Q1 2023 Navios Maritime Holdings Inc. Earnings Call

Speaker 1: Good morning and thank you for joining Navios Maritime Holdings first quarter 2023 earnings conference call. We are pleased to host this call from the Cayman Islands.

Speaker 1: With us today from the company are Chairwoman and CEO Ms Angeliki Frangi, Chief Financial Officer Mr George Acneatus.

Speaker 1: CME Vice President of Strategic Planning, Ms Yanis Kariotis, and Navios Logistics Chief Financial Officer, Mr Enrico Sarando. I will now turn the call over to Ms Daniella Guerrero who will take you through the conference call details and safe harbour statements. Ms Daniella.

Speaker 2: Thank you. As a reminder, this conference call is being webcast. To access the webcast, please visit the investor section of Navios Maritime Holdings website at www.navios.com. You'll see the webcast link in the middle of the page and a copy of the presentation referenced in today's earnings conference call will also be found there.

Speaker 2: Now, I will review the Safe Harbor Statement. This call could contain forward-looking statements under the meaning of the Private Securities Litigation Reform Act of 1995 about Navi's maritime holdings.

Speaker 2: Powerlucine statements are statements that are not historical facts. Such powerlucine statements are based upon the current beliefs and expectations of now used maritime holding management in our subject to risk and uncertainties which would cause actual results to differ from the powerlucine statement.

Speaker 2: Such risks are more fully discussed and now is maritime holding's filing with Securities and Exchange Commission. The information set forth here and should be understood in light of such risks. Now, if maritime holding does not assume any obligation to update the information contained in this conference call.

Speaker 3: We will begin this morning's conference call with Marios Hollings, Chairwoman and CEO , Ms Angeliki Frangli. Angeliki? Thank you Michael and good morning to all of you who join us on today's call. I am pleased with the results for the first quarter of 2023 in which we reported net income and a beta of around $14.5 million.

Speaker 3: logistics and infrastructure provided in the E region of South America. Navius Holdings also owns a 10.3% ownership interest in Navius Partners, a diversified marine transportation company. We believe that Navius Holdings is the only company in the world that can help the world.

Speaker 3: that the global macro-conditions support healthy growth in the Hidovia region. As China emerges from the pandemic, we are witnessing increasing demand for minerals and other commodities. Ukraine has impacted demand for agricultural commodities, and we believe that the continued focus

Speaker 3: on food security drives agricultural volumes.

Speaker 3: We are focusing on maximizing the intent from our existing assets by being adaptive and offering innovative logistic solutions.

Speaker 3: We are seeking to leverage Navios logistics, unique infrastructure to capture increased demand from existing and new clients. We are also developing new services as we respond to a changing environment demanding novel solutions to emerging challenges.

Speaker 3: I would like now to turn the call over to Mr. George Asmottis, who will go through the financials. George. Thank you, Angelic. Please turn to slide five for the review of the Navios Holdings Financial Highlights for the first quarter of 2023. Fogusing on Nibbidan nadinkam from continuing operations.

Speaker 4: in order to exclude the sale of the dry bulb fleet in Q3 of 2022, EBD for the quarter was about 40 million compared to 33 million in Q1 of 2022.

Speaker 4: The increase was mainly due to the improvement in the results of Naviosava-Majial logistics and an increase from the equity pickup of Navios-Bagnus.

Speaker 4: Neddingham for Q1 2023 was 14 million compared to a 15 million loss in Q1 of 22. Moving to slide 6 and our ballast sheet highlights, following the sale of the fleet, the consolidated ballast sheet mainly represents the ballast sheet of the United South American Logistics.

Speaker 4: The cash balance was about 61 million compared to about 79 million at the end of December 22. Out of the 61 million 25 was at Navios holdings and 36 at Navios Southern American logistics. Please turn to slide 7 for an overview of Navios Southern American logistics.

Speaker 4: Navios Logistics operates three port terminals, which in Q1 provided about 80% of Alipita.

Speaker 4: in product tank of lead for coastal Kabudash trade.

Speaker 4: We have unique infrastructure assets in the region which we want to leverage to serve our existing clients and develop new business opportunities.

Speaker 4: At this point, Adrienne De Collova, the Giannis Calgiodis, for an update of Navi Satham, American Logistics, recent developments.

Speaker 4: Thank you George. Please turn to Slide 8, where we discuss the recent development.

Speaker 5: The positive outlook for minerals transportation and transipment is driven by favorable macro conditions. In the first quarter of 2023, 828,000 tons were transipped through our port terminal, compared to just 41,000 in the same period last year.

Speaker 5: Our main client is driving more cargo through our terminal and plans to increase further production. Veteran forbimining the two other regional iron ore producers are also using our terminal to export iron ore.

Speaker 5: Increased exports of iron ore drive the demand for bar transportation. Since the beginning of the year we have fixed 6 drive bars convoys on period charter which should generate about 27 million in revenue.

Speaker 5: All our remaining dry bar convoys are also fixed under volume contracts for the year.

Speaker 5: This year we also saw some new trading patterns emerging, and we adopted our services to offer our clients innovative logistics solutions and capture new business.

Speaker 5: Argentinian crashing plants are importing soybeans from Brazil to cover their shortfall in the supply of raw material due to the failed domestic soybean crop.

Speaker 5: Our grain port terminal in Uruguay is a cost-competitive solution for the storage and transcement of Brazilian beans destined to Argentina.

Speaker 5: We expect the new trade to continue throughout the year and mitigate partially the impact of a weaker Hawaiian soybean production.

Speaker 5: Market conditions in Kavata continue to be healthy.

Speaker 5: In the first quarter of 2023, we joined in Proof's Fleet Digitalization and for the remaining nine months of the year, the contracted time charter equivalent for the six days of our fleet stands at $27,000 per day per vessel. I would now like to tend the call over to Enrique Ferando

Speaker 5: in other logistics UFOs for the discussion of the financial results.

Speaker 6: Thank you, Yannis. Please turn to page 9. Naggio's logistics had a strong performance during Q1 2023, mainly driven by the improved results on the Barge segment. The EBITDA was 26.6 million, 10% higher as compared to the same quarter last year.

Speaker 6: Port segment of the DAW was 20.8 million. The positive impact of higher taris at the iron ore port and increased iron ore throughput from the client's four remaining adbetria was offset by a lower grain throughput, mainly related to a reduction in uruguayan exports.

Speaker 6: In the barge segment, Q1 2023 EBITDA increased by 2.3 million to 3.8 million. A significantly increased demand for iron ore and grain transportation has allowed us to fix various barge convoys under period contracts at attractive rates.

Speaker 6: In the cabotage business, Q1 2023 EBITDA increased by 0.1 million to 2 million due to more operating days of the fleet.

Speaker 6: For Q1 2023, the net income was 1.6 million, compared to 0.4 million loss in the same period last year, mainly due to the improved bus business performance.

Speaker 6: Please don't do slide 10.

Speaker 6: Now the statistics has no significant dead materialities until 2025. Cache and Cache quiwellens at the end of Q1, 2023 were 36.6 million.

Speaker 6: This concludes my presentation. I would now like to turn the call over to Anjeliki for her final comments. Anjeliki?

Speaker 7: Thank you ladies and gentlemen. This concludes today's conference call and webcast. We appreciate your participation and you may disconnect at any time.