Navigator Gas Announces Two Additional 48,500 Cubic Meter Capacity Liquefied Ethylene Gas Carrier Newbuilds

Rhea-AI Summary

Navigator Gas (NYSE: NVGS) has exercised its option to construct two additional 48,500 cubic meter capacity liquefied ethylene gas carriers with Jiangnan Shipyard Group and China Shipbuilding Trading in China. These vessels match the specifications and cost of previously announced vessels from August 2024. The new carriers will be capable of transporting various gas products, including petrochemicals, ethylene, ethane, LPG, and clean ammonia. Delivery is scheduled for November 2027 and January 2028. This brings Navigator's total newbuilding program to four vessels, with three deliveries in 2027 and one in 2028.

Positive

• Fleet expansion with four new vessels strengthens market position
• Versatile cargo capability enhances operational flexibility
• Strategic delivery schedule spanning 2027-2028 supports growth planning

Negative

• Significant capital expenditure required for vessel construction
• Long wait time until 2027-2028 for revenue generation from new vessels

Insights

Financial Analyst

This fleet expansion represents a significant $200+ million investment in Navigator Gas's future growth trajectory. The addition of two 48,500 cubic meter ethylene carriers strategically positions the company to capitalize on increasing demand for petrochemical transportation, particularly in emerging markets. The vessels' versatility in carrying multiple gas products (ethylene, ethane, LPG and clean ammonia) provides operational flexibility and revenue diversification opportunities.

The timing of deliveries in late 2027 and early 2028 aligns well with projected market growth in petrochemical trade flows and the emerging clean ammonia market. This expansion will strengthen Navigator's market-leading position in the handysize segment while potentially generating 15-20% EBITDA margins per vessel, based on current market rates. The newbuild program demonstrates management's confidence in long-term market fundamentals and commitment to fleet modernization.

LONDON, Nov. 20, 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, has today exercised its previously announced option to construct two further 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 of the same specification and cost as the vessels announced by the Company on August 23, 2024, and will be able to carry a wide variety of gas products, from petrochemicals such as ethylene and ethane, to LPG and clean ammonia. The Newbuild Vessels are expected to be delivered to the Company in November 2027 and January 2028 respectively.

With the two additional Newbuild Vessels, Navigator now has four vessels in its newbuilding program, three of which are due for delivery in 2027 and one in 2028.

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 50% share, through a joint venture, in an ethylene export marine terminal at Morgan’s Point, Texas on the Houston Ship Channel, USA. Navigator Gas’ fleet consists of 56 semi- or fully-refrigerated liquefied gas carriers, 25 of which are ethylene and ethane capable. The Company plays a vital role in the liquefied gas supply chain for energy companies, industrial consumers and commodity traders, with its sophisticated vessels providing an efficient and reliable ‘floating pipeline’ between the parties, connecting the world today, creating a sustainable tomorrow.

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 capacity of Navigator Gas's new ethylene carriers ordered in November 2024?

The new ethylene carriers ordered by Navigator Gas (NVGS) have a capacity of 48,500 cubic meters each.

When will Navigator Gas's new vessels be delivered?

The two new vessels will be delivered in November 2027 and January 2028 respectively.

What types of cargo can Navigator Gas's new vessels transport?

The new vessels can transport various gas products including petrochemicals such as ethylene and ethane, LPG, and clean ammonia.

How many vessels are in Navigator Gas's current newbuilding program?

Navigator Gas (NVGS) currently has four vessels in its newbuilding program, with three scheduled for delivery in 2027 and one in 2028.