NM - Earnings call transcript Q3 2021 | Navios Maritime Holdings Inc.

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Operator

Good morning, and thank you for joining Navios Maritime Holdings Third Quarter 2021 Earnings Conference Call.

We are pleased to host this call from the Cayman Islands. With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangou; Vice Chairman, Mr. Ted Petrone; Chief Financial Officer, Mr. Vice Strategic Senior Mr. and Achniotis; President Planning, of George Ioannis Karyotis. turn I to the Ms. now over call will Daniela the and statement. conference who call Guerrero, will details the take Safe you through Harbor Daniela?

Daniela Guerrero

you. Thank

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

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

call the Litigation Now forward-looking Harbor XXXX safe should I conference of Securities contain under This Private about review Reform meaning the will Holdings. statements statement. of Navios the Maritime Act

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

Operator

today's The follows. call conference agenda for as is

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

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

Angeliki Frangou

an August by for upcoming and Navios of results of note revenue call. $XXX maturity XXXX. the good income $XXX.X of morning notes Holdings in provides am addresses plans third of and Holdings maturing satisfy Navios maturities Michael, and of debt quarter, liquidity in and the $XXX $XX.X $XXX.X Navios This financing. EBITDA joining of enabled million of for the announced on million. Thank all refinancing for to third reported XXXX. In million sufficient million million $XXX runway million, imminent about I you, in net you us pleased with to today's quarter addressing note

Importantly, provided of during release Please to for there an cash almost debt amortization we Slide half about million financing $XXX period, no will XX-month requirement package. overview collateral be the and achieved turn for which the of interest X Navios a of of for or an structure.

Navios of can X.X age XX you As with average see, Holdings an years. vessels operates drybulk

Navios secure Slide region. of During largest with Holdings notes our of segments, while Partners ownership the various also one to We'll balance million. completed Navios Navios the merger reducing in With infrastructure highlights $XX sheet is listed Navios company Navios Navios allow operates quarter, its U.S. our valued million American ship us with the to developments. South Acquisition. XXX at Logistics logistics that X Partners of XX.X% and in retire vessels Holdings $XXX.X notes. its Partners owns Navios strengthen the senior companies. Hidrovia secured XX.X% Post-merger, maintained $XX publicly third shipping continue leading Logistics. across of as recent Navios financing million mortgage

$XX.X generated we million $XXX.X quarter, and net in third in During $XXX.X revenue, in the EBITDA million million income.

nine and For EBITDA adjusted $XX.X million adjusted million first million $XXX.X the in income. net of generated in XXXX, we revenue, months in $XXX

day our XXXX Capesize Fourth and XXXX vessel. $XX,XXX also day we our During flow. the per per for charter $XX,XXX $XX,XXX and third also for offer vessel, Panamax quarter, achieved strong Ultra-Handymax vessel our time rate for per of cash a should day quarter

market fixing quarter, capitalized we rate fourth $XX,XXX XX% of X,XXX far net of on in the conditions at days our day. available So by a per

on the class asset slide. by fixes our see can out You laid

of are index-linked. or XX,XXX there which year calendar XX,XXX open For available XXXX, days, are

free additional from per $XX,XXX only day. drybulk rates market. market to With per day $XX,XXX is around breakeven generate averaging this flow open cash we strong about However, hope

Lastly, I Acquisition. Partners with the completion highlight of merger Navios Navios

Slide combined new of the debt the we the Navios recently stake announced. financing X that XX.X% retirement enabled of result a own in Holdings merger, As $XXX.X details the million notes million by entity. $XXX of

the at As ship due million as Navios Holding will This out XX, in the slide, laid top will $XXX.X be of January notes retire accomplished follows. XXXX. mortgage

Navios We under will notes secured $XXX.X notes, to plus $XX debt new after also facilities million the in use ship cash balance in Holdings $XXX collateral remain own [ph] profit mortgage outstanding. $XXX.X million from redeem be will NSM as and of will available pledged financing the canceled. which million senior will million

of refinance commercial banks bottom to will debt sale new of as from $XXX.X two lends debt and to drybulk plus agreement collateral collateral, agreements. bareboat NSM. is liquidity. drybulk the leaseback sale is These leaseback $XXX.X new financing, the following As XX the These additional be $XXX million the $XXX can loan by million you are NSM refinancing additional for for existing financing million and secured notes, million loans and of seven ways. its mortgage the NSM slide, the ship vessels. of support under from charters from the will provide vessels and see XX sourced facilities through sourced

ship credit collateral it the remaining for Navios security facilities. million as $XXX approximately commercial mortgage the of released Holdings notes and to First, cancel collateral million allowing of $XXX.X grant

