Navios Maritime Acquisition Corporation Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2016
Monaco - Nov. 08, 2016
• Net income
- $8.8 million for Q3 2016; $0.06 per share
- $44.8 million for the nine months 2016; $0.28 per share
• EBITDA
- $41.7 million for Q3 2016;
- $144.7 million for the nine months 2016;
• Profit sharing $7.7 million for the nine months 2016
• Sale of Nave Universe, chemical tanker
• Quarterly dividend of $0.05 per share – consistently paid since 2010
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Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition stated, “Navios Acquisition recorded a net income of $44.8 million or $0.28 per share for the first nine months of 2016, of which $8.8 million, or $0.06 per share, was recorded in the third quarter. EBITDA for the first nine months of 2016 was $144.7 million, of which $41.7 million was recorded in the third quarter. Profit sharing captured market upside and earned $7.7 million during the first nine months of 2016, including $0.3 million in the third quarter. We also declared a dividend of $0.05 per share for the quarter, resulting in a dividend yield of about 16%.”
Angeliki Frangou continued, “Our chartering policy of seeking long-term charters provided above market earnings during the third quarter, a period during which spot charter rates were correcting. Navios Acquisition’s average charter rate for its fleet, excluding its chemical tankers, was about 54% higher than the market average. Our fleet is effectively fixed for the balance of 2016 and 60.4% fixed for 2017. Our results speak to the strength of our business model, particularly when coupled with low operating costs which are fixed through mid-2018 at rates about 11% below industry average."
HIGHLIGHTS — RECENT DEVELOPMENTS
Dividend of $0.05 per share of common stock
On November 4, 2016, the Board of Directors of Navios Acquisition declared a quarterly cash dividend for the third quarter of 2016 of $0.05 per share of common stock. The dividend is payable on December 21, 2016 to stockholders of record as of December 14, 2016 and provides a current annualized yield of 16.0%.
Sale of chemical tanker
On October 4, 2016, Navios Acquisition sold the Nave Universe, a 2013-built, chemical tanker of 45,513 dwt to an unaffiliated third party for a sale price net of commissions of $36.4 million. Part of the net proceeds from the sale of the vessel amounting to $16.4 million were used to fully repay the outstanding amount of its credit facility.
Time Charter Coverage and profit sharing
Navios Acquisition currently owns 37 vessels, of which eight are VLCCs, 26 are product tankers and three are chemical tankers which include the Nave Constellation, a 2013-built chemical tanker of 45,281 dwt that Navios Acquisition has agreed to sell following the completion of its chartering commitments, expected during the fourth quarter of 2016.
As of November 8, 2016, Navios Acquisition had contracted 99.7% and 60.4% of its available days on a charter-out basis for 2016 and 2017, respectively, expecting to generate revenues of approximately $270.1 million and $123.6 million, respectively. The average contractual daily charter-out rate for the fleet is expected to be $20,574 and $20,356 for 2016 and 2017, respectively.
During the three month period and the nine month period ended September 30, 2016, Navios Acquisition recognized $0.3 million and $7.7 million, respectively, under its profit sharing arrangements.
Loan to affiliate
On September 19, 2016, Navios Acquisition entered into a $70.0 million secured loan facility with Navios Maritime Holdings Inc. (“Navios Holdings”). The loan facility is secured by all of Navios Holdings' interest in Navios Acquisition and 78.5% of Navios Holdings’ interest in Navios South American Logistics, Inc. (“Navios Logistics”) representing a majority of the shares outstanding of Navios Logistics. In addition, the loan facility provides for an arrangement fee of $0.7 million, is available for up to five drawings and has a fixed interest rate of 8.75% compounded semi-annually with a maturity date of November 15, 2018. As of September 30, 2016, $50.0 million was drawn under this loan facility.
Purchase option extended for three VLCCs
In connection with the IPO of Navios Maritime Midstream Partners L.P. (“Navios Midstream”), Navios Acquisition granted options to Navios Midstream, exercisable until November 18, 2016, to purchase seven VLCCs (two of which, the Nave Celeste and the C. Dream, were sold to Navios Midstream in June 2015) from Navios Acquisition at fair market value. In October 2016, Navios Acquisition extended the options of three of the five remaining VLCCs, the Nave Buena Suerte, the Nave Neutrino and the Nave Electron, for an additional two-year period expiring on November 18, 2018. The purchase options pursuant to the extended period do not include any backstop commitments from Navios Acquisition.
FINANCIAL HIGHLIGHTS
For the following results and the selected financial data presented herein, Navios Acquisition has compiled its consolidated statement of income for the three months and nine months ended September 30, 2016 and 2015. The quarterly information for 2016 and 2015 was derived from the unaudited condensed consolidated financial statements for the respective periods.
Full report
About Navios Acquisition
Navios Acquisition (NYSE:NNA) is an owner and operator of tanker vessels focusing on the transportation of petroleum products (clean and dirty) and bulk liquid chemicals.
Navios Maritime Acquisition Corporation press release