NMM - Earnings call transcript Q4 2021 | Navios Maritime Partners L.P.

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Operator

Thank you for joining us for Navios Maritime Partners Fourth Quarter and Full Year 2021 Earnings Conference Call. With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangou; Chief Operating Officer, Mr. Stratos Desypris; Chief Financial Officer, Ms. Eri Tsironi; and Executive Vice President of Business Development, Mr. Achniotis. George

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

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

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

that the statements assume Exchange are such current filings and update management obligation The are are as understood Forward-looking discussed cause Commission. set should historical today's call not Partners statements materially to of expectations risks the not Partners actual statements follows. in Such contained forward-looking The to differ risks forth this could more light from is are based in fully facts. Navios uncertainties, does subject any Navios Securities upon Partners beliefs which and conference herein the call. be and results Such in agenda and to for forward-looking the information Navios are with risks. of information statements.

remarks. will Frangou First, Ms. offer opening

Partners operational Next, Mr. will fleet provide a update overview. Desypris and Navios

to will call Next, take provide Then Mr. questions. an Navios an Achniotis give Ms. the Partners Tsironi will we'll lastly, industry of overview financial open results. overview. And

Angeliki? Angeliki the Now Frangou. Ms. turn call I CEO; Partners over Navios and to Chairwoman

Angeliki Frangou

XXXX. our today's quarter results and fourth I Daniella, for to Thank you, of with full us of good morning outstanding year and call. joining all am pleased you on the

adjusted to be $XXX.X company of And adjusted income to million, Partners In of million. shipping million, turn Slide adjusted revenue XXXX, net public based of of this leading Navios diversified EBITDA ship X. Partners than bulk, million X/X for of segments, in actions markets. the $XXX.X fleet companies tanker and Navios not QX, income of what of vessels, EBITDA make took $XXX.X a only the types XX could and across year $XXX.X During $XXX.X a of recorded but X we each Navios also Today, in adjusted on $XXX.X of is like About net end XXXX, and XX listed the recorded Please full our servicing more reimagined revenue one operates number publicly dry segments. million, vessel million. reality. U.S. is of Partners container

that XXX Navios entity. of presents this We more of believe vessels offers of resilient and X new a a will an Partners Slide fleet average has discuss XX.X%. data. loan-to-value segment recent why stronger, years age we structure some X.X

volatile. themselves where purchases three, opportunities asset Ultimately, opportunity from strong attractive in balance policy index countercyclicality through redeploying in built in upside or contracted the capital the allowing of we underperforming which have Fundamentally, $X.X X segments building. believe charter we million our allows Slide diversified in for provided into from Of to the to term charters basic term. segments the segments underperforming platform. chartered $X.X exist. allow two, acquisition the XX,XXX Number market available and have exposed optimize summarizes compulsion. for market, managing the expect to rates. the segments billion be of believe short rates. segments this a flow container benefit sheet of near vessels This be luxury some days, revenue, can our we attractive we optimal bulk that chartering this a in dry almost We while one, chartered the performing at that sector. are can consider half in is our behind diversified rates platform to offer tanker strategy. that of Number the any approximately recovering Number means returns, Diversification values creates cash long-term This allows asset allocation. without us principles strength which

significant have past. and We through depreciation asset values of seen the container recently the in a significant in sector lived have appreciation

impact this low or believe and muted. diversifying to balance from Leverage remain the if the continue. will asset sheet volatility sheet be other of strength balance we of overall rates segments. expect the resiliency segment creates in business will asset assets. We independently Together, diversity model. can cooperate, impact our value the will asset a base, our mitigate generating by values Consequently, volatility that from diversification the be Each this works

perfectly, latitude to work structure this reduce because allow to market the opportunity will volatilities it While stable. is efficiently don't more to we inherently leverage we think that the expect us overall

Slide have how we flexibility will We down we X, and debt financial that net returns. optimize decision-making charter, finance and purchase as context. entity-level On and result in and into sell process drilled have more activities this our believe predictable should the is our we've We vessels obtain operational chartering. that we within

our see can top chart Container fixed long-term from historical another. where vessels. risk we to charter we benefit XXXX. their on segment, our enjoying these simply not with for credit XXX% market containership to independently a almost charters, that this Operating are and to In high our the XX-year segment in right, residual rates are Container charters averages. Bulk you As for have the Dry available fleet manage ensure on of of recovering risk rates. long-term We we backdrop, reduces This from the one opted days historically the is trading for risk fix our market

