Navios Maritime Partners L.P. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2023
Navios Maritime Partners L.P. reported strong financial results for Q4 2023 and FY 2023 with revenue of $1.3 billion and net income of $433.6 million for the year. The company declared a cash distribution of $0.05 per unit for Q4 2023. Fleet updates include the sale of vessels and newbuilding containerships delivered. Navios Partners has entered into new long-term charters generating $136.9 million in revenue and has $3.3 billion contracted revenue through 2037.
The reported financial results for Navios Maritime Partners L.P. in Q4 2023 and FY 2023 show a robust performance with substantial revenue and net income figures. The reported revenue of $1.3 billion for FY 2023 and net income of $433.6 million reflect a successful fiscal year. The earnings per common unit of $14.08 for FY 2023 is a critical metric for investors, as it indicates the profitability on a per-share basis, which is essential for evaluating the return on investment.
Another notable point is the net cash from operating activities amounting to $560.3 million for FY 2023. This figure is significant because it demonstrates the company's ability to generate cash from its core business operations, which is vital for sustaining operations and funding future growth. The company's EBITDA of $797.8 million for FY 2023 is also a key indicator of its operational performance, as it represents earnings before interest, taxes, depreciation and amortization, providing a clearer picture of operational profitability.
The sales and purchases data, including payments for newbuildings and new vessels, indicate strategic asset management and capital investments, which can impact future earnings potential. The fixed average rate of $37,050 net per day for new containerships for 5.2 years suggests a stable revenue stream, which is positive for long-term financial planning. The cash distribution of $0.05 per unit for Q4 2023, while modest, reflects a commitment to returning value to unitholders.
The maritime shipping industry is highly sensitive to global economic conditions and trade dynamics. The disruptions in normal trade routes due to regional conflicts, as mentioned in the context of Ukraine and the Middle East, have created inefficiencies. However, Navios Maritime Partners L.P. has reported a strong performance despite these challenges, indicating strong operational resilience and strategic foresight.
The mention of traffic shrinkage in the Suez Canal by over 50% is a critical factor that could have affected many shipping companies. However, the company's ability to maintain a strong financial performance suggests effective management of its fleet and chartering strategy. The growth of the top ten economies and China's export strength provides a favorable backdrop for the shipping industry, potentially increasing demand for shipping services.
Navios Maritime's focus on reducing leverage and modernizing its fleet is a strategic move that can enhance its competitive edge in the industry. The long-term charters and the expansion of the fleet with energy-efficient vessels align with industry trends towards sustainability and operational efficiency. The contracted revenue of $3.3 billion through 2037 provides visibility into the company's future revenue streams, which is reassuring for investors.
The financial results of Navios Maritime Partners L.P. should be analyzed in the context of broader economic trends. The robust environment for global trade, despite ongoing conflicts and potential weaknesses in some economies, suggests that the maritime industry is navigating through volatility effectively.
The company's strategic decisions, such as the sale of certain vessels and the acquisition of new, more efficient ships, indicate a proactive approach to asset management in response to market conditions. The sale proceeds from vessel sales and the reinvestment into newbuildings are likely to optimize the fleet's performance and efficiency, potentially reducing operational costs in the long term.
Furthermore, the company's ability to secure long-term charters at fixed rates provides a hedge against market fluctuations in freight rates, which can be volatile due to changes in supply and demand dynamics. The financing update , including the new credit facility and the sale and leaseback transaction, reflects the company's financial management strategies to ensure liquidity and fund its strategic initiatives.
02/13/2024 - 07:43 AM
Revenue: $ 327.3 million for Q4 2023 $1,306.9 million for FY 2023 Net Income: $ 132.4 million for Q4 2023 $ 433.6 million for FY 2023 Earnings per common unit: $ 4.30 for Q4 2023 $ 14.08 for FY 2023 Net cash from operating activities: $ 211.7 million for Q4 2023 $ 560.3 million for FY 2023 EBITDA: $ 226.5 million for Q4 2023 $ 797.8 million for FY 2023 Sales and purchases: $ 465.0 million payments for newbuildings and new vessels/additions in 2023 $155.2 million for Q4 2023 $ 327.6 million gross vessels sale proceeds 2023 - YTD 2024 $264.5 million completed in FY 2023 Two newbuilding containerships delivered Q4 2023 - YTD 2024 Fixed at an average rate of $37,050 net per day for 5.2 years $0.05 per unit cash distribution for Q4 2023 MONACO, Feb. 13, 2024 (GLOBE NEWSWIRE) -- Navios Maritime Partners L.P. (“Navios Partners”) (NYSE: NMM), an international owner and operator of dry cargo and tanker vessels, today reported its financial results for the fourth quarter and year ended December 31, 2023.
