This corporate results story centers on Navigator Gas, which posted the strongest quarter in its 25 year history as U.S. gas exports and longer trade routes lifted vessel earnings. Second quarter net income attributable to shareholders reached $53 million, while adjusted earnings before interest, taxes, depreciation and amortization were $86.4 million. Average time charter equivalent earnings rose to a record $33,946 a day and fleet use reached 90.8%.
Chief executive Mads Peter Zacho said strong demand and longer voyages tightened capacity in the handysize ethylene market. Navigator earned an average $28,216 a day in the same period a year earlier. The company sees ethane as its strongest structural growth market because U.S. feedstock remains competitive and export infrastructure is expanding.
Navigator has six newbuildings on order, including four vessels able to carry ethane and ethylene that are due between December 2026 and December 2027. Its 50 percent owned Morgan Point ethylene terminal near Houston handled a record 374,278 tons during the quarter and generated $7.1 million in equity earnings. The terminal operated close to its stated capacity and management expects record annual volume in 2026.
The handysize gas carrier orderbook equals about 11% of the current fleet, while roughly 17% of vessels are more than 25 years old. Navigator believes vessel retirements could keep net fleet growth limited as U.S. exports increase. That balance would support freight demand even if second quarter conditions ease, while the company refreshes its fleet and raises its fixed quarterly dividend to 8 cents a share.