Q4 2020 Navios Maritime Holdings Inc Earnings Call
And earnings conference cool. Leave us the day from the company our chairman. And CEO is Angelica frangou Chief Financial Officer Mister George achniotis Vice chairman. Mr. Petrone and Senior vice president of strategic planning mystery honest karyotis, as a reminder. This conference call is being webcast to access the webcast. Please go to the investors section of navios Maritime Holdings website at ww.w. You'll see the weakest link in the middle of the page and a copy of the presentation you referenced in today's earnings conference call may also be found there. Now, I will review The Safe Harbor statement this conference call could contain forward-looking statements within the meaning of the private Securities litigation Reform Act of 1995 about mothers hold for looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations and lavish phone number.
Management and are subject to risks and uncertainties which could cause actual results to differ from the forward-looking statements.
Such risks are more fully discussed and I was holding filings with the Securities and Exchange Commission the information set for hearing should be understood in light of such risks now is home does not assume any obligation to update the information contained in this conference call. The agenda for today's conference call is as follows. We will begin this morning's conference call with formal remarks from the management team and after we will open the code to take questions now, I turn the call over it and have his Holdings chairman and CEO. This is Angelica Frank from Chile Ki. Thank you. And good morning. I am join us on today's call. I am pleased with the results for the fourth quarter and full here 20 20 for the full gear of twenty-twenty navios Holdings reported revenue of 416.7 million dollars an adjustable David hundred fifty three point four million dollars for the first quarter navios Holdings reported revenue of 102.4 million dollars and
And after the middle of the seven point six million dollars, although dry bulk the month in the first half of 2020 were shared by the global pandemic and many economies are down fiscal stimulus. Another policy measures help Global economies Rebound in the second half of 2020 and throughout Q. One of twenty Twenty-One as the global allowed continuous. We believe that in a collection along with the policy measures taken to date with properly kanamit activity and indeed the IMF recently increased each month for 2021. GT be closed consequently. We are optimistic about the demand for dry bulk vessels throughout 2021.
Please turn to slide for novice Logistics continue to grow its Port business developing critical infrastructure for trans-shipping minerals and Grains navios. Logistics wage has grown into a leading infrastructure in logistics company in the history of the region in twenty-twenty The company generated about 92 million and adjusted ebitda wage and maintains a 56% net that capitalization for the full gear of twenty-twenty navios logistics also continues to pursue the process of becoming a publicly-listed the stability of the underlying business can be seen in the dating levels of the bomb which trade at the Primitive part to hilde around 6.3% off in 20, 21, navios Partners required navios containers, then large company is a top 10 public listed company in terms of dry cargo Fleet and a member.
Is about 900 million.
And the remaining contract revenue and low level at 40%. To book a reservation as of two for lastly navios off. Thank you for company generated about a hundred ninety million in 2028. And has about five hundred million in long-term contract with Revenue 1/5 layout War GDP growth since nineteen seventy S as you can see from the chart the IMF expect Global GDP to grow at about 6% in 2021.
These would be the highest GDP growth rate in the past fifty years importantly the percentage increase perhaps understates the impact for example the normal life to be in 2019 equal to about $88 billion almost thirty times the global view of the trillion in 1978 understand this magnitude consider that the amount of growth is here will be almost two times the entirety of the 75th Edition development during Q4. We generate the hundred two point four million dollars in revenue and 37.6 million just debate. We also achieved an average times are delayed today of $17,553 for a capesize vessel eleven thousand nine hundred eleven dollars for a panamax vessels dead.
In 9405 400 handymax vessels as an update where S&P activities we have short three vessels and have a great to sell an additional blessing for the combined sales proceeds of fifty six point six million dollars in 2021 will be paid 36.2 million of Bank facilities navios Partners completed this merges with navios containers and now consists of eighty six devices vessels novice ownership in any after the merger is 12.6% off the market value of 74.7 million, as of April nineteen twenty Twenty-One. See I had seven goes to our chartering strategy and potential operating cash flow generation of Garden Market rates are diverse Fleet comprises of 45 vessels has 15,000 767 available days 4:20 a.m.
