Table of Contents

Table of Contents

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

Dated: ~~September~~December 714, 2023

Commission File No. 333-179250

NAVIOS SOUTH AMERICAN LOGISTICS INC.

Aguada Park Free Zone

Paraguay 2141, Of. 1603

Montevideo, Uruguay

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:

Form 20-F ☒ Form 40-F ☐

Operating and Financial Review and Prospects

The following is a discussion of the financial condition and results of operations of Navios South American Logistics Inc. (“Navios Logistics” or the “Company”) for each of the three- and ~~six~~nine-month periods ended ~~June~~September 30, 2023 and 2022. All of these financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (the “IASB”). You should read this section together with the consolidated financial statements and the accompanying notes included in Navios Logistics’ 2022 annual report on Form 20-F filed with the Securities and Exchange Commission on March 27, 2023 (the “2022 Form 20-F”) and the unaudited condensed consolidated financial statements and the accompanying notes included in this Form 6-K.

This report contains 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, and future dividends or distributions, 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. Such statements include comments regarding demand and/or charter and contract rates for our vessels and port facilities. 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 materially include, but are not limited to, risks relating to: global and regional economic and political conditions; changes in production or 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; the ability and willingness of charterers to fulfill their obligations; prevailing charter rates; drydocking and repairs; 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 the filings Navios Logistics makes with the SEC, including its Forms 20-F and Forms 6-K, including the section entitled “Item 3. Key Information—D. Risk Factors” in the 2022 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 our expectations with respect to any such statement, or any change in events, conditions or circumstances on which any such statement is based.

Recent Developments

In October 2023, Navios Logistics agreed to charter-in the Navios Vega, a 2009-built Ultra-Handymax vessel, following her modification to a ship-to-ship transhipper vessel, from Navios Maritime Partners L.P. for a period of five years at a rate of $25.8 thousand net per day. This transaction was negotiated by, and unanimously approved by, the conflicts committee of Navios Logistics. Navios Vega is expected to be delivered in January 2024.

In October 2023, Navios Logistics entered into a five-year finance leasing contract for the construction of six barges to be delivered no later than the end of the second quarter of 2024 (the “Six Finance Lease Barges”). The contract for the Six Finance Lease Barges has terms similar to the terms of the five-year finance leasing contract entered into in September for the construction of twelve barges to be delivered no later than the end of the first quarter of 2024 (the “Twelve Finance Lease Barges”), which contract is more particularly described in “Legal Proceedings and Commitments and Contingencies” elsewhere in this report.

Overview

General

Navios Logistics was incorporated under the laws of the Republic of the Marshall Islands on December 17, 2007. We believe we are one of the largest infrastructure and logistics companies in the Hidrovia river system, the main navigable river system in the region, and on the cabotage trades along the southeastern coast of South America. We have three reportable segments: the Port Terminal Business, the Cabotage Business and the Barge Business. The Port Terminal Business includes dry port terminal operations and liquid port terminal operations. A general description of each segment follows.

Port Terminal Business

We own three port storage and transfer facilities: a grain port terminal (the “Grain Port Terminal”), which supports agricultural and forest-related exports; an iron ore port terminal (the “Iron Ore Port Terminal”), which supports mineral-related exports; and a liquid port terminal (the “Liquid Port Terminal”), which provides tank storage for refined petroleum products. The Grain Port Terminal and the Iron Port Terminal are located in Nueva Palmira, Uruguay, and the Liquid Port Terminal is located in San Antonio, Paraguay. Since October 2022, we have been providing bunkering services using floating storage capacity in the port of Nueva Palmira. Our port facilities in Nueva Palmira have a total static grain-storage capacity of 460,000 metric tons, and a mineral-ore-stockpile capacity of 1,246,000 tons following the completion of a new stockpile area in the second quarter of 2023. The Liquid Port Terminal has a total static storage capacity of 65,660 cubic meters. The Grain Port Terminal, together with the Iron Ore Terminal, may be collectively referred to in this report as our “Dry Port Terminals.”

Port Terminal Business

The Cabotage Business

We own and operate ocean-going vessels to support the transportation needs of our customers in the South American coastal-trade business. Our fleet consists of five ocean-going product tanker vessels and a river and estuary tanker vessel. We contract our vessels operating in the Cabotage Business either on a time -charter basis or on a contract of affreightment (“CoA”) basis.

The Barge Business

We service the Argentine, Bolivian, Brazilian, Paraguayan and Uruguayan river transportation markets through our fleet of ~~301~~300 vessels, including ~~271~~270 barges and 30 pushboats. We operate different types of pushboats and wet and dry barges for delivering a wide range of dry and liquid products between ports in the Parana, Paraguay and Uruguay River systems in South America. ~~(the~~We contract ~~Hidrovia~~our orvessels ~~the~~operating ~~“waterway”).~~in ~~Navios~~the ~~Logistics~~Barge ~~contracts~~Business ~~its vessels~~ either on a time -charter basis or on a CoA basis. We provide transportation for dry cargo (cereals, cotton pellets, soy bean, wheat, limestone (clinker), mineral iron and rolling stones), liquid cargo (hydrocarbons such as crude oil, gas oil, naphtha, fuel oil and vegetable oils) and liquefied cargo (liquefied petroleum gas (“LPG”)).

Fleet

Our current core fleet consists of a total of ~~307~~306 owned vessels, barges and pushboats.

The following is the current core fleet as of ~~September~~December 714, 2023:

Navios Logistics Fleet Summary (owned)

Pushboats/ Barges Fleet

Number ofVessels

Capacity/BHP

Description

Pushboat fleet

107,920 BHP

~~Various Sizes and Horsepower~~

Various Sizes and Horsepower

Dry Barges

~~212~~211

~~404~~403,~~550~~050 DWT

~~Dry Cargo~~

Dry Cargo

Tank Barges

173,229 m3

~~Liquid Cargo~~

Liquid Cargo

LPG Barges

4,752 m3

~~LPG~~

LPG

Total

~~301~~300

Product Tanker Fleet

Year Built

DWT

Description

Estefania H

2008

12,000

Double-hulled Product Tanker

Makenita H

2009

17,508

Double-hulled Product Tanker

Sara H

2009

9,000

Double-hulled Product Tanker

San San H

2010

16,871

Double-hulled Product Tanker

Ferni H

2010

16,871

Double-hulled Product Tanker

Elena H

2018

4,999

Double-hulled Product Tanker

Total

77,249

Product Tanker Fleet *	Year Built		DWT		Description
Estefania H		2008		12,000	Double-hulled Product Tanker
Makenita H		2009		17,508	Double-hulled Product Tanker
Sara H		2009		9,000	Double-hulled Product Tanker
San San H		2010		16,871	Double-hulled Product Tanker
Ferni H		2010		16,871	Double-hulled Product Tanker
Elena H		2018		4,999	Double-hulled Product Tanker
Total				77,249

* In August 2023, the Company completed the sale of the vessel He Man H. For additional information on the sale of He Man H, please see Note 5 “Tangible fixed assets and assets under construction” included elsewhere in this report.

Chartering Arrangements

We continually monitor developments in the shipping industry and make operational decisions based on an individual vessel and segment basis, and on our view of overall market conditions, in order to implement our overall business strategy. In the Barge Business, we typically operate under a mix of time charters and CoAs (some of which have minimum guaranteed volumes), and spot contracts. In the Cabotage Business, we typically operate under time charters with terms in excess of one year. Some of our charters provide fixed pricing, minimum-volume requirements, and adjustment formulas for labor cost and fuel price.

Chartering Arrangements

We continually monitor developments in the shipping industry and make operational decisions based on an individual vessel and a segment basis, and on our view of overall market conditions, in order to implement our overall business strategy. In the Barge Business, we typically operate under a mix of time charters and CoAs (some of which have minimum guaranteed volumes), and spot contracts. In the Cabotage Business, we typically operate under time charters with terms in excess of one year. Some of our charters provide for fixed pricing, minimum-volume requirements, and adjustment formulas for labor cost and fuel price.

Factors Affecting Navios Logistics’ Results of Operations

For further discussion on factors affecting our results of operations, see “Item 3. Key Information — D. Risk Factors” included in the 2022 Form 20-F. For information regarding governmental, economic, fiscal, monetary or political policies that could materially affect our operations, see “Item 3. Key Information—D. Risk Factors—Risks Relating to the Countries in which we Operate” in the 2022 Form 20-F.

Contract Rates

~~The~~Historically, the shipping and logistics industry has been highly volatile. In order to maximize the utilization of our fleet and storage capacity, we must be able to renew the contracts that employ our fleet and ports upon the expiration or termination of current contracts. This ability depends mainly upon economic conditions in the economic sectors in which the vessels, barges and pushboats operate, upon changes in the supply and demand for vessels, barges and pushboats, and upon changes in the supply and demand for the transshipment and storage of commodities.

Weather Conditions

In our Barge Business, we transport cargo along the Hidrovia waterway, comprising the Paraguay and Parana Rivers from Puerto Caceres (Brazil) to Nueva Palmira, Uruguay ~~(the “Hidrovia Waterway”)~~. Thus, weather-related changes adversely affecting the region, such as low water levels, could reduce or limit our ability to transport cargo effectively along the Hidrovia ~~Waterway~~waterway. Droughts and other adverse weather conditions, including any possible effects of climate change, could result in a decline in production of the agricultural products Navios Logistics transports, stores, and transships, which could result in a reduction in demand for our port and transportation services.

Foreign Currency Transactions

Our operating results, which are reported in U.S. dollars, may be affected by fluctuations in the exchange rate between the U.S. dollar and the Uruguayan peso, Argentine peso, Brazilian real and Paraguayan guarani. We use the U.S. dollar as our functional and reporting currency. Therefore, revenue and expense accounts are translated into U.S. dollars at the exchange rate in effect at the date of each transaction. The balance sheets of our foreign operations are translated using the exchange rate at the balance sheet date, except for property, and equipment and equity, which are translated at historical rates.

Our subsidiaries in Uruguay, Argentina, Brazil and Paraguay transact their operations in either U.S. dollars or Uruguayan pesos, Argentine pesos, Brazilian reais and Paraguayan guaranies, respectively; however, the subsidiaries’ primary cash flows are recorded in U.S. dollars. Transactions in currencies other than the functional currency are translated at the exchange rate in effect at the date of each transaction. Differences in exchange rates during the period between the date a transaction denominated in a foreign currency is consummated and the date on which it is either settled or translated are recognized in the unaudited condensed consolidated statement of profit.

Inflation and Fuel Price Increases

The impact of inflation on prices in the South American countries in which we operate and the effects of the current war in Ukraine and the Gaza strip may not be fully neutralized by equivalent adjustments in the rate of exchange between the local currencies and the U.S. dollar. Specifically, for our Barge and Cabotage Businesses, we negotiated, and will continue to negotiate, fuel price adjustment clauses; however, in some cases, prices that we pay for fuel are temporarily not aligned with the adjustments that we obtain under our freight contracts.

Seasonality

Certain of our businesses have seasonality aspects, and seasonality affects the results of our operations and revenues, particularly in the first and last quarters of each year. The high season for the Dry Port Terminals’ Uruguayan operations occurs from April to September and is linked to the South American harvest and the arrival of barges down the river. The high season for the Barge Business is between February and July as a result of the South American harvest and higher river levels. During the South American late spring and summer, mainly from November to January, the low water level in the northern Hidrovia waterway could adversely affect operations of the Barge Business and the volumes it transports. To the extent water levels are insufficient to accommodate the draft of a heavily laden vessel, a vessel may be only partially loaded, generating lower revenue under agreements where revenue is based on volume of cargo loaded. If water levels on a waterway are too low, vessels could be prevented entirely from loading and navigating. In addition, low water levels create difficult navigation conditions, causing voyages to last longer resulting in increased voyage expenses. Such circumstances reduce the effective available carrying capacity of the vessel for the year. Our Liquid Port Terminal and our Cabotage Business are not significantly affected by seasonality as their operations are primarily linked to refined petroleum products, and thus not significantly affected by water levels.

Seasonality

Certain of our businesses have seasonal aspects, and seasonality affects the results of our operations and revenues, particularly in the first and last quarters of each year. The high season for the Dry Port Terminals’ Uruguayan operations occurs from April to September and is linked to the South American harvest and the arrival of barges down the river. The high season for the Barge Business is between February and July as a result of the South American harvest and higher river levels. During the South American late spring and summer, mainly from November to January, the low water level in the northern Hidrovia waterway could adversely affect operations of the Barge Business and the volumes it transports. To the extent water levels are insufficient to accommodate the draft of a heavily laden vessel, a vessel may be only partially loaded, generating lower revenue under agreements where revenue is based on volume of cargo loaded. If water levels on a waterway are too low, vessels may be entirely prevented from loading and navigating. In addition, low water levels create difficult navigation conditions, causing voyages to last longer, resulting in increased voyage expenses. Such circumstances reduce the overall effective available carrying capacity of the vessel for the year. Our Liquid Port Terminal and our Cabotage Business are not significantly affected by seasonality as their operations are primarily linked to refined petroleum products, and thus not significantly affected by water levels.

Statement of Operations Breakdown by Segments

We report our operations based on three reportable business segments: the Port Terminal Business, the Cabotage Business and the Barge Business. The Port Terminal Business segment includes the operating results of our Dry Port Terminals and the Liquid Port Terminal operations. Our Dry Port Terminals comprise our Grain Port Terminal and our Iron Ore Port Terminal, each of which is located in an international tax-free trade zone in the port of Nueva Palmira, Uruguay, at the convergence of the Parana and Uruguay rivers. Our Liquid Port Terminal is an up-river port terminal with tank storage for refined petroleum products, and oil and gas, and is located in San Antonio, Paraguay, approximately 17 miles by river from the country’s capital, Asuncion. Since October 2022, we have been providing bunkering services using floating storage capacity in the port of Nueva Palmira.

Period over Period Comparisons

The following table presents consolidated revenue and expense information for the three- and ~~six~~nine-month periods ended ~~June~~September 30, 2023 and 2022. This information was derived from Navios Logistics’ unaudited condensed consolidated financial statements for the respective periods.

Following the Company’s change in accounting policy on foreign exchange differences, the foreign exchange gains and losses are presented in the same line item as the underlying transaction for each period presented. See “—Critical Accounting Policies.”

(Expressed in thousands of U.S. dollars-except other operating data)	Three-monthperiod ~~endedJune~~endedSeptember 30, 2023(unaudited)			Three-monthperiod ~~endedJune~~endedSeptember 30, 2022(unaudited)			~~Six~~Nine-monthperiod ~~endedJune~~endedSeptember 30, 2023(unaudited)			~~Six~~Nine-monthperiod ~~endedJune~~endedSeptember 30, 2022(unaudited)
Revenue	$	8178,~~553~~884		$	6874,~~905~~134		$	~~146~~225,~~633~~517		$	~~127~~201,~~752~~886
Cost of sales		(55,~~175~~083	)		(4552,~~182~~466	)		(96151,~~342~~425	)		(84136,~~251~~717	)
Gross profit	$	2623,~~378~~801		$	2321,~~723~~668		$	5074,~~291~~092		$	4365,~~501~~169
Administrative expenses		(54,~~334~~395	)		(4,~~241~~120	)		(1014,~~063~~458	)		(711,~~826~~946	)
Other operating income		~~226~~539			~~531~~521			~~447~~986			~~674~~1,123
Other operating expenses		(1,~~102~~916	)		(1,~~262~~413	)		(24,~~412~~328	)		(23,~~417~~758	)
Allowance for expected credit losses on financial assets		—			(8312	)		(392	)		(~~228~~240	)
Operating profit	$	2018,~~168~~029		$	1816,~~668~~644		$	3755,~~871~~900		$	3350,~~704~~348
Finance income		~~456~~325			40107			~~814~~1,139			56163
Finance costs		(15,~~943~~551	)		(15,~~713~~525	)		(3147,~~985~~536	)		(3146,~~253~~778	)
Other financial results		~~665~~1,752			~~3,749~~—			—1,752			3,798
Profit before tax	$	54,~~346~~555		$	61,~~744~~226		$	611,~~700~~255		$	67,~~305~~531
Income tax expense		(907	)		(372	)		(669	)		(313	)
Income tax benefit/(expense)		18			382			(651	)		69
Profit for the period	$	4,~~439~~573		$	61,~~372~~608		$	610,~~031~~604		$	57,~~992~~600
Other Operating Data
Grain Port Terminal—tons of cargo moved		~~520~~701,~~563~~045			1,~~117~~315,~~111~~732			1,~~149~~850,~~127~~172			23,~~062~~378,~~893~~625
Iron Ore Port Terminal—tons of cargo moved		1848,~~215,775~~553			~~266~~448,~~298~~865			2,~~043~~891,~~361~~913			~~307~~756,~~685~~550
Liquid Port Terminal—cubic meters of stored liquid cargo		~~198~~200,~~741~~855			~~180~~204,~~892~~924			~~364~~580,~~792~~300			~~366~~571,~~974~~898
Liquid Port Terminal —cubic meters of sales of products		98,~~908~~713			—100			1420,~~413~~555			2,~~295~~395
Barge Business—cubic meters of liquid cargo		~~218~~167,~~628~~562			~~150~~137,~~431~~285			~~404~~572,~~708~~270			~~382~~519,~~660~~945
Barge Business—dry cargo tons		~~530~~533,~~189~~351			~~331~~288,~~748~~996			~~855~~1,~~115~~388,466			~~614~~903,~~537~~533
Cabotage Business —cubic meters of liquid cargo		~~499~~385,~~113~~493			~~517~~594,~~232~~381			~~918~~1,~~795~~304,288			~~970~~1,~~973~~565,354
Cabotage Business—available days		608			691			1,238			1,411
Cabotage Business—operating days		491			572			1,022			1,076
Revenues per Segment
Port Terminal Business	$	36,430		$	30,857		$	67,341		$	58,811
Grain Port Terminal	$	8,552		$	13,064		$	17,249		$	23,925
Iron Ore Port Terminal	$	19,443		$	16,179		$	37,265		$	29,917
Liquid Port Terminal	$	1,758		$	1,614		$	3,063		$	3,075
Sales of products—Liquid Port Terminal	$	6,677		$	—		$	9,764		$	1,894
Barge Business	$	32,510		$	25,312		$	55,075		$	44,828
Cabotage Business	$	12,613		$	12,736		$	24,217		$	24,113

For the three-month period ended June 30, 2023 compared to the three-month period ended June 30, 2022



Cabotage Business—available days		556		736		1,794		2,147
Cabotage Business—operating days		489		622		1,511		1,698
Revenues per Segment
Port Terminal Business	$	32,946	$	33,048	$	100,287	$	91,859
Grain Port Terminal	$	6,853	$	13,255	$	24,102	$	37,180
Iron Ore Port Terminal	$	16,965	$	18,117	$	54,230	$	48,034
Liquid Port Terminal	$	2,018	$	1,561	$	5,081	$	4,636
Sales of products—Liquid Port Terminal	$	7,110	$	115	$	16,874	$	2,009
Barge Business	$	32,291	$	25,080	$	87,366	$	69,908
Cabotage Business	$	13,647	$	16,006	$	37,864	$	40,119

For the three-month period ended September 30, 2023 compared to the three-month period ended September 30, 2022

Revenue

The following table presents our revenues for the three-month periods ended ~~June~~September 30, 2023 and 2022:

	Three-month period ended June 30, 2023											Three-month period ended June 30, 2022
	Three-month period ended September 30, 2023											Three-month period ended September 30, 2022
	PortTerminalBusiness(unaudited)		CabotageBusiness(unaudited)			BargeBusiness(unaudited)			Total(unaudited)			PortTerminalBusiness(unaudited)		CabotageBusiness(unaudited)			BargeBusiness(unaudited)			Total(unaudited)
Time chartering revenue	$	—	$	1213,~~850~~902		$	9,~~624~~694		$	2223,~~474~~596		$	—	$	1216,~~698~~279		$	1,~~110~~391		$	1317,~~808~~670
CoA/Voyage revenue		—		—			22,~~995~~695			22,~~995~~695			—		~~288~~51			2423,~~231~~669			2423,~~519~~720
Port terminal revenue		2925,~~753~~836		—			—			2925,~~753~~836			3032,~~857~~933		—			—			3032,~~857~~933
Turnover tax		—		(~~237~~255	)		(~~109~~98	)		(~~346~~353	)		—		(~~250~~324	)		~~(29~~20	)		(~~279~~304	)
Time charter, voyage and port terminal revenues	$	2925,~~753~~836	$	1213,~~613~~647		$	32,~~510~~291		$	7471,~~876~~774		$	3032,~~857~~933	$	1216,~~736~~006		$	25,~~312~~080		$	6874,~~905~~019
Sale of Products-Liquid Port Terminal	$	67,~~677~~110		—			—		$	67,~~677~~110		$	—115		—			—		$	—115
Total Revenue	$	3632,~~430~~946	$	1213,~~613~~647		$	32,~~510~~291		$	8178,~~553~~884		$	3033,~~857~~048	$	1216,~~736~~006		$	25,~~312~~080		$	6874,~~905~~134

Time Charter, Voyage and Port Terminal Revenues: For the three-month period ended ~~June~~September 30, 2023, ~~Navios~~ Navios Logistics’ time charter, voyage and port terminal revenues ~~increased~~decreased by $62.02 million, or 83.70%, to $7471.98 million, as compared to $6874.90 million for the same period in 2022. Revenue from the Barge Business increased by $7.2 million, or 28.48%, to $32.53 million for the three-month period ended ~~June~~September 30, 2023, as compared to $25.31 million for the same period during 2022. The increase was mainly attributable to time charter-out contracts that were in place for iron ore transportation during the three months ended ~~June~~September 30, 2023. Revenue from the Port Terminal Business decreased by $17.1 million, or 3 21.65%, to $2925.8 million for the three-month period ended ~~June~~September 30, 2023, as compared to $3032.9 million for the same period during 2022. The decrease was mainly attributable to a decrease in revenue from the Grain Port Terminal due to lower grain throughput resulting from a decline in Uruguayan exports. ~~The overall Port Terminal revenue decrease was partially offset by higher tariffs and volumes transshipped at the Iron Ore Port Terminal.~~ Revenue from the Cabotage Business decreased by $02.14 million, or 114.07%, to $1213.6 million for the three-month period ended ~~June~~September 30, 2023, as compared to $1216.70 million for the same period during 2022, mainly due to the sale of the He Man H completed in August 2023, which resulted in a decrease in operating days compared to the same period during 2022.

