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Navios Maritime Holdings reports latest financial results

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Dry Bulk,


Yesterday, Greece-based global seaborne shipping and logistics company Navios Maritime Holdings Inc. (Navios Holdings), reported its financial results for the second quarter and six months ended 30 June 2018.

Chairman and CEO of Navios Maritime Holdings, stated: "I am pleased with the results of 2Q18 and 1H18, for which we reported Adjusted EBITDA of US$43.2 million and US$71.3 million, respectively. Our Adjusted EBITDA was 38% and 46% higher than the second quarter of 2017 and the first half of 2017 respectively."

Angeliki Frangou continued: "Navios controls 70 dry bulk vessels with an average age of 7.8 years. Over the past 18 months, we renewed and expanded our fleet, decreasing fleet age by 15% and increasing fleet size by 9%. Much of this we accomplished using minimal capital by increasing our charter-in fleet, often with purchase options. We are now experiencing the positive effects of healthier charter markets on our business results."

Recent developments

Renewal and Expansion

In August 2018, Navios Holdings exercised the option to acquire Navios Primavera, a 2007-built, 53 464 DWT chartered-in vessel for an estimated purchase price of approximately US$10.5 million to be determined on the actual delivery date of the vessel, which is expected within 4Q18.

In August 2018, Navios Holdings agreed to charter-in one kamsarmax vessel under a ten-year bareboat charter with a purchase option. This vessel is expected to be delivered in the second quarter of 2020. The transaction is subject to completion of definitive documentation.

Sale of vessels

In July 2018, Navios Holdings agreed to sell the Navios Mars, a 2016-built capesize vessel of 181 259 DWT, and the Navios Sphera, a 2016-built Panamax vessel of 84 872 DWT, to its affiliate Navios Maritime Partners L.P. (Navios Partners) for a sale price of US$79.0 million.

Part of the sale proceeds are to be used for the full prepayment of the US$31.8 million outstanding bank debt of the two vessels, while the remaining US$47.2 million will be cash on our balance sheet. The vessels are expected to be delivered to Navios Partners within the third quarter of 2018.

In July 2018, Navios Holdings completed the sale to an unrelated party of the Navios Achilles, a 2001-built ultra-handymax vessel of 52 063 DWT for a total net sale price of US$8.1 million, paid in cash.

Following fleet activities during the period 2017 - 2018 YTD, the average age of Navios Holdings’ fleet has decreased by 15%, basis fully delivered fleet, and the capacity of the fleet has increased by 9%.

Earnings Highlights

Revenue from dry bulk vessel operations for the three months ended 30 June 2018 was US$72.0 million, as compared to US$59.2 million for the same period during 2017. The increase in dry bulk revenue was mainly attributable to the increase in the time charter equivalent (TCE) per day by 28.7% to US$11 791 per day in the second quarter of 2018, as compared to US$9163 per day in the same period of 2017.

Revenue from the logistics business was US$60.1 million for the three months ended 30 June 2018, as compared to US$59.4 million for the same period in 2017. The increase was mainly attributable to a US$8.2 million increase in revenue from the port terminal business mainly due to the commencement of operations at the new iron ore terminal and a US$0.5 million increase in sales of products mainly due to an increase in the Paraguayan liquid port's price of products sold. The overall increase was partially mitigated by:

  1.  a US$4.0 million decrease in revenue from the barge business mainly related to liquid cargo transportation.
  2. (ia US$4.0 million decrease in revenue from the cabotage business mainly due to a decrease in operating days.

 Navios Holdings had a reported net loss of US$25.3 million for the three months ended 30 June 2018, as compared to US$37.3 million for the same period in 2017. Adjusted Net Loss of Navios Holdings for the three months ended 30 June 2018 was US$18.7 million, as compared to US$27.4 million for the same period in 2017.

The US$8.7 million decrease in Adjusted Net Loss was mainly due to (i) an increase in Adjusted EBITDA by US$11.9 million; (ii) a decrease in depreciation and amortisation by US$1.6 million; (iii) a decrease in amortisation for deferred drydock and special survey costs of US$0.6 million; and (iv) an increase in income tax benefit of US$0.4 million. This overall decrease of US$14.5 million was partially mitigated by (i) an increase in interest expense and finance cost, net by US$5.7 million; and (ii) an increase in share-based compensation expense of US$0.1 million.

Net Income of Navios Logistics was US$4.0 million for the three-month period ended 30 June 2018, as compared to US$4.4 million for the same period in 2017.

Adjusted EBITDA of Navios Holdings for the three months ended 30 June 2018 increased by US$11.9 million to US$43.2 million, as compared to US$31.3 million for the same period in 2017.

EBITDA of Navios Logistics was US$22.4 million for the three-month period ended 30 June 2018, as compared to US$19.3 million for the same period in 2017.

Revenue from dry bulk vessel operations for the six months ended 30 June 2018 was US$136.6 million, as compared to US$110.8 million for the same period in 2017. The increase in dry bulk revenue was mainly attributable to the increase in TCE per day by 34% to US$11 412/day in the first half of 2018, as compared to US$8519 per day in the same period in 2017.

Revenue from the logistics business was US$112.3 million for the six months ended 30 June 2018, as compared to US$103.2 million for the same period in 2017. The increase was mainly attributable to a $17 million increase in revenue from the port terminal business mainly due to the commencement of operations at the new iron ore terminal and a $0.9 million increase in sales of products mainly due to an increase in the price of products sold in the Paraguayan liquid port. The overall increase was partially mitigated by a US$6.1 million decrease in revenue from the barge business mainly related to liquid cargo transportation and a US$2.7 million decrease in revenue from the cabotage business mainly due to fewer operating days and lower rates.

Net Loss of Navios Holdings was US$66.1 million for six months ended 30 June 2018, as compared to US$86 million for the same period in 2017.

 

To read the full report: https://www.navios.com/Newsroom/default.asp

Read the article online at: https://www.drybulkmagazine.com/dry-bulk/24082018/navios-maritime-holdings-reports-latest-financial-results/

 

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