
Current portion of secured term loan facilities, net of deferred financing costs	67,827	68,857
Current portion of operating lease liabilities	1,115
Accounts payable	13,451	10,784
Accrued expenses and other liabilities	13,055	12,798
Accrued interest	4,701	4,613
Deferred income	6,842	8,342
Total current liabilities	106,991	105,394
Non-current Liabilities
Secured term loan facilities and revolving credit facilities, net of current portion and deferred financing costs	616,573	599,676
Senior secured bond, net of deferred financing costs	69,311	68,378
Senior unsecured bond, net of deferred financing costs	99,266	99,039
Derivative liabilities	3,509	5,154
Operating lease liabilities, net of current portion	6,674
Total non-current liabilities	795,333	772,247
Total Liabilities	902,324	877,641
Commitments and contingencies (see note 13)
Stockholders' equity
Common stock—$.01 par value per share; 400,000,000 shares authorized; 55,832,069 shares issued and outstanding, (2018: 55,657,631)	558	557
Additional paid-in capital	591,254	590,508
Accumulated other comprehensive loss	(393)	(363)
Retained earnings	353,282	364,408
Total stockholders' equity	944,701	955,110
Total liabilities and stockholders' equity	1,847,025	1,832,751
Vessels In Operation [Member]
Non-current assets
Property, plant and equipment, net	$ 1,639,755	$ 1,670,865

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Derivative Instruments Accounted for at Fair value

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Derivative Instruments Accounted for at Fair value

9. Derivative Instruments Accounted for at Fair value

The Company uses derivative instruments in accordance with its overall risk management policy to mitigate our risk to the effects of unfavorable fluctuations in foreign exchange movements.

The Company entered into a cross-currency interest rate swap agreement concurrently with the issuance of its NOK denominated senior secured bonds (see Note 7—Senior Secured Bond) and pursuant to this swap, the Company receives the principal amount of NOK 600 million in exchange for a payment of a fixed amount of $71.7 million on the maturity date of the swap.

In addition, at each quarterly interest payment date, the cross-currency interest rate swap exchanges a receipt of floating interest of 6.0% plus 3-month NIBOR on NOK 600 million for a U.S. Dollar payment of floating interest of 6.608% plus 3-month U.S. LIBOR on the $71.7 million principal amount. The purpose of the cross-currency interest rate swap is to economically hedge the foreign currency exposure on the payments of interest and principal of the Company’s NOK denominated 2018 Bonds due to mature in 2023.

The cross-currency interest rate swap is remeasured to fair value at each reporting date and has been categorized as level two on the fair value measurement hierarchy.

The fair value of the cross-currency interest rate swap agreement is the estimated amount that we would pay to sell or transfer the swap at the reporting date, taking into account current interest rates, foreign exchange rates and the current credit worthiness of the swap counterparties. The estimated amount is the present value of future cash flows. The Company transacts all of these derivative instruments through investment-grade rated financial institutions at the time of the transaction. It is possible that the amount recorded as a derivative asset or liability could vary by a material amount in the near term if there is volatility in the credit markets.

The fair value of this non-designated derivative instrument is presented in the Company’s consolidated balance sheet and the change in fair value is presented in the consolidated statement of income. The movement in the fair value of the non-designated cross-currency interest rate swap resulted in unrealized gains of $0.9 million and $1.6 million for the three and six months ended June 30, 2019 respectively. There is no impact on the cash flows from the remeasurement at each reporting date.

The following table includes the estimated fair value of those assets and liabilities that are measured at fair value on a recurring basis and are carried at fair value at December 31, 2018 and June 30, 2019:

			December 31, 2018			June 30, 2019
Fair Value Hierarchy Level	Fair Value Hierarchy Level		Fair Value Asset (Liability)			Fair Value Asset (Liability)
			(in thousands)
Cross-currency interest rate swap agreement		Level 2		(5,154	)		(3,509	)

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

13. Commitments and Contingencies

The contractual obligations schedule set forth below summarizes our contractual obligations excluding interest payable as of June 30, 2019.

