NMM - Earnings call transcript Q2 2024 | Navios Maritime Partners L.P.

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Operator

Thank you for joining us for Navios Maritime Partners Second Quarter 2024 earnings conference call. With us today from the company are Chairwoman and CEO; Ms. Angeliki N. Frangou, Chief Operating Officer, Mr. Stratos Desypris, Chief Financial Officer, Mr. Chairman, Vice and Tsironi, Mr. Erifili Ted Petrone.

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

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

the are Navios that Such uncertainties could forward-looking statements. to based from upon Forward-looking Partners' and facts. statements of the expectations and historical statements current are are and and not cause subject to statements risks actual forward-looking management beliefs differ are which results materially

Such risks as opening this such conference Partners the today's does information the The set in with more forth obligation for call information is not hearing contained Ms. assume remarks. will risks. filings Navios any First, understood fully to of in Partners' should update call. and light Commission. offer Navios Securities agenda Frangou Exchange be follows: The discussed in

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

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

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

Angeliki Frangou

experience revenue continue second the thank million $X.XX. was quarter, $XXX.X estate morning of transportation. the by $XXX.X I reported the Sea seems economies per us for people am the domestic of million the [indiscernible] around European Good sector challenged while results and goods all global quarter of you as pleased and is Earnings particularly income post Red It avoiding net The mining impact for are for pandemic you, troubled all is has of regional China's and Red result saving to in on common long a of We economy and In Sea and XXXX. with joining net the for the consumption. today's we upsiding, call. generally real Africa. the U.S. route are quarter. to the inflation, conflicts, taking healthy the unit second that similar and been volume

We China's can for whether appetite determine we carefully are economic [indiscernible] otherwise its commodities. working to whilst

imagine, are with view, sort sight. is The cautious geopolitical have considerations. because As we in conflict East equal a and is continues resolution quickly you not cautious economic some the but China's with established. stalling, on new in [indiscernible] also can The edge in Ukraine we no Middle of of

control, our diversified vessels on shipping leverage to Accordingly, we we fleet. publicly can X. in focusing as in to Please is X asset strategic Slide XX that a sectors. by leading Navios continue such and reducing company with classes Partners listed execute initiatives things on modernizing our energy resin turn XXX

quarter our balance we our net we cash on of million believe $XXX.X have I leverage mentioned path We to in are that of XX%, that target last sheet. XX%. a range gliding

our Under unit As our unitholders. Consequently, you net program, second returning of some $X.XX end of see, XX.X%. paid annually. the the dividend was quarter we a to to dividend capital can as we per focus LTV of our turned our

In $XXX for under XX approximately versus $XX have August repurchase program around units XXX,XXX unit addition, program we this through million. million

$XXX the around so per estimated created I repurchases. $XX capital unitholders far was unit also is the of unit around XXXX, have of would review based our our unit total, analyst we in our average repurchase through and unit. returned [indiscernible] In that dividends million to estimate our on of mention

creation unit. unit $XX. paid at NAV, of per represents repurchase captured which $XX to an we average Our million Thus, net price about discount a $X.XX

other business under availability investment conditions, will opportunities general timing program. be requirements other subject volume further pressures of around million unit and to and The $XX repurchase of among have market We the working factors. and capital

Please modern are XX.X a proceeds [indiscernible] of of at the years We to be second completed our one keeping sales in X. expected vessels turn to the effort age gross million X fleet and in average half in showed an post-Panamax XXXX. with Slide generated $XX.X

of In invested $XXX we following vessels. the in X acquisition, terms around million

For our methanol [indiscernible] container new in. X ready, Ultra-Handymax one X,XXX Aframax building scrubber-fitted tankers, TEU new ARX ships, chartered build, Japanese buildings, previously

building Aframax fixed net for previously delivery X $XX,XXX We also container years. per of net at years of per $XX,XXX average day took X fixed ships TEU for X rate LRX new announced tanker vessels, an at X.X day XX,XXX and

average and we fixed We continue at for which quarter billion. for from day to which per container years, $XXX net of In million Aframax an X fixed XXXX, from third $XXX.X to contracted XX,XXX net years add our was the quarter-to-date net day building and branches of fixed $X.X million a of X $XXX.X [indiscernible] $XXX.X per rate was million rate average from X at X.X TEU contracted of added $XX,XXX an per ships today $XX,XXX for second day LRX due is X,XXX around container quarter, new is at revenue, years. rate million revenue,

