Navig8 Chemical Tankers Inc. Reports Results for the Three and Twelve Months Ended December 31, 2015

LONDON, UNITED KINGDOM--(Marketwired - Feb 9, 2016) - Navig8 Chemical Tankers Inc. (the "Company") (N-OTC: CHEMS), an international shipping company focused on the transportation of chemicals, today announced its unaudited financial and operating results for the three and twelve months ended December 31, 2015.

Highlights

• Revenue of $35.3 million and net income of $9.1 million, or $0.24 per share, for the three months ended December 31, 2015.
• Entered into contracts to purchase five IMO2 49,000 DWT chemical tankers at STX Offshore & Shipbuilding with options to purchase five additional sister ships.
• Signed $52 million debt facility with DVB Bank SE to finance the purchase of two ECO 49,000 DWT chemical tankers on bareboat charter, one of which was purchased by the Company in December 2015.
• Continued growth of the Company's operating fleet with the delivery of 2 vessels; 19 vessels of the Company's 37-vessel newbuilding fleet had been delivered as of December 31, 2015.
• All delivered vessels have been deployed in pools managed by the Navig8 Group.

"We are pleased to report strong earnings results on the back of additional deliveries in our newbuilding program. Greater than half of our fleet has now been delivered, and we are beginning to generate substantial revenue," said Nicolas Busch, Chief Executive Office of Navig8 Chemical Tankers Inc.

"The increasing acceptance of vessels with Interline coatings among leading chemical industry participants as well as the continued increase in long-haul petrochemical trades, particularly the growing movement of methanol cargoes from the Caribbean and U.S. Gulf to Asia, has us very optimistic about our strategic position. We remain bullish on our outlook for increasing long-haul trades as additional chemical manufacturing capacity comes online in the U.S. and Middle East and China transitions from an industrial to a consumer led economy. We reaffirmed our commitment to this investment thesis by entering into contracts to purchase four IMO2 49,000 DWT Interline coated tankers in October and exercising an option to purchase a fifth sister ship in December."

Fleet Update

The Company has entered into contracts to acquire 37 modern, fuel-efficient newbuilding chemical tankers. As of the date of this press release, 20 of these vessels have been delivered and are in operation. The fleet is scheduled to be fully delivered by September 2017. Eight additional vessels are scheduled to be delivered during the remainder of 2016, and the final nine in 2017. Upon their respective deliveries, the Company's vessels will be deployed in commercial pools managed by the Navig8 Group, including the Chronos8, Delta8 and Stainless8 pools. The Company's newbuilding fleet is composed of:

Eighteen IMO2 37,000 DWT Interline coated tankers built at Hyundai Mipo, Korea ("A-Class vessels"), all of which have been delivered. The A-Class vessels have been deployed in the Delta8 pool. The Company took delivery of two A-Class vessels during the three months ended December 31, 2015 and its final A-Class vessel in January 2016.

Nine IMO2 49,000 DWT Interline coated medium range tankers ("T-Class vessels") built at STX Offshore & Shipbuilding Co., Ltd. in Korea ("STX"). In October 2015, the Company entered into contracts to purchase four T-Class vessels to be built to the same technical specifications as the Company's preexisting orders with STX, including the capability to transport methanol and other specialty cargoes. The Company also announced that it had secured options to purchase six additional sister vessels from STX (each, an "Option vessel"). In December 2015, the Company announced that it had exercised an option to acquire, and entered into a contract to purchase, an Option vessel. The Company's nine T-Class vessels will be deployed in the Chronos8 pool. The Company expects four T-Class vessels to be delivered between April and September 2016 and the remaining five by June 2017.

Two IMO2 49,000 DWT Epoxy coated medium range tankers built at Hyundai, Vinashin ("V-Class vessels"). Both V-Class vessels were delivered on bareboat charters in the first quarter of 2015; the Company purchased one of these vessels pursuant to its purchase obligation in December 2015 and expects to purchase the other vessel in the first quarter of 2016. The V-Class vessels are currently deployed in the Chronos8 pool.

Eight IMO2 25,000 DWT stainless steel tankers built at Kitanihon and Fukuoka (Japan) ("S-Class vessels"). The S-Class vessels will be deployed in the Stainless8 pool. The Company expects four S-Class vessels to be delivered in 2016 and the remaining four by September 2017.