Sales of Products—Liquid Port Terminal: For the three-month period ended ~~June~~September 30, 2023, Navios Logistics’ sales of products increased by $6.7.0 million to $6.7.1 million, as compared to ~~nil~~$0.1 million for the same period during 2022. This increase was attributable to the sale of fuel products in connection with the provision of bunkering services in the port of Nueva Palmira, which commenced in October 2022.

Cost of Sales

The following table presents our cost of sales for the three-month periods ended June 30, 2023 and 2022:

	Three-month period ended June 30, 2023								Three-month period ended June 30, 2022
	PortTerminalBusiness(unaudited)		CabotageBusiness(unaudited)		BargeBusiness(unaudited)		Total(unaudited)		PortTerminalBusiness(unaudited)		CabotageBusiness(unaudited)		BargeBusiness(unaudited)		Total(unaudited)
Time charter, voyage and port terminal expenses		$7,850		$558		$8,350		$16,758		$5,747		$705		$12,076		$18,528
Direct vessel expenses		—		9,269		11,568		20,837		—		8,923		8,681		17,604
Cost of products sold-Liquid Port Terminal		6,076		—		—		6,076		21		—		—		21
Depreciation and amortization		2,272		1,647		5,934		9,853		2,225		1,289		5,515		9,029
Impairment loss		—		1,651		—		1,651		—		—		—		—
Total cost of sales		$16,198		$13,125		$25,852		$55,175		$7,993		$10,917		$26,272		$45,182

~~Time~~Cost Charter, Voyage and Port Terminal Expenses: For the three-month period ended June 30, 2023, time charter, voyage and port terminal expenses decreased overall by $1.8 million, or 9.5%, to $16.8 million for the three-month period ended June 30, 2023, as compared to $18.5 million for the same period during 2022. Time charter and voyage expenses of ~~the~~Sales Barge Business decreased by $3.7 million, or 30.8%, to $8.4 million for the three-month period ended June 30, 2023, as compared to $12.1 million for the same period during 2022, mainly due to decreased bunker consumption and other voyage expenses resulting from time charter-out contracts in place for iron ore transportation during the current period. Time charter and voyage expenses of the Cabotage Business decreased by $0.1 million, or 20.9%, to $0.6 million for the three-month period ended June 30, 2023, as compared to $0.7 million for the same period during 2022. The overall decrease was partially mitigated by a $2.1 million, or 36.6%, increase in port terminal expenses in the Port Terminal Business to $7.9 million for the three-month period ended June 30, 2023, as compared to $5.7 million for the same period during 2022, mainly due to higher volumes transshipped in the Iron Ore Port Terminal.

~~Direct~~The ~~Vessel~~following ~~Expenses:~~table ~~Direct~~presents ~~vessel~~our ~~expenses increased~~cost ~~overall by $3.2 million, or 18.4%, to $20.8 million for the three-month period ended June 30, 2023, as compared to $17.6 million for the same period during 2022. Direct vessel expenses~~ of ~~the~~sales ~~Barge Business increased by $2.9 million, or 33.3%, to $11.6 million~~ for the three-month ~~period~~periods ended ~~June~~September 30, 2023, ~~as compared to $8.7 million for the same period during 2022, mainly due to increased payroll~~ and repairs and maintenance. Direct vessel expenses of the Cabotage Business increased by $0.3 million, or 3.9%, to $9.3 million for the three-month period ended June 30, 2023, as compared to $8.9 million for the same period during 2022.: ~~Direct vessel expenses include crew costs, victual costs, dockage expenses, lubricants, spares, insurance, maintenance and repairs.~~

Cost of Products Sold—Liquid Port Terminal: For the three-month period ended June 30, 2023, Navios Logistics’ cost of products sold increased by $6.1 million to $6.1 million, as compared to less than $0.1 million for the same period in 2022. This increase was almost entirely attributable to the increase in fuel products sold in connection with the bunkering services in the port of Nueva Palmira.


	Three-month period ended September 30, 2023								Three-month period ended September 30, 2022
	Port Terminal Business (unaudited)		Cabotage Business (unaudited)		Barge Business (unaudited)		Total (unaudited)		Port Terminal Business (unaudited)		Cabotage Business (unaudited)		Barge Business (unaudited)		Total (unaudited)
Time charter, voyage and port terminal expenses	$	7,768	$	501	$	8,238	$	16,507	$	6,040	$	487	$	13,477	$	20,004
Direct vessel expenses		—		10,000		12,203		22,203		—		11,970		7,965		19,935
Cost of products sold-Liquid Port Terminal		6,828		—		—		6,828		155		—		—		155
Depreciation and amortization		2,270		1,665		5,610		9,545		2,230		1,454		5,493		9,177
Impairment loss		—		—		—		—		—		778		2,417		3,195

Total cost of sales	$	16,866	$	12,166	$	26,051	$	55,083	$	8,425	$	14,689	$	29,352	$	52,466

~~Depreciation~~Time Charter, Voyage and ~~Amortization~~Port Terminal Expenses: For the three-month period ended ~~June~~September 30, 2023, ~~Navios~~time charter, ~~Logistics’~~voyage ~~depreciation~~ and ~~amortization increased~~port terminal expenses decreased overall by $03.85 million, or 917.15%, to $916.95 million for the three-month period ended September 30, 2023, as compared to $920.0 million for the same period during 2022. ~~Depreciation~~Time charter and ~~amortization~~voyage inexpenses of the Barge Business ~~increased~~decreased by $05.42 million, or 738.69%, to $58.92 million for the three-month period ended ~~June~~September 30, 2023, as compared to $513.5 million for the same period induring 2022, mainly due to ~~the~~decreased ~~delivery~~bunker ofconsumption ~~eight~~resulting ~~liquid~~from ~~barges~~time charter-out contracts in place for iron ore transportation during the current period. ~~Depreciation~~The ~~and~~overall ~~amortization~~decrease inwas ~~the~~partially ~~Cabotage~~offset ~~Business increased~~ by a $01.47 million, or 2728.86%, increase in port terminal expenses in the Port Terminal Business to $17.68 million for the three-month period ended ~~June~~September 30, 2023, as compared to $16.30 million for the same period induring 2022, mainly due to ~~increased~~higher ~~amortization~~volumes oftransshipped ~~dry~~in ~~dock~~the ~~expenses.~~Iron ~~Depreciation and~~Ore ~~amortization~~Port inTerminal. ~~the~~Time ~~Port~~charter ~~Terminal~~and ~~Business~~voyage ~~decreased~~expenses byof ~~less~~the ~~than~~Cabotage ~~$0.1 million,~~Business orremained ~~2.1%,~~stable toat $20.35 million for ~~the~~each of the three-month periods ~~period~~ ended ~~June~~September 30, 2023, asand ~~compared to $2.2 million for the same period in~~ 2022.

~~Impairment~~Direct ~~Loss~~Vessel Expenses: Direct vessel expenses increased overall by $2.3 ~~Impairment~~million, ~~loss~~or ~~incurred~~11.4%, into $22.2 million for the three-month period ended ~~June~~September 30, 2023, ~~was~~as compared to $119.79 million asfor the same period during 2022. Direct vessel expenses of the Barge Business increased by $4.2 million, or 53.2%, to $12.2 million for the three-month period ended September 30, 2023, as compared to ~~nil~~$8.0 million for the same period during 2022, ~~and~~mainly ~~was~~ due to $1increased crew costs, and repairs and maintenance.~~7 million~~ ~~incurred~~Direct invessel expenses of the Cabotage Business ~~resulting~~decreased ~~from~~by ~~the~~$2.0 million, ~~sale~~or of16.5%, to $10.0 million for the ~~vessel~~three-month Heperiod ~~Man~~ended HSeptember 30, 2023, as compared to $12.0 million ~~For~~for ~~additional~~the ~~information~~same period during 2022, ~~refer~~mainly due to ~~Note~~decreased 5crew ~~“Tangible~~costs. ~~fixed~~Direct ~~assets~~vessel ~~and~~expenses ~~assets~~include crew costs, victual costs, dockage ~~under~~expenses, ~~construction”~~lubricants, ~~included~~spares ~~elsewhere~~and instores, ~~this~~insurance, ~~report~~and repairs and maintenance.

Cost of Products Sold—Liquid Port Terminal: For the three-month period ended September 30, 2023, Navios Logistics’ cost of products sold increased by approximately $6.7 million to $6.8 million, as compared to $0.2 million for the same period in 2022. This increase was almost entirely attributable to the increase in fuel products sold in connection with the provision of bunkering services in the port of Nueva Palmira, which commenced in October 2022.

Depreciation and Amortization: For the three-month period ended September 30, 2023, Navios Logistics’ depreciation and amortization increased by $0.4 million, or 4.0%, to $9.5 million, as compared to $9.2 million for the same period during 2022. Depreciation and amortization in the Barge Business increased by $0.1 million, or 2.1%, to $5.6 million for the three-month period ended September 30, 2023, as compared to $5.5 million for the same period in 2022, mainly due to the delivery of eight liquid barges during the current period. Depreciation and amortization in the Cabotage Business increased by $0.2 million, or 14.5%, to $1.7 million for the three-month period ended September 30, 2023, as compared to $1.5 million for the same period in 2022, mainly due to increased amortization of dry dock expenses. Depreciation and amortization in the Port Terminal Business increased by less than $0.1 million, or 1.8%, to $2.3 million for the three-month period ended September 30, 2023, as compared to $2.2 million for the same period in 2022.

Impairment Loss: No impairment loss was incurred in the three-month period ended September 30, 2023. Impairment loss incurred in the three-month period ended September 30, 2022 was $3.2 million and was due to (i) $0.8 million incurred in the Cabotage Business resulting from the sale of the vessel Malva H; and (ii) $2.4 million incurred in the Barge Business in relation to certain barges.

Administrative Expenses

Administrative expenses increased by $10.13 million, or 256.87%, to $54.34 million for the three-month period ended ~~June~~September 30, 2023, as as compared to $4.21 million for the same period during 2022. ~~This increase was due mainly to an increase in payroll, travel expenses and other general and administrative expenses.~~ Certain of our administrative expenses are directly charged to their respective business segments, while others are allocated proportionally across business segments based on headcount.

Other Operating Income

Other operating income decreased overall by $0.3 million, or 57.4%, to $0.2 million for the three-month period ended June 30, 2023, as compared to $0.5 million for the same period in 2022. Other operating income in the Barge Business decreased by $0.2 million, or 49.9%, to $0.2 million for the three-month period ended June 30, 2023, as compared to $0.4 million for the same period of 2022. Other operating income in the Cabotage Business decreased by less than $0.1 million to nil for the three-month period ended June 30, 2023, as compared to less than $0.1 million for the same period of 2022. Other operating income in the Port Terminal Business decreased by less than $0.1 million to less than $0.1 million for the three-month period ended June 30, 2023, as compared to less than $0.1 million for the same period of 2022.

Other Operating Expenses

Other operating expenses decreased overall by $0.2 million, or 12.7%, to $1.1 million for the three-month period ended June 30, 2023, as compared to $1.3 million for the same period in 2022. Other operating expenses in the Barge Business decreased by $0.4 million, or 40.6%, to $0.5 million for three-month period ended June 30, 2023, as compared to $0.9 million income for the same

~~period of 2022. This decrease was mainly due to a decrease in taxes other than income taxes.~~ Other ~~operating~~Operating ~~expenses~~Income in the Cabotage Business increased by $0.1 million, or 25.9%, to $0.5 million for the three-month period ended June 30, 2023, as compared to $0.4 million the same period during 2022. Other operating expenses in the Port Terminal Business increased by $0.1 million to $0.1 million for the three-month period ended June 30, 2023, as compared to nil the same period during 2022.

Other operating income remained stable at $0.5 million for each of the three-month periods ended September 30, 2023 and 2022.

Other Operating Expenses

Other operating expenses increased overall by $0.5 million, or 35.7%, to $1.9 million for the three-month period ended September 30, 2023, as compared to $1.4 million for the same period in 2022. Other operating expenses in the Barge Business increased by $0.9 million to $1.4 million for three-month period ended September 30, 2023, as compared to $0.5 million for the same period of 2022. This increase was mainly due to an increase in taxes other than income taxes. Other operating expenses in the Port Terminal Business increased by $0.1 million to $0.2 million for the three-month period ended September 30, 2023, as compared to less than $0.1 million the same period during 2022. Other operating expenses in the Cabotage Business decreased by $0.5 million, or 62.2%, to $0.3 million for the three-month period ended September 30, 2023, as compared to $0.8 million the same period during 2022. This decrease was mainly due to a decrease in taxes other than income taxes.

Allowance for Expected Credit Losses on Financial Assets

~~Overall,~~Allowance ~~allowance~~ for expected credit losses on financial assets decreased ~~by less than $0.1 million~~ to nil ~~million~~ for the three-month period ended ~~June~~September 30, 2023, as compared to less than $0.1 million for the same period during 2022.

Operating Profit/(Loss)

Total operating profit increased by $1.54 million, or 8.03%, to $2018.20 million for the three-month period ended ~~June~~September 30, 2023, compared to $1816.76 million for the same period in 2022.

Operating profit in the Barge Business increased by $79.37 million to $32.17 million for the three-month period ended ~~June~~September 30, 2023 as compared to $47.10 million operating loss for the same period in 2022. The increase in operating profit was mainly attributable to: (i) an increase in revenue; (ii) a decrease in time-charter and voyage expenses; (iii) ~~a decrease~~impairment loss incurred in the three-month period ended September 30, 2022; (iv) an increase in other operating ~~expenses~~income; and (ivv) a decrease in allowance for expected credit losses on financial assets. The overall increase in operating profit in the Barge Business was partially offset by: (i) an increase in direct vessel expenses; (ii) an increase in ~~administrative~~other operating expenses; (iii) an increase in depreciation and amortization; and (iv) aan ~~decrease~~increase in ~~other~~administrative ~~operating income~~expenses.

Operating profit in the ~~Port~~Cabotage ~~Terminal~~ Business increased ~~decreased~~ by $30.14 million, ~~or 14.1%,~~ to $180.95 million for the three-month period ended ~~June~~September 30, 2023, as compared to $~~22.~~0.1 million operating profit for the same period in 2022. ~~Though~~The ~~the~~increase ~~Port~~in ~~Terminal~~operating ~~Business~~profit ~~realized~~was ~~increased~~mainly ~~revenue~~attributable to: ~~for~~(i) a decrease in direct vessel expenses; (ii) impairment loss incurred in the three-month period ended September 30, ~~this~~2022; (iii) a decrease in other operating expenses. The increase in operating profit was partially ~~mitigated~~offset by : (i) ana ~~increase~~decrease in ~~cost~~revenue; ~~of products sold~~ (ii) ana ~~increase~~decrease in ~~port~~other ~~terminal~~operating ~~expenses~~income; (iii) ~~higher~~an ~~administrative~~increase ~~expenses~~in depreciation and amortization; (iv) aan ~~decrease~~increase in ~~other~~administrative ~~operating income~~expenses; and (v) an increase in ~~other~~time ~~operating~~charter and voyage expenses.

Operating ~~loss~~profit in the ~~Cabotage~~Port Terminal Business ~~increased~~decreased by $28.7 million, or 37.0%, to $114.89 million for the three-month period ended ~~June~~September 30, 2023, as compared to $023.86 million operating profit for the same period in 2022. The ~~increase~~decrease in operating ~~loss~~profit was mainly attributable to: (i) ~~the~~a ~~impairment~~decrease ~~loss~~in ~~incurred~~port ~~during~~terminal ~~the current period~~revenues; (ii) an increase in ~~depreciation~~cost ~~and~~of ~~amortization~~products sold; (iii) an increase in ~~direct~~port ~~vessel~~terminal expenses; (iv) an increase in ~~administrative~~other operating expenses; (v) ahigher ~~decrease~~administrative ~~in revenue~~expenses; and (vi) anhigher ~~increase~~depreciation inand ~~other operating expenses~~amortization. The ~~increase~~decrease in operating ~~loss~~profit was ~~partially~~ ~~offset~~mainly mitigated by aan ~~decrease~~increase in ~~time~~sales ~~charter~~of ~~and voyage expenses~~products.

Finance Income

Finance income increased by $0.42 million to $0.53 million for the three-month period ended ~~June~~September 30, 2023, as compared to ~~less~~ ~~than~~ $0.1 million for the same period in 2022. Finance income is allocated to our business segments pro rata to the book value of our tangible assets.

Finance Costs

Overall, finance cost increased by less than $0.21 million, or 10.52%, to $15.96 million for the three-month period ended ~~June~~September 30, 2023, as compared to $15.75 million for the same period in 2022. ~~These variations were mainly attributable to the higher weighted average interest rate for the three-month period ended June 30, 2022.~~ The annualized weighted average interest rates of the Company’s total borrowings were 10.3639% and 10.1611% for the three-month periods ended ~~June~~September 30, 2023 and 2022, respectively. The finance cost of the 2025 Notes (as defined herein) is allocated to the business segments pro rata to the book value of our tangible assets.

Other Financial Results

During the three-month period ended June 30, 2023, the Company changed its accounting policy on foreign exchange differences recognized in the unaudited condensed consolidated statements of profit. Following this change, the foreign exchange gains and losses are presented in the same line item as the underlying transaction. See “—Critical Accounting Policies.”

Overall, other financial results decreased by $3.1 million to $0.7 million for the three-month period ended June 30, 2023, as compared to $3.7 million for the same period in 2022.

~~Income~~Other ~~Tax~~Financial ~~Expense~~Results

~~Income~~During ~~tax expense increased by $0.5 million to $0.9 million for~~ the three-month period ended ~~June~~September 30, 2023, asthe ~~compared~~Company ~~to $0.4 million~~changed ~~for~~its ~~the~~accounting ~~same~~policy ~~period~~on ~~during~~foreign ~~2022.~~exchange ~~Income~~differences recognized ~~tax~~in ~~expense of~~ the ~~Barge~~unaudited ~~Business~~condensed ~~decreased~~consolidated bystatements ~~less~~of ~~than $0~~profit.~~1 million~~ toFollowing ~~less~~this ~~than~~change, ~~$0.1 million for~~ the ~~three-month~~foreign ~~period~~exchange ~~ended~~gains ~~June 30,~~and ~~2023,~~losses asare ~~compared~~presented toin ~~$0.1 million for~~ the same ~~period~~line ~~during~~item ~~2022.~~as ~~Income tax expense of~~ the ~~Cabotage~~underlying ~~Business increased by $0~~transaction.~~6 million~~ toSee ~~$0.8 million~~“—Critical ~~for the three-month period ended June 30, 2023, as compared to $0.2 million for the same period~~Accounting ~~during 2022~~Policies.”

Overall, other financial results increased by $1.8 million to $1.8 million for the three-month period ended September 30, 2023, as compared to nil for the same period in 2022.

Income Tax (Expense)/Benefit

Income tax benefit decreased by $0.4 million to less than $0.1 million for the three-month period ended September 30, 2023, as compared to $0.4 million for the same period during 2022. Income tax expense of the Cabotage Business increased by $0.4 million to $0.4 million for the three-month period ended September 30, 2023, as compared to less than $0.1 million for the same period during 2022. Income tax benefit of the Barge Business remained stable at $0.4 million for each of the three-month periods ended September 30, 2023 and 2022.

Profit/(Loss) for the Period

In the aggregate, profit for the period ~~decreased~~increased by $13.90 million to $4.46 million for the three-month period ended ~~June~~September 30, 2023, as compared to $61.46 million for the same period in 2022.

~~Profit~~Loss for the period in the ~~Port~~Barge ~~Terminal~~ Business decreased by $310.41 million, or 2175.6%, to $123.43 million for the three-month period ended ~~June~~ September 30, 2023, as compared to $1513.84 million for the same period in 2022. The decrease in ~~profit~~loss was mainly attributable to: (i) aan ~~decrease~~increase in operating profit; (ii) an increase in other financial results; (iii) an increase in finance ~~costs~~income; and (~~iii~~iv) an increase in income tax benefit. The decrease in ~~other~~loss ~~financial~~for ~~results,~~the period was partially ~~mitigated~~offset by an increase in finance ~~income~~costs.

Loss for the period in the Cabotage Business ~~increased~~decreased by $21.45 million, or ~~115~~63.26%, to $40.48 million for the three-month period ended ~~June~~September 30, 2023, as compared to a $2.13 million for the same period in 2022. The ~~increase~~decrease in loss was mainly attributable to: (i) an increase in ~~operating~~other ~~loss~~financial results; (ii) an increase in ~~income~~operating ~~tax expense~~profit; ~~and~~ (iii) ~~an increase in other financial results, partially offset by (i)~~ a decrease in finance cost; and (iiiv) an increase in finance income, partially offset by an increase in income tax expense.

~~Loss~~Profit for the period in the ~~Barge~~Port Terminal Business decreased by $3.8.6 million, or 5249.08%, to $38.56 million for the three-month period ended ~~June~~September 30, 2023, as compared to $717.43 million for the same period in 2022. The decrease in ~~loss~~ profit was mainly attributable to: ~~(i) an~~a ~~increase~~decrease in operating profit;, ~~(ii) a~~partially ~~decrease~~mitigated inby: ~~income tax expense; and~~ (~~iii~~i) an increase in finance income~~. The decrease in loss for the period was partially offset by (i) a decrease in other financial results~~; and (ii) ana ~~increase~~decrease in finance costs.

