• Revenue: $19.8 million in Q1
• Net cash from operating activities: $22.2 million in Q1
• Adjusted EBITDA: $13.7 million in Q1
• Operating Surplus: $7.8 million in Q1
• Fleet Renewal
- 11% reduction in average age of the fleet
• Quarterly Cash Distribution of $0.125 per unit
Monaco - May 03, 2018
Navios Maritime Midstream Partners L.P. (“Navios Midstream”) (NYSE:NAP), an owner and operator of tanker vessels, reported its financial results today for the first quarter of 2018.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios Midstream, stated, “We are pleased to report the results for the first quarter of 2018, in which we had $13.7 million of adjusted EBITDA and reported $2.9 million of adjusted net income. We also announced a distribution of $0.125 per unit, representing an annualized yield of about 11%.
Angeliki Frangou continued, “Our new distribution policy allows us to redeploy cash flow to renew our fleet at a time when assets are attractively priced, without having to rely on the equity capital markets and while also maintaining a healthy balance sheet. In the first quarter of 2018, we reduced the average age of our fleet by 11%, while maintaining conservative leverage, with debt to book capitalization of 42.3% at the end of the quarter. We also have no significant debt maturities until 2020 or any committed growth capex.”
Fleet Renewal and Backstop
Navios Midstream acquired the Nave Galactic a 2009-built VLCC, from Navios Maritime Acquisition Corporation ("Navios Acquisition") for $44.5 million. Navios Midstream sold the Shinyo Kannika to an unrelated party for $17.0 million.
The acquisition of the Nave Galactic, a nine-year old vessel, and the sale of the Shinyo Kannika, a 17-year old vessel, reduced the average age of the fleet by 11%. Navios Midstream will continue to refresh its fleet, thereby seeking to revitalize its cash flow generating ability.
Navios Acquisition’s charter rate backstop has been extended to the Nave Galactic. This charter rate backstop was previously for the Shinyo Kannika and under the backstop, Navios Acquisition will pay Navios Midstream any shortfall between (a) $38,025 per day and (b) the average charter rate for each calendar year through February 2019.
The Nave Galactic substituted for the Shinyo Kannika under the Term Loan B.
The Board of Directors of Navios Midstream declared a cash distribution for the first quarter of 2018 of $0.125 per unit. The cash distribution is payable on May 11, 2018 to unitholders of record as of May 9, 2018.
Navios Midstream’s ability to make distributions to its unitholders depends on the performance of its subsidiaries and their ability to distribute funds to it. The ability of Navios Midstream’s subsidiaries to make distributions to it may be restricted by, among other things, the provisions of existing and future indebtedness, market conditions, applicable partnership and limited liability company laws and other laws and regulations.
Time charter coverage
Navios Midstream has entered into charter-out agreements for its vessels, with a remaining average term of 3.1 years, which are expected to provide a stable base of revenue and distributable cash flow. Navios Midstream has currently contracted out 100.0% of its available days for 2018 and 40.8% for 2019 expecting to generate revenues, including the backstop commitment provided by Navios Maritime Acquisition Corporation, of approximately $84.8 million and $40.8 million for 2018 and 2019, respectively. The average expected daily charter-out rate for the fleet is $39,443 and $45,613 for 2018 and 2019, respectively.
Navios Maritime Partners L.P. press release