Do you want our operating break-even is estimated at $17,472 per opened a the total weighted average rate for home plate open in index days based on current market rate is $25,203 per day as 51.7% of them available date. I exposed to the spot Market. We have positioned to capture Market outside like eight highlights a liquid position as of December 13th 2020. I made that book of it was 95% and we had class A Hundred eleven point two million dollars. I would like now to turn the call over to Georgia noticed navios Holdings CFO George
Thank you and get again.
Please turn to slide 9 for a review of the navios Holdings financial highlights for Q4 and the full year twenty-twenty adjusted ebitda for the quarter was 37.6 million compared to $74 billion into 4 of 19. GB net loss for the fourth quarter were adjusted to exclude 60.5 million impairment losses relating to some of our vessels and 15.4 million impairment loss relating to our investment in Ibiza acquisition ibadah net loss for the full quarter of 2019 or adjusted to exclude 130.6 million. Is relating to some of our vessels.
The decrease in adjusted evil eyes met a tribute to the lower time Charter equivalent achieved in the quarter compared to last year and thirteen point seven million gain from the purchase of our bonds in June 2019 in Q4 of twenty-twenty. We also had a lower contribution from our investment nebula South American Logistics and our Affiliates mainly due to an NA wage adjusted net loss for the quarter was 20.5 million compared to adjusted net income of 19.4 million in 2019. The decrease is mainly due to the decrease in adjusted 2 p.m. And a 4.6 million increase in interest expense telling to the full year results adjusted ebitda for the. Was 153.4 Million compared to two hundred seventy three point nine billion in 2019-2020 be done net loss or adjusted to exclude eighty eight point four million impairment losses laid into tribal vessels the 2.4 million.
Benjamin loss relating to our investment acquisition the 18.3 million impairment loss of our investment in navios Europe to both directly through our affiliates with 4.2 million right off of different Finance costs in clear that Microsoft America Logistics and 1.3 million vessel impairment losses incurred in our affiliates.
The Tick is not just a TV that was made attributable to the decreasing the the Chiefs in the. The 36.2 million High gain from the repairs of our bonds and 29.
I just didn't notice for 2020 was 67.5 million compared to adjusted net income of 53.9 million 2019.
The decrease was mainly due to a decrease in ibadah and a thirteen and a half million increase in interest expense. The decrease was mitigated by ten point seven million reduction in DNA expenses.
Moving to slide painting or balance sheet highlights as of December 31st 2020. The cash balance was about a hundred and eleven million compared to about $79 million at the end of December of nineteen senior and ship mortgage notes about ninety-three million higher than a 2019 year-end mainly reflecting the new notes issue that maybe South America Logistics
long-term debt
Because my Seventeen million mainly due to the repairmen of the Legos of American Logistics Term Loan be long-term debt decreased further into one of twenty Twenty-One following the same bank facilities of navios Holdings over the next slide. I will briefly review our Affiliates. Please turn to slide 11 the merger between navios partners and navios Maritime containers was completed on March 31st, 2021 the transaction Bill scale through a larger Diversified acid base with an increased earnings capacity and the member across the way these expressions and it's one of the top ten dry Kar KO publicly-listed companies approximately half of the drive axles and the other half is containerships.
They are large entity will also benefit from a simplified Capital organizational structure. Thereby reducing costs.
following the merger navios Holdings owns 12.6% of navios Partners
10/12 navios Holdings owns about twenty nine and half percent of novels acquisition anime has a fleet of 51 tankers including 13 vlcc inside container ship that I can force a the pandemic has had a material impact on the tanker sector early in 2020. They need for storage drove tank each other at a tire as the Panthers progressed the recession in the travel industry, which Drive significant growing demand affected your own transportation.
Why is the Outlook is much brighter now with countries willing to vaccination programs in the travel industry showing signs of Revival the market Still Remains difficult today?
La Tolteca Nicole over to do this for his review of the live in South America Logistics results Janice. Thank you George thirteen provides an overview of navios logistics. We just you know, you said Consolidated subsidiaries Holdings in a reportable segments in other Holdings financial statements.
Now this Logistics operates 3/4 terminals, which are complemented by our bars flip for River Transportation and product tanker Fleet for Coastal cupboard straight.
