Navios Maritime Partners Q1 2025 Earnings Report

Navios Maritime Partners EPS Results

• Actual EPS: $1.58
• Consensus EPS: $1.62
• Beat/Miss: Missed by -$0.04
• One Year Ago EPS: $2.32

Navios Maritime Partners Revenue Results

• Actual Revenue: $274.10 million
• Expected Revenue: $254.00 million
• Beat/Miss: Beat by +$20.10 million
• YoY Revenue Growth: -4.60%

Navios Maritime Partners Announcement Details

• Quarter: Q1 2025
• Date: 5/7/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, May 7, 2025
• Conference Call Time: 8:30AM ET

Navios Maritime Partners (NYSE:NMM) owns and operates dry cargo vessels in Asia, Europe, North America, and Australia. The company offers seaborne transportation services for a range of liquid and dry cargo commodities, including crude oil, refined petroleum, chemicals, iron ore, coal, grain, fertilizer, and containers, as well as charters its vessels under short, medium, and longer-term charters. Navios Maritime Partners L.P. was founded in 2007 and is based in Monaco.

Navios Maritime Partners Q1 2025 Earnings Call Transcript

Key Takeaways

• Navios Partners reported Q1 2025 revenue of $304.1 million, EBITDA of $147.6 million, net income of $41.7 million and earnings per unit of $1.38.
• The company has a $3.4 billion contracted revenue backlog and secured contracted revenue for the remaining nine months of 2025 that exceeds total cash expenses by $12.5 million, enhancing cash flow visibility.
• Fleet renewal continued with the sale of three older vessels for ~$35 million and delivery of four newbuilds (two Aframax/LR2 tankers and two LNG dual-fuel 7,700 TEU containerships) under long-term charters, keeping the fleet at 174 vessels with a 9.9-year average age.
• Liquidity remains strong with $343 million in cash, net loan-to-value reduced to 35.2%, and ~30 percent of long-term debt fixed at a 5.5 percent rate through hedging and financing arrangements.
• Capital return programs delivered $17.6 million in Q1 via dividends and buybacks (repurchasing ~3 percent of the public float), with $58.9 million still available under the unit repurchase plan.

Presentation

[Operator]

Thank you for joining us for Navios Maritime Partners First Quarter twenty twenty five 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, Ms. Zerifili Tironi Chief Trading Officer, Mr.

[Operator]

Vincent van der Valle. 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.naviosmlp.com. You'll see the webcasting link in the middle of the page and a copy of the presentation referenced in today's earnings conference call will also be found there. Now I will review the Safe Harbor statement.

[Operator]

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. Such risks are more 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.

[Operator]

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: First, Ms. Frango will offer opening remarks Next, Mr. Decipez will give an overview of Navios Partners segment data. Next, Ms.

[Operator]

Tironi will give an overview of Navios Partners financial results. Then Mr. Van de Valle will provide an industry overview. And lastly, we'll open the call to take questions. Now I turn the call over to Navios Partners' Chairwoman and CEO, Mrs.

[Operator]

Angeliki Frangou. Angeliki? Good morning, and thank

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

you all for joining us on today's call. I am pleased with the results for the first quarter of twenty twenty five, in which we reported revenue of $304,100,000 and EBITDA of $147,600,000 and net income of $41,700,000 Earnings per common unit were $1.38 for the quarter. The economic environment over the past month has been particularly uncertain with the global expectations being driven by the unprecedented U. S. Tariff proclamation followed by revisions, pauses and exceptions.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

In response, sentiment and variance in The U. S. And other financial markets were extraordinarily volatile, recovering only last week in The U. S. To the pre tariff announcement levels.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

I would add that the tariff announcements conceal an underlying worry due to the wars in Ukraine and The Middle East. I remarked last quarter that we are waiting for more information as the U. S. Administration did not provide a concrete tariff roadmap. In general, this continues to be the case as the U.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

