NMM - Earnings call transcript Q3 2024 | Navios Maritime Partners L.P.

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Operator

Thank you for joining us for Navios Maritime Partners Third Quarter 2024 Earnings Conference Call. With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangou; Chief Operating Officer, Mr. Efstratios Desypris; Chief Financial Officer, Mrs. 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

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

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

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

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

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

Angeliki Frangou

ended and on XX, joining months call. the X with for Good am thank quarter results us today's third the all morning, September XXXX you and period XXXX. for our I of pleased

million and revenue and reported income $XX.X respectively. million, quarter, $XXX.X of the we For net

third and $XXX.X the China, from respectively. battery addition months. the conflict This X been common were good Earnings More million, The billion growth of of been and for past of shipping. X for arm dangerously months, year $X economy is this conflict. a the income sectors face performance time with first troops slowing an evolving X net well. the $X.XX surprisingly, in has All anemic to first space. has and months performing XX we for Ukrainian its have in Korean $X.XX European per been unit reported and the quarter North is the revenue For and

we The to second to increasing war and of in in and risks is calibrate fire Iran expanding direct we these having and and including its Navios, activity increasing Israel. At expanded exchange struggling of Israel the this, monitor Lebanon business whether risk economies year, becoming conflict vigilantly I between try insensitive light to are In question now accordingly. of zones. our

to company turn with leading Navios in now diversified X in sectors. a asset shipping Partners listed Please publicly XX is classes vessels XXX X. Slide

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

leverage target to XX%, We net range XX%. glide our continue our path on of

net see, XX.X%, meaningfully can of as from the end up third LTV you of not quarter. As the the our quarter was last

are pay X. to turn Please dividend program, per annually. a would we Under Slide unit unitholders. $X.XX dividend to our focus capital how returning to on we like our I

$XX.X repurchase unitholders. We a returned we repurchase unit year-to-date, of this program. $XXX units. Under we million total we addition, In million to $XX.X repurchased dividends, have million the have of XXX,XXX used Including float. a our program, original X.X% to

price unit. represents creation estimate million In units analyst below a repurchasing unit addition, is NAV the was around $X.XX its repurchase our remaining repurchase of estimate now our of This to we averaged captured unit In analyst of By discount. unitholder. contrast, our $XX.X. accretive. per a The units average NAV, $XXX $XX.X well

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

update. Slide to turn S&P you an we Please X, where provide

QX and an we years. proceeds average quarter generated $XX.X of age from vessels bulk third XX XXXX with gross the million X quarter-to-date sales, dry sale For

million newbuildings, spent scrubber-fitted day For for for TEU for X,XXX X fixed $XXX net methanol-ready X acquisitions, container container and years. $XX,XXX per we ships ships. were These

took container of of day X for terms net aframax/LRX X X.X net vessels. per we announced X fixed was at one previously $XX,XXX deliveries, fixed for average X,XXX were ships day of and years. newbuilding years delivery In tanker rate $XX,XXX for an TEU per an

five from at at from for TEU net ships previous fixed million per revenue years. quarter. to of X.X was day $XX,XXX tankers from revenue for fixed years X.X million X third TEU three is million at and net X,XXX currently fixed quarter $XXX.X up million for X million from tanker MRX years. beat update. continues net and $XXX.X $X.X Contracted years, contracted per day in $XX.X $XX.X We $XXX.X quarter from revenue newbuildings, Contracted the billion, $XXX containerships $XX,XXX $XX,XXX million container and added $XX,XXX net fixed fourth for X quarter-to-date. the day one for X,XXX per VLCC day per

Our fourth total contracted operating open/index over excess cash days. flow remains cash strong the revenue of $XX.X with we expense XXXX, with million of estimate potential remaining quarter X,XXX

