Navig8 Product Tankers Inc. Reports Results for the Three Months Ended March 31, 2016

LONDON, UNITED KINGDOM--(Marketwired - May 10, 2016) - 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, 2016.

Highlights

• Reported revenue of $22.9 million and net income of $5.8 million, or $0.15 per share, for the three months ended March 31, 2016.
• Entered into a $76.9 million sale and leaseback agreement with CMB Financial Leasing Co. Ltd ("CMBFL") for two 74,000 DWT LR1 product tanker newbuildings under construction at SPP Shipbuilding Co., Ltd ("SPP").
• Increased pre-existing secured commercial loan facility to $128.5 million in January 2016 to provide incremental financing for two additional 74,000 DWT LR1 product tankers under construction at STX Offshore & Shipbuilding Co., Ltd. ("STX").
• Accepted delivery of four 74,000 DWT LR1 newbuildings from STX as well as four 110,000 DWT LR2 newbuildings from Sungdong Shipbuilding & Marine Engineering Co. ("Sungdong"), increasing delivered newbuilding fleet to 10 vessels as of March 31, 2016.
• Announced $130.3 million senior secured credit facility to provide post-delivery financing for four 74,000 DWT LR1 product tankers under construction at STX in April 2016.

"We are pleased to report increasing revenues as we accept additional deliveries from our newbuilding program. Greater than a third of our fleet has now been delivered, and we are beginning to generate substantial earnings," said Nicolas Busch, Chief Executive Officer of Navig8 Product Tankers Inc."

"Product tanker rates were volatile during the last three months after easing slightly due to delayed seasonal refinery maintenance. OECD product inventories are exceptionally high, which creates an interesting dynamic. While product tanker demand may be negatively impacted as drawdowns in inventories deter purchases, discharge terminals are capacity constrained, resulting in delays, congestion and a reduced supply of tonnage. Overall, the fundamentals in the LR product tanker market continue to strengthen with the growth in products exported from the Middle East and the U.S. and the resulting increase in long haul trades."

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. One of the three vessels was delivered to the buyer in the second quarter of 2015 and the other two vessels were delivered to the buyer in the third quarter of 2015, realizing a total net gain on sale of $24.1 million.

As of the date of this release 10 of these vessels have been delivered and are in operation. The fleet is expected to be fully delivered by December 2016. Upon their respective deliveries, the Company's vessels will be deployed in the LR8 and Alpha8 commercial pools, both managed by Navig8 Group. The Company's newbuilding fleet comprises:

Seven 110,000 DWT LR2 product tankers (the "Sungdong vessels") built at Sungdong. The Company took delivery of the first of these vessels in November 2015 and four further vessels during the three months ended March 31, 2016. The delivered vessels operate in Navig8 Group's Alpha8 pool. The Company expects the remaining two vessels to be delivered between May and July 2016.

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. The Company's eight CSSC vessels will operate in Navig8 Group's Alpha8 pool. The Company expects to take delivery of these vessels between May and December 2016.

Eight 74,000 DWT LR1 product tankers (the "STX vessels") built at STX. The Company took delivery of the first of these vessels in November 2015 and four further vessels during the three months ended March 31, 2016. The delivered vessels operate in Navig8 Group's LR8 pool. The Company expects the remaining three vessels to be delivered between April and May 2016.

Four 74,000 DWT LR1 product tankers (the "SPP vessels") built at SPP. The Company's four SPP vessels will operate in Navig8 Group's LR8 pool. The Company expects to take delivery of these vessels between July and December 2016.

Additionally, the Company has three ECO LR2 vessels on time charter operating in Navig8 Group's Alpha8 Pool. These time charters expire between June and October 2016.

Financing Update

On 12 March 2015, the Company entered into a Pool Management Revenue Share Rights Agreement with Navig8 Asia Pte Ltd. and Navig8 Limited. Pursuant to this agreement, the Company places each of its 27 newbuilding vessels into Navig8 Group's Alpha8 and LR8 Pools upon delivery. The Company also receives a 30% share of the net revenues derived from the commercial management of the two pools. In consideration for the Pool Management Revenue Share Rights Agreement, 336,963 shares of common stock of the Company, amounting to $4.1 million, were issued to Navig8 Ltd. at an issuance price of $12.25 per share.