	Remainder of 2019		2020		2021		2022		2023		Thereafter		Total
			(in thousands)
Marine Export Terminal capital contributions*		45,000		19,500		—		—		—		—		64,500
Secured term loan facilities and revolving credit facilities		34,875		69,750		69,750		311,611		142,503		63,537		692,026
2017 Bonds		—		—		100,000		—		—		—		100,000
2018 Bonds**		—		—		—		—		71,697		—		71,697
Office operating leases		745		1,276		1,124		93		—		—		3,238
Total contractual obligations	$	80,620	$	90,526	$	170,874	$	311,704	$	214,200	$	63,537	$	931,461

* On July 9, 2019, the Company made a capital contribution of $12.5 million, reducing the remaining contributions required for 2019 from $45.0 million to $32.5 million for our portion of the capital cost for the construction of the Marine Export Terminal.

** The Company has NOK 600 million of 2018 Bonds that mature in 2023 issued in the Norwegian Bond market (see Note 7—Senior Secured Bond). The Company has entered into a cross-currency interest rate swap agreement, to swap all interest and principal payments of the 2018 Bonds into U.S. Dollars, with the interest payments at 6.608% plus 3-month U.S. LIBOR and the transfer of the principal amount fixed at $71.7 million upon maturity in exchange for NOK 600 million (see Note 9 (Derivative Instruments Accounted for at Fair Value) to the unaudited condensed consolidated financial statements).

The Company occupies office space in London with a lease that commenced in January 2017 for a period of 10 years with a mutual break option in January 2022, which is the fifth anniversary from the lease commencement date. This break option has not been recognized as part of the right-of-use asset and lease liability associated with the lease. The gross rent per year is approximately $1.1 million.

The Company entered into a lease for office space in New York that commenced June 1, 2017 and expires on May 31, 2020. An option to extend the lease for a further two years has been recognized as part of the right-of-use asset and lease liability associated with the lease. The annual gross rent under this lease is approximately $0.4 million, subject to certain adjustments.

The lease term for our representative office in Gdynia, Poland is for a period of five years commencing from January 2017. The gross rent per year is approximately $60,000.

The weighted average remaining contractual lease term for the above three office leases on June 30, 2019 was 2.4 years.

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Vessels in Operation (Tables)

6 Months Ended

Jun. 30, 2019

Vessels In Operation [Member]

Vessels

	Vessel		Drydocking			Total
			(in thousands)
Cost
December 31, 2018	$	2,057,370	$	31,908		$	2,089,278
Additions		1,396		5,160			6,556
Disposal		—		(3,249	)		(3,249	)
June 30, 2019	$	2,058,766	$	33,819		$	2,092,585
Accumulated Depreciation
December 31, 2018	$	400,517	$	17,896		$	418,413
Charge for the period		33,925		3,741			37,666
Disposal		—		(3,249	)		(3,249	)
June 30, 2019	$	434,442	$	18,388		$	452,830
Net Book Value
December 31, 2018	$	1,656,853	$	14,012		$	1,670,865
June 30, 2019	$	1,624,324	$	15,431		$	1,639,755

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Derivative Instruments Accounted for at Fair value (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of Estimated Fair Value and Carrying Value of Assets and Liabilities Measured at Fair Value on Recurring Basis, Non-recurring Basis

The following table includes the estimated fair value of those assets and liabilities that are measured at fair value on a recurring basis and are carried at fair value at December 31, 2018 and June 30, 2019:

			December 31, 2018			June 30, 2019
Fair Value Hierarchy Level	Fair Value Hierarchy Level		Fair Value Asset (Liability)			Fair Value Asset (Liability)
			(in thousands)
Cross-currency interest rate swap agreement		Level 2		(5,154	)		(3,509	)

