NVGS - Navigator Holdings: Developing On-Shore Terminal Roots To Fuel Growth

2024-06-30 06:20:45 ET

Summary

• Navigator Holdings is expanding its on-shore terminal foothold through ethylene and ammonia export terminal projects.
• Investments in terminals boost both bottom line and shipping demand, driving growth in shipping rates for the company's handy-sized vessels.
• Improved financials, debt reduction, and cash flow analysis support long-term success and shareholder rewards.
• The company benefits from both rising shipping rates and lower interest expenses to grow EBITDA and net income.

Thesis

Navigator Holdings ( NVGS ) is continuing to grow its on-shore terminal foothold through expansions of its existing ethylene export terminal and its recent announcement of participation in a joint venture to develop an ammonia export terminal.

Investments in on-shore terminals serve NVGS as a powerful 1-2 punch by allowing the company to participate in more than one aspect of the NGL and petrochemical value chain. First, the new terminals have an immediate impact to the bottom line. Second, the terminals bring more product into the shipping market which drives increased demand in the company's main shipping business....

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