S. Administration tactically maneuvers towards a tariff regime furthering its policy aspiration relating to national security and fiscal austerity. However, a faint outline is starting to emerge. While the future may be challenging, it appears the potential impact on maritime transportation may not be as severe as we initially feared. And I note that during this recent period of uncertainty, the spot rate market has generally been healthy, although uneven between the maritime sectors.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

Prepaying for difficult periods is part of our job requirement. In prior periods, when settlement allowed, we enter into long term charter arrangement. We currently have a contract backlog of 3,400,000,000 In addition, because of this and other measures, our contracted revenue is $12,500,000 larger than our total cash expenses for the remaining nine months of 2025. We are also actively managing our interest rate risk. Today, through fixed cost financing and hedging arrangements, around 30% of our long term debt has a fixed interest rate of 5.5%.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

Please turn to Slide six. Navios Partners is a leading publicly listed shipping company with 174 vessels. These vessels have an average age of 9.9 and are in three different segments and 16 asset classes. As you can see, the vessel value is approximately equal in each sector. We ended the first quarter with $343,000,000 of cash on our balance sheet.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

Our net LTV as of the end of the quarter Q1 was calculated at 35.2%, slightly up from last quarter. Please turn to Slide seven. We sold three vessels with an average age of 19.1 for around $35,000,000 We also received four previously announced newbuilding vessels with employment, two Aframax LR2 tankers, which were fixed at an average rate of $26,349 net per day for five years and two LNG dual fuel 7,700 TEU container ships, which were fixed at an average rate of 41,753 net per day for twelve years. For the remaining nine months of 2025, contracted revenue exceeds total cash expense by $12,500,000 We have 14,117 remaining open and index days, 34% of our available days, so we have significant cash generative opportunities. Please turn to Slide eight, where we outlined our return of capital program.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

Under our dividend program, we paid $0.20 dividend per unit annually. In the first quarter of twenty twenty five, we paid a dividend of $1,000,000 which is slightly less than the previous year's run rate because of our buyback program. In addition, so far in 2025, we repurchased 423,984 common units for $16,100,000 Including dividends, we returned a total of $17,600,000 in 2025. Under the entire unit repurchase program, we invested $41,100,000 in 913,900 and thirty nine common units purchasing around 3% of Navios Partners public float as measured when the program was launched. We estimate that we effectively returned $2.9 per unit of value through these purchases.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

As of 05/01/2025, we had $58,900,000 available under our unit repurchase program. The volume and time of further repurchases will be subject to general market and business condition, working capital requirements and other investment opportunities among other factors. Please turn to Slide nine, where we focus on how we execute our strategy in a period of increasing uncertainty. At the top left of the slide, we outline the challenges we have been addressing. I can share that we assemble our team regularly to dive into the details of emerging information in an attempt to understand how various risks are evolving.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

While extreme outcomes remain possible, the market has been generally adapted to this entitlement and the underlying rate market relatively healthy. On the top right part of the slide, we underline how we are addressing the uncertain market and the things we have accomplished. As noted earlier, the $3,400,000,000 in contracted revenue stems from our action in past markets where sentiment allowed us to enter into long term charters. This is not the case now, but we remain alert for future possibilities. We are also focused on our interest rate risk and we have been hedging this risk with hedges that will never require posting additional collateral.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

At the bottom of the slide, we continue to provide a view of the evolution of our fleet through selected metrics. As you can see, our fleet size and age are about the same as they were on the year end 2022. However, about 26% of our fleet was acquired in the past four years. So we maximize energy efficiency by maintaining a fleet of useful vessels with the latest technology. On the financial side, we focus on deleveraging and reduced net LTV from 45% at the end of twenty twenty two to 35.2% at the end of the first quarter twenty twenty five.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

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

[Efstratios Desypris, COO at Navios Maritime Partners]

Thank you Angeliki and good morning all. Please turn to Slide 10, which details our operating free cash flow potential for the remaining nine months of 2025. We fixed 66% of available days at a net average rate of $25,703 per day. Contracted revenue exceeds our total cash expense by about $12,500,000 and we have 14,117 remaining OPER or index linked days that should provide substantial additional cash flow. So that you can perform your own sensitivity analysis, on the right side of the slide, we provide our forty one thousand nine hundred and one available days per vessel type.

