Navios Maritime Acquisition Reports above Market Earnings

NYSE-listed owner and operator of tankers Navios Maritime Acquisition has seen its net income for the third quarter of 2016 drop to USD 8.8 million from a net income of USD 23.2 million reported in the same period a year earlier.

For the nine-month period ended September 30, the company’s net income stood at USD 44.8 million, down from USD 69.6 million seen in the first nine months of 2015.

“Our chartering policy of seeking long-term charters provided above market earnings during the third quarter, a period during which spot charter rates were correcting,” Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition, said.

Navios Acquisition’s average charter rate for its fleet, excluding its chemical tankers, was about 54% higher than the market average.

“Our results speak to the strength of our business model, particularly when coupled with low operating costs which are fixed through mid-2018 at rates about 11% below industry average,” Frangou added.

As of November 8, 2016, Navios Acquisition had contracted 99.7% and 60.4% of its available days on a charter-out basis for 2016 and 2017, respectively, expecting to generate revenues of around USD 270.1 million and USD 123.6 million, respectively. The average contractual daily charter-out rate for the fleet is expected to be USD 20,574 and USD 20,356 for 2016 and 2017, respectively.

Following the quarter end, Navios Acquisition has sold its 2013-built chemical tanker Nave Universe for a price of USD 36.4 million. Part of the net proceeds from the sale of the vessel amounting to USD 16.4 million were used to fully repay the outstanding amount of its credit facility.

The company currently owns 37 vessels, of which eight are VLCCs, 26 are product tankers and three are chemical tankers which include the Nave Constellation, a 2013-built chemical tanker of 45,281 dwt that Navios Acquisition has agreed to sell following the completion of its chartering commitments, expected during the fourth quarter of 2016.