XXXX XX% fleet our to market give days available available exposed our of to XXXX fixed of any rates available to capture upside. and have Bulk We only for Dry base opted have XX%

our also Dry Bulk do to rates fleet Our fix chartering allow long-term when strategy on charters us improve.

rates Tankers, levels. average current Lastly, within XX% XX-year charter their below are

allow rates have to of fixed, charters. this some XXXX will us rates favorable We other see Tanker days anticipate that our market options. running fleet with XX.X% we We legacy many available consider on until healthier

made other recovers. will observe to of help but the are strength XX the the our will NMM our hedged will investment segments. fleet vessels. given that opportunity vessels X returns entering segment. the this details our acquire to use to Tanker can't have Of credit-worthy by recovery of It long-term gathering our awaiting Slide billion newbuilding for for acquisition, ships. of we patiently deliver luxury we expect through charters fleet of unique We capturing the generate that the We Container $X each investment market once in container XXXX. strong these approach market strength XX to financial into the

space. approximately VLCC prices were continuous vessels bulk Containership the we segment, million long-term below The revenue dry years $XXX averages. the one is acquired in current also XX in X,XXX fleet In of renew market in and about the profile Dry estimated and these $XXX for their age management These million. at earn vessels our We acquiring the engaged and routine containerships fleet of X.X TEU duration Tanker value Bulk contracted our by will for $XXX XX at charters. related million. our newbuilding Seven of containerships

to the also strength high executed second capitalized X the at half XXXX. containership million. completed XX-year-old in sale is on and $XXX We in historically vessels expected be The values values selling for of was by

half vessel as Bulk the to worth Navios Dry And our X on of were you $XXX was first XXXX prices. can million million approximately at Moving values ordered Partners, Fleet in challenged segment. newbuilding $XXX executed see, in date. attractive is when to investment expansion vessels

Lastly, anticipate Tanker charter market. in seeing for values the are segment, rate versus dichotomy asset recovering rates, a we values charter whereby a

provides intends Navios has Slide Partners Navios specific fact, X In to counter sheet balance out the lays appreciated sectors. our already asset how from newbuilding portfolio specific idiosyncrasies segments. diversified in stability VLCC XX%. volatility existing vessel of Partners'

can see at currently Partners Navios slide, $X.X billion. you in from the aggregate on As is approximately the chart valued fleet

This historical balances of only at variation segment our through XX% XX, to a Navios are on vessel their XXXX. high, values result value about loan of a Bulk high, all-time are are and in containership asset values their Partners in XX.X% diversified XX% for Tanker December Dry out and While all-time values values highs.

net NMM vessels. value $X.X As chart the equity Slide see you left, these developments. in X our also the can bottom about billion from recent has in to reviews

$XXX.X quarter, adjusted the in and million fourth million million $XXX.X adjusted During income. Partners in revenue, in $XXX.X Navios net EBITDA generated

of year EBITDA and revenue, P&L balance million net remains sheet million $XXX.X in income. adjusted Navios adjusted in $XXX.X strong. million in Partners The full $XXX.X Navios the For generated Partners is XXXX, healthy, and

for XX, and XXXX, our of has about cash As LPV maturity XXXX, have Leverage cash for approximate more December only will million $XXX profile. cash. about number a Consequently, as capital fleet $X that cash capital we hold our balance be fleet. vessel. will The commitment we I would million including the balance capital our vessels we an XX.X% working target in working a is size, December considerably current of Considering have XX, size and considerations, sheet per for than estimate debt new expect of balance. we of

rate an of expect our chartered and rate years $XXX average X,XXX As since X for million; expected the period X.X $XXX our newbuilding $XX,XXX X.X S&P per containerships XXXX, fourth new that per X to TEU we newbuildings second the to out at XXXX. X,XXX revenue out XXXX, X,XXX XX million containerships $XXX million, update million average secured million half of About update about deliveries activity. for our net agreed generate of in an the $XXX the acquire $XXX.X with for of in of for to average we TEU in to of XX-year-old $XX,XXX charters of with an long-term containerships X follows. containerships, quarter through day XXXX an expected closing containerships as $X,XXX day. to average a in An to chartering activity chartered net TEU an We years period for

