NMM - Earnings call transcript Q1 2024 | Navios Maritime Partners L.P.

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Operator

Thank you for joining us for Navios Maritime Partners First Quarter 2024 Earnings Conference Call. With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangou; Chief Operating Officer, Mr. Efstratios Desypris; and Chief Financial Officer, Mr. Erifili Tsironi; and Vice Chairman, Mr. Petrone. Ted

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

The remarks. as Ms. follows: agenda will offer today's for call Frangou is opening First,

will of segment Navios an Mr. data. give Partners' Next, Desypris overview

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

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

Angeliki Frangou

with am Good us results all I today's pleased the the to first morning of joining of you for call. quarter XXXX. on

revenue common was income $XX.X per of we unit quarter, net reported million. the $XXX.X of and million For $X.XX. Earnings

seen East, through This regional the reduction XXXX, of transportation. in Sea in first be the the and Canal. Red the affect to [indiscernible] Suez material Middle In the in can continue particularly quarter conflicts,

generally In With rebounding addition, softness. Europe a healthy. are inflationary economies and U.S. period managing of the after are pressures European and

and this Partners' other result was ever. strongest As financial quarter factors, performance these Navios a of first

inflation. can environment robust a clear comfort-driven the change as suffers inefficiencies, factors many of maritime remain driving and of cautious, [indiscernible] wave quickly, We from this economic [indiscernible] further

we modernizing on can fleet. usual, our focusing reducing to execute on leverage strategic and that we our continue by initiatives As energy efficient control, such as things

I are would long-term exceeding available, or continue where long-term to take we covers rates around also as note averages. that

we example, X.X years, rate at almost recently chartered vessel capsize For of years, for net out a the X $XX,XXX. daily

Please publicly-listed shipping diversified in turn is X leading asset to XX classes X. Navios Slide a Partners sectors. in company,

sheet. have We balance of in $XXX.X million cash our

sales quarter was vessels, which $XX.X sales, the in here proceeds, first sold of XXXX. X completed sale gross For today, of million second completed of million $XX.X generating XXXX. million we sales of in $X.X of the quarter be will

million X vessels. For we acquired scrubber-fitted acquiring X tankers for acquisitions, new $XXX.X spent year-to-date, $XXX.X buildings, million. We aframax/LRX

We also acquired build X chartered-in million. kamsarmaxes, for $XXX.X previously Japanese

Two per X previously of rate years net of announced X.X XX,XXX years. sets at aframax/LRX X,XXX X took net fixed one TEU is As for vessels we with deliveries, XX,XXX and for an per for tanker fixed day container are delivery employment. newbuilding an for average day

contract We continue backlog. to to a add

added This revenue. quarter, million $XXX.X we contracted in

strong. remains potential flow cash operating Our

of XXXX, days. in while months $XX.X or ] we X estimate last have of contracted index revenue the open cash For excess to million XX,XXX [ having cost,

selected we terms our this feel in Slide slide, On metrics execution provide to overview important. Turn an X. of are of we

XXXX, size sales you other out. remains effectively was with and today of each as the same [indiscernible] As see, purchases our can year-end the it all fleet in

latest vessels with same. Not fleet the of remains accidentally, technology, the maintaining development our energy patiently technologies. about fleet maximize await by the ] we while [ [indiscernible] efficiency carbon-neutral of age a [indiscernible] We

fleet by XXXX. our the the value end see of can about you XX% the In of value, from steel addition, vessel from has improved as

most. the also about performed $X.X well, strength values is contract the overall note has today the of do which not billion. market, that the consideration our Given segment each backlog, any increasing the to would segment I reason containership pay [indiscernible]

our With Since the first quarter a have and balance fleet, stable of $XXX performing year-end EBITDA XX% is are X% quarter XXXX. up first by fleet to and XXXX XXXX, of our million. metrics strong over adjusted we XX% increased over cash the and

leverage improvement range Our are is of our current net XX%. over of path XX%, net Therefore, points XXX basis XXXX. XX%, leverage to [indiscernible] we an year-end target

I'll over Efstratios Desypris, Chief Efstratios? Officer. Navios to now Mr. presentation the turn Partners' Operating

Efstratios Desypris

X, all. details for morning, potential operating Slide our Thank cash remaining XXXX. Please turn you, the X Angeliki, flow free which and of good to months

rate XX,XXX linked our base days $XX.X contracted also an This available potential and open that revenue day. free per million, cash We at exit remaining index total by provide we flow. could of cash have have of additional net core XX% XX,XXX average fixed expense

right own type, our side analysis. the of slide, we you vessel perform available your sensitivity On XX,XXX by can the provide so days

turn However, whatever XX. cash months to number XXXX. Please used, for we develop X the of should flow Slide remaining substantial

maintain new so renewing young part [indiscernible] vessel we carbon of We reduce and strategy our modernizing technologies [indiscernible] a is benefiting the that fleet, It with are from always by our fleet our to profile. footprint characteristics.

