Navios Maritime Partners Q2 2024 Earnings Call Transcript

Quartr
Provided by Quartr
August 20, 2024

There are 6 speakers on the call.

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 Frangou Chief Operating Officer, Mr. Stratos Desypris Chief Financial Officer, Mrs. Eric Cironi and Vice Chairman, Mr.

Operator

Pet Petrone. As a reminder, this conference call is being webcast. To access the webcast, please go to the Investors section of Navios Partners' website at www.navios mlp.com. You'll see the webcasting link in the middle of the page, and a copy

Speaker 1

of the

Operator

presentation referenced in today's earnings conference call will also be found there. Now I will review the Safe Harbor statement. This conference call could contain forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Navios Partners. Forward looking statements are statements that are not historical facts. Such forward looking statements are based upon the current beliefs and expectations of Navios Partners' management and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward looking statements.

Operator

Such risks are fully discussed in Navios Partners' filings with the Securities and Exchange Commission. The information set forth herein should be understood in light of such risks. Navios Partners does not assume any obligation to update the information contained in this conference call. The agenda for today's call is as follows: 1st, Ms. Frangou will offer opening remarks Next, Mr.

Operator

Vysipis will give an overview on Navios Partners segment data. Next, Ms. Tironi will give an overview of Navios Partners' financial results. Then Mr. Petrone will provide an industry overview.

Operator

And lastly, we'll open the call to take questions. Now I turn the call over to Navios Partners' Chairwoman and CEO, Ms. Angeliki Frangou. Angeliki?

Speaker 2

Good morning to all of you, and thank you for joining us on today's call. I am pleased with the results for the Q2 of 2024. We reported revenue $342,200,000 and net income of $101,500,000 for the quarter. Earnings per common unit was $3.30 In the Q2, regional conflicts, particularly in the Red Sea, continued to impact marine transportation. The net result has been longer term miles for the similar volume of goods as people are avoiding the Red Sea and taking the route around Africa.

Speaker 2

It seems that the global inflation we all experienced post pandemic is subsiding. And while the U. S. And European economies are generally healthy, China's economy is challenged by a troubled real estate sector and fading domestic consumption. We are working carefully to determine whether China's economic woes weaken its otherwise voracious appetite for commodities.

Speaker 2

As you can imagine, with China's economic stalling, we have a cautious view. But we are also cautious because of geopolitical considerations. The conflict in Ukraine continues with no resolution in sight. The Middle East is on the edge, and things can go badly quickly if some sort of new equilibrium is not established. Accordingly, we continue to execute on our strategic initiatives by focusing on things that we can control, such as reducing leverage and modernizing our energy efficient fleet.

Speaker 2

Please turn to Slide 7. Navios Partners is a leading publicly listed shipping company with 179 vessels diversified in 15 asset classes in 3 sectors. We have $318,400,000 of cash on our balance sheet. I mentioned last quarter that we believe that we're in a gliding path to our target net leverage range of 20%, 25%. As you can see, our net LTV as of the end of the second quarter was 31.6%.

Speaker 2

Consequently, we turned some of our focus to returning capital to our unit holders. Under our dividend program, we pay a $0.20 dividend per unit annually. In addition, we have $100,000,000 unit repurchase program. Under this program, we purchased around 200,000 units through August 20, for approximately $10,000,000 In total, so far in 2024, we have returned around $13,000,000 of capital to our unitholders through dividend and unit repurchases. I would also mention that the repurchase of our unit was accretive.

Speaker 2

The estimated NAV of our unit based on our analyst average estimate is around $140 per unit. Our per unit repurchase price averaged at about $50 Thus, we captured an $18,000,000 discount to NAV, which represents a net accretion of $0.59 per unit. We have around $19,000,000 of availability under the unit repurchase program. The volume and timing of further repurchase will be subject to general market and business conditions, working capital requirements and other investment opportunities, among other factors. Please turn to Slide 8.

