Navios South American Logistics Inc. (“Navios Logistics” or the
“Company”), one of the largest infrastructure and logistics
companies in the Hidrovia region of South America, today reported
its financial results for the first quarter ended March 31, 2024.
Angeliki Frangou, Chairwoman, stated, “We
are pleased with the results for the first quarter ended March 31,
2024. Our revenue, EBITDA and profit improved compared to the first
quarter ended March 31, 2023 and regional dynamics support further
growth.”
George Akhniotis, Chief Executive Officer,
continued, “We have unique infrastructure assets in the region
and recently inaugurated a new liquid terminal in Nueva Palmira.
Our terminals provided about 68% of our EBITDA and are complemented
by our barge fleet for river transportation, which provided about
22% of our EBITDA, and product tanker fleet for coastal cabotage
trade, which provided the remaining 10%.”
Operating Highlights
In April 2024, Navios Logistics inaugurated a
new liquid port in Nueva Palmira, Uruguay. The new liquid bulk
terminal includes a tank farm that, in its first stage, offers
37,000 m3 static storage capacity, comprising of two tanks of
15,000 m3 and one of 7,000 m3. The tanks are designed to handle
among other products, biofuels and vegetable oils exported from
Uruguay and the Hidrovia region of South America. Navios Logistics
has available space to increase storage capacity to about 140,000
m3 to meet customers’ future demand. The new liquid terminal
infrastructure also includes a new pier to receive tank barges,
connections of the tank farm with the barge and the ocean-going
vessel piers and auxiliary facilities.
Grain port transshipments for the period ended
March 31, 2024 increased to 0.9 million tons, compared to 0.6
million tons for the same period in 2023, driven by increased
Uruguayan exports of wheat and barley.
For the remaining nine-month period ended 2024,
Navios Logistics has fixed 85% of the available days of the
cabotage vessels, expecting to generate a time charter equivalent
of $26,523 per day per vessel.
Bond repayments
Year-to-date, Navios Logistics has repurchased
$21.5 million of its senior secured notes due 2025 (“the 2025
Notes”), for total cash of $21.9 million including accrued and
unpaid interest to, but excluding, the repayment dates. Following
these repurchases, $478.5 million of the 2025 Notes, which mature
in July 2025, remain outstanding.
Non-IFRS Measures
EBITDA of Navios Logistics is a Non-IFRS
financial measures and should not be used in isolation or as a
substitute for results calculated in accordance with IFRS.
See Exhibit I under the heading, “Disclosure of
Non-IFRS Financial Measures,” for a discussion of Navios Logistics’
EBITDA, and a reconciliation of such measures to profit, the most
comparable measure calculated under IFRS.
Earnings
Highlights
First Quarter 2024 and 2023 Results (in
thousands of U.S. dollars):The first quarter 2024 and 2023
information presented below was derived from the unaudited
condensed consolidated financial statements for the respective
periods.
|
|
Three-Month Period EndedMarch 31,
2024(unaudited) |
Three-Month Period EndedMarch 31,
2023(unaudited) |
Navios Logistics |
Revenue |
$ |
71,966 |
|
$ |
65,080 |
|
EBITDA |
$ |
28,671 |
|
$ |
26,905 |
|
Profit |
$ |
8,093 |
|
$ |
1,592 |
|
Port Terminals |
Revenue |
$ |
32,181 |
|
$ |
30,911 |
|
EBITDA |
$ |
21,707 |
|
$ |
20,837 |
|
Barge Business |
Revenue |
$ |
27,365 |
|
$ |
22,565 |
|
EBITDA |
$ |
4,841 |
|
$ |
3,880 |
|
Cabotage Business |
Revenue |
$ |
12,420 |
|
$ |
11,604 |
|
EBITDA |
$ |
2,123 |
|
$ |
2,188 |
|
|
|
|
|
|
|
|
|
Revenue was $72.0 million for the three-month
period ended March 31, 2024, as compared to $65.1 million for the
same period in 2023. The increase was attributable to: (i) a $4.8
million increase in revenue from the Barge Business mainly
attributable to higher revenue from time charter-out contracts and
higher volumes of liquid cargo moved; (ii) a $2.3 million increase
in revenue from the Port Terminal Business, mainly attributable to
higher volumes transshipped at the Grain Port Terminal; (iii) a
$0.8 million increase in revenue from the Cabotage Business, mainly
due to higher time charter rates. The overall increase was
partially offset by a $1.0 million decrease in sale of fuel
products.
