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Key Developments for Navios Maritime Midstream Partners

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Jan. 30 2017, Published 11:24 a.m. ET

Recent developments

In this part of the series, we’ll discuss the recent developments for Navios Maritime Midstream Partners (NAP). The company is the first among its peers to report fourth quarter earnings. Its peers include Teekay Tankers (TNK), Tsakos Energy Navigation (TNP), DHT Holdings (DHT), Nordic American Tankers (NAT), and Euronav (EURN).

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Long-term profit sharing 

Navios Maritime Midstream Partners entered into long-term charter-out agreements for its vessels with a remaining average term of 4.3 years. These contracts are expected to provide a stable revenue base and distributable cash flow. Currently, Navios Maritime Midstream Partners contracted 100.0% of its available days for 2017 and 2018.

Fleet updates

In the fourth quarter, Navios Maritime Midstream Partners’ VLCC (very large crude carrier), Nave Celeste, was chartered out for one year to an oil major. The tanker will earn a rate based TD3-TCE index. Navios Maritime Midstream Partners will earn 100% of the index rate up to $37,325 per day and 50% in excess of $37,325. The downside of the contract is capped at $17,775 per day. Navios Maritime Midstream Partners’ other two VLCCs, Shinyo Ocean and Shinyo Kannika, are placed in a VLCC pool.

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Offering program 

In 4Q16, under the Continuous Offering Program, Navios Maritime Midstream Partners issued 56,000 common units. There were 313,103 total units issued in 2016. For fiscal 2016, the company received net proceeds of $4 million from the units issued.

Distribution

Navios Maritime Midstream Partners declared a cash distribution for the fourth quarter of $0.42 per unit. In the next part of this series, we’ll see how Navios Maritime Midstream Partners’ revenue fared in 3Q16 and what the future holds for the company.

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