Financing Update

The two V-Class vessels, the Navig8 Victoria and the Navig8 Violette, were delivered to the Company earlier in 2015 under 12-month bareboat charters, which commenced at their respective delivery dates, with purchase obligations at the end of the charters. In December 2015, the Company entered into a $52 million debt facility to finance the purchase of the two V-Class vessels pursuant to its purchase obligations upon expiry of their bareboat charters. The loan facility covers approximately 65% of the purchase price of the vessels, and has been provided by DVB Bank SE. The Company took ownership of the Navig8 Victoria in December 2015 and expects to take ownership of the Navig8 Violette in March 2016.

The Company expects to have financing in place for the unfinanced T-Class and S-Class vessels well ahead of the respective deliveries.

Results for the three months ended December 31, 2015 and 2014

For the three months ended December 31, 2015, the Company reported net income of $9.1 million, or $0.24 per share, an increase of $11.1 million from a net loss of $2.0 million for the three months ended December 31, 2014, when the Company had not yet taken delivery of any of the vessels in its newbuilding program.

Results for the twelve months ended December 31, 2015 and 2014

For the twelve months ended December 31, 2015, the Company reported net income of $20.7 million, or $0.54 per share, an increase of $25.3 million from a net loss of $4.6 million for the twelve months ended December 31, 2014.

Management's Discussion and Analysis of Financial Results

Revenue for the three months ended December 31, 2015 was $35.3 million, compared to no revenue for the three months ended December 31, 2014. The total number of vessel operating days for the three months ended December 31, 2015 was 1,682, compared to 1,283 for the three months ended September 30, 2015 and zero for the three months ended December 31, 2014.

The gross average daily time charter equivalent ("TCE")⁽¹⁾ earned by the A-Class vessels and the V-Class vessels in the three months ended December 31, 2015, were $21,654 per day and $21,440 per day, respectively. The Company had 19 vessels operating during the three months ended December 31, 2015, all of which operate in pools from which they derive TCE revenue.

Vessel operating expenses were $10.3 million for the three months ended December 31, 2015, an increase of $10.3 million from the three months ended December 31, 2014, when the Company had not yet taken delivery of any of the vessels in its newbuilding program. Average fleet operating costs per day, including technical management fees, were approximately $5,441 for the three months ended December 31, 2015.

Depreciation expense for the three months ended December 31, 2015 was $6.6 million, an increase of $6.6 million compared to the three months ended December 31, 2014. This is due to the Company beginning to depreciate vessels in its newbuilding fleet as they are delivered.

General and administrative expenses for the three months ended December 31, 2015, were $2.3 million, an increase of $0.2 million from $2.0 million for the three months ended December 31, 2014. This increase is related to the growing size of the Company's fleet and hence various management and general administrative costs.

Interest expense for the three months ended December 31, 2015 was $7.0 million, as compared to no interest expense in the three months ended December 31, 2014, when the Company had not yet taken delivery of any of the vessels in its newbuilding program.

⁽¹⁾ Time charter equivalent, a non-US GAAP measure, is vessel revenues less voyage expenses (including bunkers and port charges but excluding pool commission).

Conference Call

On February 11, 2016 at 2:00PM GMT, the Company's management team will host a conference call to discuss its results for the three months ended December 31, 2015.

Participant should dial into the call 10 minutes before the scheduled time using the following number: 0800 279 9489 (UK Toll Free Dial In) or +44 (0) 2075 441 375 (Standard International Dial In). Please inform the operator you wish to listen to the Navig8 Chemical Tankers Inc. conference call.

A telephonic replay of the conference call will be available until February 18, 2016 by dialing +44 (0) 2036 088 021 (Standard International Dial In) and using access code 10080602.

Slides and Webcast

There will also be a live webcast of the conference call and slide presentation, available through the Company's website (www.navig8chemicaltankers.com). Participants on the live webcast should register on the website approximately 10 minutes before the start of the webcast.

About Navig8 Chemical Tankers Inc.

Navig8 Chemical Tankers Inc. was established in 2013 as a joint venture between the Navig8 Group and Oaktree Capital Management to capitalize on significant structural changes in the petrochemical industry and the continuing development of long-haul chemical trades. Its best-in-class newbuilding fleet is comprised exclusively of large, fuel-efficient vessels with modern eco-designs to take greatest advantage of these shifts. The fully delivered fleet will feature a complementary mix of primarily Interline-coated and stainless steel vessels that are capable of servicing the full range of conventional and specialized chemicals cargoes.

The Company has taken delivery of 20 chemical carriers and anticipates delivery of its full 37-vessel fleet by Q3 2017. The Company's fleet is contracted to operate in various chemical tanker pools managed by the Navig8 Group, the world's largest independent pool and commercial management company.

Navig8 Chemical Tankers Inc. is listed on the Norwegian OTC market under the symbol CHEMS.