Profit was $8.1 million for the three-month
period ended March 31, 2024, as compared to a $1.6 million profit
for the same period in 2023. This increase in profit was mainly due
to: (i) a $5.8 million increase in income tax benefit, mainly due
to a non-cash deferred income tax gain; (ii) a $1.8 million
increase in EBITDA as discussed below; and (iii) a $0.4 million
increase in finance income. The overall increase was partially
offset by: (i) a $0.9 million increase in finance costs; and (ii) a
$0.6 million increase in depreciation and amortization.
EBITDA for the three-month period ended March
31, 2024 increased by $1.8 million to $28.7 million, as compared to
$26.9 million for the same period in 2023. On a per segment basis,
EBITDA in the Barge Business increased by $1.0 million; EBITDA in
the Port Terminal Business increased by $0.9 million; and EBITDA in
the Cabotage Business was almost stable at $2.1 million.
Conference Call:
As previously announced, Navios Logistics will
host a conference call today, May 23, 2024, at 8:30 am ET, at which
time Navios Logistics' senior management will provide highlights
and commentary on earnings results for the first quarter ended
March 31, 2024.
A supplemental slide presentation will be
available on the Navios Logistics website at
www.navios-logistics.com under the “Investors” section by 8:00
am ET on the day of the call.
Conference Call details:
Call Date/Time: Thursday, May 23, 2024 at 8:30 am ETCall
Title: Navios Logistics Q1 2024 Financial Results Conference
CalUS Dial In: +1. 800.225.9448International Dial In:
+1.203.518.9708Conference ID: NSALQ124
The conference call replay will be available
shortly after the live call and remain available for one week at
the following numbers:
US Replay Dial In: +1.888.566.0860International Replay Dial In:
+1.402.220.0456
This call will be simultaneously Webcast. The
Webcast will be available on the Navios Logistics website,
www.navios-logistics.com, under the “Investors” section. The
Webcast will be archived and available at the same Web address for
two weeks following the call.
About Navios
South American
Logistics Inc.
Navios South American Logistics Inc. is one of
the largest infrastructure and logistics companies in the Hidrovia
region of South America, focusing on the Hidrovia region river
system, the main navigable river system in the region, and on
cabotage trades along the southeastern coast of South America.
Navios Logistics serves the storage and marine transportation needs
of its petroleum, agricultural and mining customers through its
port terminals, river barge and coastal cabotage operations. For
more information about Navios Logistics, please visit its website:
www.navios-logistics.com.
Forward
Looking Statements
- Safe
Harbor
This presentation contains and our earnings call
will contain forward-looking statements within the meaning of the
Private Securities Reform Act of 1995. All statements herein other
than statements of historical fact, including statements regarding
business and industry prospects or future results of operations or
financial position, expected revenue to be generated from time
charter contracts currently in effect and expected TCE for fixed
available days, should be considered forward-looking. Words such as
“may,” “expects,” “intends,” “plans,” “believes,” “anticipates,”
“hopes,” “estimates,” and variations of such words and similar
expressions are intended to identify forward-looking statements.
These forward-looking statements are based on the information
available to, and the expectations and assumptions deemed
reasonable by, Navios Logistics at the time this filing was made.
Although Navios Logistics believes that the expectations reflected
in such forward-looking statements are reasonable, no assurance can
be given that such expectations will prove to have been correct.
