Navios Maritime Holdings Inc. Reports First Quarter Revenues of $117 Million

Παρασκευή, 28 Μαΐου 2021 16:52
Navios Maritime Holdings Inc. Reports First Quarter Revenues of $117 Million

Navios Maritime Holdings Inc., a global seaborne shipping and logistics company, yesterday reported financial results for the first quarter ended March 31, 2021.

Angeliki Frangou, Chairman and Chief Executive Officer, stated, “I am pleased with the results for the first quarter of 2021. In the first quarter of 2021, Navios Holdings reported revenue of $117.0 million and Adjusted EBITDA of $48.4 million.”

Angeliki Frangou continued, “The global pandemic is subsiding as the vaccines rollout gathers momentum. This along with accommodative policy measures are propelling economic activity. The IMF recently increased its 2021 GDP growth forecast 6%, giving us optimism about demand for drybulk vessels. In fact, we are enjoying this impact in our business, with our first quarter 2021 TCE rates more than double our first quarter 2020 TCE rates and about 9% higher sequentially over fourth quarter of 2020.”

HIGHLIGHTS – RECENT DEVELOPMENTS

Vessel Sales

The Company agreed to sell to unrelated third parties: (i) the Navios Astra, a 2006-built Ultra-Handymax vessel of 53,468 dwt, for a sale price of $6.8 million (completed in February 2021); and (ii) the Navios Serenity, a 2011-built Handysize vessel of 34,690 dwt for a sale price of $10.6 million (expected to be completed in June 2021).

The Company agreed to sell to a related party: (i) the Navios Centaurus, a 2012-built Panamax vessel of 81,472 dwt, and the Navios Avior, a 2012-built Panamax vessel of 81,355 dwt, for a sale price of $39.3 million, including working capital adjustments (completed in March 2021); and (ii) a 2011-built Capesize vessel that is currently chartered-in by Navios Holdings. The net sale proceeds are expected to be $8.5 million (expected to be completed in June 2021).

 Debt Reduction

Year to date, the Company repaid $71.0 million of outstanding credit facilities.

Bond Maturities

Our 7.375% First Priority Ship Mortgage Notes mature in January 2022 (the “2022 Notes”). Our 11.25% Senior Secured Notes mature in August 2022 (the “2022 Senior Secured Notes”). Under the terms of the 2022 Senior Secured Notes, Navios Holdings has an obligation to make a springing maturity offer in September 2021 to repurchase those notes at par unless certain conditions relating to the refinancing of our 2022 Notes are met. In October 2020, Navios Holdings entered into a supplemental indenture (the “Sixth Supplemental Indenture”) which, among other things, eliminates Navios Holdings’ obligation to make a springing maturity offer subject to the occurrence of a Qualified IPO (as defined in the Sixth Supplemental Indenture) of Navios South American Logistics Inc. (“Navios Logistics”). There can be no assurance a Qualified IPO will occur prior to the springing maturity date, or at all.

Although Navios Holdings is currently attempting to address these upcoming maturities and create additional liquidity to fund working capital requirements through the sale of assets and refinancing plans, there can be no assurance it will be successful in such attempts or that any such attempts will be consummated on terms satisfactory to the Company, or at all.

Fleet Statistics

Navios Holdings controls a fleet of 43 vessels (excluding two vessels agreed to be sold) totaling 4.8 million dwt, of which 28 are owned (including five bareboat-in vessels) and 15 are chartered-in under long-term charters (collectively, the “Core Fleet”). The fleet consists of 15 Capesize, 23 Panamax, four Ultra-Handymax and one Handysize vessels, with an average age of 8.3 years.

Navios Holdings has currently chartered-out 78.7% of available days for the remaining nine months of 2021. Of these available days, 35.2% are chartered-out on fixed rate and 43.5% are chartered-out on index.

The average contracted daily charter-in rate for the long-term charter-in vessels (excluding our Kleimar controlled fleet, which is mainly used for servicing contracts of affreightment) for the remaining nine months of 2021 is $15,138 per day. The above figures do not include the fleet of Navios Logistics.

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

 Non-GAAP Measures

EBITDA, Adjusted EBITDA, Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders and Adjusted Basic Earnings/(Loss) attributable to Navios Holdings’ common stockholders 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) attributable to Navios Holdings’ common stockholders and Adjusted Basic Earnings/(Loss) attributable to Navios Holdings’ common stockholders 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.

Earnings Highlights

First Quarter 2021 and 2020 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The first quarter 2021 and 2020 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.