to market. Navios Partners in We revenue. of had $X.X continue billion contracted take advantage robust

contracted XX,XXX slides. At for these XX,XXX forecasted to Desypris, of like $XX out exposed will our Stratos? available who market allowing exceeds turn rates, by potential Stratos the over revenue next cash Mr. XXXX, this are generation. days, point, flow million. to to the take through For days expenses significant almost Moreover, would already call I you of few

Stratos Desypris

and have Angeliki, Partners and XX,XXX by you, flow details XX.X%, good days, exposure. XX contracted operating all. free cash scale $XX,XXX differentiated Currently, about per Slide Navios sector is day. our an potential. net or significant of Thank we diversified rate at leading available average morning strong

vessels XX% available you see fleet for year where cash XX, our cash. and with comes revenue market million, days from our almost The that Partners. contracted can still have exceeds profile. provide Navios $XX additional total majority transformational bulk dry our Slide approximately fixed a days. we market For XXXX was we XX,XXX exposure On expenses exposure have XXXX, about can our will of of our by operating

operating. More XXX% our Our we dry presence expanding XXX%. segments the and by XX% containerships we increased increased already our and specifically, by new capacity fleet our by entering were fleet in segments bulk by into

Additionally, we XX-vessel segment entered a fleet. into acquiring tanker by the Tanker

its We some our balancing have renewing XX% The fleet XXXX, active the be required reduced also of renewal while our by very We'd to have reducing been by and dry Since capture containerships we fleet process allocating capital. proactive average age. average like cyclical bulk our and efforts. XX%. age and in opportunities,

XX see you at over the the have XXXX. newbuilding vessels the have we XXXX of are vessels that years can third XX of quarter through delivered be As bottom to while, from same at the time, slide, age, XX of we

XX. Slide to Turning

see can You recent some updates.

X More to specifically, our revenue. XX fixed in have vessels, containerships containerships, we approximately net about $XXX purchase acquired price of for contracted million $XXX secure day, revenue. an XXXX contracted creating with for continue million These over employment $XXX.X $XX,XXX rate per long-term and X million. for delivering in have of were contracted we newbuilding an of average vessels years aggregate generating We

to generating have million. also rates periods $XXX X contracted a of vessels. and containerships years, charters approximately the X.X represent for increase our X.Xx compared These revenues these chartered of We current X between

XXXX. front, by and executed On expected prices in the of is of the strength we by TEU XX-year-old for was high half completed on X,XXX at S&P selling million. be second to the The historically containerships sale values X capitalized the containership $XXX

We XXXX Panamax $XX completed sale of a million. the vessel have also for

on maturities. extending We and refinancing working constantly are

our ESG financing, principles. linked completed have to We second demonstrating our sustainability commitment our

revenue. the for contracted X with call containerships, in XXXX of revenue contract our XXXX our of charters in counterparties. we're refinancing be our end advanced On $X.X billion the facilities. of XX% and contracted financial discussions XXXX. XX% a Tsironi, About billion Additionally, from our CFO, new with quality through can $X.X Slide XX, of diverse will million group Eri? through our or you for to $XX now will the Eri you extending highlights. revenue existing comes who pass breakdown I take see a facility the for

Eri Tsironi

the morning, financial previous available the NMM all. by And is summarized that days L.P. and to Stratos, financial XX% also merger on results The and release XX, results Navios briefly year on unaudited comparable results these presentation Navios August XX, slide highlight to October available for increased the in on included compared obtaining the and to companies Upon would statement Containers its XX, Acquisition. Navios Corporation March review X ended in our information Navios quarter XXXX, Navios Partners XXXX, of you, Partners for full XXXX, XXXX. of I with operation the I XXXX. of company's the will completion Maritime On completed XX,XXX is December and good XXXX are and Thank Acquisition are Maritime consolidated the to not in control merger of year. press its included of the in XXXX, acquired website. companies XX,XXX with XX, like operations. fourth

