uploads///Dividend

NAP Has Declared a $0.42 Cash Distribution

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Oct. 31 2016, Updated 10:04 a.m. ET

NAP’s distributions

In the previous part of this series, we saw that Navios Maritime Midstream Partners’ (NAP) EBITDA (earnings before interest, tax, depreciation, and amortization) fell 3.0% year-over-year in 3Q16. In this part, we’ll take a look at the company’s distributions.

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Cash distribution

NAP has declared a cash distribution of $0.42 per share, representing an annualized distribution of $1.69 per share. The quarterly distribution was the same as last quarter.

In 4Q15, the company increased its quarterly distribution from $0.41 per share to $0.42. Since then, it has maintained the same amount of dividends per quarter. The total distributions for the quarter amounted to $8.9 million.

Dividend coverage

NAP’s coverage ratio, which is the distributable cash flow as a percentage of distribution, is 1.06. Coverage ratio is a measure of a company’s ability to pay dividends. A higher ratio is generally a healthy sign. A ratio less than 1.0 indicates that a company’s cash flow is less than its dividends paid. That may indicate that its current level of dividends isn’t sustainable in the long run.

Dividend yield

With a cash distribution of $0.42, NAP’s current dividend yield is 13.5%. Following are the dividend yields for other crude tanker companies:

  • Nordic American Tankers (NAT): 11.8%
  • Euronav (EURN): 17.5%
  • DHT Holdings (DHT): 21.0%
  • Tsakos Energy Navigation (TNP): 6.6%
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