Speaker 2

We sold 3 vessels with an average age of 16.4 years in a record at keeping a modern fleet. The sales to 2 MR2 tankers and 1 post Panamax generated $64,600,000 in gross profit and are expected to be completed in the second half of twenty twenty four. In terms of acquisition, we invested around $500,000,000 in the following 7 vessels: 4 new building scrubber fitted Aframax LR2 tankers 2 new buildings methanol ready scrubber fitted 7,900 TEU container ships 1 Japanese built Ultra Handymax previously chartered in. We also took delivery of 4 previously announced newbuilding vessels, 35,300 TEU container ships fixed at an average rate of $37,050 net per day for 5.2 years and 1 Aframax Area 2 tanker fixed at 26,366 net per day for 5 years. We continue to add to our contracted revenue, which today is around 3,700,000,000 dollars In the Q2 and Q3 quarter today, 2024, we added $561,000,000 contracted revenue, of which $307,300,000 was from 6 newbuilding Aframax LR2 tankers fixed at an average rate of 28,067 dollars net per day for 5 years, dollars 125,600,000 was from 2 new buildings, 5,700 TEU Container ships, fixed at a rate of $43,000 net per day for 4 years and $128,100,000 from 4,250 TEU container ships sits at an average rate of 28,116 net per day for 2.1 years.

Speaker 2

Our operating cash flow potentially remains strong. For the second half of twenty twenty four, contracted revenue exceeds total cash expense by $87,000,000 plus we have 7,395 remaining open index days or 27% of available days for this period. Please turn to Slide 9. We provide an overview of the evolution of our fleet through selected metrics we feel are important. As you can see, our fleet is only slightly larger than it was in the year end 2022 after a significant modernization program.

Speaker 2

Our fleet age remains about the same. We maximize energy efficiency by maintaining a fleet of new 3 vessels with the latest technology while we patiently await the development of more carbon neutral technologies. In addition, as you can see from vessel values, the steel value of our fleet has improved by about 27% since the end of 2023. I would like to point out that much of this improvement has been from volatility in the container ship segment, which dropped significantly post pandemic and has recovered in 2024 as a primary benefit of the electric conflict and longer ton miles. I would also note that these three values do not give any consideration to our contracted revenue, which today is about $3,700,000,000 With a stable and performing fleet, our financial metrics are strong.

Speaker 2

Our adjusted EBITDA is up 2% over the first half of twenty twenty three and 22% over the first half of twenty twenty two. Our cash balance is approaching the reserve we have identified. Our current net leverage is 31.6%, a material improvement since the end of 2023 and then are passed to reach our target net LTZ of 20%, 25%. I'm also pleased to report that we have negotiated new management and administrative arrangements to our fleet with our existing managers. Stratos will take you through these details.

Speaker 2

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

Speaker 3

Thank you, Angeliki, and good morning all. Please turn to Slide 10. In August, Navios Partners renewed its management and administrative services agreements with Navios Ship Management Inc. The current agreements were largely renewed in 2019 and are expiring at the end of 2024. Based on the new agreements, Navioship Management will continue to provide administrative services based on Additionally, Navioship Management will provide technical, commercial and other services based on the following fee structure: $9.50 per day technical management fee for own vessels 1.25 percent commercial fee on gross revenues, S and P fee of 1% on purchase or sale price and fees for other specialized services, for example, supervision of newbuilding vessels.

Speaker 3

The new management and administrative services agreements will commence on January 1, 2025, for a term of 10 years renewing annually and is subject to a fee for termination or change of control. The agreements were negotiated and approved by the conference committee of the Board of Directors of Navios Partners. The conference committee used Watson, Fermi and Williams as their legal advisers and KPMG as their financial advisers who issued the firm's opinion. Please turn to Slide 11, which details our operating free cash flow potential for the second half of twenty twenty four. We fixed 73% of available days at a net average rate of $26,245 per day.

Speaker 3

In short, contracted revenue exceeds total cash expense by $87,000,000 And we have $7,395 remaining in overall index linked days that should provide substantial additional free cash flow. On the right side of the slide, we provide our 27,878 available days by vessel type, so that you can perform your own sensitivity analysis. Please turn to Slide 12. We are always renewing the fleet so that we maintain a young profile. It is part of our strategy to reduce our carbon footprint by modernizing our fleet, benefiting from new technologies and eco vessels with greener characteristics.