[Efstratios Desypris, COO at Navios Maritime Partners]

Please turn to slide 11. We are constantly renewing our fleet in order to maintain a junk profile. We reduced our carbon footprint by modernizing our fleet, benefiting from newer technologies and advanced environmental friendly features. In 2025, we took delivery of four vessels, two LR2Aframax vessels that have been chartered out for five years at an average of $26,349 net per day and two seven thousand seven hundred TEU LNG dual fuel container ships that have been chartered out for twelve years at an average rate of 41,753 net per day. Following these deliveries, we have 21 additional newbuilding vessels delivering to our fleet through 2028, representing $1,400,000,000 of investment.

[Efstratios Desypris, COO at Navios Maritime Partners]

In containerships, we have four vessels to be delivered with total acquisition price of about $400,000,000 We have mitigated this risk with long term credit worthy charters expected to generate about $300,000,000 in revenue over a five year average charter duration. In tankers, we have 17 vessels to be delivered for a total price of approximately $1,000,000,000 We charter out 13 of those vessels for an average period of five years, expected to generate aggregate contracted revenue of about 600,000,000.0 We have also been opportunistically replacing older vessels. In 2025, we sold three vessels with an average age of nineteen point one years for about $35,000,000 Moving to slide 12, we have a strong backlog of contracted revenue that we build over the previous years that create visibility in an uncertain environment. Our total contracted revenue amounts to $3,400,000,000 1 point 4 billion dollars relates to our tanker fleet, $0,200,000,000.0 relates to our drybulk fleet and $1,800,000,000 relates to our containerships. Charters are extending through 02/1937 with a diverse group of quality counterparties.

[Efstratios Desypris, COO at Navios Maritime Partners]

I now pass the call to Eric Cironi, our CFO, who will take you through the financial highlights. Eddy?

[Erifili Tsironi, CFO at Navios Maritime Partners]

Thank you, Stratos, and good morning all. I will briefly review our unaudited financial results for the first quarter ended 03/31/2025. The financial information is included in the press release and summarized in the slide presentation available on the company's website. Moving to the earnings highlights on Slide 13. Total revenue for the first quarter of twenty twenty five decreased by 4.6% to $3.00 $4,000,000 compared to $319,000,000 for the same period in 2024 due to lower fleet time charter equivalent rate, available days and revenue from freight voyages.

[Erifili Tsironi, CFO at Navios Maritime Partners]

Our fleet time charter equivalent rate for the first quarter of twenty twenty five decreased by 1.1% to 21,271 per day and our available days decreased by 0.6 to thirteen thousand four hundred and fifty six days compared to Q1 twenty twenty four. In terms of sector performance, the TCE rate for our container fleet increased by 2.2% to $30,501 per day. In contracts, the TCE rate for our dry bulk and tanker fleet was 10.57.1% lower respectively at $12,722 per day for drybulk and $26,082 per day for tanker vessels. EBITDA was adjusted as explained in the slide footnote. Excluding these amounts, adjusted EBITDA for Q1 twenty twenty five decreased by $11,000,000 to $154,000,000 compared to Q1 twenty twenty four.

[Erifili Tsironi, CFO at Navios Maritime Partners]

The decrease is driven primarily by $14,000,000 ROAA revenue, a $7,000,000 increase in vessel operating expenses, mainly due to a 4.8% increase in our OpEx days and the change in the composition of our fleet partially mitigated by a $12,000,000 decrease in time charter and voyage expenses due to less freight voyages. Adjusted net income for Q1 twenty twenty five was $48,000,000 compared to $71,000,000 in Q1 twenty twenty four. Adjusted net income decreased by 24,000,000 mainly due to an $11,000,000 decrease in adjusted EBITDA, a $9,000,000 increase in depreciation and amortization and a $4,000,000 increase in interest expense and finance cost net. Earnings and adjusted earnings per common unit were $1.38 and $1.58 respectively. Turning to Slide 14, I will briefly discuss some key balance sheet data.

