NMM - Earnings call transcript Q4 2024 | Navios Maritime Partners L.P.

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Operator

Thank you for joining us for Navios Maritime Partners Fourth Quarter 2024 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, Mrs. Eri 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

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

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

Angeliki Frangou

fourth on joining XXXX. call. the of with for Good am thank year results us today's full quarter all morning the you and for our I and pleased

$XXX.X the quarter. million we reported revenue to For $X.XX fourth of of year, the which billion, full related

XXXX $XX.XX and unit and full respectively. fourth also Earnings for per quarter. the net fourth the million were $XX.X for million the of and the year We reported income quarter, common for $X.XX $XXX.X

East. primarily will markets driven how don't and in conflict Ukraine geopolitical our the pandemic, events be the Since resolved. of We events Middle know by were the

the continuing to oil-producing be conflict our Middle may sanctions. to nations, sanctions or the of East In which know and subject don't world nations view, extent also significant the Ukraine trade. even involve We the will impacting resolution expanded materially in on

administration so complete addition, fully tariff not cannot new In inevitable understand has map trade. a road yet on its has about Trump its we provided scheme global been vocal the but impact

to asset average with is Navios age turn vessels. Please Slide Partners different leading and a X classes. shipping X. years are X.X have vessels and publicly-listed in XX an of segments company These XXX

and As We of is vessel revenue each see, you a of cash in on balance our equal contracted $X.X value $XXX.X approximately billion the can XXXX million with sector. ended sheet.

entered also our positioned days available XXXX We well are XX% of fixed. as XXXX

breakeven open As at is index about a estimated day. result, $XXX our per

in of primarily Our end the contraction in resulting net LTV the value a calculated XX.X%, the at sector. fourth bulk from dry quarter as of was

X. to like program, turn dividend annually. focus in would we total All return paid $X.X Slide unit program. Please on XXXX. dividend for million our to our Under I on per $X.XX capital

of common In million, under repurchase total $XX.X repurchased Including the original XXXX, returned X.X% we common million for program. we million in retiring repurchased total of float. unit XXXX. $XX.X the we for X, dividends, XXX,XXX a XXX,XXX XXXX, addition, units February in Through units of $XX a

As capital The we opportunities, below have this through effectively of $X.X our we other business requirements of [ XXXX, conditions, $XX.X unitholder February were unit As NAV repurchases well NAV, will program. volume under other factors. of value unit working each market estimated investment ] unit further to returned per subject repurchase X, available million repurchase general and to another be timing accretion. among and and

provide we purchase to Please sales update. X, and where Slide turn a

average a of X option exercising of vessel. age sales, $XX.X sales of on vessel proceeds with fourth years. an by acquired price from XX.X year-to-date million $XX.X bulk generated an XXXX the sale we million charter-in We effective For quarter the for gross vessels X and an dry

We X also vessels, received delivery of vessel. and previously ships announced X newbuilding container tanker

the terms the the slide. charters see related of on can You

Contracted update. revenue

focus at added about calculated million container contracted and We relating building billion. revenue, to of related which $XX.X on million revenue is to $XX to follows: million continue $XX.X now We ship. as tankers contracted $X.X a

operating potential cash flow Our remains strong.

estimated days day index an per our open have available or we open XXXX, $XXX indexed. fleet XX% of For breakeven with of

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

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

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

since sold We XXXX. vessels have also of XX the quarter third

provide view our evolution the through of of metrics. fleet We a selected

size see, year-end can the same the you was XXXX. as our fleet in is it As

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

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

consideration that unit fourth per increased NAV Navios any X-year quarter slide, estimate a the $X.X the contracted note values at and company's of this XXXX analyst do still present for of to period. unit ending period by We bottom to $XX.X not also would XX% average starting per the I these give of revenue. the over NAV XXXX. $XXX.X billion an the fourth quarter increase

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

Efstratios Desypris

an which Angeliki. year, open our average available our net index all. XX, $XX,XXX of turn days almost at per free to Contracted details per XX% estimated Slide potential Good Please you, Thank day. of rate of cash breakeven for revenue We total XXXX. a for covers cash our morning, day. $XXX the fixed leaving operating flow expense

should remaining that or index-linked have substantial days XX,XXX provide cash We open flow.

