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What to Expect from NAP’s Revenue in 2017 and 2018

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Jan. 30 2017, Updated 1:05 p.m. ET

Top line

Navios Maritime Midstream Partners’ (NAP) 4Q16 revenue fell to $22.8 million. It was $25.8 million in the same period last year.

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Revenue sources

Navios Maritime Midstream Partners derives its revenue from time chartering its vessels. It doesn’t have any vessels employed in the spot market. In contrast, Nordic American Tankers only operates in the spot market. Teekay Tankers (TNK), Tsakos Energy Navigation (TNP), DHT Holdings (DHT), and Euronav (EURN) operate in the time charter market as well as the spot market.

Navios Maritime Midstream Partners has six VLCCs (very large crude carriers). Its revenue comes from three main customers—Cosco Dalian, Formosa Petrochemical, and SK Shipping. The revenue distribution from these customers is 75.6%, 18.3%, and 6.1%, respectively.

Fiscal 2016

Navios Maritime Midstream Partners’ revenue for fiscal 2016 rose by $8.5 million to $91.8 million—compared to revenue of $83.4 million in 2015. In June 2015, the company acquired two tankers—Nave Celeste and the C. Dream. These acquisitions were the primary reasons behind the increased revenue. The increase was partially mitigated by a decrease of $3.2 million in profit sharing.

Navios Maritime Midstream Partners’ time charter equivalent for 2016 was $42,625—compared to $45,924 in 2015. The VLCCs acquired in June 2015 have a comparatively lower average charter rate than the existing fleet. It decreased the time charter equivalent.

Forward revenues

Navios Maritime Midstream Partners will have very stable revenues in the upcoming quarters due to its time charter contracts. The company has long-term contracts and its vessels are booked 100% for 2017 and 2018. It expects to generate $86.7 million and $86.6 million in revenues for 2017 and 2018, respectively.

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