For the ~~six~~nine-month period ended ~~June~~September 30, 2023 compared to the ~~six~~nine-month period ended ~~June~~September 30, 2022

Revenue

The following table presents our revenues for the ~~six~~nine-month periods ended ~~June~~September 30, 2023 and 2022:

Six-month period ended June 30, 2023

Six-month period ended June 30, 2022

Nine-month period ended September 30, 2023

Nine-month period ended September 30, 2022

PortTerminalBusiness(unaudited)

CabotageBusiness(unaudited)

BargeBusiness(unaudited)

Total(unaudited)

PortTerminalBusiness(unaudited)

CabotageBusiness(unaudited)

BargeBusiness(unaudited)

Total(unaudited)

Time chartering revenue

—

2438,~~688~~590

1626,~~520~~214

4164,~~208~~804

—

2238,~~678~~957

23,~~523~~914

2542,~~201~~871

CoA/Voyage revenue

—

3861,~~762~~457

—

1,~~884~~935

4266,~~442~~111

4468,~~326~~046

Port terminal revenue

5783,~~577~~413

—

5783,~~577~~413

5689,~~917~~850

—

5689,~~917~~850

Turnover tax

—

(~~471~~726

)

(~~207~~305

)

(~~678~~1,031

)

—

(~~449~~773

)

(~~137~~117

)

(~~586~~890

)

Time charter, voyage and port terminal revenues

5783,~~577~~413

2437,~~217~~864

5587,~~075~~366

~~136~~208,~~869~~643

5689,~~917~~850

2440,~~113~~119

4469,~~828~~908

~~125~~199,~~858~~877

Sale of Products-Liquid Port Terminal

916,~~764~~874

—

916,~~764~~874

12,~~894~~009

—

12,~~894~~009

Total Revenue

67100,~~341~~287

2437,~~217~~864

5587,~~075~~366

~~146~~225,~~633~~517

5891,~~811~~859

2440,~~113~~119

4469,~~828~~908

~~127~~201,~~752~~886

Time Charter, Voyage and Port Terminal Revenues: For the six-month period ended June 30, 2023, Navios Logistics’ time charter, voyage and port terminal revenues increased by $11.0 million, or 8.7%, to $136.9 million, as compared to $125.9 million for the same period during 2022. Revenue from the Barge Business increased by $10.2 million, or 22.9%, to $55.1 million for the six-month period ended June 30, 2023, as compared to $44.8 million for the same period during 2022, mainly attributable to time charter-out contracts that were in place for iron ore transportation. Revenue from the Port Terminal Business increased by $0.7 million, or 1.2%, to $57.6 million for the six-month period ended June 30, 2023, as compared to $56.9 million for the same period during 2022. The increase

Time Charter, Voyage and Port Terminal Revenues: For the nine-month period ended September 30, 2023, Navios Logistics’ time charter, voyage and port terminal revenues increased by $8.8 million, or 4.4%, to $208.6 million, as compared to $199.9 million for the same period during 2022. Revenue from the Barge Business increased by $17.5 million, or 25.0%, to $87.4 million for the nine-month period ended September 30, 2023, as compared to $69.9 million for the same period during 2022. The increase was mainly attributable to ~~higher~~time charter-out contracts ~~tariffs~~that ~~and~~were ~~volumes~~in ~~transshipped~~place atfor iron ore transportation during the ~~Iron~~nine-months ~~Ore~~ended September 30, 2023. Revenue from the Port Terminal, ~~partially~~Business ~~offset~~decreased by $6.4 million, or 7.2%, to $83.4 million for the nine-month period ended September 30, 2023, as compared to $89.9 million for the same period during 2022. The decrease was mainly attributable to a decrease in revenues from the Grain Port Terminal due to lower grain throughput resulting from a decline in Uruguayan exports, partially offset by higher tariffs and volumes transshipped at the Iron Ore Port Terminal. Revenue from the Cabotage Business ~~increased~~decreased by $02.13 million, or 05.46%, to $2437.29 million for the ~~six~~nine-month period ended ~~June~~September 30, 2023, as compared to $2440.1 million for the same period during 2022, mainly due to the sale of the He Man H completed in August 2023 that resulted in a decrease in operating days compared to the same period during 2022.

Sales of Products- Liquid Port Terminal: For the ~~six~~nine-month period ended ~~June~~ September 30, 2023, Navios Logistics’ sales of products increased by $714.9 million to $916.89 million, as compared to $12.90 million for the same period during 2022. This increase was attributable to the sale of fuel products in connection with the provision of bunkering services in the port of Nueva Palmira, which commenced in October 2022.

Cost of Sales

The following table presents our costs of sales for the ~~six~~nine-month periods ended ~~June~~September 30, 2023 and 2022:

Six-month period ended June 30, 2023

Six-month period ended June 30, 2022

Nine-month period ended September 30, 2023

Nine-month period ended September 30, 2022

PortTerminalBusiness(unaudited)

CabotageBusiness(unaudited)

BargeBusiness(unaudited)

Total(unaudited)

PortTerminalBusiness(unaudited)

CabotageBusiness(unaudited)

BargeBusiness(unaudited)

Total(unaudited)

Time charter, voyage and port terminal expenses

1321,~~690~~458

~~958~~1,459

1523,~~065~~303

2946,~~713~~220

1016,~~172~~212

1,~~390~~877

1933,~~559~~036

3151,~~121~~125

Direct vessel expenses

—

1626,893

2032,~~021~~224

3659,~~914~~117

—

1628,~~899~~869

1624,~~622~~587

3353,~~521~~456

Cost of products sold-Liquid Port Terminal

815,~~826~~654

—

815,~~826~~654

1,~~712~~867

—

1,~~712~~867

Depreciation and amortization

47,~~848~~118

34,~~331~~996

1116,~~059~~669

1928,~~238~~783

46,~~378~~608

23,~~545~~999

1016,~~974~~467

1727,~~897~~074

Impairment loss

—

1,651

—

1,651

—

—778

—2,417

—3,195

Total cost of sales

2744,~~364~~230

2234,~~833~~999

4672,~~145~~196

96151,~~342~~425

1624,~~262~~687

2035,~~834~~523

4776,~~155~~507

84136,~~251~~717

Time Charter, Voyage and Port Terminal Expenses: For the ~~six~~nine-month period ended ~~June~~September 30, 2023, time charter, voyage and port terminal expenses decreased overall by $1.4.9 million, or 49.56%, to $2946.72 million, as compared to $3151.1 million for the same period during 2022. Time charter and voyage expenses of the Barge Business decreased by $49.57 million, or 2329.05%, to $1523.13 million for the ~~six~~nine-month period ended ~~June~~September 30, 2023, as compared to $1933.60 million for the same period during 2022, mainly due to decreased bunker consumption ~~and other voyage expenses~~ resulting from time charter-out contracts in place for iron ore transportation during the current period. Time charter and voyage expenses of the Cabotage Business decreased by $0.4 million, or 3122.13%, to $1.05 million for the ~~six~~nine-month period ended ~~June~~September 30, 2023, as compared to $1.49 million for the same period during ~~2023~~2022. The overall decrease was partially ~~mitigated~~offset by a $3.5.2 million, or 3432.64%, increase in port terminal expenses in the Port Terminal Business to $1321.75 million for the ~~six~~nine-month period ended ~~June~~ September 30, 2023, as compared to $1016.2 million for the same period during 2022, mainly due to higher volumes transshipped in the Iron Ore Port Terminal.

Direct Vessel Expenses: Overall, direct vessel expenses increased by $3.4 million, or 10.1%, to $36.9 million for the six-month period ended June 30, 2023, as compared to $33.5 million for the same period during 2022. Direct vessel expenses of the Barge Business increased by $3.4 million, or 20.4%, to $20.0 million for the six-month period ended June 30, 2023, as compared to $16.6 million for the same period during 2022, mainly due to increased payroll and repairs and maintenance. The Cabotage Business remained stable at $16.9 million for each of the six-month period ended June 30, 2023 and 2022. Direct vessel expenses include crew costs, victual costs, dockage expenses, lubricants, spares, insurance, maintenance and repairs.

Cost of Products Sold- Liquid Port Terminal: For the six-month period ended June 30, 2023, Navios Logistics’ cost of products sold increased by $7.1 million to $8.8 million, as compared to $1.7 million for the same period in 2022. This increase was mainly attributable to an increase in fuel products sold in connection with the bunkering services in the port of Nueva Palmira.

Depreciation and Amortization: For the six-month period ended June 30, 2023, Navios Logistics’ depreciation and amortization increased by $1.3 million, or 7.5%, to $19.2 million, as compared to $17.9 million for the same period during 2022. Depreciation and amortization in the Cabotage Business increased by $0.8 million, or 30.9%, to $3.3 million for the six-month period ended June 30, 2023, as compared to $2.5 million for the same period in 2022, mainly due to increased amortization of dry dock expenses. Depreciation and amortization in the Barge Business increased by $0.1 million, or 0.8%, to $11.1 million for the six-month period ended June 30, 2023, as compared to $11.0 million for the same period in 2022. Depreciation and amortization in the Port Terminal Business increased by $0.5 million, or 10.7%, to $4.8 million for the six-month period ended June 30, 2023, as compared to $4.4 million for the same period in 2022, mainly due to increased depreciation expense of tangible assets.

~~Impairment~~Direct ~~Loss~~Vessel Expenses: Overall, direct vessel expenses increased by $5.7 ~~Impairment~~million, ~~loss~~or 10.6%, ~~incurred~~to in$59.1 million for the ~~six~~nine-month period ended ~~June~~September 30, 2023, ~~was~~as compared to $153.5 million for the same period during 2022. Direct vessel expenses of the Barge Business increased by $7.6 million, or 31.1%, to $32.2 million for the nine-month period ended September 30, 2023, as compared to ~~nil~~$24.6 million for the same period during 2022, ~~and~~mainly ~~was~~ due to $1increased crew costs, repairs and maintenance and stores.~~7 million~~ ~~incurred~~Direct invessel ~~the~~expenses of the Cabotage Business ~~resulting~~decreased ~~from~~by ~~the~~$2.0 million, ~~sale~~or of6.8%, to $26.9 million for the ~~vessel~~ Henine-month ~~Man~~period Hended September 30, 2023, as compared to $28.9 million ~~For~~for ~~additional~~the ~~information~~same period during 2022, ~~refer~~mainly due to ~~Note~~increased 5crew ~~“Tangible~~costs. ~~fixed~~Direct vessel ~~assets~~expenses ~~and~~include ~~assets~~crew ~~under~~costs, ~~construction”~~victual ~~included~~costs, ~~elsewhere~~dockage inexpenses, ~~this~~lubricants, ~~report~~spares and stores, insurance, and repairs and maintenance.

Cost of Products Sold- Liquid Port Terminal: For the nine-month period ended September 30, 2023, Navios Logistics’ cost of products sold increased by $13.8 million to $15.7 million, as compared to $1.9 million for the same period in 2022. This increase was mainly attributable to an increase in fuel products sold in connection with the provision of bunkering services in the port of Nueva Palmira, which commenced in October 2022.

Depreciation and Amortization: For the nine-month period ended September 30, 2023, Navios Logistics’ depreciation and amortization increased by $1.7 million, or 6.3%, to $28.8 million, as compared to $27.1 million for the same period during 2022. Depreciation and amortization in the Cabotage Business increased by $1.0 million, or 24.9%, to $5.0 million for the nine-month period ended September 30, 2023, as compared to $4.0 million for the same period in 2022, mainly due to increased amortization of dry dock expenses. Depreciation and amortization in the Port Terminal Business increased by $0.5 million, or 7.7%, to $7.1 million for the nine-month period ended September 30, 2023, as compared to $6.6 million for the same period in 2022, mainly due to increased depreciation expense of tangible assets. Depreciation and amortization in the Barge Business increased by $0.2 million, or 1.2%, to $16.7 million for the nine-month period ended September 30, 2023, as compared to $16.5 million for the same period in 2022.

Impairment Loss: Impairment loss incurred in the nine-month period ended September 30, 2023 was $1.7 million and was due to $1.7 million incurred in the Cabotage Business resulting from the sale of the vessel He Man H. For additional information, refer to Note 5 “Tangible fixed assets and assets under construction” included elsewhere in this report. Impairment loss incurred in the nine-month period ended September 30, 2022 was $3.2 million and was due to (i) $0.8 million incurred in the Cabotage Business resulting from the sale of the vessel Malva H; and (ii) $2.4 million incurred in the Barge Business in relation to certain barges.

Administrative Expenses

Administrative expenses increased by $2.25 million, or 2821.60%, to $1014.15 million for the ~~six~~ nine-month period ended ~~June~~September 30, 2023, as compared to $711.89 million for the same period during 2022. This increase was due mainly to an increase in payroll, travel expenses and other general and administrative expenses. Certain of our administrative expenses are directly charged to their respective business segments, while others are allocated proportionally across business segments based on headcount.

Other Operating Income

Other operating income decreased by $0.21 million, or 3312.72%, to $01.40 million for the ~~six~~nine-month period ended ~~June~~September 30, 2023, as compared to $01.71 million for the same period in 2022. Other operating income in the ~~Barge~~Cabotage Business decreased by $0.23 million, ~~or 26.9%,~~ to ~~$0.4 million~~nil for the ~~six~~nine-month period ended ~~June~~September 30, 2023, as compared to $0.63 million for the same period of 2022. Other operating income in the ~~Cabotage~~Barge Business ~~decreased~~increased by less than $0.1 million, or 6.5%, to ~~nil~~$0.9 million for the ~~six~~nine-month period ended ~~June~~September 30, 2023, as compared to ~~less than~~ $0.19 million for the same period of 2022. Other operating income in the Port Terminal Business ~~decreased~~increased by less than $0.1 million to less than $0.1 million for the ~~six~~nine-month period ended ~~June~~September 30, 2023, as compared to ~~less than~~nil ~~$0.1 million~~ for the same period of 2022.

Other Operating Expenses

Other operating expenses ~~remained~~increased ~~stable~~overall atby $0.6 million, or 15.2%, to $4.3 million for the nine-month period ended September 30, 2023, as compared to $3.8 million for the same period in 2022. Other operating expenses in the Barge Business increased by $0.6 million, or 30.4%, to $2.8 million for ~~each~~nine-month period ended September 30, 2023, as compared to $2.1 million income for the same period of 2022. This increase was mainly due to an increase in taxes other than income taxes. Other operating expenses in the ~~six~~Port Terminal Business increased by $0.3 million to $0.3 million for the nine-month ~~periods~~period ended September 30, 2023, as compared to less than $0.1 million the same period during 2022. Other operating expenses in the Cabotage Business decreased by $0.4 million, or 22.7%, to ~~June~~$1.3 million for the nine-month period ended September 30, 2023, ~~and~~as compared to $1.6 million the same period during 2022. This decrease was mainly due to a decrease in taxes other than income taxes.

Allowance for Expected Credit Losses on Financial Assets

Overall, allowance for expected credit losses on financial assets increased by $0.2 million, or 7163.93%, to $0.4 million for the ~~six-month period ended June 30, 2023, as compared to $0.2 million for the same period in 2022. Allowance for expected credit losses on financial assets in the Port Terminal Business increased by~~ ~~$0.4 million to $0.4 million for the six~~nine-month period ended ~~June~~September 30, 2023, as compared to ~~nil for the same period of 2022. Allowance for expected credit losses on financial assets in the Barge Business decreased by~~ $0.2 million ~~to nil~~ for the ~~six-month period ended June 30, 2023, as compared to $0.2 million for the~~ same period ~~of 2022. Allowance for expected credit losses on financial assets~~ in ~~the Cabotage Business was nil for each of the six-month periods ended June 30, 2023 and~~ 2022.

Operating Profit/(Loss)

Total operating profit increased by $4.2 million, or 12.4%, to $37.9 million for the six-month period ended June 30, 2023, compared to $33.7 million for the same period in 2022.

Operating profit in the Barge Business increased by $10.3 million to $1.9 million for the six-month period ended June 30, 2023 as compared to $8.4 million operating loss for the same period in 2022. The increase in operating profit was mainly attributable to: (i) an increase in revenue; (ii) a decrease in time-charter and voyage expenses; and (iii) a decrease in allowance for expected credit losses on financial assets. The overall increase in operating profit in the Barge Business was partially offset by (i) an increase in direct vessel expenses; (ii) an increase in administrative expenses; (iii) a decrease in other operating income; and (iv) an increase in depreciation and amortization.

Operating loss in the Cabotage Business increased by $2.5 million, to $1.2 million for the six-month period ended June 30, 2023, as compared to $1.3 million operating profit for the same period in 2022. The increase in operating loss was mainly attributable to: (i) impairment loss incurred during the current period presented; (ii) an increase in depreciation and amortization; and (iii) an increase in administrative expenses. The increase in operating loss was partially offset by (i) a decrease in time charter and voyage expenses; and (ii) an increase in revenue.

Operating profit in the Port Terminal Business decreased by $3.7 million, or 9.0%, to $37.1 million for the six-month period ended June 30, 2023, as compared to $40.8 million for the same period in 2022. Though the Port Terminal Business realized increased revenue for the period, this increase was partially offset by (i) an increase in cost of products sold (ii) an increase in port terminal expenses; (iii) higher administrative expenses; (iv) an increase in depreciation and amortization; and (v) an increase in allowance for expected credit losses on financial assets.

Operating Profit/(Loss)

Total operating profit increased by $5.6 million, or 11.0%, to $55.9 million for the nine-month period ended September 30, 2023, compared to $50.3 million for the same period in 2022.

Operating profit in the Barge Business increased by $20.0 million, or 130.1%, to $4.6 million for the nine-month period ended September 30, 2023 as compared to a $15.4 million operating loss for the same period in 2022. The increase in operating profit was mainly attributable to: (i) an increase in revenue; (ii) a decrease in time-charter and voyage expenses; (iii) impairment loss incurred in the three-month period ended September 30, 2022; and (iv) a decrease in allowance for expected credit losses on financial assets. The overall increase in operating profit in the Barge Business was partially offset by (i) an increase in direct vessel expenses; (ii) an increase in administrative expenses; (iii) an increase in other operating expenses; (iv) an increase in depreciation and amortization; and (v) a decrease in other operating income.

Operating loss in the Cabotage Business increased by $2.1 million, or 150.3%, to $0.7 million for the nine-month period ended September 30, 2023, as compared to $1.4 million operating profit for the same period in 2022. The increase in operating loss was mainly attributable to: (i) a decrease in revenue; (ii) an increase in depreciation and amortization; (iii) an increase in impairment loss; (iv) an increase in administrative expenses; and (v) a decrease in operating income. The increase in operating loss was partially mitigated by (i) a decrease in direct vessel expenses; (ii) a decrease in time charter and voyage expenses; and (ii) a decrease in other operating expenses.

Operating profit in the Port Terminal Business decreased by $12.4 million, or 19.2%, to $52.0 million for the nine-month period ended September 30, 2023, as compared to $64.4 million for the same period in 2022. The decrease in operating profit was mainly attributable to: (i) an increase in cost of products sold; (ii) a decrease in port terminal revenues; (iii) an increase in port terminal expenses; (iv) higher administrative expenses; (v) an increase in depreciation and amortization; (vi) an increase in allowance for expected credit losses on financial assets; and (vii) and increase in other operating expenses. The decrease in operating profit was partially mitigated by: (i) an increase in sales of products and (ii) an increase in other operating income.

Finance Income

Finance income increased by $01.80 million to $01.81 million for the ~~six~~nine-month period ended ~~June~~ September 30, 2023, as compared to less than $0.12 million for the same period in 2022. Finance income is allocated to our business segments pro rata to the book value of our tangible assets.

Finance Costs

Overall, finance cost increased by $0.78 million, or 21.36%, to $3247.05 million for the ~~six~~nine-month period ended ~~June~~September 30, 2023, as compared to $3146.38 million for the same period in 2022. These variations were mainly attributable to the higher weighted average interest rate for the ~~six~~nine-month period ended ~~June~~September 30, 2023. The annualized weighted average interest rates of the Company’s total borrowings were 10.3133% and 10.1715% for the ~~six~~nine-month periods ended ~~June~~September 30, 2023 and 2022, respectively. The finance cost of the 2025 Notes (as defined herein) is allocated to the business segments pro rata to the book value of our tangible assets.

Other Financial Results

Overall, other financial results decreased by $32.80 million, or 53.4%, to ~~nil~~$1.8 million for the ~~six~~nine-month period ended ~~June~~September 30, 2023, as compared to a $3.8 million ~~gain~~ for the same period in 2022.

Income Tax (Expense)/Benefit

Income tax expense increased by $0.47 million, ~~or 113.7%,~~ to $0.7 million for the ~~six~~nine-month period ended ~~June~~September 30, 2023, as compared to less than $0.31 million income tax benefit for the same period in 2022. Income tax expense from the ~~Barge~~Cabotage Business increased by $0.16 million to $0.1.0 million for the ~~six~~nine-month period ended ~~June~~September 30, 2023, as compared to ~~less than~~ $0.13 million for the same period in 2022. Income tax ~~expense~~ benefit from the ~~Cabotage~~Barge Business ~~increased~~decreased by less than $0.21 million to $0.53 million for the ~~six~~nine-month period ended ~~June~~September 30, 2023, as compared to $0.34 million for the same period in 2022.

Profit/(Loss) for the Period

In the aggregate, profit for the period increased by less than $0.1 million, or 0.6%, to $6.0 million for the six-month period ended June 30, 2023, as compared to $6.0 million for the same period in 2022.

Loss for the period in the Barge Business decreased by $6.6 million, or 35.7%, to $11.9 million for the six-month period ended June 30, 2023, as compared to $18.5 million for the same period in 2022. The decrease in loss was mainly attributable to: (i) an increase in operating profit; and (ii) increase in finance income. The decrease in loss for the period was partially offset by (i) a decrease in other financial results; (ii) an increase in finance costs; and (iii) an increase in income tax expense.

Profit for the period in the Port Terminal Business decreased by $4.2 million, or 14.8%, to $24.3 million for the six-month period ended June 30, 2023, as compared to $28.5 million for the same period in 2022. The decrease was mainly attributable to: (i) a decrease in operating profit; and (ii) an increase in finance costs, partially mitigated by an increase in finance income.

Loss for the period in the Cabotage Business increased by $2.4 million, or 58.8%, to $6.4 million for the six-month period ended June 30, 2023, as compared to a $4.0 million for the same period in 2022. The decrease was mainly attributable to an increase in operating loss, partially offset by (i) a decrease in finance cost; and (ii) an increase in finance income.

EBITDA Reconciliation to Profit/(Loss)

~~of results as reported under IFRS. Some of these limitations are:~~ Profit/(iLoss) ~~EBITDA~~ ~~and Adjusted EBITDA do not reflect changes in, or cash requirements~~ for, ~~working capital needs; (ii) EBITDA and Adjusted EBITDA do not reflect~~ the ~~amounts~~Period 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 and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, among others, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of our performance.