[Erifili Tsironi, CFO at Navios Maritime Partners]

As of March 2025, cash and cash equivalents, including restricted cash and time deposits in excess of three months, were $343,000,000 During the quarter, we paid $33,000,000 under our newbuilding program, net of debt. We concluded the sale of one vessel for $8,000,000 adding about $1,000,000 cash after debt repayment. Long term borrowings, including the current portion net of deferred fees remained in line with 2020 '4 year end figures at $2,100,000,000 despite the delivery of three newbuilding vessels during the quarter. Net debt to book capitalization improved to 34.1. Slide 15 highlights our debt profile.

[Erifili Tsironi, CFO at Navios Maritime Partners]

We continue to diversify our funding sources between bank debt and leasing structures. Following our $88,000,000 interest rate hedge in Q1 twenty twenty five, '30 percent of our debt and bareboat liabilities have fixed interest at an average all in rate of 5.5%. We also have mitigated part of the increased interest rate cost by reducing the average margin for our drawn floating rate debt and bareboat liabilities to 1.9%. I would like to note that the average to nine margin for the undrawn floating rate debt of our new building program is 1.4%. Our maturity profile is target with no significant balloons due in any single year. In Q1 twenty twenty five, Navios Partners

[Erifili Tsironi, CFO at Navios Maritime Partners]

agreed to extend the maturity of a sale and leaseback facility for 11 vessels until 2029 at improved terms. I now pass the call to Vincent Van de Waile, Navios Partners' Chief Trading Officer to take you through the industry section. Vincent?

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

Thank you, Eri. Please turn to Slide 17. Visibility into the global trade has been clouded by many tariff announcements. It appears that 3.7% of the global trade will be subject to declared tariffs. Announced tariffs are not expected to have a significant effect on tankers and dry bulk trade apart of grains.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

The heaviest tariff impacts will be on containers, cars and LPG. We will continue to monitor how further developments affect global trading. Please turn to Slide 18. U. S.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

Tariffs on Chinese imports rose to 145% on a wide range of goods as of early April. China retaliated with 125% tariffs. The U. S. Also imposed tariffs of 10 to 50% on most other countries.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

On April 9, the U. S. Paused all tariffs for ninety days except for the tariffs on China. The U. S.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

Is currently negotiating tariffs on a country by country basis. On April 17, USTR released a revised Section three zero one fee proposal targeting Chinese vessel operators and Chinese built ships with extra port fees when calling U. S. Ports. These fees are to take effect from October 2025.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

Please turn to Slide 19 for a review of the current trade disruptions. The Red Sea entrance leading to the Suez Canal is a strategic maritime transit point. It continues to operate at restricted transit levels. Through the April, transit through the Suez Canal were lower than the 24 average. Red Sea disruptions have caused rerouting of ships via the Cape Of Good Hope, raising costs and distances last year.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

Should the situation remain unchanged during the rest of 2025, we believe that total TON TEU miles are projected to experience modest improvements across all sectors. Before we move to the analysis per sector, please be reminded that the analysis that follows may be materially different depending on the final outcome of tariff discussions. Please turn to Slide 21 for the review of the drybulk industry. The seasonal lower Q1 developed due to weather patterns, cyclones and typical seasonality. Rates for all three asset classes declined Q1 twenty five versus Q1 twenty four.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

And in Q1, average revenue declined 46% for Capes, 30 8 Percent for Panamaxes and 32% for Supra. Going into Q2, the spot market started to recover due to seasonally higher volumes of iron ore, bauxite and grain. Dry bulk trade is expected to decline by 1.2% in 2025, while ton miles are expected to decrease by 0.4%. Ton miles are positively affected by Atlantic export of iron ore and bauxite from West Africa, destinated primarily for China and Southeast Asia, which cushion the fall in overall demand and supporting Capes in particular. Please turn to Slide 22.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

