NMM - Earnings call transcript Q3 2020 | Navios Maritime Partners L.P.

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Operator

Thank you for joining us on Navios Maritime Partners Third Quarter 2020 Earnings Conference Call. With us today from the company are Chairman and CEO, Ms. Angeliki Frangou; Chief Financial Officer, Mr. Stratos Desypris; and Executive President of Business Development, Mr. George Achniotis.

conference being this reminder, a call webcast. is As go Investors www.navios-mlp.com. section access the Navios the please webcast, at To of to Partners' website

You'll the in and see also be earnings link of will the page, there. the conference the call a referenced presentation middle of found in today's copy webcast

harbor review of Private call Securities Reform This Act could meaning contain I will statement. the the Now forward-looking about of Partners. Navios XXXX the safe conference statements within Litigation

Exchange Partners update Such agenda are in assume forward-looking will that current which statements are risks facts. from upon of be more not results such not are any risks. in with and of Navios offer in differ today's are opening call to for materially conference Navios give the this First, is Such as obligation Ms. and light Desypris questions. set follows: Partners' statements an remarks; the contained statements statements. filings fully historical The Frangou beliefs operational does Navios Forward-looking herein based call. Partners' overview; subject uncertainties, information and forth the financial we'll will provide an Mr. the Commission. take will overview an expectations update of Next, industry lastly, and actual cause understood and information results. management should discussed could call Mr. are and risks Partners' to to Then to Securities forward-looking open Navios Achniotis The the

to Mrs. Frangou. Angeliki the Now CEO, over Angeliki? call Navios Partners' I'll and Chairman turn

Angeliki Frangou

call. to on all Thank of you, you today's morning Doris, us and good joining

XXXX. the am pleased third pandemic, difficulties the quarter the with I Given results with the for of associated

of and reported $XX.X million $XX.X Navios revenue During the adjusted quarter, Partners million. third of EBITDA

rebound throughout other XXXX patterns measures purchasing to food in expected from improvement demand half QX first QX. and about new consideration, global Consequently, we global are QX economy. the drybulk We Although, XXXX. shutdowns, and helped that economies fiscal continue optimistic security the stimulus in and in believe in to was hurt rebound is in the exit policy in attributable of the by demand quarantine’s pandemic this growth the

As NMM’s sheet Navios On XX you Navios XX.X% containers. with X, Slide a leverage. Slide currently maintain can premium balance see you We fleet holds Partners NMM in low Maritime see vessels. drybulk X, interest a can a is shipping platform. from strong why is

debt-to-book capitalization net XX.X%. Our is

We have and no growth staggered committed debt CapEx maturities requirements.

in on details per the for remaining also of shutdown. weak We global and the impact $X,XXX global of day contracted low XXXX million Obviously, the open pandemic GDP trade. have given X was Slide XXXX. $XXX break-even half for about revenue QX first

next outlook expects led However, X.X%, is X.X% global expected mainly favorable. to GDP grow year. an growth for XXXX the of by GDP by The and China, economic IMF

result disruption during by in a As of first half is of XXXX. XXXX, the activity, to drybulk to trade contract X.X% economic the expected

However, of as the economies Slide our XXXX. recover XXXX. is in during increase X.X% by trade development recent projected to shows third to continue X quarter drybulk

income. net in age average QX, with and and continue six renew fleet $X.X vessels update, to For for two of profile. adjusted acquired age $XX years our $XX.X an adjusted its in our After generated EBITDA million We we fleet million. drybulk million we improve

partially of sell then vessels to about for agreed X.X also XX a years, of million. was amortization older bank, age and $XX profile include $XX We drybulk an financed year the the interest of of million X.XX% the maturity commercial two from above LIBOR. of two with our loan vessels of rate QX in loan position with of average The the XXXX, terms

a $X,XXX CapEx. available index-linked day. are operating remaining open XXXX $XX,XXX us net X, XX% XX.X% net further per the day, our open fixed range QX XX% fixed per and about of at days of of our index and days break-even, low the break-even days break-even remains and distributions of Slide of details our at for per excluding day an are fourth with average operating and low, about Our of provide $XX,XXX available our quarter

with Our cash X,XXX open flow $X,XXX plus at break-even a index-linked low days with per flexibility provided and estimated day. potential

charter should Slide time cash one-year XX fourth Assuming our about be rate, for able of in generate to million XXXX. shows the flow liquidity. free we $XX.X quarter

of September have $XX.X the total with $XXX.X of total XX, we XXXX, of borrowings As million, cash million.

