LONDON - Navigator Holdings Ltd. (NYSE: NYSE:NVGS), a leading provider of seaborne transportation services for petrochemical gases, disclosed that BW Group Limited, a shareholder in the company, is publicly offering 6 million shares of Navigator Gas's common stock. The company itself is not selling any shares and will not receive proceeds from this secondary offering.
In a strategic move, Navigator Gas has expressed its intention to repurchase 3 million shares from the underwriters at the same price paid to BW Group Limited, without any discount or commission. This share repurchase is contingent on the successful completion of the secondary offering and customary closing conditions. The company plans to fund this transaction with available cash on hand.
The board of directors, following recommendations from a special committee, has approved the terms of the share repurchase. Both the secondary offering and the share repurchase are expected to close simultaneously, although the former is not dependent on the latter.
Citigroup and DNB Markets, Inc. are managing the secondary offering process. The offering is based on a shelf registration statement filed with the U.S. Securities and Exchange Commission on June 28, 2023, and declared effective on July 11, 2023.
Navigator Gas, known for operating the world's largest fleet of handysize liquefied gas carriers, has a diversified fleet that includes 56 semi- or fully-refrigerated liquefied gas carriers. The company's common stock is publicly traded on the New York Stock Exchange.
In other recent news, Navigator Holdings Ltd. has been the subject of an updated outlook from Stifel, which raised its target price from $19 to $21 while maintaining a "Buy" rating. This follows a strong earnings report from the company, with EBITDA surpassing estimates despite lower than expected throughput at its ethylene export terminal. The firm is planning an expansion of its ethylene capacity, set to commence in 2025, which is projected to significantly increase annual EBITDA.
Additionally, Navigator Holdings has announced a $2.5 million investment into preliminary studies for a new clean ammonia export facility, which is still in its early stages. In the shipping market, Navigator has seen a rise in rates, attributed to market tightening. Stifel's positive stance on Navigator Holdings is bolstered by the anticipated benefits of the ethylene expansion and the potential of the new clean ammonia project.
Navigator Gas, in its Q1 2024 earnings call, announced robust financial results, with operating revenues maintaining parity with the same period last year. The company achieved a record adjusted EBITDA of $74 million and an adjusted net income of $23 million. The company's board has greenlighted an investment in a clean ammonia export project on the U.S. Gulf Coast. These are among the recent developments in the company's operations.
InvestingPro Insights
Navigator Holdings Ltd. (NYSE: NVGS) has recently announced a notable secondary offering and concurrent share repurchase plan. In light of these developments, there are several key metrics and insights from InvestingPro that could help investors better understand the investment landscape of NVGS.
InvestingPro data indicates that Navigator Holdings Ltd. is currently trading with a P/E Ratio of 13.86 and an adjusted P/E Ratio for the last twelve months as of Q1 2024 at 14.38. This valuation can be considered attractive, especially when paired with the company's PEG Ratio for the same period, which stands at a low 0.14, suggesting potential for growth relative to earnings.
The company's financial health is further underscored by a strong Gross Profit Margin of 55.66% over the last twelve months as of Q1 2024, showcasing efficient operations and a robust pricing strategy. Additionally, NVGS has demonstrated solid revenue growth of 12.01% over the last twelve months, although the most recent quarterly figure shows a slight contraction of -1.36%.
InvestingPro Tips for NVGS highlight that the stock generally trades with low price volatility, which could be an attractive feature for risk-averse investors. Furthermore, analysts predict the company will be profitable this year, and it has been profitable over the last twelve months. These insights could be particularly relevant for investors considering the company's stock amid the current financial activities.
For those interested in further analysis, there are additional InvestingPro Tips available that delve deeper into NVGS's performance and projections. By using the code PRONEWS24, investors can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to these valuable insights. Currently, there are 4 more InvestingPro Tips listed for NVGS, which can be explored for a more comprehensive investment strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.