Navios Midstream has options, due to expire in November this year, to acquire up to five secondhand VLCCs from Navios Maritime Acquisition Corporation (Navios Acquisition), which owns 55.5% interest in Navios Midstream, as well as a 2% interest through the general partner which Navios Acquisition owns and controls.
In October 2016, Navios Midstream extended, for a two-year period until 18 November 2018, the purchase options for three of the five VLCCs, built in 2002, 2003 and 2011 respectively.
Angeliki Frangou, chairman and ceo of Navios Midstream, stated: “The commercial terms of the options will remain the same and Navios Acquisition will not be providing any charter rate backstop. We anticipate that these options will provide a continued avenue for fleet and distribution growth.”
The other two VLCCs, with purchase options expiring next month, were built in 2009 and 2010.
As at 30 September 2016, Navios Midstream owned six VLCCs built between 2000 to 2011.
On financial results, Navios Midstream reported a third quarter net profit of $5.46m, down 12.4% from $6.23m recorded in the same period of 2015 due partially to an increase in direct vessel expenses.
Revenue for quarter was stable at $22.21m compared to $22.47m in the year-ago period.
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