Revenue
- $390.4 million for 9M 2018
- $141.5 million for Q3 2018
Cash from operating activities
- $39.6 millionfor 9M 2018
- $10.1 million for Q3 2018
Adjusted EBITDA
- $134.1 millionfor 9M 2018
- $62.8 million for Q3 2018
Fleet renewal (2017-2018YTD)
- 17% decrease in average age
- 8% increase in capacity
In a major development, Navios Maritime Holdings Inc. announced that their chartering initiative has leveraged good market rates with 110% index. The global vertically integrated seaborne shipping and logistics company declared this in their 9 months long third quarter financial results report which ended on September 30, 2018.
Q3 Financial Results
Angeliki Frangou, Chairman and Chief Executive Officer, stated, “I am pleased with the results of the third quarter of 2018, for which we reported revenue of $141.5 million and Adjusted EBITDA of $62.8 million. We continue to see the positive effects of healthier charter markets on our business. Rates for dry bulk vessels improved materially, with the TCE rate of our fleet for the third quarter of 2018 about 50% higher than the third quarter of 2017. This increased our adjusted EBITDA from core shipping operations by almost 250% in the third quarter of 2018 compared to the third quarter of 2017.”
Angeliki Frangou continued, “We have leveraged the increase in market rates through our chartering initiative that has 26 vessels chartered out on index linked agreements with an average charter rate equal to 110% of the respective index. The charters provide Navios multiple options for fixing the charter rate for all or a portion of the remaining charter period.”
HIGHLIGHTS – RECENT DEVELOPMENTS
- Bond Repurchase
In September 2018, Navios Holdings repurchased a total of $35.7 million in par value of its 7.375% First Priority Ship Mortgage Notes due 2022.
Fleet Update
- Renewal and Expansion
In November 2018, Navios Primavera, a 2007-built, 53,464 dwt vessel, was delivered to the owned fleet. Navios Holdings in August 2018, exercised the option to acquire the above chartered-in vessel, for a purchase price of $10.5 million.
- Sale of vessels
In November 2018, Navios Holdings agreed to sell to an unrelated third party the Navios Magellan, a 2000-built Panamax vessel of 74,333 dwt, for a total net sale price of $7.0 million, to be paid in cash.
Following fleet activities during the period 2017-2018YTD, the average age of Navios Holdings’ fleet has decreased by 17%, basis fully delivered fleet, and the capacity of the fleet has increased by 8%.
- Capturing market recovery
Navios Holdings controls a fleet of 70 vessels totaling 7.1 million dwt, of which 36 are owned and 34 are chartered-in under long-term charters (collectively, the “Core Fleet”). The fleet consists of 20 Capesize, 32 Panamax, 16 Ultra-Handymax and two Handysize vessels, with an average age of 8.0 years, basis fully delivered fleet.
Navios Holdings 5,457 available days for the remaining three months of 2018 and 20,428 total available days for 2019 (excluding the fleet of Navios Logistics and vessels servicing contracts of affreightment).
The average TCE rate we achieved for the third quarter of 2018 was $14,210 per day, approximately 50% higher than the same quarter of last year. For the nine month period ended September 30, 2018, we achieved a TCE of $12,368 per day, approximately 40% higher than the same period in 2017.
As of November 7, 2018, Navios Holdings has chartered-out 93.7% of available days for the remaining three months of 2018, out of which 64.0% on fixed rate and 29.7% on index or profit sharing, and 42.8% of available days for 2019, out of which 8.3% on fixed rate and 34.5% on index or profit sharing. The above figures do not include the fleet of Navios Logistics and vessels servicing contracts of affreightment.
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Source: Navios Maritime Holdings
