Fetching stock name to keep an eye on: Navigator Holdings Ltd. (NYSE: NVGS)

On 22 Jan 2020, Navigator Holdings Ltd. (NYSE: NVGS) stock observed trading -7.36% off 52-week high price. On the other end, the stock has been noted 44.64% away from low price over the last 52-weeks. The stock disclosed a move of 2.74% away from 50 day moving average and 18.79% away from 200 day moving average. Moving closer, we can see that shares have been trading -2.54% off 20-day moving average. The United Kingdom based company Navigator Holdings Ltd. moved with change of 1.97% to $12.96 with the total traded volume of 145569 shares in recent session versus to an average volume of 100.34K.

Navigator Holdings Ltd (NVGS) stated operating revenue of $75.6M for the three months ended September 30, 2019, contrast to $80.8M for the three months ended September 30, 2018.

Net loss was $2.9M (loss per share of $0.05) for the three months ended September 30, 2019 (which includes a $1.0M non-cash loss on exchange rate movements), contrast to net income of $0.6M for the three months ended September 30, 2018.

Adjusted EBITDA1 was $29.5M for the three months ended September 30, 2019 contrast to $30.4M for the three months September 30, 2018.

We have contracted with seven new consumers during the third quarter, as well as a twelve-month charter with a major petrochemical producer for one of our ethane-capable midsize vessels at a rate in excess of $30,000 per day.

A fourth long term throughput contract has been signed for the Marine Export Terminal with a major petrochemical producer, increasing total offtake commitments to about 75% of nameplate capacity. The committed contracts cover a period of five to seven years.

Our 50/50 joint venture relating to our ethylene export marine terminal at Morgan’s Point, Texas (the “Marine Export Terminal”) is forecast to be operational on time and on budget with our first loading plannedfor December 2019.

Following the technical management takeover of Navigator Prominence we have now taken 16 vessels into in-house management.

On October 29, 2019, the Company closed a sale and leaseback transaction to refinance Navigator Aurora. The sale price agreed was $77.5M, with the buyer paying 90% of the vessel’s value, or $69.75M and a seller’s credit representing the remaining 10%. From the proceeds, $44.5M was used to repay the vessel’s secured tranche of the December 2015 secured term loan facility. Simultaneous with this sale, the Company entered into a bareboat charter for the vessel for a period of up to 13 years, with break clauses at years 5, 7 and 10.

The handysize section remained flat during the third quarter with 12-month time charter rates hovering about $545,000 pcm to current rates of $575,000 pcm, experiencing a time-lag for the positive effects from stronger freight markets for the larger sections above. Geopolitical tension in the Middle East resulted in the introduction of substantial war risk premiums on shipping through the Straits of Hormuz, which made spot movements of LPG and petrochemical cargoes less economical. It appears that only the Very Large Gas Carrier (“VLGC”) market has been able to absorb these increased premiums on their trades.

The handysize section is continuously expanding its footprint creating new trades that increase incremental demand. We have contracted with seven new clients during the third quarter, putting the handysize’s versatility to practice in new markets in China and in Africa. One example is a new Indian coastal propylene cabotage trade, which balances the domestic market. This is the first time we have engaged one of our handysize vessels for this trade.

The belief in a stronger freight market is underpinned by newbuilding order activity in the market. Six medium-sized gas carriers and two handysize ethylene carriers were confirmed ordered during the third quarter, all with anticipated delivery time within two years.

NVGS’s shares are at 15.61% for the quarter and driving a 42.11% return over the course of the past year and is now at -3.79% since this point in 2018.  Right now, the stock beta is 1.11. The average volatility for the week and month was at 3.07% and 3.03% respectively. There are 55.45M shares outstanding and 33.96M shares are floated in market.

 

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