The Navigator Company Applies 20 Percent Energy, Logistics and Commodities Surcharge on Tissue Deliveries

Since the beginning of the Russian-Ukrainian conflict, which has severely aggravated already unstable and unpredictable macroeconomic dynamics, The Navigator Company has experienced a steeper increase in energy related costs.

With international sanctions on Russia and high European dependency on their gas supply, the current geopolitical situation has led to a very rapid increase in energy prices, with expectations of further increases. Apart from the direct impact of the energy prices on Navigator's cost structure, the Company is also severely affected by the indirect energy impact in several commodities and logistic costs.

Under these circumstances of extreme uncertainty, with Navigator being exposed direct and indirectly to energy price volatility, significantly affecting its profitability, the company is forced to implement an energy, logistics and commodities surcharge on its tissue products, amounting 20 percent of the sales price, to offset the significant raising of its input costs.

The Navigator Company believes that this exceptional measure is imperative to support its business model's long-term sustainability and the overall supply chain. Navigator will monitor the evolution of energy, logistics and commodities prices closely, adjusting the surcharge when the situation so requires.

Navigator understands the impact of this unprecedented situation throughout the supply chain and will continue to work closely with all clients to strengthen its common business. The Company expressed its sincere hope that this unfortunate situation will end soon.

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