$XX,XXX million. at delivery vessels had delivered one vessel, The charter aframax contracted per which out chartered three containerships, per vessels, of X,XXX two out [indiscernible] of for $XX,XXX has at day X.X average an day. $XXX years and daily X rate of net both net been we XXXX, an net amounts approximately revenue years LRX for of average During three

deliveries, in $X.X XX through billion newbuilding remaining Following fleet investment delivering vessels, XXXX. have [indiscernible] the we

we X vessels of with In price be million. acquisition to containerships, $XXX have a delivered, total approximately

charters, creditworthy the average billion over duration. X.X-year [indiscernible] mitigated in We $X.X have charter long-term revenue a generating about with

a years, space, for an chartered for We about $XXX XX acquired these XX of X $X.X of In vessels price million. vessels, out the billion. period total revenues of average of tanker we approximately generating

presumption have total the price on opportunistically years $XXX.X exercised $XX.X older comes of replacing for an million. vessels same been for [indiscernible] time, years an four of a million. also XX.X In age vessels. of age we have with the X.X average with We XXXX, sold we for At average

Moving to XX. Slide

revenue. We continue XXX container Approximately from In comes secure million and employment XXXX, our our bulk comes fleet, additional ships X XX to from our created XX.X million million fleet. fleet. from long-term have about dry contracted about we million for tanker XXX

billion. to Our $X.X to to relates total fleet, billion X.X dry our tanker billion and billion contracted containerships. related revenue relates $X.X fleet $X.X amounts to our bulk our

be Charters of X.X the About ], expected of are through years. in revenue XXXX next counterparts. [indiscernible] is our group [ a quality extended with XX% to diverse contracted

pass to I'll CFO, highlights. which call Erifili? the Tsironi, our financial now take the through Erifili you will

Erifili Tsironi

results first quarter morning information basically the included of will good the and and I audited The in company's available financial review in XXXX. Efstratios, you, presentation Thank all. on financial website. press is the slide release on the our for summarized

highlights the in XX. decreased XXXX Available quarter first XX,XXX Total earnings the million same to increased Moving the XXXX. compared to $XXX year. X% $XXX Slide revenue the days by to quarter period last to for by for million to same on XX,XXX of X% for compared days

equivalent fleet compared by in X% for rates combined to period day time XX,XXX increased Our per XX,XXX XXXX. to charter day the per same

TCE last our XX,XXX QX per tankers to level, XXXX to improved to terms for dry TCE rate same compared charter which year. XXX container our decreased for XX% period where The per per was XX% the for line XX,XXX sector our rate rate by In XX,XXX time equivalent day XX bulk day, with by the vessels day. is of performance, in

million $XXX was were by XXXX Adjusted for from from compared by EBITDA $XX net 'XX equal million. $X to for XXXX QX to EBITDA QX million, to to and million positively sales million Adjusted X affected million QX respectively. Adjusted increased vessel XXXX XX $XX for earnings $X.XX. gains unit increased in per QX QX common XXXX. income XXXX, and for X%

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

March equivalents, including deposits cash cash XX, in months XXXX, excess $XXX of As X and cash restricted time were million. of and

$XX paid quarter million million [indiscernible] $X under predelivery the of other of debt after vessel capitalized $XX newbuilding sold debt. of for We repayment related of During adding one our installments first vessel the cash and net, million net about XXXX, the acquisitions program, expenses. we

decreased deferred were of $X.X including Net Long-term portion, with book levels. million capitalization [ XXXX XX.X%. borrowings, ], fees QX debt to to is which current the line net

Slide XX highlights our debt profile.

diversify resources rate has X.X%. picked debt average at of while to of structures, our an between our bank interest funding debt continue XX% leasing and We

We also million [indiscernible], costs, increased of basis rate approximately by year. from debt significant to having floating to no income. in with [indiscernible] our strong profile for the $X.X X.X% is our interest Maturity mitigate XX year-end. X.X% try values balances margin Furthermore, reduced part of interest contributed XXXX the points [indiscernible] average of cash

documentation rate of building our in In XX% approximately X.X% terms at or already of program, floating is phase newbuilding concluded financing new debt. the average margin an our for of

XX, you see can to initiatives. Slide ESG our Turning

Navios, In Reduction that socially the efficient energy reduce efficient new Navios energy-saving values [indiscernible], and in is collaboration in We founded with group existing include diversity, through Center operations. safety. focus continue to conscious inclusion the XXXX, and Emission vessel Maritime invest whose efficiency. a and emissions global optimizing fleet vessels on devices core February will Global

clear composed by directors. strong while is have and majority corporate governance Board We ethics, of code independent our

the call now you take through the I section. Ted? industry pass Ted to Petrone to