turn Mr. capitalization through no Partners’ growth of to who the the we and have is Stratos? this XXXX. of Navios maturities would CFO, debt CapEx. XX.X% committed will the to staggered Our debt-to-book results Stratos third and over Desypris, net call you I like quarter At point, take

Stratos Desypris

company's and unaudited morning, information for website. Angeliki, September review I slide on the the Thank months XX, and the financial the good presentation and in will press our quarter release third briefly results The financial in is available all. nine ended you, summarized included XXXX.

to Before I your attention items like that Slide financial listed highlights, one-off draw I certain our discussing would are XX. start in to

items of the slides. discussion simplicity, listed the below results financial For of the one-off in exclude the effect

Moving third The quarter quarter our shown XXXX for QX equivalent The XX% available for $XX.X the due rate the XXXX. by revenue financial increase results, decrease of million compared charter the in increased $XX.X to in to XXXX. to the in was mainly the as XXXX. was time days on XX, in to increase of million third $X achieved by Slide XX% mitigated million increase

to was for million to for of the for maintenance our of quarter the quarter compared for the third increased compared income of Adjusted improved EBITDA rate $XX million significantly was in million was quarter million. over third third quarter XXXX Our CapEx the XX%. quarter the Opening adjusted third net amounted XXXX the environment. EBITDA XXXX, and XXX% $X.X the however, $XX.X $X.X surplus utilization the Fleet $XX.X and of replacement amounted million. reflecting XXXX XXXX adjusted to quarter of by to reserve second

million the nine million compared in $X.X mainly due $XXX.X XX% decrease to was million time the $XXX.X The decreased nine decrease to loss month nine in same was in XX% fleet, for decrease our of months net due XXXX, $X $XX.X increase in to last to period operating the the in by and due in of year, $X.X to compared the XXXX. increased mainly days. million discussed XXXX. of million increase Moving in expenses above by partially equity revenues $XX.X vessel achieved the decrease time expenses. in $X.X earnings XXXX charter ended of charter our affiliated EBITDA amounted to companies, surplus the in of $XX.X million the available million months net Adjusted for nine decrease months of the nine months to XX, revenue This Operating and XXXX $XX.X increase nine million. in for amounted other Adjusted mitigated to to million, was September operations, months the million million. the the $X for XXXX equivalent

of I briefly amounted Cash million. data balance of key current deferred portion, XX, including as September XX, will equivalent Slide some and to was $XXX.X $XX.X million. fees, net sheet discuss to Turning XXXX. Long-term borrowings, the

as of the can have XXXX cost the dates can it per Currently, the nine in respective term first the significantly industry The as months days you with cost of our for XX contracted Currently in now our Executive pass fleet, we XX, rates contracted debt been XX, loan and controls Containers. Partners Vice reduction well XX.X% of interest of This containerships. the a the XXXX vessel. In LIBOR XXXX. has of Achniotis, XX.X% Navios to of and interest list section. expiration Business and finance XXXX, of has President rates. to the expense of at call ownership Navios see [Technical Slide available a George see Containers. year George? of charters. Development, Difficulty]. contracted the the I Our as resulted extend days in XX.X% reduced last a you decrease refinancing days B the Navios discuss result to for details index-linked including Slide expiration In of

George Achniotis

Thank July high close in at before started you, double with [indiscernible] Slide The in months softening turn to a QX X,XXX. August. Please nine quarterly QX of Stratos. the sterling with to quarter PPI in average a XX.

ore seasonality the last return PPI before high correcting at China the by as to led However October grain primarily Atlantic year-to-date weeks. few over and on X, iron reached XXXX, exports

which for continued approximately stimulus, China year positive XX% major the to according on will of at government global in only Chinese this requirement infrastructure back bulk of trade, XXXX. dry the accounts IMF economy, the further X.X% growth of growth the X.X% expected be particularly spending. However, aimed grow with to at