Angeliki Frangou, Chairwoman and Chief Executive Officer of Navios Partners stated, “I am pleased with the results for the full year and fourth quarter of 2023. For the full year, we reported revenue of $1.3 billion and net income of $433.6 million . For the quarter, we reported revenue of $327.3 million and net income of $132.4 million . Earnings per common unit were $14.08 for the full year and $4.30 for the quarter.”
Angeliki Frangou continued, “In 2023, the world continued to experience disruption in normal trade routes. Regional conflict in Ukraine and the Middle East created inefficiency, and traffic in the Suez Canal recently shrank by over 50% . In addition, most of the top ten economies are growing, with China leveraging its export strength. This robust environment can change quickly should conflict-driven inefficiencies clear and / or economies suffer some weakness. As usual, we continue to focus on things that we can control, such as reducing leverage, modernizing our energy efficient fleet and taking long-term cover where available.”
Fleet update • Sale of vessels in 2023 and YTD 2024 • $327.6 million gross sale proceeds from sale of 17 vessels in 2023 and YTD 2024 • Completed the sale of 13 vessels for $242.2 million in 9M 2023 During the nine month period ended September 30, 2023, Navios Partners sold 13 vessels to various unrelated third parties, for gross sale proceeds of $242.2 million . • Completed the sale of two vessels for $22.3 million in Q4 2023 During the fourth quarter of 2023, Navios Partners completed the sale of a 2004-built capesize of 180,310 dwt and a 2004-built panamax of 75,707 dwt, to unrelated third parties, for aggregate gross sale proceeds of $22.3 million . • Agreed to sell two vessels for $63.1 million in Q1 2024 In January 2024, Navios Partners agreed to sell a 2009-built VLCC of 297,188 dwt and a 2004-built panamax of 76,602 dwt, to unrelated third parties, for aggregate gross sale proceeds of $63.1 million . The sales are expected to be completed during the first half of 2024. • Two newbuilding containerships delivered in Q4 2023 and YTD 2024 In January 2024 and November 2023, Navios Partners took delivery of a 2024-built 5,300 TEU containership and a 2023-built 5,300 TEU containership, respectively. Both vessels have been chartered-out at an average rate of $37,050 net per day for an average period of 5.2 years. • $136.9 million contracted revenue agreed in Q4 2023 and YTD 2024; $3.3 billion total contracted revenue
Navios Partners has entered into new long-term charters which are expected to generate revenue of $136.9 million .
One VLCC has been bareboat chartered-out for a period of five years, at a floating bareboat rate based on adjusted TD3C-WS with a floor of $26,730 net per day and a ceiling of $36,630 net per day (equal to a floor of $37,018 net per day and a ceiling of $46,918 net per day if grossed up by the fixed vessel operating expense for 2023). Contracted revenue has been calculated using the average of the floor and ceiling rates, excluding the adjustment for fixed vessel operating expense, for the five year period. Two LR1 product tankers have been chartered-out for an average period of 3.3 years, at an average rate of $27,270 net per day. One 2005-built capesize has been chartered-out for a period of 2.3 years, at a rate of $17,575 net per day. Including the above long-term charters, Navios Partners currently has $3.3 billion contracted revenue through 2037.
Financing update
In January 2024, Navios Partners entered into a new credit facility with a commercial bank for up to $40.0 million in order to refinance three vessels. The credit facility: (i) matures five years after the drawdown date; and (ii) bears interest at Secured Overnight Financing Rate plus 195 bps per annum. The full amount is expected to be drawn during the first quarter of 2024.
In October 2023, Navios Partners completed a $22.8 million sale and leaseback transaction with an unrelated third party, in order to finance one dry bulk vessel. The sale and leaseback transaction: (i) matures 12 years from the date of the delivery of the vessel by the owners to the charterer; and (ii) bears interest at Term Secured Overnight Financing Rate plus 220 bps per annum.
Cash distribution
The Board of Directors of Navios Partners declared a cash distribution for the fourth quarter of 2023 of $0.05 per unit. The cash distribution will be paid on February 14, 2024 to unitholders of record as of February 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.
Operating Highlights
Navios Partners owns and operates a fleet comprised of 77 dry bulk vessels, 47 containerships and 52 tankers, including 16 newbuilding tankers (ten aframax/LR2 and six MR2 product tanker chartered-in vessels under bareboat contracts), that are expected to be delivered through 2027 and ten newbuilding containerships (eight 5,300 TEU containerships and two 7,700 TEU containerships), that are expected to be delivered through 2025. The fleet excludes one VLCC and one panamax vessels agreed to be sold and two optional newbuilding aframax/LR2 tankers under discussion.
