Navigator Gas Announces Order for Two New 48,500 Cubic Meter Capacity Liquefied Ethylene Gas Carriers
Rhea-AI Summary
Navigator Holdings (NYSE: NVGS), operating as Navigator Gas, has contracted to build two new 48,500 cubic meter capacity liquefied ethylene gas carriers with Jiangnan Shipyard and China Shipbuilding Trading Co. in China. The vessels, scheduled for delivery in March and July 2027, will cost an average of $102.9 million each. These ships will be capable of carrying various gas products, including complex petrochemicals, LPG, and clean ammonia. They will feature dual-fuel engines for ethane and be retrofit-ready for ammonia fuel. The company has also secured an option for two additional vessels of the same specification.
CEO Mads Peter Zacho emphasized that these vessels will strengthen the company's ethylene transportation capabilities while adapting to a low-carbon fuel landscape. Navigator Gas plans to finance the newbuilds with existing cash and new debt, expecting the investments to be earnings-accretive. The company aims to secure charters for the vessels before their delivery.
Positive
- Expansion of fleet with two new 48,500 cubic meter capacity liquefied ethylene gas carriers
- Vessels capable of carrying a wide range of gas products, enhancing versatility
- Dual-fuel engines and retrofit-ready design for future ammonia use, aligning with low-carbon trends
- Option for two additional newbuilding vessels at the same price and specification
- Expected to be accretive to the company's earnings
- No new capital issuance planned, utilizing cash on hand and new debt for financing
Negative
- Significant capital expenditure with average vessel cost of $102.9 million
- No current charters secured for the newbuild vessels
- Long lead time with deliveries scheduled for 2027, exposing to market risks
News Market Reaction
On the day this news was published, NVGS gained 0.12%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
LONDON, Aug. 23, 2024 (GLOBE NEWSWIRE) -- Navigator Holdings Ltd. (described herein as “Navigator Gas” or the “Company”) (NYSE: NVGS), the owner and operator of the world’s largest fleet of handysize liquefied gas carriers, announces that today, it entered into contracts (the “Contracts”) to build two new 48,500 cubic meter capacity liquefied ethylene gas carriers (the “Newbuild Vessels”) with Jiangnan Shipyard (Group) Co., Ltd. and China Shipbuilding Trading Co., Ltd., (together, the “Sellers”) in China.
The Newbuild Vessels are scheduled to be delivered to the Company in March 2027 and July 2027 respectively, at an average price of
The Company has also agreed an option with the Sellers for an additional two newbuilding vessels of the same specification and price as the Newbuild Vessels, with expected delivery to the Company in November 2027 and January 2028, respectively, if the option is exercised.
Mads Peter Zacho, CEO, commented:
“Building these vessels strengthens the link between our ethylene export terminal at Morgan’s Point and our global customers. They enable us to maintain a safe, efficient, and reliable ethylene transportation capability that is both competitive and future-ready, using assets adapted to the low carbon fuel landscape”.
The Company does not intend to issue any new capital but plans to finance the Newbuild Vessels with a combination of cash on hand and new debt. These investments are expected to be accretive to the Company’s earnings. Neither of the Newbuild Vessels is currently chartered, but the Company intends to fix charters prior to their delivery, although there is no assurance that they will be so chartered.
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’ common stock trades on the New York Stock Exchange under the symbol “NVGS”.
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 size and delivery date of Navigator Gas's new liquefied ethylene gas carriers?
How much is Navigator Gas (NVGS) paying for each new vessel?
What types of fuel can the new Navigator Gas (NVGS) vessels use?
How does Navigator Gas (NVGS) plan to finance the new vessel orders?
Has Navigator Gas (NVGS) secured any charters for the new vessels?
