Navios Partners Delivers Profit in Q3

Greek owner and operator of dry bulk and container vessels Navios Maritime Partners closed the third quarter of this year with a net income of USD 9.2 million, recovering from a net loss of USD 33.9 million reported in the same period a year earlier. 

EBITDA for the three-month period was USD 41 million, against an EBITDA of USD 13.4 million seen in Q3 2016.

In addition, revenue for the quarter ended September 30, 2017, stood at USD 60 million, compared to a revenue USD 50.3 million posted in the same period of 2016. Time charter revenues rose by 0.7% to USD 50.7 million in Q3 2017 from USD 50.3 million recorded in Q3 2016. As explained, this was due to the increase in revenue following the acquisition of seven vessels in 2017 and the increase in available days of the fleet.

During the quarter, Navios Partners bought and took delivery of three dry bulk vessels. The ships in question are Navios Symphony, Navios Aster and Christine B.

In August, the company completed the issuance of USD 53 million add-on to its existing Term Loan B facility. Navios Partners used the net proceeds to partially finance the acquisition of three ships.

Also during the third quarter, Navios Partners agreed to extend the duration of its existing management agreement with Navios Shipmanagement, a subsidiary of Navios Maritime Holdings, until December 31, 2022, and fix the rate for shipmanagement services of its owned fleet through December 31, 2019.

On August 29, 2017, 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. Navios Partners invested USD 10 million and received 2 million shares. As of September 30, 2017, Navios Partners held 8 million common shares and received 39.9% of the equity of Navios Containers.

“Navios Partners is expected to generate significant cash flow, as it has no material near term debt maturities and low leverage. Consequently, we were able to renew our drybulk fleet, acquiring seven vessels and selling one vessel. This increased our fleet by 33%, on a deadweight ton basis, and reduced the average age of our vessels by 9%,” Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners, commented.

Separately, Navios Maritime Holdings informed that the company and Navios Maritime Finance II priced USD 305 million of 11.25% Senior Secured Notes due 2022. The Notes will be secured by a first priority lien on the capital stock owned by certain of the subsidiary guarantors of Navios Holdings in each of Navios Maritime Partners, Navios GP, Navios Maritime Acquisition Corporation, Navios South American Logistics and Navios Maritime Containers Inc.

The net proceeds of the offering will be used to complete a cash tender offer for any and all of its outstanding 8 ¹⁄₈% Senior Notes due 2019 and to redeem any and all such notes that are not purchased in the tender offer after all conditions to the tender offer are satisfied or waived, with any remaining proceeds to be used for general corporate purposes, according to Navios Maritime Holdings.