Navios Partners has entered into short, medium and long-term time charter-out, bareboat-out and freight agreements for its vessels with a remaining average term of 2.0 years. Navios Partners has currently fixed 63.4% and 37.3% of its available days for 2024 and 2025, respectively. Navios Partners expects contracted revenue of $885.8 million and $628.1 million for 2024 and 2025, respectively. The average expected daily charter-out rate for the fleet is $24,910 and $28,865 for 2024 and 2025, respectively.
EARNINGS HIGHLIGHTS
For the following results and the selected financial data presented herein, Navios Partners has compiled condensed consolidated statements of operations for the three month periods and years ended December 31, 2023 and 2022. The quarterly information was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA, Adjusted EBITDA, Adjusted Earnings per Common Unit basic and diluted and Adjusted Net Income are non-GAAP financial measures and should not be used in isolation or substitution for Navios Partners’ results calculated in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
Three Month Period Ended Three Month Period Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (in $‘000 except per unit data) (unaudited) (unaudited) (unaudited) (unaudited) Revenue $ 327,253 $ 370,863 $ 1,306,889 $ 1,210,528 Net Income $ 132,391 ( 1 ) $ 118,258 $ 433,645 ( 1 ) $ 579,247 Adjusted Net Income $ 132,914 ( 2 ) $ 112,670 ( 3 ) $ 383,397 ( 4 ) $ 429,895 ( 5 ) Net cash provided by operating activities $ 211,704 $ 140,069 $ 560,317 $ 506,340 EBITDA $ 226,535 ( 1 ) $ 206,228 $ 797,810 ( 1 ) $ 817,256 Adjusted EBITDA $ 227,058 ( 2 ) $ 200,640 (3 ) $ 747,562 ( 4 ) $ 667,904 ( 5 ) Earnings per Common Unit basic $ 4.30 ( 1 ) $ 3.84 $ 14.08 ( 1 ) $ 18.82 Earnings per Common Unit diluted $ 4.30 ( 1 ) $ 3.84 $ 14.08 ( 1 ) $ 18.82 Adjusted Earnings per Common Unit basic $ 4.32 ( 2 ) $ 3.66 (3 ) $ 12.45 ( 4 ) $ 13.97 ( 5 ) Adjusted Earnings per Common Unit diluted $ 4.32 ( 2 ) $ 3.66 (3 ) $ 12.45 ( 4 ) $ 13.97 ( 5 )
(1) Net Income, EBITDA and Earnings per Common Unit basic and diluted for the three month period and year ended December 31, 2023 include $47.0 million prepayment of charter hire received for the period relating to January 2024 and onwards. (2) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per Common Unit basic and diluted for the three month period ended December 31, 2023 have been adjusted to exclude a $0.5 million net loss related to: (a) the gain on sale of one of our vessels; and (b) the impairment loss on one of our vessels. (3) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per Common Unit basic and diluted for the three month period ended December 31, 2022 have been adjusted to exclude a $5.6 million gain related to the sale of eight of our vessels. (4) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per Common Unit basic and diluted for the year ended December 31, 2023 have been adjusted to exclude a $50.2 million net gain related to: (a) the sale of 15 of our vessels; and (b) the impairment loss on one of our vessels. (5) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per Common Unit basic and diluted for the year ended December 31, 2022 have been adjusted to exclude a $149.4 million gain related to the sale of ten of our vessels.
Three month periods ended December 31, 2023 and 2022
Time charter and voyage revenues for the three month period ended December 31, 2023 decreased by $43.6 million , or 11.8% , to $327.3 million , as compared to $370.9 million for the same period in 2022. The decrease in revenue was mainly attributable to the decrease in the available days of our fleet and the decrease in Time Charter Equivalent (“TCE”) rate. For the three month periods ended December 31, 2023 and December 31, 2022, time charter and voyage revenues were affected by $10.5 million and $18.1 million , respectively, relating to the straight line effect of the containership and tanker charters with de-escalating rates. The TCE rate decreased by 5.1% to $22,625 per day, as compared to $23,840 per day for the same period in 2022. The available days of the fleet decreased by 6.1% to 13,527 days for the three month period ended December 31, 2023, as compared to 14,409 days for the same period in 2022 mainly due to the sale of vessels, partially mitigated by the deliveries of newbuilding and secondhand vessels.
