Navios Maritime Midstream Partners L.P. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2015
(firmenpresse) - MONACO -- (Marketwired) -- 07/28/15 -- Navios Maritime Midstream Partners L.P. (NYSE: NAP)
Navios Maritime Midstream Partners L.P. ("Navios Midstream") (NYSE: NAP), an owner and operator of tanker vessels, reported its financial results today for the second quarter and the six month period ended June 30, 2015.
Angeliki Frangou, Chairman and Chief Executive Officer of Navios Midstream stated, "We are excited to report our results for the second quarter of 2015. We earned $18.4 million of revenue, reported $14.0 million of EBITDA and had $5.4 million of net income. We also declared a cash distribution of $0.4125 per unit, providing an annualized distribution of $1.65 per unit and a current yield of 10.7%."
Angeliki Frangou, added, "As a consequence of the recent acquisition of two VLCCs, we anticipate increasing our distribution, commencing in the third quarter of 2015, by 2.4% -- to $0.4225 per unit ($1.69 per unit annualized) and overall expect a 10% distribution growth reaching a quarterly distribution of $0.4525 per unit ($1.81 per unit annualized) by mid-2016."
Angeliki Frangou continued, "VLCC market fundamentals continue to improve. The decline in the price of oil helps to increase oil consumption and oil transportation. As a result, the 2015 year-to-date VLCC spot rate improved more than 100% to an average of approximately $56,000. Not only was the spot rate up significantly, but the charter market has become very active, with the number of long-term time charters fixed in 2015 year-to-date already significantly greater than the number of long term fixtures in each of the last four years."
The Board of Directors of Navios Midstream declared a cash distribution for the second quarter of 2015 of $0.4125 per unit. The cash distribution is payable on August 12, 2015 to unitholders of record as of August 6, 2015.
Following the acquisition of the two VLCCs discussed below, Navios Midstream anticipates increasing cash distribution for the third quarter of 2015 by 2.4% to $0.4225 per unit ($1.69 per unit annualized). In total, Navios Midstream expects a 10% distribution growth through mid-2016 to $0.4525 per unit ($1.81 per unit annualized).
The total unit distribution coverage is expected to be about 1.1x with significant upside through profit sharing arrangement on five of six of our vessels.
In June 2015, Navios Midstream announced the issuance of a $205.0 million Term Loan B facility (the "Term Loan B"). The Term Loan B bears an interest rate of LIBOR + 450 basis points and has a five year term, with 1% per annum amortization profile and a bullet at maturity. It is secured by first priority mortgages covering all vessels owned by subsidiaries of Navios Midstream, in addition to other collateral, and guaranteed by each subsidiary of Navios Midstream.
The net proceeds of the Term Loan B were used as follows: i) $120.7 million to refinance existing indebtedness; ii) $73.0 million, to finance the acquisition of two VLCCs; and iii) to cover fees and expenses.
Concurrently with the closing of the Term Loan B, Navios Midstream took delivery of two VLCCs, the C. Dream, a 2000-built VLCC of 298,570 dwt and the Nave Celeste, a 2003-built VLCC of 298,717 dwt, for an aggregate purchase price of $100.0 million. The purchase price consisted of $73.0 million cash consideration and the issuance of 1,592,920 subordinated Series A units to Navios Acquisition.
The Nave Celeste is employed at a net charter rate of $42,705 per day through December 2016 and has a backstop commitment from Navios Maritime Acquisition Corporation ("Navios Acquisition") at $35,000 net per day for a period of two years following the scheduled redelivery of the vessel. The C. Dream is employed at a net charter rate of $29,625 per day with profit sharing through March 2019.
During the second quarter of 2015, Navios Midstream benefited from the improved VLCC spot market and recognized $1.4 million under its profit sharing arrangements. Profit share recognized for the six months ended June 30, 2015, was $2.4 million.
Navios Midstream has entered into long-term time charter-out agreements for its vessels with a remaining average term of 5.8 years, which are expected to provide a stable base of revenue and distributable cash flow. Navios Midstream has currently contracted out 100% of its available days for each of the years 2015 and 2016, expecting to generate revenues of approximately $79.7 million and $89.6 million, respectively. The average expected daily charter-out rate for the fleet is $42,994 and $40,798 for 2015 and 2016, respectively.