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Derivative Instruments Accounted for at Fair value - Additional Information (Detail)		3 Months Ended	6 Months Ended
	Nov. 02, 2018 NOK (kr)	Jun. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2019 NOK (kr)	Dec. 31, 2018 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative liabilities		$ 3,509,000	$ 3,509,000		$ 5,154,000
Unrealized loss on non-designated derivative instruments		861,000	1,645,000
2018 Senior Secured Bonds [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Outstanding secured borrowings, principal | kr	kr 600,000,000			kr 600,000,000
Outstanding secured borrowings, interest rate terms	The 2018 Bonds bear interest at a rate equal to the 3-month NIBOR plus 6.0% per annum, calculated on a 360-day year basis and mature on November 2, 2023.
NORWAY [Member] | 2018 Senior Secured Bonds [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Outstanding secured borrowings, principal		$ 71,700,000	$ 71,700,000
Outstanding secured borrowings | kr				kr 600,000,000
Spread on variable rate		6.608%	6.608%	6.608%
Outstanding secured borrowings, interest rate terms			6.608% plus 3-month U.S. LIBOR
Outstanding secured borrowings, maturity year			2023
NORWAY [Member] | 2018 Senior Secured Bonds [Member] | NIBOR [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Spread on variable rate		6.00%	6.00%	6.00%
Outstanding secured borrowings, interest rate terms			6.0% plus 3-month NIBOR
Cross Currency Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative liabilities					$ (5,154,000)
Cross Currency Interest Rate Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative liabilities		$ 900,000	$ 900,000
Unrealized loss on non-designated derivative instruments			$ 1,600,000

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Senior Secured Bond - Additional Information (Detail)		6 Months Ended
	Nov. 02, 2018 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2019 NOK (kr)	Dec. 31, 2018 USD ($)	Nov. 02, 2018 NOK (kr)
Debt Instrument [Line Items]
Minimum liquidity to be maintained, amount		$ 47,285,000		$ 71,515,000
Minimum [Member]
Debt Instrument [Line Items]
Variable interest rate on bond		2.50%
2018 Senior Secured Bonds [Member]
Debt Instrument [Line Items]
Aggregate principal amount | kr			kr 600,000,000		kr 600,000,000
Variable interest rate on bond	6.00%
Debt instrument maturity date	Nov. 02, 2023
Debt instrument variable rate description	The 2018 Bonds bear interest at a rate equal to the 3-month NIBOR plus 6.0% per annum, calculated on a 360-day year basis and mature on November 2, 2023.
Interest payment description on bond	Interest is payable quarterly in arrears on February 2, May 2, August 2 and November 2.
Debt instrument redemption description	The Company may redeem the 2018 Bonds, in whole or in part, at any time beginning on or after November 2, 2021. Any 2018 Bonds redeemed from November 2, 2021 until November 1, 2022, are redeemable at 102.4% of par, from November 2, 2022 until May 1, 2023, are redeemable at 101.5% of par, and from May 2, 2023 to the maturity date are redeemable at 100% of par, in each case, in cash plus accrued interest.
Debt instrument covenant description		The financial covenants each as defined within the bond agreement are: (a) The issuer shall ensure that the Group (meaning “the Company and its subsidiaries”) maintains a minimum liquidity of no less than $25.0 million and (b) maintain a Group equity ratio of at least 30% (as defined in the 2018 Bond Agreement). At June 30, 2019, the Company was in compliance with all covenants for the 2018 Bonds.
2018 Senior Secured Bonds [Member] | Minimum [Member]
Debt Instrument [Line Items]
Minimum liquidity to be maintained, amount		$ 25,000,000.0
Gross Equity ratio		30.00%
2018 Senior Secured Bonds [Member] | November 2, 2021 through November 1, 2022 [Member]
Debt Instrument [Line Items]
Debt instrument redeemable percentage	102.40%
2018 Senior Secured Bonds [Member] | November 2, 2022 through May 1, 2023 [Member]
Debt Instrument [Line Items]
Debt instrument redeemable percentage	101.50%
2018 Senior Secured Bonds [Member] | May 2, 2023 through Maturity Date [Member]
Debt Instrument [Line Items]
Debt instrument redeemable percentage	100.00%
2018 Senior Secured Bonds [Member] | Redemption of Bonds [Member]
Debt Instrument [Line Items]
Debt instrument redeemable percentage		101.00%
Senior Secured Bonds [Member] | Maximum [Member]
Debt Instrument [Line Items]
Dividend payable percentage		50.00%
Nordea Bank Abp [Member] | 2018 Senior Secured Bonds [Member]
Debt Instrument [Line Items]
Aggregate principal amount	$ 71,700,000		kr 600,000,000
Variable interest rate on bond	6.608%
Debt instrument variable rate description	6.608% plus 3-month U.S. LIBOR

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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2019

Revenue Recognition [Abstract]

Summary of Operating Revenue by Source of Revenue Stream

The following table compares our operating revenue by the source of revenue stream for the three and six months ended June 30, 2018 and 2019:

	Three months ended June 30, (in thousands)				Six months ended June 30, (in thousands)
	2018		2019		2018		2019
Operating revenue:
Time charters	$	44,002	$	37,735	$	86,168	$	78,357
Voyage charters (*)		29,161		35,851		64,802		71,332
Total operating revenue	$	73,163	$	73,586	$	150,970	$	149,689

* Voyage Charter revenues: Voyage charter revenues, which include revenues from contracts of affreightment, are shown net of address commissions.