EBITDA of Navios Partners for the three month periods ended December 31, 2023 and 2022 was affected by the items described in the table above. Excluding these items, Adjusted EBITDA increased by $26.5 million to $227.1 million for the three month period ended December 31, 2023, as compared to $200.6 million for the same period in 2022. The increase in Adjusted EBITDA was primarily due to a: (i) $54.5 million increase in other income, net mainly due to the prepayment of hire received for the early termination of the charter parties of two containerships; (ii) $9.7 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 fourth quarter of 2023 and bareboat and charter-in hire expenses of the dry bulk fleet; (iii) $2.9 million decrease in vessel operating expenses mainly due to the sale of vessels; (iv) $2.5 million decrease in general and administrative expenses mainly due to the sale of vessels; and (v) $0.5 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 $43.6 million decrease in time charter and voyage revenues.
Net Income for the three month periods ended December 31, 2023 and 2022 was affected by the items described in the table above. Excluding these items, Adjusted Net Income increased by $20.2 million to $132.9 million for the three month period ended December 31, 2023, as compared to $112.7 million for the same period in 2022. The increase in Adjusted Net Income was primarily due to a: (i) $26.5 million increase in Adjusted EBITDA; (ii) $2.5 million increase in interest income; and (iii) $0.2 million decrease in interest expense and finance cost, net, that were partially mitigated by a $9.0 million negative impact from the depreciation and amortization, mainly due to a $7.3 million decrease in the amortization of the unfavorable lease terms and a $4.6 million increase in amortization of deferred drydock, special survey costs and other capitalized items, partially mitigated by a $2.9 million decrease in depreciation and amortization expense.
Years ended December 31, 2023 and 2022
Time charter and voyage revenues for the year ended December 31, 2023 increased by $96.4 million , or 8.0% , to $1,306.9 million , as compared to $1,210.5 million for the same period in 2022. The increase in revenue was mainly attributable to the increase in the available days of our fleet, partially mitigated by the decrease in TCE rate. For the year ended December 31, 2023 and December 31, 2022, time charter and voyage revenues were affected by $40.7 million and $48.2 million , respectively, relating to the straight line effect of the containership and tanker charters with de-escalating rates. The TCE rate decreased by 3.1% to $22,337 per day, as compared to $23,042 per day for the same period in 2022. The available days of the fleet increased by 10.0% to 54,766 days for the year ended December 31, 2023, as compared to 49,804 days for the same period in 2022, mainly due to the acquisition of the 36-vessel dry bulk fleet from Navios Maritime Holdings Inc. and the deliveries of newbuilding and secondhand vessels, partially mitigated by the sale of vessels.
EBITDA of Navios Partners for the years ended December 31, 2023 and 2022 was affected by the items described in the table above. Excluding these items, Adjusted EBITDA increased by $79.7 million to $747.6 million for the year ended December 31, 2023, as compared to $667.9 million for the same period in 2022. The increase in Adjusted EBITDA was primarily due to a: (i) $96.4 million increase in time charter and voyage revenues; (ii) $52.2 million increase in other income, net mainly due to the prepayment of hire received for the early termination of the charter parties of two containerships; and (iii) $1.8 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) $37.6 million increase in time charter and voyage expenses, mainly due to the increase in bunker expenses arising from the increased days of freight voyages in 2023 and bareboat and charter-in hire expenses of the tanker and dry bulk fleet; (ii) $19.7 million increase in vessel operating expenses in accordance with our management agreements, mainly due to the expansion of our fleet; and (iii) $13.4 million increase in general and administrative expenses mainly due to the expansion of our fleet in accordance with our administrative services agreement.
Net Income for the years ended December 31, 2023 and 2022 was affected by the items described in the table above. Excluding these items, Adjusted Net Income decreased by $46.5 million to $383.4 million for the year ended December 31, 2023, as compared to $429.9 million for the same period in 2022. The decrease in Adjusted Net Income was primarily due to: (i) an $85.5 million negative impact from the depreciation and amortization, mainly due to a $55.1 million decrease in the amortization of the unfavorable lease terms, a $16.0 million increase in depreciation and amortization expense and a $14.4 million increase in amortization of deferred drydock, special survey costs and other capitalized items; and (ii) a $50.5 million increase in interest expense and finance cost, net, partially mitigated by a: (i) $79.7 million increase in Adjusted EBITDA; and (ii) $9.8 million increase in interest income.
Fleet Employment Profile
The following table reflects certain key indicators of Navios Partners’ core fleet performance for the three month periods and years ended December 31, 2023 and 2022.