For the following results and the selected financial data presented herein, Navios Midstream has compiled condensed consolidated and combined statements of operations for the three and six months ended June 30, 2015 and 2014. The quarterly and six month period 2015 and 2014 information was derived from the unaudited condensed consolidated and combined financial statements for the respective periods. EBITDA and Operating Surplus are non-GAAP financial measures and should not be used in isolation or substitution for Navios Midstream''s results.
Revenue for the three month period ended June 30, 2015 increased by $2.7 million to $18.4 million, as compared to $15.7 million for the same period in 2014. Time Charter Equivalent ("TCE") was $46,545 for the three month period ended June 30, 2015 and $42,379 for the three month period ended June 30, 2014. The increase in revenue was due to the profit share of $1.4 million recognized in the three month period ended June 30, 2015 and the acquisition of the Nave Celeste and the C. Dream in June 2015.
EBITDA increased by $2.4 million to $14.0 million for the three month period ended June 30, 2015, as compared to $11.6 million for the same period in 2014. The increase in EBITDA was mainly due to a: (i) $2.7 million increase in revenue; and (ii) $0.1 million decrease in time charter expenses. The above increase was partially mitigated by a: (a) $0.2 million increase in general and administrative expenses; and (b) $0.1 million increase in management fees.
The reserve for estimated maintenance and replacement capital expenditures for the three month period ended June 30, 2015 was $2.4 million (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).
Navios Midstream generated an Operating Surplus for the three month period ended June 30, 2015 of $10.3 million. Operating Surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership''s ability to make quarterly cash distributions (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).
Net income for the three month period ended June 30, 2015 was negatively affected by $1.7 million write-off of deferred finance cost in association with debt prepayment. Excluding that item, Adjusted net income for the three month period ended June 30, 2015 was $7.1 million compared to a $0.7 million loss for the three month period ended June 30, 2014. The increase in Adjusted net income was due to a: (i) $2.4 million increase in EBITDA; and (ii) $5.6 million decrease in interest expense and finance cost; partially mitigated by a $0.2 million increase in depreciation and amortization.
Revenue for the six month period ended June 30, 2015 increased by $3.7 million to $35.1 million, as compared to $31.4 million for the same period in 2014. Time Charter Equivalent ("TCE") was $46,234 for the six month period ended June 30, 2015 and $42,738 for the six month period ended June 30, 2014. The increase in revenue was mainly due to the profit share of $2.4 million recognized in the six month period ended June 30, 2015 and the acquisition of the Nave Celeste and the C. Dream in June 2015.
EBITDA increased by $3.3 million to $26.6 million for the six month period ended June 30, 2015, as compared to $23.3 million for the same period in 2014. The increase in EBITDA was mainly due to a: (i) $3.7 million increase in revenue; and (ii) $0.1 million increase in other income, net. The above increase was partially mitigated by a $0.5 million increase in general and administrative expenses.
The reserve for estimated maintenance and replacement capital expenditures for the six month period ended June 30, 2015 was $4.5 million (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).
Navios Midstream generated an Operating Surplus for the six month period ended June 30, 2015 of $19.7 million. Operating Surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership''s ability to make quarterly cash distributions (please see Reconciliation of Non-GAAP Financial Measures in Exhibit 3).
Net income for the six month period ended June 30, 2015 was negatively affected by $1.7 million write-off of deferred finance cost in association with debt prepayment. Excluding that item, Adjusted net income for the six month period ended June 30, 2015 was $13.4 million compared to a $1.4 million loss for the six month period ended June 30, 2014. The increase in Adjusted net income was mainly due to a: (i) $3.3 million increase in EBITDA; (ii) $11.5 million decrease in interest expense and finance cost; and (iii) $0.1 million decrease in direct vessel expenses; partially mitigated by a $0.2 million increase in depreciation and amortization.