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

Slide to turn Please XX.

so delivery ships, vessels; in by X,XXX in out technologies all reduced order and We X benefiting footprint our far QX TEU friendly maintain to we carbon are environmentally container for features. In We took renewing and chartered fleet, an been young from period $XX,XXX average our X out a constantly our X,XXX chartered fleet is modernizing at which QX, daily profile. newer advanced containership, LNG net X.X at average for X net day. per which TEU first of dual-fuel of years chartered an X at day; average rate vessel, for XX of our of years $XX,XXX; per out has LRX an and rate net years $XX,XXX aframax

vessels of Following about these delivering have delivered acquisition XXXX, newbuilding representing be have $X.X additional a total through In to we $X.X price vessels deliveries, our containerships, we investment. of XX X to with billion. fleet billion

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

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

to XX. Moving Slide

is $XX about $XX long-term $XX secure from about we QX from million tankers. million We and additional containerships created employment. continue million revenue. contracted and In year-to-date, XXXX to Approximately

to contracted our through bulk dry to group relates containerships. relates billion $X.X tanker to fleet fleet, total our $X $X.X Our counterparties. Charters with of a amounts revenue relates billion are to and diverse quality XXXX $X.X our billion billion, extended

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

Erifili Tsironi

December presentation website. will the all. review morning, you, information is briefly slide in fourth Stratos. XXXX. summarized the XX, the release on is for results I in year And ended good company's and included the Thank press unaudited financial financial available The our and quarter

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

fleet $XX,XXX available QX Our day increased by rate compared and for days. per quarter increased to 'XX, of TCE to X.X% to fourth X.X% by our XX,XXX days the XXXX

per rate X% our TCE approximately dry at fleet per lower terms $XX,XXX time day. our charter for by and was to and the $XX,XXX bulk X% respectively. contrast, for In our performance, approximately per $XX,XXX day, day fleet container sector of tankers increased rate the In

as adjusted slide in was explained the footnote. EBITDA

adjusted Please note Net EBITDA 'XX. 'XX to decreased the by figures Excluding QX our that $XX for periods $XX income for million. these XXXX QX $XX amounts, by onwards. the QX from compared million prepayment million which 'XX charterers, include million $XXX hire to 'XX received to relates was of charter of

increased equivalent higher slightly $X.XX million for $XX increase to fleet was despite mainly revenue compared by full charter revenue the days. XXXX. year billion available lower Total rates The a result of 'XX in time to

per day. $XX,XXX was Our XXXX TCE fleet

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

TCE tankers XXXX, per our containers day. for $XX,XXX stood for For our day at $XX,XXX and at rates per

Adjusted by million $XX to $XXX million compared last XXXX EBITDA to for year the decreased year.

XXXX for Excluding $XX.XX, exceeded $XXX full respectively. EBITDA $X.XX for Net prepayment quarter XXXX common million the per million. year would and the have fourth $XX mentioned income levels. XXXX unit earlier, and at XXXX Earnings stood were

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

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

net paid of XX During million We year, after $XXX the under repayment. debt. debt $XXX concluded vessels program, cash the adding our for of newbuilding million, we about $XXX sale million

as vessels of XX.X%. respective book for Net the including fees, were $X.X paid borrowings, debt. to deferred mainly with installments XX debt of billion, slightly which result Long-term to of $XXX current increased capitalization delivery portion, by the increased the newbuilding million delivery net to a

debt Slide profile. XX highlights our

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

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

year. credit in no XXXX, million is for facilities Navios refinance Our existing up to X staggered maturity In Partners profile to the vessels. with any balance QX new of significant into $XXX XX entered due debtness single

and vessel. completed In for sale $XX X facility million addition, leaseback a we

the SOFR per close order to years to Partners TEU completion definitive is at The X,XXX facility documentation, delivery of agency-backed matures remains container Navios an $XXX.X export currently facility finance for the the vessel expected to of date part bears million quarter and of acquisition XXXX. each points first to to after of plus construction. subject of basis facility agreed The in XXX interest recently, total newbuildings, XX annum. into under X a of amount ships Finally, cost up credit enter

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

Ted C. Petrone

Slide XX. oil, duties from U.S. announced XX% to turn on XX% for February autos. products tariffs significant the U.S.-China Please combined all crude XX% On machinery agricultural metric February all and trade Eri. tariffs global equal coal, At not existing seaborne U.S. tariffs announced global of approximately On million announced tariffs X, X, only expected the you, Beijing Thank on time, LNG, goods, the are including additional imported to trade. about additional effect to to of equal XX on have China. tons, as a large X.X% this

there of for On tariffs Mexico for coming and February fluid country, and be the Canada on imported is X U.S. out of escalation resources The except The and successful. a and bears discussions on potential expected is after leaders XX% for from energy negotiations energy announced the all Canada between postponed tariffs not X, month each Mexico were as each products further Canada. situation monitoring should country.