Three Month Period Ended December 31, 2023 Three Month Period Ended December 31, 2022 Year Ended December 31, 2023 Year Ended December 31, 2022 (unaudited) (unaudited) (unaudited) (unaudited) Available Days (1) 13,527 14,409 54,766 49,804 Operating Days (2) 13,425 14,264 54,294 49,271 Fleet Utilization (3) 99.2 % 99.0 % 99.1 % 98.9 % TCE rate Combined (per day) (4) $ 22,625 $ 23,840 $ 22,337 $ 23,042 TCE rate Dry Bulk (per day) (4) $ 16,902 $ 15,876 $ 14,422 $ 19,464 TCE rate Containerships (per day) (4) $ 30,356 $ 34,037 $ 33,770 $ 31,358 TCE rate Tankers (per day) (4) $ 27,562 $ 30,834 $ 28,662 $ 21,020 Vessels operating at period end 151 162 151 162
(1) Available days for the fleet represent total calendar days the vessels were in Navios Partners’ possession for the relevant period after subtracting off-hire days associated with scheduled repairs, drydockings or special surveys and ballast days relating to voyages. The shipping industry uses available days to measure the number of days in a relevant period during which a vessel is capable of generating revenues. (2) Operating days are the number of available days in the relevant period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a relevant period during which vessels actually generate revenues. (3) Fleet utilization is the percentage of time that Navios Partners’ vessels were available for generating revenue, and is determined by dividing the number of operating days during a relevant period by the number of available days during that period. The shipping industry uses fleet utilization to measure efficiency in finding employment for vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs, drydockings or special surveys. (4) TCE rate: TCE rate per day is defined as voyage, time charter revenues and charter-out revenues under bareboat contract (grossed up by the applicable fixed vessel operating expenses for the respective periods) less voyage expenses during a period divided by the number of available days during the period. The TCE rate per day is a customary shipping industry performance measure used primarily to present the actual daily earnings generated by vessels on various types of charter contracts for the number of available days of the fleet.
Conference Call Details:
Navios Partners' management will host a conference call on Tuesday, February 13, 2024 to discuss the results for the fourth quarter and year ended December 31, 2023.
Call Date/Time: Tuesday, February 13, 2024 at 8:30 am ET Call Title: Navios Partners Q4 2023 Financial Results Conference Call US Dial In: +1.800.579.2543 International Dial In: +1.785.424.1789 Conference ID: NMMQ423
The conference call replay will be available two hours after the live call and remain available for one week at the following numbers:
US Replay Dial In: +1.800.839.6980 International Replay Dial In: +1.402.220.6062
Slides and audio webcast:
There will also be a live webcast of the conference call, through the Navios Partners website (www.navios-mlp.com ) under “Investors”. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A supplemental slide presentation will be available on the Navios Partners website at www.navios-mlp.com under the "Investors" section at 8:00 am ET on the day of the call.
About Navios Maritime Partners L.P.
Navios Maritime Partners L.P. (NYSE: NMM) is an international owner and operator of dry cargo and tanker vessels. For more information, please visit our website at www.navios-mlp.com .
Forward-Looking Statements
This press release contains and will contain forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, TCE rates and Navios Partners’ expected cash flow generation, future contracted revenues, future distributions and its ability to make distributions going forward, opportunities to reinvest cash accretively in a fleet renewal program or otherwise, potential capital gains, its ability to take advantage of dislocation in the market and Navios Partners’ growth strategy and measures to implement such strategy, including expected vessel acquisitions and entering into further time charters and Navios Partners’ ability to refinance its debt on attractive terms, or at all. Words such as “may,” “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements.
These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Navios Partners at the time these statements were made. Although Navios Partners believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Partners. Actual results may differ materially from those expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially include, but are not limited to, risks relating to: global and regional economic and political conditions including global economic activity, demand for seaborne transportation of the products we ship, the ability and willingness of charterers to fulfill their obligations to us and prevailing charter rates, the economic condition of the markets in which we operate, shipyards performing scrubber installations, construction of newbuilding vessels, drydocking and repairs, changing vessel crews and availability of financing; potential disruption of shipping routes due to accidents, wars, diseases, pandemics, political events, piracy or acts by terrorists; uncertainty relating to global trade, including prices of seaborne commodities and continuing issues related to seaborne volume and ton miles, our continued ability to enter into long-term time charters, our ability to maximize the use of our vessels, expected demand in the dry and liquid cargo shipping sectors in general and the demand for our dry bulk, containerships and tanker vessels in particular, fluctuations in charter rates for dry bulk, containerships and tanker vessels, the aging of our fleet and resultant increases in operations costs, the loss of any customer or charter or vessel, the financial condition of our customers, changes in the availability and costs of funding due to conditions in the bank market, capital markets and other factors, fluctuation in interest rates and foreign exchange rates, increases in costs and expenses, including but not limited to: crew, insurance, provisions, port expenses, lube oil, bunkers, repairs, maintenance and general and administrative expenses, the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, as well as standard regulations imposed by our charterers applicable to our business, general domestic and international political conditions, competitive factors in the market in which Navios Partners operates; risks associated with operations outside the United States; and other factors listed from time to time in Navios Partners’ filings with the Securities and Exchange Commission, including its Form 20-Fs and Form 6-Ks. Navios Partners expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Partners’ expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Navios Partners makes no prediction or statement about the performance of its common units.
