Navios Maritime Holdings Inc., a global seaborne shipping and logistics company, yesterday reported financial results for the second quarter and six month period ended June 30, 2020.
Angeliki Frangou, Chairman and Chief Executive Officer, stated, “The pandemic has greatly affected businesses, countries, and people all over the world, but the Navios family perseveres. We take great pride in adapting to this ever-changing environment while providing essential services to the global community. During the second quarter of 2020, Navios Holdings reported revenue of $97.1 million, Adjusted EBITDA of $27.2 million and a Time Charter Equivalent of $7,827 net per day. Year-to-Date 2020, the capesize 5TC daily rate is averaging around $10,600 versus the 2019 daily average of $18,000. Rates have been recovering over the past couple of months as countries emerge from quarantine with the current capesize 5TC rate around $20,000 per day.”
HIGHLIGHTS – RECENT DEVELOPMENTS
Liquidation of Navios Europe (II) Inc. (“Navios Europe II”)
On June 29, 2020, following the liquidation of Navios Europe II, Navios Holdings received $7.9 million cash and acquired two unencumbered Panamax dry bulk vessels, with their associated working capital.
Navios Logistics 2025 Senior Secured Notes
On July 8, 2020, Navios Logistics and its wholly-owned subsidiary Navios Logistics Finance (US) Inc. (“Logistics Finance” and, together with Navios Logistics, the “Logistics Co-Issuers”) issued $500.0 million in aggregate principal amount of Senior Secured Notes due on July 1, 2025 (the “2025 Senior Secured Notes”), at a fixed rate of 10.75%. The net proceeds from the offering of the Senior Secured Notes were used to satisfy and discharge the indenture governing the Logistics Co-Issuers’ outstanding 7.25% Senior Notes due 2022, to repay all amounts outstanding under the Logistics Co-Issuers’ Term Loan B Facility and to pay certain fees and expenses related to the offering, with the balance to be used for general corporate purposes.
NSM Loan
In June 2020, the Company entered into a secured loan agreement with Navios Shipmanagement Holdings Corporation, a wholly owned subsidiary of N Shipmanagement Acquisition Corp. (collectively “NSM”) for a loan of up to $50.0 million to be used for general corporate purposes. In the second quarter of 2020, the Company drew $31.5 million and in the third quarter of 2020, the Company drew the remaining $18.5 million.
Fleet
In August 2020, the Company sold to an unrelated third party the Navios Northern Star, a 2005-built Panamax vessel of 75,395 dwt, for a sale price of $7.0 million.
In June 2020, the Company agreed to sell to an unrelated third party the Navios Amitie, a 2005-built Panamax vessel of 75,395 dwt, for a sale price of $7.1 million. The sale is expected to be completed within Q3 2020.
Fleet statistics
Navios Holdings controls a fleet of 52 vessels totaling 5.7 million dwt, of which 35 are owned (including five bareboat-in vessels and one Panamax vessel agreed to be sold) and 17 are chartered-in under long-term charters (collectively, the “Core Fleet”). The fleet consists of 17 Capesize, 28 Panamax, five Ultra-Handymax and two Handysize vessels, with an average age of 7.7 years.
Navios Holdings has currently chartered-out 84.7% of available days for the remaining six months of 2020. Of these available days, 48.7% are chartered-out on fixed rate and 36.0% are chartered-out on index. The average contracted daily charter-in rate for the long-term charter-in vessels for the remaining six months of 2020 is $12,416 per day.
The above figures do not include the fleet of Navios South American Logistics Inc. (“Navios Logistics”) and vessels servicing contracts of affreightment.
Exhibit II provides certain details of the Core Fleet of Navios Holdings. It does not include the fleet of Navios Logistics.
Non-GAAP Measures
EBITDA, Adjusted EBITDA, Adjusted Net Loss attributable to Navios Holdings’ common stockholders and Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per share are non-U.S. GAAP financial measures and should not be used in isolation or as substitution for Navios Holdings’ results calculated in accordance with U.S. GAAP.
See Exhibit I under the heading, “Disclosure of Non-GAAP Financial Measures,” for a discussion of EBITDA, Adjusted EBITDA, Adjusted Net Loss attributable to Navios Holdings’ common stockholders and Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per share of Navios Holdings (including Navios Logistics), and EBITDA of Navios Logistics (on a stand-alone basis) and a reconciliation of such measures to the most comparable measures calculated under U.S. GAAP.
As of November 30, 2018, Navios Holdings obtained control over Navios Maritime Containers L.P. (“Navios Containers”) and consequently consolidated Navios Containers from that date onwards. Following the sale of Navios Containers general partnership interest on August 30, 2019, Navios Holdings deconsolidated Navios Containers from that date onwards. The results of operations of Navios Containers for the three and six month periods ended June 30, 2019 consolidated under Navios Holdings have been reported as discontinued operations.
