Navios Holdings Plans to Further Reduce Its Expenses

first_imgzoom Greek dry bulk shipping company Navios Maritime Holdings reported its quarterly net loss at USD 26.4 million, compared with a net loss of USD 24.8 million seen in the same period of 2015. The increase in net loss was mainly due to a decrease in EBITDA, a decrease in income tax benefit, an increase in amortization for deferred drydock and special survey costs and an increase in share-based compensation expense, according to the company.Navios Holdings’ revenue for the quarter was at USD 105.7 million, down from USD 119.8 million reported in the second quarter of 2015.Revenue from dry bulk vessel operations for the three months ended June 30, 2016 dropped to USD 47 million from USD 53.6 million reported in the same period during 2015, mainly attributable to a decrease in available days of the fleet and the decline in the freight market during 2016.“Navios Holdings had a solid second quarter performance, earning USD 31 million in EBITDA, which was relatively in line with 2015. We have USD 143.2 million of cash as of June 30, 2016 and no material debt maturities until 2019,” Angeliki Frangou, Chairman and Chief Executive Officer, said.“Our scale provides us with significant operating leverage. Navios Holdings’ opex is estimated to be approximately 42% less than the industry average. During the last twelve months, we have also reduced general and administrative expenses by approximately 30%, which we expect to reduce further to a total of 40% by year end. This reduction makes us one of the lowest cost operators among publicly listed dry bulk shipping companies,” Frangou added.During the first half of 2016 the company’s net loss stood at USD 33.9 million, as compared to a net loss of USD 51.5 million seen in the same period of 2015, mainly due to an increase in EBITDA, a decrease in interest expense and finance cost, and a decrease in depreciation and amortization.The company’s revenue for the first half was at USD 207.2 million, compared to USD 238.1 million reported a year earlier, while revenue from dry bulk vessel operations for the six months ended June 30, 2016 stood at USD 93.3 million, as compared to USD 106.8 million for the same period during 2015. The decrease in drybulk revenue was mainly attributable to the decline in the freight market during 2016, as compared to the same period in 2015.last_img

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