Contacts
Navios Maritime Partners L.P. +1 (212) 906 8645Investors@navios-mlp.com
Nicolas Bornozis Capital Link, Inc. +1 (212) 661 7566naviospartners@capitallink.com
EXHIBIT 1
NAVIOS MARITIME PARTNERS L.P. SELECTED BALANCE SHEET DATA (Expressed in thousands of U.S. Dollars) December 31, 2023 (unaudited) December 31, 2022 (unaudited) ASSETS Cash and cash equivalents, including restricted cash and time deposits over three months (1) $ 296,175 $ 175,098 Other current assets 103,573 135,326 Vessels, net 3,734,671 3,777,329 Other non-current assets 1,013,147 807,951 Total assets $ 5,147,566 $ 4,895,704 LIABILITIES AND PARTNERS’ CAPITAL Other current liabilities $ 174,564 $ 226,645 Total borrowings, net (including current and non-current) 1,861,463 1,945,447 Other non-current liabilities 341,087 380,649 Total partners’ capital 2,770,452 2,342,963 Total liabilities and partners’ capital $ 5,147,566 $ 4,895,704
(1) Includes time deposits with duration over three months of $47.0 million as of December 31, 2023.
NAVIOS MARITIME PARTNERS L.P. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in thousands of U.S. Dollars except unit and per unit data) Three Month Period Ended Three Month Period Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (unaudited) (unaudited) (unaudited) (unaudited) Time charter and voyage revenues $ 327,253 $ 370,863 $ 1,306,889 $ 1,210,528 Time charter and voyage expenses (38,635 ) (48,330 ) (160,231 ) (122,630 ) Direct vessel expenses (21,304 ) (17,243 ) (69,449 ) (56,754 ) Vessel operating expenses (83,031 ) (85,933 ) (331,653 ) (312,022 ) General and administrative expenses (21,000 ) (23,497 ) (80,559 ) (67,180 ) Depreciation and amortization of intangible assets (55,055 ) (58,000 ) (217,823 ) (201,820 ) Amortization of unfavorable lease terms 3,491 10,758 19,922 74,963 (Loss)/Gain on sale of vessels, net (523 ) 5,588 50,248 149,352 Interest expense and finance cost, net (32,939 ) (33,072 ) (133,642 ) (83,091 ) Interest income 3,285 758 10,699 856 Other income/(expense), net 50,849 (3,634 ) 39,244 (12,955 ) Net income $ 132,391 $ 118,258 $ 433,645 $ 579,247
Earnings per unit:
Three Month Period Ended Three Month Period Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 (unaudited) (unaudited) (unaudited) (unaudited) Earnings per unit: Earnings per common unit, basic $ 4.30 $ 3.84 $ 14.08 $ 18.82 Earnings per common unit, diluted $ 4.30 $ 3.84 $ 14.08 $ 18.82
NAVIOS MARITIME PARTNERS L.P. Other Financial Information (Expressed in thousands of U.S. Dollars) Year Ended December 31, 2023 Year Ended December 31, 2022 (unaudited) (unaudited) Net cash provided by operating activities $ 560,317 $ 506,340 Net cash used in investing activities $ (253,015 ) $ (316,241 ) Net cash used in financing activities $ (233,225 ) $ (184,447 ) Increase in cash, cash equivalents and restricted cash $ 74,077 $ 5,652
EXHIBIT 2
Owned Dry Bulk Vessels Type Built Capacity (DWT) Navios Vega Ultra-Handymax 2009 57,573 Navios Christine B Ultra-Handymax 2009 58,058 Navios Celestial Ultra-Handymax 2009 58,063 Navios La Paix Ultra-Handymax 2014 61,485 N Amalthia Panamax 2006 75,318 Navios Hope Panamax 2005 75,397 Navios Sagittarius Panamax 2006 75,756 Navios Taurus Panamax 2005 76,596 Navios Galileo Panamax 2006 76,596 N Bonanza Panamax 2006 76,596 Navios Orbiter (1) Panamax 2004 76,602 Navios Sun Panamax 2005 76,619 Navios Asteriks Panamax 2005 76,801 Navios Helios Panamax 2005 77,075 Navios Victory Panamax 2014 77,095 Unity N Panamax 2011 79,642 Odysseus N Panamax 2011 79,642 Rainbow N Panamax 2011 79,642 Navios Avior Panamax 2012 81,355 Navios Centaurus Panamax 2012 81,472 