The current order book stands at 10.3% of the fleet. Net fleet growth is expected to be 3.1% in 2025 as owners remove tonnage that will be uneconomical due to the 2023 CO2 rules. Vessels over 20 years of age are about 11.5% of the total fleet, which is slightly higher than the order book. In concluding our dry bulk sector review, slowing demand growth for natural resources may be balanced by restrictions in transiting the Red Sea, long haul trades of bauxite and iron ore from West Africa to Asia and a low pace of new building deliveries. This should support higher freight rates as the freight future market currently indicates, particularly for Capes.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

Please turn to Slide 24 for the review of the tanker industry. World GDP is expected to grow by 2.8% in 2025 based on the IMF April forecast. The IEA projects 700,000 barrels per day increase in global old amount in 2025. Chinese crude imports slowed in 2024, averaged about 11,100,000 barrels per day, down 2% or 200,000 barrels per day compared to 2023. Imports in March were 12,000,000 barrels per day, 4% year on year, leaving Q1 imports at 11,000,000 barrels per day, slightly down over 24,000,000.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

Crude tanker earnings have remained healthy in recent weeks after firming in February with support from Asian refineries that replaced Russian and Iranian barrels with non sanctioned imports. The geopolitical backdrop remained fluent with tighter sanctions, uncertainty regarding Red Sea passage, possible Russian Ukraine war resolution and consequences from the tariff war. In addition, OPEC plus announced the unwinding of their 2,200,000 barrels per day voluntarily export cuts from 04/01/2025, where after a series of upward revisions announced the increase in production by about 1,000,000 barrels per day. The BTTI averaged nine zero five for Q1 twenty twenty five, '5 percent down on Q4 twenty twenty four, while the BCTI averaged seven zero six, some 24% above Q4. However, rates remained in line with the long term averages.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

Overall, the political environment along with the normal seasonality, reduction of the fleet due to the sanctioned vessels and a lower global oil inventories should support crude freight rates. Please turn to Slide 25. On January 1025, the U. S. Office of Foreign Assets Control, OFAC, issued new sanctions targeting Russian oil revenue with The U.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

S. Adding 186 ships, mostly trading Russian oil to its sanctions list. OFAC's actions more than doubled the sanctioned vessels. The total sanctioned vessels is now about 10% of the tanker fleet. Both China and India have said that they will not allow OFAX sanctioned vessel to discharge.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

VLCC spot rates from Middle East to China as of April 29 are about 125% higher than the day before OPEC sanctions were announced. On 02/04/2025, the U. S. Reinstated the maximum pressure campaign against Iran, instructing U. S.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

Agencies to rigorously enforce existing economic sanctions and introduce news measures targeting iron ore exports. The stated goal is to reduce ore exports to zero from the recent 1,400,000 barrels per day. OFAC has sanctioned additional vessels since its initial announcement, mostly in regards to Iranian oil exports. Please turn to Slide 26. Seaborne crude and product tankers continue to be affected by the war in Ukraine.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

Both crude and product markets remains at healthy levels. Please turn to slide 27. The VLCC fleet contracted 0.1% in 2024 and is expected to contract in 2025. This decline can be partially attributed to owners' hesitance to order vessels in light of unresolved technology requirements relating to CO2 restrictions. The current order book is 10.8% of the fleet or 98 vessels after a record ordering spree in 2024.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

Vessels over 20 years of age are about 19.8% of the total fleet or 181 vessels, which is about two times the order book. Turning to Slide '28. Product tanker net fleet growth was 1.7% for 2024 and is expected to increase to 4.3% in 2025. The current product tanker order book is 21.5% of the fleet, slightly more than the 18.8% of the fleet, which is 20 years of age. Concluding the tanker market overview, tanker rates continue at healthy levels.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

