Navigator Gas Announces Completion of Acquisition of First of Three Handysize Liquefied Ethylene Gas Carriers
Navigator Holdings (NYSE: NVGS) has completed the acquisition of the first of three handysize liquefied ethylene gas carriers. The acquired vessel, renamed Navigator Hyperion, is a German-built 17,000 cubic meter capacity carrier. The remaining two vessels are expected to be delivered between February and May 2025.
The acquisition is part of a previously announced Transaction on January 7, 2025, aimed at complementing increased export capacity from Navigator's Export Terminal Joint Venture. All three vessels are planned to operate in the spot market upon or shortly after delivery.
The Transaction is being financed through cash on hand and a Facility Agreement with Nordea Bank Abp, secured by the three vessels. According to CFO Gary Chapman, the competitively priced debt financing is expected to support the company's ethylene export terminal expansion and be accretive to earnings in 2025 and beyond.
Navigator Holdings (NYSE: NVGS) ha completato l'acquisizione della prima di tre navi cisterna di etilene liquefatto di dimensioni handysize. La nave acquisita, rinominata Navigator Hyperion, è una nave costruita in Germania con una capacità di 17.000 metri cubi. Le restanti due navi sono attese per la consegna tra febbraio e maggio 2025.
L'acquisizione fa parte di una Transazione precedentemente annunciata il 7 gennaio 2025, mirata a complementare l'aumento della capacità di esportazione dal Terminal di Esportazione della Joint Venture di Navigator. Tutte e tre le navi sono previste per operare nel mercato spot al momento o poco dopo la consegna.
La Transazione è finanziata attraverso liquidità disponibile e un Accordo di Struttura con Nordea Bank Abp, garantito dalle tre navi. Secondo il CFO Gary Chapman, il finanziamento del debito a prezzo competitivo dovrebbe supportare l'espansione del terminal di esportazione di etilene dell'azienda e essere accrescitivo per gli utili nel 2025 e oltre.
Navigator Holdings (NYSE: NVGS) ha completado la adquisición del primero de tres buques cisterna de gas etileno licuado de tamaño handysize. El buque adquirido, renombrado Navigator Hyperion, es un transportador de 17,000 metros cúbicos construido en Alemania. Se espera que los otros dos buques sean entregados entre febrero y mayo de 2025.
La adquisición forma parte de una Transacción anunciada anteriormente el 7 de enero de 2025, destinada a complementar la capacidad de exportación aumentada de la Joint Venture del Terminal de Exportación de Navigator. Se planea que los tres buques operen en el mercado spot al momento o poco después de la entrega.
La Transacción se financia a través de efectivo disponible y un Acuerdo de Instalación con Nordea Bank Abp, garantizado por los tres buques. Según el CFO Gary Chapman, se espera que la financiación de deuda a precios competitivos apoye la expansión del terminal de exportación de etileno de la empresa y sea accretiva para las ganancias en 2025 y más allá.
Navigator Holdings (NYSE: NVGS)는 세 척의 핸디사이즈 액화 에틸렌 가스 운반선 중 첫 번째 선박의 인수를 완료했습니다. 인수된 선박은 Navigator Hyperion으로 이름이 변경되었으며, 독일에서 건조된 17,000 세제곱미터 용량의 운반선입니다. 나머지 두 척은 2025년 2월과 5월 사이에 인도될 예정입니다.
이 인수는 2025년 1월 7일에 발표된 거래의 일환으로, Navigator의 수출 터미널 합작 투자에서 수출 용량 증가를 보완하는 것을 목표로 하고 있습니다. 세 척 모두 인도 시점 또는 그 직후에 스팟 시장에서 운영될 예정입니다.
이 거래는 현금과 Nordea Bank Abp와의 시설 계약을 통해 자금을 조달하며, 세 척의 선박으로 담보됩니다. CFO Gary Chapman에 따르면, 경쟁력 있는 가격의 부채 금융은 회사의 에틸렌 수출 터미널 확장을 지원하고 2025년 이후 수익에 기여할 것으로 예상됩니다.