Sea XX transit entrance of a the Slide review maritime point, to The Suez to strategic leading for transit Red current at trade restricted turn continues Canal, Please to operate a levels. disruptions.

the week of the vessels, lowest this fact, XXX year November February since of In registered transits, first XXXX.

caused remain disruptions on XXXX, situation be TEU X% experience to or of X.X% crude Hope, restrictions unchanged via rerouting only drafts. cost containers, product essentially mile were for and Cape are to for XX% projected XXXX, back normal tankers, and the TEU a to Canal transits total ships are approximately ton bulk. ton slight variations. all sectors increasing Red total dry In Panama in tankers increases the distances. of have vessels segment certain for for for X% or slight estimated Sea numerically Good Should miles per with

XXXX IEA million for day, global in a The grow Slide World about January tanker barrels to barrels the X.X% is projects ton GDP imports per X about per oil XXXX. to in per increase XXXX. expected demand Chinese XX in turn in the or crude XXXX, industry. a day million X.X X% down XX.X review IMF's averaging to Please slowed on compared of million by based barrel forecast.

day softer the out and December back per the from X, BCTI QX the slowing voluntary ] a OPEC+ QX. After the a ] export above-mentioned some of fashion similar BDTI seasonally April delaying QX, unchanged million The QX, basically demand X averaged for XXX QX, the barrels XXXX. crude in of played XX% X.X XXX, slow oil Chinese on cuts unwinding while below averaged until [ [ from

remained However, in all averages. in cases, with rates line long-term

changes Recent regarding XX. crude inventories low going sanctions normal and policies seasonality with freight to Overall, are forward. Slide rates along and in and global with these tariffs U.S. changes, should dealt oil XX support

adding the Foreign doubled mostly Control, Please XX, vessels. OFAC, turn OFAC's to sanctions issued sanctioned its (sic) Assets [ sanctions Slide U.S. ] oil XXX XX. with the Russian Office more trading U.S. list. the of new action Russian than ships, targeting to January revenue XXX oil XXXX,

from East to the OFAC now leading Middle February Gulf China the for per total vessels January X, VLCC will said that the crude market is to XX% XX Slide higher not the vessels spot X%. on than is sanctioned of they about rates as India before charter sanctioned and announced. As XX, have are chart fleet. to allow regular day were sanctions discharge, fleet OFAC the China Both

of exports measures against "maximum enforce them February X agencies X.X with past XXXX, introduce exports day on Additionally, U.S. a U.S. X, It from this targeting barrels January. pressure" rigorously Iran's the economic to reinstated registered million goal instructs reducing sanctions the and the oil its campaign new existing to Iran.

XX. to Slide Turning

are demand trading patterns. mentioned, grow and 'XX. increase in percentage ton product previously incorporates This As however, rates Sea ton in restrictions Product both due Red fundamentals healthy remain X.X% crude decline and are levels solid to expected and XXXX. Crude miles, at shifting supply miles continued X% to expected 'XX. to in

fleet is to be decline order hesitance VLCC The to due The XX. light contracted long-lived X.X% in and since restrictions similarly Slide in to attributed 'XX engine concerns XXXX. partially previous be to Turning negative COX expected expensive of to can enforced in vessels, order book. of assets technology Xx a total book age of X.X% is the over over beginning after fleet current or of The XXXX. XXXX. or order spree ordering years the are of Vessels XX is the fleet record XX in XX.X% vessels XXX which about the owners'

both longer review, levels. IMO healthy growth concluding for in regulations going moderate for at product across should oil Turning and the for the XXXX. global book forward. 'XX tanker trading age current routes tanker or years net continue is the X.X% the provide OFAC sector tanker healthy of the is combination expected XX.X% which rates to XX. XX favorably X.X% of is was to and fleet Product In board Slide be and growth older. fleet sanctions, to new the tanker crude earnings The in compares XX.X% demand, order product tankers and tanker The fleet, of XXXX

Please seasonally standing with review bulk on for the industry. started well at strong X. the dry QX Slide October turn a BDI Expectations XX X,XXX of a for to

to along congestion However, unwinding slowing the XX% X December. start. exports lowest in Atlantic asset XXX, index the classes its with quarter reached at some levels their ending All below contributed

enhanced of bauxite, and vast is approximately miles. to BDI in Atlantic come Most ore average down from up The Southeast additional Capes and majority about below expected average. both Asia. iron this Dry of led in down growth X.X% at XX% year-on-year, anticipated X.X% for trade increase with the in destined the by Panamaxes XX% approximately China XX-year ended grow and XXXX, exports [ yearly ] to ton Supers about X,XXX, at QX, bulk XX%. XX% is way its XXXX but

trade fundamentals With growth demand net have growth projected fleet weakened. 'XX, to outpace in supply and

book the vessels as growing positive trade, GHG and regulations to bauxite However, a order remain emission low relatively over-age factors. compared tightening

of growth fleet. of XXXX X% be is to of that IMO the XX.X% current owners due Net The Vessels tonnage which than higher is age the order will COX fleet, be book. are to in order rules. fleet remove XX XXXX uneconomic over turn total Please Slide book the about XX.X% stands years at slightly as expected to XX.

natural In the West Red growth in be ore for a and transiting freight market in concluding our demand should longer-haul bauxite dry pace balanced deliveries newbuilding Africa bulk Sea, to sector from freight resources currently of restrictions going trades as of slowing indicate. the review, forward iron futures by Southeast and Asia should low rates support

