Vessel sale loss hits Navios Midstream’s bottom line

Nov 09 2018


The proposed merger between Navios Maritime Midstream Partners and Navios Acquisition was unanimously approved by the conflicts committee and both boards, the company said in its nine month results presentation.

Navios Acquisition owns a sufficient number of Navios Midstream common units to approve the merger on behalf of all the latter’s unitholders and has agreed to consent to the merger.

The closing of the merger is subject to customary closing conditions, including effectiveness of a registration statement on Form F-4 filed with the US Securities and Exchange Commission (SEC) on 30th October, 2018 and the mailing of an information statement to Navios Midstream unitholders.

Navios Midstream has entered into charter-out agreements with a remaining average term of 2.6 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 2018 and 50.8% for 2019, expecting to generate revenues, including the backstop commitment provided by Navios Acquisition, of about $83.4 mill and $44.7 mill for 2018 and 2019, respectively.

The average expected daily charter-out rate for the fleet is $39,007 and $40,225 for 2018 and 2019, respectively.

Revenue for third quarter of 2018 increased by $1.9 mill to $22.6 mill, compared to $20.7 mill for the same period in 2017.

The daily TCE rate was $39,355 for 3Q18 and $39,292 for 3Q17.

EBITDA increased by around $1 mill to $15.6 mill for 3Q18, compared to $14.5 mill for the same period in 2017. Net income increased by $1 mill to $4.9 mill for the period, compared to $3.9 mill for the same period in 2017.

Navios Midstream generated an operating surplus for 3Q18 of $9.6 mill.

Revenue for the first nine months of the year increased by $2.8 mill to $63.2 mill, compared to $60.4 mill for the same period in 2017. The daily TCE rate was $38,818 for 2018 period and $39,043 for the nine months of 2017.

EBITDA for the period was affected by a $32.4 mill book loss on the sale of the ‘Shinyo Kannika’. Excluding this, adjusted EBITDA was $44 mill, compared to $41.6 mill for the same period in 2017.

Net loss for the nine months amounted to $20.4 mill as a result of the $32.4 mill loss on sale of the vessel. Excluding this adjusted net income was $12 mill, compared to $10.3 mill for the same period in 2017.

Navios Midstream generated an operating surplus for the nine month period of $26.2 mill.

As for Navios Acquisition’s results, chairman and CEO Angeliki Frangou, explained, “For the third quarter of 2018, Navios Acquisition reported revenue of $41.6 mill and adjusted EBITDA of $9.9 mill. We also declared a quarterly dividend of $0.02 cents per share for the third quarter, representing an annualised dividend of $0.08 cents per share.”

“Since September, tanker rates have substantially improved, with the TD3 VLCC spot rate increasing by 213% to about $51,000 per day and the one-year timecharter rate increasing by about 44% to $28,000 per day.

“In light of this, not only is the combination with Navios Maritime Midstream Partners  expected to reduce operating breakeven for available days - not subject to fixed rates - by almost 15%, but also to increase our available days by 17% to about 15,000 days, “ She said.

Currently, Navios Acquisition has contracted 99.2% and 32.7% of its available days on a charter-out basis for 2018 and 2019, respectively, which is expected to generate revenues of around $160.1 mill and $50.1 mill for 2018 and 2019, respectively.

The average contractual net daily charter-out rate for the 93.6% and the 26.6% of the available days that are contracted on base rate and/or on base rate with profit sharing arrangements is expected to be $13,531 and $14,721 for 2018 and 2019, respectively.

 



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