Shipping and logistics company Navios Maritime Holdings (NYSE: NM) Tuesday reported a narrower net loss for the first quarter of 2019, aided by a 20% increase in revenues. The stock gained sharply after the announcement.
Net loss narrowed sharply to $5.3 million in the first quarter from $40.86 million in the corresponding period last year. On a per share basis, the company reported earnings of $1.22 per share, compared to a loss of $3.53 per share a year earlier. Analysts had forecast a loss.
Adjusted for special items, the loss was $0.19 per share, compared to a loss of $2.98 per share last year. Navios’ profitability continues to be hit by high costs, especially voyage and logistics business expenses and direct vessel expenses.
Profitability continues to be hit by high costs, especially voyage and logistics business expenses and direct vessel expenses
At $140.28 million, net revenues were higher by 20% from the first quarter of 2018. The top line, meanwhile, fell short of expectations.
“We are continuing to develop our logistics chain in South America. We are in the preliminary stages of constructing a modern upriver port facility in Mato Grosso do Sul, a fertile region exporting grains. This new port should provide a service to the region and create additional volume on the river for our barge business and grain transshipment terminal in Uruguay,” said CEO Angeliki Frangou.
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Last month, the company entered into a secured credit facility of $50 million with Navios Logistics, which will be used for general corporate purposes. Since the beginning of last year, Navios Holdings has reduced the average age of its owned fleet by 20% and lowered capacity by 2%.
Navios shares lost about 52% in the past twelve months. The stock, which entered the recovery path in recent months, has gained 21% since the beginning of the year. It moved notably in premarket trading Tuesday following the announcement, after closing the last trading session lower.