~~For~~In the ~~three~~aggregate, profit for the period increased by $3.0 million, or 39.5%, to $10.6 million for the nine-month ~~Period~~period ~~Ended June~~ended September 30, 2023, as compared to $7.6 million for the same period in 2022.

(Expressed in thousands of U.S. dollars)	Port TerminalBusiness(unaudited)			CabotageBusiness(unaudited)			BargeBusiness(unaudited)			Total(unaudited)
Profit/(loss) for the period	$	12,397		$	(4,416	)	$	(3,542	)	$	4,439
Finance income		(186	)		(66	)		(204	)		(456	)
Finance costs		6,650			2,252			7,041			15,943
Depreciation and amortization		2,276			1,647			6,125			10,048
Income tax expense		—			801			106			907
EBITDA	$	21,137		$	218		$	9,526		$	30,881
Impairment loss		—			1,651			—			1,651
Adjusted EBITDA	$	21,137		$	1,869		$	9,526		$	32,532

Loss for the period in the Barge Business decreased by $16.7 million, or 52.5%, to $15.1 million for the nine-month period ended September 30, 2023, as compared to $31.8 million for the same period in 2022. The decrease in loss was mainly attributable to: (i) an increase in operating profit; and (ii) an increase in finance income. The decrease in loss for the period was partially offset by (i) a decrease in other financial results; (ii) an increase in finance costs; and (iii) an increase in income tax expense.

~~For~~Loss for the ~~three~~period in the Cabotage Business increased by $0.9 million, or 14.0%, to $7.2 million for the nine-month ~~Period~~period ~~Ended~~ended ~~June~~September 30, 2023, as compared to a $6.3 million for the same period in 2022. The increase in loss for the period was mainly attributable to: (i) an increase in operating loss; and (ii) an increase in income tax expense, which overall loss was partially mitigated by (i) an increase in other financial results; (ii) a decrease in finance cost; and (iii) an increase in finance income.

(Expressed in thousands of U.S. dollars)	Port TerminalBusiness(unaudited)			CabotageBusiness(unaudited)			BargeBusiness(unaudited)			Total(unaudited)
Profit/(loss) for the period	$	15,809		$	(2,052	)	$	(7,385	)	$	6,372
Finance income		(16	)		(6	)		(18	)		(40	)
Finance costs		6,379			2,504			6,830			15,713
Depreciation and amortization		2,235			1,289			5,769			9,293
Income tax expense		—			242			130			372
EBITDA	$	24,407		$	1,977		$	5,326		$	31,710

Profit for the period in the Port Terminal Business decreased by $12.8 million, or 28.0%, to $32.9 million for the nine-month period ended September 30, 2023, as compared to $45.8 million for the same period in 2022. The decrease was mainly attributable to: (i) a decrease in operating profit; and (ii) an increase in finance costs; the overall decrease was partially mitigated by an increase in finance income.

~~For~~EBITDA ~~the~~Reconciliation ~~six-month~~to ~~period~~Profit/(Loss) ~~ended June 30, 2023~~

(Expressed in thousands of U.S. dollars)	Port TerminalBusiness(unaudited)			CabotageBusiness(unaudited)			BargeBusiness(unaudited)			Total(unaudited)
Profit/(loss) for the period	$	24,270		$	(6,355	)	$	(11,884	)	$	6,031
Finance income		(328	)		(124	)		(362	)		(814	)
Finance costs		13,160			4,790			14,035			31,985
Depreciation and amortization		4,856			3,331			11,435			19,622
Income tax expense		—			534			135			669
EBITDA	$	41,958		$	2,176		$	13,359		$	57,493
Impairment loss		—			1,651			—			1,651
Adjusted EBITDA	$	41,958		$	3,827		$	13,359		$	59,144

EBITDA represents profit/(loss) before finance income, finance costs, depreciation and amortization, and income taxes. EBITDA is presented because it is used by certain investors to measure a company’s operating performance. Adjusted EBITDA represents EBITDA before impairment losses and loss on debt extinguishment. EBITDA and Adjusted EBITDA are “non-IFRS financial measures” and should not be considered 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 and Adjusted EBITDA are frequently used as a measure of operating performance, the definitions of EBITDA and Adjusted EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation. EBITDA and Adjusted EBITDA have limitations as analytical tools, and therefore, neither should be considered in isolation or as a substitute for the analysis of results as reported under IFRS. Some of these limitations are: (i) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; (ii) EBITDA and Adjusted EBITDA do 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 and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, among others, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of our performance.

For the ~~six~~three-month ~~period~~Period ~~ended~~Ended ~~June~~September 30, ~~2022~~2023

(Expressed in thousands of U.S. dollars)	Port TerminalBusiness(unaudited)			~~CabotageBusiness~~Cabotage Business(unaudited)			~~BargeBusiness~~Barge Business(unaudited)			Total(unaudited)
Profit/(loss) for the period	$	288,~~490~~667		$	(~~4,003~~840	)	$	(183,~~495~~254	)	$	54,~~992~~573
Finance income		(22135	)		(946	)		(25144	)		(56325	)
Finance costs		126,~~308~~334			52,~~013~~272			136,~~932~~945			3115,~~253~~551
Depreciation and amortization		42,~~398~~274			21,~~545~~665			115,~~475~~800			189,~~418~~739
Income tax expense		—			312			1			313
Income tax expense/(benefit)		—			427			(445	)		(18	)
EBITDA	$	4517,~~174~~140		$	3,~~858~~478		$	68,~~888~~902		$	5529,~~920~~520

For the three-month Period Ended September 30, 2022


(Expressed in thousands of U.S. dollars)	Port Terminal Business (unaudited)			Cabotage Business (unaudited)			Barge Business (unaudited)			Total (unaudited)
Profit/(loss) for the period	$	17,272		$	(2,310	)	$	(13,354	)	$	1,608
Finance income		(42	)		(17	)		(48	)		(107	)
Finance costs		6,350			2,377			6,798			15,525
Depreciation and amortization		2,240			1,454			5,766			9,460
Income tax expense/(benefit)		—			12			(394	)		(382	)

EBITDA	$	25,820		$	1,516		$	(1,232	)	$	26,104
Impairment loss		—			778			2,417			3,195

Adjusted EBITDA	$	25,820		$	2,294		$	1,185		$	29,299

For the nine-month period ended September 30, 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	$	32,937		$	(7,195	)	$	(15,138	)	$	10,604
Finance income		(463	)		(170	)		(506	)		(1,139	)
Finance costs		19,494			7,062			20,980			47,536
Depreciation and amortization		7,130			4,996			17,235			29,361
Income tax expense/(benefit)		—			961			(310	)		651

EBITDA	$	59,098		$	5,654		$	22,261		$	87,013
Impairment loss		—			1,651			—			1,651

Adjusted EBITDA	$	59,098		$	7,305		$	22,261		$	88,664

For the nine-month period ended September 30, 2022


(Expressed in thousands of U.S. dollars)	Port Terminal Business (unaudited)			Cabotage Business (unaudited)			Barge Business (unaudited)			Total (unaudited)
Profit/(loss) for the period	$	45,762		$	(6,313	)	$	(31,849	)	$	7,600
Finance income		(64	)		(26	)		(73	)		(163	)
Finance costs		18,658			7,390			20,730			46,778
Depreciation and amortization		6,638			3,999			17,241			27,878
Income tax expense/(benefit)		—			324			(393	)		(69	)

EBITDA	$	70,994		$	5,374		$	5,656		$	82,024
Impairment loss		—			778			2,417			3,195

Adjusted EBITDA	$	70,994		$	6,152		$	8,073		$	85,219

Liquidity and Capital Resources

We have historically financed our capital requirements with cash flows from operations, equity contributions from stockholders, borrowings under our credit facilities and issuances of debt securities. Our main uses of funds have been capital expenditures for the acquisition of new vessels, new construction and upgrades at the Port Terminals, expenditures incurred in connection with ensuring that our owned vessels comply with international and regulatory standards, repayments of debt and payments of dividends. We may also use funds to repurchase our outstanding indebtedness from time to time. Repurchases may be made in the open market, or through privately negotiated transactions or otherwise, in compliance with applicable laws, rules and regulations, at prices and on terms we deem appropriate, and subject to our cash requirements for other purposes, compliance with the covenants under our debt agreements, and other factors management deems relevant. In addition, we regularly review options for refinancing our existing indebtedness and opportunities for acquisitions of businesses and additional vessels, development of new facilities and infrastructure, joint ventures and other corporate transactions that may be material to us. In connection with any such transactions, we may need to raise significant amounts of capital, including debt. We do not have any material contractual arrangements for such transactions at this time. See “— Working Capital Position”,” “— Capital Expenditures” and “—Interest-bearing Loans and Borrowings” included elsewhere in this report for further discussion of our working capital position.

The following table presents cash flow information derived from the unaudited condensed consolidated statements of cash flows of Navios Logistics for the six-month periods ended June 30, 2023 and 2022.

(Expressed in thousands of U.S. dollars)	Six-month PeriodEnded June 30,2023(unaudited)			Six-month PeriodEnded June 30,2022(unaudited)
Net cash provided by operating activities	$	38,695		$	9,171
Net cash used in investing activities		(17,940	)		(4,270	)
Net cash (used in)/provided by financing activities		(24,925	)		161
(Decrease)/increase in cash and cash equivalents		(4,170	)		5,062
Cash and cash equivalents, beginning of the period		49,864			32,580
Cash and cash equivalents, end of period	$	45,694		$	37,642

Cash provided by operating activities for the six-month period ended June 30, 2023 as compared to the six-month period ended June 30, 2022:

Net cash provided by operating activities increased by $29.5 million to $38.7 million for the six-month period ended June 30, 2023, as compared to $9.2 million for the same period during 2022.

In determining net cash from operating activities, profit is adjusted for the effect of certain non-cash items including depreciation and amortization, which are analyzed in detail in our Unaudited Condensed Consolidated Statement of Cash Flows for the Six-month Periods Ended June 30, 2023 and 2022, included elsewhere in this report.

Profit is adjusted for changes in working capital in order to determine net cash provided by operating activities.

The positive change in working capital of $7.8 million for the six-month period ended June 30, 2023 resulted from a $7.3 million decrease in trade receivables and contract assets, a $1.4 million increase in trade and other payables and contract liabilities, and a $0.2 million decrease in inventories. These positive changes were partially offset by a $1.2 million increase in prepayments and other assets.

The negative change in working capital of $19.3 million for the six-month period ended June 30, 2022 resulted from a $12.6 million increase in trade receivables and contract assets, a $4.7 million decrease in trade and other payables and contract liabilities, a $2.2 million increase in prepayments and other assets, and a $0.2 million decrease in inventories.

~~Cash~~The ~~used~~following intable ~~investing~~presents ~~activities~~cash ~~for~~flow ~~the~~information ~~six-month~~derived ~~period~~from ~~ended~~the unaudited condensed ~~June 30,~~consolidated ~~2023~~statements asof ~~compared~~cash toflows of Navios Logistics for the ~~six~~nine-month ~~period~~periods ended ~~June~~September 30, 2023 and 2022:.

Net cash used in investing activities increased by $13.7 million to $17.9 million for the six-month period ended June 30, 2023, from $4.3 million for the same period during 2022.


(*Expressed in thousands of U.S. dollars*)	Nine-month Period Ended September 30, 2023 (unaudited)			Nine-month Period Ended September 30, 2022 (unaudited)
Net cash provided by operating activities	$	45,424		$	30,273
Net cash used in investing activities		(29,676	)		(9,706	)
Net cash used in financing activities		(29,958	)		(366	)

(Decrease)/increase in cash and cash equivalents		(14,210	)		20,201
Cash and cash equivalents, beginning of the period		49,864			32,580

Cash and cash equivalents, end of period	$	35,654		$	52,781

Cash ~~used~~provided inby ~~investing~~operating activities for the ~~six~~nine-month period ended ~~June~~September 30, 2023 comprised mainly: (i) $12.8 million in payments for the purchase of tangible assets, including payments for drydock and special surveys; (ii) $3.3 million in payments for expansion works in the Iron Ore Port Terminal; (iii) $1.2 million in payments for the acquisition of Vimalcor (as ~~defined~~compared ~~elsewhere~~to ~~in this report. See Note 2, Note 6 and Note 9 included elsewhere in this report); (iv) $0.9 million in payments for~~ the ~~development of a new liquid terminal in Nueva Palmira; and (v) less~~nine-month ~~than~~period ~~$0.1 million~~ended ~~in payments for the development of our port operations in Port Murtinho~~September 30, ~~Brazil.~~2022: ~~This was partially mitigated by (i) a $0.3 million decrease in restricted cash; and (ii) receipt of $0.1 million in proceeds related to the disposal of vessels.~~

~~Cash~~Net ~~used~~cash inprovided ~~investing~~by operating activities ~~for~~increased ~~the~~by ~~six-month period ended June~~$15.2 30million, ~~2022~~or ~~was~~50.0%, ~~mainly the result of (i)~~ to $445.34 million ~~in payments~~ for the ~~purchase~~nine-month ofperiod ~~tangible~~ended ~~assets~~September 30, ~~including~~2023, ~~payments~~as ~~for~~compared ~~drydock~~to ~~and special surveys; and (ii)~~ $030.13 million ~~in payments~~ for the ~~development~~same ofperiod ~~our~~during ~~port operations in Port Murtinho region of Brazil~~2022.

~~Cash~~In ~~used~~determining innet ~~financing~~cash from operating activities, profit is adjusted for the ~~six-month~~effect ~~period ended~~of ~~June~~certain 30non-cash items including depreciation and amortization, ~~2023~~which asare ~~compared~~analyzed toin ~~cash~~detail ~~provided~~in byour ~~financing~~Unaudited ~~activities~~Condensed Consolidated Statement of Cash Flows for the ~~six~~Nine-month ~~period~~Periods ~~ended June~~Ended September 30, 2023 and 2022:, included elsewhere in this report.

~~Net~~Profit ~~cash~~is ~~used~~adjusted ~~in financing activities increased by $25.1 million to $24.9 million~~ for ~~the six-month~~changes ~~period~~in ~~ended~~working ~~June 30,~~capital ~~2023,~~in asorder ~~compared~~ to determine ~~$0.2 million~~net cash provided by ~~financing~~operating activities ~~for the same period during 2022~~.

The ~~increase~~positive change in ~~cash~~working ~~used~~capital inof ~~financing~~$12.6 million ~~activities~~ for the ~~six~~nine-month period ended ~~June~~September 30, 2023 ~~was~~ ~~primarily~~resulted ~~due~~from toa ~~payments of: (i)~~ $1114.5 million decrease in ~~connection~~trade ~~with~~receivables ~~the~~and ~~Company’s~~contract ~~outstanding~~assets, ~~indebtedness;~~a ~~(ii)~~ $104.04 million increase in ~~relation~~trade toand ~~the~~other ~~promissory~~payables ~~note~~and tocontract ~~Grimaud~~liabilities. ~~(the~~These ~~“Promissory~~positive ~~Note”);~~changes were partially ~~(iii)~~ offset by a $2.5.4 million ~~for~~increase ~~the~~in ~~repayment~~prepayments ofand ~~the~~other ~~Notes~~assets, ~~Payable (as defined herein);~~ and ~~(iv)~~ a $01.90 million ~~for~~increase ~~the~~in ~~principal portion of our lease liabilities~~inventories.

~~Cash~~The ~~provided~~positive change byin ~~financing~~working ~~activities~~capital of $0.7 million for the ~~six~~nine-month period ended ~~June~~September 30, 2022 ~~was~~resulted ~~due~~from to a $293.01 million decrease in ~~proceeds~~trade ~~from~~receivables ~~long-term~~and ~~debt,~~contract ~~partially~~assets ~~offset~~and bya ~~(i)~~ $260.21 million indecrease ~~payments made~~ in ~~connection~~inventories, ~~with~~partially mitigated ~~the~~by ~~Company’s~~a ~~outstanding indebtedness; (ii)~~ $21.46 million decrease in ~~payments~~trade ~~for~~and ~~the~~other ~~repayment~~payables ofand ~~the~~contract ~~Notes Payable~~liabilities, ~~(as defined below);~~ and ~~(iii)~~a $0.39 million increase in ~~payments~~prepayments ~~for~~and ~~the~~other ~~principal portion of our lease liabilities~~assets.

Cash used in investing activities for the nine-month period ended September 30, 2023 as compared to the nine-month period ended September 30, 2022:

Net cash used in investing activities increased by $20.0 million to $29.7 million for the nine-month period ended September 30, 2023, from $9.7 million for the same period during 2022.

Cash used in investing activities for the nine-month period ended September 30, 2023 comprised mainly: (i) $19.7 million in payments for the purchase of tangible assets, including payments for drydock and special surveys; (ii) $6.0 million in payments for expansion works in the Iron Ore Port Terminal; (iii) a $3.4 million increase in restricted cash; (iv) $2.8 million in payments for the development of a new liquid terminal in Nueva Palmira; (v) $1.5 million in payments relating to the deposit for the construction of twelve barges pursuant to the Twelve Finance Lease Barges contract; (vi) $1.2 million in payments for the acquisition of Vimalcor (as defined elsewhere in this report); and (vii) less than $0.1 million in payments for the development of our port operations in Port Murtinho, Brazil. These increases and payments were partially mitigated by receipt of: (i) $4.5 million in proceeds related to the sale of one tanker vessel and (ii) $0.5 million in proceeds related to the disposal of certain barges. For further information, see Note 2, Note 4, Note 6 and Note 9 included elsewhere in this report.

Cash used in investing activities for the nine-month period ended September 30, 2022 was mainly the result of (i) $9.3 million in payments for the purchase of tangible assets, including payments for drydock and special surveys, (ii) $0.3 million in payments for the construction of a new stockpile in our Iron Ore Port Terminal and (iii) $0.1 million in payments for the development of our port operations in Port Murtinho, Brazil.

Cash used in financing activities for the nine-month period ended September 30, 2023 as compared the nine-month period ended September 30, 2022:

Net cash used in financing activities increased by $29.6 million to $30.0 million for the nine-month period ended September 30, 2023, as compared to $0.4 million cash provided by financing activities for the same period during 2022.

The increase in cash used in financing activities for the nine-month period ended September 30, 2023 was primarily due to payments of: (i) $14.8 million in connection with the Company’s outstanding indebtedness; (ii) $10.0 million in relation to the promissory note to Grimaud (the “Promissory Note”); (iii) $3.4 million for the repayment of the Notes Payable (as defined herein); and (iv) $1.6 million for the principal portion of our lease liabilities.

Cash used in financing activities for the nine-month period ended September 30, 2022 was due to receipt of $37.0 million in proceeds from long term debt, partially mitigated by payments of (i) $28.7 million in connection with the Company’s outstanding indebtedness, (ii) $5.0 million in relation to the Promissory Note (as defined herein), (iii) $3.3 million for the repayment of the Notes Payable (as defined herein) and (iv) $0.4 million for the principal portion of our lease liabilities.

Interest-Bearing Loans and Borrowings

Navios Logistics’ interest-bearing loans and borrowings are presented under the captions “Interest-bearing loans and borrowings” under current and non-current liabilities in the unaudited condensed consolidated statement of financial position, included elsewhere in this report. As of ~~June~~ September 30, 2023 and December 31, 2022, total interest-bearing loans and borrowings amounted to $~~535~~532.43 million and $547.3 million, respectively. The current portion of interest-bearing loans and borrowings amounted to $23.40 million at ~~June~~September 30, 2023 and $23.6 million at December 31, 2022. Please refer to our 2022 Form 20-F for a full description of interest-bearing loans and borrowings.

Working Capital Position

On ~~June~~September 30, 2023, Navios Logistics’ current assets totaled $~~108~~96.5 million, while current liabilities totaled $9889.40 million, resulting in a positive working capital position of $107.15 million. Management anticipates that the Company’s primary sources of funds will be available cash, cash from operations and borrowings under existing and new loan agreements. Management believes that these sources of funds will be sufficient for the Company to meet its liquidity needs and comply with its banking covenants for at least twelve months from the end of the reporting period and therefore it is appropriate to prepare the financial statements on a going-concern basis.

Capital Expenditures

Please refer to Note 5 to our unaudited condensed consolidated financial statements included elsewhere in this report for a full description of our capital expenditures.

Dividend Policy

The payment of dividends is at the discretion of Navios Logistics’ board of directors. Any determination as to dividend policy will be made by Navios Logistics’ board of directors and will depend on a number of factors, including the requirements of Marshall Islands law, Navios Logistics’ future earnings, capital requirements, financial condition and future prospects, and such other factors as Navios Logistics’ board of directors may deem relevant. Marshall Islands law generally prohibits the payment of dividends other than from surplus, when a company is insolvent, or if the payment of the dividend would render the company insolvent. Navios Logistics’ ability to pay dividends is also restricted by the terms of the indenture governing its 2025 Notes.

Because Navios Logistics is a holding company with no material assets other than the stock of its subsidiaries, its ability to pay dividends is dependent upon the earnings and cash flow of its subsidiaries and their ability to pay dividends to Navios Logistics. If there is a substantial decline in any of the markets in which Navios Logistics participates, its earnings will be negatively affected, thereby limiting its ability to pay dividends.

No dividends were declared during the three- and-~~six~~nine-month periods ended ~~June~~September 30, 2023 and 2022. In the ~~six~~nine-month period ended ~~June~~September 30, 2023, the Company paid $10.0 million, representing the remaining balance due under the Promissory Note (~~nil~~$5.0 million ~~for~~was paid in the ~~six~~nine-month period ended ~~June~~September 30, 2022).

Concentration of Credit Risk

Accounts Receivable and Contract Assets

In each of our businesses, we derive a significant part of our revenues from a small number of customers. We expect that a small number of customers will continue to generate a substantial portion of our revenues for the foreseeable future. For the ~~six~~nine-month period ended ~~June~~September 30, 2023, our largest customers, Vale International S.A. (“Vale”) and YPF S.A. (“YPF”), accounted for 2019.05% and 11.91%, respectively, of our total revenues, and five customers accounted for approximately 5049.81% of our revenues, with no single customer (other than Vale and YPF) accounting for more than 10% of our total revenues. For the ~~six~~nine-month period ended ~~June~~September 30, 2022, our largest customers, Vale and YPF, accounted for 2120.10% and 1112.45%, respectively, of our total revenues, and five customers accounted for approximately 53.84% of our revenues, with no single customer (other than Vale and YPF) accounting for more than 10% of our total revenues. In addition, some of our customers, including many of our most significant customers, operate their own vessels and/or barges as well as their own port terminals. These customers may decide to cease or reduce the use of our services for various reasons, including employment of their own vessels or port terminals as applicable. The loss of any of our significant customers, including our large take-or-pay customers, or the change of the contractual terms of any one of our most significant take-or-pay contracts, or any significant dispute with one of these customers, could materially adversely affect our financial condition and our results of operations.

