Navios Maritime Holdings is to assume a 10.3% piece of spinoff Navios Maritime Partners when the dust clears on its pending acquisition of yet another Angeliki Frangou-led company, tanker owner Navios Maritime Acquisition.
The stake was estimated to be worth $95.8m, Navios Holdings said on Thursday as it reported a solid second-quarter profit on the strength of a strong dry bulk market.
New York-listed Navios Holdings reported net income of $24.9m for the quarter, its second straight quarterly profit after eking out about a $200,000 surplus in the first three months of the year.
The figure worked out to $1.80 per share, reversing a loss of $35.3m of $2.83 per share in the second quarter of 2020.
Navios Holdings is lightly covered by equity analysts and there are no benchmark numbers for expected earnings.
Revenue was $143.6m, up from $97.1m in the second quarter of 2020.
“The dry bulk market is strong, supported by rates across different vessel types. Capesize rates are around $50,000 and panamax and supramax about $35,000 per day,” said Frangou, the company's chairwoman and chief executive.
“We are optimistic that healthy rates will remain in the near term as demand for dry bulk commodities is robust while the logistics chain continues to be challenged.”
Navios Holdings also recapped efforts to reduce what had been $896m in debt coming due next March, while at the same time offering no assurances that those efforts – which include vessel sales and refinancings – will be successful.
Its obligations include $477m in 7.375% first priority mortgage notes coming due in January 2022 and its $305m in 11.25% senior secured notes due in August 2022.
As previously disclosed, Navios Holdings said it had redeemed $100m of the 11.25% notes at par within the quarter on the strength of a vessel sale to Navios Partners and a $75.3m loan from a private Frangou company.
“Although Navios Holdings is currently attempting to address these upcoming maturities and create additional liquidity to fund working capital requirements through the sale of assets and refinancing plans, there can be no assurance it will be successful in such attempts, or that any such attempts will be consummated on terms satisfactory to us, or at all,” the company said.
Upon Navios Partners' all-stock takeover of Navios Acquisition, which included a bailout of $397.5m in ship mortgage bonds due in November, there already has been speculation that Navios Holdings could be next on the takeover list.