X, focus Please how on Slide where we are turn strategy. our we executing to on

decrease have We a since year-end net XXXX. achieved XX% LTV in

first we of modernization, been delivered. XX In XXXX, purchased XX fleet have newbuildings have of which the terms quarter of renewal vessels and since

quarter selected since We evolution have the a of XX the third of also metrics. provide We view fleet XXXX. vessels our of sold through

than you As slightly in larger see, XXXX. was only our year-end can it is fleet

maintaining the We with about same. remains a latest age the of fleet by maximize fleet technology. vessels useful efficiency energy Our

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

financial Containership a ton increase to our metrics has that longer fleet, contracted give conflict like and this which dropped post steel are been significantly as a revenue. consideration stable out the pandemic these strong. and miles. not note I beneficiary from the Sea has to values $X.X segment, do would a much also that any and in performing billion With point of volatility recovered XXXX would of in Red I primary

Our adjusted over first is XXXX. X% over up same the of the in XXXX X period and months EBITDA XX.X%

XX.X%, leverage material reach the in target XX%, million is of Our XX%. of current balance our to since and LTV and a cash path of XXXX a net is net improvement $XXX end

at the estimate per the period. increased NAV the $XX XX-month $XXX, company's NAV the bottom present of to XXXX analyst increase We unit Navios average starting of ending for the XXXX. of over QX period XX.X% slide, the and QX by an

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

Efstratios Desypris

flow day. a morning net Thank fixed We Please XX, days Slide QX for and turn free of you, additional $XX,XXX available have is million, that to average revenue X,XXX flow. Angeliki, expected total exceed at or XXXX. expense provide which substantial by good operating of our to Contracted open per cash potential $XX.X should of cash all. details days XX% rate remaining index-linked cash and we

So analysis. that you own can sensitivity perform your

vessel side slide, days XX,XXX our by type. of the On provide available we right the

turn to Please Slide XX.

so LRX modernizing constantly profile. average of characteristics. so our eco QX benefiting of for at renewing the for We containerships, $XX,XXX all rate X,XXX $XX,XXX. fleet, out X.X chartered the net vessels aframax years per far two are One delivery technologies We vessel, daily with at average period we an net from has carbon and out which TEU X vessels, day. years greener an of been footprint chartered we fleet, X QX, maintain by new reduced took our In in and

XX vessels billion to representing XXXX, fleet Following of the deliveries, delivering newbuilding investment. we our have through additional $X.X

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

X.X-year approximately over of years, to billion. about XX period be contracted billion. price We total $X.X a billion vessels to for aggregate delivered of expected about have average charter have with revenue charter we out an expected to of the tankers, generate long-term a for risk of in $X.X We XX mitigated this average revenue $X.X X creditworthy duration. In charters, vessels generate

age X total an replacing We an we In with have on vessels At of Japanese XXXX, average X X with purchase sold million. a time, we $XXX.X $XXX age also XX.X of the years of been million. for charter-in same vessels. opportunistically for vessels options built price exercised years average older

Slide Moving to XX.

our employment. long-term created far and from QX QX, tankers. revenue. million we In million from so $XXX and $XXX additional We to million in containerships continue contracted Approximately $XXX secure about about

tanker to is a diverse billion, dry total our fleet $X.X billion Our and revenue quality XXXX relates contracted $X.X $X.X XXXX. to begin of contracted end billion with our revenue bulk to XX% by fleet, to Almost $X.X through relates our our relates group billion extended containerships. amounts counterparties. the of expected are Charters of to