Slide on currently review Red which down peak the July rerouting X, the remained XXXX, back XX% a should to and Hope, matches of contrast Cape to firm rates, of XX% container of previously XXXX increase in the Sea Firm from remain which for container box level Shanghai In is Sea causing the Container the SCFI, turn away rates of industry. highest year. X,XXX, around approximately X,XXX this vessels to Index, Please time rates opening the era. the Freight of ship by the at continued about miles outside pandemic XX was mentioned TEU its the the disruption. index from of charter of duration Good and Red The

in However, Middle certain finally modify record East newbuilding liner settles, reverse continued companies should and when and the conflict eventually these gains the ordering growth fleet course Red of record and safe Sea. passage are

XX.X% pressure trade followed net rates is 'XX, 'XX, fleet X.X% eventually expected 'XX in downward. grow by Although in in growth to by of should X.X%

transits and with levels, geopolitical continuing return Canal sector be challenging to of book concluding and supply larger. to order In of XX,XXX uncertainties About fundamentals will current of stands years container vessels order is older. combined book the Turning at Suez elevated age XX.X% The the book. demand TEU previously for XX% should order against XX.X% or when Slide the XX review, normal XX. or fleet

world positive for However, of ongoing strength 'XX growth a the in 'XX. provide counterpoint for economy GDP and X.X% challenging a U.S.

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

Angeliki Frangou

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

Operator

with And first [Operator take from Nokta we Jefferies. our will Omar Instructions] question

Omar Nokta

Russia, sanctions, the update the detailed clearly uncertainty in it as comments, usual, East unknowns. conflicts tariffs, it's all front? seems the caused days. how Angeliki, and just much can operating Has to of terms And just lot in the always for or Middle depth. to of leading you sort give very that's these that of Thanks -- your been anything on you're business? this affected in your you in has capital but opening of that shareholder a How the mentioned all always terms case, brewing to or wanted obviously, change color deployment I it's rewards? you Any with like in in market

Angeliki Frangou

Omar. a is for thing think big I good that's very you solid question, saw The results XXXX.

a strategy, at don't you a and events how we as XXXX, have mean, lot they did that Looking Middle I factors, conflict, the whole -- but will be you have that can very see business it a Sea very be for economic company, a the resolved geopolitical important you Ukraine of the East Red have drivers with our important from just will Iran. and

administration, then And seen other. market haven't inefficient it Sea the an the tanker one yet. was. or I of the where days have substantially event on -- fleet the removed, it can example, additionally, -- give as meant we for kind X% last fleet. really can the then the And of the sector you These events That meant dark change opens, by Biden tariffs. can take, you have which much had on basically OFAC. That sanctions you of you was Red

revenue, our days dry upside. and lot the big the of really billion of pillar big contracted. of think, time Navios I contracted which to being So stability, $XXX X/X an days, to day market and capture be have to open a ability per forward bulk indexed is diversified benefit And your we a of of fleet, our breakeven are of a $X.X with the able with mean, see

So basically, you to watch. need

the applied, dry be can market how is sectors. significant these tell going you me how can bulk I tariffs of or X different will had unfold you minutes mean, tankers, containers. will have I or it either infinite can If quite possibilities. tell through there perspectives Ted differences events the on

Omar Nokta

tight Or interest Obviously, at it's Sea. -- still there of amazing Yes. the is then base a -- guess your Yes, and shipping in stuck elevated market moment from obviously, into you in capacity? definitely. freight we an not characterize in to the would Is benefit rates for of 'XX, Red diversification that I point relatively container all and the a customer where just in was chartering waned great XXXX and of level just vessel how terms maybe one the terms terms What come Yes, diversions activity. bracing of you're outcome. secure the is given of this habits? given uncertainty? still has chartering

Angeliki Frangou

No.

from majors companies, that appetite an seen is have the we was for liner Red If from you I view. changed not is -- Sea has duration. an take there over. it -- it mean anything the you have this There's tonnage. there all for basically, seen not appetite that And on see we

seen uncertainty. is We have there still lot of a the Canal not opening because Suez

the You and about of security cargo mean, I are vessels. talking crew,

you a see will not think see will quickly, environment, unless this... you don't a you I stable see that So on change

Omar Nokta

continue. sorry, ahead, go -- Okay

Angeliki Frangou

continue No, around Cape. will I saying the to still just it go was that

basically, still that. So you have

Operator

any it that closing additional I at And questions time. have further program we turn or this for to appears no remarks. back will Angeliki the now

Angeliki Frangou

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

Operator

Thank you. today's you presentation. for Thank conclude This does your participation.

at any time. disconnect may You

Navios Maritime Partners (NMM) 13 Feb 252024 Q4 Earnings call transcript