Navios Holdings Remains in Red

Greek shipping company Navios Maritime Holdings suffered a net loss of USD 37.3 million in the second quarter of this year, widened from a net loss of USD 26.4 million posted in the same period a year earlier.

However, during the second quarter of this year, the company managed to cut its net loss from a loss of USD 48.7 million seen in the first quarter of 2017.

Revenue for the quarter rose to USD 118.6 million from USD 105.7 million recorded in 2Q 2016. Additionally, adjusted EBITDA increased to USD 31.3 million from USD 31.1 million reported in the respective quarter of 2016.

“We are delighted to report revenue and Adjusted EBITDA of USD 118.6 million and USD 31.3 million, respectively, for the second quarter of 2017. The dry bulk market continues to improve, and this improvement is being reflected in our financial performance. Compared to the second quarter of 2016, our Adjusted EBITDA from core shipping operations has increased by more than 30%. While the BDI has recovered significantly from the 2016 historical low, the BDI still must appreciate by more than 80% to reach the twenty-year average,” Angeliki Frangou, Chairman and Chief Executive Officer, commented.

During the second quarter of 2017, Vale International S.A. commenced using Navios Logistics’ newly constructed iron ore terminal.

In February, a New York arbitration tribunal ruled in favor of Navios regarding the dispute with Vale. The dispute was related to the termination date of a contract of affreightment. In line with the ruling, Vale has been ordered to pay Navios Logistics USD 21.5 million, compensating for all unpaid invoices, late payment of invoices, and legal fees incurred.

“I am also pleased to update you on the status of the iron ore transshipment facility built by Navios Logistics. During the second quarter, Vale unloaded approximately 33 thousand metric tons of ore to create a bed for the stockpile area and transshipped about 41 thousand metric tons of iron ore, generating approximately USD 0.8 million of revenue,” Frangou said.

“Vale now has a stockpile of about 160 thousand metric tons of ore, and we are expecting transshipments to continue ad hoc in the third quarter. Beginning in the fourth quarter of this year, Vale’s minimum transshipment obligation under the “take or pay” agreement commences, and as a result, we can reasonably expect revenue of about USD 10.3 million for the fourth quarter of 2017,” Frangou further said.

In June, Navios Containers closed its private placement of 10,057,645 shares at a subscription price of USD 5 per share, resulting in gross proceeds of USD 50.3 million. Navios Holdings invested USD 5 million and received 9.9% of the equity of Navios Containers. It also received warrants, with a five-year term, for 1.7% of the equity.

In July and June, Navios Holdings completed the sale of two Handymax vessels, the Navios Horizon and the Navios Ionian. Both the Navios Horizon and the Navios Ionian served as collateral for the company’s 7.375% First Priority Ship Mortgage Notes due in 2022 and were replaced by Navios Galileo, a 2006-built Panamax vessel.

Navios Holdings controls a fleet of 64 operating vessels totaling 6.6 million dwt, of which 38 are owned and 26 are chartered-in under long-term charters.

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