Navigator Holdings (NYSE: NVGS) a finalisé l'acquisition du premier de trois navires-citernes de gaz éthylène liquéfié de taille handysize. Le navire acquis, renommé Navigator Hyperion, est un transporteur construit en Allemagne avec une capacité de 17 000 mètres cubes. Les deux autres navires devraient être livrés entre février et mai 2025.
L'acquisition fait partie d'une transaction précédemment annoncée le 7 janvier 2025, visant à compléter l'augmentation de la capacité d'exportation de la coentreprise du terminal d'exportation de Navigator. Les trois navires sont prévus pour opérer sur le marché au comptant au moment ou peu après leur livraison.
La transaction est financée par des liquidités disponibles et un accord de financement avec Nordea Bank Abp, garanti par les trois navires. Selon le CFO Gary Chapman, le financement de la dette à des conditions compétitives devrait soutenir l'expansion du terminal d'exportation d'éthylène de l'entreprise et être positif pour les bénéfices en 2025 et au-delà.
Navigator Holdings (NYSE: NVGS) hat die Übernahme des ersten von drei Handysize-Liquefied-Ethylene-Gas-Transportern abgeschlossen. Das erworbene Schiff, umbenannt in Navigator Hyperion, ist ein in Deutschland gebauter Transporter mit einem Fassungsvermögen von 17.000 Kubikmetern. Die restlichen zwei Schiffe sollen zwischen Februar und Mai 2025 geliefert werden.
Die Übernahme ist Teil einer zuvor am 7. Januar 2025 angekündigten Transaktion, die darauf abzielt, die erhöhte Exportkapazität des Exportterminals von Navigator zu ergänzen. Alle drei Schiffe sollen zum Zeitpunkt oder kurz nach der Lieferung im Spotmarkt betrieben werden.
Die Transaktion wird über vorhandenes Bargeld und einen Rahmenvertrag mit der Nordea Bank Abp finanziert, der durch die drei Schiffe gesichert ist. Laut CFO Gary Chapman wird erwartet, dass die wettbewerbsfähige Fremdfinanzierung die Expansion des Ethylen-Exportterminals des Unternehmens unterstützt und die Erträge im Jahr 2025 und darüber hinaus erhöht.
- Expansion of fleet capacity with three new ethylene carriers
- Secured competitive debt financing for the acquisition
- Expected earnings accretion from 2025 onwards
- Strategic alignment with export terminal expansion
- Increased debt burden from new facility agreement
- Spot market exposure for all three vessels
Insights
This strategic acquisition marks a significant expansion of Navigator Gas's ethylene shipping capabilities, with important implications for both operational capacity and financial performance. The 17,000 cubic meter Navigator Hyperion represents the first step in a three-vessel expansion program designed to capitalize on growing ethylene export volumes.
The financing structure, combining cash and debt through Nordea Bank, demonstrates strong banking relationships and prudent capital management. The "competitively priced debt" suggests favorable terms that should help maintain healthy margins on these assets. The vessel-secured nature of the facility is standard for the industry and typically results in lower interest rates compared to unsecured corporate debt.
The decision to deploy these vessels in the spot market is particularly noteworthy for several reasons:
- It provides flexibility to capture potential upside in freight rates during market peaks
- Aligns with the variable nature of terminal throughput volumes
- Enables the company to build new customer relationships and potentially convert spot business to longer-term contracts
The strategic alignment between the Export Terminal Joint Venture's expansion and this fleet growth is crucial. By controlling both terminal and shipping assets, Navigator Gas can offer integrated logistics solutions to customers while optimizing capacity utilization. This vertical integration strategy typically commands premium rates and higher customer retention.
