Frangou: “The Past 18 Months Have Been Surprisingly Positive For Shipping”

Navios Maritime Partners L.P., an international owner and operator of dry cargo and tanker vessels, today reported its financial results for the third quarter and nine month period ended September 30, 2024.

Angeliki Frangou, Chairwoman and Chief Executive Officer of Navios Partners stated, “I am pleased with the results for the third quarter of 2024 and the nine month period ended September 30, 2024. For the quarter, we reported revenue and net income of $340.8 million and $97.



8 million, respectively. For the first nine months, we reported revenue and net income of $1.0 billion and $272.

6 million, respectively. Earnings per common unit were $3.20 for the quarter and $8.

87 for the first nine months.” Angeliki Frangou continued, “This past 18 months has been surprisingly positive for shipping given sputtering growth from China, weak European economies and two armed conflicts. The Ukrainian conflict, now in its third year, is evolving dangerously while the war in Israel, now in its second year, has expanded to Lebanon and includes the direct exchange of fire between Iran and Israel.

We are monitoring these intensifying risks and calibrating our business activity by continuing to maintain a youthful fleet, increasing contracted revenue, now at $3.9 billion, and targeting net leverage in the range of 20-25%, while also returning capital to our unitholders.” As of October 29, 2024, pursuant to its previously announced common unit repurchase program, Navios Partners repurchased 351,125 common units for an aggregate cash consideration of $18.

3 million. As of October 29, 2024, there were outstanding 29,833,263 common units. The Board of Directors of Navios Partners declared a cash distribution for the third quarter of 2024 of $0.

05 per unit. The cash distribution will be paid on November 15, 2024 to unitholders of record as of November 12, 2024. The declaration and payment of any further dividends remain subject to the discretion of the Board of Directors and will depend on, among other things, Navios Partners’ cash requirements as measured by market opportunities and restrictions under its credit agreements and other debt obligations and such other factors as the Board of Directors may deem advisable.

Acquisition of vessels Q3 – Q4 2024 QTD Acquisition of two methanol-ready and scrubber-fitted 7,900 TEU newbuilding containerships for $212.0 million During the third quarter of 2024, Navios Partners agreed to acquire two methanol-ready and scrubber-fitted 7,900 TEU newbuilding containerships, from an unrelated third party, for an aggregate purchase price of $212.0 million.

The vessels are expected to be delivered into Navios Partners’ fleet during the first half of 2027. Sale of vessels Q3 – Q4 2024 QTD $25.9 million gross sale proceeds from sale of two dry bulk vessels with average age of 19.

0 years In August 2024 and September 2024, Navios Partners agreed to sell one 2006-built kamsarmax and one 2005-built panamax to unrelated third parties, respectively, for aggregate gross sale proceeds of $25.9 million. The sales were completed in October 2024.

Three newbuilding vessels delivered Q3 – Q4 2024 QTD In August 2024 and October 2024, Navios Partners took delivery of two 2024-built 5,300 TEU containerships, which have been chartered-out at an average rate of $37,282 net per day for an average period of 5.3 years. In October 2024, Navios Partners took delivery of a 2024-built aframax/LR2 tanker, which has been chartered-out at $25,576 net per day for a period of five years.

$421.7 million contracted revenue agreed Q3 – Q4 2024 QTD; $3.9 billion total contracted revenue Navios Partners has entered into new long-term charters which are expected to generate revenue of $421.

7 million. Two 7,900 TEU newbuilding containerships have been chartered-out for a period of five years at $43,247 net per day and are expected to be delivered into Navios Partners’ fleet during the first half of 2027. Five 4,250 TEU containerships have been chartered-out for an average period of 2.

3 years at an average rate of $34,915 net per day. Three MR2 product tankers have been chartered-out for a period of three years at $24,544 net per day. One VLCC tanker has been chartered-out for a period of 2.

1 years at $44,438 net per day. Including the above long-term charters, Navios Partners has $3.9 billion contracted revenue through 2037.

