Navios Maritime Holdings Inc., reported its financial results for the second quarter and six months ended June 30, 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), an international shipping company, listed on the New York Stock Exchange, 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 second quarter of 2023 during which we reported revenue of approximately $82 million and net income of $15.5 million.”

Angeliki Frangou, continued, “We believe that the global conditions support continued growth in the Hidrovia region. As the world’s requirements evolve, whether for raw materials for green technology, old world requirements for mineral commodities or dynamically changing grain trade patterns, our region will be providing solutions. We intend to play our part by maximizing the return from our existing assets through innovative logistics solutions that leverage our unique infrastructure assets.”

HIGHLIGHTS

Navios Logistics

Navios Logistics generated revenue of $81.9 million during the three-month period ended June 30, 2023 compared to $69.2 million in the respective period of 2022. For the six-month period ended June 30, 2023 Navios Logistics generated revenue of $147.3 million compared to $128.3 million in the respective period of 2022.

Iron ore port transshipments for the six-month period ended June 30, 2023 increased to 2.0 million tons, compared to 308 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 to 83% in the six-month period ended June 30, 2023, a 9% increase as compared to the same period in 2022. For the second half of 2023, Navios Logistics has fixed 90% of the available days of the cabotage vessels, expecting to generate a time charter equivalent of $27,143 per day per vessel.

In August 2023, Navios Logistics completed the sale of a bunker vessel, the He Man H, to an unrelated third party.

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’ and Navios Logistics’ EBITDA, and a reconciliation of such measures to net income, the most comparable measure calculated under U.S. GAAP.

Earnings Highlights

Second Quarter 2023 and 2022 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The second quarter 2023 and 2022 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.

Revenue from continuing operations was $81.9 million for the three-month period ended June 30, 2023, as compared to $69.2 million for the same period in 2022. The increase was mainly attributable to: (i) a $7.3 million increase in revenue from the Barge Business, mainly attributable to time charter-out contracts for iron ore transportation; and (ii) $6.7 million attributable to the sale of fuel products in connection with the bunkering services in the port of Nueva Palmira. The overall increase was partially mitigated by: (i) a $1.1 million decrease in Port Terminal Business, mainly coming from the Grain Port Terminal due to lower grain throughput related to a decline in Uruguayan exports, partially mitigated by higher tariffs and volumes transshipped at the Iron Ore Port Terminal; and (ii) a $0.1 million decrease in revenue from the Cabotage Business.

Net Income attributable to Navios Holdings’ common stockholders from continuing operations was $15.5 million for the three month period ended June 30, 2023, as compared to a $16.0 million for the same period in 2022. This decrease in net income from continuing operations was mainly due to (i) a $0.8 million increase in income tax expense, (ii) a $0.5 million increase in amortization of deferred drydock and special survey costs; and (iii) a $0.2 million increase in interest expense and finance cost, net; This overall decrease was partially mitigated by: (i) a $0.7 million increase in EBITDA as discussed below; and (ii) a $0.2 million decrease in depreciation and amortization. Net Income attributable to Navios Holdings’ common stockholders from discontinued operations was $28.9 million for the three-month period ended June 30, 2022.

Net Income of Navios Logistics, on a standalone basis, was $4.3 million for the three-month period ended June 30, 2023 as compared to $6.4 million for the same period in 2022.

EBITDA from continuing operations for the three-month period ended June 30, 2023 increased by $0.7 million to $42.3 million, as compared to $41.6 million for the same period in 2022. The increase in EBITDA was primarily due to: (i) a $12.7 million increase in revenue; (ii) a $2.1 million increase in equity in net earnings from affiliate companies; and (iii) a $0.8 million decrease in net income attributable to noncontrolling interest. This overall increase was partially mitigated by: (i) a $5.2 million increase in time charter, voyage and logistics business expenses; (ii) a $3.0 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); (iii) a $2.8 million increase in other expenses, net; (iv) a $2.2 million increase in general and administrative expenses (excluding stock-based compensation expenses); and (v) a $1.7 million impairment loss incurred as a result of the sale of He Man H during the three month period ended June 30, 2023. EBITDA of Navios Holdings from discontinued operations was $56.9 million for the three-month period ended June 30, 2022.

EBITDA of Navios Logistics, on a standalone basis, was $29.9 million for the three-month period ended June 30, 2023 (which includes $1.7 million in impairment losses incurred) as compared to $31.4 million for the same period in 2022.

First Half 2023 and 2022 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The information for the six month period ended June 30, 2023 and 2022 presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.

Revenue from continuing operations was $147.3 million for the six month period ended June 30, 2023, as compared to $128.3 million for the same period in 2022. The increase was mainly attributable to: (i) a $10.3 million increase in revenue from the Barge Business, mainly attributable to time charter-out contracts for iron ore transportation; (ii) $7.9 million attributable to the sale of fuel products in connection with the bunkering services in the port of Nueva Palmira; (iii) a $0.7 million increase in Port Terminal Business due to higher tariffs and volumes transshipped at the Iron Ore Port Terminal partially mitigated by the lower grain throughput in the Grain Port Terminal related to a decline in Uruguayan exports; and (iv) a $0.1 million increase in revenue from the Cabotage Business.

Net Income attributable to Navios Holdings’ common stockholders from continuing operations was $29.9 million for the six month period ended June 30, 2023, as compared to $0.6 million 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 $7.9 million increase in EBITDA as discussed below; and (iii) a $0.4 million decrease in depreciation and amortization. This overall increase was partially mitigated by: (i) a $1.1 million increase in income tax expense; (ii) a $1.0 million increase in interest expense and finance cost, net; and (iii) a $0.9 million increase in amortization of deferred drydock and special survey costs. Net Income attributable to Navios Holdings’ common stockholders from discontinued operations was $39.4 million for the six-month period ended June 30, 2022.

Net Income of Navios Logistics, on a standalone basis, was $5.4 million for the six-month period ended June 30, 2023 as compared to $6.1 million for the same period in 2022.

EBITDA from continuing operations for the six month period ended June 30, 2023 increased by $7.9 million to $82.8 million, as compared to $74.9 million for the same period in 2022. The increase in EBITDA was primarily due to: (i) a $19.0 million increase in revenue; (ii) a $8.3 million increase in equity in net earnings from affiliate companies; and (iii) a $0.2 million decrease in net income attributable to noncontrolling interest. This overall increase was partially mitigated by: (i) a $6.6 million increase in time charter, voyage and logistics business expenses; (ii) a $4.4 million increase in other expenses, net; (iii) a $3.6 million increase in general and administrative expenses (excluding stock-based compensation expenses); (iv) a $3.4 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); and (v) a $1.7 million impairment loss incurred as a result of the sale of He Man H during the six-month period ended June 30, 2023. EBITDA of Navios Holdings from discontinued operations was $97.4 million for the six month period ended June 30, 2022.

EBITDA of Navios Logistics, on a standalone basis, was $55.9 million for the six month period ended June 30, 2023 (which includes $1.7 million in impairment losses incurred) as compared to $55.3 million for the same period in 2022.