Tanker shipping company Navios Maritime Acquisition returned to black in the first quarter of 2019 as it continued shedding older tonnage.
Net income for the three month period ended March 31, 2019 was USD 0.9 million as compared to USD 24.5 million loss for the same period of 2018.
The company’s revenue surged by 67.1% in the first quarter of 2019 to USD 77.1 million fromUSD 46.2 million reported in the same period a year earlier.
The increase was mainly attributable to a rise in revenue due to the acquisition and resulting consolidation of Navios Midstream, and a recovery in market rates.
The time charter equivalent rate increased to USD 19,643 for the quarter, compared to USD 14,205 seen in the first quarter of 2018.
“We began to renew our fleet a couple of years ago when asset values were weak. We are selling older vessels for scrap and committing to new bareboat charters,” Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition, said.
“We recently sold two vessels over 18 years of age and exercised an option to bareboat-in a third new Japanese-built VLCC with an implied purchase price of USD 84.5 million. The VLCC is expected to deliver to our fleet in the third quarter of 2021 with a bareboat charter for 12 years and de-escalating purchase options,” Frangou added.
In March and April 2019, Navios Acquisition entered into sale and lease back agreements each for USD 103.2 million in order to refinance USD 50.3 million outstanding on the existing facility on three product tankers and to finance two product tankers for which their previous credit facility was fully prepaid in March 2019 in an amount of USD 32.2 million.