(1) Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss attributable to Navios Holdings’ common stockholders for the three month period ended March 31, 2021 exclude (i) $26.4 million in equity income in affiliate companies due to Navios Partners’ Merger effected on March 31, 2021; and (ii) $20.5 million in impairment losses relating to three drybulk vessels.
(2) Adjusted EBITDA and Adjusted Net Loss attributable to Navios Holdings’ common stockholders for the three month period ended March 31, 2020 exclude (i) $11.2 million in impairment losses relating to two drybulk vessels; (ii) $12.7 million of other-than-temporary impairment (“OTTI”) loss and impairment losses of loan receivable in relation to Navios Europe II; and (iii) $5.6 million in non-cash impairment losses incurred by our affiliate companies relating to their investment in Navios Europe II.
(3) Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per share for the three month period ended March 31, 2020 excludes the items referred in footnote (2) above as well as a gain of $0.2 million related to the conversion of accrued dividends on private preferred stock to common stock.

Revenue from the Dry Bulk Vessel Operations for the three month period ended March 31, 2021 increased by $29.5 million, or 86.0%, to $63.7 million, as compared to $34.3 million for the same period during 2020. The increase in dry bulk revenue was mainly attributable to the increase in the time charter and freight market during three month period ended March 31, 2021. The TCE per day increased by 103.4% to $14,404 per day in the three month period ended March 31, 2021, as compared to $7,082 per day in the same period of 2020.

Revenue from the Logistics Business was $53.2 million for the three month period ended March 31, 2021, as compared to $56.8 million for the same period in 2020. The decrease was mainly attributable to (i) a $4.6 million decrease in sales of products mainly due to the decrease in the Paraguayan liquid port’s volume of products sold; (ii) a $2.0 million decrease in revenue from the cabotage business mainly due to lower time charter rates due to market conditions and fewer operating days; and (iii) a $0.1 million decrease in revenue from the barge business, mainly due to a $6.1 million decrease in time charter revenues due to the expiration of certain legacy time charter contracts, partially offset by a $6.0 million increase in CoA/voyage revenues, mainly due to higher CoA/voyage revenues of convoys previously under time charter contracts. The overall decrease was partially mitigated by a $3.1 million increase in revenue from the port terminal business, mainly due to higher volumes transshipped in the grain port terminal.

Net Income attributable to Navios Holdings’ common stockholders was $0.2 million for the three month period ended March 31, 2021, as compared to $53.3 million Net Loss attributable to Navios Holdings’ common stockholders for the same period in 2020. Net Income attributable to Navios Holdings’ common stockholders was affected by items described in the table above. Excluding these items, Adjusted Net Loss attributable to Navios Holdings’ common stockholders for the three month period ended March 31, 2021 was $5.8 million, as compared to $23.8 million Adjusted Net Loss attributable to Navios Holdings’ common stockholders for the same period in 2020. This decrease in Adjusted Net Loss was mainly due to (i) a $19.9 million increase in Adjusted EBITDA as discussed in the paragraph below; (ii) a $1.8 million decrease in depreciation and amortization; (iii) a $0.8 million increase in income tax benefit; and (iv) a $0.2 million decrease in stock-based compensation expense. This overall decrease of approximately $22.6 million was partially mitigated by (i) a $4.6 million increase in interest expense and finance cost, net, mainly due to the higher weighted average interest rate of Navios Logistics due to the issuance of the 10.75% Notes due 2025; and (ii) a $0.1 million increase in amortization of deferred drydock, special survey and other capitalized items.

Net Income of Navios Logistics, on a standalone basis, was $3.2 million for the three month period ended March 31, 2021 as compared to $7.0 million for the same period in 2020.

Adjusted EBITDA of Navios Holdings for the three month period ended March 31, 2021 increased by $19.9 million to $48.6 million, as compared to $28.7 million for the same period in 2020. The increase in Adjusted EBITDA was primarily due to (i) a $25.9 million increase in revenue; (ii) a $8.3 million decrease in time charter, voyage and logistics business expenses; (iii) a $1.4 million decrease in net income attributable to noncontrolling interest; and (iv) a $1.3 million decrease in other expense, net. This overall increase of $36.9 million was partially mitigated by (i) a $11.2 million gain on bond extinguishment recorded in the three month period ended March 31, 2020; (ii) a $4.8 million decrease in equity in net earnings from affiliate companies; and (iii) a $1.0 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items).

EBITDA of Navios Logistics, on a standalone basis, was $23.3 million for the three month period ended March 31, 2021, as compared to $22.2 million for the same period in 2020.

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 month period ended March 31, 2021 and 2020, respectively.

(1) Available days are the total number of days a vessel is controlled by a company less the aggregate number of days that the vessel is off-hire due to major repairs or repairs under guarantee, vessel upgrades, drydocking or special surveys and ballast days relating to voyages. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues.
(2) Operating days are the number of available days in a period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances.
(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.
(4) Equivalent Vessels are defined as the available days of the fleet divided by the number of the calendar days in the period.
(5) TCE rates are defined as voyage and time charter revenues less voyage expenses during a period divided by the number of available days during the period. The TCE rate is a standard shipping industry performance measure used primarily to present the actual daily earnings generated by vessels on various types of contracts for the number of available days of the fleet.

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