Vessel Sale Drives Navios Midstream into Loss

Written by Maritime First

…As SWS Inks USD 294 Mn Worth LoI for Five Bulkers***

Owner and operator of tanker vessels Navios Maritime Midstream Partners ended the first quarter of 2018 in loss as a result of a USD 32.4 million loss on sale of vessel.

The company’s net loss for the period ended March 31, 2018 amounted to USD 29.6 million, compared to a net income of USD 4.5 million reported in the same period a year earlier.

Revenue for the three months decreased to USD 19.8 million from USD 21.1 million reported a year before, mainly due to less available days as a result of the sale of the Shinyo Kannika and drydock of one of the company’s vessels.

Time Charter Equivalent (TCE) reached USD 39,139 in the first quarter, slightly more compared to USD 38,547 for the three month period ended March 31, 2017.

During the quarter Navios Midstream acquired the 2009-built VLCC Nave Galactic from Navios Acquisition for USD 44.5 million. The company also sold the Shinyo Kannika to an unrelated party for USD 17 million.

The changes reduced the average age of the fleet by 11%, Navios Midstream said, adding that it “will continue to refresh its fleet, thereby seeking to revitalize its cash flow generating ability.”

“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,” Angeliki Frangou, Chairman and Chief Executive Officer of Navios Midstream, said.

In the meantime, chinese shipbuilder Shanghai Waigaoqiao Shipbuilding (SWS) has reportedly signed a Letter of Intent (LoI) with two South Korean shipping companies for the construction of up to five bulkers.

Namely, Sinokor Merchant Marine and Polaris Shipping have been linked to an order for four Newcastlemaxes and one Capesize bulker respectively, data from Asiasis shows.

Under the terms specified in the contract, the delivery of the ships has been set for 2020.

The total value of the LoI is said to be USD 294 million.

South Korean shipbuilder Hyundai Heavy Industries has been the preferred choice for both shipowners so far, as Sinokor has six very large crude carriers (VLCC) on order at HHI, while Polaris has as much as 18 Capesize newbuildings taking shape at the yard, data from VesselsValue shows.

Back in February, SWS, a wholly-owned subsidiary of China CSSC Holding, snapped up an order for four additional 210,000 dwt bulk carriers from the New York-based ship management firm Foremost Group.

The order was described as the first contract secured by the shipbuilder this year.



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