Navigator Gas Announces Order for Two New 48,500 Cubic Meter Capacity Liquefied Ethylene Gas Carriers
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.
Navigator Holdings (NYSE: NVGS), operante come Navigator Gas, ha contratto per costruire due nuove navi cisterna di gas etileno liquefatto con una capacità di 48.500 metri cubi con Jiangnan Shipyard e China Shipbuilding Trading Co. in Cina. Le navi, previste per la consegna a marzo e luglio 2027, costeranno in media $102,9 milioni ciascuna. Questi vascelli saranno in grado di trasportare vari prodotti gassosi, inclusi complessi petrolchimici, GPL e ammoniaca pulita. Presenteranno motori dual-fuel per etano e saranno pronti per il retrofit con carburante di ammoniaca. L'azienda ha anche ottenuto un'opzione per due ulteriori navi con le stesse specifiche.
Il CEO Mads Peter Zacho ha sottolineato che queste navi rafforzeranno le capacità di trasporto di etilene dell'azienda, adattandosi a un panorama di carburanti a basse emissioni di carbonio. Navigator Gas prevede di finanziare le nuove costruzioni con liquidità esistente e nuovo debito, aspettandosi che gli investimenti siano redditizi. L'azienda punta a garantire contratti per le navi prima della loro consegna.
Navigator Holdings (NYSE: NVGS), que opera como Navigator Gas, ha contratado la construcción de dos nuevos buques de gas etileno licuado con capacidad de 48,500 metros cúbicos con Jiangnan Shipyard y China Shipbuilding Trading Co. en China. Los barcos, programados para entrega en marzo y julio de 2027, costarán un promedio de $102.9 millones cada uno. Estos buques podrán transportar varios productos gaseosos, incluidos petroquímicos complejos, GLP y amoníaco limpio. Contarán con motores de doble combustible para etano y estarán listos para la conversión a combustible de amoníaco. La empresa también ha asegurado una opción para dos buques adicionales con las mismas especificaciones.
El CEO Mads Peter Zacho enfatizó que estos buques fortalecerán las capacidades de transporte de etileno de la empresa mientras se adapta a un panorama de combustibles de bajas emisiones de carbono. Navigator Gas planea financiar las nuevas construcciones con efectivo existente y nueva deuda, esperando que las inversiones sean rentables. La empresa tiene como objetivo asegurar fletamentos para los buques antes de su entrega.
내비게이터 홀딩스(NYSE: NVGS)는 내비게이터 가스로 운영되며, 중국의 장난 조선소(Jiangnan Shipyard) 및 중국 조선 무역회사(China Shipbuilding Trading Co.)와 함께 48,500 입방미터 용량의 액화 에틸렌 가스 운반선 두 척을 건조하기로 계약했습니다. 이 선박들은 2027년 3월과 7월에 인도될 예정이며, 각 선박의 평균 비용은 $102.9 백만입니다. 이 배들은 복합 석유 화학물질, LPG 및 청정 암모니아를 포함한 다양한 가스 제품을 운반할 수 있습니다. 또한 에테인용 이중 연료 엔진이 장착되어 있고, 암모니아 연료로 개조할 수 있도록 준비되어 있습니다. 회사는 동일 사양의 추가 선박 두 척에 대한 선택권도 확보했습니다.
CEO 마즈 피터 자코(Mads Peter Zacho)는 이 선박들이 회사의 에틸렌 운송 능력을 강화하면서 저탄소 연료 환경에 적응할 것이라고 강조했습니다. 내비게이터 가스는 기존 현금과 신규 부채로 새로운 건조 비용을 조달할 계획이며, 이러한 투자가 수익을 높일 것이라고 기대하고 있습니다. 이 회사는 선박 인도 전에 정기 운송 계약을 확보하는 것을 목표로 하고 있습니다.
Navigator Holdings (NYSE: NVGS), opérant sous le nom de Navigator Gas, a contracté pour construire deux nouveaux navires méthaniers d'éthylène liquéfié d'une capacité de 48 500 mètres cubes avec Jiangnan Shipyard et China Shipbuilding Trading Co. en Chine. Les navires, prévus pour être livrés en mars et juillet 2027, coûteront en moyenne 102,9 millions de dollars chacun. Ces navires seront capables de transporter divers produits gaziers, y compris des pétrochimiques complexes, du GPL et de l'ammoniac propre. Ils seront dotés de moteurs à double carburant pour l'éthane et seront prêts pour une conversion à l'ammoniac comme combustible. La société a également sécurisé une option pour deux navires supplémentaires ayant les mêmes spécifications.