On 25 June 2015, the Company entered into sale and leaseback agreements with CSSC (Hong Kong) Shipping Company Limited ("CSSC") for all of the CSSC vessels. The net proceeds from the transaction (after a 20% sellers' credit) are expected to amount to $304 million. Under the agreements, the CSSC vessels will be purchased by CSSC from the Company upon their deliveries from CSSC Offshore. The Company has entered into 10-year bareboat charters for the vessels, commencing on delivery. The Company has a purchase obligation to re-acquire the vessels at the end of the charter period and purchase options to re-acquire during the charter period, with the first option exercisable on the fourth anniversary of each vessel delivery. Under the sale and leaseback agreements, CSCC is also providing financing for the pre-delivery instalments for the vessels. These sale and leaseback agreements will be treated as financing transactions. As of March 31, 2016, $23.8 million has been drawn down on pre-delivery instalments.

On July 10, 2015, the Company entered into sale and leaseback agreements with Ocean Yield ASA ("Ocean Yield") for four Sungdong vessels. The net proceeds from the transaction (after a 5% sellers' credit) are expected to amount to $188.1 million. Under the agreements, the four vessels will be purchased by Ocean Yield from the Company on their respective deliveries from Sungdong. The Company has entered into 13-year bareboat charters for the vessels commencing on delivery, and has purchase options to re-acquire the vessels during the charter period, with the first of such option exercisable on the seventh anniversary of each vessel delivery. Two of these vessels have been delivered to Ocean Yield thus far under the terms of the Sale MOA and then delivered back to the Company under bareboat charter. The remaining two vessels are expected to be delivered by July 2016. Under the sale and leaseback agreements, Ocean Yield is also providing financing for the pre-delivery instalments for the vessels. These sale and leaseback agreements will be treated as financing transactions. As of March 31, 2016, $32.2 million has been drawn down on the pre-delivery financing facility with Ocean Yield.

In November 2015, the Company announced the closing of a $64.3 million secured commercial loan facility with Credit Agricole Corporate and Investment Bank ("CACIB") for the first two of the Company's eight STX vessels. The debt financing covers approximately 65% of the contract price of each of these two vessels, which were delivered in November 2015 and January 2016. In January 2016, the Company announced that it had entered into an amended secured commercial loan facility for $128.5 million with CACIB and BNP Paribas to provide additional financing for the third and fourth newbuilding vessels at STX, which delivered in January and February 2016

On March 17, 2016, the Company entered into sale and leaseback agreements with CMBFL for two SPP vessels with contractual delivery dates in May and June 2016. The net proceeds from the transaction (after a 20% sellers' credit) are expected to amount to $76.9 million. Under the agreements, the two vessels will be delivered to CMBFL on their respective deliveries from SPP. The Company has entered into 7-year bareboat charters for the two vessels, commencing upon their respective deliveries, and has purchase options to re-acquire the vessels during the charter period, with the first such option exercisable on the third anniversary of the delivery date of each vessel. Under the sale and leaseback agreements, CMBFL also finances the pre-delivery instalments for the vessels. These sale and leaseback agreements will be treated as financing transactions. As of March 31, 2016, $21.6 million has been drawn down in respect of pre-delivery instalments.

On April 25, 2016, the Company announced that it had entered into a $130.3 million senior secured credit facility agreement with Citibank N.A., London Branch and Caixabank, S.A. (the "Credit Facility") to provide post-delivery financing for four of the Company's 74,000 DWT LR1 product tankers constructed or under construction at STX Offshore & Shipbuilding Co. Ltd, including the Navig8 Experience, which was delivered to the Company in March 2016. The Credit Facility has two separate tranches -- a $26.1 million commercial tranche (the "Commercial Tranche") and a $104.2 tranche insured by Korean Trade Insurance Corporation (the "K-Sure Tranche"). Each drawdown from the Credit Facility shall be comprised of 20% from the Commercial Tranche and 80% from the K-Sure Tranche. The Credit Facility provides financing of approximately 65% of the contract price of these four vessels.

Results for the three months ended March 31, 2016

For the three months ended March 31, 2016, the Company reported net income of $5.8 million, or $0.15 per share, an increase of $3.4 million from the three months ended March 31, 2015.

Revenue for the three months ended March 31, 2016 was $22.9 million, compared to $9.9 million for the three months ended March 31, 2015. The total number of vessel operating days for the three months ended March 31, 2016 was 885, compared to 364 for the three months ended December 31, 2015 and 210 for the three months ended March 31, 2015.

The average daily time charter equivalent ("TCE")⁽¹⁾ earned by our three 115,000DWT LR2 chartered-in tankers in the three months ended March 31, 2016, was $28,515 per day. The gross average daily TCE for our owned vessels were $22,949 and $29,185 for our 74,000 DWT LR1 and 110,000 DWT LR2 vessels, respectively. These rates were achieved over an aggregate of 612 operating days.

