12.8 C
Hamburg
Friday, June 5, 2020
Home News Navios Holdings reports its financial results

Navios Holdings reports its financial results

Navios Maritime Holdings Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2018

Revenue

  • $390.4 million for 9M 2018
  • $141.5 million for Q3 2018

Cash from operating activities

  • $39.6 millionfor 9M 2018
  • $10.1 million for Q3 2018

Adjusted EBITDA

  • $134.1 millionfor 9M 2018
  • $62.8 million for Q3 2018

Fleet renewal (2017-2018YTD)

  • 17% decrease in average age
  • 8% increase in capacity

MONACO — Navios Maritime Holdings Inc. (“Navios Holdings” or “the Company”) reported financial results for the third quarter and nine months ended September 30, 2018.

Angeliki Frangou, Chairman and Chief Executive Officer, stated, “I am pleased with the results of the third quarter of 2018, for which we reported revenue of $141.5 million and Adjusted EBITDA of $62.8 million. We continue to see the positive effects of healthier charter markets on our business. Rates for dry bulk vessels improved materially, with the TCE rate of our fleet for the third quarter of 2018 about 50% higher than the third quarter of 2017.  This increased our adjusted EBITDA from core shipping operations by almost 250% in the third quarter of 2018 compared to the third quarter of 2017.”

Angeliki Frangou continued, “We have leveraged the increase in market rates through our chartering initiative that has 26 vessels chartered out on index linked agreements with an average charter rate equal to 110% of the respective index.  The charters provide Navios multiple options for fixing the charter rate for all or a portion of the remaining charter period.”

HIGHLIGHTS – RECENT DEVELOPMENTS

  • Bond Repurchase

In September 2018, Navios Holdings repurchased a total of $35.7 million in par value of its 7.375% First Priority Ship Mortgage Notes due 2022.

Fleet Update

  • Renewal and Expansion

In November 2018, Navios Primavera, a 2007-built, 53,464 dwt vessel, was delivered to the owned fleet. Navios Holdings in August 2018, exercised the option to acquire the above chartered-in vessel, for a purchase price of $10.5 million.

  • Sale of vessels

In November 2018, Navios Holdings agreed to sell to an unrelated third party the Navios Magellan, a 2000-built Panamax vessel of 74,333 dwt, for a total net sale price of $7.0 million, to be paid in cash.

Following fleet activities during the period 2017-2018YTD, the average age of Navios Holdings’ fleet has decreased by 17%, basis fully delivered fleet, and the capacity of the fleet has increased by 8%.

  • Capturing market recovery

Navios Holdings controls a fleet of 70 vessels totaling 7.1 million dwt, of which 36 are owned and 34 are chartered-in under long-term charters (collectively, the “Core Fleet”). The fleet consists of 20 Capesize, 32 Panamax, 16 Ultra-Handymax and two Handysize vessels, with an average age of 8.0 years, basis fully delivered fleet.

Navios Holdings 5,457 available days for the remaining three months of 2018 and 20,428 total available days for 2019 (excluding the fleet of Navios Logistics and vessels servicing contracts of affreightment).

The average TCE rate we achieved for the third quarter of 2018 was $14,210 per day, approximately 50% higher than the same quarter of last year. For the nine month period ended September 30, 2018, we achieved a TCE of $12,368 per day, approximately 40% higher than the same period in 2017.

As of November 7, 2018, Navios Holdings has chartered-out 93.7% of available days for the remaining three months of 2018, out of which 64.0% on fixed rate and 29.7% on index or profit sharing, and 42.8% of available days for 2019, out of which 8.3% on fixed rate and 34.5% on index or profit sharing. The above figures do not include the fleet of Navios Logistics and vessels servicing contracts of affreightment.

Exhibit II provides certain details of the Core Fleet of Navios Holdings. It does not include the fleet of Navios Logistics.

Earnings Highlights

EBITDA, Adjusted EBITDA, Adjusted Net Income/(Loss) and Adjusted Basic Loss per Share are non-U.S. GAAP financial measures and should not be used in isolation or as substitution for Navios Holdings’ results calculated in accordance with U.S. GAAP.

See Exhibit I under the heading, “Disclosure of Non-GAAP Financial Measures,” for a discussion of EBITDA, Adjusted EBITDA, Adjusted Net Income/(Loss) and Adjusted Basic Loss per Share of Navios Holdings (including Navios Logistics), and EBITDA of Navios Logistics (on a stand-alone basis), and a reconciliation of such measures to the most comparable measures calculated under U.S. GAAP.

Third Quarter 2018 and 2017 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The third quarter 2018 and 2017 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.

Three Month Period EndedThree Month Period Ended
September 30,September 30,
20182017
(unaudited)(unaudited)
Revenue$141,453$120,555
Net Loss$(1,816)$(28,332)
Adjusted Net Income/(Loss)$944(1)$(28,332)
Net cash provided by/(used in) operating activities$10,077$(12,626)
EBITDA$60,047$31,192
Adjusted EBITDA$62,807(1)$31,192
Basic Loss per Share$(0.04)$(0.26)
Adjusted Basic Loss per Share$(0.01)(1)$(0.26)
(1) Adjusted EBITDA, Adjusted Net Income and Adjusted Basic Loss per Share for the three months ended September 30, 2018 exclude a $2.8 million impairment loss relating to the sale of Navios Mars and Navios Sphera.

