Struggling Korean Duo Drags Navios Partners to Loss

Image Courtesy: Navios

Greek owner and operator of container and dry bulk vessels Navios Maritime Partners L.P. saw a net loss of USD 33.86 million due to struggles of two top South Korean container shipping companies. 

The company’s net income for the three months ended September 2016 was affected by a USD 19.4 million loss on the disposal of the Hyundai Merchant Marine (HMM) shares and a USD 20.5 million loss from the non-cash accelerated amortization of the intangible assets relating to the two vessels chartered out to bankrupt Hanjin Shipping.

Following Hanjin Shipping’s filing for receivership in August 2016, Navios Partners had two Capesize vessels chartered to Hanjin at a net rate of USD 29,356 per day until December 2020. In September, both vessels were redelivered to Navios Partners’ commercial management and were rechartered to third parties. Navios is closely monitoring the developments and is proceeding with claims for the lost revenues, the company said.

Navios Partners’ profit in the third quarter of 2015 amounted to USD 11.76 million.

In addition, the company recorded an 11.8 percent decrease in its revenue for the third quarter of 2016, which went down to USD 50.3 million from USD 57.1 million seen in the same period last year. Navios Partners’ revenue dropped mainly due to decrease in Time Charter Equivalent (TCE) rate.

In October 2016, Navios Partners agreed to acquire a 2004 built Capesize vessel for a total cash consideration of USD 15.1 million, paying a deposit of 10 percent in November 2016. The vessel is expected to be delivered in the fourth quarter of 2016, Navios Partners said.

Looking at the nine-month results, Navios Partners’ net loss was USD 50.46 million, compared to a net income of USD 33.99 million recorded in the first three quarters of 2015.

The company said that net income for the nine months ended September 30, 2016, was negatively affected by the accounting effect of USD 17.2 million impairment loss on the sale of the vessel MSC Cristina, the loss on the disposal of HMM shares and the loss related to two vessels.

Additionally, the company’s revenue for the first nine months of this year amounted to USD 140.85 million, against USD 170.36 million seen in the same period last year.

“Since the beginning of 2016, we have repaid almost USD 107 million of debt and have net debt to book capitalization of 42.9 percent. In addition, we have no significant debt maturities until 2018. Under our current cost structure and with current spot market rates, we expect to generate about USD 21 million in free cash flow for the remainder of 2016 and about USD 84 million in free cash flow for 2017,” Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, said.

Share this article

Follow World Maritime News

In Depth>

Events>

<< May 2017 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

CWC World LNG & Gas Series: Americas Summit

Now in its 15th year, the CWC World LNG & Gas Series: Americas Summit is the longest running LNG event in the Americas region.

Bringing together the key players in the LNG & gas value chain in both the Americas region and globally, this is the perfect place to make new contacts, do deals and get essential updates on the market.

This year we return to Houston, TX once again on 20-23 June 2017 – the heart of the energy industry, making it easier than ever to access they key players in your business.

More info

read more >

Nor-Shipping 2017

Nor-Shipping is the leading maritime event week. Their top-quality exhibition, high-level conferences and prime networking opportunities…

read more >

2ND ANNUAL PORTS AND TERMINALS INSURANCE SEMINAR

DETAILED GUIDANCE ON HOW THE INSURANCE MARKET IS CHANGING, HOW RISKS ARE ASSESSED AND WHAT…

read more >

2ND ANNUAL ADVANCED CHARTERING MASTERCLASS

The Advanced Chartering Masterclass will focus on the particularly difficult issues in charterparty agreements and our experts will help you find solutions…

read more >