August 14, 2007
Navios secures long term charters, orders capesizes
Piraeus headquartered Navios Maritime Holdings Inc. (NYSE: NM), says that it has secured eight long-term time charter contracts with an average charter period of 5.125 years and average charter hire of $24,338.
The charters of five panamax and three ultra-handymax vessels are to Cargill, Mitsui O.S.K. Lines and Rio Tinto.
"The favorable drybulk market and Navios's brand name have converged to create an environment where Navios has been able to secure long-term charters at favorable rates with creditworthy parties," said Ms. Angeliki Frangou, Chairman and CEO of Navios. "These eight new time charters represent, in the aggregate, 41 years of employment and approximately $361.0 million contracted revenue. Importantly, this long-term coverage provides us with secure cash flow and significant structural flexibility as Navios evolves its business model."
As a result of these charters, Navios has extended the coverage of its core fleet to 99.0% for 2007, 88.9% for 2008, 49.6% for 2009 and 29% for 2010.
Navios also announced today that it has agreed to purchase two new Capesize vessels to be built by Daewoo Shipbuilding & Marine Engineering Company Ltd. in South Korea. Each 180,000 dwt vessel will cost $120.0 million. Delivery is scheduled in June 2009 and September 2009. To date, Navios has placed $48.0 million on deposit for these vessels, with the $192.0 million balance due upon delivery.
Navios also announced that it has entered into conditional agreements for the purchase of two new Capesize vessels. Each 172,000 dwt vessel will cost $110 million. Delivery is scheduled in the fourth quarter of 2009.
"As we continue to build long-term, secure cash flow, Navios has a margin of safety in entering into these purchase agreements for the Capesize vessels. Also, the drybulk market enables us currently to consider chartering these vessels with creditworthy parties for lengthy periods," said Ms. Frangou.