to the the of on $XXX.X the last XXXX to our Total same due available of the days XX,XXX Moving by was million period expansion fleet XX. containers increased the equivalent quarter fourth compared improved to to for $XX.X earnings period revenue both same time in to for XXXX. million for highlights the X,XXX XXXX The year Slide charter QX bulkers. rates for and and in XXX.X% compared days

to The X in the EBITDA vessel sale $XX,XXX average per equivalent merger. charter include the per per XXXX million cost per per XX.X% day. $XX,XXX to a sector related charter day; was: containers, period QX day; achieved a of XXXX. QX a relation and and for equivalent rate income tankers, and net day transaction by million by of $X.X same time time in XXXX $X.X NMA gain to Our bulkers, $XX,XXX $XX,XXX for day increased compared $XX,XXX

ending net to income million The in of items; was decrease increase were to income $XXX.X $XX.X a equity deferred partially earnings voyage Excluding increase loss to special compared amortization $XX.X these for terms. $XX.X expenses, $XXX.X in above compared lease and The partially in time fleet. above cost net a decrease $X.X million a adjusted favorable adjusted cost million million million in increase the capitalized a items, The and due period increase increase of interest. $X.X of was the income. of revenues adjusted a interest X-month expansion charter adjusted in XXXX, direct EBITDA and expenses; period EBITDA expense increase million to mitigated expenses; an voyage the due by increase increase $X.X depreciation in an increased million mainly increase of a deferred million $X.X dry to in the million in survey primarily in attributable $XXX.X approximately and increase XX, million a net amortization companies. other increase and million by for XXXX. other were in million expenses adjusted in the affiliated vessel our a $X.X X-month $XX.X Total finance vessel to other net general million and operating amortization period excluding and to million in time interest by in special mitigated $X.X in and million $X.X million was XXXX. charters survey and The net; EBITDA dock million $XX.X above increase $X.X same in December to increases ended due million dock a dry XX, expenses; in $X.X December cost The administrative $XXX.X expenses; the increase amounted primarily and amortization increase increase in in income; items; increase capitalized noncontrolling

time revenue Moving the fleet to reached to rates. charter combination improved was months in $XXX.X The million of XX the and XXXX the charter result XXXX. equivalent our Time period. compared a of $XXX.X million expansion

the period available per compared day equivalent time and was to net The transaction XXXX NMCI and earlier, $XX,XXX million gain cost a per an XXXX. average by gain of fleet $XX,XXX in equity million in charter of to day; Bulkers, Tankers, was: days per charter NMCI $XX.X of affiliated related income Acquisition to vessels; Containers, in XX%. $XX day our day; net of the our EBITDA utilization merger. and include completion Fleet relation in XX%, obtaining per earnings rate increased the XX.X% equivalent million same achieved a XXXX mentioned NMA by by to upon $XX,XXX control $XX,XXX approximately companies; of sector X $XX.X merger; a day. rate $XX,XXX for of while As million per $XX.X gain upon Navios sale time increased and bargain and

$XX.X $XX and voyage time direct million and expenses; dock deferred other equity million increase million time in in in loss income mitigated expenses; above and increased for million The affiliated expense; vessel the cost in as above terms voyage XXXX. $XX.X items and a by to XXXX $XXX.X survey increase $XX.X increase dry a special reached in decrease cost increase net primarily primarily million The charter mitigated net a whereas in $XXX.X Excluding basis, excluding the noncontrolling a $XX.X expenses; net in of attributable year net; these the adjusted the a interest. and on $X.X million million million expenses, to income. compared million increase $XXX.X it million The due in in expenses items. other expenses to was December in companies. adjusted general million and increase increase due XX, Net million adjusted to a adjusted were items, a expense of $XXX.X increase million and of by in $X in EBITDA XX, and in dry million vessel increase earnings a million in to partially $XX.X in and increase increase $X.X The The charter above ended amortization ended adjusted million increases in compared capitalized and a special increase by $X.X exceeded a operating cost EBITDA; a survey capitalized increase depreciation EBITDA administrative in $XX.X net; increase of million in partially $XX.X interest in other December to lease expansion XXXX. XXXX amortization $X.X income year increase million for interest amortization an dock was amortization due billion an to $X.X $XXX.X was mainly million were increase XXXX; recorded $XXX.X expenses fleet. and in and in finance deferred our net; favorable increase

