Navios Maritime Holdings Inc., reported its financial results for the first quarter ended March 31, 2023. Navios Holdings owns (i) a controlling equity stake in Navios South American Logistics Inc. (“Navios Logistics”), one of the largest infrastructure and logistics companies in the Hidrovia region of South America and (ii) an interest in Navios Maritime Partners L.P. (“Navios Partners”) (NYSE:NMM), a United States publicly listed shipping company that owns and operates dry cargo and tanker vessels.
Angeliki Frangou, Chairwoman and Chief Executive Officer, stated, “I am pleased with the results for the first quarter of 2023, in which we reported Net Income and EBITDA of $14.5 million and $40.5 million, respectively.”
Angeliki Frangou, continued, “Navios Holdings’ primary focus is on its controlling interest in Navios South American Logistics, a logistics and infrastructure provider in the Hidrovia region of South America. With global macro conditions supporting growth in the Hidrovia region, we are seeking to maximize the return on our unique infrastructure assets by adapting to changing conditions and offering innovative logistics solutions to existing and new clients.”
HIGHLIGHTS
Navios Logistics
Navios Logistics’ EBITDA increased by approximately 9% to $26.0 million in the three month period ended March 31, 2023, as compared to $23.9 million in the same period in 2022. Iron ore port transhipments for the three month period ended March 31, 2023 increased to 828 thousand tons, compared to 41 thousand tons for the same period in 2022. In iron ore transportation, Navios Logistics has fixed six dry barge convoys under period contracts, for durations up to December 2024, which are expected to generate revenues of $27.0 million. Fleet utilization in cabotage vessels increased by 20% to 84% in the three month period ended March 31, 2023, as compared to the same period in 2022.
Discontinued Operations
In September 2022, the sale of our 36-vessel drybulk fleet (the “Transaction”) was completed. Following the closing of the Transaction, the results of the dry-bulk vessel operations are reported as discontinued operations for all periods presented.
Non-GAAP Measures
EBITDA attributable to Navios Holdings’ common stockholders and EBITDA of Navios Logistics (on a stand-alone basis) are non-U.S. GAAP financial measures and should not be used in isolation or as substitute for results calculated in accordance with U.S. GAAP.
See Exhibit I under the heading, “Disclosure of Non-GAAP Financial Measures,” for a discussion of Navios Holdings’ consolidated EBITDA and EBITDA of Navios Logistics (on a stand-alone basis) and a reconciliation of such measures to net income/(loss), the most comparable measure calculated under U.S. GAAP.
Earnings Highlights
First Quarter 2023 and 2022 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):
The first quarter 2023 and 2022 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.
(1) Net Loss and Basic Loss per share attributable to Navios Holdings’ common stockholders for the three month period ended March 31, 2022 include a $24.0 million upfront fee in the form of a convertible debenture that was drawn in January 2022 (also included in Net Loss attributable to Navios Holdings’ common stockholders and Basic Loss per share attributable to Navios Holdings’ common stockholders from continuing operations).
Revenue from continuing operations was $65.4 million for the three month period ended March 31, 2023, as compared to $59.2 million for the same period in 2022. The increase was mainly attributable to (i) a $3.0 million increase in revenue from the Barge Business, mainly attributable to the commencement of fixed time charter contracts for iron ore transportation; (ii) a $1.8 million increase in revenue from the port terminal business, mainly attributable to higher tariffs and volumes transhipped at the Iron Ore Port Terminal, partially offset by a decrease in revenues from the Grain Port Terminal due to lower grain throughput related to Uruguayan exports; (iii) a $1.2 million increase in sales of products attributable to the sale of fuel products from our bunkering services in the port of Nueva Palmira; and (iv) a $0.3 million increase in revenue from the Cabotage Business.
Net Income attributable to Navios Holdings’ common stockholders from continuing operations was $14.5 million for the three month period ended March 31, 2023, as compared to a $15.4 million net loss for the same period in 2022. This increase in net income from continuing operations was mainly due to (i) a $24.0 million upfront fee incurred in January 2022, in the form of a convertible debenture; (ii) a $7.2 million increase in EBITDA as discussed below; and (iii) a $0.2 million decrease in depreciation and amortization. This overall increase of approximately $31.4 million was partially mitigated by (i) a $0.7 million increase in interest expense and finance cost, net; (ii) a $0.5 million increase in in amortization of deferred drydock and special survey costs; and (iii) a $0.3 million increase in income tax expense. Net Income attributable to Navios Holdings’ common stockholders from discontinued operations was $10.4 million for the three month period ended March 31, 2022.
Net Income of Navios Logistics, on a standalone, basis was $1.1 million for the three month period ended March 31, 2023, as compared to $0.4 million net loss for the same period in 2022.
EBITDA of Navios Holdings from continuing operations for the three month period ended March 31, 2023 increased by $7.2 million to $40.5 million, as compared to $33.3 million for the same period in 2022. The increase in EBITDA from continuing operations was primarily due to (i) a $6.3 million increase in revenue attributable to Navios Logistics; and (ii) a $6.3 million increase in equity in net earnings from affiliate companies. This overall increase of approximately $12.5 million was partially mitigated by (i) a $1.6 million increase in other expense, net; (ii) a $1.4 million increase in time charter, voyage and logistics business expenses; (iii) a $1.4 million increase in general and administrative expenses (excluding stock-based compensation expenses); (iv) a $0.5 million increase in net income attributable to noncontrolling interest; and (v) a $0.4 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items). EBITDA of Navios Holdings from discontinued operations was $40.5 million for the three month period ended March 31, 2022.
EBITDA of Navios Logistics, on a standalone basis, was $26.0 million for the three month period ended March 31, 2023, as compared to $23.9 million for the same period in 2022.