In September 2024, Navios Partners entered into a new credit facility with a commercial bank for a total amount up to $130.0 million (divided into two tranches) in order to refinance the existing indebtedness of six of its vessels (tranche A) and to finance part of the acquisition cost of one newbuilding aframax/LR2 tanker (tranche B). The credit facility: (i) matures five years after each drawdown date; and (ii) bears interest at Term Secured Overnight Financing Rate (“Term SOFR”), plus 175 bps per annum and 150 bps per annum for drawn amounts of tranche A and tranche B, respectively.

During the third quarter of 2024, the amount of $81.2 million in relation to tranche A was drawn. In September 2024, Navios Partners entered into a new credit facility with a commercial bank for a total amount up to $48.

0 million (divided into two advances) in order to refinance the existing indebtedness of three of its vessels (advance A) and to finance part of the acquisition cost of one ultra-handymax (advance B). The credit facility: (i) matures four years and six years after each drawdown date of advance A and advance B, respectively; and (ii) bears interest at Term SOFR plus 70 bps per annum for any part of the loan secured by cash collateral and 175 bps per annum for the remaining drawn amount. During the third quarter of 2024, the amount of $30.

0 million in relation to advance A was drawn. Navios Partners owns and operates a fleet comprised of 73 dry bulk vessels, 50 containerships and 56 tankers, including 19 newbuilding tankers (13 aframax/LR2 and six MR2 product tanker chartered-in vessels under bareboat contracts), that are expected to be delivered through the first half of 2028, and eight newbuilding containerships (two 5,300 TEU containerships, two 7,700 TEU containerships and four 7,900 TEU containerships), that are expected to be delivered through the first half of 2027. As of October 29, 2024, Navios Partners had entered into short, medium and long-term time charter-out, bareboat-out and freight agreements for its vessels with a remaining average term of 2.

2 years. Navios Partners has currently fixed 80.7% and 54.

3% of its available days for the fourth quarter of 2024 and for all of 2025, respectively. Navios Partners expects contracted revenue of $288.9 million and $870.

8 million for the fourth quarter of 2024 and for all of 2025, respectively. The average expected daily charter-out rate for the fleet is $26,052 and $27,921 for the fourth quarter of 2024 and for all of 2025, respectively. Three month periods ended September 30, 2024 and 2023 Time charter and voyage revenues for the three month period ended September 30, 2024 increased by $17.

6 million, or 5.4%, to $340.8 million, as compared to $323.

2 million for the same period in 2023. The increase in revenue was mainly attributable to the increase in Time Charter Equivalent (“TCE”) rate. For the three month periods ended September 30, 2024 and 2023, time charter and voyage revenues were positively affected by $2.

4 million and negatively affected by $9.7 million, respectively, relating to the straight line effect of the containership and tanker charters with de-escalating rates. The TCE rate increased by 7.

0% to $23,591 per day, as compared to $22,052 per day for the same period in 2023. The available days of the fleet slightly decreased by 1.5% to 13,552 days for the three month period ended September 30, 2024, as compared to 13,759 days for the same period in 2023 mainly due to the sale of vessels, partially mitigated by the deliveries of newbuilding vessels.

EBITDA of Navios Partners for the three month periods ended September 30, 2024 and 2023 was affected by the items described in the table above. Excluding these items, Adjusted EBITDA increased by $21.7 million to $195.

4 million for the three month period ended September 30, 2024, as compared to $173.7 million for the same period in 2023. The increase in Adjusted EBITDA was primarily due to a: (i) $17.

6 million increase in time charter and voyage revenues; (ii) $5.3 million increase in other income, net; (iii) $5.0 million decrease in time charter and voyage expenses, mainly due to the decrease in bunker expenses arising from the decreased days of freight voyages in the third quarter of 2024 and bareboat and charter-in hire expenses of the dry bulk fleet; and (iv) $1.