cash operating strong. remained Our flow

revenue evolution Please through For cash XX% X. important. second metrics We have fleet available this for of days million exceeds of to are we index the selected our days an remaining X,XXX half by turn of $XX plus the or provide which period. overview of total expense open XXXX, contracted Slide

significant our in is see, was only year-end a As after the can slightly large later you modernization it XXXX program. fleet than

of technologies. a the same. vessels maintaining the more patiently useful maximize grade we We made by we we As latest carbon-neutral the energy while technology, efficiency with fleet of about await development

see pandemic In steel the the like been that of end addition, has has miles. as since dropped to beneficiary longer has point out vessels fleet XX% improvement much about conflict from which of this and XXXX. segment improved value our by you containership volatility in ton a would from in recovered primary XXXX I of the [indiscernible] significantly and post values, the can as

these billion. With performing note $X.X about and today do stable are strong. and consideration revenue, metrics financial that a also would any which still our fleet give is not contracted values I to

half of first XXXX. XXXX Our over adjusted X% half XX% of EBITDA up first is and of

approaching the Our reserve cash balance have identified. we is

leverage Our XX.X% since net target material and of our end a XX%. and current ATV to path improvement XXXX is XX%, the of net

I'm turn Stratos. Navios also strategic desires, new management to and our through that negotiated existing Chief have these report we fleet many to pleased Mr. will Operating now our to arrangements you take Stratos over details. Officer. manager. and Stratos the Partners' presentation with

Efstratios Desypris

in on Thank morning, the turn were end agreements fees. August, of you, at and and are expiring Management Slide management. [indiscernible] XX. its services provide with agreements, renewed Based Partners good current the administrative XXXX. new new costs extra continue agreements renew all. to services Please imitative allocable Navios management The and In on based will Angeliki, with Navios XXXX largely to

Additionally, Navios will provide Management commercial following the and technical, structure. services other based on

agreements commence of Board on by a of of term corporate of fee commercial [indiscernible] The or revenues, for fuel day approved new January agreements example, building supervision and subject control. X, XXXX, the of administrative annually for termination on services, renewing S&P the for committee of X% Partners. negotiated The per price own management and were technical is sale XX new will of Directors fees management of and vessels. Navios change and gross services vessels, a to X.XX% years $XXX purchase other specialized for

days advisers Slide used The legal Please as their advisers of flow to opinion. which cash differential total per exceeds turn who free the In expense cash flow. details financial and KPMG XX, available days million. We fixed of short, should our that $XX additional contracted potential second rate is [indiscernible] revenue XX% Conflicts have operator for half Committee XX,XXX substantial of index-linked at operating free day. XXXX. average And provide we a remaining net by cash X,XXX

of XX,XXX right available the can you their to our provide slide, Slide side turn we days sensitivity so own XX. right the that analysis. Please perform On

gentrified, that it carbon the reduce from renewing strategy our to new equates by always characteristics. and is to should with footprint are our given fleet benefiting our We fleet, maintain modernizing technologies we

QX of $XX,XXX net all X out TEU at today, of vessel, per an daily delivery day. of container years day. an which we at average chartered $XX,XXX XX,XXX XQ net vessels, the took per Aframax on been for and average rate X.X has X ships, One set for years In

deliveries, In delivered to billion we delivered building our a with of we ships, price. acquisition vessels billion. to about XX fleet representing total XXXX, container $X.X total new of acquisition price Following through these $X.X additional be have have X vessels

$X.X We about have mitigated duration. chapters this over risk with charter long-term billion in credit X.X-year average a work generating revenue,

delivered vessels billion. for approximately a for an XX of XX In of of With $X.X that aggregate these about contracted price space, total revenue we tanker generating X years, of to average vessels the around period be $X.X have billion.

of sold for XX.X vessels. In also have with placed We million. older an age XXXX, X have vessels been average $XXX.X we opportunistically years

total high vessels same age X the of options with an the At for exercised build [indiscernible] we on a $XXX Japanese price average million. time, of catering years

Slide to Moving XX.

continue long-term We our [indiscernible] our ships. fleet $XXX employment about QX in million about to contracted we from created our to revenue. comes date, have from additional and $XXX secure container and million QX million About for $XXX

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

pass group through be our our Charters which of with the next Tsironi, financial the X highlights. counterparties. in revenue are take to CFO, extended you Eri of to through the is diverse quality now expected I a XXXX XX% will contracted About call Eli? years.