The IMF be X.X% place put to by fiscal economies. affected the X.X% unprecedented pandemic, of global in the led With by for GDP in X.X% globe and got is Governments XXXX advanced contraction of forecast projected the monetary contractually emergency XXXX growth continuing entire in of light bulk these support of GDP to plans dry economies. growth and XXXX. the of a projects global the in for XXXX. trade IMF X.X% contraction X.X% In updated

graph to is by of shows Turning XXXX. to major is the increase This is The demand iron three and Slide cargoes ore, to by expected the for led that ore, for coal forecast XXXX [Technical XX. outpace dry on left grain iron which bulk Difficulty]. grow

X.X% expected the to If the X.X% forecast on and years you record. growth to order over look year Net is is is only this at the the book be remain net for few right, graph on fleet the as XXXX. next growth fleet lowest low

Chinese With The to are trade steel about million XXXX expected expected July coming one with and QX, fiscal the should iron to the XX. at shipments spending as going have production, China reduced million mills are set in Slide price QX up turn tons, ore June Chinese Brazil support records. by September for steel iron iron production imports tons vessels. their Chinese to XXXX. from and XXXX. second ore stimulus levels to increase and by supplies Turning match and Despise steel continues October in about million the in in availability mills between additional of replenished tons imports at iron highest infrastructure Australia XXX [indiscernible] ore driving imports for steel Capesize XX forward. X.X% of demand in pandemic, ore to drive XXX China new

XX. Slide pandemic price significant to resulted The and has coal of trade. the the gas the oil and in drop Moving of in combination reduced

on coal been to the Asian in has discussed slide. increase added XXXX decrease seaborne expected increased XX% on of demand reduction trade account This by pressure which XXXX. which X.X%, by world by partially in grains smaller-sized the X.X% are for has over offset vessels, imports, the following but for

since XX. further continues worldwide increase to increasing growing CAGR by Asian demand Worldwide issues has grain ever Asian grain to support the imports by been approximately Slide as pandemic, X.X% population, product global and in world trade. as X.X% by increasing XXXX. the food driven security An a focused by grain to Turning in XXXX, X% XXXX, mainly are driven trade Overall, demand. well

pandemic The of the causing book of record stands for With disruptions, shipments crop order only at year. Please X.X% Council in projects International report. current the our trade wheat, grain Grain Slide disruptions XXXX and minimal turn corn soybean the the is lowest the which fleet, XX. to

is contracting Newbuilding collapsed, compared XX% has about XXXX. year-to-date down and to by

scrapping this accelerate the being low is about fleet X.X% book front-loaded Vale order year, the With at phaseout in and net to remain VLOCs, X.X% expected only in XXXX. growth to expected to and XXXX,

Turning the than Scrapping, fleet. the should the over of to around and availability activity due pandemic order provide and Angeliki? higher along XXXX, which to positive in comments. mentioned fleet, million restart years effort the about navigate the with tons to would This amount this presentation. for total book. world, change XX X.X% challenges, the XX. call of favorably credit combination pandemic of of age to to a demand at XX.X almost with my now turn logistical of full year compares its dry about mainly the slowly like to the the which now is stands due it's conclusion, over X.X% to bulk And In concludes Vessels market continuing year-to-date. economic crew the Angeliki are previously and the started through support I fundamentals, XX% Slide lockdown storm. reduced low final

Angeliki Frangou

call our presentation. completes We This George. you, for open questions. Thank the formal

Operator

line with Wetherbee Chris [Operator comes first Instructions] from the of Your question Citi.