Asking know from a recent press release. We commenced the process for a potential registered public offering in the United States and the B3 Stock Exchange in Brazil subject to market conditions and other factors in each of those markets as a result. We are in a quiet. And will not be answering questions with respect to another Logistics business or Fiber account.
Now is logistics. His transition is financial reporting from u.s. Gas to Wi-Fi starting from the year ended December 31st, 2020 as a result. All of this discussion will be 9:30 is our 2020 adjusted evidence was 91.8 Million.
Last year, we agreed to transport one point five million tons of iron-ore per year for Victorian for a one here. And then option to extend for a 6 months. Um, there's navigation conditions caused by low water levels in the heat of the system last year. Only about 62,000 tones were actually transcript in 2020. This year's shipment favor assume as navigation conditions improved.
Vallley recently notified us that they expect to transcript one point seven million tons of minerals through our board in 2021 compared to approximately 1.2 million tonne most in 2020 our contract with Viola guarantees a minimum quantity of four million tons, annually.
We recently loaded the first-ever baby capesize vessel of hundred and twenty thousand deadweight tones at the navios. I don't know terminal. Our terminal is the only dedicated independent either not receiving facility in the region. In addition. We are the only facility that is capable of receiving a vessel of that size providing a significant freight cost advantage of other facilities.
Manage notification the Vittoria contract and other discussions we're having for logistic services are signs of increasing exports of minerals through the he drove a river system off. All of these should benefit or Port Terminal and the bus business of her own.
During the first quarter of 2021 our newly bit 6 liquid barges commands their five-year time Charter contract from which we are expected. We expect to generate approximately 4.7 million annual.
In March 2021. We concluded the previously announced acquisition of three Billboards and 18 tank barges for 30 million. The transaction includes a contract of afraid for transportation or a minimum of 1.25 million cubic meters of you'll during a period of up to five years. We expect to generate approximately eight million annual wage from transactions.
Please turn to page fourteen in 2020 adjusted decreased by 13% to 91.8 million from 105.3 million months. Last year 2020 Ford segment adjusted decreased by 2% to 69.8 million. The decrease was mainly attributable to lower throughput in the Grain Terminal do to reduce Uruguayan exports affected by lowering solving production and reduce transshipment of grains, mainly from Paraguay and Bolivia off because of the difficult navigation caused by the low water levels in the blood segment 2020 adjusted evidence was 7.1 million compared to nineteen point four million 2019. The year was directly affected by the historically low water levels in the Parana Paraguay Rivers, which have hampered simply volumes and navigation.
You know.
2020 adjusted ebitda increase by 2% 14.9 million from 14.7 Million last year mainly due tomorrow operating days and lower costs.
For 2020 adjusted profit for the here was 15.8 Million compared to seventy two point seven million in 2019. This decrease was mainly attributed to lower operating profit and 7.7 million height and finance costs May due to the amusing or notes.
Plese tend to slide fifteen novels Logistics has a strong balance sheet with no significant maturities until 2025 cash and cash equivalents at the end of two thousand wage where 74.9 million compared to forty five point six million at the end of 2019 net debt to book a reservation was 56% I would I would not like there is a call over to test the tone.
Thank you. Johnny. Please turn to slide sixteen by sixteen highlights r e s g initiatives Maritime shipping is the most environmentally friendly means of transportation as it off the most energy and carbon efficient mode of Transport. We aspire to have zero emissions by 2050 in this process. We have been pioneering and are adopting certain environmental regulations up to two years in advance and we aim to be one of the first fleets to achieve full compliance. Navios is a socially-conscious group whose core values include diversity inclusion and safety package maintain policies and procedures that provide effective corporate governance and a clear code of ethics. Our board is composed of a majority of independent directors and independent committee that oversees our management and operations. Please turn to slide 17 by 17 presents are Diversified dry bulk Fleet consisting of 45 dry bulk vessels totaling $5 million dead weight.
16 capes 23 panamaxes for super Max's and two handysize you continue to be one of the largest u.s. Listed drive both fleets established over 65 years ago. The average age of the name is 8.2 years 23% younger than the industry average Irish Group total Fleet of 190 vessels, including 95 drybulk vessels 54 tankers and for how long the vessels navios is a highly Diversified public shipping group.