Speaker 3

In Q2 and Q3 to date, we took delivery of 4 vessels, 35,300 TEU container ships, all chartered out for an average of 5.2 years at an average net daily rate of $37,050 per day. 1 LR2 Aframax vessel, which has been chartered out for 5 years at $26,366 net per day. Following these deliveries, we have 28 additional newbuilding vessels delivered into our fleet through 2028, representing $1,800,000,000 of total acquisition price. In container ships, we have 8 vessels to be delivered with a total acquisition price of about $700,000,000 dollars We have mitigated this risk with long term credit worth of charges generating about $800,000,000 in revenue over a 6.7 year average charter duration. In the tanker space, we have 20 vessels to be delivered for a total price of approximately $1,100,000,000 We charter out 16 of these vessels for an average period of 5 years, generating aggregate contracted revenue of about $800,000,000 We have also been opportunistically replacing order vessels.

Speaker 3

In 2024, we have sold 7 vessels with an average age of 17.1 years for 157,200,000 At the same time, we exercised the purchase options on 5 chartering Japanese built vessels with an average age of 8 years for a total price of $142,000,000 Moving to Slide 13, we continue to secure long term employment for our fleet. In Q2 and Q3 to date, we have created about $560,000,000 additional contracted revenue. About $305,000,000 comes from our tanker fleet and about 255,000,000 dollars from our container ships. Our total contracted revenue amounts to $3,700,000,000 $1,400,000,000 relates to our tanker fleet, dollars 400,000,000 relates to our dry bulk fleet and $1,900,000,000 relates to our container ships. Charters are extending through 2,037 with a diverse group of quality counterparties.

Speaker 3

About 50% of our contracted revenue is expected to be earned in the next 2 years. I now pass the call to Eric Cironi, our CFO, which will take you through the financial highlights. Erichiromi?

Speaker 4

Thank you, Stratos, and good morning all. I will briefly review our unaudited financial results for the Q2 and first half of twenty twenty four. The financial information is included in the press release and is summarized in the slide presentation available on the company's website. Moving to the earnings highlights on Slide 14. Total revenue for the Q2 of 2024 slightly decreased to $342,000,000 compared to $347,000,000 for the same period in 2023 due to lower combined time charter equivalent rate and available days.

Speaker 4

Our combined time charter equivalent rate for the Q2 of 2024 stood at $23,384 per day. In terms of sector performance, the TCE for our drybulk fleet increased by 14% to to $17,959 per day compared to the same period in 2023. In contrast, our container tanker TCE rates were approximately 15% 10% lower, respectively. TCE rates for our containers stood at $30,239 per day and for our tankers at $27,816 per day for the Q2 of 2024. EBITDA net income and EPU were adjusted as explained in the slide footnote.

Speaker 4

Excluding these amounts, adjusted EBITDA for Q2 2024 decreased by $1,700,000 to 190 $1,000,000 compared to Q2 2023. Adjusted net income for Q2 2024 decreased by $8,000,000 to $94,000,000 compared to Q2 2023. The decrease was primarily due to the decrease in adjusted EBITDA and the $10,600,000 negative effect from depreciation and amortization despite the $4,300,000 positive effect from the reduction in interest rate expense and the increase in interest income. Total revenue for the first half of twenty twenty four increased by $4,200,000 to $661,000,000 compared to the same period in 2023. The increase in revenue was mainly a result of higher combined TCE rate despite lower available days.

Speaker 4

Our combined TCE rate for the first half of twenty twenty four was $22,448 per day. In terms of sector performance, PCE rate for our drybulk fleet increased by 21% to $16,090 per day compared to the same period in 2023. In contrast, our container and tanker PCE rates were approximately 15% 6% lower, respectively. TCE rates for our containers stood at $30,037 per day and for our tankers at $27,952 per day for the first half of twenty twenty four. Adjusted EBITDA for the first half of twenty twenty four increased by $7,000,000 to $354,000,000 compared to the same period last year.

Speaker 4

Adjusted net income for the first half of twenty twenty four decreased by $2,000,000 to $166,000,000 Despite the increase in adjusted EBITDA, our net income was negatively affected by $11,500,000 increase in the amortization of deferred drydock special share repos and other capitalized items, a $6,600,000 decrease in the positive impact of the amortization of unfavorable lease terms and a $3,600,000 increase in the depreciation and amortization of intangible assets. The above decrease was partially mitigated by a $9,400,000 decrease in interest expense and a $2,900,000 increase in interest income. Adjusted earnings per common unit for the first half of twenty twenty four were $5.38 As mentioned earlier, we have agreed to renew our management agreement expiring at the end of the year. Based on preliminary budgets for 2025 operating expenses, we don't expect a material financial impact from the terms of the new management agreement compared to the prior agreement. Turning to Slide 15, I will briefly discuss some key balance sheet data.