Pro during junior will XX of for the notes targeted These debt XX secured for it We will NSM senior efforts mortgage the our be X Navios debt deleveraging At large like remove would financing first amortization. an ship George? of tied pro details shows or amortizing a concern debt no which Second, redemption in by debt we for CFO, almost structure Slide will month the deleveraging of the Navios had extinguishment form requirement million. provide reduce partial more period, of debt $XXX to our for we the There period debt will we interest the and post will over forma in provided months. this year-end maturities paid XX% notes, a immediate to the be will be cash in financing. there effort. new initial as debt. instrument. new to due XXXX, our billion new Interest $X.X Achniotis, I no NM respect maturities. risk. carving George to believe refinancing of approximately also cash path be who Mr. are now servicing the reducing call turn loan Holdings forward forma Holdings

George Achniotis

the Please Slide new turn to more Thank to facilities. you, financing discuss Angeliki. in detail X

debt As $XX secured million available facilities. notes mortgage of due ship following cash, the senior obtained month Angeliki $XXX.X of used which be million due is explained, August next of will This in and financing of with have retire $XXX.X financing, we of million comprised XXXX. along to composed notes

of bears term X.X-year facility to profile First, $XXX facility and million two and with margin by Hamburg reducing vessels. will amortization LIBOR It Commercial seven Bank. initial based X.X% plus term loan be drybulk a a on secured year certain X.XX% The interest has conditions.

BNP will $XXX seven Second, Credit certain of a interest million profile vessels. term a loan and X.XX% margin amortization has facility be LIBOR X.X-year conditions. It Paribas. term with to a This drybulk plus secured three range and facility of by X.XX% and year Agricole bears based on

agreed a are upfront Holdings paid release basis. convertible about in and be of drybulk The voting an profile for fourth, a the will XXXX. The has NSM of collateral independent QX two for of agreements. negotiated offered by to X.X%. to with $XXX.X $XXX all million. The no of liquidity, additional of an a XX months and notes of on no banks. XX enable disinterested and amortization Third, the to equity years, senior and an XX.X% sale in repayment agreements effective loan of further mortgage notes, paid Navios as NSM have that having PIK years I of $XXX the facilities form and facilities XX%. of seven interest of facilities and reduces ship a of and one months vessels The rate of X.X rate is rate quarterly cash and note term were sale debenture, million amortization have common PIK a Note facilities after of convertible million facilities X% commercial term million bareboat refinancing, of to which leaseback in independent of PIK if And loan interest four the call, and total total In be X-year to for leaseback of average shares an fee in $XX follows. amortization collateral term, reduced million PIK a as-converted into XX.X%. its as $XX $XXX seven an interest additional PIK order canceled; and this $XXX.X of here cash provide interest vessel commencing average million years, committee members advisers. of the to or million that Board and

Moving $XXX will of and to mortgage credit $XX the of X, notes the $XX $XXX million as redeemed be used will balance which million to release of And about will the remaining facility be notes. $XXX at $XXX of bank secured to notes the two notes the XX, demonstrates $XXX be almost secured million held finally, the of ship In the June redeem million million extinguish the XXXX, of will reduced currently senior senior used million to to from notes. NSM ship cash ship available will by mortgage Slide chart at million. million new $XXX the from $XXX will QX, be facilities we the bottom be how slide new million NSM senior collateral, notes. and used extinguish mortgage canceled.

provide potential X, company of the XXXX. we calculator Slide flow to the Turning in generation a for cash

see Almost market almost the charters. on as the or open $XX,XXX index-linked XX,XXX day. The have total at fixed fixed at on days about of exposure bottom they available we are remaining in or have XX,XXX days days are the either can you XXXX. As chart per of slide, X,XXX XX% the