The following table reflects certain key indicators of Navios Midstream''s core fleet performance for the three and six month periods ended June 30, 2015 and 2014.
Navios Midstream''s management will host a conference call today, Tuesday, July 28, 2015 to discuss the results for the second quarter and six months ended June 30, 2015.
Conference Call details:
Call Date/Time: Tuesday, July 28, 2015 at 08:30 am ET
Call Title: Navios Midstream Q2 2015 Financial Results Conference Call
US Dial In: +1.866.703.4207
International Dial In: +1.636.692.6440
Conference ID: 7509 0421
The conference call replay will be available two hours after the live call and remain available for one week at the following numbers:
US Replay Dial In: +1.800.585.8367
International Replay Dial In: +1.404.537.3406
Conference ID: 7509 0421
There will also be a live webcast of the conference call, through the Navios Midstream''s website () under "Investors". Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A supplemental slide presentation will be available on the Navios Midstream''s website under the "Investors" section by 8:00 am ET on the day of the call.
Navios Maritime Midstream Partners L.P. is a publicly traded master limited partnership which owns and operates crude oil tankers under long-term employment contracts. For more information, please visit our website at .
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and Navios Midstream''s growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "may", "expects", "intends", "plans", "believes", "anticipates", "hopes", "estimates", and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenue and time charters. Although the Navios Midstream believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Midstream. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the creditworthiness of our charterers and the ability of our contract counterparties to fulfill their obligations to us, tanker industry trends, including charter rates and vessel values and factors affecting vessel supply and demand, the aging of our vessels and resultant increases in operation and drydocking costs, the loss of any customer or charter or vessel, our ability to repay outstanding indebtedness, to obtain additional financing and to obtain replacement charters for our vessels, in each case, at commercially acceptable rates or at all, increases in costs and expenses, including but not limited to: crew wages, insurance, provisions, port expenses, lube oil, bunkers, repairs, maintenance and general and administrative expenses, the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, as well as standard regulations imposed by our charterers applicable to our business, potential liability from litigation and our vessel operations, including discharge of pollutants, general domestic and international political conditions, competitive factors in the market in which Navios Midstream operates; risks associated with operations outside the United States; and other factors listed from time to time in the Navios Midstream''s filings with the Securities and Exchange Commission. Navios Midstream expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Midstream''s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes.
EBITDA is presented because Navios Midstream believes that EBITDA is a basis upon which liquidity can be assessed and present useful information to investors regarding Navios Midstream''s ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and pay dividends. EBITDA is a "non-GAAP financial measure" and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity.
While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.
Operating Surplus represents net income adjusted for depreciation and amortization expense, non-cash interest expense and estimated maintenance and replacement capital expenditures. Maintenance and replacement capital expenditures are those capital expenditures required to maintain over the long term the operating capacity of, or the revenue generated by, Navios Midstream''s capital assets.
Operating Surplus is a quantitative measure used in the publicly-traded partnership investment community to assist in evaluating a partnership''s ability to make quarterly cash distributions. Operating Surplus is not required by accounting principles generally accepted in the United States and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity.
Available Cash generally means for each fiscal quarter, all cash on hand at the end of the quarter:
less the amount of cash reserves established by the Board of Directors to:
provide for the proper conduct of Navios Midstream''s business (including reserve for maintenance and replacement capital expenditures);
comply with applicable law, any of Navios Midstream''s debt instruments, or other agreements; or
provide funds for distributions to the unitholders and to the general partner for any one or more of the next four quarters;
plus all cash on hand on the date of determination of available cash for the quarter resulting from working capital borrowings made after the end of the quarter. Working capital borrowings are generally borrowings that are made under any revolving credit or similar agreement used solely for working capital purposes or to pay distributions to partners.
Available Cash is a quantitative measure used in the publicly-traded partnership investment community to assist in evaluating a partnership''s ability to make quarterly cash distributions. Available cash is not required by accounting principles generally accepted in the United States and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity.
Navios Maritime Midstream Partners L.P.
+1 (212) 906 8647
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Datum: 28.07.2015 - 04:30 Uhr
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