Navios Maritime Holdings Inc. (NYSE:NM) has announced its 3Q2015 results posting revenues of $131 million, with $174.5 million available in cash. However, the main highlight of the report was the return of $25 million in capital through the company’s share re-purchase program. CEO of NM, Angeliki Frangou, stated that the company has been experiencing an extended period of weakness, unlike any other in the company’s history. He continued on to state that this was the reason that the company has decided to halt dividend payouts and initiating a share re-purchasing program to improve the company’s balance sheet.
As per the details, Navios would continue its share re-purchase program for a period of 2-years and would entail $25 million. Added to this the CEO also hinted at using the leverage provided by a stronger balance sheet to reinvest in other opportunities. Currently, 30% of the company shares are owned by the company management and Navios had been paying dividends for the past 39 quarters. The report also revealed that the entailed amount would be available for use in both open market transactions and privately negotiated ones. Additionally, the timing of such transactions would be dependent upon the financial or liquidity state of the company. Overall, the 3Q2015 highlighted a decline in revenues, when compared to the previous year, resulting in a loss of $0.05 per share.
Other highlights from the report indicated that Navios is working to improve its fleet, with a series of long-term charter-in vessels to be delivered in the coming year. The financial outcome of the 3Q2015 has resulted in mixed views from analysts, with Zacks asking short term investors to sell the stock. However, majority of the analysts have adopted a wait and see strategy, hinting that the update from the company does add some weight to its future growth.
Navios Maritime Holdings Inc. (NYSE:NM) experienced trade volumes of 1.35 million shares during the December 2 session, only to report a decline of 0.68% in its share value. The stock closed at a share price of $1.45.