The phased delivery schedule (February-May 2025) allows for gradual integration of these assets, minimizing operational disruption while providing immediate support for the expanded terminal capacity. The management's expectation of earnings accretion suggests confidence in both underlying market demand and their ability to achieve high utilization rates for these specialized vessels.
LONDON, Feb. 19, 2025 (GLOBE NEWSWIRE) -- Navigator Holdings Ltd. (“Navigator Gas” or the “Company”) (NYSE: NVGS), the owner and operator of the world’s largest fleet of handysize liquefied gas carriers, is pleased to announce that today, it completed the acquisition of the first of three vessels, as previously announced on January 7, 2025.
The acquisition and delivery of the vessel, a German-built 17,000 cubic meter capacity liquefied ethylene gas carrier, renamed Navigator Hyperion, is the first of three handysize ethylene carriers that Navigator Gas committed to acquiring to complement the increased export capacity from its Export Terminal Joint Venture, as announced on January 7, 2025 (the “Transaction”). Delivery of the remaining two vessels under the Transaction is expected between February and May 2025. All three vessels are anticipated to operate in the spot market upon or shortly after delivery.
To finance the Transaction, the Company will use cash on hand and proceeds raised from a facility agreement (the “Facility Agreement”) entered into between Navigator Gas L.L.C. (the “Borrower”) and Nordea Bank Abp (“Nordea”) on February 7, 2025. Nordea will make funds available to the Borrower subject to the terms and conditions set out in the Facility Agreement. Obligations under the Facility Agreement are guaranteed by the Company and will be secured by the three vessels.
Gary Chapman, CFO of Navigator Gas comments that:
“We have put in place competitively priced debt to finance the majority of the cost of acquiring the three vessels. As the vessels are delivered now, and in the coming weeks, we expect these to support our ethylene export terminal expansion and be accretive to our earnings both in 2025 and beyond.”
About Navigator Gas
Navigator Holdings Ltd. (described herein as “Navigator Gas” or the “Company”) is the owner and operator of the world’s largest fleet of handysize liquefied gas carriers and a global leader in the seaborne transportation services of petrochemical gases, such as ethylene and ethane, liquefied petroleum gas (“LPG”) and ammonia and owns a
| Navigator Gas | |
| Attention: | Investor Relations investorrelations@navigatorgas.com and randy.giveans@navigatorgas.com |
| Address: | 333 Clay Street, Suite 2480, Houston, Texas, U.S.A. 77002 |
| Tel: | +1 713 373 6197 and +44 (0)20 7340 4850 |
Investor Relations / Media Advisors
Nicolas Bornozis / Paul Lampoutis
Capital Link – New York
Tel: +1-212-661-7566
Email: navigatorgas@capitallink.com
Forward looking statements
This press release contains certain “forward-looking” statements (as defined by the Securities and Exchange Commission) concerning plans and objectives of management for future operations or economic performance, or assumptions related thereto. In addition, we and our representatives may from time to time make other oral or written statements that are also forward-looking statements. In some cases, you can identify the forward-looking statements by the use of words such as “may,” “could,” “should,” “will,” “would,” “expect,” “plan,” “anticipate,” “intend,” “forecast,” “believe,” “estimate,” “predict,” “propose,” “potential,” “continue,” “scheduled,” or the negative of these terms or other comparable terminology.
These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include but are not limited to those set forth in the periodic reports Navigator files with the U.S. Securities and Exchange Commission.
All forward-looking statements included in this press release are made only as of the date of this press release. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factor on our business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. We expressly disclaim any obligation to update or revise any 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.
Category: General
FAQ
What is the capacity of the newly acquired Navigator Hyperion vessel by NVGS?
When will Navigator Holdings (NVGS) receive the remaining two vessels from the acquisition?
How is Navigator Holdings (NVGS) financing the acquisition of the three vessels?
What is the expected market strategy for the newly acquired NVGS vessels?
How will the vessel acquisition impact Navigator Holdings' (NVGS) earnings?
