Frangou’s tanker vehicle shows increased returns

Feb 12 2016


Navios Maritime Acquisition Corp announced that net income for the fourth quarter of last year was $20.1 mill and $89.7 mill for the full year, compared to $27 mill and $13 mill for the respective periods of 2014.

EBITDA increased by 16.1% in 4Q15 to $53 mill, compared with $45.7 mill in 4Q14 and showed a 39.2% increase to $217.4 mill from $ 156.2 mill for the full year. Profit sharing came to $5.9 mill and $32.1 mill for the periods, respectively.

Revenue for 4Q15 increased by $4.3 mill or 6% to $76.7 mill, compared to $72.4 mill for the same period in 2014. The increase was mainly attributable to: (i) the acquisition of six vessels since October, 2014; and (ii) the profit sharing increase by $1.5 mill to $5.9 mill in the three month period, compared to $4.4 mill for 4Q14.

The 4Q15 increase was partially offset by $15 mill due to the sale of four VLCCs in November, 2014 and two VLCCs in June, 2015. The daily TCE rate increased to $22,291 for 4Q15, from $21,124 during the quarter.

Adjusted net income for 4Q15, increased by $9.8 mill to $20.5 mill, compared to a $10.7 mill 4Q14. The increase was due to: (i) an rise of $7.4 mill in adjusted EBITDA; (ii) a $2 mill decrease in depreciation and amortisation, due to the sale of the six VLCCs to Navios Maritime Midstream Partners and; (iii) a $0.5 mill net decrease in interest expense and finance cost.

Revenue for the full year increased by $48.5 mill or 18.3% to $313.4 mill, compared to $264.9 mill for 2014. The increase was mainly attributable to: (i) the deliveries of 13 vessels from January, 2014 until December 31, 2015; and (ii) a profit sharing increase by $25.4 mill to $32.1 mill recognised in 2015, compared to $6.7 mill for 2014.

The rise was partially offset by $73.7 mill, due to the sale of the five VLCCs in 2014 and two VLCCs in June, 2015. The daily TCE rate increased to $22,477 from $19,633 for 2014.

Adjusted net income for 2015 increased by $72.2 mill to $87.1 mill, compared to $14.9 mill for 2014.

The increase was due to: (a) the increase of $61.2 mill in adjusted EBITDA; (b) a $10.1 mill decrease in depreciation and amortisation; (c) a $0.4 mill decrease in direct vessel expenses; and (d) a $1 mill increase in interest income; partially mitigated by a $0.5 mill increase in net interest expense and finance cost.

Angeliki Frangou, chairman and CEO, said, “Navios Acquisition reported net income of $89.7 mill or $0.57 per share for the full year of 2015. We declared a dividend of $0.05 per share for the quarter, resulting in a dividend yield of about 10.5%. We also repurchased about 2.7 mill shares of common stock under our share repurchase programme, providing an additional return of about 1.8%.

“All our vessels are on-the-water and are generating cash flow. We have no material debt maturity before 2021 or any committed growth capex. In addition, while our leverage increased slightly in the fourth quarter of 2015, as a result of taking delivery of two vessels, we expect net debt to decline in 2016 through the cash flow we expect to generate.“

In December, 2015, Navios Acquisition entered into a term loan facility of up to $44 mill with BNP Paribas for the post-delivery financing of an LR1 and an MR2.

The loan matures in the fourth quarter of 2021. The credit facility bears interest at LIBOR plus 230 bps per annum and has an amortisation profile of about 11 years.

Navios Acquisition currently owns 38 vessels of which eight are VLCCs, 26 are product tankers and four are chemical tankers, all of which are currently in service.

As of 10th February, 2016, Navios Acquisition had contracted 84.2% and 44.3% of its available days on a charter-out basis for 2016 and 2017, respectively, expecting to generate revenues of around to $194.6 mill and $97.8 mill, respectively. The average contractual daily charter-out rate for the fleet is forecast at $19,238 and $22,475 for 2016 and 2017, respectively.  



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