Turning I some sheet data. XX. to key briefly will Slide discuss balance

of As billion. deferred of XXXX, were portion, sheet current book including December amounted cash strength. debt balance Long-term and was at capitalization of to fees XX, borrowings, million. XX%. our to highlights net XX equivalents comfortable the Slide cash $XXX the $X.XX Net level

is X.Xx debt covered available our value fleet valuations. of based publicly by Our on the

million completion staggered while mentioned in debt Following we earlier, in value of the facility with new maturity significant the is profile year. $XX XXXX, will any no single maturities have current due our minimal

XX. Slide Turning to

transportation, zero means and In to emissions is in whose are to values have regulations initiatives. full be aiming diversity, You have carbon is one first Navios most shipping efficient safety. the the core socially can mode is this of the see a by to up advance, of adopting include achieve X group process, we and fleets our XXXX. years as pioneering conscious We most inclusion to aspire compliance. environmentally transport. been it of ESG Maritime friendly certain environmental

and governance have ethics. We code of corporate a clear very strong

and U.S. details Directors is committees listed and independent Partners Independent Board of XX companies management our publicly companies. majority composed largest that company Our -- our operations. oversee Navios is one highlights. Slide by the shipping

resiliency and mitigate individual to segment strategy volatility. diversification creates Our enables us

the an financial call to Business global to section. indices of take attractive investment the Executive Our discuss Vice as platform diversification, now we pass advantage Development, President George? make George scale should NMM trade and I patterns. Achniotis, strength of

George Achniotis

a expected the Please X.X% of IMF global The review Thank a you, growth projects and XXXX, trade bulk in bulk inefficiencies in Asia. half peaked due X, market expansion highs back XXXX, Chinese XXXX. continued dry for bulk and projected most by dry The BDI of developing then classes coal to strong is XX winter turn steel asset all Eri. for increase the of falling by The India China, the XXXX, to the reflecting retreated since increase to at The to led on XXXX second below the limits last XX months. October back demand time at the commodities, of for pandemic. the is in surprising year, to at temporary and industry. for of production XX-year happen GDP Slide X.X% by the start on ban highest Indonesia fleet Rates aided first the retreat exports. reached to level Similar the in on X%. X,XXX in BDI X,XXX year.

and the efforts by to the grain commencement economy American the provide recent market increased up steel production, government the season, with the along export South However, should there. of stimulate expectation of Chinese

and stimulus the Turning economies fueled major XX. demand bulk for to protection advanced the Slide increasing industrial measures in have cargoes. X Post-pandemic

inflate. stated coal-fired in increase the to X.X% carbon of in to have as imports surge switch of half coal restrictions power exceeded grow with in in goals by 'XX prices power spite ore plants seaborne first In continue. X.X% pattern generation. pricing the Accordingly, are August the to expected has expected 'XX, trend same production. price expected and is increase as iron Chinese Gas to gas with driven by imports seasonal neutrality, the an allow is iron XXXX, ore back half, increasing coal second seaborne steel XXXX, to reduced trade Specifically, pollution over X.X% since

expected to first by 'XX the grow X.X% demand half second half. over coal The is

focusing In freight record concluding tonnage the our XX, dry of bottlenecks. part growth supply logistical bulk the XXXX, owners sector U.S. force. remove come newbuilding further order production a rates. Slide protein by X% grain increasing will about At to by for by by well and Please view, XXXX chain the XX. combined USDA. strong us demand trade XXXX record demand be both to supported a of since rules that 'XX XXXX are contracts is are continues continued the according in to X%. for Net year record. grain grain the the growing book issues of the and trade side, in On trade pace age historically driven container the into trade which Global turn at goods Whole low decline uneconomic industry. rates. to the near the pandemic the of driven to with about in the lowest slowing of Slide world container will start at rise on CAGR has for will favorably food been and IMO XX Europe high reach or lock ever-increasing be increasing levels, XXXX, at X.X% only global security of current crop with of for as XXXX, grain COX to worldwide. an as total expected stands healthier is X.X% rates a mainly Asian fleet natural The continue fleet, Demand deliveries long-term COVID-related growth support order demand. one the in resources, allowing latter fleet, as years Vessels Fleet turn compares book. over as at Please on historically XXXX, to disruptions expected population,

