Revenue
- $248.9 million for H1 2018
- $132.1 million for Q2 2018
Cash from operating activities
- $29.5 million for H1 2018
- $11.7 million for Q2 2018
Adjusted EBITDA
- $71.3 million for H1 2018
- $43.2 million for Q2 2018
$79.0 million agreement to sell two vessels
- $31.8 million full prepayment of outstanding bank debt associated with the two vessels
- $47.2 million cash on balance sheet
Fleet renewal (2017-2018YTD)
- 9% increase in capacity
- 15% decrease in average age
Navios Maritime Holdings Inc. (“Navios Holdings” or “the Company”) (NYSE:NM), a global, vertically integrated seaborne shipping and logistics company, reported financial results for the second quarter and six months ended June 30, 2018.
Angeliki Frangou, Chairman and Chief Executive Officer, stated, “I am pleased with the results of Q2 and H1 of 2018, for which we reported Adjusted EBITDA of $43.2 million and $71.3 million, respectively. Our Adjusted EBITDA was 38% and 46% higher than the second quarter of 2017 and the first half of 2017 respectively.”
Angeliki Frangou continued, “Navios controls 70 dry bulk vessels with an average age of 7.8 years. Over the past 18 months, we renewed and expanded our fleet, decreasing fleet age by 15% and increasing fleet size by 9%. Much of this we accomplished using minimal capital by increasing our charter-in fleet, often with purchase options. We are now experiencing the positive effects of healthier charter markets on our business results.”
HIGHLIGHTS – RECENT DEVELOPMENTS
Fleet Update
- Renewal and Expansion
In August 2018, Navios Holdings exercised the option to acquire Navios Primavera, a 2007-built, 53,464 dwt chartered-in vessel for an estimated purchase price of approximately $10.5 million to be determined on the actual delivery date of the vessel, which is expected within the fourth quarter of 2018.
In August 2018, Navios Holdings agreed to charter-in one Kamsarmax vessel under a ten-year bareboat charter with a purchase option. This vessel is expected to be delivered in the second quarter of 2020. The transaction is subject to completion of definitive documentation.
- Sale of vessels
In July 2018, Navios Holdings agreed to sell the Navios Mars, a 2016-built Capesize vessel of 181,259 dwt, and the Navios Sphera, a 2016-built Panamax vessel of 84,872 dwt, to its affiliate Navios Maritime Partners L.P. (“Navios Partners”) for a sale price of $79.0 million.
Part of the sale proceeds will be used for the full prepayment of the $31.8 million outstanding bank debt of the two vessels, while the remaining $47.2 million will be cash on our balance sheet. The vessels are expected to be delivered to Navios Partners within the third quarter of 2018.
In July 2018, Navios Holdings completed the sale to an unrelated party of the Navios Achilles, a 2001-built Ultra-Handymax vessel of 52,063 dwt for a total net sale price of $8.1 million, paid in cash.
Following fleet activities during the period 2017-2018YTD, the average age of Navios Holdings’ fleet has decreased by 15%, basis fully delivered fleet, and the capacity of the fleet has increased by 9%.
- Capturing market recovery
Navios Holdings controls a fleet of 70 vessels totaling 7.1 million dwt, of which 35 are owned and 35 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 7.8 years, basis fully delivered fleet.
Navios Holdings has 22,831 total available days for 2018 (excluding the fleet of Navios Logistics and vessels servicing contracts of affreightment) and 11,482 available days for H2 2018.
The average TCE rate we achieved for the second quarter of 2018 was $11,791 per day, 29% higher than the same quarter of last year. For the second half of 2018, we achieved a TCE of $11,412 per day, 34% higher than the first half of 2017.
As of August 16, 2018, Navios Holdings has chartered-out 87.5% of available days for the remaining six months of 2018, out of which 50.1% on fixed rate and 37.4% 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 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 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.
Read the full report here.
