Revenue dropped by $3 mill to $21.1 mill, compared to $24.1 mill for the same period in 2016. Daily average TCE was $38,547 for 1Q17 and $43,476 for 1Q16.
The TCE decrease was mainly attributable to the rates softening during 1Q17, compared to the same period in 2016.
EBITDA decreased by about $3 mill to $14.7 mill, compared to $17.7 mill for 1Q16. The decrease in EBITDA was due to a: (a) $3 mill decrease in revenue; and (b) $0.2 mill increase in other expenses; partially mitigated by a: (i) $0.1 mill decrease in timecharter expenses; (ii) $0.1 mill decrease in management fees; and (iii) $0.1 mill decrease in general and administrative expenses.
The reserve for estimated maintenance and replacement capital expenditures for 1Q17 was $2.5 mill.
Navios Midstream generated an operating surplus for the three month period of $9.5 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.
Net income for 1Q17 was $4.5 mill, compared to $7.5 mill for 1Q16. The decrease in net income was due to a: (a) $3 mill decrease in EBITDA; and (b) $0.1 mill increase in direct vessel expenses; partially mitigated by a $0.1 mill increase in depreciation and amortisation.
Chairman and CEO, Frangou said, “We are pleased with our results for the first quarter of 2017. We reported $14.7 mill of EBITDA and $4.5 mill of net income. We recently announced a distribution of $0.4225 per unit, providing an annual yield of about 14%. Our total unit coverage ratio for the distribution was a healthy 1.1x for the quarter.
“Investor sentiment in the MLP sector has materially improved since early 2016. However, we have been experiencing uncertainty regarding the potential oversupply of VLCCs. We are being patient and cautiously reviewing market opportunities. We believe that our patience and prudence will be rewarded, ” she said.
Navios Midstream has agreed long-term charter-out agreements for its vessels, with a remaining average term of 4.1 years, which are expected to provide a stable base of revenue and distributable cash flow.
The company has currently contracted out 100% of its available days for 2017 and 2018 expecting to generate revenues, including the backstop commitment provided by Navios Maritime Acquisition Corp of around $86.7 mill and $86.6 mill for 2017 and 2018, respectively.
The average expected daily charter-out rate for the fleet is $39,580 and $39,559 for 2017 and 2018, respectively.
As a result of the continuous offering programme in place, Navios Midstream issued 315,846 common units in 2017 and received net proceeds of $3.8 mill. In connection with the issuing of common units, the company offered 6,446 general partnership units to its general partner in order for it to maintain its 2% general partner interest. The net proceeds were $0.1 mill.