Navios Containers Buys Another Ship, Reports Profit Growth

Monaco-based Navios Maritime Containers has decided to acquire a 2009-built vessel, continuing its boxship buying spree.

The company is to buy the 4,563 TEU containership for USD 13.9 million from an unnamed owner.

As informed, the vessel, scheduled for delivery in Q3/Q4 2018, is expected to generate approximately USD 2.1 million of EBITDA over the next twelve months.

Navios Containers intends to finance the acquisition with cash on its balance sheet and USD 9 million of additional bank debt on terms consistent with its existing credit facilities.

Navios Containers acquired four containerships since the end of the first quarter of 2018, increasing its total fleet size to 26 vessels with a total fleet capacity of 124,101 TEU. Fleet capacity has grown from 21 to 26 vessels since the end of 2017, representing a fleet capacity growth of 40% during the period.

The announcement on the most recent purchase comes on the back of the company’s financial results for the second quarter of this year which show that Navios Containers delivered net income of USD 4.5 million in Q2 2018, compared to USD 0.9 million reported in the corresponding period last year.

The USD 3.6 million increase in net income was mainly attributable to an increase in revenue of USD 28.4 million reflecting the growth in the number of vessels operating in the fleet during the period, the company said.

In addition, net income for the six months ended June 30, 2018, was USD 7.5 million, compared to USD 0.9 million seen in the first half of 2017.

The company previously agreed to buy five ships for a total purchase price of USD 246 million, including four 2011-built 10,000 TEU containerships from an unrelated third party and one 2006-built 6,800 TEU containership from Navios Partners. Navios Containers also acquired options to purchase an additional four containerships from Navios Partners for a purchase price of USD 36 million per vessel.

“All of the acquisitions are subject to certain conditions, and there can be no assurances that these acquisitions will occur in whole or in part. In addition, the company may be unable to secure financing for these acquisitions on terms satisfactory to us, or at all,” according to Navios Containers.

In May, the company entered into a USD 119 million sale and leaseback transaction with Minsheng Financial Leasing to refinance its outstanding credit facilities on 18 vessels maturing in the fourth quarter of 2019. One month later, Navios Containers completed the sale and leaseback of the first six vessels for approximately USD 37.5 million. In July, the company completed the sale and leaseback of two additional vessels for approximately USD 13 million.

Navios Containers expects to complete the sale and leaseback of the remaining ten vessels during the third quarter of 2018. Upon completion of the transaction, Navios will be obligated to make 60 monthly payments in respect of all 18 vessels of approximately USD 1.4 million each. Navios Containers has also an obligation to purchase the vessels at the end of the fifth year for USD 59.5 million.