Plese 10 to 5:19 with the help of the strong second-half twenty-twenty end of the year with the BDI. Averaging ten. Sixty-six. Today would be the I stands at 2472 with the years the average of about 200% compared to the same period last year pent-up demand and restocking propelled counter seasonal exports which led to the strongest q1 for sub K. Since 2010. The recent strength in Cape rates can be partially attributed to increase iron ore exports out of Brazil and surging World Trade driven by strong demand for both my life and mine of all commodities.
Governments have been put in place.
Shih monetary and fiscal plans to support their economies have kick-started a faster than expected recovery and World economy. This is Leslie. I'm apt to increase its 2021 GDP growth projections to 6% highest and fifty years led by a 8.6% expansion in China India and developing Asia 20 21 drive. Both trade is projected to increase by 3.3% Turn the site 20
the man just broadcast to outpace Netflix growth in both 21 and 22 the graph on the left shows that the 20 21 drybulk demand for the three major car goes in line or cold and rain is forecast to increase by 3.3% compared to twenty twenty. If you look at the graph on the right Netflix growth is forecast to be 2.6% this year at Fleet growth is expected to remain low over the next few years as the order book is the lowest on record.
Turner the side 21 despite the pandemic trying to set another yearly record for iron ore Imports in 2020 at about 1.15 billion tons, which is an increase of 9.4% of a 2019 Chinese steel production surpassed the 1 billion unmarked and 20/20 go to the line or demand is expected to increase by 2.7% this year or an additional availability of iron ore shipments to China are expected to increase as steel mills replenish stockpiled driving demand for capesize vessels broadcasts are also for growth. Am I not inputs around the world as the effects of the pandemic recede Europe's Imports are expected to grow by 17% and twenty Twenty-One and Asia excluding China is expected to import phone no more iron ore in 2021 than 20 20.
You turn to slide twenty-two Asian coal Imports, which account for over 80% of the world Seaborn cold trade are expected to increase by 4% in 2021. Yeah. I'm kind of 6.5% and twenty twenty four twenty twenty decreases mainly attributed to India and Chinese Imports declined by 11% and 8% respectively in twenty-twenty Vietnam, you know, the East Asian countries accounted for 15% of total Asian Imports and are expected to increase Imports by 8% this year certified twenty-three worldwide. Grain trade have a growing at five-per-cent Congress since 2008 mainly driven by Asian demand, which increased by 14.3% in 2020 and is expected to increase by a further 2.9% in 2021.
Over all over the world grain trade increased by 7% in 2020 is expected to increase by about 2.2% in 2021 and ever increasing world population food security issues driven by the pandemic as well as increasing protein demand worldwide continues to support the global grain trade World grain production this year. We're reached a record record the international grain Council and the USDA.
Eastern the side 20
for
the current order book stands at a record low of 5.4% of the fleet. Newbuilding Contracting was down 49% in 2020 as compared to 2019 through April. Nineteenth Contracting is again down by about 33% compared to the same period last year accordingly 20-21 netfli growth is expected at 2.6% and only 0.9% for 20 22 turning the 525 vessels over 20 years of eight or about 7.5% of the total World Fleet, which compares favorably with the previously mentioned record the order book scrapping total 15.8 million tonnes in 2020 almost double of 2019 total year-to-date scrapping has totaled four point three million tonnes, which is on Facebook about fourteen million times to be scrapped this year.
In conclusion positive demand fundamentals mainly due to the restart of economic activity around the world along with reduced Fleet availability that continues to support the drive book industry off and it's continuing effort to navigate through the evening pandemic storm. This concludes my presentation. I would now like to turn the call over to Angela key for a final comments and delete key.
Thank you, babe. This complete appointment reservation. We open the call to questions. Thank you. The floor is now open for questions. If you wish to ask a question at this time, simply, press start the number one on your telephone keypad again, that is star one.
At this time, I'd like to turn the floor back over to Angelique you frangou for any closing remarks?
Thank you. This complete I a message is estimating a stronghold growth of about 6% which is going to be very beneficial to commodity as well as the drive park with the 52% open in index days. This provided a lot of exposure to the market to the spot market and we will enjoy walking outside for 20 21. Thank you this complete your presentation.
Thank you. This does conclude today's conference call. You may now disconnect.
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