Navigator Gas Ammonia Joint Venture

Two New Build Ammonia Capable Vessels on Long Term Charters

Navigator Gas sits at the middle of a Venn Diagram of the things we look for at the TDC in an investment opportunity. The business is exceptionally well operated providing alignment with a strong majority shareholder via the Von Appen’s, it trades for 50% of replacement cost to a Net Asset Value that continues to compound with new fleet growth and share repurchases, and it has huge barriers to entry as chemical shipping is inherently a difficult business to enter and requires deep expertise.

Among other things Net Assets continue to grow with the news on July 17th that Navigator was entering into a joint venture with Amon Maritime, a Norwegian based shipping business to build two new ammonia capable and ammonia fueled vessels with expected delivery in 2028. The joint venture is an 80/20 split and a price per vessel of $84M less $9M per vessel from the Norwegian government agency Enova via grants for specialized vessel construction. The vessels are on long term 5-year charters and are expected to generate double digit unleveraged IRRs and high teens / low twenty percent IRRs with leverage. Let’s look at the new build economics.

New Build Economics