Summary of Future Committed Revenue from Contracts with Customers, Arising from Remaining Performance Obligations

As of June 30, 2019, 21 of the Company’s 38 operated vessels, were subject to time charters, twelve of which will expire within one year, five of which will expire within three years and four which will expire within nine years. The committed time charter income for future periods at June 30, 2019 is as follows:

	(in thousands)
Remainder of 2019:	$	61,285
2020:	$	82,928
2021:	$	60,974
2022:	$	43,961
2023:	$	38,667
2024 onwards:	$	69,846

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Fair Value of Financial Instruments Not Accounted For at Fair Value (Tables)

6 Months Ended

Jun. 30, 2019

Investments, All Other Investments [Abstract]

Schedule of Estimated Fair Value and Carrying Value of Assets and Liabilities Measured at Fair Value on Recurring Basis, Non-recurring Basis

The following table includes the estimated fair value and carrying value of those assets and liabilities. The table excludes cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other liabilities because the fair value approximates carrying value and, for accounts receivable and payable, are due in one year or less.

			December 31, 2018						June 30, 2019
Financial Asset/Liability	Fair Value Hierarchy Level		Carrying Amount Asset (Liability)			Fair Value Asset (Liability)			Carrying Amount Asset (Liability)			Fair Value Asset (Liability)
			(in thousands)
2018 Bonds (note 7)		Level 2		(69,337	)		(66,004	)		(70,289	)		(69,235	)
2017 Bonds (note 8)		Level 2		(100,000	)		(96,481	)		(100,000	)		(100,000	)
Secured term loan facilities and revolving credit facilities (note 6)		Level 2		(675,738	)		(588,713	)		(692,026	)		(592,255	)

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Derivative Instruments Accounted for at Fair value - Schedule of Estimated Fair Value and Carrying Value of Assets and Liabilities Measured at Fair Value on Recurring Basis, Non-recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount Asset (Liability)	$ 3,509	$ 5,154
Cross Currency Interest Rate Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount Asset (Liability)		$ (5,154)
Fair Value Asset (Liability)	$ (3,509)

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Senior Secured Bond - Schedule of Breakdown of Senior Secured Bond and Total Deferred Financing Costs (Detail) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total Bond, net of deferred financing costs	$ (692,026)	$ (675,738)
Senior Secured Bonds [Member]
Debt Instrument [Line Items]
Total Bond	(70,289)	(69,337)
Less deferred financing costs	978	959
Total Bond, net of deferred financing costs	$ (69,311)	$ (68,378)

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Share-Based Compensation - Restricted Share Grant Activity (Detail) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Number of RSUs
Unvested, beginning balance	243,188	143,513
Granted	174,438	131,542
Vested	(78,045)	(28,194)
Forfeited		(3,673)
Unvested, ending balance	339,581	243,188	143,513
Weighted-average grant date fair value
Unvested, beginning balance	$ 12.98	$ 13.82
Granted	11.06	12.04
Vested	14.36	12.77
Forfeited		14.16
Unvested, ending balance	$ 11.68	$ 12.98	$ 13.82
Weighted-average remaining contractual terms (Years)
Weighted-average remaining contractual terms (Years)	1 year 10 months 2 days	1 year 3 months 18 days	1 year 5 months 26 days

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Commitments and Contingencies - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2019 USD ($)
Office Space [Member]
Schedule Of Commitments And Contingencies [Line Items]
Weighted Average Remaining Lease Tenure	2 years 4 months 24 days
POLAND [Member]
Schedule Of Commitments And Contingencies [Line Items]
Lease term	5 years
Operating lease future minimum payment per year	$ 60,000
London [Member]
Schedule Of Commitments And Contingencies [Line Items]
Lease term	10 years
Lease term, mutual break clause	5 years
Operating lease future minimum payment per year	$ 1,100,000
NEW YORK [Member]
Schedule Of Commitments And Contingencies [Line Items]
Operating lease future minimum payment per year	$ 400,000
Lease expiration date	May 31, 2020