Navios Horizon I Panamax 2019 81,692 Navios Galaxy II Panamax 2020 81,789 Navios Uranus Panamax 2019 81,821 Navios Felicity I Panamax 2020 81,962 Navios Primavera Panamax 2022 82,003 Navios Meridian Panamax 2023 82,010 Navios Herakles I Panamax 2019 82,036 Navios Magellan II Panamax 2020 82,037 Navios Sky Panamax 2015 82,056 Navios Harmony Panamax 2006 82,790 Navios Alegria Panamax 2016 84,852 Navios Sphera Panamax 2016 84,872 Navios Apollon I Panamax 2005 87,052 Copernicus N Panamax 2010 93,062 Navios Stellar Capesize 2009 169,001 Navios Aurora II Capesize 2009 169,031 Navios Antares Capesize 2010 169,059 Navios Symphony Capesize 2010 178,132 Navios Ace Capesize 2011 179,016 Navios Melodia Capesize 2010 179,132 Navios Luz Capesize 2010 179,144 Navios Altamira Capesize 2011 179,165 Navios Azimuth Capesize 2011 179,169 Navios Etoile Capesize 2010 179,234 Navios Buena Ventura Capesize 2010 179,259 Navios Bonheur Capesize 2010 179,259 Navios Fulvia Capesize 2010 179,263 Navios Aster Capesize 2010 179,314 Navios Ray Capesize 2012 179,515 Navios Happiness Capesize 2009 180,022 Navios Bonavis Capesize 2009 180,022 Navios Phoenix Capesize 2009 180,242 Navios Fantastiks Capesize 2005 180,265 Navios Sol Capesize 2009 180,274 Navios Canary Capesize 2015 180,528 Navios Lumen Capesize 2009 180,661 Navios Pollux Capesize 2009 180,727 Navios Felix Capesize 2016 181,221 Navios Corali Capesize 2015 181,249 Navios Mars Capesize 2016 181,259 Navios Gem Capesize 2014 181,336 Navios Joy Capesize 2013 181,389 Navios Koyo Capesize 2011 181,415 Navios Azalea Capesize 2022 182,064 Navios Armonia Capesize 2022 182,079 Navios Altair Capesize 2023 182,115 Navios Sakura Capesize 2023 182,169 Navios Amethyst Capesize 2023 182,212 Navios Astra Capesize 2022 182,392
Owned Containerships Type Built Capacity (TEU) Spectrum N Containership 2009 2,546 Protostar N Containership 2007 2,741 Fleur N Containership 2012 2,782 Ete N Containership 2012 2,782 Navios Summer Containership 2006 3,450 Navios Verano Containership 2006 3,450 Navios Spring Containership 2007 3,450 Matson Lanai Containership 2007 4,250 Navios Verde Containership 2007 4,250 Navios Amarillo Containership 2007 4,250 Navios Vermilion Containership 2007 4,250 Navios Azure Containership 2007 4,250 Navios Indigo Containership 2007 4,250 Navios Domino Containership 2008 4,250 Matson Oahu Containership 2008 4,250 Navios Tempo Containership 2009 4,250 Navios Destiny Containership 2009 4,250 Navios Devotion Containership 2009 4,250 Navios Lapis Containership 2009 4,250 Navios Dorado Containership 2010 4,250 Carmel I (ex Zim Carmel) Containership 2010 4,360 Zim Baltimore Containership 2010 4,360 Navios Bahamas Containership 2010 4,360 Navios Miami Containership 2009 4,563 Navios Magnolia Containership 2008 4,730 Navios Jasmine Containership 2008 4,730 Navios Chrysalis Containership 2008 4,730 Navios Nerine Containership 2008 4,730 Zim Sparrow Containership 2023 5,300 Zim Eagle Containership 2024 5,300 Hyundai Shanghai Containership 2006 6,800 Hyundai Tokyo Containership 2006 6,800 Hyundai Hongkong Containership 2006 6,800 Hyundai Singapore Containership 2006 6,800 Hyundai Busan Containership 2006 6,800 Navios Unison Containership 2010 10,000 Navios Constellation Containership 2011 10,000
