Home / Shipping News / Hellenic Shipping News / Navios Maritime Partners L.P. Reports Revenue of $190.5 million for the year; $49.7 million in Q4

Navios Maritime Partners L.P. Reports Revenue of $190.5 million for the year; $49.7 million in Q4

Navios Maritime Partners L.P., an international owner and operator of container and dry bulk vessels, reported its financial results for the fourth quarter and year ended December 31, 2016.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Partners stated, “I am pleased with the results for 2016, a year of many challenges. For the full year, Navios Partners reported revenue of $190.5 million and EBITDA of $76.9 million. For the fourth quarter, Navios Partners reported revenue of $49.7 million and EBITDA of $23.6 million.”

Angeliki Frangou continued, “We actively managed our liquidity in 2016, generating about $151 million from the sale of vessels and securities. We also reduced long-term debt by almost $178 million and increased the collateral value of the Term Loan B by about $100 million. Overall, we are positioned to take advantage of a recovery in the dry sector.”

Debt Repayments – Deleveraging

In January 2017, following the completion of the sale of the MSC Cristina, Navios Partners repaid approximately $100.0 million of bank debt. Proforma for these repayments, net debt/book capitalization for December 31, 2016, has decreased to 36.5%. In addition, during 2016, the Company reduced its net debt by $77.8 million.

Completion of Sale of the MSC Cristina

In January 2017, the Company completed the sale of the MSC Cristina, a 2011 South Korean-built Container vessel of 13,100 TEU. The vessel was sold to an unrelated third party for a total net sale price of $125.0 million. Approximately $100.0 million of the sale proceeds were used to repay bank debt.

Sale of the Navios Apollon

In January 2017, Navios Partners agreed to sell the Navios Apollon, a 2000 Ultra-Handymax vessel of 52,073 dwt to an unrelated third party, for a total net sale price of $4.8 million. Delivery is expected by April 2017.

Long-Term Cash Flow

Navios Partners has entered into medium to long-term time charter-out agreements for its vessels with a remaining average term of 2.8 years. Navios Partners has currently contracted out 72.6% of its available days for 2017, 38.2% for 2018 and 20.1% for 2019, including index-linked charters, respectively, expecting to generate revenues of approximately $111.9 million, $82.4 million and $54.7 million, respectively. The average expected daily charter-out rate for the fleet is $19,240, $26,690 and $24,972 for 2017, 2018 and 2019, respectively.

EARNINGS HIGHLIGHTS

For the following results and the selected financial data presented herein, Navios Partners has compiled consolidated statements of operations for the three month periods and the years ended December 31, 2016 and 2015. The quarterly 2016 and 2015 information was derived from the unaudited condensed consolidated financial statements for the respective periods. Adjusted EBITDA, Adjusted Earnings per Common Unit, Adjusted Net Income and Operating Surplus are non-GAAP financial measures and should not be used in isolation or substitution for Navios Partners’ results.

Three month periods ended December 31, 2016 and 2015

Time charter and voyage revenues for the three month period ended December 31, 2016 decreased by $3.6 million or 6.8% to $49.7 million, as compared to $53.3 million for the same period in 2015. The decrease was mainly attributable to the decrease in TCE to $16,954 per day for the three month period ended December 31, 2016, from $18,223 per day for the three month period ended December 31, 2015. The decrease in time charter and voyage revenues was primarily due to the decline in the freight market during 2016, as compared to the same period in 2015.

EBITDA for the three months ended December 31, 2016 was negatively affected by the accounting effect of a $10.0 million impairment loss on the sale of the Navios Apollon. Excluding this item, Adjusted EBITDA decreased by $2.1 million to $33.6 million for the three month period ended December 31, 2016, as compared to $35.7 million for the same period in 2015. The decrease in Adjusted EBITDA was primarily due to a: (i) $3.6 million decrease in revenue; (ii) $2.7 million increase in general and administrative expenses; and (iii) $0.4 million increase in management fees. The above decrease was partially mitigated by a: (i) $0.1 million decrease in time and voyage charter expenses; (ii) $1.7 million increase in other income; and (iii) $2.9 million decrease in other expenses.