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Investment in Equity Accounted Joint Venture - Summary of Investment in Equity Accounted Joint Venture (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Schedule of Equity Method Investments Joint Ventures [Line Items]
Investment in equity accounted joint venture, beginning balance		$ 42,462
Equity contributions to joint venture entity		49,500	$ 41,000
Share of results	$ (101)	(140)	(38)
Capitalized interest and deferred financing costs		1,992	1,024
Legal costs			476
Investment in equity accounted joint venture, ending balance	$ 93,814	$ 93,814	$ 42,462

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Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Contract Liabilities	$ 6,842	$ 8,342
Performance obligation amount	$ 7,500	19,600
Revenue, performance obligation, description of timing	21 of the Company’s 38 operated vessels, were subject to time charters, twelve of which will expire within one year, five of which will expire within three years and four which will expire within nine years.
Accounting Standards Update 2014-09 [Member]
Effect of changes in accounting principle on shareholders' equity	$ 3,400
Contract Assets	1,500	4,000
Contract Liabilities	1,800	1,700
Cargo Commences [Member]
Contract Costs Incurred In Advance	$ 600	$ 1,500

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Share-Based Compensation

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

12. Share-Based Compensation

On March 20, 2019, the Company granted 32,550 restricted shares under the Navigator Holdings Ltd. 2013 Long-Term Incentive Plan (the “2013 Plan”) to non-employee directors with a weighted average value of $11.06 per share. These restricted shares vest on the first anniversary of the grant date. On the same date the Company granted 141,888 restricted shares to the officers and employees of the Company, including the then Chief Executive Officer, with a weighted average value of $11.06 per share. All these restricted shares vest on the third anniversary of the grant date.

During the six months ended June 30, 2019, there were 29,898 shares that were previously granted to non-employee directors under the 2013 Plan with a weighted average grant value of $12.04 per share, which vested at a fair value of $336,054. In addition, 48,147 shares that were granted in 2016 to the Chief Executive Officer and officers and employees of the Company, all of which had a weighted average grant value of $15.80, vested at a fair value of $548,218.

On March 20, 2018, the Company granted 29,898 restricted shares under the 2013 Plan to non-employee directors with a weighted average value of $12.04 per share. On November 28, 2018 the Company granted a further 5,000 shares to a newly appointed non-employee director with a weighted average value of $12.30. These restricted shares vest on the first anniversary of the grant date. On March 20, 2018 the Company granted 96,644 restricted shares to the Chief Executive Officer and officers and employees of the Company with a weighted average value of $12.04 per share. All these restricted shares vest on the third anniversary of the grant date.

During the year ended December 31, 2018, 28,194 shares that were previously granted under the 2013 Plan to non-employee directors with a weighted average grant value of $12.77 per share vested at a fair value of $325,641.

Restricted share grant activity for the year ended December 31, 2018 and six months ended June 30, 2019 was as follows:

	Number of non-vested restricted shares			Weighted average grant date fair value		Weighted average remaining contractual term
Balance as of January 1, 2018		143,513		$	13.82		1.49 years
Granted		131,542			12.04
Vested		(28,194	)		12.77
Forfeited		(3,673	)		14.16
Balance as of December 31, 2018		243,188		$	12.98		1.30 years
Granted		174,438			11.06
Vested		(78,045	)		14.36
Balance as of June 30, 2019		339,581		$	11.68		1.84 years

Using the straight-line method of expensing the restricted stock grants, the weighted average estimated value of the shares calculated at the date of grant is recognized as compensation cost in the Statement of Income over the period to the vesting date.

During the six months ended June 30, 2019, the Company recognized $746,446 in share-based compensation costs relating to share grants (six months ended June 30, 2018: $466,577). During the three months ended June 30, 2019, the Company recognized $400,689 in share-based compensation costs relating to share grants (three months ended June 30, 2018: $317,926). As of June 30, 2019, there was a total of $2,569,942 unrecognized compensation costs relating to the expected future vesting of share-based awards (December 31, 2018: $1,387,104) which are expected to be recognized over a weighted average period of 1.84 years (December 31, 2018: 1.30 years).

