Navios Holdings Reports Q1 Financial Results

Navios Holdings

Navios Maritime Holdings Inc., a global seaborne shipping and logistics company, reported financial results for the first quarter ended March 31, 2022.

Angeliki Frangou, Chairwoman and Chief Executive Officer, stated, “I am pleased with the results for the first quarter of 2022. In the first quarter of 2022, Navios Holdings reported revenue of $127.8 million and EBITDA of $73.8 million.”

Angeliki Frangou, continued, “The dry bulk market is healthy as evidenced by our charter rates for the first quarter of 2022, which are over 50% higher compared to the first quarter of 2021. There are, however, significant geopolitical headwinds, including the war in Ukraine, China’s zero-Covid policy and rising interest rates and inflation. So far, these events have impacted trade positively by creating new trade routes with longer ton miles. The situation remains fluid and we are closely monitoring developments.”

HIGHLIGHTS – RECENT DEVELOPMENTS

$664.3 million bond repayments YTD

In January 2022, the Company repaid $614.3 million of its 7.375% First Priority Ship Mortgage Notes (“Ship Mortgage Notes”).

Year-to-date, Navios Holdings has redeemed $50.0 million of its 11.25% Senior Secured Notes (“Senior Notes”). Following these redemptions, $105.0 million of Senior Notes remains outstanding. The Senior Notes mature in August 2022.

Sale and Leaseback Agreement

In March 2022, Navios Holdings entered into and drew a sale and leaseback agreement for $12.0 million to finance a dry-bulk vessel. $10.4 million of the net proceeds were used to prepay a portion of the outstanding amount of the Company’s HCOB bank facility.

Fleet Statistics

Navios Holdings controls a fleet of 36 vessels totaling 3.9 million dwt, of which 25 are owned (including five bareboat-in vessels) and 11 are chartered-in under long-term charters (collectively, the “Core Fleet”). The Core Fleet consists of 12 Capesize, 19 Panamax, four Ultra-Handymax and one Handysize vessels, with an average age of 9.4 years.

As of May 13, 2022, Navios Holdings has currently chartered-out 77.1% of available days for the remaining nine months of 2022. 44.3% of available days for the remaining nine months of 2022 are chartered-out on fixed rate and 32.8% are chartered-out on index.

The average contracted daily charter-in rate for the long-term charter-in vessels for the remaining nine months of 2022 is $15,774 per day.

The above figures do not include the fleet of Navios Logistics.

Exhibit II provides certain details of the Core Fleet of Navios Holdings. It does not include the fleet of Navios Logistics.

Navios Logistics

In April 2022, Vale S.A. (“Vale”) announced the sale of its iron ore, manganese ore and logistics assets in the Midwestern system to J&F Mineracao Ltda., an entity controlled by J&F Investimentos S.A. The sale includes the full assumption by the buyer of the take-or-pay logistics contracts, which remain subject to the consent of the applicable counterparties. The Vale port contract remains in full force and effect. Any change to the terms and conditions of the Vale port contract is subject to the prior approval of the Navios counterparty.

Revenue from the Dry Bulk Vessel Operations for the three month period ended March 31, 2022 increased by $4.9 million, or 7.7%, to $68.6 million, as compared to $63.7 million for the same period during 2021. The increase in dry bulk revenue was mainly attributable to the increase in the time charter and freight market during three month period ended March 31, 2022. The TCE per day increased by 51.1% to $21,767 per day in the three month period ended March 31, 2022, as compared to $14,404 per day in the same period of 2021. This overall increase was partially mitigated by 1,050 fewer available days as compared to 2021, mainly due to (i) a decrease in available days of owned and bareboat-in vessels by 578 days following the sale of seven of the Company’s vessels in 2021; and (ii) a decrease in charter-in vessels’ available days by 472 days due to the redelivery to owners of five charter-in vessels in 2021 and the acquisition of one charter-in vessel in 2021, which was then sold to a related party.

Revenue from the Logistics Business was $59.2 million for the three month period ended March 31, 2022, as compared to $53.2 million for the same period in 2021. The increase was mainly attributable to (i) a $4.5 million increase in revenue from the port terminal business, mainly due to higher volumes transshipped in the grain port terminal; (ii) a $2.0 million increase in revenue from the cabotage business, mainly due to higher CoA/Voyage revenues; and (iii) a $0.8 million increase in revenue from the barge business, mainly due to higher liquid cargo moved. The overall increase was partially mitigated by a $1.3 million decrease in sales of products due to the decrease in the Paraguayan liquid port’s volume of products sold.

Net Loss attributable to Navios Holdings’ common stockholders was $5.0 million for the three month period ended March 31, 2022, as compared to $0.2 million Net Income attributable to Navios Holdings’ common stockholders for the same period in 2021. Net Loss attributable to Navios Holdings’ common stockholders was affected by the issuance of the convertible debenture described in footnote 1 to the table above. Excluding these items, Adjusted Net Income attributable to Navios Holdings’ common stockholders for the three month period ended March 31, 2022 was $19.0 million, as compared to $5.2 million Adjusted Net Loss attributable to Navios Holdings’ common stockholders for the same period in 2021. This increase in Adjusted Net Income was mainly due to (i) a $24.6 million increase in Adjusted EBITDA as discussed in the paragraph below; (ii) a $1.9 million decrease in depreciation and amortization; and (iii) a $0.1 million decrease in stock-based compensation expense. This overall increase of approximately $26.6 million was partially mitigated by (i) a $1.4 million increase in interest expense and finance cost, net; (ii) a $0.8 million decrease in income tax benefit; and (iii) a $0.2 million increase in amortization of deferred drydock, special survey and other capitalized items.

Net Loss of Navios Logistics, on a standalone basis, was $0.4 million for the three month period ended March 31, 2022 as compared to $3.2 million net income for the same period in 2021.

Adjusted EBITDA of Navios Holdings for the three month period ended March 31, 2022 increased by $24.6 million to $73.8 million, as compared to $49.2 million for the same period in 2021. The increase in Adjusted EBITDA was primarily due to (i) a $10.8 million increase in revenue; (ii) a $8.8 million decrease in time charter, voyage and logistics business expenses; (iii) a $7.9 million increase in equity in net earnings from affiliate companies; (iv) a $1.3 million increase in net loss attributable to noncontrolling interest; and (v) a $0.1 million decrease in general and administrative expenses (excluding stock-based compensation expenses). This overall increase of approximately $29.0 million was partially mitigated by (i) a $2.3 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); (ii) a $2.0 million increase in other expense, net and (iii) a $0.1 million loss on bond extinguishment, net recorded in the three month period ended March 31, 2022.

EBITDA of Navios Logistics, on a standalone basis, was $23.9 million for the three month period ended March 31, 2022, as compared to $23.3 million for the same period in 2021.

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