New York-listed Navigator Holdings has revealed a bet on clean ammonia in the US Gulf.

The LPG carrier owner’s board has approved a $2.5m investment in an export project in its early stages of development in the coastal area.

The company expects to pump in the first cash in the second or third quarter of this year.

More details are promised as the work progresses.

“This initial investment is development capital, and subject to board approval, we also expect to make larger investments at final investment decision and during the construction phase of the project towards a terminal and ship-shore logistics,” Navigator said.

The company posted net earnings in the first quarter of $24.9m, up from $18.9m a year ago, due to lower voyage expenses.

Revenue dropped to $134.2m, against $136m in 2023.

The dividend will be $0.05 per share, but Navigator also expects to buy back $2m of its own shares so that the two capital return measures together can equal 25% of profit.

The mid-sized LPG carrier fleet managed an average rate of $28,339 per day in the first three months, up from $25,620 the year before.

Utilisation fell from 91.3% in the fourth quarter of 2023 to 89.3%.

This was due to a reduction in activity across the spot fleet in the semi-refrigerated segment.

Ethane market robust

LPG demand dropped across all vessel sizes, the company said.

But requirements for ethane shipping from the US Gulf to China were robust, the owner added.

This was driven primarily by a continued reduction in available Panama Canal transits and ethane carriers opting to proceed via the Cape of Good Hope rather than through the Suez Canal.

Navigator had 31 vessels engaged under time charters, with 16 ships operating spot and on contracts of affreightment.

Nine LPG carriers operated in the independently managed Unigas Pool.

For the year from 1 April, the company has 46% of available days covered under time charters with fixed earnings.