NM - Earnings call transcript Q1 2022 | Navios Maritime Holdings Inc.

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Operator

Good morning, and thank you for joining Navios Maritime Holdings First Quarter 2022 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. Strategic SVP, and Achniotis; Planning, Mr. George Karyotis. Ioannis now the over call Ms. to I'll turn Guerrero, through statements. safe you will conference Daniela take and the who call details harbor Daniela?

Daniela Guerrero

you. Thank

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

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

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Operator

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

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

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

Angeliki Frangou

$XXX.X joining $XXX.X $XX.X ship of Navios first results Michael, quarter, XXXX. repaid notes. on million you, revenue the for of Thank of quarter million. quarter, you call. mortgage reported us first In I'm shortened EBITDA the good all to of with we of the morning today's In pleased our and million, first

redeemed in senior far, million Today, the And XXXX, the have market so healthy. is of we secured notes. $XX

XXXX. of the quarter first than higher the are for quarter rate charter Our XX% over of XXXX first

headwinds rates interest from and in Ukraine the However, there inflation. are war and rising

Slide to Please the overview markets X this of can closely turn We turn Navios as are structure. for watching quickly. an

across of As Navios Navios an you owns drybulk U.S. of XX age of XX.X% Partners infrastructure the X.X publicly years. logistics Logistics listed Navios company Holdings recent million. an average of with XX.X% one is vessels in XXX and companies Navios a region. Navios can maintains leading segments. the largest is Holdings development. three Slide the ownership $XX Partners Logistics. South Navios with see, operates highlights X Hidrovia shipping approximate Holdings value vessels American with Navios in

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

achieved $XX,XXX day time During our of Panamax Capesize vessels. per $XX,XXX vessels for for quarter, a the charter also Ultra-Handymax rate we $XX,XXX vessels, first for our and

buyer is consent it conditions the the Navios. announced system relates Midwestern Vale the obligations. sale port in prior Vale The its contract of the and contract terms of the by counterparties. Navios Any and and includes to logistics effect, is of to applicable the take-or-pay of in logistics the Vale contracts, sale change full subject to from the remains approval port to the Vale subject to assumption assets J&F Logistics, the The mining Group. it's As performing

Ioannis flow significant dominated The has detail. we the cost and be to through condition We grain human longer negatively and are events, market ongoing seaborne performing and commodity distances, transported levels chains Logistics averages. global impacted trade. barge pandemic-driven the is to uncertainties. Commodity we are while know thereby will the Slide will current These alert governments as and well, policy. days Karyotis having impacted, needs. business with go their but you war our X geopolitical over currently ravaged third backdrop adding fleet zero-COVID for of chartering cash terminal more. of been the operating X The potential by China continues month, supply satisfying port strategy operate by X,XXX historical situation vessels months below draft an in in is but demand XXXX. short-term the market by through continues at with fluid, remaining the of rates. have in available on its the abide XX as to expected, is segment performance in generation impact ton-miles. been goes Navios has are lives, river, A full commodities Ukraine diverse by

XX% of rate months XXXX, charter our average far, the day. at for $XX,XXX So fixed days available of we remaining time X have of an per

per and XXXX, index $X,XXX rates, open the is day. on days, breakeven the for rate weighted X our day. of is total rate per current based $XX,XXX For The at average months remaining open fleet market

of As days positioned spot to market, to market are exposed available available capture we the XX% our upside. are

I Achniotis, through turn go financials. will Holdings would Now call to the like the to Mr. over who CFO, Georgios Navios George?

George Achniotis

of Thank of of Please of the 'XX. first the a 'XX, of rate of 'XX. million charter period was In Mortgage was you, that day Net to quarter million. the equivalent QX, The recall, increase loss we to highlights of was time per achieved due to in quarter were will compared a XX%. the to for XXXX. million million in X compared in $XXX.X EBITDA Notes which $XX,XXX in increase XX% adjusted Angeliki. Ship EBITDA of attributable QX $X coming increase turn for repaid an period, mainly EBITDA the $XX,XXX $XX.X you of financial in $XX.X the QX January review Slide in for is

secured the the form a net we debt, notes. And so maturing package, and was that million financing caused the what have for far repair to $XX fee retained year, in secure paid this of adjusted is the in we debenture, a was highlights to balance million quarter. loss convertible of loss improvement necessary EBITDA. million, now $XX for The the million of are turn $X.X To to presented. Slide where X, improvement an in due $XX the million net sheet Adjusting net income compared 'XX. mainly to the $XX senior Please

XX, million, $XX.X the with in the March full portion, were $XX.X Senior by had the million to $XXX.X trustee by January XX, reflecting obtained Ship new partial repayment in of Notes the bond. and December the $XXX.X Notes the of to Ship reflecting XXXX, the our debt the increased million deposited current that Ship notes of December we and Long-term of at Mortgage reduced including in million $XXX.X repaid NSM in senior cash the repay compared Mortgage balance repayment and loans January. quarter. debt, million, Notes 'XX. The As Mortgage includes bank

exception single secured see we the Logistics the the Ioannis have notes over bottom can results. concludes maturities. the you with review in any I At August, of the American turn call this here for at Karyotis on presentation. Ioannis? chart As this the of Navios will significant don't point, my to his near-term the other South slide, of And

