![Navigator Holdings Says Petrochem Gas Shipments to Offset LPG Drop Navigator Holdings Says Petrochem Gas Shipments to Offset LPG Drop](https://gcaptain.com/wp-content/uploads/2013/11/Screen-Shot-2013-11-20-at-5.01.21-PM.jpg)
Navigator Holdings Says Petrochem Gas Shipments to Offset LPG Drop
By Swetha Gopinath
Jan 14 (Reuters) – Shipper Navigator Holdings Ltd expects continued demand for petrochemical gases within the fourth quarter to make up for a fall in liquefied petroleum gasoline (LPG) shipments brought on by the hunch in oil costs, a senior govt advised Reuters.
Navigator, backed by billionaire-investor Wilbur Ross, expects a utilization charge of about 97 % for its fleet regardless of the weak oil market, and is according to its ten-year common, Chief Financial Officer Niall Nolan stated.
The shale growth within the United States has resulted in an abundance of LPG, a byproduct of oil refining and pure gasoline manufacturing, and enormous portions are being shipped abroad.
But the 60 % drop in international crude costs since June has squeezed alternatives for merchants to revenue from transferring LPG from the United States to Europe, the place LPG was expensive. That has harm Navigator and its rivals.
Shares of Navigator, by which Ross has a 40 % stake, have misplaced greater than a 3rd of their worth since June. Rivals StealthGas Inc and Dorian LPG Ltd have declined 42.5 %, on common, in the identical interval.
Navigator’s fleet of 25 vessels ship petrochemical gases equivalent to ethylene, used to make plastics, vinyls and resins, apart from LPG and ammonia.
The petrochemical business has seen sturdy progress over the previous decade, pushed by the supply of low-cost uncooked supplies and strong demand from the plastics and building industries in Asia.
“It’s the ability to shift between LPG and petrochemical gases that enables us to maintain not only our utilization, but our rates as well,” stated Nolan.
North America has been vying with the Middle East to be the highest provider of LPG, principally butane and propane used for heating, cooking and more and more in transport.
Navigator shares have been buying and selling down 6.5 % at $16.15 in afternoon buying and selling on the New York Stock Exchange. (Editing by Savio D’Souza)
(c) 2015 Thomson Reuters, All Rights Reserved
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