Daily TCE was $40,391 for 4Q17, compared with $40,719 for 4Q16, while net income for the period was $4.3 mill, compared to $6 mill for 4Q16.
The decrease in net income of about $1.8 mill was due to: (a) $1.4 mill increase in interest expenses and finance cost mainly due to a $1.3 mill write-off of deferred finance cost; (b) $0.4 mill increase in direct vessel expenses; and (c) $0.1 mill decrease in EBITDA; partially mitigated by a $0.1 mill decrease in depreciation and amortisation.
EBITDA also fell by $0.1 mill to $16.3 mill for 4Q17, compared to $16.4 mill for the same period in 2016. This decrease was due to: (a) $0.2 mill increase in general and administrative expenses; (b) $0.1 mill decrease in revenue; and (c) $0.1 mill increase in timecharter expenses; partially mitigated by a $0.3 mill decrease in other expenses.
The reserve for estimated maintenance and replacement capital expenditures for 4Q17 and 2016 was $2.5 mill and $3.6 mill, respectively.
Navios Midstream generated an operating surplus of $10.9 mill. This is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership’s ability to make quarterly cash distributions, Navios explained.
Revenue for the full year fell by $8.8 mill to $83.1 mill, compared to $91.8 mill for 2016, mainly due to the decrease of profit share by $4.3 mill as a result of prevailing market conditions and certain unscheduled off-hires among which was the prolonged drydock of a vessel.
Daily TCE averaged $39,401 for 2017 against $42,625 for the previous year.
Net income for the year was $14.6 mill, compared to $24.9 mill for 2016. The fall of about $10.3 mill was due to: (a) an $8.2 mill decrease in EBITDA; (b) a $1.6 mill increase in interest expenses and finance cost mainly due to a $1.3 mill write-off of deferred finance cost; (c) a $0.8 mill increase in direct vessel expenses; and (d) a $0.1 mill decrease in interest income; partially offset by a $0.5 mill decrease in depreciation and amortisation.
EBITDA decreased by $8.2 mill to $57.9 mill during the period, compared to $66.2 mill for 2016. This drop in EBITDA was mainly due to an $8.8 mill decrease in revenue. The decrease was partially mitigated by a: (a) $0.3 mill decrease in timecharter expenses; (b) $0.1 mill decrease in general and administrative expenses; (c) $0.1 mill decrease in management fees; and (d) $0.1 mill decrease in other expenses.
Angeliki Frangou, Navios Midstream chairman and CEO, commented, “We are pleased to report results for the fourth quarter and full year of 2017. For the fourth quarter of 2017, we reported $16.3 mill of EBITDA and $4.3 mill of net income. For the full year of 2017, we reported $57.9 mill of EBITDA and $14.6 mill of net income. We also announced a distribution of $0.4225 per unit, representing an annualised yield of about 17%.”
In January, 2018, Navios Midstream received $11.5 mill of backstop payment, reflecting the outstanding balance as of 30th September, 2017, from a total estimated backstop commitment of $16.4 mill incurred last year.
On a pro forma basis, adjusting for the receipt of the backstop payment, cash and cash equivalents and restricted cash as of 31st December, 2017, increased from $37.1 mill to $48.6 mill.
The company has entered into long-term charter-out agreements for its vessels, with a remaining average term of 3.3 years, which are expected to provide a stable base of revenue and distributable cash flow. It has currently contracted out 100% of its available days for 2018 and 40.8% for 2019 expecting to generate revenues, including the backstop commitment provided by Navios Maritime Acquisition Corp, of about $86.6 mill and $40.8 mill for 2018 and 2019, respectively.
The average expected daily charter-out rate for the fleet is $39,559 and $45,613 for 2018 and 2019, respectively.