Dalton Willett's questions to Navigator Holdings Ltd (NVGS) leadership • Q2 2025
Question
Dalton Willett of Charmos Capital Partners asked how the company manages the investment risk for its newbuilds given potential changes to IMO carbon regulations. He also questioned the timing and strategic rationale for the recent balance sheet restructuring and refinancing.
Answer
CEO Mads Peter Zacho addressed the newbuild risk, highlighting that the ethane carriers will use cost-competitive ethane fuel, while the dual-fuel ammonia carriers offer flexibility and have a five-year charter securing their return. CFO Gary Chapman and CEO Mads Peter Zacho explained that the balance sheet actions were timed to take advantage of strong market liquidity to lower debt costs, extend maturities, and provide flexibility for new projects, consistent with their ongoing capital return strategy.