Le PDG Mads Peter Zacho a souligné que ces navires renforceront les capacités de transport d'éthylène de l'entreprise tout en s'adaptant à un paysage de carburants à faibles émissions de carbone. Navigator Gas prévoit de financer les nouvelles constructions avec des fonds existants et de nouvelles dettes, s'attendant à ce que ces investissements soient rentables. L'entreprise vise à sécuriser des contrats d'affrètement pour les navires avant leur livraison.
Navigator Holdings (NYSE: NVGS), das als Navigator Gas tätig ist, hat einen Vertrag über den Bau von zwei neuen, 48.500 Kubikmeter großen Flüssig-Ethylen-Gas-Tankern mit Jiangnan Shipyard und China Shipbuilding Trading Co. in China abgeschlossen. Die Schiffe, die für die Lieferung im März und Juli 2027 geplant sind, werden im Durchschnitt 102,9 Millionen USD kosten. Diese Schiffe werden in der Lage sein, verschiedene Gasprodukte, einschließlich komplexer petrochemischer Produkte, LPG und sauberem Ammoniak, zu transportieren. Sie sind mit Dual-Fuel-Motoren für Ethan ausgestattet und bereit für eine Nachrüstung auf Ammoniakbrennstoff. Das Unternehmen hat zudem eine Option für zwei zusätzliche Schiffe mit denselben Spezifikationen gesichert.
CEO Mads Peter Zacho betonte, dass diese Schiffe die Transportkapazitäten für Ethylene des Unternehmens stärken werden, während sie sich an eine Umgebung mit kohlenstoffarmen Brennstoffen anpassen. Navigator Gas plant, die Neubauten mit vorhandenen Mitteln und neuen Schulden zu finanzieren und erwartet, dass die Investitionen gewinnbringend sein werden. Das Unternehmen hat das Ziel, vor der Auslieferung Charterverträge für die Schiffe zu sichern.
- 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
- 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
Insights
Navigator Gas's $205.8 million investment in two new ethylene carriers signals a strategic move to capitalize on the growing demand for specialized gas transportation. With delivery scheduled for 2027, this long-term investment demonstrates confidence in market growth. The average price of $102.9 million per vessel appears competitive, potentially yielding positive returns. The company's plan to finance through cash and debt, without issuing new capital, suggests a strong financial position. However, investors should note the lack of pre-secured charters, which introduces some revenue uncertainty. The option for two additional vessels provides flexibility to scale up if market conditions remain favorable. Overall, this expansion could strengthen Navigator Gas's market position and potentially boost future earnings, making it a cautiously positive development for investors.
The technological specifications of these new vessels showcase Navigator Gas's forward-thinking approach. The dual-fuel engines compatible with ethane, a low-carbon transitional fuel, position the company well in the evolving regulatory landscape. Moreover, being retrofit-ready for ammonia fuel demonstrates preparedness for future zero-carbon solutions. The vessels' ability to carry complex petrochemical gases like ethylene and ethane, as well as LPG and clean ammonia, offers versatility in cargo options. This flexibility, combined with their capacity to transit both old and new Panama Canal locks, enhances operational efficiency. These features collectively represent a significant technological edge, potentially reducing operational costs and improving competitiveness in the long run. This investment in advanced technology could yield substantial benefits as the industry transitions towards cleaner fuels.
Navigator Gas's order for new ethylene carriers aligns with broader market trends in the petrochemical industry. The growing demand for ethylene, particularly in Asia, supports the company's expansion strategy. By strengthening the link between their Morgan's Point export terminal and global customers, Navigator Gas is positioning itself to capture a larger market share. The vessels' versatility in carrying various gas products, including clean ammonia, also taps into the emerging low-carbon fuel market. However, the lack of pre-secured charters for these vessels introduces some market risk. The option for two additional vessels provides a hedge against potential market upswings. Investors should monitor global petrochemical demand trends and clean energy transitions, as these factors will significantly impact the success of this investment. Overall, this move appears well-timed to capitalize on evolving market dynamics in the specialized gas transport sector.
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
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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?