Ioannis Karyotis

location $XX.X trade. X driven segment for compared Thank XX% port XXXX quarter product Navios transportation by $XX.X overview EBITDA Navios EBITDA Page of X. cabotage coastal mainly a QX Please Port higher turn to fleet to operates you, XX% Logistics. for which provides grew Slide terminals, tanker was river to complemented are George. Logistics year. same million, an million, and last by fleet the X% three of over we our barge the region. in additional a for other for revenue And ports the river. ports This our port to of is due grain more quarter, loading to Uruguayan and is the our driving throughput. river significant of port unaffected most at the the exports The experienced attributed draft draft higher top-off wheat is advantage This top-off mouth in Navios terminal. increase volumes.

with coincides an terminal. and region. have stronger volumes increase peak port in drive harvest of Uruguayan our We export from season last year expected entered export now the that from soybeans the is to the be grain and production to grain for the than

which April, the to news take-or-pay arriving On the is Paraguayan their would the to related the the discussed the from started first sale cargo from other trans-shipment decline is We been one only Vetria. Midwestern quarter, our already the At in according volumes. terminal by production regularly starting iron has loaded adversely operations Vale ore the damaged we impact in their in performing Vale contract. USDA, expected but system. obligations mainly the of hand, terminal, and, vessel to XX%, under new at

you keep limited of had drafts carrying affecting The historical capacity to a segment, stable will continued are difficult the EBITDA have XXXX QX reduced of to below averages. any profitability compared on complete. quarter draft back liquid navigation port remained performance The condition levels first the updated river of and as take barges operations decreased as longer material trips the and million barge to and $X.X We relatively water development. In low adversely XXXX.

In the affects $X.X XXXX this soybeans demand our decline to bulk to employment services, dry Paraguayan cabotage million, the X% in in year. which the improved the freight increased transportation the of In environment for business, addition, the rate QX the cargo fleet. last Argentina as year has compared of river market reduces and production EBITDA

loss year, of to turn maturities first were cash now quarter XXXX. turn Logistics to Please last Navios in at costs I to Petrone. mainly XXXX, due debt like the XXXX to end finance QX compared of period the over XX. million until was $X.X $XX.X equivalents For same the to Cash million the X.X has million. net. significant profit and would higher Ted call Slide no

Ted Petrone

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

our since oversee independent that majority of to BDI mostly sub-Cape disruption in QX management the average Board in Our Slide the Despite turn composed and of Please by Ukraine, by strength highest sectors. is XX. the and caused driven the in operations. trade directors achieved XXXX, independent war committees the a the

to posted container is demand in bulk trade Dry and XXXX last X.X%. sector by XXXX an expected of the significantly get Supramax to cargoes. the in ton-miles reduced redirected on boost the in highest as is increase from since away of of QX exports back line be in Europe. the happen grain Similar to coal of increase are to and year, second grain the the an most average fact, and additional of Ukrainian stronger Russian year, exports assessments with In bulk half expected began overflow projected

second coal investments routes normal worldwide XX.X% Australia iron plans to of to expected natural the of Brazil infrastructure China Seaborne world ore Please maintain with New seasonality trade further X.X%. and stronger the growth on projecting XXXX Slide to prices. the exports to in by demand of targeted emerge as gas increasing GDP with longer increase as XX. XXXX, half the high trade back extraordinarily seeks turn cope is

currently affecting COVID Chinese negatively lockdowns However, steel are production.

by imports a tons power XX India the ex-China low. XXXX. rate inventories an imports ton-miles coal of by pandemic gas 'XX more expand growth The coal about XX. to X% to are generation, turn imports offer expected demand will increased by Please the is as ore of Asia, Forecasts is the prices coal Please for to power iron and as coal-fired to Slide and half recede. excluding oil expected ore, support Seaborne grow pattern of China, plants gas at Europe's X-year And 'XX expected price of X.X% the XX turn increase switch grow will half in war at coal expected 'XX. Slide the back X%. or over Ukraine helping iron million imports current X.X% seasonal import iron the global ore as surge to first follow driven X.X%. XX. second same to has imports. in High than effects to are as in

population, Eastern world and On worldwide the of continues war now side, the grain global rising ever-increasing initially be security trade wheat food grain fields driven the Europe. to the by issues, by pandemic and demand protein and corn encroaching supported heightened on by

in ton-mile decrease stands Please by trading for X.X% the will The expected at at current uneconomic of Although for patterns rates. now combined tonnage only her grain, expected fleet inefficiencies COVID-related is like years XX. Vessels owners is of a healthy of a of turn slowing deliveries, to favorably as war Angeliki? be Ukrainian order presentation. crisis, historically XXXX X.X% the only turn 'XX for call natural on total global Net decrease seaborne due support age with trade to final book. the trades the lowest remove about positive fleet, COX Slide X.X%. result concludes I continuing will the concluding, new compares will pace to one to in which the growth and the in record. of newbuilding Angeliki and all over 'XX fleet for fleet, as IMO come X.X% 'XX XX over book X.X% the into X.X% would freight force. and coal with low longer-haul resources, are order of In demand and sanction-related comments. quite to This my that

Angeliki Frangou

This you, our Thank to Ted. formal open the and questions. call we presentation, concludes

Angeliki Frangou

Thank results. you. our This first completes quarter

The our we in ton-miles we environment. of had XX% this reflects than QX healthy past the and been reflects XXXX. good the for shipping. longer in in higher have rate today, that rate the inefficiencies first For And quarter, seen current and have the

other war are and Of policy course, are mindful we zero-COVID geopolitical are Ukraine markets. prevailing China interest events and rates of that that and affecting increasing in in

results. So This QX our you. completes thank

Operator

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

You at any disconnect may time.

Navios Maritime (NMPRY) 20 May 222022 Q1 Earnings call transcript