NEW YORK (TheStreet) -- Navigator Holdings
(NVGS - Get Report) was gaining 9.6% to $26.43 Wednesday after the company exercised an option for three newbuilds.
Navigator announced it exercised its option to build three additional 35,000 cubic meter ethylene/ethane capable semi-refrigerated liquefied gas carriers in addition to one such vessel that's already under construction. The new vessels will be built at the Jiangnan Shipyard in China for $78.4 million each.
The vessels are designed in anticipation of ethane becoming available as a result of U.S. shale gas production, and "the desire by international petrochemical companies to diversify their feedstock supplies with low cost U.S. ethane."
Navigator has 13 other vessels in its newbuilding program, with four scheduled for delivery in 2014, four in 2015, and five in 2016.
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NVGS data by YCharts
"Navigator Holdings Ltd. is engaged in owning and operating fleet of handysize liquefied gas carriers. The Company provides international and regional seaborne transportation services of liquefied petroleum gas (LPG), petrochemical gases and ammonia for energy companies, industrial users and commodity traders. The Company's fleet consists of approximately 30 semi or fully-refrigerated handysize liquefied gas carriers. The Company's fleet loads, discharges and carries cargoes across a range of temperatures from ambient to minus 104° celsius and pressures from 1 bar to 6.4 bars. It carries LPG for international energy companies, state-owned utilities and commodities traders. The Company also carries petrochemical gases for numerous industrial users. Petrochemical gases, including ethylene, propylene, butadiene and vinyl chloride monomer, are derived from the cracking of petroleum feedstocks such as ethane."
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