Angeliki Franjou-led company sees higher revenue, beats estimates amid boost from spin-off Navios Containers.
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| Navios Happiness moving through the port of Hamburg in March 2015 Photo: Buonasera/Creative Commons |
Navios Maritime Partners returned to black during the third quarter, in part due to income from new spin-off Navios Maritime Containers.
New York-listed Navios Partners reported earnings of $9.2m during the third quarter, up from net loss of $33.9m in the same period last year.
Time charter and voyage revenue for Navios Partners, a spin-off of Navios Maritime Holdings, came in at $60m, up from $50.3m a year earlier.
Of that amount, $9.3m came from master limited partnership Navios Containers from 1 July to 29 August 2017. It was formed earlier this year with the acquisition of three capesize and two panamax bulkers and 14 container vessels from Rickmers Maritime Trust.
The spin-off had 512 available days during the period with time charter equivalent (TCE) amounting to $17,623 per day.
Revenue for Navios Partners for the period gained 0.7% to $50.7m from a year ago, primarily due to increase in revenue following the acquisition of seven vessels this year. The purchase resulted in available days for its fleet gaining to 3,178 days from 2,128 during the third quarter of 2016.
TCE fell to $15,588 per day from $16,968 per day a year earlier due to the sale of MS Cristina in January 2017.
Navios Partners' adjusted net income, which excludes a $4.1m gain in change of control from Navios Containers' 29 August deconsolidation, came in at $6.1m, even with adjusted net income of $6.1m a year earlier.
Navios Partners' adjusted earnings per share totaled $0.04, beating Street consensus of $0.01.
Navios Containers on 9 November 2017 raised $50m through private placement of 9.09 million shares at $5.50 per share This reduced Navios Partners' equity stake in Navios Containers to approximately 33.7%, down from 39.9%.
Navios Containers will use the proceeds to partially finance acquiring four 2008-built baby Panamax containerships for $96.8m. It also acquired two capesize vessels and one ultra-handymax vessel for a total of $70.9m during the quarter.
"Navios Partners is expected to generate significant cash flow, as it has no material near-term debt maturities and low leverage," chief executive Frangou said.
She said the purchases increased Navios Partners' fleet by 33% while lowering average vessel age by 9%.
source: www.tradewinds.com