If one or more of our customers does not perform under one or more contracts with us and we are not able to find a replacement contract, or if a customer exercises certain rights to terminate the contract, we could suffer a loss of revenues that could materially and adversely affect our business, financial condition and results of operations. See “Item 3. Key Information—D. Risk Factors—We derive a significant part of our revenues from a small number of customers, and the loss of one or more of these customers could materially and adversely affect our revenues.” in the 2022 Form 20-F.

We could lose a customer or the benefits of a contract if, among other things:

•

the customer fails to make payments because of its financial inability, the curtailment or cessation of its operations, any disagreements with us, or otherwise;

• the customer terminates the contract because we fail to meet ~~its~~the customer’s contracted storage needs and/or the contracted operational performance;

•

the customer terminates the contract because we fail to deliver the vessel within a fixed period of time, the vessel is lost or damaged beyond repair, there are serious deficiencies in the vessel or prolonged off-hire, or a default under the contract; or

•

the customer terminates the contract because the vessel has been subject to seizure for more than a specified number of days.

In July 2022, Vale S.A. announced the closing of the sale of its iron ore, manganese ore and logistics assets in the midwestern system to J&F Mineracao Ltda., an entity controlled by J&F Investimentos S.A. The Vale port contract entered into between Corporacion Navios S.A., a company controlled by Navios Logistics, and Vale, dated September 27, 2013, remains in full force and effect.

Cash Deposits with Financial Institutions

We are exposed to potential loss related to cash deposits in excess of amounts covered by government-provided insurance in the event of non-performance by financial institutions. Although we maintain cash deposits in excess of government-provided insurance limits, we minimize our exposure to credit risk by dealing with a diversified group of major financial institutions.

Legal Proceedings and Commitments and Contingencies

We are subject to legal proceedings, claims and contingencies arising in the ordinary course of business. When such amounts can be estimated and the contingency is probable, management accrues the corresponding liability. While the ultimate outcome of lawsuits or other proceedings against us cannot be predicted with certainty, management does not believe the costs, individually or in aggregate, of all such proceedings, claims and contingencies will have a material adverse effect on our unaudited condensed consolidated financial position, results of operations or cash flows.

The Company issued a guarantee and indemnity letter that guarantees the performance obligations of a consolidated subsidiary to Vitol up to $12.0 million. This guarantee expires on March 28, 2024.

On July 22, 2016, the Company guaranteed the compliance of certain obligations related to two consolidated subsidiaries under their respective direct user agreements with the Free Zone of Nueva Palmira, in the amounts of $0.8 million and $0.5 million, respectively.

In September 2020, the Company agreed to a settlement regarding a storage and transshipment contract in the Grain Port Terminal for a total amount to be paid to the Company as a result of the settlement of $4.1 million, to be collected in three equal installments of $1.4 million within each of June 2021, 2022 and 2023. In June 2021, 2022 and 2023, the Company collected the first, second and third installments.

In September 2023, the Company entered into a five-year finance leasing contract for the construction of the Twelve Finance Lease Barges. The Company assessed the lease classification criteria and concluded that the agreement is a finance lease. The obligation under the finance lease contract is payable in 60 consecutive monthly payments of $11 thousand for each barge, commencing on the delivery date of the applicable barge. Upon the expiration of the contract, the Company will have the ability to exercise the purchase option for any of the twelve barges at a cost of $0.4 million per barge. Upon delivery of each barge under the leasing contract, the Company will recognize a finance lease liability based on the net present value of the remaining charter-in payments including the purchase option to acquire the barge at the end of the lease period. As of September 30, 2023, the Company paid an amount of $1.5 million relating to the deposit for the construction of the twelve barges constructed pursuant to the Twelve Finance Lease Barges contract, which is included under the caption “Assets under construction” in the unaudited condensed consolidated statement of financial position. For further information please see Note 5 “Tangible fixed assets and assets under construction” included elsewhere in this report.

Related Party Transactions

Please read Note 10 to our unaudited condensed consolidated financial statements included elsewhere in this report for a full description of related party transactions.

Quantitative and Qualitative Disclosures about Market Risks

We are exposed to certain risks related to interest rate, foreign currency, fuel price inflation and fluctuations in time-charter hire rates. Risk management is carried out under policies approved by executive management.

Interest Rate Risk

Debt Instruments— As of ~~June~~September 30, 2023 and December 31, 2022, the Company’s long-term indebtedness totaled $~~545~~541.41 million and $559.4 million, respectively. The debt is dollar-denominated and bears interest at a fixed rate, except for the Notes Payable and the 2022 Term Bank loan that bear interest at a floating rate.

Interest rates on the 2025 Notes (as defined elsewhere in this report), the 2022 BBVA Facility (as defined elsewhere in this report), the Santander Facility (as defined elsewhere in this report), the seller’s credit for the construction of six liquid barges and the seller’s credit agreement for the acquisition of the 2020 Fleet are fixed and, therefore, changes in interest rates affect the fair value of each, which, as of ~~June~~September 30, 2023 was $~~489~~492.35 million, $1816.6 million, $3.52 million, $76.47 million and $5.0 million, respectively, but do not affect the related finance costs. Interest ~~rates~~ rates on the Notes Payable and the 2022 Term Bank loan is at a floating rate and, therefore, changes in interest rates affect the interest rate and related finance costs for each. As of ~~June~~September 30, 2023, the amount outstanding under the Company’s floating rate loan facilities was $109.85 million. A change of 100 basis points in the ~~SOFR~~Secured orOvernight ~~LIBOR~~Financing ~~rate~~Rate (“SOFR”) would have increased finance costs for the ~~six~~nine-month period ended ~~June~~September 30, 2023 by $0.1 million.

For a detailed discussion of Navios Logistics’ debt instruments refer to Note 8 to our unaudited condensed consolidated financial statements included elsewhere in this report.

Foreign Currency Transactions

We are exposed to foreign currency exchange transaction risk related to funding our operations. For the ~~six~~ nine-month period ended ~~June~~ September 30, 2023 and 2022, approximately 53.50%, and 6061.25%, respectively, of our expenses were incurred in currencies other than U.S. dollars. Further, for the ~~six~~nine-month period ended ~~June~~September 30, 2023, approximately 27%, 13% and 13% of the Company’s $85135.54 million of combined costs for: (a) time charter, voyage and port terminal expenses; (b) direct vessels expenses; (c) cost of products; and (d) administrative expenses, net of depreciation (together, the “Combined Cost”), were denominated in Argentinean pesos, Paraguayan guaranies and Uruguayan pesos, respectively. Comparatively, the same foreign currencies accounted for approximately 2728%, 22% and 11%, respectively, of our $74118.24 million of Combined Cost for the ~~six~~nine-month period ended ~~June~~September 30, 2022. For the ~~six~~nine-month periods ended ~~June~~September 30, 2023 and 2022, Brazilian reais accounted for less than 1% of our Combined Cost.

~~For~~17 the six-month period ended June 30, 2023, a 1.00% change in the exchange rates between the U.S. dollar and Argentinean pesos, Paraguayan guaranies and Uruguayan pesos would change our profit for the year by $0.2 million, $0.1 million and less than $0.1 million, respectively. Comparatively, a 1.00% change in the same exchange rates would change our profit for the period ended June 30, 2022 by $0.2 million, $0.2 million and less than $0.1 million, respectively.

For the nine-month period ended September 30, 2023, a 1.00% change in the exchange rates between the U.S. dollar and Argentinean pesos, Paraguayan guaranies and Uruguayan pesos would change our profit for the year by $0.4 million, $0.2 million and less than $0.2 million, respectively. Comparatively, a 1.00% change in the same exchange rates would change our profit for the period ended September 30, 2022 by $0.3 million, $0.3 million and $0.1 million, respectively.

Inflation and Fuel Price Increases

See “Factors Affecting Navios Logistics’ Results of Operations” included elsewhere in this report.

Critical Accounting Policies

Navios Logistics’ unaudited condensed consolidated financial statements have been prepared in accordance with IFRS. The preparation of these financial statements requires Navios Logistics to make estimates in the application of its accounting policies based on the best assumptions, judgments and opinions of management.

The Company’s most critical accounting policies and estimates are those that involve subjective decisions or assessments and are included in the Company’s 2022 Form 20-F.

During the ~~six~~nine-month period ended ~~June~~September 30, 2023, the Company changed its accounting policy on foreign exchange differences recognized in the unaudited condensed consolidated statements of profit. Following this change the foreign exchange gains and losses are presented in the same line item as the underlying transaction. Total impact for the ~~six~~ nine-month periods ended ~~June~~ September 30, 2023 and 2022 was $1.84 million and $0.25 million, respectively. The impact of the amounts reclassified to each underlying item was not material for all prior periods presented.

Asset Acquisitions: When the Company enters into an acquisition transaction, it determines whether the acquisition transaction is a purchase of an asset or a business based on the facts and circumstances of the transaction. In accordance with IFRS 3, Business Combinations, the Company first evaluates whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If that threshold is met, the set of assets and activities is not a business. If the threshold is not met, the Company evaluates whether the set meets the definition of a business. To be considered a business, a set must include an input and a substantive process that together significantly ~~contributes~~contribute to the ability to create an output. All assets acquired and liabilities assumed in a business combination are measured at their ~~acquisition date~~ fair values on the acquisition date. For asset acquisitions, the net assets acquired should be measured following a cost accumulation and allocation model under which the cost of the acquisition is allocated on a a relative fair value basis to the qualifying assets acquired. In May 2023, the Company completed the acquisition of the stock of Vimalcor S.A. (“Vimalcor”) for a purchase price of $1.6 million. ~~The~~This was classified as an asset acquisition; the main asset acquired is the right of use of a plot of land in the port of Montevideo. For further information see Note 6 and Note 9, included elsewhere in this Report.

Recent Accounting Pronouncements

The Company’s recent accounting pronouncements are included in the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report.

17Change in Registrant’s Certifying Accountant

On November 27, 2023, the Audit Committee of the Board of Directors of the Company dismissed Price Waterhouse & Co. S.R.L. (“PwC Argentina”) as its independent registered public accounting firm.

The reports of PwC Argentina on the Company’s consolidated financial statements for the fiscal years ended December 31, 2022 and 2021 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principle.

During the fiscal years ended December 31, 2022 and 2021, and the subsequent interim period from January 1, 2023 through November 27, 2023, (i) the Company did not have disagreements with PwC Argentina on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PwC Argentina, would have caused PwC Argentina to make reference to the subject matter of the disagreements in connection with its reports on the consolidated financial statements for such years, and (ii) there were no “reportable events” as defined in Item 16F(a)(1)(v) of Form 20-F.

The Company provided PwC Argentina with a copy of this Form 6-K prior to its filing with the SEC and requested that PwC Argentina furnish it with a letter addressed to the SEC stating whether it agrees with the above statements. A copy of PwC Argentina’s letter, dated December 14, 2023 is attached as Exhibit 16.1 to this Form 6-K.

On November 27, 2023, the Audit Committee of the Board of Directors of the Company engaged PricewaterhouseCoopers S.A. (“PwC Greece”) as the Company’s new independent registered public accounting firm. During the fiscal years ended December 31, 2022 and 2021, and the subsequent interim period through November 27, 2023, neither the Company nor anyone on its behalf has consulted with PwC Greece on the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company’s financial statements, or any matter that was the subject of a disagreement, as that term is defined in Item 16F(a)(1)(iv) of Form 20-F and the related instructions to Item 16F of Form 20-F, or a reportable event, as that term is defined in Item 16F(a)(1)(v) of Form 20-F.

EXHIBIT INDEX


Exhibit No.		Exhibit

16.1		Letter from Price Waterhouse & Co. S.R.L., dated December 14, 2023.*

*	Filed herewith

INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

	Page
NAVIOS SOUTH AMERICAN LOGISTICS INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF JUNE 30, 2023 AND DECEMBER 31, 2022		F-2
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF SEPTEMBER 30, 2023 AND DECEMBER 31, 2022		F-2
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2023 AND 2022		F-3
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT FOR THE THREE- AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022		F-3
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2023 AND 2022		F-4
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022		F-4
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2023 AND 2022		F-5
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2023 AND 2022		F-5
CONDENSED NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS		F-6

F-1

NAVIOS SOUTH AMERICAN LOGISTICS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Expressed in thousands of U.S. dollars)

	Notes	~~June~~September 30, 2023(unaudited)			December 31, 2022
ASSETS
Non-current assets
Tangible assets	5	$	~~505~~503,~~349~~974		$	511,286
Assets under construction	5		512,~~742~~097			3,311
Intangible assets	6		~~150~~149,~~199~~447			150,289
Right-of-use assets	9		2019,~~008~~254			10,848
Deferred tax assets			1,~~479~~082			1,010
Other assets			1,~~152~~205			1,189
Total non-current assets		$	~~683~~687,~~929~~059		$	677,933
Current Assets
Inventories			1011,~~251~~460			10,468
Trade receivables	4		3830,~~012~~368			45,962
Contract assets	4		~~725~~1,130			532
Prepayments and other assets			913,~~287~~505			8,126
Deferred tax assets			~~666~~658			390
Asset classified as held for sale	5		3,907			—
Cash and cash equivalents			35,654			49,864
Cash and cash equivalents			45,694			49,864
Restricted cash			3,732			300
Restricted cash			—			300
Total current assets		$	96,507		$	115,642
Total current assets		$	108,542		$	115,642
Total Assets		$	783,566		$	793,575
Total Assets		$	792,471		$	793,575
EQUITY and LIABILITIES
Equity
Issued capital	7		20			20
Share premium			233,441			233,441
Accumulated deficit			(7975,~~764~~191	)		(85,795	)
Total equity		$	~~153~~158,~~697~~270		$	147,666
Liabilities
Non-current liabilities
Interest-bearing loans and borrowings	8		~~512~~509,~~030~~336			523,751
Contract liabilities	4		—			1,313
Lease liabilities	9		1716,~~432~~848			10,084
Provisions			~~657~~615			733
Deferred tax liabilities			9,~~817~~051			9,962
Income tax payable			2—			9
Other non-current liabilities			~~436~~413			392
Total non-current liabilities		$	~~540~~536,~~374~~263		$	546,244
Current liabilities
Trade and other payables			6860,~~402~~275			61,344
Contract liabilities	4		32,~~057~~385			3,100
Interest-bearing loans and borrowings	8		2322,~~371~~921			23,544
Promissory note (related party)	10		—			10,000
Lease liabilities	9		3,~~570~~452			1,677
Total current liabilities		$	9889,~~400~~033		$	99,665
Total liabilities		$	~~638~~625,~~774~~296		$	645,909
Total equity and liabilities		$	~~792~~783,~~471~~566		$	793,575

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-2

NAVIOS SOUTH AMERICAN LOGISTICS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF ~~INCOME~~PROFIT

(Expressed in thousands of U.S. dollars)

	Note	~~Six~~Nine monthperiod ~~endedJune~~endedSeptember 30,2023(unaudited)			~~Six~~Nine monthperiod ~~endedJune~~endedSeptember 30,2022(unaudited)			Three monthperiod ~~endedJune~~endedSeptember 30,2023(unaudited)			Three monthperiod ~~endedJune~~endedSeptember 30,2022(unaudited)
Revenue	4	$	~~146~~225,~~633~~517		$	~~127~~201,~~752~~886		$	8178,~~553~~884		$	6874,~~905~~134
Cost of sales	4		(96151,~~342~~425	)		(84136,~~251~~717	)		(55,~~175~~083	)		(4552,~~182~~466	)
Gross profit		$	5074,~~291~~092		$	4365,~~501~~169		$	2623,~~378~~801		$	2321,~~723~~668
Administrative expenses	4		(1014,~~063~~458	)		(711,~~826~~946	)		(54,~~334~~395	)		(4,~~241~~120	)
Other operating income			~~447~~986			~~674~~1,123			~~226~~539			~~531~~521
Other operating expenses			(24,~~412~~328	)		(23,~~417~~758	)		(1,~~102~~916	)		(1,~~262~~413	)
Allowance for expected credit losses on financial assets	4		(392	)		(~~228~~240	)		—			(8312	)
Operating profit		$	3755,~~871~~900		$	3350,~~704~~348		$	2018,~~168~~029		$	1816,~~668~~644
Finance income			~~814~~1,139			56163			~~456~~325			40107
Finance costs			(3147,~~985~~536	)		(3146,~~253~~778	)		(15,~~943~~551	)		(15,~~713~~525	)
Other financial results	2(f)		—1,752			3,798			~~665~~1,752			~~3,749~~—
Profit before tax		$	611,~~700~~255		$	67,~~305~~531		$	54,~~346~~555		$	61,~~744~~226
Income tax expense			(669	)		(313	)		(907	)		(372	)
Income tax (expense)/benefit			(651	)		69			18			382
Profit for the period		$	610,~~031~~604		$	57,~~992~~600		$	4,~~439~~573		$	61,~~372~~608

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-3

NAVIOS SOUTH AMERICAN LOGISTICS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(Expressed in thousands of U.S. dollars)

	Issued capital		Share premium		Accumulated Deficit			Total Equity
Balance as at January 1, 2023	$	20	$	233,441	$	(85,795	)	$	147,666
Profit for the period		—		—		610,~~031~~604			610,~~031~~604
Balance as at June 30, 2023 (unaudited)	$	20	$	233,441	$	(79,764	)	$	153,697
Balance as at September 30, 2023 (unaudited)	$	20	$	233,441	$	(75,191	)	$	158,270
Balance as at January 1, 2022	$	20	$	233,441	$	(81,353	)	$	152,108
Profit for the period		—		—		7,600			7,600
Balance as at September 30, 2022 (unaudited)	$	20	$	233,441	$	(73,753	)	$	159,708

	Issued capital		Share premium		Accumulated Deficit			Total Equity
Balance as at January 1, 2022	$	20	$	233,441	$	(81,353	)	$	152,108
Profit for the period		—		—		5,992			5,992
Balance as at June 30, 2022 (unaudited)	$	20	$	233,441	$	(75,361	)	$	158,100

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-4

NAVIOS SOUTH AMERICAN LOGISTICS INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Expressed in thousands of U.S. dollars)

	Notes		~~Six~~Nine monthperiod ~~endedJune~~endedSeptember 30,2023(unaudited)			~~Six~~Nine monthperiod ~~endedJune~~endedSeptember 30,2022(unaudited)
Operating activities
Profit before tax			$	611,~~700~~255		$	67,~~305~~531
Adjustments to reconcile profit before tax to net cash flows:
Impairment loss		5		1,651			—3,195
Depreciation of tangible assets		5		1725,~~149~~382			1625,~~695~~275
Amortization of intangible assets		6		12,~~419~~171			12,~~386~~080
Amortization of right-of-use assets		9		1,~~054~~808			~~337~~523
Movements in provisions				~~316~~274			~~377~~373
Finance income				(~~814~~1,139	)		(56163	)
Finance costs				3147,~~985~~536			3146,~~253~~778
Working capital movements				712,~~818~~615			~~(18,952~~666	)
Decrease in other assets				37			1,694
(Increase)/decrease in other assets				(16	)		1,547
Increase/(decrease) in other non-current liabilities				4421			(~~232~~207	)
			$	67101,~~359~~558		$	3887,~~807~~598
Interest received				~~814~~1,139			56163
Interest paid				(2957,~~471~~264	)		(2957,~~678~~468	)
Income tax paid				(79	)		(1420	)
Net cash flows provided by operating activities			$	3845,~~695~~424		$	930,~~171~~273
Investing activities
Changes in restricted cash				~~300~~(3,432	)		—
Proceeds from Disposal				147			—
Proceeds from disposal				512			—
Proceeds from sale of vessel				4,489			—
Acquisition of Vimalcor		2		(1,224	)		—
Acquisition of tangible assets		5		(1219,~~825~~684	)		(49,~~218~~344	)
Acquisition of assets under construction		5		(410,~~338~~337	)		(52362	)
Net cash flows used in investing activities			$	(1729,~~940~~676	)	$	(49,~~270~~706	)
Financing activities
Proceeds from long-term debt		8		—			2937,000
Repayment of long-term debt		8		(1114,~~520~~834	)		(2628,~~193~~684	)
Repayment of notes payable		8		(23,~~483~~448	)		(23,~~393~~287	)
Payment of principal portion of lease liabilities		9		(~~922~~1,676	)		(~~253~~395	)
Dividends paid – Promissory note		10		(10,000	)		—(5,000	)
Net cash flows (used in)/provided by financing activities			$	(24,925	)	$	161
Net cash flows used in financing activities			$	(29,958	)	$	(366	)
Net (decrease)/increase in cash and cash equivalents				(414,~~170~~210	)		520,~~062~~201
Cash and cash equivalents at January 1				49,864			32,580
Cash and cash equivalents at June 30			$	45,694		$	37,642
Cash and cash equivalents at September 30			$	35,654		$	52,781
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Non-cash investing and financing activities:
Tangible assets unpaid		5	$	(2,~~123~~440	)	$	~~(1,224~~—	)
Transfers from assets under construction to tangible assets		5	$	1,907		$	—
Capitalized interest		5	$	356		$	—
Acquisition of Vimalcor		2	$	(200	)	$	—

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-5

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

NOTE 1: CORPORATE INFORMATION

Navios South American Logistics Inc. (“Navios Logistics” or the “Company”) was incorporated under the laws of the Republic of the Marshall Islands on December 17, 2007. Navios Logistics believes it is one of the largest infrastructure and logistics companies in the Hidrovia region of South America, focusing on the Hidrovia river system, the main navigable river system in the region, and on the cabotage trades along the southeastern coast of South America. Navios Logistics is focused on providing its customers integrated transportation, storage and related services through its port facilities, its large, versatile fleet of dry and liquid cargo barges, and its product tankers. Navios Logistics serves the needs of a number of growing South American industries, including mineral and grain commodity providers, as well as users of refined petroleum products. As of ~~June~~September 30, 2023, Navios Maritime Holdings Inc. (“Navios Holdings”) owned 63.8% of Navios Logistics’ stock.

