Navigator makes loss, flags uncertainty

LPG shipowner Navigator Gas' losses increased last year, and it said there is significant uncertainty surrounding how the coronavirus pandemic will effect its performance this year.

Navigator made a loss of $2.8mn in the fourth quarter, compared with a $3.9mn loss for the same period a year earlier. Its loss for the full year was $16.7mn, compared with a $5.7mn loss in 2018.

Fleet utilisation improved to 92.6pc in the fourth quarter, but average utilisation was down at 86.8pc for the full year from 89pc in 2018 because of a weaker LPG and petrochemical market, the firm said. The firm's fleet had a busier dry-dock schedule last year, but it benefited from a slight increase in time charter equivalent (TCE) rates to $20,831/d, from $20,284/d in 2018.

Navigator has a fleet of 31 semi-refrigerated gas carriers, of which 16 are available on the spot market. It owns and operates seven larger fully-refrigerated carriers, all on a time-charter basis.

It warned that the coronavirus pandemic may restrict seaborne transportation LPG and petrochemical products, but said the ultimate effect of this is uncertain. It has not seen a significant decrease in charter rates related to the pandemic but said it has noticed vessel utilisation falling towards 80pc, levels that usually occur in summer months. Navigator said uncertainty over LPG and petrochemical prices has made charterers cautious, but it has received no requests for cancellations or reductions.

But, some operational difficulties have arisen, including offshore crew-change suspensions and onshore employees working remotely. Dry docking schedules have been delayed, and two bookings for maintenance in China were cancelled.

Operating costs have fallen thanks to lower bunker fuels costs.

In March Navigator partnered with Singapore-based Pacific Gas and Greater Bay Gas to form a pool of 14 handy-sized ethane and ethylene carriers aimed at transporting US product to Asia-Pacific. This followed the first loading of US ethylene and ethane at Morgan's Point, Texas, Navigator's joint venture ethylene terminal with Enterprise Product Partners, in January.

By Hugo Slater