Ted C. Petrone

of costs additional vessels. about and month XX% turn to the of Hope, Since tankers to disruptions stand increasing transit transits leading a Red XX strategic daily December, XX% rerouting caused fund Sea Suez view normal, have operate a at for disruptions. trends the [ for transit restricted a containers, and point ] current miles. dry for of The Please via at Panama of XX% to with Canal Good anticipated Slide Cape the continues by entrance Thank half Red maritime first you, by restrictions Sea transit Eri. the shifts Canal, levels. end. trade below for XX% have reduced bulk

on Slide oil in April a increase grew per World economic a the Sea, barrel crisis Ukraine industry. Red with demand to X.X% of world at turn growth XXXX. uncertainties and In 'XX, of and expectation review in IMF's Please 'XX, [ X.X of day in the IEA projects GDP ] based of spite the for million the forecast. the XX similar tanker

miles. million crude demand ton mitigated OPEC of in day been averaging rates have refinery crude ] XXXX, strong in export remain plus Chinese by [ imports seasonally throughput. QX exports, The After at the QX. increased at levels, rising East to continued increasing back XX firm cuts per Far Atlantic healthy a increasing on barrels and

to and above-mentioned and Russian even crude clean These which both miles, hauls Red patterns, rates. again upward been the routes continue rerouted were by trading Sea sanctions, ton have costs diverted initially once pressure haul on longer seaborne [indiscernible] increase longer Additionally, through to disruptions. putting the

Turning XX. Slide to

East, clean demand previously also are frequently tankers returning discounted As aided rates due supply Atlantica's XXXX. grow Far Russian across crude 'XX expected restrictions. product. and X.X% strong exported and and board fundamentals healthy patterns. ton the healthy by tanker and remain ton expected to additionally X.X% in margins XXXX [indiscernible] in to miles mentioned, trading product to continued Crude Similarly, product the These X.X% both and crude grow shifting a to in the refinery at XXXX. are Canal and to further miles of anticipates in increases percentages are X%

Turning Vessels order COX enforced be partially years. vessels, hesitance attributed over since is is X.X% to the restrictions vessels, total one net X.X% of fleet and of current low were for years concerns uncertainty The Xx year. VLCC 'XX age, technology long-lived which of light both Slide order negative This expensive of of engine this XXX of the XX only negative or 'XX is only book. due negative to about XX growth fleet, the the X.X% in lowest or the and owners about beginning to be order projected XX% XX can to XX. book respectively. to at assets fleet in macroeconomic and decline

provide for well longer the training of and historically global Turning X as current to growth approximately tanker fleet The levels. product years as the oil at routes age demand and earnings across is book fleet, the of equal which the combination tanker rates crude X.X% healthy going tanker ] sector and forward. XXXX XXXX IMO tanker one healthy continue XXXX. should or review, fleet, lowest for products the decades order net XX.X% XX.X% tanker Projected and both is order of of XX It [ of board new in product X.X% to XX. average older. below is the for Slide The book and regulations for the is growth in inventories, concluded

QX XXXX. led bulk BDI and dry average for Please ore to ] of Atlantic grain of coal, grow to bauxite, expected additional XX turn bulk of X,XXX in exports Asia. the a for Slide strength a by trade the the plus X.X% is over since increase the by view listed most countercyclical Southeast to miles, X.X% above-mentioned industry. of This of averaging year, year, to exports ton an the Dry destined increase enhanced Cape [ come cargoes majority and XXXX. with by in continued this the QX, with the iron, XX% earnings from Strong anticipated average the to the XX,XXX, vast highest growth Capes QX China Atlantic

forward, duration trades, continuing in and intact. Going remain are book, regulations tightening canal markets. the positive Longer low fundamentals and which restrictions FFA remain demand emissions supply and period reflected factors historical GHG the S&P order

to in the XXXX XX. XXXX, Slide X.X% at order is lowest current to the age due The low remove COX fleet to year. only XX [indiscernible] years is one the of as XXXXs. of X.X% about growth order the stands or expected the XXXX which be book. That Turning the of of X.X% fleet, compares fleet, favorably be uneconomic X.X% for force that beginning IMO rules of since total the book the since owners and with in over late Net will

our resources, in freight natural the for rates restrictions support slowing combined concluding dry longer sanction-related Canals, deliveries, haul continuing newbuilding all Panama the war and trades, sector both Suez in and with of forward. going demand pace In review, bulk transit

around charter [ a Slide rerouting the to Good week, flow, Sea strength XX review highest from last the vessels pushing X,XXX duration back the time for the should Upward pandemic the of away of of Cape Sea up ] miles, coupled disruption. increased era. On Hope, with level for turn outside to container remain industry. Red in Please the trade the Red rates of expected continued ton the the for pressure SCFI and

