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Navios Maritime Partners L.P. Reports Solid First Quarter Results

Navios Maritime Partners L.P., an international owner and operator of dry cargo and tanker vessels, reported its financial results for the first quarter ended March 31, 2024.

Angeliki Frangou, Chairwoman and Chief Executive Officer of Navios Partners stated, “I am pleased with the results for the first quarter of 2024. We reported revenue of $318.6 million and net income of $73.4 million. Earnings per common unit were $2.38.”

Angeliki Frangou continued, “In the first quarter of 2024, regional conflict, particularly in the Middle East, continued to drive transportation. The US and European economies were generally healthy. As a result, this was Navios Partners’ strongest first quarter financial performance ever.

We remain cautious as this robust maritime environment can change quickly. As usual, we focus on things that we can control, such as reducing leverage and modernizing our energy efficient fleet. We are taking long-term cover where available, as rates are around or exceeding long-term averages. For example, we recently chartered-out a capesize vessel for 2.9 years at a net daily rate of $28,500.”

Fleet update

• Sale of vessels YTD 2024
° $92.6 million gross sale proceeds from sale of four vessels

Completed the sale of three vessels for $75.6 million

During the first quarter of 2024, Navios Partners completed the sale of a 2004-built panamax of 76,602 dwt to an unrelated third party, for gross sale proceeds of $9.8 million.

In May 2024, Navios Partners completed the sale of a 2006-built panamax of 76,596 dwt and a 2009-built VLCC of 297,188 dwt to unrelated third parties, for aggregate gross sale proceeds of $65.8 million.

Agreed to sell one vessel for $17.0 million

During the first quarter of 2024, Navios Partners agreed to sell a 2007-built containership of 3,450 TEU to an unrelated third party, for gross sale proceeds of $17.0 million. The sale is expected to be completed during the second quarter of 2024.

• Acquisition of vessels YTD 2024
° $245.7 million acquisitions YTD 2024

Acquisition of two newbuilding scrubber-fitted aframax/LR2 tankers for $129.1 million

During the first quarter of 2024, Navios Partners agreed to acquire two newbuilding scrubber-fitted aframax/LR2 tankers of 115,000 dwt, from an unrelated third party, for a purchase price of $61.25 million each (plus $3.3 million per vessel in additional features). The vessels are expected to be delivered into Navios Partners’ fleet during 2027.
Acquisition of four Japanese-built kamsarmaxes (previously chartered-in) for $116.6 million
In March 2024, Navios Partners declared its options to purchase a 2015-built scrubber-fitted kamsarmax of 80,994 dwt, a 2016-built kamsarmax of 84,904 dwt, a 2017-built kamsarmax of 81,626 dwt and a 2017-built kamsarmax of 81,630 dwt, for an aggregate purchase price of approximately $116.6 million based on the expected delivery date.

• Three newbuilding vessels delivered YTD 2024

In January 2024 and April 2024, Navios Partners took delivery of two 2024-built 5,300 TEU containerships, which have been chartered-out at an average rate of $37,050 net per day for a period of 5.2 years, as previously announced.

In May 2024, Navios Partners took delivery of a 2024-built aframax/LR2 tanker, which has been chartered-out at $26,366 net per day for a period of five years, as previously announced.

• $211.2 million contracted revenue agreed YTD 2024; $3.3 billion total contracted revenue

Navios Partners has entered into new long-term charters which are expected to generate revenue of $211.2 million.

° Two newbuilding aframax/LR2 tankers have been chartered-out for a period of five years at $27,776 net per day.
° One VLCC has been chartered-out for a period of 1.7 years at $45,672 net per day.
° Two 2,750 TEU containerships have been chartered-out for a period of 1.9 years at $19,009 net per day.
° One 4,250 TEU containership has been chartered-out for a period of 1.7 years at $24,440 net per day.
° One capesize has been chartered-out for a period of 2.9 years at $28,500 net per day.
° One kamsarmax has been chartered-out for a period of 1.7 years at $17,290 net per day.

Including the above long-term charters, Navios Partners has $3.3 billion contracted revenue through 2037.

Financing update

In February 2024, Navios Partners entered into a sale and leaseback agreement of $16.8 million with an unrelated third party for a 2011-built capesize of 179,169 dwt. The sale and leaseback agreement matures in the first quarter of 2030 and bears interest at Term Secured Overnight Financing Rate plus 225 bps per annum.