Vessel operating expenses across our owned and chartered in fleet were $9.6 million for the three months ended March 31, 2016, an increase of $3.6 million from the three months ended March 31, 2015 when our fleet was limited to three chartered-in vessels. Average daily operating expenses were approximately $5,800 for our owned vessels.

Depreciation expense for the three months ended March 31, 2016 was $3.2 million, an increase of $3.2 million compared to the three months ended March 31, 2015. This is due to the Company beginning to depreciate vessels in its newbuilding fleet as they are delivered commencing in November 2015.

General and administrative expenses for the three months ended March 31, 2016 were $1.8 million, an increase of $0.3 million from the three months ended March 31, 2015. This increase is related to the growing size of the company's operations and hence various management and administrative fees.

Interest expense for the three months ended March 31, 2016 was $2.5 million, as compared to no interest expense in the three months ended March 31, 2015, 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).

About Navig8 Product Tankers Inc.

Navig8 Product Tankers was established in 2013 as a joint venture between the Navig8 Group and DVB Bank to capitalize on anticipated strong supply/demand fundamentals and the accelerating growth of long-haul clean and dirty oil product cargo movements, driven by increasing geographic dislocations between producers and consumers.

Navig8 Product Tankers maintains an orderbook of long-range (LR), eco-design product tankers, comprising 15 LR2 and 12 LR1 vessels. The company's fleet is contracted to operate in various product tanker pools managed by the Navig8 Group, the world's largest independent pool and commercial management company.

Navig8 Product Tankers is listed on the Norwegian OTC market under the symbol EIGHT.

Visit our website at www.navig8producttankers.com.

NAVIG8 PRODUCT TANKERS INC AND SUBSIDIARIES OTHER OPERATING DATA (Unaudited)
CHARTERED-IN VESSELS		First Quarter 2016		Fourth Quarter 2015
		115k DWT LR2 Vessels
Number of chartered-in vessels on the water at the end of the quarter		3		3
Total operating days		273		276
Average Earnings in $ / day		28,515		26,104
Average Hire in $ / day		21,834		21,857
OWNED VESSELS		First Quarter 2016		Fourth Quarter 2015
		74k DWT LR1 Vessels
Number of owned vessels on the water at the end of the quarter		5		1
Total operating days		312		50
Average distributed Gross TCE in $ / day		22,949		23,235
Average OPEX in $ / day		5,711		5,268
		110k DWT LR2 Vessels
Number of owned vessels on the water at the end of the quarter		5		1
Total operating days		300		38
Average distributed Gross TCE in $ / day		29,185		27,364
Average OPEX in $ / day		5,836		5,351

NAVIG8 PRODUCT TANKERS INC AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
		For the three months ended 31 Mar
All in US$000, unless otherwise stated			2016				2015
Operating revenue
Vessel revenue		$	22,942				9,888
Total Operating Revenue			22,942				9,888
Operating expenses
Vessel expenses			(9,603	)			(6,006	)
Depreciation			(3,180	)			-
General and administrative expenses			(1,830	)			(1,517	)
Total operating expenses			(14,613	)			(7,523	)
Net operating gain / (loss)		$	8,329			$	2.,365
Financial Items
Interest income			5				67
Interest expense and finance costs			(2,527	)			-
Other financial items			8				(1	)
Net financial items			(2,514	)			66
Total Income (loss) before tax			5,815				2,431
Income Tax			(16	)			-
Net income / (loss)		$	5,799			$	2,431
Earnings per common share:
Basic		$	0.15			$	0.06
Diluted		$	0.15			$	0.06

NAVIG8 PRODUCT TANKERS INC AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
All in US$000, unless otherwise stated			As at 31 March 2016			As at 31 December 2015
Assets
Current assets
	Cash and cash equivalents		$	27,177		$	4,480
	Restricted cash			750			435
	Trade receivables			12,841			6,474
	Prepaid expenses and other assets			10,303			10,423
	Inventories			1,130			310
Total current assets			$	52,201		$	22,122
Non-current assets
	Restricted cash			5,000			2,000
	Vessels, net			503,560			100,886
	Vessels under construction			295,094			451,504
	Other Assets			9,007			5,004
Total non-current assets			$	812,661		$	559,394
Total assets			$	864,862		$	581,516
Liabilities and shareholders' equity
Current liabilities
	Current portion of loans			100,158			87,754
	Accounts payables and accrued expenses			11,742			7,855
Total current liabilities			$	111,900		$	95,609
Non-current liabilities
	Long term loans, net of unamortised debt issuance cost			306,375			45,400
Total non-current liabilities			$	306,375		$	306,375
Total liabilities			$	418,275		$	141,009
Shareholders' equity
	Common stock ($0.01 par value per share; 39,775,741 shares issued and outstanding as of March 31, 2016)			398			398
	Paid-in capital			415,385			415,104
	Retained earnings / (deficit)			30,804			25,005
Total shareholders' equity				446,394			440,507
Total liabilities and shareholders' equity			$	864,862		$	581,516