Erifili Tsironi

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

second Moving and to period XX. time the $XXX to compared Total lower for combined slightly XXXX Slide $XXX available to due highlights days. same equivalent million XXXX earnings the for decreased of million the charter in rate to revenue on quarter

XXXX Our the per charter XX,XXX combined stood for rate quarter at of time second day. equivalent

the of increased XX% for our $XX,XXX dry terms compared sector day the In by to per TCE in fleet same period XXXX. to bulk performance,

respectively. our XXXX. containers adjusted day, and for stood EBITDA, the for In tank day as container explained TCE were rates net EPU our income and tankers the XX,XXX for at per footnote. contrast, lower, quarter at XX,XXX approximately were per rate TCE XX% slide of second our XX% in and

$XX was million nearly effect decreased $XXX in EBITDA reduction despite $X.X compared positive million adjusted $X and negative net expense from million the to rate adjusted Excluding million compared interest XXXX. to XXXX by $XX.X million and for and new to The increase decreased to the $X.X effect in XXXX XXXX. from to interest QX decrease depreciation amortization QX QX income income. in QX for million the the decrease the these by EBITDA Adjusted amounts,

TCE combined half XXXX. XXXX available same was the in of Total to of compared rate a million revenue lower result in $XXX million despite revenue increased period to increase for higher first the by $X.X The mainly base.

combined half Our rate XX,XXX first XXXX for day. of was the per TCE

In fleet day, performance, terms $XX,XXX of sector bulk compared TCE XXXX. in the increased by period for to per dry our same to rate XX%

container and million In lower, Adjusted at to tankers tank rates for contrast, first last respectively. compared EBITDA XX,XXX and day year. TCE half period first approximately to XXXX. $XXX day the rates at our our X% of XX% were half XX,XXX per the the per for XXXX of increased TCE our $X for containers same stood million for and by

positive a capitalized the $X.X of dry income income depreciation of and million. in affected for our $XX.X unfavorable decreased XXXX of costs a million in million the impact increase million decrease an the amortization amortization by increase increase dock net special half EBITDA, negatively the items in deferred of $X.X the to adjusted intangible net in sales amortization Despite by Adjusted and terms first million assets. of $X other $XXX was lease and

mitigated or a the expense above The earnings of partially $X.X increase XXXX income. half in interest $X.X a common by per first decrease unit was and interest decrease in million Adjusted million for $X.XX.

have agreed preliminary impact operating compared at a management end management to the of the expenses, a agreement. expiring financial the prior agreement year. agreement we our from for of earlier, budgets on we Based renew mentioned expect to new terms XXXX material As the don't

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

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

of predelivery first the debt half capitalized related and of we During paid new expenses under million our XXXX, $XXX.X program. installments building net of

braking $X.XX paid of delivery increased a for the new delivery billion, mainly result fees, capitalization book decreased about installments for cash vessels, net the net debt. $X.X respected We of million, adding which with X deferred the Net vessels X billion as borrowings, the XX.X%. concluded including debt expected debt. current long-term to to repayment Total the the sale of after of were portion, $XX.X of

Slide XX highlights our debt profile.

an We continue as fixed and at funding debt debt average our between resources X.X%. while bank our rate interest of of instructions, to diversify lease XX%

increased costs, to margin in rate for program X.X% having of We of reduced rate business while to average interest debt the part the mitigate floating our margin our average also new try for is the debt rate floating X.X%. the

significant bulk Our maturity with up due June In vessels. XXXX, into of reducing acquisition no to with revolving of part order finance to value $XX targeted bank is and refinance a in million in the for profile single vessels commercial a X we indebtedness any cost facility new X dry the entered year. existing of to

The annum. and points compounded [indiscernible] term bears plus has years basis per credit X at facility interest XXX

can E&C Slide to see XX, you Turning our initiatives.

founded February register XXXX, optimizing vessels the reduce efficiency. Maritime global system in head emissions We devices will new focus emission efficient with In center vessel reduction and Global collaboration energy-saving through continue invest Loyalty operations. that Navios existing on the to and in energy

Navios With corporate I'll inclusion and to industry ratings, our code group you whose pass core Ted clear the diversity, majority now to Board and strong take include while call by of the our conscious through Ted? section. socially values is independent a directors. Petrone is governance composed safety.

