As Navios Containers announces its full results for 2019 the CEO has stated that the company is well positioned for 2020, however, the impact of the coronavirus outbreak in China on trade is yet to be realised on the outlook.
“I am pleased with the results for the fourth quarter and full year of 2019,” said Angeliki Frangou, Chairman and CEO.
Frangou continued, “We believe that Navios Containers is well positioned for 2020. We have visibility on revenue through our chartering activities and on cost through the renewed management agreement.
“However, we cannot determine the impact of the coronavirus in China, as developing facts make it impossible to assess the potential ramifications.”
How has coronavirus affected ports and shipping?
For the fourth quarter of 2019, Navios Containers reported $18.2 million of Adjusted EBITDA, $5.9 million of Adjusted Net Income and $0.17 of Adjusted Net Earnings per common unit. For the full year of 2019, Navios Containers reported $59.6 million of Adjusted EBITDA, $10.5 million of Adjusted Net Income and $0.30 of Adjusted Net Earnings per common unit.
Revenue for the year ended December 31, 2019 was $141.5 million, as compared to $133.9 million for the same period during 2018.
The increase of $7.6 million was mainly due to the increase in the number of vessels operating during the year ended December 31, 2019 and the resulting increase in the number of available days from 8,442 for year ended December 31, 2018, to 10,261 for the year ended December 31, 2019, partially offset by the decrease in time charter rates reflecting primarily the expiration of certain legacy time charter contracts.
TCE (voyage and time charter revenues less voyage expense during a relevant period divided by the number of available days during the period) per day declined from $15,369 for the year ended December 31, 2018 to $13,232 for the same period during 2019, primarily as a result of the expiration of these contracts between the two periods.
Navios Containers owns a fleet of 29 vessels, totalling 142,821 TEU. The current average age of the fleet is 11.6 years.
As of January 31, 2020, Navios Containers has chartered-out 45.8% and 10.1% of its available days for 2020 and 2021, respectively (including index-linked charters).
Excluding index-linked charters, Navios Containers has chartered-out 40.5% and 8.2% of its available days for 2020 and 2021, respectively, which are expected to generate $73.3 million and $22.7 million in revenue, respectively.
The average expected daily contracted charter-out rate for the fleet is $17,066, net and $26,189, net for 2020 and 2021, respectively (excluding index-linked charters), and the total expected available days for 2020 and 2021, are 10,614 days and 10,585 days, respectively.