5 million decrease in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items). The above increase was partially mitigated by a: (i) $6.1 million increase in vessel operating expenses mainly due to the change in the composition of our fleet with deliveries and sale of vessels and the adjustment of the fixed daily fee in accordance with our management agreements; and (ii) $1.

6 million increase in general and administrative expenses in accordance with our administrative services agreement. Net Income for the three month periods ended September 30, 2024 and 2023 was affected by the items described in the table above. Excluding these items, Adjusted Net Income increased by $13.

9 million to $96.5 million for the three month period ended September 30, 2024, as compared to $82.6 million for the same period in 2023.

The increase in Adjusted Net Income was primarily due to a: (i) $21.7 million increase in Adjusted EBITDA; and (ii) $0.1 million increase in interest income.

The above increase was partially mitigated by a: (i) $7.1 million negative impact from the depreciation and amortization, that primarily resulted from a $3.6 million increase in the amortization of deferred drydock, special survey costs and other capitalized items, a $3.

2 million increase in the depreciation and amortization of intangible assets and a $0.3 million decrease in the amortization of unfavorable lease terms; and (ii) $0.8 million increase in interest expense and finance cost, net.

Nine month periods ended September 30, 2024 and 2023 Time charter and voyage revenues for the nine month period ended September 30, 2024 increased by $21.9 million, or 2.2%, to $1,001.

5 million, as compared to $979.6 million for the same period in 2023. The increase in revenue was mainly attributable to the increase in TCE rate.

For the nine month periods ended September 30, 2024 and 2023, time charter and voyage revenues were positively affected by $4.9 million and negatively affected by $30.2 million, respectively, relating to the straight line effect of the containership and tanker charters with de-escalating rates.

The TCE rate increased by 2.6% to $22,830 per day, as compared to $22,242 per day for the same period in 2023. The available days of the fleet slightly decreased by 1.

6% to 40,590 days for the nine month period ended September 30, 2024, as compared to 41,239 days for the same period in 2023 mainly due to the sale of vessels, partially mitigated by the deliveries of newbuilding vessels. EBITDA of Navios Partners for the nine month periods ended September 30, 2024 and 2023 was affected by the items described in the table above. Excluding these items, Adjusted EBITDA increased by $28.

9 million to $549.4 million for the nine month period ended September 30, 2024, as compared to $520.5 million for the same period in 2023.

The increase in Adjusted EBITDA was primarily due to: (i) a $21.9 million increase in time charter and voyage revenues; (ii) an $8.6 million decrease in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); (iii) a $7.

1 million decrease in other expense, net; and (iv) a $4.7 million decrease in time charter and voyage expenses, mainly due to the decrease in bareboat and charter-in hire expenses of the dry bulk fleet. The above increase was partially mitigated by a: (i) $10.

6 million increase in vessel operating expenses mainly due the change in the composition of our fleet with deliveries and sale of vessels and the adjustment of the fixed daily fee in accordance with our management agreements, partially mitigated by the sale of vessels; and (ii) $2.8 million increase in general and administrative expenses in accordance with our administrative services agreement. Net Income for the nine month periods ended September 30, 2024 and 2023 was affected by the items described in the table above.

Excluding these items, Adjusted Net Income increased by $11.7 million to $262.2 million for the nine month period ended September 30, 2024, as compared to $250.

5 million for the same period in 2023. The increase in Adjusted Net Income was primarily due to: (i) a $28.9 million increase in Adjusted EBITDA; (ii) an $8.

6 million decrease in interest expense and finance cost, net; and (iii) a $3.0 million increase in interest income. The above increase was partially mitigated by a $28.

8 million negative impact from the depreciation and amortization, that primarily resulted from a $15.1 million increase in the amortization of deferred drydock, special survey costs and other capitalized items, a $6.9 million decrease in the amortization of unfavorable lease terms and a $6.

8 million increase in the depreciation and amortization of intangible assets. Source: Navios Maritime Partners L.P.

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