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

Erifili Tsironi

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

revenue on million rate slightly $XXX of increased XXXX for the the third charter Total to for period lower time fleet same to Slide compared to in Moving higher days. the equivalent available highlights earnings $XXX despite quarter XXXX due million XX. to

to Our the increased third X% XXXX quarter by to rate fleet of day XXXX. per time equivalent QX charter for $XX,XXX compared

per rate day period of the terms time fleet our charter rates charter and XXXX. approximately to $XX,XXX respectively. day rates In compared per the containers at increased the X% tankers stood equivalent sector quarter were our at of performance, for XX% for in lower, for In tankers for same our per day and Time charter XX% XXXX. $XX,XXX to third containers $XX,XXX by time for contrast, and dry bulk our

footnote. EPU and in as were slide income explained adjusted the net EBITDA,

for million QX the Excluding $XX revenue available revenue XXXX $X QX of despite increased compared slightly the by XXXX charter $XX million X million amounts, higher mainly increase in increased Total to a to was equivalent billion compared result $XXX to to income $XX XXXX. in rate QX the to lower period increased these net million of quarter of for months Adjusted to XXXX same fleet XXXX. The by XXXX. time days. third by for first adjusted million EBITDA $XX compared

day. Our the first $XX,XXX fleet rate months time was charter XXXX per of X equivalent for

day time fleet same time for XXXX. approximately tankers In $XX,XXX period our dry were In and contrast, terms by in sector to of charter containers rates the rate and increased to for charter XX% lower, bulk performance, our respectively. per X% compared XX%

to Adjusted for increased X were first months earnings same $X.XX. million the $XX,XXX XXXX, per the unit stood increased the day last to first of to by for containers For rates $XX $XX,XXX X and day. XXXX by equivalent first Adjusted compared common for months X Adjusted charter XXXX the for period our XXXX the of year. of last to million year. income of time $XX $XXX at months tankers $XXX months period million compared the net first EBITDA for our per million X same per

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

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

$XX X for as borrowings, current to mainly of deferred first of of million, XXXX, debt. the of months $XXX their the We program, million portion, X of cash for debt. the net a by paid million we Net $XXX delivery the fees, of newbuilding to adding billion, vessels paid about During million result newbuilding increased $XXX to vessels debt. which Long-term of net under sale with our after repayment the respective including capitalization installments XX.X%. $X.X increased X debt were book delivery concluded

our highlights XX Slide debt profile.

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

floating the is part in debt our I water to the mitigated the the the have for of X.XX%. average X%. rate also by reducing note increased program margin debt of newbuilding -- for margin average the We interest cost fleet rate that rate the floating for

due credit any Our maturity staggered in September balance X entered new XXXX, year. In Navios profile is no single Partners significant with facilities.

cost The million and at the LRX for priced SOFR bps finance term + the is newbuilding newbuilding vessel. tranche annum. is fixed and amount up acquisition the of of XXX XXX remaining to per the of is relating $XXX facility to at annum, SOFR to existing indebtedness The basis + refinance points priced part term one first vessels per

cash per million $XX loan of cost Ultramax acquisition XX of to annum and interest of refinance points term or by The the X existing XXX + second indebtedness finance of SOFR part part facility secured basis the of The facility up for the to points is vessels basis any collateral. bears vessel. an

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

socially inclusion new energy-efficient diversity, operations. invest energy-saving values emissions reduce is and and devices We a efficient in to whose through safety. vessels core vessel continue group and Navios conscious include

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

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

Ted C. Petrone

XX Red Slide strategic entrance rerouting Canal, disruptions Sea continues disruptions. a Hope, the maritime to miles. transit levels. a containers, Eri. of to transits increasing by and point for at have and for XX% transit daily ships you, Red Thank restricted turn half for of caused via have transits back The Good Please vessels the Canal review 'XX, a to first ton costs operate December Cape current Suez of tankers. normal. trade Sea XX% Since XX% of dry reduced to the for essentially are bulk Panama leading

a September, X% XX.X barrels to compared After the the Please to Slide XXXX review turn a of season, with projects about million day during disappoint, continue forecast. QX increase and world based same or a is million seasonality X IEA softening X.X period grow day through down strong October half, barrel World X.X% day a in out oil a XXXX back demand to IMF's barrels increase per in a per day imports played for on expected Chinese industry. the last Chinese of The the XXXX. XX to shoulder averaging first tanker maintenance on demand. and in year. 'XX refinery GDP crude million the at X.X for barrels million combined

rates remain with line in current long-term averages. However,

January though up year. period should X X, unwinding crude rates. XX% tanker year, tankers crude up if planned which plus implemented, Product crude swing i.e., currently the last cuts rates. start assist The tanker crude held movements, raising October on increased OPEC crude, for which, CPP saw better export to product December same over further scheduled XXXX, was taking to even are assist rates. should tankers uncoated tanker than tonnage, commence This was this

Turning to Slide XX.

