NM - Earnings call transcript Q3 2020 | Navios Maritime Holdings Inc.

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Operator

Thank you for joining us on Navios Maritime Holdings Third Quarter 2020 Earnings Conference Call. With us today from the company are Chairman and CEO, Ms. Angeliki Frangou; Chief Financial Officer, Mr. George Achniotis; Vice Chairman, Mr. Ted Petrone; and Senior Vice President of Strategic Planning, Mr. Karyotis. Ioannis

this go being of to Holdings at reminder, the To Navios call website please webcast, the www.navios.com. conference a webcast. is access Maritime As Investors section

page in today's referencing conference call found middle link the be earnings webcast also the copy of see of You'll the there. and will a presentation the

forward-looking Litigation will meanings of the review statement. Reform Now Navios within of safe I about This conference Private Securities statements harbor the call Act XXXX could contain the Holdings.

filings are that based obligation cause statements Exchange risks are Navios in information fully historical update beliefs facts. expectations forth follows. the light are statements Forward-looking with which information set understood and Holdings' is call actual any to should risks. statements forward-looking contained of for not this differ such more from call. the as assume discussed The to are Securities herein not forward-looking upon and could The Such to and Commission. uncertainties, be subject current agenda in statements. the conference results today's are the management conference Such of in Navios and does risks Navios Holdings Holdings'

conference team, formal open call this from the remarks management We begin call to will and morning's will we questions. after, with the take

the turn Holdings' Chairman Angeliki? and to I call Now Navios Frangou. over CEO, Mrs. Angeliki

Angeliki Frangou

you all Thank us on joining you, call. to today's Doris, of good and morning

with the the Given the for pleased the difficulties results am with quarter I of associated third pandemic, XXXX.

Holdings net of EBITDA $XX.X adjusted of the reported income of adjusted and million. million third revenue During quarter, $XXX.X Navios million $X.X and

backed the commenced market such a be Navios for receipts BX public shares common potential depository in process Logistics Brazil. exchange on of Partners as half $XXX QX. and robust for about fundamentals of earning pipeline $XX Navios about of in million a pandemic details given XXXX, Acquisition, was of for trade. shutdown. has first XXXX EBITDA global contracted of handed other considerations. has $XXX GDP the tanker company, by a capitalization long-term a Any and adjusted on leverage. contracted Brazilian container to Obviously, X the weak and throughout the X, offering rebound net is rebound second improvement its demand revenue revenues. market and will QX. Navios we quarter also QX and economy. Slide by Consequently, EBITDA new the you issuance. senior critical expected Logistics notes in in optimistic was to XXXX in pandemic a that Navios a considerations grow transshipping XXXX. to believe patterns and growth senior Term continue attributable about helped minerals The global refinanced first to in for the recently, QX Please economies XXXX due new are security turn purchasing and food this demand $XXX in in secured grains. $XXX continue surpassed hurt developing Although, measures global We stimulus business, shutdowns, for fiscal policy as with Loan of other port debt has XX.X% has and to Containers, company see about successfully the book conservative to million for in drybulk global August can infrastructure and during million benefited XXXX B million XXXX, leverage XXXX notes in the July offering more our a impact XXXX In in with in Navios low million Slide in through entity half

of expects is year. expected X.X% X.X%, outlook GDP IMF economic the by growth China by for to where global favorable, with However, next grow mainly XXXX led an GDP

X.X% economic a to the disruption As of result expected during first by in trade half the activity, of drybulk is to XXXX, XXXX. contract

by trade drybulk recent Slide to developments. projected recover, X.X% is XXXX. increase to our continue in X economies as However, highlights

our for and day per charter achieved day average vessels, During vessels. for an rate per $XX,XXX $XX,XXX our of Ultra $X,XXX vessel we our Panamax for Handymax time QX, Capesize

own our added vessels newbuilts We added expanding over last XX have charters. million months. vessels eight and as the four bareboat We four our were fleet, were fleet acquired renewing been to and for $XX.X

we X% $XX.X seven four for sold we were XX%. in sold fleet average of million reduced capacity increased these sales proceeds, Through in QX million. $XX.X which our successfully vessels Additionally, by its transactions, for and by age

by August have bond Logistics principal collaborative agreed fleet expansion. $XXX amount secured the details update that with XXXX. holding XX.XX% majority of a have an due springing senior subject XXXX. IPO be engaged owned million, Slide holders the of to As completed our of September X, to waive further and are the maturities, to Navios a discussions notes our maturity we our in an notes of Owners in outstanding to renewal

over QX previously in our by mentioned, XX we from months, age to with X.X XXXX. to XX.X last age years, added we our in eight years XX% an the an age with average years. fleet of This of As sold average reduced years QX XX.X vessels average fleet vessels while XXXX of seven of X.X