Speaker 4

As of June 30, 2024, cash and cash equivalents, including restricted cash and time deposits in excess of 3 months were 318,000,000 dollars During the first half of twenty twenty four, we paid $145,500,000 net of related debt of pre delivery installments and capitalized expenses under our newbuilding program. We concluded the sale of 4 vessels for $91,400,000 net adding about $6,700,000 cash after the repayment of the respective debt. Total long term borrowings, including the current portion net of deferred fees, increased to $1,970,000,000 mainly as a result of the delivery of 5 newbuilding pesos for which the respective delivery installments were paid with debt. Net debt to book capitalization decreased to 33.6%. Slide 16 highlights our debt profile.

Speaker 4

We continue to diversify our funding resources between bank debt and leasing structures, while 34% of our debt has fixed interest at an average rate of 5.6%. We also tried to mitigate part of the increased interest rate cost having reduced the average margin for our floating rate debt to 2.2%, while the average margin for the floating rate debt of our new business program is 1.8%. Our maturity profile is staggered with no significant volumes due in any single year. In June 2024, we entered into a new reducing revolving facility with a commercial bank for up to $95,000,000 in order to refinance the existing indebtedness of 2 vessels and to finance part of the acquisition cost of 4 drybulk vessels. The grade facility has 5 years term and bears interest at compounded sulfur plus 1, 75 basis points per annum.

Speaker 4

Turning to Slide 17, you can see our E and C initiatives. We continue to invest in new energy efficient vessels and reduce emissions through energy saving devices and efficient vessel operations. In February 2024, Navios, in collaboration with the Royalty Register, founded the Global Maritime Emission Reduction Center that will focus on optimizing the existing global fleet efficiency. Navios is a socially conscious group whose core values include diversity, inclusion and safety. We have strong corporate governance and clear code of ethics, while our Board is composed by majority independent directors.

Speaker 4

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

Speaker 1

Thank you, Eri. Please turn to Slide 19 for a review of current trade disruptions. The Red Sea entrance leading to the Suez Canal, a strategic maritime transport point, continues to operate at restricted transit levels. Red Sea disruptions have caused a rerouting of ships via the Cape of Good Hope, increasing costs and ton miles. Since first half of December, transits have reduced 61% for containers, 60% for dry bulk vessels and 53% for tankers.

Speaker 1

At Elmer Canal, daily transit restrictions continue to ease on the back of returning seasonal rains with transit anticipated to be near normal by month end. Please turn to Slide 21 for a review of the tanker industry. World GDP expected to grow by 3.2% in 2024 based on the IMF's July forecast. The IEA projects 900,000 barrels per day increase in world oil demand for 2024 and a 1,000,000 barrel per day increase in 2025. Chinese crude imports continue at healthy levels, averaging about 11,100,000 barrels per day in Q2, although imports are down about 5% in the same period last year.

Speaker 1

After a seasonally strong Q1, rates moderated slightly in Q2, but remained above long term averages with product tankers showing the most resilience. The OPEC crude exports cuts have been somewhat mitigated by an increased Atlantic Far East exports causing high volatility to VLCC rates in Q2. Turning to Slide 22. As previously mentioned, both crude and product rates remain strong across the board due to healthy supply and demand fundamentals and shifting trading patterns. Crude ton miles are expected to grow by 3.3% in 2024 and a further 2.2% in 2025.

Speaker 1

Product tanker ton miles are expected to grow by 7.5% in 'twenty four, but are expected to decline by 2.4% in 'twenty five. These percentages increase increases incorporate continued canal restrictions in 2024. Turning to Slide 23, VLCC net fleet growth is projected to be negative for both 2024 and 2025 and 0.1% negative and 1.7% negative, respectively. This decline can be partially attributed to owners' hesitance to order expensive long lived assets in light of macroeconomic uncertainty and engine technology concerns due to CO2 restrictions in force since the beginning of the year. The current low order book is only 7.3 percent of the fleet or 66 vessels, one of the lowest in 30 years.