NOTE 2: BASIS OF PREPARATION, ACCOUNTING POLICIES AND SIGNIFICANT FACTORS AFFECTING THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(a)

Basis of Preparation

The unaudited condensed consolidated financial statements of Navios Logistics have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (the “IASB”), and present the financial position, results of operations and cash flows of the Company on a going -concern basis.

These unaudited condensed consolidated financial statements do not include all information and disclosures required for the annual consolidated financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes as of December 31, 2022 and 2021 and for the years ended December 31, 2022, 2021 and 2020.

The unaudited condensed consolidated financial statements have been prepared on a historical cost basis, except where fair value accounting is ~~specifically~~ specifically required by IFRS, as explained in the accounting policies below. The unaudited condensed consolidated financial statements are presented in U.S. dollars, which is also the currency of the Company’s primary economic environment and the functional currency of the ~~major and~~ majority of the Company’s subsidiaries. All values are rounded to the nearest thousand (U.S.D. 000), except when otherwise indicated.

On ~~September~~December 714, 2023, the unaudited condensed consolidated financial statements as of and for the three- and ~~six~~nine-month period ended ~~June~~ September 30, 2023 were authorized for issue by the Board of Directors.

(b)

Going concern

In considering whether it is appropriate to prepare the financial statements on a going -concern basis, management has reviewed the Company’s future cash requirements, covenant compliance and earnings projections. As of ~~June~~September 30, 2023, the Company’s current assets totaled $~~108~~96,~~542~~507, while current liabilities totaled $9889,~~400~~033, resulting in a positive working capital position of $107,~~142~~474.

Management anticipates that the Company’s primary sources of funds will be available cash, cash from operations and borrowings under existing and new loan agreements. Management believes that these sources of funds will be sufficient for the Company to meet its liquidity needs and comply with its banking covenants for at least twelve months from the end of the reporting period and therefore it is appropriate to prepare the financial statements on a going -concern basis.

(c)

Basis of Consolidation

The unaudited condensed consolidated financial statements comprise the financial statements of Navios Logistics and its subsidiaries. Control is achieved when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

F-6

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

(d)

New standards, interpretations and amendments adopted by the Company

The accounting ~~policies~~standards and methods of computation used in the preparation of the unaudited condensed consolidated financial statements are consistent with those applied in the preparation of the consolidated financial statements for the year ended December 31, 2022, and have been consistently applied in all periods presented in this report except for the following IFRSs, which ~~have~~the ~~been~~Company adopted ~~by the Company~~ as of January 1, 2023. Amendments and interpretations that apply for the first time in 2023 do not have a significant impact on the unaudited condensed consolidated financial statements of the Company for the ~~six~~nine-month period ended ~~June~~September 30, 2023. These impacts are also disclosed below.

•

IFRS 17 Insurance Contracts

The IASB issued IFRS 17 in May 2017 as the replacement for IFRS 4 Insurance Contracts. It requires a current measurement model where estimates are remeasured in each reporting period. Contracts are measured using the building blocks of: (i) discounted probability-weighted cash flows; (ii) an explicit risk adjustment, and (iii) a contractual service margin (CSM) representing the unearned profit of the contract ~~which~~that is recognized as revenue over the coverage period. The standard allows a choice between recognizing changes in discount rates either in the statement of profit or loss, or directly in other comprehensive income. The amendments deferred the application date of IFRS 17 to January 1, 2023.

•

Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2

The IASB amended IAS 1 to require entities to disclose their material rather than their significant accounting policies. The amendments define what ~~is ‘~~material accounting policy information’ is and explain how to identify when accounting policy information is material. They further clarify that immaterial accounting policy information does not need to be disclosed. If it is disclosed, it should not obscure material accounting information. To support this amendment, the IASB also amended IFRS Practice Statement 2, Making Materiality Judgements, to provide guidance on how to apply the concept of materiality to accounting policy disclosures.

•

Definition of Accounting Estimates – Amendments to IAS 8

The amendment to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, clarifies how companies should distinguish changes in accounting policies from changes in accounting estimates. The distinction is important, because changes in accounting estimates are applied prospectively to future transactions and other future events, whereas changes in accounting policies are generally applied retrospectively to past transactions and other past events, asin ~~well~~addition asto the current period.

•

Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12

The amendments to IAS 12 Income Taxes require companies to recognize deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible, temporary differences. They will typically apply to transactions such as leases of lessees and decommissioning obligations, and will require the recognition of additional deferred ~~tax~~ tax assets and liabilities. The amendment should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, entities should recognize deferred tax assets (to the extent that it is ~~probable~~ probable that they can be utilized) and deferred tax liabilities at the beginning of the earliest comparative period for all deductible and taxable temporary differences associated with: (i) right-of-use assets and lease liabilities; and (ii) decommissioning, restoration and similar liabilities, ~~and~~with the corresponding amounts recognized as part of the cost of the related assets. The cumulative effect of recognizing these adjustments is recognized in retained earnings, or another component of equity, as appropriate. IAS 12 did not previously address how to account for the tax effects of on on-balance -sheet leases and similar transactions, and various approaches were considered acceptable. Some entities may have already accounted for such transactions consistent with the new requirements. These entities will not be affected by the amendments.

F-7

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

(e)

Impact of Standards issued but not yet effective and not early adopted by the Company

The Company has not ~~early~~ adopted any of the following standards, interpretations or amendments that have been issued but are not yet effective. In addition, the Company assessed all standards, interpretations and amendments issued but not yet effective, and concluded that they will not have ~~any~~a significant impact on the Company’s unaudited condensed consolidated financial statements.

•

Non-current liabilities with covenants – Amendments to IAS 1

Amendments made to IAS 1, Presentation of Financial Statements, in 2020 clarified that liabilities are classified as as either current or non-current, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the entity’s expectations or events after the reporting date (e.g. ~~the~~ the receipt of a waiver or a breach of covenant). The amendments also clarified what IAS 1 means when it refers to the ‘settlement’ of a liability. The amendments were due to be applied ~~from~~starting on January 1, 2022. However, the effective date was subsequently deferred to January 1, 2023 and then further deferred to January 1, 2024. In October 2022, the IASB made further amendments to IAS 1 in response to concerns raised about these changes to the classification of liabilities as current or non-current. The new amendments clarify that covenants of loan arrangements will not affect classification of a liability as current or non-current at the reporting date if the entity must ~~only~~ comply with the covenants only after the reporting date. However, if the entity must comply with a covenant either before or at the reporting date, this will affect the classification as current or non-current, even if the covenant is ~~only~~ tested for compliance only after the reporting date. The amendments require disclosures if an entity classifies a liability as ~~noncurrent~~non-current and that liability is subject to covenants that the entity must comply with within 12 months of the reporting date. The disclosures include: (i) the carrying amount of the liability, ; (ii) information about the covenants,; and (iii) facts and circumstances, if any, that indicate that the entity may have difficulty complying with the covenants. The amendments must be applied retrospectively in accordance with the normal requirements in IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors. Special transitional rules apply if an entity had early adopted the 2020 amendments regarding the classification of liabilities as current or noncurrent. The Company estimates that its application will not have a significant impact on the Company’s consolidated financial statements.

•

Lease liability in sale and leaseback – amendments to IFRS 16

In September 2022, the IASB finalized narrow-scope amendments to the requirements for sale and leaseback transactions in IFRS 16, Leases ~~which~~, which explain how an entity accounts for a sale and leaseback after the date of the transaction. The amendments specify that, in measuring the lease liability subsequent to the sale and leaseback, the seller-lessee determines ‘lease payments’ and ‘revised lease payments’ in a way that does not result in the seller-~~lessee~~lessees recognizing any amount of the gain or loss that relates to the right of use that it retains. This could particularly impact sale and leaseback ~~transactions~~ transactions where the lease payments include variable payments that do not depend on an index or a rate. The amendments are effective for annual reporting periods beginning on or after January 1, 2024, but they ~~could~~may be ~~early~~ adopted prior to that date. The Company estimates that its application will not have a significant impact on the Company’s consolidated financial statements.

(f)

Accounting policies and the use of estimates

The preparation of the unaudited condensed consolidated financial statements, in accordance with IFRS, requires the use of certain critical accounting estimates and assumptions. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the unaudited condensed consolidated financial statements, are disclosed where considered necessary. Estimates and judgements are discussed in detail in Note 2(z) in the annual consolidated financial statements for the year ended December 31, 2022. Such estimates and judgments are continuously evaluated and are based on historical experience and other factors, including expectations of future events, as assessed to be reasonable under the ~~present~~then-current circumstances.

During the second quarter of 2023, the Company changed its accounting policy on foreign exchange differences recognized in the unaudited condensed consolidated statements of profit. Following this change, the foreign exchange gains and losses are presented in the same line item as the underlying transaction. Total impact for the ~~six~~ nine-month periods ended ~~June~~ September 30, 2023 and 2022 was $1,~~832~~374 and $~~200~~540, respectively. The impact of the amounts reclassified to each underlying item was not material for all prior periods presented.

F-8

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

Asset Acquisitions: When the Company enters into an acquisition transaction, it determines whether the acquisition transaction is a purchase of an asset or a business based on the facts and circumstances of the transaction. In accordance with IFRS 3, Business Combinations, the Company first evaluates whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If that threshold is met, the set of assets and activities is not a business. If the threshold is not met, the Company evaluates whether the set meets the definition of a business. To be considered a business, a set must include an input and a substantive process that together significantly ~~contributes~~contribute to the ability to create an output. All assets acquired and liabilities assumed in a business combination are measured at their ~~acquisition date~~ fair values on the acquisition date. For asset acquisitions, the net assets acquired should be measured following a cost accumulation and allocation model under which the cost of the acquisition is allocated on a relative fair value basis to the qualifying assets acquired. In May 2023, the Company completed the acquisition of the stock of Vimalcor S.A. (“Vimalcor”) for a purchase price of $1,600. ~~The~~This was classified as an asset acquisition; the main asset acquired is the right of use of a plot of land in the port of Montevideo (refer to Note 6 and Note 9).

(g)

Seasonality

Certain of ~~the~~ Navios Logistics’ businesses have ~~seasonality~~seasonal aspects, and seasonality affects the results of Navios Logistics’ operations and revenues, particularly in the first and last quarters of each year. The high season for the Dry Port Terminals’ Uruguayan operations occurs from April to September and is linked to the South American harvest and the arrival of barges down the river. The high season for the Barge Business is between February and July as a result of the South American harvest and higher river levels. During the South American late spring and summer, mainly from November to January, the low water level in the northern Hidrovia ~~Waterway~~waterway could adversely affect operations of the Barge Business and the volumes it transports. To the extent water levels are insufficient to accommodate the draft of a heavily laden vessel, a vessel may be only partially loaded, generating lower revenue under agreements where revenue is based on volume of cargo loaded. If water levels on a waterway are too low, vessels ~~could~~may be ~~prevented~~ entirely prevented from loading and navigating. In addition, low water levels create ~~difficult~~ difficult navigation conditions, causing voyages to last longer resulting in increased voyage expenses. Such circumstances reduce the overall effective available carrying capacity of the vessel for the year.

Navios Logistics’ Liquid Port Terminal and its Cabotage Business are not significantly affected by seasonality, as their operations are primarily linked to refined petroleum products, and thus not significantly affected by water levels.

NOTE 3: SEGMENT INFORMATION

Current accounting guidance establishes standards for reporting information about operating segments in annual financial statements and requires reporting of selected information about operating segments in interim financial reports issued to shareholders. Operating segments are components of a company offor which separate financial information is available ~~that~~and is regularly evaluated by the chief operating decision -makers into ~~deciding~~decide how to allocate resources and assess performance. Chief operating decision -makers use profit to evaluate operating performance of each segment. ~~The~~Accounting guidance also establishes standards for related disclosures about a company’s products and services, geographical areas of operation, and major customers. The Company has determined that its reportable segments are ~~those~~the ~~that~~same ~~are~~as ~~based~~those onused in the Company’s ~~method of~~ internal reporting.

Navios Logistics has three reportable segments: the Port Terminal Business, the Cabotage Business and the Barge Business. The Port Terminal Business includes the dry port terminal operations and the liquid port terminal operations. A general description of each segment follows:

The Port Terminal Business segment

This segment includes the operating results of Navios Logistics’ dry port terminal and liquid port terminal operations.

(i) Dry port terminal operations

F-9

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

Navios Logistics owns and operates the largest independent bulk transfer and storage port terminal facilities in Uruguay based on throughputs. Its dry port terminal operations are comprised of two port terminals, one for agricultural and forest-related exports (the “Grain Port Terminal”) and one for mineral-related exports (the “Iron Ore Port Terminal”), which are both located in an international tax-free trade zone in the port of Nueva Palmira, Uruguay, at the convergence of the Parana and Uruguay rivers. The ~~Grain~~ Port ~~Terminal,~~ ~~together with the Iron Ore Port~~ Terminal, ~~may~~Business besegment ~~collectively referred to in this report as the “Dry Port Terminals.”~~

This segment includes the operating results of Navios Logistics’ dry port terminal and liquid port terminal operations.

(i) Dry port terminal operations

Navios Logistics owns and operates the largest independent bulk transfer and storage port terminal facilities in Uruguay based on throughputs. Its dry port terminal operations comprise two port terminals, one for agricultural and forest-related exports (the “Grain Port Terminal”) and one for mineral-related exports (the “Iron Ore Port Terminal,” together with the Grain Port Terminal, the “Dry Port Terminals”), which are both located in an international tax-free trade zone in the port of Nueva Palmira, Uruguay, at the convergence of the Parana and Uruguay rivers.

(ii) Liquid port terminal operations

Navios Logistics owns and operates an up-river port terminal with tank storage for refined petroleum products, oil, and gas (the “Liquid Port Terminal”) in San Antonio, Paraguay, approximately 17 miles by river from the Paraguayan capital of Asuncion. The Liquid Port Terminal is one of the largest independent storage facilities for crude and petroleum products in Paraguay, based on storage capacity. In addition, since October 2022, Navios Logistics has been providing bunkering services using floating storage capacity in the port of Nueva Palmira.

The Cabotage Business segment

Navios Logistics owns and operates ocean-going vessels to support the transportation needs of its customers in the South American coastal trade business. Its fleet consists of five ocean-going product tanker vessels and a river and estuary tanker vessel. Navios Logistics contracts its vessels operating in the Cabotage Business segment either on a time -charter basis or on a contract of affreightment (“CoA”) basis.

The Barge Business segment

Navios Logistics services the Argentine, Bolivian, Brazilian, Paraguayan and Uruguayan river transportation markets through its fleet. Navios Logistics operates different types of pushboats, and wet and dry barges for ~~delivering~~delivery of a wide range of dry and liquid products between ports in the Parana, Paraguay and Uruguay River systems in South America ~~(the Hidrovia or the “waterway”)~~. Navios Logistics contracts its vessels operating in the Barge Business segment either on a time -charter basis or on a CoA basis.

Inter-segment transactions, if any, are accounted for at current market prices.

The following table describes the results of operations of the three segments, the Port Terminal Business segment, the Cabotage Business segment and the Barge Business segment, for the three- and ~~six~~nine-month periods ended ~~June~~September 30, 2023 and 2022:

	Six month period ended June 30, 2023
	Nine month period ended September 30, 2023
	Port TerminalBusiness			CabotageBusiness			~~BargeBusiness~~Barge Business			Total
Revenue	$	67100,~~341~~287		$	2437,~~217~~864		$	5587,~~075~~366		$	~~146~~225,~~633~~517
Cost of sales		(2744,~~364~~230	)		(2234,~~833~~999	)		(4672,~~145~~196	)		(96151,~~342~~425	)
Gross profit	$	3956,~~977~~057		$	12,~~384~~865		$	815,~~930~~170		$	5074,~~291~~092
Administrative expenses		(23,~~414~~470	)		(12,~~602~~303	)		(68,~~047~~685	)		(1014,~~063~~458	)
Other operating income		3264			—			~~415~~922			~~447~~986
Other operating expenses		(~~101~~291	)		(~~937~~1,253	)		(12,~~374~~784	)		(24,~~412~~328	)
Allowance for expected credit losses on financial		(392	)		—			—			(392	)
Operating profit/(loss)	$	3751,~~102~~968		$	(~~1,155~~691	)	$	14,~~924~~623		$	3755,~~871~~900
Finance income		~~328~~463			~~124~~170			~~362~~506			~~814~~1,139
Finance costs		(1319,~~160~~494	)		(47,~~790~~062	)		(1420,~~035~~980	)		(3147,~~985~~536	)
Profit/(loss) before tax	$	24,270		$	(5,821	)	$	(11,749	)	$	6,700
Other financial results		—			1,349			403			1,752
Income tax expense		—			(534	)		(135	)		(669	)
Profit/(loss) before tax	$	32,937		$	(6,234	)	$	(15,448	)	$	11,255
Profit/(loss) for the period	$	24,270		$	(6,355	)	$	(11,884	)	$	6,031
Income tax (expense)/benefit		—			(961	)		310			(651	)
Profit/(loss) for the period	$	32,937		$	(7,195	)	$	(15,138	)	$	10,604

F-10

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

	Six month period ended June 30, 2022
	Nine month period ended September 30, 2022
	Port TerminalBusiness			CabotageBusiness			Barge Business			Total
Revenue	$	5891,~~811~~859		$	2440,~~113~~119		$	4469,~~828~~908		$	~~127~~201,~~752~~886
Cost of sales		(1624,~~262~~687	)		(2035,~~834~~523	)		(4776,~~155~~507	)		(84136,~~251~~717	)
Gross profit/(loss)	$	4267,~~549~~172		$	34,~~279~~596		$	(26,~~327~~599	)	$	4365,~~501~~169
Administrative expenses		(12,~~845~~815	)		(1,~~216~~857	)		(47,~~765~~274	)		(711,~~826~~946	)
Other operating income		72—			34257			~~568~~866			~~674~~1,123
Other operating expenses		—(1	)		(~~784~~1,621	)		(12,~~633~~136	)		(23,~~417~~758	)
Allowance for expected credit losses on financial		—			—			(~~228~~240	)		(~~228~~240	)
Operating profit/(loss)	$	4064,~~776~~356		$	1,~~313~~375		$	(815,~~385~~383	)	$	3350,~~704~~348
Finance income		2264			926			2573			56163
Finance costs		(1218,~~308~~658	)		(57,~~013~~390	)		(1320,~~932~~730	)		(3146,~~253~~778	)
Other financial results		—			—			3,798			3,798
Profit/(loss) before tax	$	2845,~~490~~762		$	(35,~~691~~989	)	$	(1832,~~494~~242	)	$	67,~~305~~531
Income tax expense		—			(312	)		(1	)		(313	)
Income tax (expense)/benefit		—			(324	)		393			69
Profit/(loss) for the period	$	2845,~~490~~762		$	(46,~~003~~313	)	$	(1831,~~495~~849	)	$	57,~~992~~600

	Three month period ended June 30, 2023
	Three month period ended September 30, 2023
	Port TerminalBusiness			CabotageBusiness			Barge Business			Total
Revenue	$	3632,~~430~~946		$	1213,~~613~~647		$	32,~~510~~291		$	8178,~~553~~884
Cost of sales		(16,~~198~~866	)		(1312,~~125~~166	)		(2526,~~852~~051	)		(55,~~175~~083	)
Gross profit/(loss)	$	20,232		$	(512	)	$	6,658		$	26,378
Gross profit	$	16,080		$	1,481		$	6,240		$	23,801
Administrative expenses		(1,~~281~~056	)		(~~849~~701	)		(32,~~204~~638	)		(54,~~334~~395	)
Other operating income		1832			—			~~208~~507			~~226~~539
Other operating expenses		(~~101~~190	)		(~~476~~316	)		(~~525~~1,410	)		(1,~~102~~916	)
Operating profit/(loss)	$	18,868		$	(1,837	)	$	3,137		$	20,168
Operating profit	$	14,866		$	464		$	2,699		$	18,029
Finance income		~~186~~135			6646			~~204~~144			~~456~~325
Finance costs		(6,~~650~~334	)		(2,~~252~~272	)		(76,~~041~~945	)		(15,~~943~~551	)
Other financial results		(7—	)		~~408~~1,349			~~264~~403			~~665~~1,752
Profit/(loss) before tax	$	128,~~397~~667		$	(~~3,615~~413	)	$	(3,~~436~~699	)	$	54,~~346~~555
Income tax expense		—			(801	)		(106	)		(907	)
Income tax benefit		—			(427	)		445			18
Profit/(loss) for the period	$	128,~~397~~667		$	(~~4,416~~840	)	$	(3,~~542~~254	)	$	4,~~439~~573

F-11

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

	Three month period ended June 30, 2022
	Three month period ended September 30, 2022
	Port TerminalBusiness			CabotageBusiness			Barge Business			Total
Revenue	$	3033,~~857~~048		$	1216,~~736~~006		$	25,~~312~~080		$	6874,~~905~~134
Cost of sales		(78,~~993~~425	)		(1014,~~917~~689	)		(2629,~~272~~352	)		(4552,~~182~~466	)
Gross profit/(loss)	$	2224,~~864~~623		$	1,~~819~~317		$	(~~960~~4,272	)	$	2321,~~723~~668
Administrative expenses		(970	)		(~~659~~641	)		(2,~~612~~509	)		(4,~~241~~120	)
Other operating income		82—			34223			~~415~~298			~~531~~521
Other operating expenses		—(73	)		(~~378~~837	)		(~~884~~503	)		(1,~~262~~413	)
Allowance for expected credit losses on financial		—			—			(8312	)		(8312	)
Operating profit/(loss)	$	2123,~~976~~580		$	~~816~~62		$	(46,~~124~~998	)	$	1816,~~668~~644
Finance income		1642			617			1848			40107
Finance costs		(6,~~379~~350	)		(2,~~504~~377	)		(6,~~830~~798	)		(15,~~713~~525	)
Other financial results		196			(128	)		3,681			3,749
Profit/(loss) before tax	$	17,272		$	(2,298	)	$	(13,748	)	$	1,226
Profit/(loss) before tax	$	15,809		$	(1,810	)	$	(7,255	)	$	6,744
Income tax (expense)/benefit		—			(12	)		394			382
Income tax expense		—			(242	)		(130	)		(372	)
Profit/(loss) for the period	$	17,272		$	(2,310	)	$	(13,354	)	$	1,608
Profit/(loss) for the period	$	15,809		$	(2,052	)	$	(7,385	)	$	6,372

For the Barge Business segment and for the Cabotage Business segment, the Company’s vessels operate on a regional basis and are not restricted to specific locations. Accordingly, it is not practicable to allocate the assets of these operations to specific locations. The total net book value of long-lived assets for vessels, including constructions in progress, amounted to $~~309~~310,~~577~~239 and $315,667, as of ~~June~~September 30, 2023 and December 31, 2022, respectively.