Additionally, million we in QX million our tons capacity QX were deadweight tons from by X.X X% in of XXXX. Slide of expand liquidity also highlights able XXXX fleet our X deadweight to position. to X.X

and we September As of million. cash book our of was net XXXX, have debt XX, capitalization to $XXX.X XX.X%,

Achniotis, growth turn Mr. George? George CapEx. committed the Navios have CFO. shipping like I to no call now over would Holdings' to We significant

George Achniotis

Navios in of What interest on achieved from in is compared when working assets the million the and million last the the of decrease incurred bond in vessels. to intangible turn $X.X finance to affected and the million Adjusted the costs Acquisition the that XXXX. the of not EBITDA quarter deconsolidation quarter were of of for $XX.X the months the million net one due EBITDA million the months EBITDA of deferred of is income was the economy quarter year, the to by the to to the Thank the the our in sale global half is exclude million compared $XX.X year. adjusted net the impairment QX million Navios the over Please at statements the of attributable Navios $X.X net $XX.X nine is pandemic million gain financial sale XXXX. of of third six the to for impairment reflects Slide Logistics to of of million year financial bonds from net the $X.X loss of $XX.X and adjusted Holdings; XXXX. recovery for EBITDA vessels, Navios QX due Navios X million third the and of to for quarter in you, rate Adjusted market EBITDA mainly first quarter South adjusted write-off million to of Navios American of the two consolidated EBITDA refinancing first including adjusted $X.X and sale than Partners increase $XXX,XXX repurchase the higher the loss for exclude adjusted $X.X Containers, to $XX.X to vessel. in QX compared and and loss in $X.X loss XXXX. was were September in lower The and a EBITDA was from The adjusted million review Angeliki. for TCE of decrease Holdings highlights NMCI its compared decrease a EBITDA the mainly its is to XX, expense. in of due XXXX $XX.X the the in

$XXX.X compared results. $XXX.X XXXX. in nine-month period the to Adjusted EBITDA for the million, to million was Turning

and loss decrease through In in million in income of in that impairment four our first of exclude was net and and from EBITDA net million an from the due the decrease loss higher million addition EBITDA a compared in $X.X expense. to of Europe months $XX.X XXXX. vessels to mainly bonds Partners. affected loss II, decrease increase QX adjusted Acquisition the $XX.X for of achieved million the rate loss decrease gain an Navios the directly XXXX were adjusted mainly in The the Navios of attributable to and was $XX.X to million the nine in EBITDA the to The was investment Navios items additional interest period million results, adjusted and XXXX. $XX.X in both impairment in the and Adjusted net $XX.X TCE repurchase sale our

XX balance Slide and sheet highlights. our to Moving

to balance notes September Loan of of are Navios American than XXXX. at $XX ship by at cash Senior South to new the due issued American repayment $XXX Long-term debt Logistics mortgage decreased about and reflecting million, $XX.X XXXX, of million Navios end the mainly B. year-end, December Logistics. notes about million, the the at compared mainly As South XX, higher about was million $XX Term

of Navios from and Please about NMM Over Partners briefly owns controls Since will Partners. XX $XXX we the vessels, also XXXX, review drybulk turn of in a XX of fleet dividends to XX. slides, next NMM. containerships. our XX% Navios Navios million Holdings about I owns XX Navios XX% affiliates. received Containers. Slide

of Turning XX million to from Holdings fleet in II, of owns XX.X% following Slide XX about $XX are a Europe Navios XXXX, received XX. that held tankers, of seven has dividends Acquisition. for Navios dissolution including VLCCs the Since sale. containerships we Navios NNA. and NNA

in the owns Slide to in of its the Navios The quickly fleet Navios Select efficiently. early the established company on December of has XXXX, scaled X% to been XXXX was Moving shares weakness Holdings XX. Global Market. Containers up sector fleet about NMCI a trading leverage of have and Navios containerships. Containers. containership and Since XX NASDAQ

the of to South the call Navios Logistics turn results. will his review American for Ioannis I Now Ioannis? over Karyotis

