Navios Partners Suffers Net Loss in Q1

Navios LumenNavios Lumen bulk carrier. Source: Flickr - under the CC BY 2.0 license; Image by: Kees Torn

Navios Maritime Partners, an owner and operator of dry cargo vessels, ended the first quarter of this year with a net loss.

The company reported a net loss of USD 9.5 million in Q1 2019, compared to a net income of USD 5.5 million seen in the corresponding period a year earlier.

As explained, net results in Q1 2019 were negatively affected by a USD 7.3 million impairment loss on the sale of the Navios Galaxy I.

Time charter and voyage revenues for the three-month period ended March 31, 2019, decreased by 11.8% to USD 46.8 million, as compared to USD 53.1 million for the same period in 2018.

The decrease in time charter and voyage revenues were attributed to the drop in revenue due to the sales of the YM Unity and YM Utmost in July 2018 and the Navios Felicity and the Navios Libra II in December 2018.

In addition, revenues were impacted by the decrease in the time charter equivalent (TCE) rate to USD 13,209 per day in Q1 2019 from USD 16,108 per day in Q1 2018.

“Our results were particularly strong given the weak market backdrop. Charter rates in the drybulk sector were adversely affected by January’s tragic dam collapse in Brazil, which removed a significant amount of iron ore from the longest trading route to China,” Angeliki Frangou, Navios Maritime Partners’ Chairman and CEO, commented.

“Despite this challenging environment, NMM earned a TCE rate of USD 13,209 per day for its fleet in the first quarter. Also, we have seen material rate improvement since Q1. The current spot rate for capesize vessels of USD 11,182 has increased about 90% from the average spot rate for the months of February and March,” Frangou continued.

On April 5, 2019, Navios Partners completed a USD 20 million, ten-year sale and leaseback transaction with unrelated third parties, for a 2009-built Capesize vessel.

On April 15, the company drew USD 31.4 million under a new commercial bank facility to refinance two Capesize vessels.

Moreover, the company sold the Navios Galaxy for USD 6 million and released it from the Term Loan B collateral package. This was followed by the release of one Ultra-Handymax vessel from the Term Loan B collateral package on May 3.

As a result, Navios Partners prepaid USD 73.5 million to the Term Loan B in order to release five vessels from the collateral package.

Navios Partners has currently contracted out 84.8% of its available days for 2019, 36.2% for 2020 and 23.4% for 2021.

At the end of first quarter of 2019, Navios Partners operated a fleet of 37 vessels.

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