All the assets related to to the Port Terminal Business segment are located in Uruguay and in Paraguay. The total net book value of tangible assets for the Port Terminal Business segment amounted to $~~199~~202,~~196~~913 and $196,587 as of ~~June~~September 30, 2023 and December 31, 2022, respectively.

In addition, the net book value of intangible assets other than goodwill allocated to the Barge Business segment and to the Cabotage Business segment, collectively, amounted to $7,~~985~~541 and $8,873 as of ~~June~~September 30, 2023 and December 31, 2022, respectively, while the net book value of intangible assets allocated to the Port Terminal segment amounted to $3837,~~118~~810 and $37,320 as of ~~June~~September 30, 2023 and December 31, 2022, respectively.

Goodwill totaling to $22,142, $40,868 and $41,086 has been allocated to the ~~three segments, the~~ Port Terminal Business, the Barge Business and the Cabotage Business, respectively, for all periods presented.

F-12

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

NOTE 4: REVENUE, COST OF SALES AND ADMINISTRATIVE EXPENSES

4.1 Disaggregated revenue information

An analysis of the Company’s revenue from contracts with customers by stream of revenue is presented below:

Six monthperiod endedJune 30, 2023

Six monthperiod endedJune 30, 2022

Three monthperiod endedJune 30, 2023

Three monthperiod endedJune 30, 2022

Nine monthperiod endedSeptember 30,2023

Nine monthperiod endedSeptember 30,2022

Three monthperiod endedSeptember 30,2023

Three monthperiod endedSeptember 30,2022

COA/Voyage revenues

3861,~~762~~457

4468,~~326~~046

22,~~995~~695

2423,~~519~~720

Time chartering revenues non-lease component

2235,~~301~~071

1017,~~473~~816

12,~~162~~770

57,~~738~~343

Dry port terminal revenues

4869,~~842~~797

4777,~~991~~084

2420,~~600~~955

2529,~~174~~093

Storage fees (dry port) revenues

~~102~~201

2,~~173~~130

6299

~~1,812~~(43

)

Dockage revenues

47,~~656~~152

35,~~107~~120

2,~~797~~496

12,~~745~~013

Sale of products revenues-liquid port terminal

916,~~764~~874

12,~~894~~009

67,~~677~~110

—115

Liquid port terminal revenues

24,~~717~~177

34,~~075~~636

1,~~413~~460

1,~~614~~561

Other dry port terminal revenue

12,~~260~~086

~~571~~880

~~881~~826

~~512~~309

Turnover tax-non lease component

(~~367~~558

)

(~~243~~370

)

(~~187~~191

)

(~~115~~127

)

Revenue from contracts with customers

~~128~~196,~~037~~257

~~113~~177,~~367~~351

7168,~~400~~220

6063,~~999~~984

Time chartering revenues lease component

1829,~~907~~733

1425,~~728~~055

10,~~312~~826

810,~~070~~327

Turnover tax-lease component

(~~311~~473

)

(~~343~~520

)

(~~159~~162

)

(~~164~~177

)

Total revenue

~~146~~225,~~633~~517

~~127~~201,~~752~~886

8178,~~553~~884

6874,~~905~~134

4.2 Contract balances

	June 30, 2023		December 31,2022
	September 30,2023		December 31,2022
Trade receivable from contract with customers	$	38,012	$	45,962
Trade receivables from contract with customers	$	30,368	$	45,962
Contract assets	$	~~725~~1,130	$	532
Contract liabilities	$	32,~~057~~385	$	4,413

Trade receivables from contracts with customers ~~represent~~represents net amounts receivable from customers in respect of voyage charters, port terminals, and in respect of time charters for the non-lease (service component) of the receivable. Trade receivable consisted of the following:

	June 30,2023			December 31,2022
	September 30,2023			December 31,2022
Receivables from third party customers	$	4133,~~158~~514		$	49,309
Allowance for expected credit losses		(3,146	)		(3,347	)
Total trade receivables	$	3830,~~012~~368		$	45,962

F-13

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

Movement in the allowance for expected credit losses of trade receivables is analyzed as follows:

Balance as at January 1, 2023	$	(3,347	)
Allowance for expected credit losses		(392	)
Utilized provision		593
Balance as at June 30, 2023	$	(3,146	)
Balance as at September 30, 2023	$	(3,146	)
Balance as at January 1, 2022	$	(3,275	)
Allowance for expected credit losses		(~~228~~240	)
Balance as at June 30, 2022	$	(3,503	)
Utilized provision		248
Balance as at September 30, 2022	$	(3,267	)

Contract assets represent amounts from contracts with customers that reflect services transferred to customers before payment or consideration is due. Specifically, contract assets represent the freight, demurrage, deviation and other amounts receivable from charterers for the completed voyage performance as at the period end. The balances of contract assets vary and depend on ongoing voyage charters at period end.

Contract liabilities represent the performance due to a customer for the remaining voyage as at the period end. This may happen in ~~the~~instances ~~case~~ where the customer has made an advance payment before the completion of the voyage as of the period end date. The balances of contract liabilities vary and depend on advance payments received at period end.

4.3 Cost of Sales

Cost of sales for the three- and ~~six~~nine-month periods ended ~~June~~September 30, 2023 and 2022 were as follows:

Six monthperiod endedJune 30, 2023

Six monthperiod endedJune 30, 2022

Three monthperiod endedJune 30, 2023

Three monthperiod endedJune 30, 2022

Nine monthperiod endedSeptember 30,2023

Nine monthperiod endedSeptember 30,2022

Three monthperiod endedSeptember 30,2023

Three monthperiod endedSeptember 30,2022

Time charter, voyage and port terminal expenses

2946,~~713~~220

3151,~~121~~125

16,~~758~~507

1820,~~528~~004

Direct vessel expenses

3659,~~914~~117

3353,~~521~~456

2022,~~837~~203

1719,~~604~~935

Cost of products sold-Liquid Port Terminal

815,~~826~~654

1,~~712~~867

6,~~076~~828

21155

Depreciation and amortization

1928,~~238~~783

1727,~~897~~074

9,~~853~~545

9,~~029~~177

Impairment loss

1,651

—3,195

~~1,651~~—

—3,195

Total cost of sales

96151,~~342~~425

84136,~~251~~717

55,~~175~~083

4552,~~182~~466

4.4 Administrative expenses

Administrative expenses for the three- and ~~six~~nine-month periods ended ~~June~~September 30, 2023 and 2022 were as follows:

Six monthperiod endedJune 30, 2023

Six monthperiod endedJune 30, 2022

Three monthperiod endedJune 30, 2023

Three monthperiod endedJune 30, 2022

Nine monthperiod endedSeptember 30,2023

Nine monthperiod endedSeptember 30,2022

Three monthperiod endedSeptember 30,2023

Three monthperiod endedSeptember 30,2022

Payroll and related costs

45,~~048~~731

34,~~157~~809

21,~~210~~683

1,~~759~~652

Professional fees

12,~~941~~951

23,~~204~~510

~~942~~1,010

1,~~090~~306

Other expenses

35,~~690~~198

12,~~944~~823

1,~~987~~508

~~1,128~~879

Depreciation

~~384~~578

~~521~~804

~~195~~194

~~264~~283

Total

1014,~~063~~458

711,~~826~~946

54,~~334~~395

4,~~241~~120

F-14

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

NOTE 5: TANGIBLE FIXED ASSETS AND ASSETS UNDER CONSTRUCTION

Tangible assets

Vessels, port terminals and other fixed assets, net consist of the following:

Tanker vessels, barges and pushboats	Cost			AccumulatedDepreciation			Net BookValue
Balance January 1, 2023	$	541,159		$	(240,466	)	$	300,693
Additions		711,~~684~~268			(1014,~~206~~931	)		(23,~~522~~663	)
Disposal of vessels		(~~114~~938	)		—506			(~~114~~432	)
Sale of vessel		(3,878	)		—			(3,878	)
Impairment loss		(2,038	)		1,121			(917	)
Asset classified as held for sale		(3,878	)		—			(3,878	)
Balance September 30, 2023	$	545,573		$	(253,770	)	$	291,803
Balance June 30, 2023	$	542,813		$	(249,551	)	$	293,262

Deferred dry dock and special survey costs	Cost			AccumulatedDepreciation			Net BookValue
Balance January 1, 2023	$	66,683		$	(51,709	)	$	14,974
Additions		47,~~986~~071			(24,~~911~~393	)		2,~~075~~678
Impairment loss		(1,947	)		1,213			(734	)
Balance June 30, 2023	$	69,722		$	(53,407	)	$	16,315
Balance September 30, 2023	$	71,807		$	(54,889	)	$	16,918

Dry port terminals	Cost		AccumulatedDepreciation			Net BookValue
Balance January 1, 2023	$	231,341	$	(55,467	)	$	175,874
Additions		~~885~~1,752		(35,~~733~~617	)		(23,~~848~~865	)
Transfers from asset under construction		3,198		—			3,198
Balance June 30, 2023	$	235,424	$	(59,200	)	$	176,224
Balance September 30, 2023	$	236,291	$	(61,084	)	$	175,207

Oil storage plant and port facilities for liquid cargoes	Cost		AccumulatedDepreciation			Net BookValue
Balance January 1, 2023	$	31,231	$	(13,829	)	$	17,402
Additions		3637		(~~208~~312	)		(~~172~~275	)
Balance June 30, 2023	$	31,267	$	(14,037	)	$	17,230
Balance September 30, 2023	$	31,268	$	(14,141	)	$	17,127

Other fixed assets	Cost			AccumulatedDepreciation			Net BookValue
Balance January 1, 2023	$	8,673		$	(6,330	)	$	2,343
Additions		99738			(91129	)		8609
Write-down		(33	)		—			(33	)
Balance June 30, 2023	$	8,739		$	(6,421	)	$	2,318
Balance September 30, 2023	$	9,378		$	(6,459	)	$	2,919

F-15

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

Total	Cost			AccumulatedDepreciation			Net BookValue
Balance January 1, 2023	$	879,087		$	(367,801	)	$	511,286
Additions		1320,~~690~~866			(1725,~~149~~382	)		(34,~~459~~516	)
Disposal of vessel		(~~114~~938	)		—506			(~~114~~432	)
Sale of vessel		(3,878	)		—			(3,878	)
Impairment loss		(3,985	)		2,334			(1,651	)
Asset classified as held for sale		(3,878	)		—			(3,878	)
Transfers from asset under construction		3,198			—			3,198
Write-down		(33	)		—			(33	)
Balance June 30, 2023	$	887,965		$	(382,616	)	$	505,349
Balance September 30, 2023	$	894,317		$	(390,343	)	$	503,974

AsIn ofAugust ~~June 30,~~ 2023, the ~~vessel~~Company Hecompleted ~~Man H met~~ the ~~criteria to be accounted for as asset held for~~ sale ~~and has been~~ ~~re-measured to~~of ~~its~~the ~~fair~~He ~~value~~Man ~~less~~H ~~cost~~ to ~~sell,~~an ~~leading~~unrelated tothird anparty. The impairment loss ofamounted to $1,651, and ~~which~~ is included in the unaudited ~~condensed~~ consolidated statements of profit under the caption “Cost of sales.” In addition, an amount of $29, which relates to inventory, is classified as held for sale and increased the amount of asset held for sale to $3,907. The Company completed the sale of the He Man H to an unrelated third party in August 2023.

Certain assets of the Company have been pledged as collateral for the 2025 Notes (as defined herein) and loan facilities. As of ~~June~~September 30, 2023 and December 31, 2022, the net book value of such assets was $~~104~~103,~~668~~370 and $111,797, respectively.

Since 2018, Navios Logistics has acquired approximately 9.0 hectares of undeveloped land located in Port Murtinho, Brazil, for a total cost of $1,580. Navios Logistics plans to develop this land for its port operations.

Assets under construction

During the second quarter of 2023, Navios Logistics completed the construction of a new iron ore stockpile area in its Iron Ore Port Terminal ~~and~~for a total cost of $3,198 that was transferred to “Tangible assets” in its unaudited condensed consolidated statement of financial position. As of December 31, 2022, Navios Logistics has paid $1,907 for the construction of athe new stockpile area in its Iron Ore Port Terminal, which is included under the caption “Assets under construction” in its unaudited condensed consolidated statement of financial position.

As of ~~June~~September 30, 2023 and December 31, 2022, Navios Logistics has paid $~~871~~884 and $807, respectively, for capitalized expenses for the development of of its port operations in the Port Murtinho region of Brazil, which is included under the caption “Assets under construction” in its unaudited condensed consolidated statement of financial position.

As of ~~June~~September 30, 2023 and December 31, 2022, Navios Logistics has paid $35,~~941~~242 and $597, respectively, for the construction of a crane in the Iron ~~Ore~~ Ore Port Terminal, which is included under the caption “Assets under construction” in its unaudited condensed consolidated statement of financial position. Capitalized interest included under the caption “Assets under construction” for the construction of a crane was $288 as of September 30, 2023.

As of ~~June~~September 30, 2023, Navios Logistics has paid $~~930~~2,788 for the development of a new liquid terminal in Nueva Palmira, which is included under the caption “Assets under construction” in its unaudited condensed consolidated statement of financial position. Capitalized interest included under the caption “Assets under construction” for the development of a new liquid terminal in Nueva Palmira was $60 as of September 30, 2023.

As of September 30, 2023, Navios Logistics has paid $1,309 for the expansion of its infrastructure in its Iron Ore Port Terminal, which is included under the caption “Assets under construction” in its unaudited condensed consolidated statement of financial position. Capitalized interest included under the caption “Assets under construction” for the Iron Ore Port Terminal expansion was $8 as of September 30, 2023.

In September 2023, the Company entered into a five-year finance leasing contract for the construction of twelve barges to be delivered no later than the end of the first quarter of 2024 (the “Twelve Finance Lease Barges”). As of September 30, 2023, the Company paid an amount of $1,518 relating to the deposit for the construction of the twelve barges constructed pursuant to the Twelve Finance Lease Barges contract, which is included under the caption “Assets under construction” in its unaudited condensed consolidated statement of financial position. Upon delivery of each barge, the Company will record an asset at an amount equal to the finance lease liability increased by the deposits paid for the construction of the Twelve Finance Lease Barges (please see Note 13 “Commitments and Contingencies”).

F-16

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

NOTE 6: INTANGIBLES

Intangible assets other than goodwill

Intangible assets as of ~~June~~September 30, 2023 and December 31, 2022 consisted of the following:

Following the completion of the Vimalcor acquisition in May 2023, the Company recognized an intangible asset of $1,329, relating to the port -terminal -operating right to be amortized until January 2029.

June 30, 2023	AcquisitionCost		Additions		AccumulatedAmortization			Net BookValue
September 30, 2023	AcquisitionCost		Additions		AccumulatedAmortization			Net BookValue
Port terminal operating rights	$	53,152	$	1,329	$	(16,~~363~~671	)	$	3837,~~118~~810
Customer relationships		36,120		—		(28,~~135~~579	)		7,~~985~~541
Total intangible assets	$	89,272	$	1,329	$	(4445,~~498~~250	)	$	4645,~~103~~351

December 31, 2022	~~Acquisition Cost~~AcquisitionCost		AccumulatedAmortization			Net BookValue
Port terminal operating rights	$	53,152	$	(15,832	)	$	37,320
Customer relationships		36,120		(27,247	)		8,873
Total intangible assets	$	89,272	$	(43,079	)	$	46,193

Amortization expense for the three- and ~~six~~nine-month periods ended ~~June~~September 30, 2023 amounted to $~~726~~752 and $12,~~419~~171, respectively ($~~693~~694 and $12,~~386~~080 for the three- and ~~six~~ nine-month-periods ended ~~June~~September 30, 2022, respectively).

The aggregate amortization of acquired intangibles will be as follows:

Description	WithinOneYear		YearTwo		YearThree		YearFour		YearFive		Thereafter		Total
Port terminal operating rights	$	1,229	$	1,229	$	1,229	$	1,229	$	1,~~152~~114	$	3231,~~050~~780	$	3837,~~118~~810
Customer relationships		1,775		1,775		1,775		1,775		~~885~~441		—		7,~~985~~541
Total	$	3,004	$	3,004	$	3,004	$	3,004	$	21,~~037~~555	$	3231,~~050~~780	$	4645,~~103~~351

Goodwill

Goodwill resulting from business acquisitions amounted to $104,096 as of ~~June~~September 30, 2023 and December 31, 2022.

NOTE 7: ISSUED CAPITAL AND RESERVES

Share capital

As of ~~June~~September 30, 2023 and December 31, 2022, the Company has issued 20,000 shares of common stock, with a par value of $1.00.

Holders of each share of common stock have one vote for each share held of record on all matters submitted to a vote of shareholders. Dividends on shares of common stock may be declared and paid from funds available to the Company.

F-17

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

NOTE 8: INTEREST-BEARING LOANS AND BORROWINGS

Interest-bearing loans and borrowings consist of the following:

June 30, 2023

December 31,2022

Interest Rate

Maturity

September30, 2023

December 31,2022

Interest Rate

Maturity

Notes Payable

4,~~666~~055

5,152

LIBOR(3)

November 2, 2024(1)

Seller’s credit for the construction of six liquid barges

3,~~036~~101

2,911

Fixed rate of 8.5%

November 16, 2025(2)

2022 BBVA Facility

8,~~064~~147

7,900

Fixed rate of 4.25%

July 1, 2025

2022 Term Bank Loan

1,400

SOFR plus 3.15%

May 18, 2025

Seller’s credit agreement for the acquisition of the 2020 Fleet

5,000

Fixed rate of 5.00%

March 22, 2024

Santander Facility

1,~~236~~249

1,211

Fixed rate of 4.20%

March 7, 2026

Current portion of interest-bearing loans and borrowings

2322,~~402~~952

23,574

2025 Notes

500,000

Fixed rate of 10.75%

July 1, 2025

Notes Payable

~~497~~147

2,525

LIBOR(3)

November 2, 2024(1)

Seller’s credit for the construction of six liquid barges

43,~~407~~666

5,842

Fixed rate of 8.5%

November 16, 2025(2)

2022 BBVA Facility

108,~~556~~488

14,630

Fixed rate of 4.25%

July 1, 2025

2022 Term Bank Loan

43,~~200~~850

4,900

SOFR plus 3.15%

May 18, 2025

Seller’s credit agreement for the acquisition of the 2020 Fleet

—

5,000

Fixed rate of 5.00%

March 22, 2024

Santander Facility

21,~~289~~972

2,914

Fixed rate of 4.20%

March 7, 2026

Non-current portion of interest-bearing loans and borrowings

~~521~~518,~~949~~123

535,811

Less: deferred finance costs

(98,~~950~~818

)

(12,090

)

Total interest-bearing loans and borrowings, net

~~535~~532,~~401~~257

547,295

(1)	Includes 32 different drawdown events; the maturity date for each such drawdown event is on the 16^th semi-annual installment payment date following the drawdown event.

(2)	Includes six different drawdown events, corresponding to six different barges; the maturity date for each such drawdown event is on the 20^th quarterly installment payment date.

(3) The Company pays interest based on ~~six-month LIBOR, which will convert to~~ the Secured Overnight Financing Rate (“SOFR”) plus Credit Adjusted Spread (“CAS”), effective July 1, 2023.

F-18

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

2025 Notes

On July 8, 2020, Navios Logistics and its wholly owned subsidiary Navios Logistics Finance (US) Inc. (“Logistics Finance” and, together with Navios Logistics, the “Co-Issuers”) issued $500,000 in aggregate principal amount of senior secured notes due 2025 (“the 2025 Notes”), at a fixed rate per annum of 10.75%.

The 2025 Co-Issuers have the option to redeem the 2025 Notes in whole or in part, at any time on or after August 1, 2023, at a fixed price of 102.688%, and at par on or after August 1, 2024 plus in each case accrued and unpaid interest, if any. The Co-Issuers may also redeem all, but not less than all, of the 2025 Notes at a price equal to 100% of the principal amount plus accrued and unpaid interest, if any, upon certain changes in law that would trigger the payment of withholding taxes. Furthermore, upon the occurrence of certain change of control events, the Co-Issuers may be required to offer to purchase 2025 Notes from holders at a price equal to 101% of the principal amount plus accrued and unpaid interest, if any.

The 2025 Notes are senior secured obligations of the Co-Issuers ~~and rank equal in right of payment to all of their existing and future senior indebtedness and senior in right of payment to all of their future subordinated indebtedness~~. The 2025 Notes are fully and unconditionally guaranteed, jointly and severally, by all of the Company’s direct and indirect subsidiaries, other than Logistics Finance. ~~The~~As of September 30, 2023, the 2025 Notes ~~are~~were ~~currently~~ secured by: (i) first priority ship mortgages on three tanker vessels servicing the Company’s Cabotage Business (the (1) Elena H, (2) Makenita H and (3) Sara H). owned by certain subsidiary guarantors (such guarantors, the “Mortgaged Vessel Guarantors”) and related assignments of earnings and insurance, together with a first priority lien on the capital stock of each Mortgaged Vessel Guarantor; and (ii) an assignment by way of security of the Vale port contract (collectively, the “Collateral”). ~~The~~Upon the sale of the tanker vessel He Man H in August 2023, the vessel was released from the ~~2025~~Collateral, ~~Logistics~~and ~~Senior~~the ~~Notes~~net ~~and~~proceeds from the ~~proceeds~~sale of $3,732 were deposited in an escrow account and constitute cash collateral held for the benefit of the ~~2025~~holders ~~Logistics~~of the ~~Senior~~2025 Notes.