Cash distribution

The Board of Directors of Navios Partners declared a cash distribution for the first quarter of 2024 of $0.05 per unit. The cash distribution is paid on May 14, 2024 to unitholders of record as of May 10, 2024. The declaration and payment of any further dividends remain subject to the discretion of the Board of Directors and will depend on, among other things, Navios Partners’ cash requirements as measured by market opportunities and restrictions under its credit agreements and other debt obligations and such other factors as the Board of Directors may deem advisable.

Operating Highlights

Navios Partners owns and operates a fleet comprised of 76 dry bulk vessels, 46 containerships and 54 tankers, including 17 newbuilding tankers (eleven aframax/LR2 and six MR2 product tanker chartered-in vessels under bareboat contracts), that are expected to be delivered through 2027 and nine newbuilding containerships (seven 5,300 TEU containerships and two 7,700 TEU containerships), that are expected to be delivered through 2025. The fleet excludes one containership agreed to be sold.

Navios Partners has entered into short, medium and long-term time charter-out, bareboat-out and freight agreements for its vessels with a remaining average term of 2.0 years. Navios Partners has currently fixed 67.2% and 40.6% of its available days for the last nine months of 2024 and for 2025, respectively. Navios Partners expects contracted revenue of $732.0 million and $684.0 million for the last nine months of 2024 and for 2025, respectively. The average expected daily charter-out rate for the fleet is $25,874 and $28,561 for the last nine months of 2024 and for 2025, respectively.

EARNINGS HIGHLIGHTS

For the following results and the selected financial data presented herein, Navios Partners has compiled condensed consolidated statements of operations for the three month periods ended March 31, 2024 and 2023. The quarterly information was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA, Adjusted EBITDA, Adjusted Earnings per Common Unit basic and diluted and Adjusted Net Income are non-GAAP financial measures and should not be used in isolation or substitution for Navios Partners’ results calculated in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).

Three month periods ended March 31, 2024 and 2023

Time charter and voyage revenues for the three month period ended March 31, 2024 increased by $9.1 million, or 2.9%, to $318.6 million, as compared to $309.5 million for the same period in 2023. The increase in revenue was mainly attributable to the increase in revenue from freight voyages. For the three month periods ended March 31, 2024 and March 31, 2023, time charter and voyage revenues were positively affected by $0.1 million and negatively affected by $13.0 million, respectively, relating to the straight line effect of the containership and tanker charters with de-escalating rates. The Time Charter Equivalent (“TCE”) rate increased by 3.4% to $21,514 per day, as compared to $20,811 per day for the same period in 2023. The available days of the fleet decreased by 2.6% to 13,540 days for the three month period ended March 31, 2024, as compared to 13,908 days for the same period in 2023 mainly due to the sale of vessels, partially mitigated by the deliveries of newbuilding and secondhand vessels.

EBITDA of Navios Partners for the three month periods ended March 31, 2024 and 2023 was affected by the items described in the table above. Excluding these items, Adjusted EBITDA increased by $8.9 million to $164.3 million for the three month period ended March 31, 2024, as compared to $155.4 million for the same period in 2023. The increase in Adjusted EBITDA was primarily due to a: (i) $9.1 million increase in time charter and voyage revenues; (ii) $2.9 million decrease in other expense, net; and (iii) $1.9 million decrease in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items). The above increase was partially mitigated by a: (i) $2.1 million increase in time charter and voyage expenses mainly due to the increase in bunker expenses arising from the increased days of freight voyages in the first quarter of 2024; (ii) $1.7 million increase in vessel operating expenses mainly due to the adjustment of the fixed daily fee in accordance with our management agreements, partially mitigated by the sale of vessels; and (iii) $1.2 million increase in general and administrative expenses in accordance with our administrative services agreement.

Net Income for the three month periods ended March 31, 2024 and 2023 was affected by the items described in the table above. Excluding these items, Adjusted Net Income increased by $5.8 million to $71.5 million for the three month period ended March 31, 2024, as compared to $65.7 million for the same period in 2023. The increase in Adjusted Net Income was primarily due to: (i) an $8.9 million increase in Adjusted EBITDA; (ii) a $6.1 million decrease in interest expense and finance cost, net; and (iii) a $1.8 million increase in interest income. The above increase was partially mitigated by an $11.0 million negative impact from the depreciation and amortization, mainly due to a $5.1 million increase in the amortization of deferred drydock, special survey costs and other capitalized items, a $4.5 million decrease in the amortization of the unfavorable lease terms and a $1.4 million increase in the depreciation and amortization expense.

Fleet Employment Profile

The following table reflects certain key indicators of Navios Partners’ core fleet performance for the three month periods ended March 31, 2024 and 2023.

Full Report

Source: Navios Maritime Partners L.P.

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