in of market open the This favorably If per XXXX, new which of a the the turn is $XX,XXX. in XXXX. index day to $XXX The XX, nine at the the highlights table for quarter to the with Holdings months year at more increase the time in QX the of you EBITDA. months quarter is achieved slide, the in $XX,XXX the rate right to Slide EBITDA $XX,XXX approximately their income of is nine to the To which QX of than was $XXX million including of first day, for achieved expenses, service, adjusted all increase million for now in $XX September increase in breakeven is weighted of $XX.X per EBITDA in it bottom than TCE a currently $XX,XXX, the the charter put double quarter cover million double Please to EBITDA compared the mainly attributable to almost Navios XXXX The million of the current $X.X record index debt equivalent the our QX adjusted mainly look day. compares the about financial adjusted achieved In net XXXX Net days. this open more our in had we million XXXX. about income XXXX. the for XXXX. is review of XX QX perspective, the due was rate

nine the to than which relating EBITDA months and period, to achieved attributable of in results. the net to nine $XX.X results, for EBITDA in day month adjusted in increase QX QX rate merger $X,XXX in was double the Containers was increase mainly to time of XXXX for compared increase compared seven XXXX. the nine was income adjusted affiliate million Partners XXXX nine and nine equivalent million to the due charter $XX,XXX The XXXX. Navios the Adjusted the the million exclude the in months the to Adjusted in an loss in first loss per to first million of Navios adjusted $XXX.X million $XX the $XX.X the companies was increase income $XXX.X XXXX. EBITDA. vessels. mainly EBITDA in of $XX.X income and net more to was months net Similar for months impairment Turning achieved the in due million, to of were

and Slide XX to sheet highlights. Moving our balance

sheet As year. have $XX.X million. of the back balance and reflecting by during September Senior ship notes XX, mortgage $XXX bought secured the XXXX, million, notes our balance cash decreased the was on

the we expected new million the of senior the for Finally, the at debt of profile present discussed the bottom slide, financing pro ship maturity notes the notes, earlier. and forma repayment new mortgage $XX of the secured redemption the

have due you any American maturities. significant do Logistics As see, secured have staggered in can exception we South Navios of a the And and notes single of our we extended maturities XXXX, not year. the with in

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

Ioannis Karyotis

barge be Navios Logistics provides river operates overview for for which cabotage XX. George. EBITDA attributed coastal In complemented continued quarter Adjusted was Slide XXXX, terminals, to transportation third in a economic are to the river deteriorating turn product impacted three to Logistics. the weak of market Page million. and Please XX by operating performance soft port fleet Thank of cabotage tanker trade. $XX.X an you, fleet conditions. environment our our by Navios and Argentina

logistics in quarterly loss certain adverse our port essential financial Because EBITDA Uruguay regional from Palmira a chain. has highlight port assets suffering has number year we assets. exclude are in This as levels draft adjusted conditions located Nueva adjusted are compared at million to Parana These through the mouth River. played of been from result, our of role disposition the ports been to the driving $XX.X within our revenue unaffected XX terminal. is the Argentine port water river, that the And additional low a the loading the

For which This QX attributed operating to decrease during grain decreased income XXXX, recorded the segment settlement. was lower time EBITDA XXXX, port million. $XX.X $X.X in a the claim compared by million other to XX% port to QX adjusted

performance not Excluding that to levels major from Low our other Argentina River the port their only income, certain of same the to effects our port cargoes water effect grain in internal competitive our lasting meters but would because than customers caused this believe performance draft Parana compared operating We of loading year supports as port two ports. advantage of to the is have show long this last requirements. period segment an year. our divert improvement customers almost that higher reengineer Argentine logistics the

EBITDA On during and the our tons. XXXX the X Vale the adjusted Despite solid QX to we both In to Vale last the by trips through the ore, capacity longer volumes decreased conditions adjusted and been of water our the of operating $X.X Argentina. port iron The In environment XX% $X [Indiscernible] have volumes impacted adversely the for million iron primarily is decreased quarter, $X.X minimum continue guaranteed QX limited from terminal to levels XXXX economic are cabotage drafts, reduced continued higher per transit had and quantity the as in vessels tons adversely of ore challenging. be our be revenue million. million demand decrease The quarter of in operations Corumba to have to segment, attributed levels. The moving for per and year. from lack same costs. side, affecting carrying year. contract, [Indiscernible] to low the water River EBITDA period decrease due XXX,XXX because profitability during million around and export market, some is low bulk barges by weak take from completed. employment to

compared to profit has in third $X.X taxes. was adjusted to further loss noncash impact period exclude million the million For $X.X $X.X for of of been XXXX. the Loss deferred quarter million the adjusted quarter XXXX, QX the for adjusted

month Turning debt financial XX. to $XXX.X unchanged results has XXXX, million. million turn the $X.X Adjusted Please maturities XXXX. at and ending XX, nine adjusted EBITDA was was Logistics until Slide significant loss for to revenue million. period was no $XX.X Navios the September relatively

cash end $XX.X and equivalents were the Cash X.X%. quarter of of third XXXX yielding par, above trading is bond Our at the million.

