EBITDA was $16.2 mill in 3Q15 and $42.8 mill for the nine month period. Operating surplus was $9.7 mill and $29.5 mill, while profit sharing was $2.1 mill and $4.6 mill, respectively.
Angeliki Frangou, Navios Midstream chairman and CEO, said, "We are excited to report our results for the third quarter of 2015. We had $16.2 mill of EBITDA and $6.2 mill of net income, or $0.30 per common unit. We also announced a 2.4% increase in distributions to $0.42 and a quarter cents per unit. Navios Midstream's annualised distribution will be $1.69 per unit -- offering a current yield of 11.5%.
“The VLCC market remains healthy and the relative low price of oil bodes well for oil consumption and transportation. So far, this correlation has held as the 2015 year to date spot rate for a VLCC improved more than 100% to an average of about $56,000, compared to the average rate of $27,000 in 2014. In addition, the charter market has improved by 86%, with 56 long-term timecharters fixed through mid-October compared to 30 for the whole of 2014," she said.
During 3Q15, Navios Midstream benefited from the VLCC spot market and gained $2.1 mill under its profit sharing arrangements. Profit share gained for the nine months ended 30th September, 2015, was $4.6 mill.
The company has entered into long-term charter-out agreements for its vessels, with a remaining average term of 5.6 years. These are expected to provide a stable base of revenue and distributable cash flow.
Navios Midstream has currently contracted out 100% of its available days for 2015 and 2016, expecting to generate revenues of around $81.9 mill and $89.6 mill, respectively. The average expected daily charter-out rate for the fleet is $44,151 and $40,798 for 2015 and 2016, respectively.
Revenue for 3Q15 increased by $6.3 mill to $22.5 mill, compared to $16.2 mill for the same period in 2014. Daily TCE was $45,432 for 3Q15 and $43,478 for 3Q14. This increase was due to profit sharing of $2.1 mill recognised in the quarter, in relation to certain charters and the acquisition of the ‘Nave Celeste’ and the ‘C Dream’ in June, 2015.
EBITDA increased by $4 mill to $16.2 mill 3Q15, compared to $12.3 mill for 3Q14. This increase was due to a $6.3 mill rise in revenue. However, it was partially mitigated by a: (a) $1.7 mill increase in management fees; (b) $0.5 mill increase in general and administrative expenses; and (c) $0.1 mill increase in timecharter expenses.
Navios Midstream generated an operating surplus of $9.7 mill in 3Q15. Net income for 3Q15 was $6.2 mill, compared to just under a $0.1 mill loss for 3Q14. The increase in net income was due to a: (i) $4 mill increase in EBITDA; and (ii) $3.8 mill decrease in interest expense and finance cost; partially mitigated by a :(a) $1.5 mill increase in depreciation and amortisation; and (b) $0.1 mill increase in direct vessel expenses.
Revenue for the nine month period of 2015 increased by $10 mill to $57.5 mill, compared to $47.5 mill for the same period in 2014. Daily TCE was $45,917 and $42,987 for the same period in 2014. This increase was due to profit sharing of $4.6 mill and the acquisition of the two vessels mentioned.
EBITDA increased by $7.3 mill to $42.8 mill, compared to $35.5 mill for the same period in 2014. The increase in EBITDA was due to a $10 mill increase in revenue, partly mitigated by a: (a) $1.7 mill increase in management fees; and (b) $1 mill increase in general and administrative expenses.
The operating surplus for the nine month period of 2015 was $29.5 mill. However, net income was negatively affected by a $1.7 mill write-off of deferred finance cost in association with debt prepayment. Excluding the write-off, adjusted net income was $19.6 mill, compared to a $1.4 mill loss for the same period in 2014.
The adjusted net income increase was mainly due to a: (i) $7.3 mill increase in EBITDA; and (ii) $15.4 mill decrease in interest expense and finance cost; partly mitigated by a $1.7 mill increase in depreciation and amortisation.