Navios Maritime acquisition sees improved tanker rates

Feb 11 2019


Navios Maritime Acquisition Corp has reported an increase in revenue for the three month period ended December 31, 2018 of $8.4 mill, or 16.7%, to $58.7 mill, compared to $50.3 mill for the same period in 2017.

This increase was mainly attributable to an: (i) increase in revenue by $5 mill, due to the acquisition and resulting consolidation of Navios Midstream on 13th December, 2018; and (ii) increase in revenue due to certain spot voyages fixed at favourable market rates during 4Q18; partially mitigated by a decrease in revenue of $1.7 mill, mainly due to the sale of the ‘Nave Galactic’ to Navios Midstream in March, 2018.

The TCE rate increased to $15,483 for 4Q18, from $15,299 for 4Q17.

Net loss for 4Q18 was $16.4 mill, compared to $12 mill for the same period of 2017. This was due to: (a) $1.5 mill decrease in EBITDA; (b) $1.1 mill increase in interest expense and finance cost, net of deferred finance cost; (c) $1.1 mill increase in direct vessel expenses; (d) $0.4 mill decrease in interest income; and (e) $0.3 mill increase in depreciation and amortisation, due to the acquisition of Navios Midstream.

EBITDA for the period decreased by $1.5 mill to $18.5 mill, compared to $19.9 mill for 4Q17. This was mainly due to: (a) $3.7 mill increase in timecharter and voyage expenses (b) $2.7 mill increase in general and administrative expenses mainly due to the acquisition of Navios Midstream, of $2.2 mill; (c) $1.6 mill increase in other expense; (d) $1.4 mill decrease in equity /(loss) in net earnings of affiliated companies; (e) $0.4 mill increase in management fees due to the acquisition and to the amendment of the fees under the management agreement; and (f) $0.1 mill decrease in other income; partially mitigated by an $8.4 mill increase in revenue.

As for the full year, revenue decreased by $39.3 mill, or 17.3%, to $187.9 mill, compared to $227.3 mill for 2017. The decrease was mainly attributable to: (a) decrease in the market rates during 2018, compared to; and (b) decrease in revenue of $8.2 mill, mainly due to the sale of the ‘Nave Galactic’; partially mitigated by the increase in revenue of $5 mill, due to the acquisition and resulting consolidation of Navios Midstream.

The TCE rate decreased from $17,186 for 2017, to $13,855 for 2018.

Net loss for the year was $86.4 mill, compared to $78.9 mill for 2017. EBITDA for 2018 decreased by $1 mill to $47.6 mill.

Angeliki Frangou, chairman and CEO, stated, “For the full year of 2018, Navios Acquisition reported revenue of $187.9 mill and adjusted EBITDA of $56.8 mill. For the fourth quarter of 2018, we reported revenue of $58.7 mill and adjusted EBITDA of $20.9 mill. We also declared a quarterly dividend of $0.30 per share for the fourth quarter, representing an annualised yield of 21% per share.

“Tanker rates substantially improved during the fourth quarter of 2018, with the Baltic TD3C VLCC spot rate increasing by more than double to about $45,000 per day, compared to the fourth quarter of 2017.

“Although VLCC rates have since retreated, rates for January, 2019 were still almost three times higher than rates for January, 2018. In light of the rate improvement, the acquisition of Navios Midstream was timely, as well as accretive to our net asset value and cash flow,“ she concluded.

 



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