Navios Containers Eyes More Acquisition Opportunities

Container shipping company Navios Maritime Containers ended its first full quarter of operation with a net income of USD 84 thousand as it continued with fleet expansion efforts.

The company’s net income for the period from its inception on April 28 to September 30, 2017 reached USD 965 thousand, while its revenue for the period stood at USD 17.8 million.

“We are pleased with our financial performance in our first full quarter of operation for which we reported adjusted EBITDA of USD 7 million and adjusted net income of USD 531 thousand,” Angeliki Frangou, Chairman and Chief Executive Officer, said.

“We believe the container market continues to offer attractive acquisition candidates. We are actively pursuing opportunities while this favorable market persists,” Frangou added.

Navios Containers continued to pursue fleet size expansion by executing Memorandums of Agreement in September and October 2017 to acquire two 2009-built 4,250 TEU containerships for a price of USD 19.8 million. The vessels were expected to be delivered to Navios Containers’ owned fleet in early November 2017.

The acquisition of these two ships is expected to be financed initially with cash on hand while Navios Containers explores potential debt financing on terms consistent with its existing credit facilities.

In late August, Navios Containers closed a private placement of 10 million shares at a subscription price of USD 5 per share, resulting in gross proceeds of USD 50 million, and earlier in 2017, the company entered into a loan facility with a commercial bank for an amount of USD 21 million to partially finance the acquisition of seven previously purchased containerships.

Navios Containers controls 16 vessels, totaling 65,600 TEU and with an average age of 9.7 years. Two of these vessels are expected to be delivered during the fourth quarter of 2017.

As of October 30, 2017, Navios Containers has chartered-out 89.3% and 25.7% of available days for 2017 and 2018, respectively, which are expected to generate revenue of $35.3 million and $36.2 million, respectively. The average expected daily charter-out rate for the fleet is $16,422 and $24,177 for 2017 and 2018, respectively.