port on in containership the in lower led in expected right, box XXXX. increases As further the of restocking growth with for to see and blue X.X% the demand XXXX, of growth X.X% in congestion can you goods, demand

increase X.X% to XXXX. the Net for order larger. managed be orders, XX,XXX expected It is outpace book growth. about of for XX. that newbuilding to vessels growth is with should forecast Slide the to fleet Turning TEU or we fleet be Even XX% net noted in

chain In along resulting fleet with the age mainly the Slide and years demand pandemic or support containerized addition, bottlenecks, In to patterns of to turn consumer purchasing oil continue industry to is recovering, XX of tanker the with older. continued change reduced due to in review should XXXX. XX.X% the due fleet the although the fundamentals XX shipping conclusion, for Please is Global supply industry. in positive availability, growth modest of consumption disruptions. now currently a

IEA as OPEC+ recovery continues barrels spares when fuel per by growth, is to and The of demand industry an are transportation. X/X XX% projects additional oil levels on QX midyear a GDP seaborne consumption. in the day supply However, to related with global travel increase exceed production monthly XXX,XXX by paid 'XX, world to pre-pandemic oil until demand cuts eliminated. approximate There of correlation is oil product about basis

fleet. order Turning Slide light total XXXX. age fleet, the COX to of for long-lived to owners' This XX. projected XX book technology only of of are Vessels the over to compares X.X% expensive uncertainty at with be favorably fleet attributable only assets VLCC is hesitancy the order is growth restrictions. can net which decline macroeconomic book. partially years X.X% upcoming order in The concerns due engine current to of and low XX.X%

fleet, tanker The as only is challenged older. the management book for product that Finally, tanker and lead XXXX. continues order retirements XX. Product tanker to growth at current believe fleet, well net remain book IMO compares of balanced X.X% of the lowest it tanker XX order turn is favorably with the one which years record, X.X% on is to fleet Slide X.X% of the will projected the the to vessel market and the QX. fleet coming the XXXX months. or age In in in ballast some and concluding, of are regulations overall We water

by like should now over and earnings their to book concludes provide presentation. call below X-year in to returning of OECD midyear, comments. oil decades global tanker production, for average turn returning to OPEC+ for pre-pandemic Angeliki the the healthy her the in final However, near would lowest combination term. This levels increasing inventories order demand I the Angeliki? my X

Angeliki Frangou

Thank George. open you, call and This completes formal to we'll presentation, the the questions.

Operator

take Jefferies. of first our question from Randy We'll Giveans Instructions] [Operator

Randy Giveans

market. S&P of fairly buyer active a as do do seller container here how balance and And So ones? new a the assets bulk your selling you tanker How some you've older dry and buying and been both you view fleets? in those

Angeliki Frangou

flows that newbuilding cash This X- the and risk flows be Very as and is a X Randy. residual assets cash of first we good creating quarter cash have the container and total advantage that about the company, of is also vessels, having will take basically value acquiring, We billion. did bring creating and question, that -- -- we are also -- X-year seen we is young hedging, sector, over buying value. took this what flows a creating $X.X you diversified

nice look dry you we market and have will a the very we on recover. that the at are looking fleet, now bulk, If

So that on low, see market the seasonally market of year. XX% we we have can the remaining be QX the strong is on but exposure.

other million So container have. very really, the market a big we covered And if returns on the our we have of year, the jewel to because And spot the fleet is -- expenses, because and last cash we kind create have tanker the can sector we we luxury see side have $XX all contracted of our have the returns, it that fleet we positive. get like can strong in flows. really

can NMA during fleet generate, years, that of seen have good kind $XXX times, EBITDA. over million We of in this

an additional be So can that swing.

of can is the enjoy where Of a situation tanker seen course, now, jewel. are that, can tanker the also recovery. we the pushed Omicron in we have segments say kind both that And we and therefore, we happened and a that event

big our which all driving price. it's is drive the NAV, about stock will issue. So That

Randy Giveans

massive. Your All sense. That closer is could next. year $XXX exceed, it. the I million, Got to question, guess, most right? be million, don't know, And is this revenue going to important $XXX both I now right. EBITDA backlog and makes

annual $X is However, about of distribution million that, right, current X% your on an basis.

