Market Conditions Affect Navios Midstream’s Results

Monaco-based owner and operator of tankers Navios Maritime Midstream Partners has seen its earnings drop in the second quarter of 2017 due to prevailing market conditions.

Revenue for the three-month period decreased to USD 18.5 million, as compared to USD 22.7 million reported for the same quarter in 2016, mainly due to the lack of profit share as a result of the market conditions and certain unscheduled off-hires among which the prolonged drydock of one of the company’s vessels.

Time Charter Equivalent (TCE) was USD 39,342 for the second quarter, down from USD 45,783 witnessed in the three-month period ended June 30, 2016.

The company’s net income for the quarter also dropped to USD 1.96 million from USD 5.8 million reported a year earlier.

Revenue for the first six months of 2017 decreased to USD 39.6 million, as compared to USD 46.8 million for the same period in 2016, while TCE stood at USD 38,914, down from USD 44,565 recorded in the first six months of 2016.

For the six-month period ended June 30, 2017, the company said that its net income dropped to USD 6.4 million from USD 13.3 million seen in the first half of 2016.

Navios Midstream added that it entered into long-term charter-out agreements for its vessels, with a remaining average term of 3.8 years, which are expected to provide “a stable base of revenue and distributable cash flow.”

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, of around USD 83.3 million and USD 86.6 million for 2017 and 2018, respectively.

The average expected daily charter-out rate for the fleet is USD 39,522 and USD 39,559 for 2017 and 2018.