The decrease was mainly attributable to a: (i) decrease in the market rates during 3Q17, compared to the same period in 2016; and (ii) decrease in revenue by $3.1 mill, due to the sale of two chemical tankers in 4Q16.
The TCE rate decreased to $16,486 for 3Q17, from $19,159 for 3Q16.
Net loss for the period decreased by $16.9 mill to $8.1 mill, compared to $8.8 mill net income for the same period of 2016. This decrease was due to a: (a) $18.7 mill decrease in adjusted EBITDA; and (b) $0.3 mill increase in direct vessel expenses; partially mitigated by a: (i) $1.7 mill increase in interest income; (ii) $0.3 mill share based compensation expense incurred in 3Q16; and (iii) $0.1 mill decrease in interest expense and finance cost.
Adjusted EBITDA for 3Q17 decreased by around $18.7 mill to $23.3 mill, compared to $42 mill for the same period of 2016. This decrease was mainly due to a: (a) $14 mill decrease in revenue, as described above; (b) $5.9 mill increase in timecharter expenses, mainly due to the accrued backstop commitment to Navios Midstream; and (c) $0.6 mill increase in other expense, net, partially mitigated by a: (i) $1.2 mill decrease in management fees, mainly due to the sale of two chemical tankers in 4Q16; (ii) $0.6 mill increase in equity in net earnings of affiliated companies; and (iii) $0.1 mill decrease in general and administrative expenses (excluding the share-based compensation expense).
Revenue for the first nine months of this year decreased by $46 mill, or 20.6%, to $177 mill, compared to $223 mill for the same period of 2016. This decrease was mainly attributable to a: (i) decrease in the market rates during the nine month period, compared to the same period in 2016; and (ii) decrease in revenue by $10.1 mill, due to the sale of one MR2 product tanker in January, 2016 and two chemical tankers in 4Q16.
The TCE rate decreased to $17,814 for the nine month period, from $21,082 for the nine month period ended 30th September, 2016.
On 30th June, 2017, the company recognised a $59.1 mill non-cash impairment loss on its equity investment in Navios Midstream.
The net loss for the nine month period was adjusted to exclude the $59.1 mill impairment loss and $0.7 mill write-off of deferred finance cost. Adjusted net loss decreased by $50.6 mill to $7.1 mill net loss, compared to $43.5 mill net income for the same period of 2016.
This decrease was due to a: (a) $55.4 mill decrease in adjusted EBITDA; (b) $0.8 mill increase in direct vessel expenses; partially mitigated by a: (i) $4.9 mill increase in interest income; and (ii) $0.7 mill decrease in depreciation and amortisation.
Adjusted EBITDA excluded the $59.1 mill impairment loss and decreased by $55.4 mill to $87.8 mill, compared to $143.2 mill for the same period of 2016.
This decrease was mainly driven by a: (a) $46.0 mill decrease in revenue; (b) $12.3 mill increase in timecharter expenses mainly due to the $11.2 mill accrued backstop commitment to Navios Midstream; and (c) $3.9 mill decrease in equity/ (loss) in net earnings of affiliated companies, partially mitigated by a: (i) $2.7 mill decrease in general and administrative expenses (excluding the share-based compensation expense); (ii) $2.6 mill decrease in management fees, mainly due to the sale of the MR2 and two chemical tankers; (iii) $0.8 mill decrease in other expense, net; and (iv) $0.7 mill decrease in direct vessel expenses (excluding amortisation of drydock and special survey costs).
Angeliki Frangou, Chairman and CEO, said, “We are pleased with our results for the third quarter of 2017, where we reported revenue of $54 mill and EBITDA of $23.3 mill. We also declared a dividend of $0.05 per share for the quarter, resulting in a dividend yield of about 16%.
“The recent volatility in the price of oil and continued uncertainty in the outlook has adversely affected transportation. However, our long-term chartering strategy insulates us somewhat from this volatility,” she said.