The combination of moderate growth in global old amount, OFAC sanctions reducing the numbers of available vessels, new longer trade routes for both crude and products and the IMO twenty three regulations should provide for a healthy tanker earnings going forward. Please turn to Slide 30 for the review of the container industry. The Shanghai container freight index is currently at thirteen forty one, the lowest since December 20 approximately 64% from the recent peak of 3,734 on 07/05/2024. We note that was the highest level outside the pandemic area. Container ship rates remain firm because of the Red Sea causing TEU miles to increase by about 18% in 2024.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

Firm time charter rates should remain for the duration disruption. However, continuous record newbuilding ordering and record fleet growth should eventually modify these gains. Tariffs, particularly the current 145% tariffs on U. S. Imports of Chinese goods, will have a significant effect on demand and trade should they remain at these recent announced levels.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

Turning to Slide 31. The current order book stands at 28.5% against 13.7% of the fleet 20 years of age or older. About 80% of the order book is for 10 ks TEU vessels or larger. Although trade is expected to grow by 0.3% in 2025, net fleet growth is expected to grow by 6.3% in 2025, following a 10.1% net fleet growth in 2024. Additionally, should Suez Canal transits return to previous normal levels, supply and demand fundamentals will be challenging.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

However, a world GDP growth of 2.8% for 2025 provides a somewhat positive counterpoint for a challenging 2025. If the tariffs and especially the 145% on U. S. Imports on Chinese goods remain, it will have a significant effect on the demand and trade. This concludes our presentation.

[Vincent Vandewalle, Chief Trading officer at Navios Maritime Partners]

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

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

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

[Operator]

We'll take our first call question from Omar Nokta with Jefferies.

[Omar Nokta, Managing Director at Jefferies LLC]

Thank you. Hi, Angeliki. Hi, everyone. Good afternoon. Thank you for the update.

[Omar Nokta, Managing Director at Jefferies LLC]

Clearly a lot of fast moving, very quick changing dynamics in the geo macro. Clearly you've done a good job obviously navigating through this and I think on Slide nine, you highlight the securing the liquidity and having the revenue stability and basically optimizing the balance sheet as much as you can in this environment has been first and foremost what you've been focusing on. I guess as we think about how things are from here, it seems that share repurchases have somewhat accelerated this year relative to the pace that we saw in 2024. Just wondering as you kind of think about how things are situated today, any change in how you approach capital allocation, whether the buyback pace changes or fleet renewal that takes a back seat? Do you focus on cash preservation?

[Omar Nokta, Managing Director at Jefferies LLC]

Any kind of changes or shifts you would say in this environment for Navios?

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

Thank you, Omar, and good morning to you. To be honest, there is one big thing, patience, patience, patience. I mean, we are living in an incredible uncertainty. I mean, on top of two wars that were already complicated, the Ukrainian and Russian war and the Middle East war, we are basically having U. S.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

Tariffs. The U. S. Administration is looking really to reshape trade on volume and origination of goods. So this is a very big thing because basically we are changing the global trading pattern.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

To what extent, how this is something we will have to see. And to be honest, during these very uncertain times, what we did before is the most important thing is more important than what we are doing today. And before this period, what we did, we as you very well said in Page nine, we built liquidity, dollars $340,000,000 in our balance sheet. We built hundred $3,400,000,000 of contracted revenue, giving us flexibility on the medium. Also, with that, we have short term flexibility.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

Our operating cash flow, we have $12,500,000 excess of contracted revenue this year on the nine months over our total cash expenses on the last on the 2025 on the ninth month. This gives you flexibility of thinking. On top, you focus on your balance sheet. You focus on deleveraging. We provided a 22% deleveraging from the end of twenty twenty two to today.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

We renew our fleet and modernize our fleet. And also as you can see today, we're also concentrating on mitigating interest rate risk. We have 30% of our debt fixed because I think in this environment you are better off to be more conservative. And we are fixed at an average rate of 5.5. Now on top of all this, we look on how we return capital to our how we can return to our shareholders, to our unitholders.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

And we have a program, a dividend program and a buyback. And we are here looking on that as well as we're looking on what the new environment will develop. This is not this is a situation that we need to almost every day concentrate and see what is changing. Look at the news of last night. You wrote a piece about the hoodies.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

What was the day before? We see that today there is tomorrow there's going to be negotiations between U. S. China. There was a stimulus in China.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

In this kind of environment, you need to be focused on the important thing and keep all the flexibility there.

