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Tanker Shipping & Trade

Tanker Shipping & Trade

Navios Maritime posts losses, starts stock buy-back

Fri 09 Feb 2018 by Jamey Bergman

Navios Maritime posts losses, starts stock buy-back
Angeliki Frangou maintained a positive outlook on the crude and product tanker sectors

Navios Group’s tanker arm, Navios Maritime Acquisition reported a US$12M loss for the final quarter of 2017, taking the division’s annual losses to nearly US$19.4M.

In announcing the results, the New York Stock Exchange-listed company also revealed its board had authorised a stock repurchase program.

With revenues falling by 25% in Q4, Navios saw an overall annual decline of 22%. Shareholders will see a dividend of US$0.02 per share for Q4, down from US$0.05 per share.

To offset the cut, Navios has sanctioned up to US$25M in stock buy-backs over the next two years.

In a statement, the company said it is in “advanced discussions” for refinancing its credit facility on four product tankers. The move will take the form of a lease with a six-year term, 12-year repayment and interest of LIBOR plus 3.05% with no assurances of further refinancing.

On the annual earnings call, chief executive Angeliki Frangou said “A stock repurchase programme offers another opportunity to benefit our shareholders. In considering our capital resources, we are likely to adjust the dividend we have paid for 29 consecutive quarters and reallocate cash towards stock repurchases.”

Ms Frangou said the high rates of scrapping in January would “bring the market to a better situation,” and that charter rates were increasing year-over-year.

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