Navios Maritime Midstream posts 2Q profit

Navios-Maritime-Midstream-Partners

Navios Maritime Midstream Partners L.P., an owner and operator of tanker vessels, reported its financial results today for the second quarter and the six month period ended June 30, 2017.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Midstream, stated, “We are pleased to report $18.5 million of revenue and net income of $2.0 million for the second quarter of 2017. We also earned $12.4 million of EBITDA for the quarter and announced a distribution of $0.4225 per unit. Our quarterly dividend represents an annualized distribution of $1.69 per unit and a current yield of about 16%.”

RECENT DEVELOPMENTS

Cash Distribution

The Board of Directors of Navios Midstream declared a cash distribution for the second quarter of 2017 of $0.4225 per unit. The cash distribution is payable on August 11, 2017 to unitholders of record as of August 8, 2017.

Long–Term Cash Flow

Navios Midstream has entered into long-term charter-out agreements for its vessels, with a remaining average term of 3.8 years, which are expected to provide a stable base of revenue and distributable cash flow. Navios Midstream has currently contracted out 100% of its available days for 2017 and 2018 expecting to generate revenues, including the backstop commitment provided by Navios Maritime Acquisition Corporation, of approximately $83.3 million and $86.6 million for 2017 and 2018, respectively. The average expected daily charter-out rate for the fleet is $39,522 and $39,559 for 2017 and 2018, respectively.

Continuous Offering Program

Pursuant to the Continuous Offering Program in place, Navios Midstream issued 336,011 common units during the six month period ended June 30, 2017 and received net proceeds of approximately $4.0 million. Pursuant to the issuance of the common units, Navios Midstream issued 6,858 general partnership units to its general partner in order to maintain its 2.0% general partner interest. The net proceeds from the issuance of the general partnership units were $0.1 million.

FINANCIAL HIGHLIGHTS

For the following results and the selected financial data presented herein, Navios Midstream has compiled condensed consolidated statements of income for the three and six months ended June 30, 2017 and 2016. The information for the quarterly and six month periods ended June 30, 2017 and 2016 was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA and Operating Surplus are non-GAAP financial measures and should not be used in isolation or substitution for Navios Midstream’s results.

Three month periods ended June 30, 2017 and 2016

Revenue for the three month period ended June 30, 2017 decreased by $4.2 million to $18.5 million, as compared to $22.7 million for the same period in 2016, mainly due to the lack of profit share as a result of the prevailing market conditions and certain unscheduled off-hires among which the prolonged drydock of one of our vessels. Time Charter Equivalent (“TCE”) was $39,342 for the three month period ended June 30, 2017 and $45,783 for the three month period ended June 30, 2016.

EBITDA decreased by $4.0 million to $12.4 million for the three month period ended June 30, 2017, as compared to $16.4 million for the same period in 2016. The decrease in EBITDA was due to a $4.2 million decrease in revenue; partially mitigated by a: (i) $0.1 million decrease in time charter expenses; and (ii) $0.1 million decrease in general and administrative expenses.

The reserve for estimated maintenance and replacement capital expenditures for the three month periods ended June 30, 2017 and 2016 was $2.5 million and $3.6 million, respectively.

Navios Midstream generated an Operating Surplus for the three month period ended June 30, 2017 of $7.0 million. 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.

Net income for the three month period ended June 30, 2017 was $2.0 million compared to $5.9 million for the three month period ended June 30, 2016. The decrease in net income of $3.9 million was due to the $4.0 million decrease in EBITDA.

Earnings per common unit for the three month period ended June 30, 2017 were $0.10.

Six month periods ended June 30, 2017 and 2016

Revenue for the six month period ended June 30, 2017 decreased by $7.2 million to $39.6 million, as compared to $46.8 million for the same period in 2016, mainly due to the lack of profit share as a result of the prevailing market conditions and certain unscheduled off-hires among which the prolonged drydock of one of our vessels. TCE was $38,914 for the six month period ended June 30, 2017 and $44,565 for the six month period ended June 30, 2016.

EBITDA decreased by approximately $7.0 million to $27.1 million for the six month period ended June 30, 2017, as compared to $34.1 million for the same period in 2016. The decrease in EBITDA was due to a: (i) $7.2 million decrease in revenue; and (ii) $0.2 million increase in other expense. The above decrease was partially mitigated by a: (a) $0.2 million decrease in time charter expenses; (b) $0.2 million decrease in general and administrative expenses; and (c) $0.1 million decrease in management fees.

The reserve for estimated maintenance and replacement capital expenditures for the six month period ended June 30, 2017 and 2016 was $4.9 million and $7.2 million, respectively.

Navios Midstream generated an Operating Surplus for the six month period ended June 30, 2017 of $16.5 million. 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.

Net income for the six month period ended June 30, 2017 was $6.5 million compared to $13.4 million for the six month period ended June 30, 2016. The decrease of approximately $6.9 million in net income was due to the $7.0 million decrease in EBITDA.

Earnings per common unit for the six month period ended June 30, 2017 was $0.30.

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