Navios Midstream Secures VLCC Charter Deal

  • Business & Finance

Monaco-based tanker owner and operator Navios Maritime Midstream Partners has entered into a charter agreement for its 2003-built very large crude carrier (VLCC) Nave Celeste for a period of one year.

Featuring 298,717 dwt, the VLCC has been chartered out to an oil-major at USD 37,525 per day. The contract provides a minimum rate of USD 17,775 per day.

Additionally, Navios Midstream has placed its VLCCs the Shinyo Ocean and the Shinyo Kannika in a VLCC pool for a minimum period of three months.

Navios Acquisition has provided a backstop commitment at a rate of USD 38,400 net per day until January 2019 for the Shinyo Ocean and at a rate of USD 38,025 net per day until February 2019 for the Shinyo Kannika.

The company provided the fleet update as part of its financial results for the fourth quarter and year ended December 31, 2016.

Navios Midstream reported a net income of USD 24.9 million for 2016, compared to USD 27.1 million seen in the previous year. The decrease in net income was due to a rise in depreciation and amortization, in interest expenses and finance cost, and in direct vessel expenses. The revenue for the period was up to USD 91.8 million from USD 83.4 million seen in 2015.

The company’s net income for the fourth quarter of the year stood at USD 6 million, down from USD 9.1 million in the same quarter of 2015.

“Navios Midstream is a cash generating platform positioned to take advantage of market opportunity. On the revenue side, our fleet is 100% fixed through 2018. On the cost side, operating and related costs are fixed through 2018 as well. Further, we have no forward growth capex commitments, and we have no debt maturities until 2020,” Angeliki Frangou, Chairman and Chief Executive Officer of Navios Midstream, said.

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