NAVIG8 PRODUCT TANKERS INC AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
			For the three months ended 31 March
All in US$000, unless otherwise stated			2016				2015
Operating activities:
Net income / (loss)			$	5,799			$	2,431
Adjustments to reconcile net income / (loss) to net cash provided by (used in) operating activities:
	Shares issued for services			281				64
	Gain on sale of vessel			-				-
	Depreciation			3,180				-
	Amortisation of debt issuance costs and deferred financing charges			324				-
	Amortisation			206				-
	Changes in operating assets and liabilities:
	Trade receivables			(6,367	)			(872	)
	Prepaid expenses and other assets			(2,289	)			(250	)
	Inventories			(820	)			-
	Accounts payables and accrued expenses			1,662				646
Net cash used in operating activities				1,977				2,019
Investing activities
Changes in restricted cash				(3,315	)			-
Payments for vessels under construction				(244,300	)			(58,084	)
Net cash used in investing activities				(247,615	)			(58,084	)
Financing activities
Net proceeds from issuance of shares				-				-
Proceeds from loans, net of debt issuance cost				271,478				-
Repayment of loans				(3,143	)			-
Net cash provided by financing activities				268,335				-
Increase (decrease) in cash and cash equivalents				22,697				(56,065	)
Cash and cash equivalents, beginning of period				4,480				114,147
Cash and cash equivalents, end of period			$	27,177			$	58,082

Fleet List as of May 10, 2016
		Name		DWT		Yard		Built		Status
		Delivered Vessels
1		Captain John		115,000		HHI		Q2 2014		Chartered-in
2		Captain Paris		115,000		HHI		Q2 2014		Chartered-in
3		Captain Spiro		115,000		HHI		Q2 2014		Chartered-in
4		Navig8 Solidarity		110,000		Sungdong		Q4 2015		Delivered
5		Navig8 Stability		110,000		Sungdong		Q1 2016		Delivered
6		Navig8 Solace		110,000		Sungdong		Q1 2016		Delivered
7		Navig8 Symphony		110,000		Sungdong		Q1 2016		Delivered
8		Navig8 Sanctity		110,000		Sungdong		Q1 2016		Delivered
9		Navig8 Excel		74,000		STX		Q4 2015		Delivered
10		Navig8 Excelsior		74,000		STX		Q1 2016		Delivered
11		Navig8 Expedite		74,000		STX		Q1 2016		Delivered
12		Navig8 Exceed		74,000		STX		Q1 2016		Delivered
13		Navig8 Experience		74,000		STX		Q1 2016		Delivered
		Newbuildings
1		Navig8 Steadfast		110,000		Sungdong		Q2 2016		On order
2		Navig8 Supreme		110,000		Sungdong		Q3 2016		On order
3		Navig8 Grace		113,000		GSI		Q2 2016		On order
4		Navig8 Gallantry		113,000		GSI		Q2 2016		On order
5		Navig8 Guard		113,000		GSI		Q2 2016		On order
6		Navig8 Guide		113,000		GSI		Q3 2016		On order
7		Navig8 Goal		113,000		GSI		Q3 2016		On order
8		Navig8 Gauntlet		113,000		GSI		Q4 2016		On order
9		Navig8 Gladiator		113,000		GSI		Q4 2016		On order
10		Navig8 Gratitude		113,000		GSI		Q4 2016		On order
11		Navig8 Executive		74,000		STX		Q2 2016		On order
12		Navig8 Express		74,000		STX		Q2 2016		On order
13		Navig8 Excellence		74,000		STX		Q2 2016		On order
14		Navig8 Pride		74,000		SPP		Q3 2016		On order
15		Navig8 Providence		74,000		SPP		Q3 2016		On order
16		Navig8 Precision		74,000		SPP		Q4 2016		On order
17		Navig8 Prestige		74,000		SPP		Q4 2016		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 Product Tankers 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 Product Tankers 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 worldwide 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 on the Norwegian OTC trading support system.

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.