Developments at Navigator Holdings

There’s a recent thread on Capital Product Partners (CPLP) venture into the MGC (Midsize Gas Carrier) arena via a major newbuild order of 10 vessels (MGCs or LCO2s).

I recall Exmar having a fleet of MGCs. I forgot all about their competitor Navigator Holdings (NVGS). Let me throw a name at you - Wilbur Ross. Yup, before he became Secretary of Commerce, Wilbur Ross was involved with Navigator Holdings (NVGS). The company started out with a small fleet, but gained size and stature when they acquired a dozen or so vessels Gas Carriers from Maersk. Then NVGS branched into constructing and owning an Ethylene terminal. That was probably in the 2016 - 2018 timeframe. Then I lost track of them.

What has Navigator Holdings been up to in the last 5 years? Well, completing the Ethylene terminal and expanding their fleet. A major chunk of the latter came via the acquisition of rival UltraGas. Also, in the last 5 years, the company got a big shareholder in the form of BW Group. Last week, BW Group announced plans to trim their NVGS stake by 6M shares|section%3Asummary|section_asset%3Aall_news|first_level_url%3Asymbol|button%3ATitle|lock_status%3ANo|line%3A2

Interestingly, NVGS have agreed to buy back 50% of the 6M shares.

The latest NVGS earnings presentation

Slide 18 - Enumeration of LPG fleet
148 MGCs in operation and 48 MGC newbuilds

Additional data-points

  1. It appears the terminal is considered a Joint Venture
  2. Time charter rates for various vessel sizes (Slide 17) is helpful

Been perusing thru older Press Releases of NVGS.

  1. The Wilbur Ross stake was acquired by BW Group in Dec 2020

  2. The UltraGas acquisition was completed via issuing NVGS and assuming debt in Aug 2021

One comment in the release - the 50% stake in the export terminal was valued @ $260M. Subsequent to that event, expansion plans of the terminal were announced.

Most recent release - the BW Group upsized the offering to 7M shares. Sold to the underwriters @ $14.52/sh. The company had acquired the shares @ $9/sh.

BW Group is a conglomerate involved in other sectors besides shipping. So who really knows the reason behind them selling a portion of their NVGS stake? On paper, the deal looks good for NVGS. But, the company still has Capex spending for the export terminal, and other projects