Navios Maritime Partners reported a $33.8m loss for the third quarter amid ongoing rate weakness and a big-bath loss on its exposure to bankrupt container line Hanjin.
The New York-listed company received shares in Hanjin as part of the company's restructuring. But the sale of the shares resulted in a $19.4m loss in the quarter. The loss also reflects non-cash impairment charges related to the value of two ships that Navios had on charter to Hanjin.
Navios Partners had two Capesize vessels chartered to Hanjin at a net rate of $29,356 per day until December 2020.
Excluding the Hanjin loss, the company said net income for the quarter would have been $6.1m. Those adjusted results would have meant earnings per share of $0.07, which was better than analysts' estimates of a $0.01 per share profit.
Timecharter and voyage revenues were down 12% from a year ago to $50.3m. The company reported average timecharter equivalent earnings of $16,968 per day compared to $20,305 per day.
The company said it reduced one of its commercial bank facilities by $30.2m through prepayment of $28m in cash and achieving a $2.2m benefit to nominal value in the prepayment. The company faces another balloon payment of $31.9m in the fourth quarter of next year.
The company also had to provide $50.5m in additional collateral on its Term B loan through $37m in value of six drybulk vessels transferred from commercial bank facilities and $13.5m in cash collateral.