Share options previously issued under the 2013 Plan are exercisable from the third anniversary of the grant date up to the tenth anniversary of the date of grant. The fair value of each option is calculated on the date of grant based on the Black-Scholes valuation model. Expected volatilities are based on the historic volatility of the Company’s stock price and other factors. The Company does not currently pay dividends and it is assumed this will not change. The expected term of the options granted is anticipated to be between 4 and 6.5 years. The risk-free rate is the rate adopted from the U.S. Government Zero Coupon Bond.

The movement in the existing share options for the year ended December 31, 2018 and the six months ended June 30, 2019 was as follows:

Options	Number of non-vested options			Weighted average exercise price per share		Weighted average remaining contractual term years		Aggregate intrinsic value
Balance as of January 1, 2018		154,685		$	17.80		6.70		—
Forfeited during the year		(6,298	)		23.85		—		—
Vested		(148,387	)		—		—		—
Balance as of December 31, 2018		—			—		—	$	—
Granted during the period		6,000			18.95		5.52		—
Vested		—			—		—		—
Balance as of June 30, 2019		6,000			18.95		5.52	$	—

On January 5, 2019, 6,000 share options were granted to an employee of the company at a strike price of $18.95 under the 2013 Plan. These options are not exercisable until the first anniversary of the grant date and can be exercised up to the sixth anniversary of the grant date.

On March 17, 2018, 148,387 share options granted on March 17, 2015 at an option price of $17.80 became exercisable. None of the options vested and outstanding were exercised as of December 31, 2018.

During the year ended December 31, 2018, 18,506 of the share options that had previously vested as of December 31, 2017 were forfeited at a weighted average option price of $24.17.

During the six months ended June 30, 2019, the Company recognized no share-based compensation costs (six months ended June 30, 2018: credit of $99,902 recognized in general and administrative costs) relating to options granted under the 2013 Plan. As of June 30, 2019, there were 349,936 share options existing and outstanding and no unrecognized compensation costs (December 31, 2018: no unrecognized compensation costs) relating to non-vested options under the 2013 Plan.

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Vessels in Operation

6 Months Ended

Jun. 30, 2019

Vessels In Operation [Member]

Vessels in Operation

3. Vessels in Operation

	Vessel		Drydocking			Total
			(in thousands)
Cost
December 31, 2018	$	2,057,370	$	31,908		$	2,089,278
Additions		1,396		5,160			6,556
Disposal		—		(3,249	)		(3,249	)
June 30, 2019	$	2,058,766	$	33,819		$	2,092,585
Accumulated Depreciation
December 31, 2018	$	400,517	$	17,896		$	418,413
Charge for the period		33,925		3,741			37,666
Disposal		—		(3,249	)		(3,249	)
June 30, 2019	$	434,442	$	18,388		$	452,830
Net Book Value
December 31, 2018	$	1,656,853	$	14,012		$	1,670,865
June 30, 2019	$	1,624,324	$	15,431		$	1,639,755

The cost and net book value of the 21 vessels that were contracted under time charters was $1,183.5 million and $917.6 million respectively at June 30, 2019 (December 31, 2018: $1,337.0 million and $1,084.0 million respectively for 23 vessels contracted under time charters)

The net book value of vessels that serve as collateral for the Company’s secured bond, secured term loan and revolving credit facilities was $1,512.9 million as of June 30, 2019 (December 31, 2018: $1,509.0 million)