Ioannis Karyotis

Slide you, are Thank coastal operates Navios and port our overview of Logistics. fleet river terminals, product fleet three an transportation tanker complemented which provides trade. for by XX George. cabotage for Navios Logistics barge

they million, we which the exchange port a to through a transport period. we period year generated for iron Vetorial minerals offering market option XX and public notified recently months million conditions that million other Our extend the port in for compared expected last X.X Vale Brazil, factors. transit a potential process XXXX quarter, for for was Last of an from the about adjusted X.X agreed $XX.X approximately to August, tons of per In segment. for and ore the expect stock X.X to to EBITDA our million of BX XXXX. three in for on quarters to us commenced subject six-month tons one-year tons was

know, X a minimum annually. Vale million of may quantity contract tons you As our with guarantees

Hidrovia River and Vetorial increasing contract, are inquiries minerals logistics system. receiving through of notification, other the we signs services are of for exports Vale's However,

and contract we for XX of terminal QL barges for includes years. of our five transporting should a September, $XX during of port pushboats X.XX three All announced these the minimum cubic to overall. transaction million. of up of barge affreightment the meters The period business million acquisition the of benefit tank and In a

interest bearing of to with $XX and generate a at funded rate acquisition be per from financing to expect of $XX equity EBITDA approximately million, annual closing million million will paid We at $X The annum. transaction. the be fixed X% of sellers

XX% same We of in revenue million, million. affected the water in same senior to of July XXXX, barge of of the EBITDA system. financing quarter in transaction XXXX The related cabotage operating customary stemming adjusted low the year, adjusted decreased mainly the fewer volumes year Please X% adjusted $X.X deferred and on by $X.X revenue was the expenses. a in in turn time fourth River port Hidrovia XXXX mainly our $X.X expect rates. days time $XX.X unamortized due from of from in third iron grain with close closing million to increased and levels attributed charter XX. a XXXX, contracts increased year, business, extinguishment to and terminal million and $X.X been lower mainly by to write-off from operating million this and terminal. non-cash XXXX the due of from the The higher business EBITDA new $XX.X million costs last decreased notes exclude EBITDA to million from year claim quarter XXXX QX by the segment, because issuance recorded in with In XX% the adjusted of decreased refinancing to secured has maturities, to barge XXXX. customer period the our increase from In QX procedures. lower the is XXXX segment of certain to time performance subject to In EBITDA last income charter the and Page the million debt to period extraordinary loss $XX.X by $X.X QX a charter last in ore the to

costs loss due This higher non-cash $X.X $XX.X was the for adjusted finance profit million and income million to net XXXX, notes. QX the and extinguishment For $X.X to compared senior interest expenses attributable debt decrease period mainly to in same last on the was operating lower million year. new

decreased strong decreased financial end and million had call decreased year. $XX.X X%, $XX.X $XX for EBITDA of until Logistics adjusted at I ending XX, Navios X% Slide no $XX.X now to of Turning to significant last million to Revenue the to same to turn XXXX. results XXXX. XX%. Ted compared to maturities net balance $XX.X adjusted Cash debt the income sheet the would in nine-month the turn period book quarter to the equivalents the with period million from a million, September at million cash were XX. Net was XX% the Petrone. and XXXX. capitalization third over to Please end

Ted Petrone

million fleet, XX XX a Thank Capes, you, presents Ioannis. deadweight. Supramaxes vessels, X consisting X Handysize. XX to diversified drybulk Slide Panamaxes, Please totaling turn XX of X.X drybulk and

include X,XXX, of X,XXX, on last BDI grain public BDI, lowest vessels reached and primarily years The U.S.-listed fleets, at high turn Slide drybulk the just at China, years, quarterly the tankers softening Navis the by The exports younger XX XX% a Group's Navios XX high X XX. with over the age a jump of one than average iron since August. highly established October weeks months container the eight XX XX ago. point total is to fleet over correcting be ore to to before BDI down started as mid-June. industry company. and the quarter to a shipping continue nine a returned saw to Seasonality largest year-to-date with over XXX fleet average. several $XX.XX. is – double Please average vessels, We in the July, the of settling QX QX vessels. saw in drybulk but for led close Atlantic in its diversified

unprecedented However, year continuing IMF, according economy with The back continue to to of grow the of for China, the globe the the approximately to growth further aimed Chinese be in to in IMF support pandemic, The forecast grow XXXX, growth in affected the at trade spending. projected global X.X% XXXX. growth most XXXX. X.X%, global on in to for at drybulk projects government by XX% drybulk X.X% this recent the of X.X% stimulus, particularly fiscal a light place emergency a contraction economies. have economies. put their and this, led advanced Governments be economy, which GDP contraction infrastructure in will by XXXX X.X% of trade for XXXX. monitoring major X.X% of the contraction expect IMF X.X% only accounts In growth entire plan global is at of

