Major LPG carrier player Navigator Holdings is expecting improved profit into 2024 after logging record earnings.
The US-listed midsize carrier owner posted a net result of $19.1m for the third quarter, versus $2.4m a year ago.
Revenue rose to $137.8m, against $106.8m in 2022, with adjusted Ebitda the best ever at $72.2m.
Navigator expects to buy back $1.1m of its own shares before the end of the year.
The dividend of $0.05 per share combined with the buyback will equal 25% of profit.
Fleet utilisation increased to 93.4% from 84.9% year on year.
Average daily time charter equivalent earnings were $26,278, up from $22,022 a year ago.
The result was primarily driven by improvement in market conditions for the ethylene-capable vessels.
The owner “experienced downward pressure on the ethylene arbitrage to Asia” during the period, but this was balanced by increased activity on ethane movements, both transatlantic and to Asia.
Asian trips increased the tonne-mile total.
Busier season coming
Ethylene spot rates were flat, but utilisation and time charter rates have improved.
Navigator has 32 vessels on time charters, and 15 operating spot and on contracts of affreightment.
Most of the ethylene ships are spot units.
For the year to 31 October 2024, the shipowner expects 38% of vessel days to be covered by charters.
It said the fourth quarter of this year and the first three months of 2024 are typically busier periods.
“We expect to see an increase in spot activity and an increase in time charter assessment, as well as a continuation of the positive market developments we have recently seen,” it added.
In September, Navigator bought back $9m of its 2020 bonds in the open market using cash.