[Omar Nokta, Managing Director at Jefferies LLC]

Yes. Thanks, Angelika. That makes a lot of sense, focus on what you can control. I guess maybe just in that context, you were obviously very, not this year, but in prior years, had been very acquisitive, especially on new buildings where there are opportunities to enter into long term charters to derisk those investments and you did so in a fleet renewal process by selling the older ships. How are you thinking about that right now?

[Omar Nokta, Managing Director at Jefferies LLC]

Are there still opportunities given the noise in the market that continue to acquire assets whether they're new buildings or in the open market that come with contracts? Or has that quieted down in this market?

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

Listen, the big long term charter deals where you will have a new building with a charter is not at this point. There is a lot of uncertainty, so you don't see it. But today, you may see new deals developing. United States is repositioning and we have to be very aware of that. And that will mean different trading patterns that will have to be serviced by different vessels with particular specifications.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

So we are very open to this. You need to follow exactly how it is developing. I mean United States will have need that will have to be secured by a fleet that they will like to have visibility about. I don't think that today we can make you can say one way or the other. You need to be very flexible and see how you position.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

The good thing is that we are basically sold a lot of the older vessels. This is something that makes us feel comfortable having a modernized fleet. And we have a lot of ability to wait and see how this is developing. We don't have to ask into one direction or the other.

[Omar Nokta, Managing Director at Jefferies LLC]

Yes, certainly. And maybe just one final one, if you don't mind, just in terms of the three main parts of the business, which are containers, tankers, dry bulk, each are moving in their own direction with some excitement potentially ahead for tankers with OPEC. Dry bulk is still kind of meandering perhaps, not exciting, but not bad. And then containers up until very recently, you had a very active, we would say, liner appetite for charters. How would you kind of from your vantage point, what are you seeing in terms of asset values in those segments?

[Omar Nokta, Managing Director at Jefferies LLC]

Is there one that feels maybe very firm perhaps, one that's whether it's rising or is there softness you see in one segment? Just can you give some color from your eyes on vessel values?

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

I mean, you have seen that tankers and especially these you have a very good have very good with the assumption of fleet of 10%, it gives you and the order book, it gives you a good positioning and you see that the values of the vessels have been in this market. There is a lot of sales and you see it in a good level. But I will say one thing. What I was very surprised that given the uncertainties that we were facing, it is amazing how you can see that the spot market, which is really an indication of how we are transacting today. If you want to have a real data on every day, even in the darkest moment, is what is the spot market.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

And you can say that in dry bulk, which you have a real depth of the spot market, you see that it was healthy levels. I mean, don't forget about a month ago, the world looked like we are coming to a new Great Depression. So having this data point where you show I'm not talking SFAs, I'm talking spot market at this point where a person an entity is willing to trade. With all this uncertainty, I think the world kept quite well, I will say. So patience, I mean, the good thing is we have a lot of we have done a lot of work prior to this situation.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

And this gives us the ability to have time to think and see how we can go to the next opportunities.

[Omar Nokta, Managing Director at Jefferies LLC]

Yes. Thanks, That's very helpful.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

Thank you.

[Operator]

This does conclude today's question and answer session. I will now turn the program back over to Angeliki for any additional or closing remarks.

[Angeliki Frangou, Chairwoman, CEO & Director at Navios Maritime Partners]

This completes our presentation for the Q1 results. Thank you.

[Operator]

This does conclude today's program. Thank you for your participation. You may disconnect at any time.

Participants

Executives

• Angeliki Frangou, Chairwoman, CEO & Director
• Efstratios Desypris, COO
• Erifili Tsironi, CFO
• Vincent Vandewalle, Chief Trading officer

Analysts

• Omar Nokta, Managing Director at Jefferies LLC