Speaker 1

Vessels over 20 years of age are about 17% of the fleet or 156 vessels, which is over 2x the order book. Turning to Slide 24, projected Product Tanker net fleet growth is 1.8% for 2024 and 4.9% for 2025. The current Product Tanker order book is 19.9% of the fleet compares favorably with the 14.4 percent of the fleet, which is 20 years of age or older. In concluding the tanker sector review, tanker rates across the board continued historically healthy levels during the seasonally slow summer season. Combination of moderate growth and global oil demand, new longer trading routes for both crude and products as well as one of the lowest order books in 3 decades and the IMO 2023 regulations should provide for healthy tanker earnings going forward.

Speaker 1

Please turn to Slide 26 for the review of the drybulk industry. Q2 followed a similar pattern to Q1 as strong Atlantic exports of iron ore, coal and grain continued, resulting in the BDI averaging 18.48, slightly higher than the counter cyclically strong Q1. Dry bulk trade is expected to grow by 2.6% this year, enhanced by a 4.4% in ton miles growth, with the most of this growth anticipated to come from additional Atlantic exports of the above mentioned cargoes plus bauxite, the vast majority destined to China and Southeast Asia. Going forward, supply and demand fundamentals remain intact. Longer duration trades, the low order book and tightening GHG emissions regulations remain positive factors, which are reflected in the futures markets.

Speaker 1

Please turn to Slide 27. The current order book stands at 9.9% of the fleet, one of the lowest since the late '90s. Net fleet growth for 2024 is expected to be 3.1% and only 2.6% in 2025 as owners remove tonnage that will be uneconomical due to the IMO 2023 CO2 rules. Vessels over 20 years of age are about 9.8 percent of the fleet, which is approximately equal to the low order book. In concluding, our dry bulk set to review continuing demand for natural resources restrictions in transiting the Red Sea, war and sanction related longer haul trades combined with slowing pace of newbuilding deliveries all support freight rates going forward.

Speaker 1

Please turn to Slide 29 for a review of the container industry. Continued strong trade flow coupled with continued rerouting of vessels away from the Red Sea and around the Cape of Good Hope, closing time offs to increase by about 17% this year, pushing the SCFI to 3,714 in the last week of June. The SEFI reached 3,733 1 week later, the highest level outside the pandemic era before correcting moderately recently. Pressure for time charter rates should remain for the duration of the Red Sea disruption. However, continued record fleet growth should eventually modify these gains and reverse course when the Middle East conflict settles.

Speaker 1

Although trade is expected to grow by 5.1% in 2024 and 2.9% in 2025, Newbuilding deliveries in 2024 and 2025 will be equivalent to approximately 16% of the fleet after record net fleet growth of 10.2% this year followed by a 4.9% in 2025. This should continue to pressure rates for some time. Turning to Slide 30. Net fleet growth is expected to be 10.2% for 2024 and a further 4.9% for 2025. The current order book stands at 22.7% against 11.5% of the fleet 20 years of age or older.

Speaker 1

About 78 percent of the order book is for the 10 ks TEU vessels or larger. In concluding the container sector review, longer term supply and demand fundamentals remain challenged due to economic and geopolitical uncertainties and an elevated order book. However, trade growth improvements, increased ton miles and world GDP growth of 3.2% this year provides a counterpoint to a challenging second half of 2024. This concludes our presentation. I would like to turn the call over to Angeliki for her final comments.

Speaker 5

Angeliki?

Speaker 2

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

Speaker 1

Our first question will come from Omar Nakatow with Jefferies. Please go ahead.

Speaker 5

Thank you. Hi, guys. Good afternoon. Obviously, nice quarter, good amount of free cash flow generation and you continue to focus on fine tuning the fleet, selling ships and bringing in some new ones with contract cover. Obviously, big highlight is the buyback.

Speaker 5

You spent nearly $10,000,000 which is nice. Just kind of thinking about that, is there anything that triggered you putting that capital to work? Obviously, you highlight the disconnect between the share price and NAV. But is there anything that maybe instigated the buyback here recently? Is it comfort with the outlook?

Speaker 5

Is it the buildup of the backlog? What would you say kind of drove the decision to go after the buyback?

Speaker 2

Good morning, Omar. I think basically, we focus on our target. We are driving NNV by reinvesting in our business. You have seen that is clear from day 1. We bought over $500,000,000 of vessels, and we contracted them out about $560,000,000 over $560,000,000 of contracted revenue.

