Navios Holdings: Frangou ‘pleased’ with Q4 results; optimistic about demand for bulkers

Navios_Frangou

Navios Maritime Holdings Inc., a global seaborne shipping and logistics company, reported financial results for the fourth quarter and year ended December 31, 2020.

Angeliki Frangou, Chairman and Chief Executive Officer, stated, “I am pleased with the results for the fourth quarter and full year of 2020. For the full year of 2020, Navios Holdings reported revenue of $416.7 million and adjusted EBITDA of $153.4 million. For the fourth quarter, Navios Holdings reported revenue of $102.4 million and adjusted EBITDA of $37.6 million.”

Angeliki Frangou continued, “Fiscal stimulus and other policy measures have propelled global economic recovery into 2021. The IMF expects global GDP to grow by 6.0% in 2021, the highest GDP growth in the past 50 years. Mass inoculation programs are underway, facilitating a return to normalcy. Consequently, we are optimistic about demand for drybulk vessels in 2021 and are positioned to capture market upside with 51.7% of our available days exposed to the spot market.”

HIGHLIGHTS – RECENT DEVELOPMENTS

Navios Partners’ Merger

On March 31, 2021, Navios Maritime Containers L.P. (“Navios Containers”) and Navios Maritime Partners L.P. (“Navios Partners”) completed their previously announced merger (the “Navios Partners’ Merger”). Under the terms of the Navios Partners’ Merger, Navios Partners acquired all of the publicly held common units of Navios Containers through the issuance of approximately 8,232,789 newly issued common units of Navios Partners at an exchange ratio of 0.39 units of Navios Partners for each Navios Containers common unit. As of March 31, 2021, Navios Holdings had 12.6% ownership interest in Navios Partners.

Vessel Sales

In March 2021, the Company agreed to sell to an unrelated third party the Navios Serenity, a 2011 built Handysize vessel of 34,690 dwt, for a net sale price of $10.4 million. The vessel is expected to be delivered to the buyers in the second quarter of 2021.

In March 2021, the Company completed the sale to a related party of the Navios Centaurus, a 2012 built Panamax vessel of 81,472 dwt, and the Navios Avior, a 2012 built Panamax vessel of 81,355 dwt, for a sale price of $39.3 million, including working capital adjustments.

In February 2021, the Company completed the sale to an unrelated third party of the Navios Astra, a 2006-built Ultra-Handymax vessel of 53,468 dwt, for a net sale price of $6.4 million.

Debt Reduction

During the first quarter of 2021, the Company repaid $36.2 million of outstanding bank facilities.

Bond Maturities

Our 7.375% First Priority Ship Mortgage Notes mature in January 2022 (the “2022 Notes”). Our 11.25% Senior Secured Notes mature in August 2022 (the “2022 Senior Secured Notes”). Under the terms of the 2022 Senior Secured Notes, Navios Holdings has an obligation to make a springing maturity offer in September 2021 to repurchase those notes at par unless certain conditions relating to the refinancing of our 2022 Notes are met. In October 2020, Navios Holdings entered into a supplemental indenture (the “Sixth Supplemental Indenture”) which, among other things, eliminates Navios Holdings’ obligation to make a springing maturity offer subject to the occurrence of a Qualified IPO (as defined in the Sixth Supplemental Indenture) of Navios South American Logistics Inc. (“Navios Logistics”). There can be no assurance a Qualified IPO will occur prior to the springing maturity date, or at all.

Although Navios Holdings is currently attempting to address these upcoming maturities and create additional liquidity to fund working capital requirements through the sale of assets and refinancing plans, there can be no assurance it will be successful in such attempts or that any such attempts will be consummated on terms satisfactory to us, or at all.

Fleet Statistics

Navios Holdings controls a fleet of 45 vessels (including one vessel agreed to be sold) totaling 5.0 million dwt, of which 29 are owned (including five bareboat-in vessels) and 16 are chartered-in under long-term charters (collectively, the “Core Fleet”). The fleet consists of 16 Capesize, 23 Panamax, four Ultra-Handymax and two Handysize vessels, with an average age of 8.2 years.

Navios Holdings has currently chartered-out 81.6% of available days of 2021. Of 2021 available days, 48.3% are chartered-out on fixed rate and 33.3% are chartered-out on index.

The average contracted daily charter-in rate for the long-term charter-in vessels (excluding our Kleimar controlled fleet, which is mainly used for servicing contracts of affreightment) for 2021 is $15,560 per day. The above figures do not include the fleet of Navios Logistics.

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