Investors in LPG carrier owner Navigator Holdings are essentially getting a stake in the company’s joint venture Morgan’s Point ethylene export terminal for nothing, analysts say.

Fearnley Securities calculates the US-listed company’s $1.1bn market cap is covered by vessel net asset value (NAV).

“In other words, Navigator’s equity is covered by steel NAV alone and investors are basically paying for ships whilst getting the ethylene export terminal business for free,” analysts Oystein Vaagen and Fredrik Dybwad said.