NAVIG8 CHEMICAL TANKERS INC. AND SUBSIDIARIES OTHER OPERATING DATA (Unaudited)
		Fourth Quarter 2015				Third Quarter 2015
		37k DWT HMD Vessels ("A-Class")		49k DWT Vinashin Vessels ("V-Class")		37k DWT HMD Vessels ("A-Class")		49k DWT Vinashin Vessels ("V-Class")
Vessels on the water at the end of the month		17		2		15		2
Total operating days		1,498		184		1,099		184
Average distributed Gross TCE in $ / day		21,654		21,440		22,958		24,052
Average OPEX in $ / day		5,437		5,473		5,275		5,502

NAVIG8 CHEMICAL TANKERS INC AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
		For the three months ended 31 Dec								For the twelve months ended 31 Dec
All in US$000, unless otherwise stated		2015				2014				2015				2014
Operating revenue
Vessel revenue		$	35,263				-			$	81,654				-
Operating expenses
Vessel expenses			(10,256	)			-				(23,502	)			-
Depreciation and amortization			(6,631	)			-				(15,780	)			-
General and administrative expenses			(2,254	)			(2,016	)			(7,514	)			(4,689	)
Total operating expenses			(19,141	)			(2,016	)			(46,796	)			(4,689	)
Net operating income/(loss)		$	16,122			$	(2,016	)		$	34,858			$	(4,689	)
Financial Items
Interest income			20				49				65				83
Interest expense			(7,014	)			-				(14,252	)			-
Other financial items			(6	)			-				(6	)			-
Net financial items			(7,000	)			49				(14,193	)			83
Net income/(loss)		$	9,122			$	(1,967	)		$	20,665			$	(4,606	)
Earnings per common share:
Basic		$	0.24			$	(0.06	)		$	0.54			$	(0.20	)
Diluted		$	0.24			$	(0.06	)		$	0.54			$	(0.20	)
EBITDA:
Net income/(loss)		$	9,122			$	(1,967	)		$	20,665			$	(4,606	)
Depreciation and amortization			(6,631	)			-				(15,780	)			-
Interest income			20				49				65				83
Interest expense			(7,014	)			-				(14,252	)			-
Other financial items		$	(6	)		$	0			$	(6	)		$	0
EBITDA		$	22,753			$	(2,016	)		$	50,638			$	(4,689	)

NAVIG8 CHEMICAL TANKERS INC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
All in US$000, unless otherwise stated			As at 31 December 2015			As at 31 December 2014
Assets
Current assets
	Cash and cash equivalents		$	18,438		$	40,405
	Trade receivables			15,161			0
	Prepaid expenses and other assets			10,897			25
	Inventories			2,008			0
Total current assets			$	46,504		$	40,430
Non-current assets
	Restricted cash			16,000			-
	Vessels, net			663,891			-
	Vessels, capital lease			41,262			-
	Vessels under construction			147,505			284,826
	Vessel related deposits			-			9,154
Total non-current assets			$	868,658		$	293,980
Total assets			$	915,162		$	334,410
Liabilities and shareholders' equity
Current liabilities
	Obligations under capital lease			36,149			-
	Current portion of loans, net of unamortised debt issuance cost			56,281			-
	Accounts payables and accrued expenses			13,827			984
Total current liabilities			$	106,257		$	984
Non-current liabilities
	Long-term loans, net of unamortised debt issuance cost			389,984			-
Total liabilities			$	496,241		$	984
Shareholders' equity
	Common stock			385			328
	Paid-in capital			403,641			338,868
	Retained earnings / (deficit)			14,895			(5,770	)
Total shareholders' equity				418,921			333,426
Total liabilities and shareholders' equity			$	915,162		$	334,410

NAVIG8 CHEMICAL TANKERS INC AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
			For the twelve months ended 31 December
All in US$000, unless otherwise stated			2015				2014
Operating activities:
Net income/ (loss)			$	20,665			$	(4,606	)
Adjustments to reconcile net income / (loss) to net cash provided by (used in) operating activities:
Depreciation of vessels				15,780				-
Amortisation of debt issuance costs				243				-
Changes in operating assets and liabilities:
	Trade receivables			(15,161	)			-
	Prepaid expenses and other assets			(10,871	)			(25	)
	Inventories			(2,008	)			-
	Accounts payables			342				375
	Accrued expenses			5,057				(533	)
Net cash used in operating activities				14,047				(4,789	)
Investing activities
Changes in restricted cash				(16,000	)			-
Payments for vessels under construction				(490,310	)			(201,219	)
Payments for vessels, capital lease				(1,852	)			-
Payments for vessels				(1,596	)			-
Vessel related deposits				500				(9,154	)
Net cash used in investing activities				(509,258	)			(210,373	)
Financing activities
Proceeds from issuance of common stock				64,830				255,556
Proceeds from loans, net of debt issuance costs				460,746				-
Repayment of loans				(13,785	)			-
Payment of obligation under finance lease				(38,547	)			-
Net cash provided by financing activities				473,244				255,556
Increase in cash and cash equivalents				(21,967	)			40,394
Cash and cash equivalents, beginning of year				40,405				11
Cash and cash equivalents, end of year			$	18,438			$	40,405

