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Navios Maritime Acquisition: Earnings and fleet grow in 4Q14

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Fourth-quarter earnings

Navios Maritime Acquisition Corporation (NNA) reported its fourth-quarter earnings on February 11, 2015. Between then and now, the stock has recorded a 5.7% decrease.

For the same period, Teekay Tankers (TNK), Tsakos Energy Navigation (TNP), Scorpio Tankers (STNG), and Capital Product Partners (CPLP) respectively recorded increases of 9.1%, 9.9%, 2.9%, and 5.9%. Meanwhile, the SPDR S&P 500 ETF Trust (SPY) rose by 2.3% in the same period.

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In the fourth quarter of 2014, NNA’s revenue and EBITDA (earnings before interest, taxes, depreciation, and amortization) recorded significant growth. Through profit sharing in charter contracts, the company has captured a significant market upside. As well, Navios Maritime Midstream Partners (NAP) provided additional revenue and liquidity to the company during the quarter. We’ll take a detailed look at the company’s earnings later in our series.

Company overview

Navios Maritime Acquisition Corporation (NNA), owner and operator of tanker vessels, focuses on the transportation of clean and dirty petroleum products and bulk liquid chemicals. NNA owns a large fleet of modern crude oil, refined petroleum product, and chemical tankers that provide world-wide marine transportation services. It’s strategy is to charter vessels to international oil companies, refiners, and large-vessel operators under long-, medium- and short-term charters.

The operations of NNA are managed by Navios Tankers Management, a subsidiary of Navios Maritime Holdings (NM).

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Fleet growth

At the end of the fourth quarter of 2014, Navios Acquisition’s total number of operating vessels stood at 37, compared to 33 at the end of the fourth quarter in 2013. Meanwhile, the company currently owns 39 vessels over 41 vessels in the third quarter. In February 2015, the company terminated ship-building contracts for two new MR2 product tankers, reducing its tanker numbers from 29 to 27. NNA canceled the contracts because the shipyard wouldn’t issue a refund guarantee.

Since the beginning of 2013, the company’s product tanker fleet in the water has recorded 170% growth. The overall total fleet on the water grew by 105%.

In November 2014 and December 2014, Navios Acquisition took delivery of Nave Pyxis, a 2004 MR2 product tanker, and Nave Synergy, a 2010 Japanese-built VLCC (very large crude carrier). In January 2015 the company also took delivery of a MR2 product tanker, Nave Sextans, and in February 2015, of Nave Velocity.

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