Navios Holdings Widens Quarterly Net Loss

Greek dry bulk shipping company Navios Maritime Holdings Inc. has seen its net loss for the third quarter of 2016 widen to USD 27.5 million from a net loss of USD 22 million reported in the same period in 2015 as the company continues to “emphasize cost management.”

The company’s revenue for the three-month period ended September 30 was at USD 113.1 million, down from USD 130.9 million recorded in the same quarter a year earlier.

“We emphasize cost management, and Navios Holding’s operating cost (G&A plus Opex) is one of the lowest in the industry when compared to our publicly listed shipping peers. We have engaged in a number of initiatives that reduce our 2017 daily cash breakeven by an expected USD 1,274 or 10.4%,” Angeliki Frangou, Chairman and Chief Executive Officer, said.

“These initiatives include repurchasing about USD 60 million in face value of our unsecured bonds, reducing the average cost of our charter-in fleet and reducing amortization payments on our commercial bank debt. We have also repurchased USD 61 million or 36% of the preferred shares outstanding,” she added.

On the revenue side, Frangou said that Navios Holdings outperformed the spot market through the third quarter by 50%, which added over USD 40 million in charter revenue.

Revenue from dry bulk vessel operations for the third quarter of 2016 was USD 49.7 million as compared to USD 63.6 million for the same period during 2015. The decrease was mainly attributable to a drop in available days of the fleet by 1,030 days, mainly due to a decrease in short-term charter-in and long-term charter-in fleet available days, as well as the decline in the freight market during 2016, as compared to the same period in 2015.

As of November 14, Navios Holdings has chartered-out 93.2% and 35.2% of available days for the remaining three months of 2016 and for 2017, which are expected to generate USD 29.9 million and USD 18.6 million in base revenue, respectively.

The average daily charter-out base rate for the core fleet is estimated at USD 7,829 and USD 9,341 for the remaining three months of 2016 and for 2017. The average daily charter-in rate for the active long-term charter-in vessels for the remaining three months of 2016 is estimated at USD 12,187.

Navios Holdings controls a fleet of 66 vessels totaling 6.7 million dwt, of which 40 are owned and 26 are chartered-in under long-term charters. The company operates 59 vessels totaling 6 million dwt.