Revenue from dry bulk vessel operations for the three months ended September 30, 2018 was $85.6 million, as compared to $61.0 million for the same period during 2017. The increase in dry bulk revenue was mainly attributable to the increase in the time charter equivalent (“TCE”) per day by 49.9% to $14,210 per day in the third quarter of 2018, as compared to $9,481 per day in the same period of 2017.

Revenue from the logistics business was $55.9 million for the three months ended September 30, 2018, as compared to $59.6 million for the same period in 2017. The decrease was mainly attributable to (i) a $3.7 million decrease in revenue from the cabotage business mainly due to fewer operating days; (ii) a $2.8 million decrease in sales of products mainly due to a decrease in the Paraguayan liquid port’s volumes of products sold; and (iii) a $1.9 million decrease in revenue from the barge business mainly related to liquid cargo transportation. The overall decrease was partially mitigated by (i) a $4.7 million increase in revenue from the port terminal business mainly due to the commencement of operations at the new iron ore terminal.

Net Loss of Navios Holdings was $1.8 million for the three months ended September 30, 2018, as compared to $28.3 million for the same period in 2017. Net Loss was affected by items described in the table above. Excluding these items, Adjusted Net Income of Navios Holdings for the three months ended September 30, 2018 was $0.9 million, as compared to $28.3 million Adjusted Net Loss for the same period in 2017. The $29.2 million increase in Adjusted Net Income was mainly due to (i) a $31.6 million increase in Adjusted EBITDA; (ii) a $1.6 million decrease in depreciation and amortization; and (iii) a $0.3 million increase in income tax benefit. This overall increase of $33.5 million was partially mitigated by (i) a $3.9 million increase in interest expense and finance cost, net; (ii) a $0.3 million increase in amortization for deferred drydock and special survey costs; and (iii) a $0.1 million increase in share-based compensation expense.

Net Income of Navios Logistics was $6.7 million for the three month period ended September 30, 2018, as compared to $1.8 million for the same period in 2017.

Adjusted EBITDA of Navios Holdings for the three months ended September 30, 2018 increased by $31.6 million to $62.8 million, as compared to $31.2 million for the same period in 2017. The increase in Adjusted EBITDA was primarily due to (i) a $20.9 million increase in revenue; (ii) a $6.8 million decrease in time charter, voyage and logistics business expenses; (iii) a $6.5 million increase in gain on bond extinguishment; (iv) a $3.9 million decrease in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); and (v) a $0.3 million decrease in general and administrative expenses (excluding share-based compensation expenses). This overall increase of $38.4 million was partially mitigated by (i) a $5.1 million decrease in equity in net earnings from affiliated companies; and (ii) a $1.7 million increase in net income attributable to noncontrolling interest.

EBITDA of Navios Logistics was $25.5 million for the three month period ended September 30, 2018, as compared to $18.2 million for the same period in 2017.

Nine Months Ended September 30, 2018 and 2017 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The information for the nine month period ended September 30, 2018 and 2017 presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.

Nine Month Period EndedNine Month Period Ended 
 September 30, September 30, 
20182017 
(unaudited)(unaudited) 
Revenue$390,386$334,519
Net Loss$(67,965)$(114,309)
Adjusted Net Loss$(51,895)(1)$(95,391)(2)
Net cash provided by operating activities$39,591$33,578
EBITDA$118,066$61,144
Adjusted EBITDA$134,136(1)$80,062(2)
Basic Loss per Share$(0.63)$(1.04)
Adjusted Basic Loss per Share$(0.50)(1)$(0.89)(2)
(1) Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss per Share for the nine months ended September 30, 2018 exclude a $16.1 million impairment loss relating to the sale of Navios Herakles, Navios Achilles, Navios Mars and Navios Sphera.
(2) Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss per Share for the nine months ended September 30, 2017 exclude (i) a $14.2 million impairment loss relating to the sale of Navios Ionian and Navios Horizon; and (ii) $4.7 million non-cash impairment losses relating to our affiliates. Adjusted Basic Loss per Share for the nine months ended September 30, 2017 also excludes a gain of $1.1 million following the completion of the Series G and H Exchange Program and the conversion of accrued dividend of private preferred stock to common stock.

Revenue from dry bulk vessel operations for the nine months ended September 30, 2018 was $222.1 million, as compared to $171.8 million for the same period in 2017. The increase in dry bulk revenue was mainly attributable to the increase in TCE per day by 40.0% to $12,368 per day in the nine month period ended September 30, 2018, as compared to $8,836 per day in the same period in 2017.

