Navios Containers announced its 2019 results, with the CEO commenting that although the company has a good position for the new year, the impact of the coronavirus outbreak in China on trade is yet to be realised on the outlook.
Specifically, Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition stated that she is pleased with the company’s results, but awaits to see what the developments on the market will be amid the coronavirus.
During the fourth quarter, the company recorded revenue of $85.4 million and EBITDA of $45.9 million, representing increases of about 46% and 149%, respectively, over the fourth quarter of 2018.
For the full year of 2019, Navios Acquisition recorded revenue of $280.1 million and EBITDA of $128.4 million, representing increases of about 49% and 170%, respectively, over 2018. We declared a quarterly distribution of $0.30 cents per share for the fourth quarter.
Angeliki Frangou noted that the company is ‘well positioned‘ for 2020, having a visibility on revenue through our chartering activities, with 69% of available days fixed in 2020 and about $400 million in long-term contracted revenue overall.
We also have visibility on cost through the management agreement. However, we cannot determine the impact of the coronavirus in China on our market, as the fluid situation makes it impossible to assess accurately potential ramifications.
Overall, there have been several reports stating that the shipping industry has already experienced the negative impact of the coronavirus outbreak. On February 6, Peter Sand noted that the extended shutdown of China will temporarily impact the shipping markets and negatively affect freight rates. In the meantime, it is now argued that the outbreak is affecting the container and commodity industries as many shipping lines re-route their cargoes and reduce calls to Chinese ports, setting the scene for months of delivery delays ahead.
