Revenue decrease hits Navios Acquisition

Aug 11 2017


Navios Maritime Acquisition Corp reported a revenue decrease of 21.5% for the three month period ended June 30, 2017.

Revenue fell by $16 mill to $58.5 mill, compared to $74.5 mill for the same period of 2016.

The decrease was mainly attributable to the: (i) decrease in the market rates during 2Q17, compared to the same period in 2016; and (ii) decrease in revenue by $3.3 mill, due to the sale of two chemical tankers in 4Q16.

The average daily TCE rate fell to $17,491 for 2Q17, from $21,380 for 2Q16.

On 30th June, 2017, the company recognised a $59.1 mill non-cash impairment loss on its equity investment in Navios Midstream.

Adjusted EBITDA for 2Q17, excluding the impairment loss, decreased by about $18.4 mill to $27.1 mill, compared to $45.5 mill for the same period of 2016.

The decrease in Adjusted EBITDA was mainly due to a: (a) $16 mill decrease in revenue, as described above; (b) $4.6 mill increase in timecharter expenses mainly due to the $4.1 mill accrued backstop commitment to Navios Midstream; and (c) $2.4 mill decrease in equity/ (loss) in net earnings of affiliated companies, partially mitigated by a; (i) $2 mill decrease in general and administrative expenses (excluding share-based compensation expense); (ii) $1.2 mill decrease in other income/ (expense), net; (iii) $0.7 mill decrease in direct vessel expenses (excluding amortisation of drydock and special survey costs); and (iv) $0.6 mill decrease in management fees, mainly due to the sale of two chemical tankers, as discussed above.

Net loss for 2Q17 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 $17.1 mill to $4.6 mill loss, compared to $12.4 mill income for the same period of 2016. This decrease was due to : (a) a $18.4 mill decrease in Adjusted EBITDA; (b) a $0.3 mill increase in direct vessel expenses; and (c) a $0.2 mill increase in interest expense and finance cost partially mitigated by a: (i) $1.7 mill increase in interest income; and (ii) $0.1 mill decrease in depreciation and amortisation.

Revenue for the first half of this year fell by 20.6% or $32 mill to $122.9 mill, compared to $154.9 mill for the same period of 2016.

This decrease was mainly attributable to the: (i) decrease in the market rates during 1H17, compared to the same period in 2016; and (ii) decrease in revenue by $7 mill, due to the sale of one MR2 in January, 2016 and two chemical tankers in 4Q16.

The average daily TCE rate decreased to $18,475 for 1H17, from $22,055 for 1H16.

Adjusted EBITDA for the period, adjusted to exclude the impairment loss, fell by around $36.7 mill to $64.5 mill, compared to $101.2 mill for the same period of 2016.

Net income for the six month period was adjusted to exclude the impairment loss and $0.7 mill write-off of deferred finance cost resulting in adjusted net income decreasing by $33.4 mill to $1 mill, compared to $34.4 mill for 1H16.

Angeliki Frangou, chairman and CEO, said, “For the second quarter of 2017, we reported revenue of $58.5 mill and Adjusted EBITDA of $27.1 mill. We also declared a dividend of $0.05 per share for the quarter, resulting in a dividend yield of about 14.0%.

“The recent volatility in oil price and the continued uncertainty concerning commodity pricing have affected oil transportation. However, our chartering strategy of seeking long-term employment has insulated us somewhat. We have earned above-market charter rates when spot rates were contracting and period employment was unavailable.

“In the first six months of 2017, our average charter rate was estimated about 51% higher than the market average, translating into about $39.1 mill of additional revenue,“ she concluded.  



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