Why rising EBITDA and net income are positive for Navios Maritime


Dec. 4 2020, Updated 3:53 p.m. ET


Navios Maritime Partners (NMM) recorded an increase of $1.8 million in its earnings before interest, tax, depreciation, and amortization (or EBITDA) to $37.5 million for the three-month period ending September 30, 2014—compared to $35.6 million for the same period in 2013.

Staggered charter exp

The rise was led by an increase in revenue, a $0.2 million decrease in time charter and voyage expenses, and a $0.3 million decrease in other expenses. EBITDA includes the write-off of deferred finance fees of $2.4 million for the nine-month period ending September 30, 2013.

However, with the rising number of vessels, management fees and general and administrative expenses also increased. This had a partially negative impact on the higher EBITDA.

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Currently, containers account for 27%–30% of EBITDA with an average duration of eight years. Going forward, the company wants to build that to ~40%–50% of EBITDA. It will be driven by the acquisition of container vessels. This will give NMM a comfortable position compared to dry bulk. It will have container vessels at a fixed-rate exposure for an average of eight years.

EBITDA after exclusion

For 3Q13, EBITDA and net income were positively affected by the $3.3 million compensation received for Navios Melodia. Excluding this compensation, EBITDA for 3Q14 increased by $4.1 million.

NMM’s peers DryShips Inc. (DRYS), Diana Shipping Inc. (DSX), Safe Bulkers Inc. (SB), and Navios Maritime Holdings Inc. (NM). DRYS, DSX and SB recorded one-year EBITDA growth of 72.5%, 1.4%, and 38%, respectively. The Guggenheim Shipping ETF (SEA) tracks these shipping companies.


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