So an to to $XX, NAV should as is we the when then $XX. expect see closer increase mentioned, accretion, right? you distribution? Your north of NAV And to secondly, probably

are trading However, at your shares $XX.

not why at So units these levels? repurchase

Angeliki Frangou

take the stock of busy companies, but has we us at are stock our best is Listen, we of of price market, And NAV also which been year. the are last and NAV. price, other performing the seen busy from is creating the the -- product total you creating year, this you if -- have NAV, a have our product last our doing activities, peers. unlike not we And returns only

advantage this that did the segments. and histories. the flows, we take segment, build is cash of is sold attractive important process, bought where to vessels So different advantage we What it's Container an and ongoing take we we rates at

are not we So that. on shy

and we So price see investment flows. our this not it's return. It's working we about the about not cash follow. about that, is CapEx, cash growth. our we If sufficient flow of have stock growth for And is have have about of we as vessels. capital, growth stated, to with creating It number

of this in see -- follow will will cannot attractive different So -- buying in we we -- follow way, with if a we course, of in back. see we strategy

have we So or more a of fleet less. XXX vessels,

working a need $X of, per You million say, let's capital vessel.

cash are we of already attractive seeing And returns. have our slides. we you and that which a flows We lot investment also CapEx, in seen have create

seen our it newbuilding. You have from

You in seen how that actual translates to cash flows. have

is what are this we So doing.

Operator

Nokta from Securities. of Clarkson next our take question Omar We'll

Omar Nokta

to about Yes. wanted where ask recently. you've been I fairly just here active

recall, mentioned correct? order just confirm container XX report, if In quarterly also ships, check. that X,XXX contracted. and to the off, last your On up those is for as that, of you chartered. Is fully to first want just fully newbuilding your order I now today ships side, the TEUs to are book to having I X that taken want double

Angeliki Frangou

that, totally last the thinking to managed in not possible remember call, -- we it was be I very that would But rates I with risk. -- that better have no was with and to I be and residual position extend. even And zero managed residual that at options Omar. not value exercise, thinking Yes, hedge -- managed to had to we we will we

you So have yes, we a industry. the average have gives seen, which fleet, naturally fleet, issue of an ability average which have really, if fleet replace our have managed XX reduce the versus very age. also important on, age we that a is And to looking now the to us vessel

Omar Nokta

on end mean, definitely of the generally, order to contract. where on risk in this that done a Are at And appetite unique these you're the from maybe, maybe the it Are basically point Can in market against you seeing charters you've in vessel that, size? maybe is one I Right. that on, opportunities vessels and Any terms newbuildings front? for is remove on opportunity the that? just you an quieted here of say, Or report some newbuilding Yes. residual the there larger in overall? today the liners as further long-term give just can big is you long-term what here and the for are you quite really Because highlighted maybe recently, still today. now Or active charters midsized on available front? again some last as newbuildings kind there seems but ships. numbers? that could of class the the of XXXXs? give still have slowed just your you've now large a against us fixated what's give kind market liners Is appetite, securing color? year there today, to like color color your bigger That looking on just they were maybe still chartering on for focus for

Angeliki Frangou

will I liner. be never and needs never can different on quarter, is opportunities, learned there I always say as the last there Listen, because,

half. because have $XXX -- the vessels in the that with did, million they We that we also of this the we have delivering we'll seen for the be second the that as this mean, water have as in historic vessels sale we I seen -- is things liner want seen XX-year-old possible, the part

to So segments. as liners the play want basically, That secure will different soon possible. the -- vessels in and alliances as

of ones want to others the other charters. ownership have want vessels, The

models strength. And different depending on is So the there liners. a

say have that one we very ease Of less But to kind that course, this one have opportunities. the of and. going pandemic should at At of will we it's point, point, it seems strong.

value have in quarter. last with in than about we market think of the sold, that a the -- XXXX cap cap -- that in the X last year QX vessels more we Just market the

of what you a water. think kind think of less in issue. So there's will see be I now, that the powerful newbuildings situation an I can more the But Right vessels be.

