Navios Midstream’s 1Q Profit Cut
Image Courtesy: Navios Maritime AcquisitionMonaco-based owner and operator of tankers Navios Maritime Midstream Partners recorded a net income of USD 4.5 million in the first quarter of this year, down by nearly a half from USD 7.5 million posted in the same period of 2016.
As disclosed, the decrease in net income was due to a decrease in the company’s EBITDA and an increase in direct vessel expenses.
During the quarter, EBITDA went down to USD 14.7 million from USD 17.7 million in the same quarter of 2016.
Revenue in the three-month period decreased to USD 21.1 million, compared to USD 24.1 million seen in the same quarter last year.
Time Charter Equivalent (TCE) rate was USD 38,547 during the quarter, against USD 43,476 in the three month period ended March 31, 2016. The drop in the TCE was mainly attributable to the decrease in the market rates during the first quarter of this year.
As disclosed, Navios Midstream has secured long-term charter-out agreements for its vessels, with a remaining average term of 4.1 years. The company has currently contracted out 100% of its available days for 2017 and 2018 expecting to generate revenues, including the backstop commitment provided by Navios Maritime Acquisition Corporation.
“Investor sentiment in the MLP sector has materially improved since early 2016. However, we have been experiencing uncertainty regarding the potential oversupply of VLCCs. We are being patient and cautiously reviewing market opportunities. We believe that our patience and prudence will be rewarded,” Angeliki Frangou, Chairman and Chief Executive Officer of Navios Midstream, commented.
Currently, Navios Midstream owns six VLCC vessels. In addition, it has options to acquire up to three VLCC from Navios Acquisition.
