Navios Maritime Partners reported fourth-quarter earnings that were better than analyst estimates.
The Angeliki Frangou-led company, which is a bulker and containership owning spinoff of Navios Maritime Holdings, also paid down a chunk of debt and chartered out ships at improved rates.
New York-listed Navios reported adjusted net income of $7.9m for the fourth quarter, compared to year-earlier results of $7.8m.
Above forecasts
Adjusted earnings per unit were $0.09 for the quarter, which was better than the average analyst estimate of $0.01 per unit. Time-charter revenue of $49.7m for the quarter was off from $53.3m reported in the year earlier quarter.
Navios shares responded positively, rising 14.1% to $2.02 per unit in early trading.
Adjusted earnings exclude a $10m impairment loss on the sale of the 52,000-dwt bulker Navios Apollon (built 2000), which was sold for $4.8m to an unidentified Chinese buyer.
MSC Cristina sale done
The Greek company also completed the January sale of the 13,000-teu containership MSC Cristina (built 2011) for $125m to another Chinese buyer.
Navios used $100m in proceeds from that sale to pay down long-term debt. It also paid down another $78m in debt last year. Total long-term debt stood at $449m as of the end of 2016.
"We actively managed our liquidity in 2016, generating about $151 million from the sale of vessels and securities," Frangou said of the results.
Debt reduction
"We also reduced long-term debt by almost $178m and increased the collateral value of the Term Loan B by about $100m," she said. "Overall, we are positioned to take advantage of a recovery in the dry sector."
Navios said it has period and time charters on its vessels for a remaining average term of 2.8 years.
It said it had 73% of available days contracted for this year, 38% for 2018, and 20% for 2019. It expects a daily charter-out rate of $19,240 for 2017, $26,690 for 2018 and $24,972 for 2019.