Revenue from the logistics business was $168.3 million for the nine months ended September 30, 2018, as compared to $162.8 million for the same period in 2017. The increase was mainly attributable to a $21.7 million increase in revenue from the port terminal business mainly due to the commencement of operations at the new iron ore terminal. The overall increase was partially mitigated by (i) a $7.9 million decrease in revenue from the barge business mainly related to liquid cargo transportation; (ii) a $6.4 million decrease in revenue from the cabotage business mainly due to fewer operating days and lower rates; and (iii) a $1.9 million decrease in sales of products mainly due to a decrease in the Paraguayan liquid port’s volumes of products sold.

Net Loss of Navios Holdings was $68.0 million for the nine months ended September 30, 2018, as compared to $114.3 million for the same period in 2017. Net Loss was affected by items described in the table above. Excluding these items, Adjusted Net Loss of Navios Holdings for the nine months ended September 30, 2018 was $51.9 million, as compared to $95.4 million for the same period in 2017. The $43.5 million decrease in Adjusted Net Loss was mainly due to (i) a $54.0 million increase in Adjusted EBITDA; (ii) a $2.7 million decrease in depreciation and amortization; (iii) a $0.7 millionincrease in income tax benefit; and (iv) a $0.4 million decrease in amortization for deferred drydock and special survey costs. This overall decrease was partially offset by (i) a $14.0 million increase in interest expense and finance cost, net; and (ii) a $0.3 million increase in share-based compensation expense.

Net Income of Navios Logistics was $9.7 million for the nine month period ended September 30, 2018, as compared to $3.3 million for the same period in 2017.

Adjusted EBITDA of Navios Holdings for the nine months ended September 30, 2018 increased by $54.0 million to $134.1 million, as compared to $80.1 million for the same period in 2017. The $54.0 million increase in Adjusted EBITDA was primarily due to (i) a $55.9 million increase in revenue; (ii) a $16.5 million decrease in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); (iii) a $6.2 million decrease in time charter, voyage and logistics business expenses; and (iv) a $4.8 million increase in gain on bond and debt extinguishment. This overall increase was partially mitigated by (i) a $20.6 million decrease in equity in net earnings from affiliated companies; (ii) a $3.1 million increase in other expense, net; (iii) a $2.3 million increase in general and administrative expenses (excluding share-based compensation expenses); (iv) a $2.3 million increase in net income attributable to the noncontrolling interest; and (v) a $1.1 milliondecrease in gain on sale of assets.

EBITDA of Navios Logistics was $64.8 million for the nine month period ended September 30, 2018, as compared to $47.5 million for the same period in 2017.
Fleet Summary Data:

The following table reflects certain key indicators indicative of the performance of Navios Holdings’ dry bulk operations (excluding the Navios Logistics fleet) and its fleet performance for the three and nine month periods ended September 30, 2018 and 2017, respectively.

Three Month Three Month Nine Month Nine Month
Period Ended Period Ended Period Ended Period Ended
September 30, September 30, September 30, September 30,
2018 2017 2018 2017
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Available Days (1)5,8755,79417,22217,564
Operating Days (2)5,8585,78917,16117,534
Fleet Utilization (3)99.7%99.9%99.6%99.8%
Equivalent Vessels (4)64636364
TCE (5)$14,210$9,481$12,368$8,836
(1) Available days for the fleet are total calendar days the vessels were in Navios Holdings’ possession for the relevant period after subtracting off-hire days associated with major repairs, drydocking or special surveys and ballast days relating to voyages. The shipping industry uses available days to measure the number of days in a relevant period during which vessels should be capable of generating revenues.
(2) Operating days are the number of available days in the relevant period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a relevant period during which vessels actually generate revenues.
(3) Fleet utilization is the percentage of time that Navios Holdings’ vessels were available for generating revenue, and is determined by dividing the number of operating days during a relevant period by the number of available days during that period. The shipping industry uses fleet utilization to measure a company’s efficiency in finding suitable employment for its vessels.
(4) Equivalent Vessels is defined as the total available days during a relevant period divided by the number of days of this period.
(5) TCE is defined as voyage and time charter revenues less voyage expenses during a relevant period divided by the number of available days during the period.

 

 

- Advertisment - LR Sustainability Decarbonisation Digital Adverts

Latest Posts

ZMPC cranes deal boosts the port of Piraeus

COSCO Shipping Ports and Shanghai Zhenhua Heavy Industries (ZPMC), a heavy-duty equipment manufacturer, have signed a contract for three ship to shore (STS) cranes...

Index shows bunker prices steadily increasing

With crude oil prices steadily climbing in price after the April shocks the bunker fuel prices have, as expected, followed suit and have edged...

MSC Rosa M damages Mumbai crane

The 14,000TEU MSC Rosa M has hit and seriously damaged a crane at the DP World terminal in Nhava Sheva, NSIGT in Mumbai, while...

New distribution centre opens near APM Terminals Mobile

Automotive lift producer BendPak has opened a new distribution centre near APM Terminals Mobile to serve US Gulf, Midwest, East coast and Canadian markets...

Leading shipping lines reveal rates changes in various regions

Major shipping lines are moderating their rating strategy amid the Covid-19 pandemic, which has caused serious reductions in market demand. Given that the key...