Q4 2022 Navios Maritime Holdings Inc Earnings Call
Good day, everyone and welcome to the Navios Maritime Holdings fourth quarter 2022 earnings Conference call.
Please note that all participants have been placed in a listen only mode.
With us from the company today are chairwoman and CEO Ms Angie Leaky Franco.
Chief Financial Officer, Mr. George Acme Otis.
Senior Vice President of strategic planning, Mr. Yano Scary Otis.
And Navios logistics, Chief Financial Officer, Mr. Enrique for Rhonda.
Please note today's call will be recorded and I will be standing by if you should need any assistance.
It's now my pleasure to turn the call over to Mr. Michael Pearson. Please go ahead.
Good morning, and thank you for joining Navios Maritime Holdings fourth quarter 2022 earnings Conference call. We are pleased to host this call from the case.
Sydney called payments Ms Daniela.
It will take you through the conference call details and Safe Harbor statements Daniela. Thank you as a reminder, this conference call is being webcast to access the webcast. Please visit the investors section of Navios Maritime Holdings website at Www Dot Navios Dot com.
You'll see the webcast link in the middle of the page and a copy of the presentation referenced in today's call will also be found there.
Now I'll review the Safe Harbor statement. This conference call could contain forward looking statements under the meaning of the private Securities Litigation Reform Act of 1095 about Navios Maritime Holdings.
Forward looking statements are statements that are not historical facts such forward looking statements are based upon the current beliefs and expectations of Navios Maritime Holdings 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 in Navios Maritime Holdings' filings with the Securities and Exchange Commission. The information set forth herein should be understood in light of such risks Navios Maritime holdings does not assume any obligation to update the information contained in this conference call.
We'll begin this morning's conference call with Navios Holdings, chairwoman and CEO , Ms Angela Trenching and Julie Kim.
Thank you Michael and good morning to all of you joining us on today's call I am pleased with our results for the fourth quarter and full year of 2022, we performed way with 2022 net income of $87 million and EBITDA of $355 million.
20 blended do Mark the turning point for Navios Holdings as we saw I think their national obviously, recognizing a 170 million gain from the sale of the vessels. We used 370 million in sale proceeds primarily to repay debt substantially deleveraging the company today Nobody is gone.
Thanks, one standpoint, 3% ownership interest in Navios partners diversified Marine Transportation Company. We believe this is an attractive investment with good long term prospects.
We also own 63, 8% ownership interest in Navios, South American logistics, and logistics and interested actually provided in the Heathrow via region of South America, We believe that the global macro conditions support healthy growth indicator of the agent.
<unk> coming out from the pandemic and demand for mineral commodities increase.
He also Ukrainian has impacted demand for agricultural commodities.
In fact, the continued focus on food security drives agricultural volumes.
We are focusing on maximizing the returns from our existing assets by being adopted and nothing innovative logistics solutions. We are seeking to leverage navios logistics unique interest lots of acid took absolute increase demand from existing clients, while developing new businesses.
I would like now to turn the call over to Mr. Joel definitely al who will go through the financials George.
Thank you Angeliki.
Please turn to slide five for a review of the Navios Holdings financial highlights for the fourth quarter and full year 2022.
I want to remind you that following the sale of the dry bulk fleet in Q3. The consolidated results of the company mainly reflected in terms of Navios logistics plus the equity net earnings of Navios partners.
In order to present, a more meaningful comparison of the results we are presenting EBITDA and net income from continuing operations for both 2021 and 2022.
EBITDA from continuing operations for the quarter was about <unk> 5 million compared to $17 million in Q4 of 2021.
EBITDA was mainly made up of $15 million from <unk>.
Logistics, including non controlling interest in <unk>.
$21 million from the equity pick up of Navios partners minus $3 million of expenses.
Net income for Q4 2022 from continuing operations was $11 million compared to $13 million loss in Q4 of 'twenty one.
Moving to the full year financial highlights EBITDA from continued operations were $65 million compared to $148 million in 'twenty one.
The 2022 results were affected by $98 million impairment loss relating to our investment in Navios partners.
Net loss from continuing operations for the year was 59 million compared to 41 million income in 2021.
The impairment loss that affected EBITDA, all subject to lending.
Most of the year.
Moving to slide six and our balance sheet highlights.
Similar to the income statement the consolidated balance sheet as of December 31st 2022, mainly represented the balance sheet of merger soda maker logistics.