However, settles. when continuing gains eventually conflict modify record the Middle cross and East these reverse fleet growth should

record continue newbuilding in to and for X.X% XXXX. XX% time. fleet, Although in XXXX, growth the the trade by XXXX X.X% be expected grow in followed deliveries X% in year, will after to should is approximately some by pressure fleet XXXX of this X% to rates put 'XX, and on equivalent This net

is fleet XX,XXX order a against X.X% be and fleet for XX.X% order of book of years is Turning for to age older. of X% the stands current XXXX. Net or XX. vessels Slide XX About further XX.X% or The expected XXXX to the TEU for book growth at XX% larger.

review, due uncertainty and fundamentals container challenged geopolitical to order the elevated economic In sector demand concluding and longer-term supply book. an and remain

and However, improvements, counterpoint provide challenging trade growth a GDP increasing ton XXXX XXXX. miles world growth of X.X% a for to

would over I presentation. like to our comments. the for concludes turn Angeliki? This Angeliki now to call final her

Angeliki Frangou

This our questions. the call to open We formal presentation. concludes

Operator

to with Instructions] [Operator Nokta now We'll go Jefferies. Omar

Omar Nokta

[indiscernible] continue you? tankers, all can you things Or fine-tune in to with to -- in containers, Does where quite It terms expect going business assets like that are sounds more same, fleet? for bulk, dry the of monetizing we X anything it capital change is of for just of deploying or pillars it the like looks Navios, going well: nicely shape. to your decent be

Angeliki Frangou

basically, Yes, I months Omar, into year. X we like we are mean, [indiscernible]. the

XX%, we can can see about you fixed. we also $XX X, above from million basically that are cash, above cash revenues We Slide XX% our say And expenses. have as

So better be And that we that It or this than position. can [indiscernible] gives visibility. us us will very a year XXXX. comfortable see gives

our implement ability strategies. us gives to further this So

And newbuilding big have mitigate You going though market and we doing can Basically, constantly. as up, the a seen building see, we are leverage down. thing. to lot our have other we that, risk. the payments a even of have cash That's side, on you our

Omar Nokta

of it like there seems of plenty seeing we're in Is in -- of opportunity. just market, terms there is there's the what kind any --

very class stands for or segment at obviously there it's active. Is been this You've rest or that the as you asset would say above a new out divestment? potentially compelling whether investments point,

Angeliki Frangou

we sell. up. have Listen, difficult we I sense bit moved we are values values we little on will more mean have the built When a that on because opportunistic this. on are new see and vessels, make relationships buildings all

new you a we are fix that actually return at able is that So that liability, transaction, basically and attractive are thing unless sure a you the is good the This residual value it to opening, the need are are make -- actually risk. building we you constantly that to which an monitoring.

buildings new more have up, because of actually rates difficult you it's relations. going values going on to With strategy up, that to or see to certain execute you have

changes. can always also we -- the even picking On it's rates. all vessels, forget environment transactions, and good dry it's Red moment, that good But the see Sea see is a up at influenced we longer And change long-term not fundamentally sports Red during about durations be at by the thing. We the which attractive let's that but the -- are living. any will will disappear that Sea, rate

Omar Nokta

that's Right. for just good one maybe point. a And No, no, one final me.

You've We're had to a to over one XX% XX to achievable it that leverage time. the level. perhaps some guess XX XX% for bit next question, the stated goal seems get trying down I now to months. maybe

So the strategically a what thought as time going then achieve you change to period to question have anything also that Navios goal? that leverage forward? is that low? Does happens what get once also, be, you see something about -- would you realistic And

Angeliki Frangou

the reach from vessels is about may to today as it be a the it delever. into because of goal we The year water get

count the Let's not ratio, forget have. the leverage that that backlog we do we basically, not on

for creates further We billion visibility a the years. X.X have revenue buffer about good and of that good contracted

buildings our we the this water, as And automatically. year, we as saw which delever we you them, getting already get into are new

of of it's the an remaining is a a this next. year on result. be and we that is end will process very goal, this beginning the And the the lot So a working

also building we guiding cash. to are are that the You direction, and

Omar Nokta

at standing I'd to to Angeliki over no closing time. for have Frangou turn back the by this additional we like comments. additional And floor questions any

Angeliki Frangou

you. completes first our Thank This results. Thank you. quarter

Operator

today's your gentlemen, and Thank participation. ladies conclude you again, will for Once call. that

You disconnect may at this time.

Navios Maritime Partners (NMM) 14 May 242024 Q1 Earnings call transcript