These statements involve known and unknown risks and are based upon
a number of assumptions and estimates which are inherently subject
to significant uncertainties and contingencies, many of which are
beyond the control of Navios Logistics. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
include, but are not limited to, risks relating to: global and
regional economic and political conditions; changes in demand for
the transportation or storage of grain and mineral commodities and
petroleum products; the development of Navios Logistics’ planned
Port Murtinho Terminal and Nueva Palmira Free Zone port terminal
facilities; changing vessel crews and availability of financing;
potential disruption of shipping routes due to accidents, wars,
diseases, pandemics, political events, piracy or acts by
terrorists, including the impact of global pandemics; the
aging of our fleets and resultant increases in operating costs;
loss of any customer or charter or vessel; the financial condition
of our customers; changes in the availability and costs of funding
due to conditions in the bank market, capital markets and other
factors; increases in costs and expenses related to the operation
of vessels (including but not limited to costs associated with crew
wages, insurance, provisions, port expenses, lube oil, bunkers,
repairs, maintenance, and general and administrative expenses); the
expected cost of, and the ability to comply with, governmental
regulations and maritime self-regulatory organization standards, as
well as standard regulations imposed by charterers; competitive
factors in the markets in which Navios Logistics operates; risks
associated with operations outside the United States; and other
factors listed from time to time in Navios Logistics filings with
the Securities and Exchange Commission, including
its Forms 20-F and Forms 6-K, including the
section entitled “Item 3. Key Information — D. Risk Factors” in the
2023 Form 20-F. Navios Logistics expressly
disclaims any obligation or undertaking to release publicly any
update or revision to any forward-looking statements contained
herein to reflect any change in Navios Logistics’ expectations with
respect to any such statement, or any change in events, conditions
or circumstances on which any such statement is based.
Contact:
Navios South American Logistics Inc.+1
212-906-8646Email: investors@navios-logistics.com
EXHIBIT I |
|
NAVIOS SOUTH AMERICAN LOGISTICS
INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF
PROFIT (Expressed in thousands of U.S.
dollar) |
|
|
Three-MonthPeriod EndedMarch
31,2024(unaudited) |
|
Three-MonthPeriod EndedMarch
31,2023(unaudited) |
Revenue |
$ |
71,966 |
|
|
$ |
65,080 |
|
Cost
of sales |
|
(48,570 |
) |
|
|
(41,548 |
) |
Gross profit |
$ |
23,396 |
|
|
$ |
23,532 |
|
Administrative expenses |
|
(4,946 |
) |
|
|
(4,745 |
) |
Other operating income |
|
1,470 |
|
|
|
246 |
|
Other operating expenses |
|
(1,373 |
) |
|
|
(1,310 |
) |
Allowance for expected credit
losses on financial assets |
|
(70 |
) |
|
|
(392 |
) |
Operating
profit |
$ |
18,477 |
|
|
$ |
17,331 |
|
Finance income |
|
726 |
|
|
|
358 |
|
Finance costs |
|
(16,991 |
) |
|
|
(16,126 |
) |
Other financial results |
|
23 |
|
|
|
— |
|
Profit before tax |
$ |
2,235 |
|
|
$ |
1,563 |
|
Income
tax benefit |
|
5,858 |
|
|
|
29 |
|
Profit for the period |
$ |
8,093 |
|
|
$ |
1,592 |
|
|
|
|
|
|
|
|
|
NAVIOS SOUTH AMERICAN LOGISTICS INC.Other
Financial Data |
|
|
March 31, 2024 |
|
December 31, 2023 |
Statement of Financial Position ($'000) |
|
(unaudited) |
|
|
|
(unaudited) |
|
Cash
and cash equivalents |
$ |
34,065 |
|
|
$ |
69,282 |
|
Trade
receivables and contract assets |
|
42,575 |
|
|
|
35,646 |
|
Tangible assets and assets under construction |
|
550,331 |
|
|
|
533,088 |
|
Intangible assets |
|
147,943 |