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Cash flows from operating activities
Net (loss) / income			$ (10,990)	$ (2,463)
Adjustments to reconcile net income to net cash provided by operating activities
Unrealized gain on non-designated derivative instruments	$ (861)		(1,645)
Depreciation and amortization	18,913	$ 19,029	37,861	38,410
Payment of drydocking costs			(5,160)	(2,880)
Prior year expenses recovered in insurance claim				(754)
Amortization of share-based compensation			747	366
Amortization of deferred financing costs			1,473	1,131
Share of result of equity accounted joint venture	101		140		$ 38
Changes in operating assets and liabilities
Accounts receivable			(3,133)	3,392
Bunkers and lubricant oils			(1,460)	886
Accrued income and prepaid expenses and other current assets			(4,013)	1,354
Accounts payable, accrued interest, accrued expenses and other liabilities			2,012	3,734
Net cash provided by operating activities			16,737	43,146
Cash flows from investing activities
Additions to vessels and equipment			(1,396)	(79)
Investment in equity accounted joint venture			(51,491)	(10,475)
Purchase of other property, plant and equipment			(191)	(97)
Insurance recoveries			130	305
Net cash used in investing activities			(52,948)	(10,346)
Cash flows from financing activities
Proceeds from secured term loan facilities and revolving credit facilities			127,000	3,800
Repayment of secured term loan facilities and revolving credit facilities			(110,712)	(43,613)
Net cash (used in)/provided by financing activities			11,981	(39,813)
Net decrease in cash, cash equivalents and restricted cash			(24,230)	(7,013)
Cash, cash equivalents and restricted cash at beginning of period			71,515	62,109	62,109
Cash, cash equivalents and restricted cash at end of period	$ 47,285	$ 55,096	47,285	55,096	$ 71,515
Supplemental Information
Total interest paid during the period, net of amounts capitalized			22,776	20,799
Total tax paid during the period			165	52
Senior Secured Bonds [Member]
Adjustments to reconcile net income to net cash provided by operating activities
Unrealized foreign exchange gain/(loss)			952
Other [Member]
Adjustments to reconcile net income to net cash provided by operating activities
Unrealized foreign exchange gain/(loss)			(47)	$ (30)
Secured Bonds [Member]
Cash flows from financing activities
Issuance cost			(136)
Secured Term Loan [Member]
Cash flows from financing activities
Issuance cost			(1,448)
Terminal Credit Facility [Member]
Cash flows from financing activities
Issuance cost			$ (2,723)

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized	400,000,000	400,000,000
Common stock, shares issued	55,832,069	55,657,631
Common stock, shares outstanding	55,832,069	55,657,631

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Senior Secured/Unsecured Bond

6 Months Ended

Jun. 30, 2019

Senior Secured/Unsecured Bond

8. Senior Unsecured Bond

On February 10, 2017, the Company issued senior unsecured bonds in an aggregate principal amount of $100.0 million with Nordic Trustee AS as the bond trustee (the “2017 Bonds”). The net proceeds of the issuance of the 2017 Bonds, together with cash on hand, were used to redeem in full all of the Company’s outstanding 9.0% senior unsecured bonds. The 2017 Bonds are governed by Norwegian law and listed on the Nordic ABM which is operated and organized by Oslo Børs ASA. The 2017 Bonds bear interest at a rate of 7.75% per annum and mature on February 10, 2021. Interest is payable semi-annually in arrears on February 10 and August 10.

The Company may redeem the 2017 Bonds, in whole or in part, at any time. Any 2017 Bonds redeemed until February 10, 2020, are redeemable at 103.875% of par, from February 11, 2020 until August 10, 2020, are redeemable at 101.9375% of par, and from August 11, 2020 to the maturity date are redeemable at 100% of par, in each case, plus accrued interest. Additionally, upon the occurrence of a “Change of Control Event” (as defined in the 2017 Bond Agreement), the holders of 2017 Bonds have an option to require us to repay such holders’ outstanding principal amount of 2017 Bonds at 101% of par, plus accrued interest.

The bond agreement covering the 2017 Bonds (the “2017 Bond Agreement”) contains an option to issue additional bonds up to a maximum issue amount of a further $100.0 million, at identical terms as the original bond issue, except that additional bonds may be issued at a different price.

The financial covenants (each as defined within the 2017 Bond Agreement) are: (a) The issuer shall ensure that the Group (meaning “the Company and its subsidiaries”) maintains a minimum liquidity of no less than $25.0 million; (b) to maintain an interest coverage ratio (as defined in the 2017 Bond Agreement) of not less than 2.25:1; and (c) maintain a Group equity ratio of minimum 30% (as defined in the 2017 Bond Agreement). At June 30, 2019, the Company was in compliance with all covenants for the 2017 Bonds.

