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Mapping Navios Maritime Midstream’s 1Q17 Revenue Decline

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Navios Maritime Midstream Partners’ (NAP) 1Q17 revenue fell to $21.1 million, as compared to $24.15 million in 1Q16.

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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. By contrast, Nordic American Tankers only operates in the spot market. Teekay Tankers (TNK), Tsakos Energy Navigation (TNP), DHT Holdings (DHT), and Euronav (EURN) all operate in the time charter market as well as in 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.

Why revenues fell

NAP’s 1Q17 revenue fall of $3 million was mainly due to a fall in its TCE (time charter equivalent). The decrease in TCE was mainly to decrease in market rates during the first quarter of 2017. The TCE for 1Q17 was $38,547, as compared to $43,476 in 1Q16.

Forward revenues

Navios Maritime Midstream Partners will likely have very stable revenues in coming quarters due to its time charter contracts. The company has long-term contracts, and its vessels are booked 100% for 2017 and 2018.

The company also expects to generate $86.7 million and $86.6 million in revenues for 2017 and 2018, respectively. The average expected daily charter-out rate for the fleet is $39,580 and $39,559 for 2017, and 2018, respectively.

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