Why Shares of Navigator Holdings and Teekay Are Up Today
Shares of Navigator Holdings (NYSE: NVGS) and Teekay Tankers (NYSE: TNK) each gained more than 10% on Thursday, and holding company Teekay (NYSE: TK) was up more than 5% as strong demand from the energy sector lifted shipping companies as a group.
Navigator Holdings, an owner and operator of a fleet of liquefied gas carriers as well as ships that transport ethylene, ethane, and ammonia, reported a third-quarter loss of $0.05 per share on revenue of $75.62 million, beating analyst estimates for a $0.07 loss on $60 million in sales.
The company credited tensions in the Middle East and more competitive U.S. butane pricing for creating new demand for U.S. gases from India, and increasing business with China. "Geopolitical tension in the Middle East resulted in the introduction of substantial war risk premiums on shipping through the Straits of Hormuz, which made spot movements of LPG and petrochemical cargoes less economical," Navigator management said in a statement announcing results.
Source Fool.com
