Nave Atropos sungdong shipyard

April Showers Bring More Tankers for Navios

Rob Almeida
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May 2, 2013

navios acquisition“I am pleased with our results,” commented Angeliki Frangou, Chairman and CEO of Navios Acquisition on her company’s first quarter financials.

The Piraeus-based tanker owner reported 18 percent growth of EBITDA to $28.0 million in the first quarter of 2013 with a positive net income of $700,000 after a loss of $800,000 a year earlier.  “As a result of a strong performance, we declared a quarterly dividend of $0.05, resulting in a yield of 6%,” commented Frangou.

“Today, we have 23 vessels on the water and an additional 13 vessels to be delivered. We are continuing to grow our fleet in the existing market environment. The Navios brand acts as a beacon for transactional partners, highlighting our professionalism, integrity and ability to execute complex deals. We are patiently surveying opportunities and will transact responsibly when the balance is in our favor.”

The following is a summary of the 7+2 MR2 tankers Navios has agreed to acquire during the month of April:

  • Two 2005-built MR2 product tankers of about 47,999 dwt for an aggregate purchase price of $33.0 million. The two vessels are expected to be delivered into Navios Acquisition’s fleet in the third quarter of 2013.
  • Two 2007-built MR2 product tankers of about 50,922 dwt each with expected delivery in the third quarter of 2013. The aggregate purchase price is approximately $46.5 million.
  • One newbuilding MR2 Eco Type product tanker of about 50,000 dwt for approximately $34.3 million. The vessel is expected to be delivered in the third quarter of 2013.
  • Two newbuilding MR2 Eco Type product tankers of about 51,200 dwt each with estimated deliveries in the third and fourth quarters of 2014, respectively. The aggregate purchase price is approximately $63.0 million.
  • Navios Acquisition has been granted options to acquire two additional MR2 Eco Type product tankers.

Navios expects to finance the acquisition of the seven vessels through new debt and existing cash.

Upon acquisition of the above mentioned vessels, Navios Acquisition will own 36 vessels, 29 product tankers and seven VLCCs, of which, 23 vessels are currently in the water and the remaining 13 vessels are still to be delivered, nine of which are newbuildings.

Strategic Partnership with HSH Nordbank AG

In April 2013, Navios Maritime Holdings Inc. and Navios Acquisition have executed a binding letter of intent to acquire, through a new joint venture, ten vessels, composed of five product tankers and five container vessels with an average age of 5.5 years, from debtors of HSH Nordbank AG.

Q1 Vessel Deliveries

On April 24, 2013, Navios Acquisition took delivery of the Nave Atropos, a 74,695 dwt LR1 product tanker, from South Korea’s Sungdong shipyard and was chartered out for one year at a rate of $11,850 net per day plus 50% profit sharing. The charterer has been granted an option for an additional six months at the same rate.

In addition:

March 22, 2013, the Nave Orion, a 49,999 dwt MR2 product tanker vessel was delivered and placed on a three-year charter at a rate of $13,331 net per day plus 50% profit sharing. The charterer has been granted an option for an additional year at a rate of $14,813 net per day plus 50% profit sharing.

February 13, 2013, the Nave Rigel, a newbuilding LR1 product tanker vessel of 74,673 dwt was delivered and placed on a one-year charter at a rate of $11,850 net per day plus 50% profit sharing. The charterer has been granted an option for an additional six months at the same rate.

January 24, 2013, the Nave Bellatrix, a 49,999 dwt MR2 product tanker vessel was delivered and placed on a three-year charter at a rate of $13,331 net per day plus 50% profit sharing. The charterer has been granted an option for an additional year at a rate of $14,813 net per day plus 50% profit sharing.

Equity Transactions

In February 2013, Navios Acquisition completed multiple offerings, including registered direct offerings, of a total of 35,246,791 shares of its common stock, at a price of $2.85 per share representing gross proceeds of $100.5 million. As part of these offerings, Navios Holdings and certain members of management of Navios Acquisition, Navios Holdings and Navios Maritime Partners L.P. purchased in a private placement an aggregate of 17,702,491 of the total shares of common stock issued, representing $50.5 million of gross proceeds.

Total net proceeds of the offerings amounted to $96.0 million.

Time Charter Coverage

As of May 2, 2013, Navios Acquisition has contracted 85.6%, 48.3% and 29.1% of its available days on a charter-out basis for 2013, 2014 and 2015, respectively, equivalent to $179.7 million, $143.5 million and $111.5 million of revenue, respectively. The average contractual daily charter-out rate for the fleet is $22,053, $25,047and $29,102 for 2013, 2014 and 2015, respectively.

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