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The information set forth in this conference call should be understood in light of such risks. Navios Holdings does not assume any obligation to update the information contained in this call. Thank you.The agenda for today’s call is as follows. First, Ms. Frangou will offer opening remarks. Next, Mr. Petrone will provide an operational update and an industry overview. Mr. Karyotis will go through an overview including recent financials for Navios South American Logistics. Then, Mr. Achniotis will review Navios Holdings’ financial results. Lastly, we’ll open the call to take your questions. I’d now like to turn the call over to Navios Holdings’ Chairman and CEO, Ms. Angeliki Frangou. Angeliki? Angeliki Frangou Thank you, Laura, and good morning to all of you who join us on today’s call. We are pleased to report our results for the first quarter of 2012. We had a solid quarter in a market environment that continues to be challenging. Our focus still in this period has been on increasing the efficiency of our global fleet as a means of further reducing expenses. Efficiency equals strength in this market and [inaudible] has been singularly focused on maximizing fleet utilization while reducing operating cost. We have also been focusing on maintaining a solid balance sheet and returning capital to our shareholders through dividend payments. We have declared a $0.06 dividend for the first quarter of 2012 to shareholders of record on June 26, 2012. Slide 2 shows our current structure. The value of Navios Holdings primarily derives from four areas, the drybulk fleet within the Navios Holdings and three separately operating subsidiaries. The whole continues to be valued at the [inaudible]. As you can see, the value of Navios Holdings’ interest in the two publicly listed subsidiaries is $2.70 per share. The market values of the remaining two businesses is only $0.56 in total.
Navios Holdings’ core drybulk fleet consists of 48 vessels in the water. This fleet has long-term charters with current worker [ph] counterparties, totally insured by AA-rated insurance company in the EU. Our charter partner coverage is unique and should continue to provide a great comfort to all our stakeholders as it has been doing historically.The value of Navios Logistics is growing. We have a superb management team addressing the market opportunities, and together we have transformed Navios Logistics into a key provider in the Hidrovia region in South America. Ioannis Karyotis will address Navios Logistics results in further detail later. Slide 3 shows our strong competitive positioning. As I mentioned, an immediate goal will remain in a difficult drybulk market. However, we have worked hard to prepare for this market. We continue to focus on controlling expenses by raising the bar on operational performance. Our operating cost, always favorable when compared to our peers, is about 35% below the industry average. We also have a fleet utilization of 99%. We have also focused on our balance sheet strength, which we believe is one of the best in our industry. Our net vertical utilization is about 51%. This is particularly healthy when considering where we are in the market cycle, the absence of any CapEx funding requirements, and the fact that we have no material debt maturity until 2017. Bank loans attached to our debt maturities and CapEx funding requirement has positioned us favorably compared to our competitors. We are now in a precarious position of seeking significant liquidity while financial institutions are reducing their exposure to shipping while shrinking the dollar-denominated loan portfolios and total market [inaudible] selectively. We are also well positioned for 2012 as about 90% of our field is covered. Even with almost 1,600 days open for the year, Navios generates substantial free cash flow of about $35 million. In addition, as you can see from the chart on Slide 3, for every $1,000 per day we see for each open day, Navios will earn almost $1.6 million. That, assuming that chartering activities generate an average $12,000 per day for the rest of the year, which is reasonable in this market, will be almost $19 million. Free cash flow generation will be a total of $54 million for 2012. Read the rest of this transcript for free on seekingalpha.com