The 2017 Bond Agreement provides that we may declare dividends so long as such dividends do not exceed 50% of our cumulative consolidated​​​​​​​ net profits after taxes since September 30, 2016. The 2017 Bond Agreement also limits us and our subsidiaries from, among other things, entering into mergers and divestitures, engaging in transactions with affiliates or incurring any additional liens which would have a material adverse effect. In addition, the 2017 Bond Agreement includes customary events of default, including those relating to a failure to pay principal or interest, a breach of covenant, false representation and warranty, a cross-default to other indebtedness, the occurrence of a material adverse effect, or our insolvency or dissolution.

The following table shows the breakdown of our senior unsecured bond and total deferred financing costs at December 31, 2018 and June 30, 2019:

	December 31, 2018			June 30, 2019
	(in thousands)
Senior Unsecured Bond
Total Bond	$	(100,000	)	$	(100,000	)
Less deferred financing costs		961			734
Total Bond, net of deferred financing costs	$	(99,039	)	$	(99,266	)

2018 Senior Secured Bonds [Member]

Senior Secured/Unsecured Bond

7. Senior Secured Bond

On November 2, 2018, the Company issued senior secured bonds in an aggregate principal amount of NOK 600 million with Nordic Trustee AS as the bond trustee (the “2018 Bonds”). The net proceeds are being used to partially finance our portion of the capital cost for the construction of the Marine Export Terminal. The 2018 Bonds are governed by Norwegian law and are listed on the Nordic ABM which is operated and organized by Oslo Børs ASA. The 2018 Bonds bear interest at a rate equal to the 3-month NIBOR plus 6.0% per annum, calculated on a 360-day year basis and mature on November 2, 2023. Interest is payable quarterly in arrears on February 2, May 2, August 2 and November 2.

On the same date, the company entered into a cross-currency interest rate swap agreement with Nordea Bank Abp (“Nordea”), with a termination date of November 2, 2023, to run concurrently with the 2018 Bonds. The interest rate payable by the Company under this cross-currency interest rate swap agreement will be 6.608% plus 3-month U.S. LIBOR and the transfer of the principal amount fixed at $71.7 million upon maturity in exchange for NOK 600 million. Please read Note 9 (Derivative Instruments Accounted for at Fair Value) to the unaudited condensed consolidated financial statements. For a description of our accounting policy in relation to the cross-currency interest rate swap, please read Note 2 (Summary of Significant Accounting Policies) to the 2018 Annual Report.

The Company may redeem the 2018 Bonds, in whole or in part, at any time beginning on or after November 2, 2021. Any 2018 Bonds redeemed from November 2, 2021 until November 1, 2022, are redeemable at 102.4% of par, from November 2, 2022 until May 1, 2023, are redeemable at 101.5% of par, and from May 2, 2023 to the maturity date are redeemable at 100% of par, in each case, in cash plus accrued interest.

Additionally, upon the occurrence of a “Change of Control Event” (as defined in the 2018 Bond Agreement), the holders of 2018 Bonds have an option to require us to repay such holders’ outstanding principal amount of 2018 Bonds at 101% of par, plus accrued interest.

The financial covenants each as defined within the bond agreement are: (a) The issuer shall ensure that the Group (meaning “the Company and its subsidiaries”) maintains a minimum liquidity of no less than $25.0 million and (b) maintain a Group equity ratio of at least 30% (as defined in the 2018 Bond Agreement). At June 30, 2019, the Company was in compliance with all covenants for the 2018 Bonds.

The 2018 Bond Agreement provides that we may declare dividends from January 1, 2020, payable at the earliest from January 1, 2021 so long as such dividends do not exceed 50% of our cumulative consolidated net profits after taxes from January 1, 2020. The 2018 Bond Agreement also limits us and our subsidiaries from, among other things, entering into mergers and divestitures, engaging in transactions with affiliates or incurring any additional liens which would have a material adverse effect. In addition, the 2018 Bond Agreement includes customary events of default, including those relating to a failure to pay principal or interest, a breach of covenant, false representation and warranty, a cross-default to other indebtedness, the occurrence of a material adverse effect, or our insolvency or dissolution.

The following table shows the breakdown of our senior secured bond and total deferred financing costs as of December 31, 2018 and June 30, 2019:

	December 31, 2018			June 30, 2019
	(in thousands)
Senior Secured Bond
Total NOK 600 million Bond, translated at prevailing rate	$	(69,337	)	$	(70,289	)
Less deferred financing costs		959			978
Total Bond, net of deferred financing costs	$	(68,378	)	$	(69,311	)