Navios Acquisition Sees Lower Annual Profit

Image Courtesy: Navios Maritime Acquisition

Owner and operator of tanker vessels Navios Maritime Acquisition Corporation (Navios Acquisition) reported a full-year net income of USD 62.9 million, a drop of USD 26.8 million from a net income of USD 89.7 seen in 2015. 

The company’s net income went down due to lower EBITDA, higher interest expense and finance cost and a rise in direct vessel expenses.

Revenue for 2016 decreased by USD 23.2 million or 7.4% to USD 290.2 million, as compared to USD 313.4 million for 2015. The decrease was brought about by the sale of two very large crude carriers (VLCCs) in June 2015, one medium range 2 (MR2) product tanker in January 2016 and two chemical tankers in October and November 2016 as well as lower profit sharing by USD 24.5 million.

As explained by the company, the decrease was partially mitigated by the revenue growth following deliveries of four vessels during 2015. The time charter equivalent (TCE) rate decreased to USD 20,742 from USD 22,477 recorded in the previous year.

For the three-month period ended December 31, 2016, the company posted a net income of USD 18.1 million, against a net income of USD 20.1 million recorded in Q4, 2015. In addition, revenue for the fourth quarter of 2016 dropped by USD 9.4 million to USD 67.3 million, as compared to USD 76.7 million for the same period in 2015.

“Our chartering policy of seeking long-term charters provided us with superior returns at a time when favorable period charters were unavailable and spot rates were correcting. The strength of our chartering policy can be seen through our average 2016 charter rate for our fleet, which was about 11% higher than the market average rate,” Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition, stated.

During the first quarter of 2017, Navios Maritime Midstream Partners (Navios Midstream), entered into new charter deals for its three VLCCs. Navios Acquisition has agreed to provide backstop commitments for a two-year period at a net rate of USD 35,000 per day for the Nave Celeste, USD 38,400 per day for the Shinyo Ocean and USD 38,025 per day for the Shinyo Kannika.

As of February 3, 2017, Navios Acquisition had contracted 75.4% and 15.8% of its available days on a charter-out basis for 2017 and 2018, expecting to generate revenues of approximately USD 146.4 million and USD 21.3 million, respectively. The average daily charter-out rate for the fleet is expected to be USD 18,629 for 2017 and USD 17,202 for 2018.

Navios Acquisition currently owns 36 vessels, of which eight are VLCCs, 26 product tankers and two chemical tankers.

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