The indenture governing the 2025 Notes contains restrictive covenants that limit, among other things, the ability of the Co-Issuers and their restricted subsidiaries to incur additional indebtedness, pay dividends and make distributions on common and preferred stock, make other restricted payments, make investments, incur liens, consolidate, merge, sell or otherwise dispose of all or substantially all of their assets, and enter into certain transactions with affiliates, in each case, subject to exclusions, and other customary covenants. The indenture governing the 2025 Notes also contains customary events of default.

As of ~~June~~September 30, 2023 and December 31, 2022, deferred finance costs associated with the 2025 Notes amounted to $98,~~893~~769 and $12,018, respectively. Finance costs associated with the 2025 Notes amounted to $13,438 and $2640,~~875~~313 for the three- and ~~six~~ nine-month periods ended ~~June~~September 30, 2023, respectively, and $13,438 and $2640,~~875~~ 313 for the three- and ~~six~~ nine-month periods ended ~~June~~September 30, 2022, respectively, and is included in the unaudited condensed consolidated statement of profit under the caption “Finance costs.”

Other credit facilities

During the ~~six~~nine-month period ended ~~June~~September 30, 2023, the Company paid $1418,~~003~~282 related to scheduled repayment installments under its secured credit facilities. During the ~~three~~nine-month period ended ~~June~~September 30, 2022, the Company paid $2831,~~586~~971 related to scheduled repayment installments under its secured credit facilities. There were no proceeds from interest-bearing loans and borrowings for the ~~six~~nine-month period ended ~~June~~September 30, 2023. During the nine-month period ended September 30, 2022, the proceeds from interest-bearing loans and borrowings were $37,000.

~~During the six-month period ended June 30, 2022, the proceeds from interest-bearing loans and borrowings were $29,000.~~ Finance costs associated with the other credit facilities amounted to $~~697~~636 and $12,~~439~~ 137 for the three- and ~~six~~ nine-month periods ended ~~June~~September 30, 2023, respectively, and $~~791~~790 and $12,~~498~~229 for the three- and ~~six~~ nine-month periods ended ~~June~~September 30, 2022, respectively. These amounts are included in the unaudited condensed consolidated statement of profit under the caption “Finance costs.” As of ~~June~~September 30, 2023 and December 31, 2022, the unamortized deferred finance costs associated with the 2022 Term Bank Loan amounted to $5749 and $72, respectively.

F-19

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

The Company is subject to certain covenants, commitments, limitations and restrictions in connection with ~~its~~the 2025 Notes and its loan obligations and other long-term liabilities. The Company was in compliance with all such covenants as of ~~June~~September 30, 2023.

The annualized weighted average interest rates of the Company’s total interest-bearing loans and borrowings were 10.3639% and 10.2633% for the three- and ~~six~~ nine-month periods ended ~~June~~September 30, 2023, respectively, and 10.3111% and 10.1715% for the three- and ~~six~~ nine-month periods ended ~~June~~September 30, 2022, respectively.

As of ~~June~~September 30, 2023 and December 31, 2022, an amount of $229,~~824~~412 and $23,179, respectively, is included under the caption “Trade and other payables” in the Company’s unaudited condensed consolidated statement of financial position related to accrued interest from its interest-bearing loans and borrowings.

The maturity table below reflects future payments in respect of the Company’s long-term interest-bearing loans and borrowings and interest outstanding as of ~~June~~September 30, 2023, for the next ~~five~~ years and thereafter, based on the repayment schedule of the ~~respective~~2025 Notes and loan facilities (as described above).

Year	Amount inthousands of U.S.dollars
June 30, 2024	$	79,210
September 30, 2024		78,431
June 30, 2025		72,001
September 30, 2025		557,783
June 30, 2026		504,550
September 30, 2026		1,229
Total	$	~~655~~637,~~761~~443

NOTE 9: LEASES

Company as a lessee

The Company has lease contracts for land and offices used in its operations. Leases of land generally have an average lease term of 42.86 years with extension option attached, while office lease agreements generally have lease terms between 0.31 and 3.41 years.

The Company also has certain leases of offices with lease terms of 12 months or ~~less~~fewer and other low -value ~~office~~ office equipment. The Company applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.

On April 28, 2022, the Company entered into a five -year finance leasing contract for eight liquid barges. As of ~~June~~September 30, 2023, all ~~eight~~ eight liquid barges were delivered to Navios Logistics and have an average lease term of 4.74 years.

As a result of the Vimalcor acquisition, completed in May 2023, the Company currently has the right of use to a plot of land in the Port of Montevideo, and recorded a right-of-use asset at an amount equal to the finance lease liability amounting to $1,502. The concession expires in January 2029.

Set out below are the carrying amounts of right-of-use assets recognized and the movements during the period:

	Land			Officebuildings			~~Liquid Barges~~LiquidBarges			Total right ofuse assets
Balance as at January 1, 2023	$	7,361		$	804		$	2,683		$	10,848
Lease reassessment		527			—			—			527
Additions		1,502			178			8,007			9,687
Depreciation expense		(~~174~~304	)		(~~285~~436	)		(~~595~~1,068	)		(1,~~054~~808	)
Balance as at June 30, 2023	$	9,216		$	697		$	10,095		$	20,008
Balance as at September 30, 2023	$	9,086		$	546		$	9,622		$	19,254

F-20

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

An analysis of the lease liabilities is as follows:

	2023
At January 1,	$	11,761
Lease reassessment		527
Additions		9,687
Accretion of interest		~~591~~951
Payments		(12,~~564~~626	)
At June 30,	$	21,002
At September 30,	$	20,300
Current	$	3,~~570~~452
Non-current	$	1716,~~432~~848

The maturity table of the undiscounted cash flows of the lease liabilities is presented below:

Less than 1 year

Between 1 and 5 years

Over 5 years

Total

Lease Liability

4,~~293~~114

1312,~~139~~406

25,~~346~~119

4241,~~778~~639

The table below presents the components of the Company’s lease expense for the three- and ~~six~~ nine-month periods ended ~~June~~ September 30, 2023 and 2022:

Six monthperiod endedJune 30, 2023

Six monthperiod endedJune 30, 2022

Three monthperiod endedJune 30, 2023

Three monthperiod endedJune 30, 2022

Nine monthperiod endedSeptember 30,2023

Nine monthperiod endedSeptember 30,2022

Three monthperiod endedSeptember 30,2023

Three monthperiod endedSeptember30, 2022

Depreciation expense of right-of-use assets

1,~~054~~808

~~337~~523

~~681~~754

~~168~~186

Interest expense on lease liabilities

~~590~~951

~~358~~539

~~346~~361

~~177~~181

Expense relating to short-term leases

2,~~021~~889

23,~~021~~040

~~1,013~~868

1,~~013~~019

Total

35,~~665~~648

24,~~716~~102

21,~~040~~983

1,~~358~~386

Liquid Barges

On April 28, 2022, the Company entered into a five -year finance leasing contract for eight liquid barges, to be delivered from the fourth quarter of 2022 through the end of second quarter of 2023. The finance lease contract for each barge delivered is payable by in 60 consecutive monthly payments of $26 each, commencing ~~with~~on the delivery date of the applicable barge. At expiration, the Company ~~will~~ will have the ability to exercise the purchase option for these barges, or to extend the term of the finance leasing contract.

In December 2022, two of the eight liquid barges were delivered. The Company recorded a right-of-use asset at an amount equal to the finance lease liability amounting to $2,683. The finance lease with respect to each barge delivered is repayable byin 60 consecutive monthly payments of approximately $26 each. The agreement for the two finance leases matures in the fourth quarter of 2027.

During the first quarter of 2023, ~~additional~~ three additional liquid barges were delivered. The Company recorded a right-of-use asset at an amount equal to the finance lease liability amounting to $4,010. The finance lease with respect to each barge delivered is repayable byin 60 consecutive monthly payments of approximately $26 each. One of the agreements matures in the fourth quarter of 2027 and two in the first quarter of 2028.

During the second quarter of 2023, the remaining three liquid barges under the finance lease contract were delivered. The Company recorded a right-of-use asset at an amount equal to the finance lease liability amounting to $3,997. The finance lease

F-21

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

~~During the second quarter of 2023, the remaining three liquid barges under the finance lease contract were~~ ~~delivered.~~with ~~The~~respect ~~Company recorded a right-of-use asset at an amount equal~~ to ~~the~~each ~~finance~~barge ~~lease~~delivered ~~liability amounting to $3,997. The finance lease~~ is repayable byin 60 consecutive monthly payments of approximately $26 each and mature in the second quarter of 2028.

Company as a lessor

The Company through its subsidiaries entered into time charter agreements with aggregate hire receivables (contracted revenue), comprising lease revenue and service revenue (see Note 4.1). There are no significant variable lease payments in relation to these agreements.

NOTE 10: RELATED PARTY DISCLOSURES

As of ~~June~~ September 30, 2023 and December 31, 2022, the amounts due to affiliate companies were as follows:

	June 30,2023			December 31,2022
	September 30,2023			December 31,2022
Peers Business Inc. (Other related party)	$	—		$	(10,000	)
Navios Shipmanagement Inc. (Other related party)		(23,~~059~~591	)		(1,319	)
Total	$	(23,~~059~~591	)	$	(11,319	)

Amounts due to affiliate companies do not accrue interest and do not have a specific due date for their settlement.

Administrative expenses: On August 29, 2019, Navios Logistics entered into an assignment agreement with Navios Corporation (“NC”) and Navios Shipmanagement Inc. (“NSM”), whereby the administrative services agreement originally entered into between Navios Logistics and Navios Holdings on April 12, 2011, first assigned to NC on May 28, 2014 and subsequently amended on April 6, 2016 and January 1, 2022 (extending the term of the agreement to January 1, 2027), was assigned from NC to NSM. ~~Thereafter~~Since the assignment, NSM continues to provide certain administrative management services to Navios Logistics. NSM is reimbursed for reasonable costs and expenses incurred in connection with the provision of these services. Total administrative expenses charged for the three- and ~~six~~ nine-month periods ended ~~June~~September 30, 2023 amounted to $728 and $12,~~455~~183, respectively, and $286 and $~~572~~858 for the three- and ~~six~~ nine-month periods ended ~~June~~September 30, 2022, respectively.

Promissory note: On July 30, 2021, the Company issued a $20,000 promissory note to Grimaud (the “Promissory Note”). On July 30, 2021, Grimaud entered into an assignment agreement with Peers Business Inc. (“Peers”), whereby the Promissory Note was assigned to Peers. In February 2023, the Company paid the remaining balance of $10,000 in full and there is no remaining outstanding balance on the Promissory Note as of ~~June~~September 30, 2023.

Lodging and travel services: Navios Logistics obtains lodging and travel services from entities all partially owned by Claudio Pablo Lopez, Navios Logistics’ Vice Chairman. Total charges were $13 and $17, respectively, for the three- and nine-month periods ended September 30, 2023, and less than $0.1 million for each of the three- and nine-month periods ended September 30, 2022, respectively. Amounts payable amounted to $15 and nil as of September 30, 2023 and December 31, 2022, respectively.

Navios Logistics has entered into an agreement with NSM with effect as of October 1, 2023, for the leasing of its global office spaces. The agreement has a term of five years with fees of $35.6 per month for the first year of the contract increasing thereafter 5% per annum for the second, third, and fourth years, and 3% for the fifth year. The Conflicts Committee of Navios Logistics has approved the transaction.

In October 2023, Navios Logistics agreed to charter-in the Navios Vega, a 2009-built Ultra-Handymax vessel, following her modification to a ship-to-ship transhipper vessel, from Navios Maritime Partners L.P. for a period of five years at a rate of $25.8 net per day. This transaction was negotiated by, and unanimously approved by, the conflicts committee of Navios Logistics. Navios Vega is expected to be delivered in January 2024.

F-22

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

Lodging and travel services: Navios Logistics obtains lodging and travel services from entities all partially owned by Claudio Pablo Lopez, Navios Logistics’ Vice Chairman. Total charges were nil and $4, respectively, for the three and six-month periods ended June 30, 2023, and nil for each of the three and six-month periods ended June 30, 2022, respectively. Amounts payable amounted to less than $1 and nil, respectively, as of June 30, 2023 and December 31, 2022.

Navios Logistics has entered into an agreement with NSM with effect as of October 1, 2023, for the leasing of its global office spaces. The agreement has a term of five years with fees of $35.6 per month for the first year of the contract increasing thereafter 5% per annum for years two to four and 3% for year five. The Conflicts Committee of Navios Logistics has approved the transaction.

Employment Agreements - Compensation of key management personnel

The Company has an employment agreement with one management employee who is a non-controlling shareholder of the Company. This agreement stipulates, among other things, severance and benefit arrangements in the event of termination. In addition, the agreement includes confidentiality provisions and covenants not to compete. The agreement renews automatically for successive one-year periods until either party gives 90 days’ written notice of its intention to terminate the agreement. The agreement calls for a base salary equal to $340 per year, plus annual bonuses and other incentives, provided certain performance targets were achieved. Under the agreement, the Company accrued compensation expense totaling $85 and $~~170~~255 for the three- and ~~six~~nine-month periods ended ~~June~~September 30, 2023, respectively. For the three- and ~~six~~nine-month periods ended ~~June~~September 30, 2022, the Company had three employment agreements in place and the accrued compensation expense totaled $225 and $~~450~~675, respectively.

Pursuant to the assignment agreement with NC and NSM, the latter provides certain administrative management services to Navios Logistics including the compensation of its directors and members of the Company’s senior management who are not employees of the Company. This compensation is included in the administrative expenses charged, which amounted to $728 and $12,~~455~~183 for the three- and ~~six~~ nine-month periods ended ~~June~~September 30, 2023, respectively, and $286 and $~~572~~858 for the three- and ~~six~~ nine-month periods ended ~~June~~September 30, 2022, respectively.

NOTE 11: FAIR VALUE MEASUREMENT

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cash and cash equivalents: The carrying amounts reported in the unaudited condensed consolidated financial position for interest bearing deposits approximate their fair ~~value~~values because of the short maturity of these ~~investment~~investments.

Restricted cash: The carrying amounts reported in the unaudited condensed consolidated financial position for interest -bearing deposits approximate their fair ~~value~~ values because of the short maturity of these investments.

Notes Payable: The Notes Payable are floating -rate obligations and their carrying amounts approximate their fair value as indicated in the table below.

Interest-bearing loans and borrowings: The book value has been adjusted to reflect the net presentation of deferred financing costs. The outstanding balance of the floating -rate loans continues to approximate ~~their~~the fair value of such loans, excluding the effect of any deferred finance costs. The 2025 Notes, the 2022 BBVA Facility, the Santander Facility, the seller’s credit for the construction of six liquid barges and the seller’s credit agreement for the acquisition of the 2020 Fleet are fixed -rate borrowings and their fair value was determined based on quoted market prices.

The estimated fair values of the Company’s financial instruments are as follows:

	June 30, 2023						December 31, 2022
	September 30, 2023						December 31, 2022
	Book Value			Fair Value			Book Value			Fair Value
Cash and cash equivalents	$	4535,~~694~~654		$	4535,~~694~~654		$	49,864		$	49,864
Restricted cash	$	—3,732		$	—3,732		$	300		$	300
2025 Notes	$	(~~490~~491,~~107~~231	)	$	(~~489~~492,~~275~~465	)	$	(487,982	)	$	(483,350	)
Notes payable, including current portion	$	(54,~~163~~202	)	$	(54,~~163~~202	)	$	(7,677	)	$	(7,677	)
Other long-term indebtedness, including current portion	$	(4036,~~131~~824	)	$	(4036,~~131~~824	)	$	(51,708	)	$	(51,708	)

F-23

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

Fair Value Measurements

The estimated fair value of the Company’s financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows:

Level I: Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Valuation of these items does not entail a significant amount of judgment.

Level II: Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date.

Level III: Inputs that are unobservable.

	Fair Value Measurements at June 30, 2023
	Fair Value Measurements at September 30, 2023
	Total			Level I			Level II			Level III
Cash and cash equivalents	$	4535,~~694~~654		$	4535,~~694~~654		$	—		$	—
2025 Notes	$	(489,275	)	$	(489,275	)	$	—		$	—
Restricted cash	$	3,732		$	3,732		$	—		$	—
Notes payable, including current portion(1)	$	(5,163	)	$	—		$	(5,163	)	$	—
2025 Notes	$	(492,465	)	$	(492,465	)	$	—		$	—
Other long-term indebtedness, including current portion (1)	$	(40,131	)	$	—		$	(40,131	)	$	—
Notes payable, including current portion(1)	$	(4,202	)	$	—		$	(4,202	)	$	—
Other long-term indebtedness, including current portion (1)	$	(36,824	)	$	—		$	(36,824	)	$	—


	Fair Value Measurements at December 31, 2022
	Total			Level I			Level II			Level III
Cash and cash equivalents	$	49,864		$	49,864		$	—		$	—
Restricted cash	$	300		$	300		$	—		$	—
2025 Notes	$	(483,350	)	$	(483,350	)	$	—		$	—
Notes payable, including current portion⁽¹⁾	$	(7,677	)	$	—		$	(7,677	)	$	—
Other long-term indebtedness, including current portion ⁽¹⁾	$	(51,708	)	$	—		$	(51,708	)	$	—

(1)	The fair value of the Company’s debt is estimated based on currently available debt with similar contract terms, interest rates and remaining maturities and takes into account the Company’s creditworthiness.

There were no changes in valuation techniques during the reporting periods presented, ~~neither~~nor ~~there~~ were there transfers between levels.

NOTE 12: EARNINGS PER SHARE (EPS)

Basic and diluted net earnings per share are computed using the weighted-average number of common shares outstanding. The computations of basic and diluted earnings per share for the three- and nine-month periods ended ~~June~~September 30, 2023 and 2022 respectively, are as follows:

	Six monthperiod endedJune 30, 2023		Six monthperiod endedJune 30, 2022		Three monthperiod endedJune 30, 2023		Three monthperiod endedJune 30, 2022
	Nine monthperiod endedSeptember 30,2023		Nine monthperiod endedSeptember 30,2022		Three monthperiod endedSeptember 30,2023		Three monthperiod endedSeptember 30,2022
Profit attributable to Navios Logistics’ stockholders	$	610,~~031~~604	$	57,~~992~~600	$	4,~~439~~573	$	61,~~372~~608
Weighted average number of shares, basic and diluted		20,000		20,000		20,000		20,000
Net earnings per share from continuing operations: Basic and diluted	$	0.3053	$	0.3038	$	0.2223	$	0.3208

F-24

NAVIOS SOUTH AMERICAN LOGISTICS INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of U.S. dollars)

At ~~June~~September 30, 2023 and 2022, the Company had no dilutive or potentially dilutive securities, ~~accordingly~~ accordingly there is no difference between basic and diluted net earnings per share.

NOTE 13: COMMITMENTS AND CONTINGENCIES

Legal

Navios Logistics has issued a guarantee and indemnity letter that guarantees the performance obligations by a consolidated subsidiary of all its obligations to Vitol S.A. up to $12,000. This guarantee expires on March 28, 2024.

In September 2020, the Company agreed to a settlement regarding a storage and transshipment contract in the Grain Port Terminal for a total amount to be paid to the Company as a result of the settlement of $4,140, to be collected in three equal installments of $1,380 within each of June 2021, 2022 and 2023. In June 2021, 2022 and 2023, the Company collected the first, second and third installments.

~~The~~In September 2023, the Company isentered into ~~subject~~a tofive-year ~~legal~~finance ~~proceedings,~~leasing ~~claims~~contract ~~and contingencies~~for ~~arising~~the inconstruction of the ~~ordinary~~Twelve ~~course~~Finance ofLease ~~business~~Barges. ~~When~~The ~~such~~Company ~~amounts~~assessed ~~can~~the belease ~~estimated~~classification criteria and concluded that the ~~contingency~~agreement is ~~probable,~~a ~~management~~finance ~~accrues~~lease. The obligation under the ~~corresponding~~finance ~~liability.~~lease contract ~~While~~is payable in 60 consecutive monthly payments of $11 for each barge, commencing on the ~~ultimate~~delivery ~~outcome~~date of ~~lawsuits~~the orapplicable ~~other~~barge. ~~proceedings~~Upon ~~against~~the expiration of the contract, the Company ~~cannot~~will behave ~~predicted~~the ~~with~~ability ~~certainty,~~to ~~management~~exercise ~~does~~the ~~not~~purchase ~~believe~~option for any of the ~~costs,~~twelve ~~individually~~barges orat ina ~~aggregate~~cost of ~~all~~$350 ~~such~~per ~~proceedings,~~barge. ~~claims~~Upon ~~and~~delivery ~~contingencies~~of each barge under the leasing contract, the Company will ~~have~~recognize a ~~material~~finance ~~adverse~~lease ~~effect~~liability based on the net present value of the remaining charter-in payments including the purchase option to acquire the barge at the end of the lease period. As of September 30, 2023, the Company’s paid an amount of $1,518 relating to the deposit for the construction of the twelve barges constructed pursuant to the Twelve Finance Lease Barges contract, which is included under the caption “Assets under construction” in its unaudited condensed consolidated ~~financial~~statement of financial position,. ~~results~~For offurther ~~operations~~information orplease ~~cash~~see ~~flows~~Note 5 “Tangible fixed assets and assets under construction.”

The Company is subject to legal proceedings, claims, and contingencies arising in the ordinary course of business. When such amounts can be estimated and the contingency is probable, management accrues the corresponding liability. While the ultimate outcome of lawsuits or other proceedings against the Company cannot be predicted with certainty, management does not believe the costs, individually or in aggregate, of all such proceedings, claims and contingencies will have a material adverse effect on the Company’s unaudited condensed consolidated financial position, results of operations or cash flows.

NOTE 14: SUBSEQUENT EVENTS

F-25

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: September 7, 2023

NAVIOS SOUTH AMERICAN LOGISTICS INC.

Date: December 14, 2023

NAVIOS SOUTH AMERICAN LOGISTICS INC.

/s/ Georgios Akhniotis

Georgios Akhniotis

Chief Executive Officer

Filing Compare · Navios South American Logistics Inc.