Navig8 Product Tankers Inc. Reports Results for the Three Months Ended March 31, 2017

LONDON, May 15, 2017 — Navig8 Product Tankers Inc. (the “Company”) (N-OTC: EIGHT), an international shipping company focused on the transportation of petroleum products, today announced its unaudited financial and operating results for the three months ended March 31, 2017.

Highlights

• Reported revenue of $38.3 million and net loss of $1.2 million, or ($0.02) per basic and ($0.04) per fully diluted share, for the three months ended March 31, 2017.
• Accepted delivery of two newbuilding vessels during the three months ended March 31, 2017.
• Increased vessel operating days by 62% for the three months ending March 31, 2017 compared to the same period in the prior year.

“Product tanker rates began to rebound in the first quarter of 2017 as the pace of newbuilding deliveries abated and global inventories of refined products decreased,” said Nicolas Busch, Chief Executive Officer of Navig8 Product Tankers, Inc.  “Demand in most product trades have remained relatively strong despite inventory destocking.  With product tanker fleet growth expecting to slow dramatically and potentially contract beyond 2017, we expect the market to become increasingly tight as the year progresses.”

Fleet Update

The Company entered into contracts to acquire 30 modern, fuel-efficient newbuilding product tankers. During the second quarter of 2015, the Company entered into an agreement with an unrelated third party to sell three LR2 vessels which were under construction at Sungdong Shipbuilding & Marine Engineering Co, Ltd, Korea, for total sale proceeds of $178.5 million, realizing a total net gain on sale of $24.1 million. These vessels were delivered to the buyer in 2015.

As of the date of this release, 26 vessels have been delivered to the Company and are in operation.  The Company anticipates taking delivery of its final newbuilding vessel in the second quarter of 2017. Following this last delivery, the Company’s vessels will all be deployed in the LR8 and Alpha8 commercial pools, both managed by Navig8 Group. 

The Company’s fleet comprises:

• Seven 109,999 DWT LR2 product tankers (the “Sungdong Vessels”) built at Sungdong Shipbuilding & Marine Engineering Co. (“Sungdong”). The Company took delivery of the final Sungdong vessel in August 2016; all vessels operate in Navig8 Group’s Alpha8 pool.
• Eight 113,000 DWT LR2 product tankers (the “CSSC Vessels”) built at CSSC Offshore & Marine Engineering (Group) Company Limited (“CSSC Offshore”), formerly known as Guangzhou Shipyard International Company. Seven vessels have now been delivered, including two in January 2017. The Company anticipates taking delivery of the remaining vessel during the second quarter of 2017; all vessels are operating, or are due to operate, in Navig8 Group’s Alpha8 pool.
• Eight 74,000 DWT LR1 product tankers (the “STX Vessels”) built at STX Offshore & Shipbuilding Co., Ltd. (“STX”). The Company took delivery of the final STX vessel in May 2016; all vessels operate in Navig8 Group’s LR8 pool.
• Four 74,000 DWT LR1 product tankers (the “SPP Vessels”) built at SPP Shipbuilding Co., Ltd (“SPP”). The Company took delivery of the final two SPP vessels during the three months ended December 31, 2016; all vessels operate in Navig8 Group’s LR8 pool.