to over During Petrone. would shareholders. a of like distribution now Ventures made to I Ted the S.A to call we turn quarter, the Grimaud dividend shares our

Ted Petrone

been the in aim aspire industry we zero by certain and vessels it Slide In mode deadweight; the Group of The consisting up age carbon-efficient our first friendly years We XX advance, most to highlights total Navios be Slide average X.X turn to average. emissions and two is to younger vessels tankers are process, include ESG have compliance. fleet socially effective XX which XXX XX and is is XX XX transport. of energy most than provide We pioneering fleet container Maritime initiatives. safety. million and X XXXX. inclusion one XX% transportation we our environmental as of whose fleets this of group and have regulations fleet achieve full corporate and vessels. core Navios adopting XX of values diversity, that includes ethics. a shipping years, the environmentally X.X is drybulk to maintain of Handysize. turn vessels, the Supramaxes diversified means procedures governance XX, Capes, XX and Please conscious XX. X Panamaxes, the of totaling to presents and Please a code policies to clear Slide drybulk

infrastructure composed The a for that and in X.X% committees X.X% continue and The led by continued Drybulk rose to projects and XXXX independent XXXX. oversee further should turn and XX Please government our is Our highest stimulus Asia. asset trade is for increase classes in support in in at in Rates years all global is economic independent XXXX. for projects expansion to projected the and rollouts, increase by almost X.X% X.X% both quarterly 'XX IMF rate GDP XXXX driven is in was and Board the growth. XX. commodities. developing major and China, and The directors operations. Slide of X,XXX, for minor QX sharply demand growth fiscal by average surging Vaccine BDI highest majority XXXX. management reflecting by in strong average trade India a bulk 'XX X.X% to for

volatility, to increased in on continue iron to Brazil, recently, X,XXX $XX,XXX long-term out in demand rates X, in XXXX. under October highest growth above the level More remain early increased to well ore reached is by averages exports rates October. forecast net of outpace despite BDI as just Capesize led the fleet pushing fact, In XX years

the X.X% measures to and growth for iron an XXXX. demand XX, demand increase economies in Global to year, Slide expected ore. in X.X% fueled China in advanced ore to by economic is post-pandemic Turning has this stimulus increase iron

Additionally, are ton in availability expected and for of resilient exports XXXX Capesize driving demand X.X% China increasing miles to increase to by vessels.

to growth Asia, Slide X% ore X%, in for the is import to turn are grow the in grow China, coal world trade iron of China by expected Forecast iron are seaborne recede. expected for X% imports XXXX. expected more XXXX continued to and in x pandemic by Please to Europe's X% World and XXXX as is imports ore. XX. excluding effects

account seaborne coal X% of by Asian coal to this trade, XX% to an XXXX pre-pandemic Energy the imports, in expected in high exceed rise X% nearly and year coal-fired and by to X.X% are further in the over global a According world's for is International Agency, increase therefore, expected electricity XXXX. generation X.X% all-time which levels, to XXXX. increasing

over to Overall, below the mainly is fleet age of concluding, projected fleet. fleet, continue the for concludes food security only at X% at call X.X% Angeliki? natural net X.X% and X.X% healthy now growing forecast Turning resources, compares low outpace and growth an support demand at to logistical by comments. previously trade. driven are for This freight levels a grow at demand of the further drybulk by to well demand is of expected the newbuilding and world pace deliveries, as XXXX like ever-increasing favorably the Angeliki order in XXXX. combined support in protein to on global The and final XX over continues to for forecast continuing as Vessels book stands about XX. COVID-related the population, slowing since of XXXX presentation. growth current been trade for the one net lowest XXXX XXXX. XX, fleet of would to to in CAGR as which with driven expected grain my by is mentioned all current issues increase demand, of both the to I X.X% order increase XX.X% years. X.X% the total years has in future Asian XXXX world In is strong which disruptions book. record with Please X.X% in rates. Slide trade turn grain turn Worldwide by worldwide to grain Slide her increasing demand pandemic XXXX

