Navios Maritime Holdings’ profit for the second quarter jumped 80% from a year ago, thanks mostly due to attaining higher rates in a better dry bulk market.
The company, which had been the owner of 36 bulkers before selling its fleet, posted a $44.9m profit for the quarter, up from $24.9m in earnings a year earlier.
Second-quarter revenue came in at $159m, up from $144m during the same period last year, in great part due to earning much higher time charter equivalent (TCE) rates.
New York-listed Navios Holdings posted $1.38 earnings per share for the quarter, falling below the year-ago EPS of $1.80.
The TCE per-day rate increased 25.1% from a year earlier to $26,984 per day in the second quarter, but these higher rates were offset by 641 fewer available days as compared to 2021 due to selling four ships and redelivering four charter-in vessels to owners in 2021.
Second-quarter revenue from the bulker segment increased 4.6% to $90m from a year ago, while revenue from its Navios South America Logistics business rose 20.1% to $69.2m, thanks to higher grain volumes from Uruguay.
Navios Logistics’ profit was $6.4m for the second quarter, up from $1.1m a year earlier.
Navios Holdings sold its entire fleet in July and September to spin-off Navios Maritime Partners for $835m to focus on its controlling interest in Navios South American Logistics, a logistics and infrastructure provider in South America.
Piraeus-headquartered Navios Holdings, which holds a 10.3% stake in Navios Partners, used the proceeds from that transaction to pay down $784m in debt.
“Navios Logistics owns, among other assets, the only dedicated iron ore port and the largest independent grain port in the Hidrovia region,” chief executive Angeliki Frangou said in a statement.
“The transshipment facilities are located at the mouth of the river, where water levels are unaffected by the droughts, within a tax-free zone in Uruguay.”
Profit for the first half of 2022 was $40m, up from $25.1m for the same period in 2021.
Revenue from the bulker segment rose 5.9% during the first six months of 2022 to $159m, as a result of achieving higher TCE rates.
TCE per day increased by 36.7% from a year earlier, bringing it to $24,425 per day, in the six-month period ended 30 June.
The better results were partially mitigated by 1,691 fewer available days as compared to 2021.