The cash balance was about $79 million compared to about $138 million at the end of December 21.
I want to remind you that at the end of December 2021, the balance included $84 million that was restricted cash used to facilitate repayment of the loans in January of 'twenty two.
During Q4, we completed a tender offer for the preferred equity nine.
$9 2 million was paid for 604000.
Their shares Gnrh, representing 26% of it was in previous years.
Please turn to slide seven for an overview of Navios South America logistics.
<unk> logistics operates three port terminals, which provide more than 90% of our EBITDA.
These are complemented by our barge fleet for EBIT transportation and product tanker fleet for coastal cover their state.
Do we have unique unique infrastructure assets in the region, which we want to leverage.
To serve our existing clients and develop new business opportunities.
At this point I'll turn the call over to youngest scheduled this for an update of maybe some of our make whole logistics reasonably settlements.
Thank you George.
Please turn to slide eight where we discuss the current market environment.
<unk> comparable based on a concept meant is positive driven by favorable macro conditions.
Our WAC and mindful violated the region in the second half of 2022 to date the network driving more cargo through October and plan to increase production.
Two other regional iron ore producers victory on an Fob mine both of us are permanent to export iron ore.
In 2022 throughput in our iron ore demand increased a 123% to one 5 million tons.
Half of this volume gross profit during the fourth quarter. So we're expecting 2023 volumes to be larger.
In 2022 grain exports through our 14th why were 58% higher than in 2021, mainly driven by higher Uruguayan exports of soybeans.
According to USDA, the 2022, 23, soybean crop, but Hawaii is expected to be 10 million tons.
From $4 to the prior year Wagner with Wagner crop is expected to be $2 3 million tons lower than the $3 1 million tones produced last year.
Increased production and exports of iron ore it means more traffic through our postpaid in Greensboro, probably mirror, but also increase demand for bulk customer base.
The recovery of the Paraguayan soybean production create affected demand for dry cargo barge transport based on this year.
This should result in improved performance over the bulk segment compared to 2022.
In fact in the first months of 2023, we fixed the number of barge convoys for iron ore transportation on period time charter contracts at attractive rates.
In 2022, the cabotage business at Calvin compared to 2021, when demand collapsed due to COVID-19.
We continue to see strong demand from clients that has resulted to improved charter rates 2023 contracted days.
Fixed up 36% higher average time charter equivalent rate compared to 2022.
I would now like to turn the call over to Enrique Panhandle, Navios logistics CFO for the discussion of the financial results.
Thank you Danny please turn to page nine in 2022, Navios logistics performed strongly with a 20% growth in adjusted EBITDA, but even my all are important all of those segments.
Revenue increased 14% to $254 2 million and adjusted EBITDA increased to $95 4 million from $79 2 million in the prior year.
We recorded an adjusted loss of $1 2 million, which represents an improvement of $21 6 million as compared to an adjusted loss of $22 8 million in 2021.
Turning to the results of the full quota.
Q4, 2022, adjusted EBITDA was 10 million, 5% lower compared to the same quarter last year.
<unk> segment, adjusted EBITDA grew 15% to $16 8 million.
Mainly driven by higher values at the iron ore port and increased throughput from the appliance or remind me and lithium.
In the last segment Q4, 2022, adjusted EBITDA decreased by $5 6 million to a negative $7 2 million, mainly due to the sale Paraguayan crop our dry cargo barge fleet was effectively idle during the fourth quarter.
Same time, the fleet incurred expenses related to the <unk> Xian and readiness for 2023 season.
In addition, <unk> expenses, mostly personnel and travel related to our reorganization burdened the results of the quarter.
In the carload is weakness Q4, 2022, adjusted EBITDA increased by $2 9 million to <unk> 4 million due to more operating days of the fleet as the market environment in Argentina has improved compared to the prior year quarterly and a recovery of the demand at the end of the lockdown.
For Q4 2022, the adjusted loss was $12 million compared to $22 million loss in the same period last year, mainly due to lower finance costs and an income tax benefit of the Argentinian operation.
Please turn to slide 10.
Navios logistics has no significant debt maturities until 2025.
Cash and cash equivalents at the end of the year of 2022 were $52 million.
This concludes my presentation I would now like to turn the call over to answer the key for her final comments absolutely key.
Thank you Eric this completes our Q4 earnings.
The presentation and thank you for attending.
This concludes today's call. Thank you for your participation you may disconnect at anytime.
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Okay.
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