Red at rates supply due to previously levels X.X% trading demand ton X.X% are miles expected 'XX XXXX. Crude in XXXX. in X.X% incorporate Product As and grow percentages fundamentals grow mentioned, remain a and solid 'XX in to Sea are to These a increases miles X% and product and expected crude continued XXXX. patterns. both further further healthy ton shifting in in and restrictions

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

product the fleet, sector current year healthy age crude fleet historically the X.X% product growth is product In should X.X% global of to the years the The order this Turning longer net tanker tanker favorably new for earnings and concluding to compares Projected The and provide in and books of or trading forward. a is both board Slide XX. order XX.X% XX is growth demand, for healthier fleet a tanker moderate XXXX. oil the of older. well going book routes tanker the at combination review, low XX.X% to as and XXXX across continue IMO for regulations tanker levels. for moderate as rates of which

bouncing a exports of coal followed the review the XXX, half turn QX of first the similar than finishing a countercyclically slightly way X,XXX higher as robust year, started than industry. strong resulting bulk off higher quarterly QX with and while averaging highest and a Panamaxes of Slide grain dry for BDI early Please the to ended softened the low of average led first the August assist XX a half [indiscernible] the continued, with as QX. Capes Atlantic in ore, average to the pattern in an BDI from it with X% slightly. iron

has Capes, yesterday, of been the led on Supers ,X,XXX QX downturn was by Panamaxes, The peaking year-to-date. BDI after September As which have X,XXX by anti-cyclical at assisted underperformed XX.

enhanced growth Most is respectively. above-mentioned bulk Asia. miles, of destined X.X% by expected X.X% to to X.X% plus X.X% exports from Southeast in the year ton additional cargoes of majority vast the and and trade come increase Dry the by in China Atlantic this anticipated grow to is and a bauxite, XXXX,

and emissions demand the intact. Going remain GHG and duration forward, regulations supply remain fundamentals lower trades, factors. Longer tightening order book positive

the Please and age of XXXX in remove turn only to XX.X% 'XX be to rules. than The combined restrictions the stands forward. book. deliveries, XX. X.X% will our be total going fleet. dry of owners in Slide as Vessels higher XXXX support current Net for continuing that trades tonnage of slightly order of fleet and for longer natural at which concluding over demand pace expected order XX.X% sanction-related XX book Sea, bulk haul is fleet, newbuilding IMO years about transiting are due COX the freight slowing Red the to X.X% with uneconomic In sector growth war is review, the resources, all rates

firm for Container XX which from XX% approximately a currently Slide only peak to Shanghai X,XXX, higher X,XXX Index, at July turn now at the on is industry. was opened review its slightly which than X and it is of The Please this year. causing down year, the container Sea away from X,XXX year of SCFI, previously Freight era. level TEU on Hope, back contrast pandemic increase about the XX% this of continued to outside the Cape to by ship rate, highest miles In the around of container mentioned the rerouting the rates and of the box Red remain vessels Good

rates quarter, remain time the Red of disruption. the for charter pressure last Sea noted for we duration As should

these the modify and eventually fleet finally and settles. gains record when continuing However, East conflict costs should Middle building books order record growth reverse

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

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

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

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

Angeliki Frangou

and Thank presentation, you, formal open Ted. the concludes This questions. call to we our

Operator

Instructions] We'll at [Operator Omar hear from Nokta first Jefferies.