Chris Wetherbee

of in difficult level we've uncertainty so guess, a that left for off Yes. of well. wanted we the we're lowest get you're over thanks Hey, book. the understanding that orders the the at X% extraordinarily to a by. on this of question see I kind guess where book order you the how And guys. playing for It seen, start world out, seemed maybe taking better hope to record order come on fleet. I have I I George just the been with to

go order of you any dry kind the number one? number guess growth how for What look of XXXX, you would fleet the then bulk there of And XXXX, I if into expect fleet book, If terms plan do in the two. out? you what like see in replenishment you maybe is this

Angeliki Frangou

think I – Chris, Angeliki. this is

about increase think time. most that the very our in, of remain things these is are that in a the difference – one and have not Difficulty] [Technical we And then that makes the basically start one kinds movement. like overall having because haven’t books something order – books. of will Difficulty] the X.X% the where the uncertainty long almost optimistic to we time a the have [Technical that but some condition reason of reward. of so periods mean uncertainties, we [Technical for I seen basically very you optimistic have we the this orders having an But for is of I comes because us so – is technological because around we date a a seen Difficulty] technological for laws

So I why is – you’ll that’s and this positive think not [indiscernible]. the see that,

Chris Wetherbee

mean in terms we’re – X% XXXX. I I fleet of you expansion debenture, guess, dealing think in Okay. you had if And if plus had I

lower You’d expect is XXXX? guess to be that number in my

Stratos Desypris

XXXX, reach it we further to X%. expect it

Chris Wetherbee

circle be that. bit over XXXX, Appreciate wanted $XXX back into is on about is I a and plan a I more to how go sort a helpful. little talk detail the Can debt for bit you to sort addressed? that That’s in And maturities Okay. what I that million. going of guess, of then think little to

Angeliki Frangou

are are I might refinancing XX% entire large [indiscernible]. there, this a low around presized bit, – very little basically of the is Stratos. But transactions. financeable below coverage them leverage they is easily initiatives two inline all are picture – But but of and very the

Stratos Desypris

the of mean, mentioned. and vessels. to three service almost to covering financing one, account, and add we the vessels Just of third This the two elements one is in I reserved. was this Angeliki by them Two XX% has that litigation the need refinancing them [indiscernible]. five but some below to of first facility. covered amount facility These scrubbed what into facilities whole times are take two five have includes are the was alone almost of entirely the additional the you

the when So we feel profitable increased. refinancing

Chris Wetherbee

Okay.

it. for helpful. appreciate very the Thanks I That's Okay. much time.

Operator

with Your next question comes Jefferies. from the line of Randy Giveans

Chris Robertson

Hi, our call. on for taking you, Angeliki? Chris are for this Randy. Robertson is How Thanks

Angeliki Frangou

Good morning, are how you doing?

Chris Robertson

Good, good.

– just So distribution I cut. guess, on the the our first question on

markets you NAV a guess and now distribution ship at I How And increasing about that repurchases improved. So that discount forward? moment? as balance drybulk to trading will pretty unit you are with thinking container you're at how the the have the going big

Angeliki Frangou

you posture. see have good and the but have Like because alive because [indiscernible] a during was break-even, have – that, mean, are of doing to we conservative This mean, is I we supply debt, basically low today to as posture, flow conservative cash strong are we're we mean, we food see, we to the security have see what we I ready I be sector, we have pandemic we demand low get be have generating. of economy. And net that that positive to

those increase While to have of returns dividend normalized good is With to we posture. is that the current a other ways conservative this the uncertainty on is vessels, buybacks, do in that year. with more in have conditions time is more anticipated developing something protecting

Chris Robertson

at the to kind decision light units? buy NAV drove vessels I to in around the maybe unit Okay. repurchasing in price the of the up of the of the instead what that moment, on vessels, some That's guess, decision then, now, to purchase following two fair. so discount

Angeliki Frangou

we we sure generate Different company make all, to flow. assets have that of cash a after the we portfolio and to have need assets the – and right

vessels XX as old. we that vessels well what simple built, are did So we Panamax, years as Capesize is and over old, two Japanese bought and years were very that six

inflation to an end process. That capacity ongoing having it of makes ongoing So our larger assets an the our the our are growth in is vessels, sense that to and of reflect part business, capacity that is portfolio. vessels ongoing is buying part

Chris Robertson

That's All right. you. Thank for it Yes. Thanks for the us. clarity.

Operator

I'd turn like over call you. to Thank now to Angeliki. back the

Angeliki Frangou

QX This Thank our you. concludes results.

Operator

Thank call. today's you. conference This concludes

You disconnect. may now

Navios Maritime Partners (NMM) 5 Nov 202020 Q3 Earnings call transcript