Omar Nokta

speaks just shipping Navios' to public with the strategy. Okay. of case at the follow-up just diversification company, maybe reimagined a And maybe in kind least and

with in of capital that X,XXX your million, be think think about ships should of that Speaking and moment a starts will you the But you where on and kind new capital invest sales opening question. want capital? you about taking opportunity replace -- in sold, on TEU the there? see I the environment to Does into advantage at Is redeployed? of that depressed in future side, older comments, think second think, you've that the touched $XXX where Randy's as cash? as response the where come put we to and I the that of you builds, maybe half. that excess right now, do that that you the to tankers How cash to know roll you

Angeliki Frangou

you the think I I for every the opportunity. do the it and that issue segment. on market is on is I'll Container sector. that again diversification the tell that take, beauty This depends want start One the is newbuildings to can of on example, you in the thing

prudent. the will on business. extremely not is Container are a is, all-time to an where seen there speculative the speculative will I the take is, think I an vessels you -- where take we We in be sector mean, not because on order risky -- not market it's a have That high.

cash tankers, can secure or upside -- Now you can can you the overall always or it's where have valuation the it the purely It's Xx opportunity. beauty and the the do return. about either we have give the about -- either or is and bulk that flows where dry and

is this to like what So we do.

Operator

to And we'll move Citigroup. of next Chris Wetherbee

Eli Winski

to Maybe containership for the Winski Eli on on the we sales side. Chris. back is This can just go

years over of containerships XX.X% the XX So old. are

them, sold about of guys You old. XX years just X

you Just then for of the off if containership and, into curious further sales of fuel would have that, regulation. strategy sales more if going appetite there efficiency any guys play in help

Angeliki Frangou

Listen, I we strong segment, new takes is an performance are the opportunity sector. these say not have the Navios will a What and vessels segment. exiting of on that the

what with that that's care doing we to a that we decision exactly a the vessel of work will of make charter cash at us are our We a we or how will sell It's in the we is And counterparty cover That rate positions future. consideration we return. is further credit portfolio. better it are flows taking either workings and or, say, constantly. give about a

is you getting are generation, on this doing? what We newbuildings, -- are can So and vessels. -- see we I we mean of course, doing, are it our efficient fuel what and younger

this us, for is situation. win-win So a

less it this dispose it's point. to is the younger that And able vessels, are vessels, at situation. you win-win an do trying all to If basically, a process. And of any are to ongoing green you

vessels If to on are while you XX have to our vessel look presentations, close the that newbuildings, we very XX XX the years. are

we ongoing So process that will this is an be doing.

Eli Winski

That makes just And about congestion. I to then sense. need ask

top it but about just the the digging guys call, talked You of in. at

to Coast that something On downwards? coast. is over Asia Asia transit be right reached have of that else from inflection an downwards move not in Or ships we've West to from there off on thinking we're we U.S., seems the U.S.? seen the could you now the relatively Ships steady. think Do side

Angeliki Frangou

that Omicron, of And think of experts -- Wall get that I everyone's that. the give will the of being I general frontline Journal, there and vessel. think sure shipping is means to think unique lot I that flows information mind. these worse it a you And in congestion, all when Street I'm you it's I have on can

around with planet that you the sick I if we period the about, to think think Spanish the of level, flu. than January, in in from and an outbreak have have important see Omicron more a we the people macro have issue that we

So process. whole the basically, that delayed

to is issues that that that to right the products other from services. So containers -- now, see. we market playing from consumption and something strong services geopolitical the we except, into have see of of definitely is the a continue will delayed That course, change

Operator

conclude to our today. any does to return for this Angeliki the call be question-and-answer for happy I'd concluding And remarks. session

Angeliki Frangou

Thank you. QX This you. our Thank results. completes

Operator

This our today. for does conclude conference

disconnect great may your You day. lines. a everyone, And have

Navios Maritime Partners (NMM) 18 Feb 222021 Q4 Earnings call transcript