Speaker 2

But at the same time, we managed to achieve our goals or near achieving our goals, meaning we brought down our leverage to towards 31%. Our target is 20%, 25%, but our cash position is very close to what we were we have stated. So basically, we're driving NAV, which was like that by reinvesting, but we are also reaching our targets. We were able to really implement on a strategy we have articulated. And we start our repurchase program, having a good firepower on that and having an additional benefit for our investors by being additionally incremental accretion by repurchasing, capturing about $0.59 when we acquire our shares.

Speaker 2

So this is a net net good result.

Speaker 5

Yes, certainly. Well, thanks Angeliki for that. And just a couple more follow ups for me. Just kind of on the orders. The LO2s that you just ordered, you're continuing to pay somewhere around that $66,000,000 and that compares to maybe market valuations that suggest new buildings are closer to high 70s or close to 80,000,000 dollars Are these options that you've been able to exercise?

Speaker 5

Is that what's driving the cheaper price relative to what perception is of what a new building costs?

Speaker 2

You're exactly right. I mean, one of the things we do, we are disciplined on purchasing. We like to focus on a quality sheet, just build on the quality vessel and create options for us. And I think you have seen that we have been implementing on this strategy for quite some time, giving us an advantage. Also, we are able to we must when you order a vessel is actually getting a you have an obligation.

Speaker 2

So marking them to become an asset, we need to fix it and have that buy on. And I think we are trying to be very focused on that.

Speaker 5

Yes. Yes. And then obviously, the charter is now, it looks like a little over half maybe over half a 50% payback over the term of the 5 year charters. What's interesting, I guess, is the 27,900 TEU new buildings that you just ordered, those are delivering in 'twenty six and seem to have almost a 50% payback over just the first or basically the 4 year charter. So a pretty attractive payback.

Speaker 5

I guess when we think about that, you've been very busy being able to acquire tonnage, put it on contract, but these container new builds kind of stand out as having a sooner payback over just a 4 year term. What do you think is any color you can give on what's driving that? I guess, 1, is do those numbers make sense that I referenced that quick of a payback? But 2, is this a repeatable type of transaction in containers? Or was this one of those one offs we had an opportunity to take advantage of some 26 slots at a good rate?

Speaker 2

We build on our relationship with the yard. So this is not repeatable not only on the particular deal, but we are repeatable deals if you see over different CPRs and over different asset classes. We care about where we order. We care about creating the relationships on the and the designs of the vessel. If you remember, we order on the same kind of the type of vessel.

Speaker 2

We had done the LNG vessel vessels. And we repeat on the knowledge we have on the CPR on the type of vessel with an opportunity to match with the right chartering opportunity. So this is a continuous effort we have. And a lot of deals, you may never see them. I mean, this is not a one off.

Speaker 2

Off. By the way, also the Aframaxes, the LR2s, our payback is quite significant. So we are very careful on both sides because at the end of the story, you need to go at historical averages. We like to make sure that with the charter we have we bring the value, the residual value down.

Speaker 5

Thank you. Thanks Angeliki, that's helpful. Appreciate the color. I'll turn it over.

Speaker 1

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

Speaker 2

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

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Key Takeaways

  • In Q2 2024 Navios reported $342.2M revenue, $101.5M net income and earnings per unit of $3.30.
  • With $318.4M in cash and net leverage at 31.6% (targeting 20–25%), the company returned ~$13M to unitholders via the $0.20 annual dividend and ~$10M of unit repurchases accretive by capturing an $18M NAV discount.
  • Navios continues its fleet modernization by selling three ~16-year-old vessels for a $64.6M gross profit and investing ~$500M in seven newbuilding and modern tonnage, lifting total contracted revenue to ~$3.7B.
  • Longer trade routes around Africa due to Red Sea conflicts, subsiding post-pandemic inflation and a cautious outlook on China and geopolitical risks are shaping shipping demand and operational strategies.
  • Industry fundamentals remain healthy—especially for tankers and dry bulk amid rerouted ton-mile growth and low order books—while record container deliveries may pressure rates once Middle East disruptions ease.
AI Generated. May Contain Errors.
Earnings Conference Call
Navios Maritime Partners Q2 2024
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