Revenue decline affects Navios Acquisition

Feb 09 2018


Navios Maritime Acquisition Corp’s revenue for the three month period ended 31st December, 2017 decreased by $16.9 mill, or 25.2%, to $50.3 mill, compared to $67.3 mill for the same period of 2016.

The revenue fall was mainly attributable to: (i) decrease in the market rates during 4Q17, compared to the same period in 2016; and (ii) decrease in revenue by $0.7 mill, due to the sale of two chemical tankers in 4Q16.
 
The daily TCE Rate, decreased to $15,299 in 4Q17, from $19,683 for 4Q16.
 
 
Net loss for the period amounted to $12 mill, compared to $18.1 mill net income for the same period of 2016. The decrease was due to: (a) $20.2 mill decrease in Adjusted EBITDA; (b) $9.5 mill gain on sale of vessels incurred in 4Q16; (c) $0.5 mill increase in direct vessel expenses; and (d) $0.4 mill gain on debt repayment incurred in 4Q16; partially mitigated by a $0.4 mill increase in interest income.
 
Adjusted EBITDA decreased by around $20.2 mill to $20 mill for 3Q17, compared to $40.1 mill for the same period of 2016. This decrease was mainly due to: (a) $16.9 mill decrease in revenue, as described above; (b) $4.7 mill increase in timecharter expenses, mainly due to the accrued backstop commitment to Navios Midstream; (c) $0.4 mill increase in general and administrative expenses, partially mitigated by: (i) $0.6 mill decrease in other expense, net; (ii) $0.3 mill decrease in management fees, mainly due to the sale of the two chemical tankers; (iii) $0.9 mill increase in equity in net earnings of affiliated companies; and (iv) $0.1 mill increase in other income (excluding the $0.4 mill gain on debt repayment incurred in 4Q16).
 
Revenue for the full year decreased by $63 mill, or 21.7%, to $227.3 mill, compared to $290.2 mill for the same period of 2016. 
This decrease was mainly attributable to: (i) decrease in the market rates during the year, compared to the same period in 2016; and (ii) decrease in revenue by $10.8 mill, due to the sale of one MR2 in January, 2016 and two chemical tankers in 4Q16. 
The daily TCE rate decreased to $17,186 for the year from $20,742 for the previous year.
 
Net loss for the year amounted to $78.9 mill, compared to $62.9 mill net income for the same period of 2016. Adjusted net loss for the year decreased by $71.5 mill to $19.4 mill net loss, compared to $52.1 mill net income for 2016. 
 
This decrease was due to: (a) $75.6 mill decrease in Adjusted EBITDA; (b) $1.4 mill increase in amortisation of drydock and special survey costs, included in direct vessel expenses; and (c) $0.5 mill increase in interest expense and finance cost; partially mitigated by: (i) $5.3 mill increase in interest income; and (ii) $0.7 mill decrease in depreciation and amortisation, due to the sale of the MR and two chemical tankers in 2016.
 
Adjusted EBITDA decreased by around $75.6 mill to $107.7 mill for 2017, compared to $183.3 mill for the same period of 2016. The decrease in Adjusted EBITDA was mainly due to a: (a) $63mill decrease in revenue, as described above; (b) $16.9 mill increase in timecharter expenses mainly due to the $16.4 mill accrued backstop commitment to Navios Midstream; and (c) $3.1 mill decrease in equity/ (loss) in net earnings of affiliated companies, (excluding the $59.1 mill of non-cash impairment loss on equity investment in Navios Midstream), partially mitigated by: (i) $2.3 mill decrease in general and administrative expenses (excluding stock-based compensation); (ii) $2.9 mill decrease in management fees, mainly due to the sale of the MR2 and two chemical tankers; (iii) $1.4 mill decrease in other expense; and (iv) $0.7 mill decrease in direct vessel expenses (excluding amortisation of drydock and special survey costs).
 
Angeliki Frangou, chairman and CEO, stated, “We are pleased with the results for the fourth quarter and full year of 2017. For the fourth quarter, Navios Acquisition reported revenue of $50.3 mill and Adjusted EBITDA of $20 mill. For the full year of 2017, Navios Acquisition reported revenue of $227.3 mill and Adjusted EBITDA of $107.7 mill. 
 
“We also declared a quarterly distribution of $0.02 per share for the fourth quarter. This dividend represents an annualised distribution of $0.08 per share and a yield of approximately 10% based on the current market price of NNA.
“This dividend is accompanied by a new $25 mill stock repurchase programme. We believe this programme is a particularly effective and tax efficient method for returning capital to shareholders at a time when Navios Acquisition’s shares are trading below the company’s net asset value as estimated by our analysts. 
 
“As fellow shareholders, we are personally affected by these actions, and thus share our belief that by so reinstituting a stock repurchase programme, we are progressing the best long-term interests of shareholders,“ she said.
 
Currently, Navios Acquisition has contracted 60.2% of its available days on a charter-out basis for 2018, which is expected to generate revenues of about $86.4 mill. 
 
The average net daily charter-out rate for the 46.3% of the available days that are contracted on base rate and/or on base rate with profit sharing, is expected to be $14,184 for 2018.



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Apr 2018

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