Fleet List as of February 9, 2016
		Name		DWT		Yard		Built		Status
		Delivered Vessels
1		Navig8 Victoria		49,000		Hyundai Vinashin		Q1 2015		Delivered
2		Navig8 Violette		49,000		Hyundai Vinashin		Q1 2015		Delivered
3		Navig8 Almandine		37,000		Hyundai Mipo		Q1 2015		Delivered
4		Navig8 Amber		37,000		Hyundai Mipo		Q1 2015		Delivered
5		Navig8 Amethyst		37,000		Hyundai Mipo		Q1 2015		Delivered
6		Navig8 Ametrine		37,000		Hyundai Mipo		Q2 2015		Delivered
7		Navig8 Aventurine		37,000		Hyundai Mipo		Q2 2015		Delivered
8		Navig8 Andesine		37,000		Hyundai Mipo		Q2 2015		Delivered
9		Navig8 Aronaldo		37,000		Hyundai Mipo		Q2 2015		Delivered
10		Navig8 Aquamarine		37,000		Hyundai Mipo		Q2 2015		Delivered
11		Navig8 Amazonite		37,000		Hyundai Mipo		Q2 2015		Delivered
12		Navig8 Amessi		37,000		Hyundai Mipo		Q3 2015		Delivered
13		Navig8 Ammolite		37,000		Hyundai Mipo		Q3 2015		Delivered
14		Navig8 Axinite		37,000		Hyundai Mipo		Q3 2015		Delivered
15		Navig8 Azotic		37,000		Hyundai Mipo		Q3 2015		Delivered
16		Navig8 Adamite		37,000		Hyundai Mipo		Q3 2015		Delivered
17		Navig8 Azurite		37,000		Hyundai Mipo		Q3 2015		Delivered
18		Navig8 Aragonite		37,000		Hyundai Mipo		Q4 2015		Delivered
19		Navig8 Alabaster		37,000		Hyundai Mipo		Q4 2015		Delivered
20		Navig8 Achroite		37,000		Hyundai Mipo		Q12016		Delivered
		Newbuildings
1		Navig8 Turquoise		49,000		STX		Q2 2016		On order
2		Navig8 Topaz		49,000		STX		Q3 2016		On order
3		Navig8 Tourmaline		49,000		STX		Q3 2016		On order
4		Navig8 Tanzanite		49,000		STX		Q3 2016		On order
5		Navig8 Sirius		25,000		Kitanihon		Q2 2016		On order
6		Navig8 Sky		25,000		Kitanihon		Q3 2016		On order
7		Navig8 Spark		25,000		Kitanihon		Q3 2016		On order
8		Navig8 Stellar		25,000		Kitanihon		Q4 2016		On order
9		Navig8 Saiph		25,000		Kitanihon		Q1 2017		On order
10		Navig8 Sceptrum		25,000		Kitanihon		Q2 2017		On order
11		Navig8 Spica		25,000		Fukuoka		Q2 2017		On order
12		Navig8 Sol		25,000		Fukuoka		Q3 2017		On order
13		N8CT N/B		49,000		STX		Q1 2017		On order
14		N8CT N/B		49,000		STX		Q2 2017		On order
15		N8CT N/B		49,000		STX		Q2 2017		On order
16		N8CT N/B		49,000		STX		Q2 2017		On order
17		N8CT N/B		49,000		STX		Q2 2017		On order

Forward-Looking Statements and Distribution

This press release contains forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Navig8 Chemical Tankers Inc. management's examination of historical operating trends. Although the Company believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, Navig8 Chemical Tankers Inc. cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.

Important factors that, in the Company's view, could cause actual results to differ materially from those discussed in this press release include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the tanker market as a result of changes in OPEC's petroleum production levels and world wide oil consumption and storage, changes in the Company's operating expenses including bunker prices, dry-docking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission.

This communication is not for publication or distribution, directly or indirectly, in or into any state or jurisdiction into which doing so would be unlawful. The distribution of this communication may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes, should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdictions. The Company assumes no responsibility in the event there is a violation by any person of such restrictions.