Navios Maritime Midstream Partners has agreed on a 12-month charter for a VLCC as it reported its quarter and full year financial results.
The New York-listed company has fixed the 298,717-dwt Nave Celeste (built 2003) to an oil major for one year at $37,525 per day.
This contract provides a minimum rate of $17,775 per day, Navios Midstream added.
The company has also placed two VLCCs in a pool for a minimum period of three months.
Sister company Navios Acquisition has provided a backstop commitment at a rate of $38,400 per day until January 2019 for the 281,395-dwt Shinyo Ocean (built 2003) and $38,025 until February 2019 for the 287,175-dwt Shinyo Kannika (built 2003).
Short of expectations
Navios Midstream has seen its profit for both the fourth quarter and the full year decline as it fell short of the market’s expectations.
The tanker owner reported net income of $6m for the three months to the end of December, versus $9.1m 12 months ago.
This resulted in net income of $24.9m for 2016, compared to $27.1m in 2015.
Angeliki Frangou, chief executive of Navios Midstream, said: “Navios Midstream is a cash generating platform positioned to take advantage of market opportunity.
“On the revenue side, our fleet is 100% fixed through 2018. On the cost side, operating and related costs are fixed through 2018 as well.
“Further, we have no forward growth capex commitments, and we have no debt maturities until 2020.”
Quarterly earnings per share of $0.28 missed the market’s consensus of $0.31.
The company's bottom line was partly affected by the time charter equivalent (TCE) of $40,719, which was lower than the $45,940 a year ago.
Navios Midstream declared a quarterly dividend of $0.42 per common share, bringing its annual payout to $1.69 in total.