Ted C. Petrone

bulk Sea XX Canal, Eri. Slide have Cape disruptions via to disruptions. Swiss maritime and Sea shifts Red trade XX% at a Please caused December, ton XX% Red of containers, a Good and the of current reduced operate miles. have you, to continues levels. for first strategic leading for point for XX% transfer dry review cost increasing vessels Tankers. turn half to The Hope, transit of restricted for rerouting a Thank transits entrance Since the of

[indiscernible] for anticipated the of daily industry. month continue transit to back transit of to near the normal XX ease review Please Slide restrictions with on seasonal by returning turn be end. rains tanker to

for IEA grow X.X increase million-barrel and day to on barrels by XXXX million XXXX. in IMS projects day world demand July 'XX expected the The increase a GDP in X in per While based X.X% forecast. oil per

imports rates per about healthy are imports QX, crude exports showing same last QX, XX.X barrels X% with tankers the above QX exports, The have cuts slightly year. at continue QX. a seasonally although Chinese rates in somewhat Atlantic averages high remain averaging After in strong VLCC mitigated but levels million been moderated resilience. about in day to long-term product increased from the period down Far crude East most by causing OPEC volatility

Turning XX. to Slide

by ton X.X% strong mentioned, As further ton healthy across percentages shifting by X.X% 'XX. decline continued increases both crude to 'XX, miles are supply grow 'XX. 'XX in due by a in X.X% canal and and rates expected fundamentals the board and to to Product remain restrictions but previously product in and These grow demand are Crude trading X.X% patterns. XXXX. to corporate in in expected tanker mile is expected in

can respectively. and in COX for to of assets XX. macroeconomic be 'XX owners beginning expensive light Slide VLCC concerns This due hesitant to engine and negative year. X.X% negative to negative the decline X.X% in both to order is of 'XX Turning long-lived net since partially uncertainty be technology projected the to restrictions and in force and growth attributed fleet

Xx The of the is about the order current XX of of XXX the fleet XX vessels X.X% fleet which XX X in is years over low vessels, of are vessels, years. the book book. only or of lowest XX% over one order

is of of which XX. favorably for X.X% current the XXXX. or older. to for net is the and tanker XXXX order book Projected with Turning of product XX fleet XX.X% the age product fleet The X.X% Slide fleet, tanker is XX.X% years growth and compares

summer longer both seasonally sector the healthy historically tanker and and order levels lowest review, growth moderate as In continued the for board of decades. demand, Combination of as routes slow X rates oil books well one during global trading concluding in tanker new season. across the the products crude

dry followed the XXXX, slightly QX, higher strong IMO this than the cargoes BDI by of review iron in miles healthy resulting QX exports above-listed for this of additional earnings for averaging should XXXX strong Slide the a QX. in majority industry. similar to turn counter the regulations bulk a Please cyclically X.X% provide the growth, Atlantic XX to a grain colon the X.X% by most growth exports the to anticipated of And continued, Atlantic pattern forward. to ore ton trade expected tanker vast grow enhanced of going from destined plus come year, Southeast is to with Dry and the China bauxite bulk Asia.

fleet, to markets. current remain futures which factors, at in fundamentals supply duration Longer late will the rules. The regulations and the and due trade, positive removed to reflected COX remain and since X.X% for low the book as 'XXs. forward, of be GHG in Net turn Please X.X% expected the demand that the one are XXXX owners Going Slide tonnage of stands order intact. missions uneconomical the X.X% IMO book order only tightening XXXX is XX. growth lowest and fleet be to XXXX

of of over concluding freight war longer-haul and sector equal low support is years combined forward. bulk demand natural the rates a Vessels are pace the to X.X% fleet, slowing the which all XX restrictions continuing trade about deliveries for of resources, Sea, going review, age book. our sanction-related new dry building in In Red transiting with order approximately

Please Slide review turn to to of XX container the industry.

moderately correcting XX% XXXX, coupled of SCFI flow, of the around the later, Hope, continued Good on to pandemic increase recently. away outside highest the year, in this XXXX the from the to of with SCFI ton level reached miles Red about week week causing Continued June. era The strong one trade Cape pushing and rerouting vessels Sea before by last the

for disruption. of [indiscernible] red charter sea rates duration should the the remain

the gains course fleet record should these when East conflict modify in reverse Middle continued settles. growth However, eventually

new fleet X.X% and grow deliveries XXXX approximately growth in X.X% XXXX year, followed to of by in X.X% 'XX the record and expected XX.X% be of this will is after trade net equivalent to fleet in and 'XX building by XX% XXXX. in Although

continue rates for will time. to pressure This some

elevated Turning for the and geopolitical or XXXX of The age current the order fleet to further vessels and the be Slide book about of remain demand at fundamentals XXXX. to concluding book for is challenged fleet expected economic older, is or review, order TEU of years sector XX.X% XX. larger. an and a XX.X% to book. due X.X% for container XX% XXX XX longer-term the supply and order growth In uncertainties XX.X% stands Net against

However, growth miles and X.X% call for ton challenging half XXXX. This like GDP a over increased our I trade year would provide second for improvements, her world a comments. presentation. of growth to counterpoint the this of to Angeliki final to turn concludes Angeliki?