Angeliki Frangou

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

Operator

we Nokta [Operator take will Securities. question And Instructions] from with Clarkson first Omar our

open. Your line is now

Omar Nokta

you. long coming, packages. financing time Congratulations Thank guys. here. and these different there. Hey you're Hi, I it's Yes. a finally on know been

January here about bonds feeling of million you've taken maturities? out You've care a the Wanted come you maturity definitely taken of $XXX guys as 'XX? those due remaining the are How well. and how of ask August chunk August in to you that the maturity thinking are about

Angeliki Frangou

morning, Omar. Good

is, to runway we So ship see very it coming liquidity refinance this breakeven basically is you low we $XXX the market. -- are $XXX see mortgages. the we the over is and take and said, address good of an what a provides we us million what $XXX that healthy provides market, of immediately as have In August we about sufficient maturity, down XX,XXX the because environment and We immediate where million did we addressed And that to care is with a maturity to million, XX,XXX it sufficient days. a available healthy see continuing. with a drybulk of the

said still COVID have suppliers the that in restricted place. inefficiencies We are and --

and to that -- remain runway will outstanding August have million So basically, liquidity XXXX, XXXX address $XXX the August sufficient we sorry. of in

Omar Nokta

you backseat to of into until call you're you place. I look into here. in more that closing about doing of priorities broadly, Thanks Anything willing about substantial, prior that In different Angeliki. refinancings we're guess we when a get we Understood. -- very that strategically we Holdings, or pretty you'll it, in close a another that strategic have In the XXXX, holdings for past, there. mentioned taking at transactions. And future feeling as the the are the very We're you're maybe, Navios conversations, think get so much a month share? takes when Yes. standpoint from you How these as restructuring, NM terms and have of 'XX? something strategic guys takes highlighted

Angeliki Frangou

say that very one that to time. is would commodity, I precious of I is package with got like this think say would a we I what refinancing -- commodity thing the

took the We with have And care $XXX all we staggered created we imminent time. We four of reduced what years' have we maturity, this, million. debt, we -- maturities. got over

have We nice fleet. a

We flows see time options. get cash our and to the have nice the strategic assets, and this us gives

Omar Nokta

Okay.

more a have -- So about evaluate having of now without you to refinance. the time worry to

taken Now care you now come focus up that, can the actually long-term that's of, and plan. with

to So look guess as here in the ahead here we few I next more come months.

Angeliki Frangou

runway the history liquidity see Yes. that I mean we quarter and burden of Navios took care is provide developing We and And of demand, it these we imminent time sufficient year company a the reported options. a our drag. us was best and maturities forget, the really the actually in that will don't big we see whole really best this and well. strong for and

George Achniotis

if may. Good Omar, I morning.

thing address, wanted one dilution. we I people So to that have expressing about the heard concerns

to will be very have like Yes, company. there a would mind. burden alternatives of you debt overhang. that, but address financing one I the what put a with were dilution if regular you No company reach. big was out I don't So to in willing consider for equity mean was to the

hedge bankruptcy. going seen of two, the a options have or funds to were to our go either bankruptcy, and to peers into going So basically we distressed number

would equity the completely either So in case, wiped out. be

It But maturities Angeliki XX-month importantly good next in, and what also of terms unreasonable. of bank By month not So financing. new said. repayment is NSM has the given releasing in stepped it its that more market. facilitated very runway a the are the an company in collateral, the

build years. we and capital the last debenture the I structure to out, So chance expand delever, the night for closed up cash $X.XX, $X.XX. price share couple thing price revisit is And our in at our the the conversion wanted fleet a last point or have to of and position, renew one

option price under water So moment. at the the is the

Omar Nokta

Understood. George, alternatives, being weren't of especially I the cover. Yes. much collateral in agree many with with not and Thanks brought capital there significant that amount that

as turn George well. I'll comments, and Angeliki it your appreciate So over. thanks

Operator

That for questions or for is the additional remarks. turn today. Angeliki back to I all over we program the will have any closing

Angeliki Frangou

This Thank you. you. QX completes Thank our results.

Operator

you conclude participation. for does program. This your today's Thank

at disconnect You may any time.

Navios Maritime (NMPRY) 18 Dec 212021 Q3 Earnings call transcript