Navios Maritime Partners unveiled $141m in new finance deals as the New York-listed shipowner reported an 84.7% surge in quarterly revenue that lifted its bottom line.
A day after announcing that it would swell its fleet further by buying 36 bulkers from parent company Naivos Maritime Holdings, the diversified shipowner said it signed two new credit facilities worth $86.2m in order to finance a pair of 5,300-teu container ship newbuildings.
The lender was identified only as a “European commercial bank”.
The loans, which mature seven years after drawdown, carry interest of 2% above the Secured Overnight Financing Rate.
Angeliki Frangou-led Navios Partners also said it signed another $55m credit facility with another commercial bank that will refinance existing loans on four ships, in addition to providing some cash for general corporate purposes.
That loan matures in the second quarter of 2027.
Navios Partners also reported second-quarter net income of more than $118m, up from $99.9m in the same period of last year.
Fuelling the earnings rise was top-line growth that saw revenue rise to $281m in the second quarter, up from $152m in the same period of last year.
Fleet and TCE growth
Piraeus-based Navios Partners, an owner of bulkers, tankers and container ships, tied the improvement to fleet growth and to an increase in time-charter equivalent (TCE) rates.
TCE rates jumped by 17.4% to an average of just over $23,800 per day per vessel, up from nearly $20,300 in the second quarter of last year.
| Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | |
| Revenue | $281m | $152m | $517m | $217m |
| Time charter and voyage expenses | $21.7m | $5.87m | $38.9m | $8.36m |
| Direct vessel expenses | $12.9m | $5.87m | $24.1m | $7.1m |
| Vessel operating expenses | $74m | $41.8m | $147m | $64.7m |
| Net income | $118m | $99.9m | $204m | $237m |
| Adjusted earnings per share (diluted) | $3.83 | $4.31 | $6.61 | $6.39 |
But analysts were expecting more. Adjusted earnings per share came in at $3.84, just below the $3.87 expectation of Wall Street stock watchers, according to data from Yahoo Finance.
Vessel operating expenses rose to $74m, up from $41.8m in the second quarter of 2021.
The rise in profit in the second quarter was not enough to lift earnings for the first six months of the year, which fell to about $204m from just under $237m in the same period of last year.
Navios Partners finished the quarter with nearly $175m in cash and $1.29bn in total net borrowings.
Read more
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- Navios Partners swells further with $835m purchase of parent company’s 36 bulkers
- Navios reveals strong charter rate over 12 years for LNG-fuelled container ships
- Amid questions over dividend, Frangou keeps focus on ‘total return’
- Being present at Navios’ office throughout the pandemic: ‘You have to give comfort’
- For Angeliki Frangou, inefficiency is the one certainty in shipping’s outlook
- For Angeliki Frangou’s Navios, newfound resiliency opens door to fresh opportunities
- Navios Partners corporate governance of the ‘highest standard’, Frangou says