Angeliki Frangou

completes formal open We Ted. you, a presentation. Thank to This call us questions. the

Operator

Our Instructions] Nokta question will from Jefferies. [Operator first Omar with come

Omar Nokta

fleet, Obviously, some selling good quarter, flow fine-tuning which on contract to next nice. and amount is ones million, we of Obviously, a cover. the bringing shifts a continue and buyback $XX with nearly the spent cash highlight big you free generation, focus in new is

Just to capital thinking kind that work? putting there you that, that anything is of about triggered

between the you you the the Is price disconnect with of here it the anything it recently? drove Obviously, share backlog? buyback instigated What of the the kind buildup after. would is decision that outlook? highlight and to go Is the maybe say -- but there comfort

Angeliki Frangou

reinvesting I in our driving basically, think target focus are business. our by we Omar, we on

about from growth leverage day. over vessels, at We managed meaning our billion $X.X contracted achieve $XXX same million down them contracted we our it's of XX%. goals, to $XXX time, that have we over achieving our of to revenue. seen out But brought toward near million, clear we the bought You and

we stated. our were XX%, close to target we is XX%, very position but Our cash -- have what is

also And We an we we like start repurchasing when repurchase by acquired So our having being creation caption additional on a a $X.XX our that investor. we that targets. having But basically, we which additionally driving investors articulated. we NAV, good for able the by about were program, reaching fire and we implement a strategy to power by incremental our are sales. benefit have

a So result. good net-net is this

Omar Nokta

to the a ordered, continuing just And orders. you're around couple The just just LRX's valuations follow-ups close what costs? driving to more new you compares that new million the that or are kind options of somewhere to is Yes, XXs of perception market these high building closer exercise? for you've cheaper are maybe that suggest able me, what's certainly. of million. to a pay that to Is to buildings what And been $XX price that on that $XX relative

Angeliki Frangou

one quite on mean we do, an create And we have chart of quality implementing seen vessel fleet You strategy for giving on to and disciplined I this for quality we are time, exactly focus on right. options We the think things been on are have purchasing. I that you a advantage. us like us. the some

remark, older when the is Also, you we -- obligation. are able an have vessels actually to getting

So think margin fix you to that. on trying and -- that have become an need are we to I asset, balance. it's focused it And very be

Omar Nokta

TEU you just charter. 'XX have two first those ordered, X-year Yes. obviously, looks are half, in the I -- charters. XX% the term little a like a guess, or the over now interesting, half the over just X,XXX Yes. XX% seem delivering the of payback And basically What's maybe X-year payback buildings and over is then that over almost the to charters new

this of give on advantage of on X-year lots take But had payback. one attractive stand term? payback acquire is pretty over opportunity as an guess container these about a one-offs, we numbers able some of one that payback. those we to a Or a out two, rate. transaction make been tonnage just you when put those you've good What being in that 'XX this of that, of kind think is I But containers? builds a any are repeatable think it can guess you referenced a I color type So sooner I do sense, new that? busy click was what's you at very -- contract. is having driving

Angeliki Frangou

there. build We relationship on our

asset repeatable on in We we We shipyards vessels. other you order. over care are different So creating and the different the care this classes. the where repeatable we not only see particular designs and deal, the about relationships but about of not is

we remember, type of you the vessel. If on of the kind same

for And energy with match the the on an on [indiscernible] the of we chartering opportunity. knowledge the vessels. we type right done have repeat opportunity the have to We on vessel with

So never you this I lot this, see Aframaxes mean, way, may of a By And is quite them. this a not have. we significant. the effort a is payback one-off. also our is continuous the

are So go end both on you we very to historical at story, at careful of need the because the sides averages.

We the like to make sure that we value, with the bring charter we the down. value have, residual

Omar Nokta

that's the turn I appreciate color. I'll Angeliki it over. helpful.

Operator

no Thank I you. turn At Angeliki further have any call the this remarks. time, questions. we to will closing for back

Angeliki Frangou

you. quarterly results. Thank our you. Thank This concludes

Navios Maritime Partners (NMM) 20 Aug 242024 Q2 Earnings call transcript