Red ink first quarter for Navios Maritime Holdings

Angeliki Frangou, Chairman and CEO of Navios Maritime Holdings: In a recovering market, we are positioned to enjoy substantial free cash flow from an increase in charter rates"

MAY 24, 2017 — Navios Maritime Holdings (NYSE:NM) reported first quarter 2017 results that saw revenues drop to $95.3 million compared to $101.4 million in the corresponding 2016 quarter while losses grew to $48.7 million compared to last year’s same quarter net loss of $7.4 million (adjusted net loss for first quarter 2017 was $48.7 million compared to $29.6 million in the equivalent 2016 quarter.

All that red ink wasn’t much discussed by Chairman and CEO Angeliki Frangou in her comments on the quarter.

“I am pleased with our results for the first quarter, in which we recorded revenue of $95.3 million, EBITDA of $17.5 million and net cash from operating activities of $28.6 million,” she said. “We also ended the quarter with $138.2 million in cash, while having no committed growth capex or any significant debt maturities until 2019. In a recovering market, we are positioned to enjoy substantial free cash flow from an increase in charter rates.”

Noting that Navios Holdings directly controls 66 modern dry bulk vessels and manages almost 200 vessels in its broader fleet, she said that the fleet size provides purchasing power and cost savings opportunities.

“Our operating leverage allows our costs to be substantially below the average of the listed peers, savings that accrue directly to our stakeholders,” said Ms. Frangou. “The strength of Navios Holdings’ sponsorship allowed Navios Partners to grow significantly by raising $100 million in the first quarter and entering into an agreement to acquire the RMT fleet. In addition, it allowed Navios Containers to raise $75 million of gross equity proceeds in its initial capitalization. Navios Holdings also agreed to acquire control of the FSL Trust which owns 22 vessels (five containers and 17 tankers), subject to various conditions.”

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