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

https://seekingalpha.com/news/4114987-navigator-holdings-slides-on-launch-of-secondary-offering?source=content_type%3Areact|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
https://investors.navigatorgas.com/events-and-presentations/default.aspx

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
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Been perusing thru older Press Releases of NVGS.

  1. The Wilbur Ross stake was acquired by BW Group in Dec 2020
    https://navigatorgas.com/wl-ross-co-announces-agreement-to-sell-its-39-1-equity-interest-in-navigator-holdings-to-bw-group-limited/

  2. The UltraGas acquisition was completed via issuing NVGS and assuming debt in Aug 2021
    https://investors.navigatorgas.com/press-releases/news-details/2021/NAVIGATOR-HOLDINGS-LTD-COMPLETES-ON-THE-TRANSACTION-TO-MERGE-THE-FLEET--BUSINESSES-OF-ULTRAGAS-APS--08-04-2021/default.aspx

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