Slide about graph Turning to and to for is by led XX of outpace increase cargoes which demand the major the left shows coal, drybulk is ore to The expected forecast three grain This million grow coal XXXX XX. on that X.X% is iron or tons. by for XXXX.

expected forecasted on XXXX. fleet, growth to fleet remain is the to graph the of X.X% is at few X.X% fleet of growth look record this only are over is the order that book and is next year years fleet currently in scrapping the you right, than If lowest be at candidates. as X.X% the which on Net less the net X.X% low

tons tons, Slide stockpiles to a iron imports XXX November in XX at between million year, monthly the at imports China billion continues XXX this ore million record X.X% steel in tons ore new are production ore expected September XXXX XX. of to by about July highest X.XXX coming set Turning second their Despite this of reduced Chinese as has records. for steel set with million the iron have to in imports iron mills XXXX, about increase and tons. pandemic, Chinese by June

availability and fiscal additional from to of Brazil drive vessels. steel QX Australia forward. for going China Capesize the steel ore spending support and match QX iron to infrastructure levels, and in production Chinese as expected demand trade driving shipments mills are stockpiles, With stimulus should turn bulk The and replenish

the price pandemic the XX, and oil coal Slide in the to reduced drop has trade. resulted significant in gas of Moving combination of and the

about XX% Asian has XXXX vessels, on the coal discussed but partially by the smaller X.X% seaborne of are This grains on for imports, increased slide. demand for in XXXX. to been increase offset added in by which account expected which over pressure following trade X.X%, decrease reduction world's has the by

the trade. issues ever CAGR security Worldwide pandemic by well and the by world has further increasing Slide grain XXXX, demand. imports X% in mainly grain Asian X.X% are global increasing Turning An XXXX to in XX. approximately as trade since growing X.X% as forecast driven increase to worldwide food driven been to XXXX. protein a by continue demand Asian support population grain Overall by

disruptions trade at council of which grain record. year. international projects soybeans the corn, stands record the the pandemic order The to the turn of current Please Slide book disruptions, fleet, crop grain lowest X.X% With wheat, only the causing XX. minimal shipments for is on

collapsed XX% has contracting down by building New compared XXXX. year-to-date to and about is

With order Vale front-loaded to XXXX, growth about of expected only the for X.X% at net VLOC the XXXX. year accelerate low phaseout is book and the fleet, remain and expected as in scrapping this being X.X% fleet to

million the should fleet provide pandemic tons X.X% about the around the Turning and due provide caused positive to crude economic its full of turn and phaseout would like the the year-to-date, my the her of drybulk year Angeliki? higher is the comments. previously has about mentioned over XX% now availability Slide than of support at fleet Angeliki challenges slowly to lockdown restart demand support due world, which to record the than storm. is started are pandemic XX. fleet, the Vessels the reduced with to which for of XXXX by effort along low combination presentation. this logistical VLOC stands this call a of now This market age total to should continuing the to XX.X activity in of Scrapping, over concludes In to the now book. higher navigate order X.X% percentage conclusion, years of XX fleet. through the fundamentals Vale final I to amount

Angeliki Frangou

formal completes presentation our open This questions. Ted. of you, results. Thank QX our to We call the

Angeliki Frangou

Thank see results. year. as than our This A quarter are XXXX, the half more completes into we of with we you. momentum. the first QX good profitability going And

the book commodities next of one completes recently on developments have further This strong demand accelerate positive growth history. should in There's lowest the the order quarterly and announced year. Thank you. the We our a drybulk the vaccine for results.

Operator

and ladies does you, conclude Thank conference gentlemen, call. this today's

disconnect. now may You

Navios Maritime (NMPRY) 23 Nov 202020 Q3 Earnings call transcript