|
|
|
148,695 |
|
Other
assets |
|
80,182 |
|
|
|
46,299 |
|
Total Assets |
$ |
855,096 |
|
|
$ |
833,010 |
|
|
|
|
|
|
|
|
|
Trade
and other payables and contract liabilities |
$ |
62,486 |
|
|
$ |
70,058 |
|
Current interest-bearing loans and borrowings |
|
27,863 |
|
|
|
31,013 |
|
Non-current interest-bearing loans and borrowings |
|
519,849 |
|
|
|
531,092 |
|
Deferred tax liabilities |
|
8,107 |
|
|
|
13,592 |
|
Other
liabilities |
|
67,251 |
|
|
|
25,808 |
|
Total Liabilities |
$ |
685,556 |
|
|
$ |
671,563 |
|
Stockholders’ Equity |
$ |
169,540 |
|
|
$ |
161,447 |
|
Total Equity & Liabilities |
$ |
855,096 |
|
|
$ |
833,010 |
|
|
|
|
|
|
|
|
|
Disclosure of Non-IFRS Financial Measures
EBITDA represents profit before finance
income, finance costs, depreciation and amortization and income
taxes. EBITDA is presented because we believe it used by
management and certain investors to measure a company’s operating
performance. EBITDA is
a “non-IFRS financial measure” and should not be
considered as a substitute for profit, cash flow from operating
activities and other operations or cash flow statement data
prepared in accordance with IFRS or as a measure of profitability
or liquidity. While EBITDA is frequently used as a measure of
operating performance, the definitions of EBITDA used here may not
be comparable to that used by other companies due to differences in
methods of calculation. EBITDA has limitations as an analytical
tool, and therefore, it should not be considered in isolation or as
a substitute for the analysis of results as reported under IFRS.
Some of these limitations are: (i) EBITDA does not reflect
changes in, or cash requirements for, working capital needs;
(ii) EBITDA does not reflect the amounts necessary to service
interest on our debt and other financing arrangements; and
(iii) although depreciation and
amortization are non-cash charges, the assets
being depreciated and amortized may have to be replaced in the
future. EBITDA does not reflect any cash requirements for such
capital expenditures. Because of these limitations, among others,
EBITDA should not be considered as a principal indicator of our
performance.
The following tables provide a reconciliation of
EBITDA of Navios Logistics to Profit/(loss) the most comparable
measure calculated under IFRS, on a segment and consolidated
basis:
Navios Logistics EBITDA Reconciliation to
Profit/(loss)
For the Three-Month Period Ended March 31,
2024
(Expressed in thousands of U.S. dollars) |
|
Port Terminal
Business(unaudited) |
|
Cabotage Business(unaudited) |
|
Barge Business(unaudited) |
|
Total(unaudited) |
Profit/(loss) for the period |
$ |
12,439 |
|
$ |
1,366 |
|
$ |
(5,712 |
) |
$ |
8,093 |
|
Finance income |
|
(304 |
) |
|
(100 |
) |
|
(322 |
) |
|
(726 |
) |
Finance costs |
|
6,794 |
|
|
3,069 |
|
|
7,128 |
|
|
16,991 |
|
Depreciation and amortization |
|
2,778 |
|
|
2,177 |
|
|
5,216 |
|
|
10,171 |
|
Income tax benefit |
|
— |
|
|
(4,389 |
) |
|
(1,469 |
) |
|
(5,858 |
) |
EBITDA |
$ |
21,707 |
|
$ |
2,123 |
|
$ |
4,841 |
|
$ |
28,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three-Month Period Ended March 31,
2023
(Expressed in thousands of U.S. dollars) |
|
Port Terminal
Business(unaudited) |
|
Cabotage Business(unaudited) |
|
Barge Business(unaudited) |
|
Total(unaudited) |
Profit/(loss) for the period |
$ |
11,856 |
|
$ |
(1,723 |
) |
$ |
(8,541 |
) |
$ |
1,592 |
|
Finance income |
|
(142 |
) |
|
(58 |
) |
|
(158 |
) |
|
(358 |
) |
Finance costs |
|
6,543 |
|
|
2,552 |
|
|
7,031 |
|
|
16,126 |
|
Depreciation and
amortization |
|
2,580 |
|
|
1,684 |
|
|
5,310 |
|
|
9,574 |
|
Income tax
(benefit)/expense |
|
— |
|
|
(267 |
) |
|
238 |
|
|
(29 |
) |
EBITDA |
$ |
20,837 |
|
$ |
2,188 |
|
$ |
3,880 |
|
$ |
26,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|