Market Rates Put Pressure on Navios Acquisition
Tanker owner and operator Navios Maritime Acquisition Corporation reported a 21.5% decrease in its revenue in the second quarter of 2017, mainly driven by a drop in the market rates.
The company’s revenue for the period stood at USD 58.5 million, as compared to USD 74.5 million seen in the same period of 2016. Net loss for the second quarter was at USD 64.4 million, against a net income of USD 12.1 million reported in the corresponding quarter a year earlier.
The time charter equivalent (TCE) rate was down to USD 17,491 for the three month period ended June 30, 2017, from USD 21,380 reported in the same period of 2016.
“The recent volatility in oil price and the continued uncertainty concerning commodity pricing have affected oil transportation. However, our chartering strategy of seeking long-term employment has insulated us somewhat,” Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition, said.
“We have earned above-market charter rates when spot rates were contracting and period employment was unavailable,” Frangou added.
Revenue for the six month period ended June 30, 2017 decreased by 20.6% to USD 122.9 million, as compared to USD 154.9 million for the same period of 2016. The company said that its net loss for the period reached USD 58.8 million, against a net income of USD 35.9 million reported in the first six months of 2016.
TCE rate decreased to USD 18,475 for the six month period ended June 30, 2017, from USD 22,055 for the six month period ended June 30, 2016.