The reserve for estimated maintenance and replacement capital expenditures for the three month periods ended December 31, 2016 and 2015 were $3.0 million and $3.6 million, respectively (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).

Navios Partners generated an operating surplus for the three month period ended December 31, 2016 of $24.0 million, compared to $25.2 million for the three month period ended December 31, 2015. Operating Surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership’s ability to make quarterly cash distributions (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).

Net income for the three months ended December 31, 2016 was negatively affected by the accounting effect of a $10.0 million impairment loss for the Navios Apollon. Excluding this item, Adjusted net income for the three months ended December 31, 2016 amounted to $7.9 million compared to $7.8 million for the three months ended December 31, 2015. The increase in Adjusted net income of $0.1 million was due to a: (i) $2.2 million decrease in depreciation and amortization expense; (ii) $0.1 million decrease in interest expenses and finance cost, net; and (iii) $0.1 million increase in interest income. The above increase was partially mitigated by a: (i) $2.1 million decrease in adjusted EBITDA; and (ii) $0.2 million increase in direct vessel expenses, comprising of the amortization of dry dock and special survey costs.

Year ended December 31, 2016 and 2015

Time charter and voyage revenues for the year ended December 31, 2016 decreased by $33.2 million or 14.8% to $190.5 million, as compared to $223.7 million for the same period in 2015. The decrease was mainly attributable to the decrease in TCE to $16,364 per day for the year ended December 31, 2016, from $19,739 per day for the year ended December 31, 2015. The decrease in time charter and voyage revenues was primarily due to the decline in the freight market during 2016, as compared to the same period in 2015, and was partially mitigated by an increase in revenue due to the delivery of the MSC Cristina in the second quarter of 2015. As a result of the vessel acquisition in April 2015, available days of the fleet increased to 11,296 days for the year ended December 31, 2016, as compared to 11,051 days for the year ended December 31, 2015.

EBITDA for the year ended December 31, 2016 was negatively affected by the accounting effect of a $27.2 million impairment loss on the sale of the MSC Cristina and the Navios Apollon and a $19.4 million loss on the sale of the HMM securities. Excluding these items, Adjusted EBITDA decreased by $29.7 million to $123.5 million for the year ended December 31, 2016, as compared to $153.3 million for the same period in 2015. The decrease in Adjusted EBITDA was primarily due to a: (i) $33.2 million decrease in revenue; (ii) $2.7 million increase in management fees due to the increased number of vessels and the increased daily management fee; (iii) $4.4 million increase in general and administrative expenses; and (iv) $0.3 million increase in other expenses. The above decrease was partially mitigated by a: (i) $1.5 million decrease in time charter and voyage expenses; and (ii) $9.3 million increase in other income.

The reserve for estimated maintenance and replacement capital expenditures for the years ended December 31, 2016 and 2015 were $11.9 million and $13.8 million, respectively (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).

Navios Partners generated an operating surplus for the year ended December 31, 2016 of $85.0 million, compared to $112.7 million for the year ended December 31, 2015. Operating Surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership’s ability to make quarterly cash distributions (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).

Net income for the year ended December 31, 2016 was negatively affected by the accounting effect of a $27.2 million impairment loss on the sale of the MSC Cristina and the Navios Apollon, a $19.4 million loss on the sale of the HMM securities and a $20.5 million loss from the non-cash accelerated amortization of the intangible assets relating to two vessels. Excluding these items, Adjusted net income for the year ended December 31, 2016 amounted to $14.6 million compared to $41.8 million for the year ended December 31, 2015. The decrease in Adjusted net income of $27.2 million was due to a: (i) $29.7 million decrease in adjusted EBITDA; and (ii) $2.3 million increase in direct vessel expenses, comprising of the amortization of dry dock and special survey costs. The above decrease was partially mitigated by a: (i) $4.0 million decrease in depreciation and amortization; (ii) $0.5 decrease in interest expense and finance cost, net and (iii) $0.3 million increase in interest income.

Full Report

Source: Navios Maritime Partners L.P.

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