Omar Nokta

You can strategy, on delivery derisked and and selling adding very execute you're from release, continuing the -- more acquiring to just all and clearly tell on older -- clearly can you vessels, ones, obviously you're the backlog. tell which the newer the are contracts with presentation

Here shipping with least becoming you're recently, maybe does have opportunity that perhaps asset been peaked seen you bit seeing for look used prices? perhaps or to values recent an been what owners easing we've have on in advantage of pressure couple we've less the something And to several exciting take from Is Ship think years. Navios to of that a markets hands? levels. of past than the weaker sort present seeing at

Angeliki Frangou

today. but market, market spot is the see we think I spot

have in different sectors in we say. in geopolitical shipping. in Israel different the again, of would anemic surprisingly I the with year on you in because is X third China, last wobbly, year, and wars, a second Ukraine basically, seen And Europe, you you and have see surprisingly in I -- have its a which say X totally phase. you all months, a have And If market XX growth you phase the strong have

of would our and that million you modernizing period these saw So focusing on billion, period that we are I the XX%, returning vessels. with the but is moment XX% delivery that single mean as I'll got a our added you and said. $XXX are net unitholders. $X.X We've focus say on the take not continue. intensified target of a about we I we and we contracted of fleet. revenue, our have strategies, LTV to of we focusing being capital strategy. this say clear clearly leverage, going a risk, I cautious, weakness on change our will And a on to

really to see longer it in have to changing. view the and term You something

well I mean, add, today, I basically, the month is is capitalized that X everyone a change won't will moment equilibrium.

on see focused you really the So out to because you need of to real strategy that. need a be trend long-term

Omar Nokta

or XXXX, of guess months, in But the where for change want and have strategy Navios. going the business when there's I body company part to there mentioned, is derisk and you everything think mention -- about a but you and Yes. take you work just I general, fixed been clearly, add you to more geopolitical you think into you the I when cover do just a tankers, today you X That any cover, XX of recently, the the did strong. and election dry of you mentioned guess sense. think and overall? contract that's -- risks markets there a about Or -- you just fairly needs a makes part or there's like to whether is look And business as the that over as ahead? have guess containers think you And U.S. past you the do of obviously, in the now? doesn't you about macro wars have just just approach lot month

Angeliki Frangou

mean is wouldn't ago, I sector, of container we thing. year are very in I an which almost million how did on business a which a $XXX strength. coverage. -- incredible we sector, the contracted have added told And I if did a we is amazing lot adding opportunistic The will you the we of revenue tell you one nicely modeled nice. beauty in we expected container the me the have

very actually revenue nice so of moment luxury we add the we the So get returns. the we that contracted selecting have that

go the weak market. sit So on on you and to are moment going a not

do that opportunistically. we So

Omar Nokta

just makes and have share the finally, I maybe certainly. capital dividend mentioned guess And and sense. the you've That returns, the beyond Yes, you repurchases.

past, You we maybe Board the work I there's just put maybe promises. and know in the mentioned you discretion the it's here obviously I think, $XX or months But no over capital you'd type far, step on the to think moderate perhaps of this about is down you it thus need pace an slow like Any the to return think reason at up? as X keep you million of so. repurchases basis? that general, that to or would ongoing

Angeliki Frangou

are execute also modernizing is on we money very leverage, strategy. to putting also a feel usual we returning that We on part even our but our know, market, We as disclaimers, to with advance, cautious our strategy. in capital our in have work, are our the to fleet, we you well we to but articulated though targets are -- We kind strategy. this -- that, of deliberate is of we deliberate a and have here executing but be this on on unitholders

Operator

Angeliki, And I turn we floor group. you closing or back you have no the any further from have. additional will for remarks questions our to

Angeliki Frangou

Thank our Thank quarterly This completes you. you. results.

Operator

our gentlemen, and meeting your all conclude thank this We Ladies you for does participation. today. for

now may disconnect your You lines.

Navios Maritime Partners (NMM) 5 Nov 242024 Q3 Earnings call transcript