Owned Tanker Vessels Type Built Capacity (DWT) Hector N MR1 Product Tanker 2008 38,402 Nave Aquila MR2 Product Tanker 2012 49,991 Nave Atria MR2 Product Tanker 2012 49,992 Nave Capella MR2 Product Tanker 2013 49,995 Nave Alderamin MR2 Product Tanker 2013 49,998 Nave Pyxis MR2 Product Tanker 2014 49,998 Nave Bellatrix MR2 Product Tanker 2013 49,999 Nave Orion MR2 Product Tanker 2013 49,999 Nave Titan MR2 Product Tanker 2013 49,999 Nave Luminosity MR2 Product Tanker 2014 49,999 Nave Jupiter MR2 Product Tanker 2014 49,999 Nave Velocity MR2 Product Tanker 2015 49,999 Nave Sextans MR2 Product Tanker 2015 49,999 Nave Equinox MR2 Product Tanker 2007 50,922 Nave Pulsar MR2 Product Tanker 2007 50,922 Nave Orbit MR2 Product Tanker 2009 50,470 Nave Equator MR2 Product Tanker 2009 50,542 Bougainville MR2 Product Tanker 2013 50,626 Nave Cetus LR1 Product Tanker 2012 74,581 Nave Ariadne LR1 Product Tanker 2007 74,671 Nave Cielo LR1 Product Tanker 2007 74,671 Nave Rigel LR1 Product Tanker 2013 74,673 Nave Atropos LR1 Product Tanker 2013 74,695 Nave Cassiopeia LR1 Product Tanker 2012 74,711 Nave Andromeda LR1 Product Tanker 2011 75,000 Nave Estella LR1 Product Tanker 2012 75,000 Nave Constellation VLCC 2010 296,988 Nave Universe VLCC 2011 297,066 Nave Galactic VLCC 2009 297,168 Nave Spherical (1) VLCC 2009 297,188 Nave Quasar VLCC 2010 297,376 Nave Buena Suerte VLCC 2011 297,491 Nave Synergy VLCC 2010 299,973
Bareboat-in vessels Type Built Capacity (DWT) Purchase Option Navios Star Panamax 2021 81,994 Yes Navios Amitie Panamax 2021 82,002 Yes Navios Libra Panamax 2019 82,011 Yes Nave Electron VLCC 2021 313,239 Yes Nave Celeste VLCC 2022 313,418 Yes Baghdad VLCC 2020 313,433 Yes Erbil VLCC 2021 313,486 Yes
Newbuildings to be delivered (2) Type Expected Delivery Date Capacity DWT / (TEU) TBN I Containership H1 2024 5,300 TBN V Containership H1 2024 5,300 TBN VI Containership H1 2024 5,300 TBN II Containership H2 2024 5,300 TBN III Containership H2 2024 5,300 TBN IV Containership H2 2024 5,300 TBN VII Containership H2 2024 5,300 TBN VIII Containership H2 2024 5,300 TBN XV Containership H2 2024 7,700 TBN XVI Containership H1 2025 7,700 TBN XVII MR2 Product Tanker H2 2025 52,000 TBN XVIII MR2 Product Tanker H1 2026 52,000 TBN XIX MR2 Product Tanker H2 2026 52,000 TBN XX MR2 Product Tanker H1 2027 52,000 TBN XXI MR2 Product Tanker H1 2027 52,000 TBN XXII MR2 Product Tanker H1 2027 52,000 TBN IX Aframax/LR2 H1 2024 115,000 TBN X Aframax/LR2 H2 2024 115,000 TBN XI Aframax/LR2 H2 2024 115,000 TBN XII Aframax/LR2 H2 2024 115,000 TBN XIII Aframax/LR2 H1 2025 115,000 TBN XIV Aframax/LR2 H1 2025 115,000 TBN XXIII Aframax/LR2 H1 2026 115,000 TBN XXIV Aframax/LR2 H1 2026 115,000 TBN XXV Aframax/LR2 H2 2026 115,000 TBN XXVI Aframax/LR2 H2 2026 115,000
Chartered-in vessels (with purchase option) Type Year Built Capacity (DWT) Purchase Option Navios Venus Ultra-Handymax 2015 61,339 Yes Navios Amber Panamax 2015 80,994 Yes Navios Citrine Panamax 2017 81,626 Yes Navios Dolphin Panamax 2017 81,630 Yes Navios Gemini Panamax 2018 81,704 No Navios Coral Panamax 2016 84,904 Yes
(1) Vessel agreed to be sold (2) Excludes two optional newbuilding aframax/LR2 tankers under discussion
EXHIBIT 3
Disclosure of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per Common Unit, basic and diluted are “non-U.S. GAAP financial measures” and should not be used in isolation or considered substitutes for net income/ (loss), cash flow from operating activities and other operations or cash flow statement data prepared in accordance with generally accepted accounting principles in the United States.
EBITDA represents net income before interest and finance costs, depreciation and amortization (including intangible accelerated amortization) and income taxes. Adjusted EBITDA represents EBITDA excluding certain items, as described under “Earnings Highlights”. Navios Partners uses Adjusted EBITDA as a liquidity measure and reconciles EBITDA and Adjusted EBITDA to net cash provided by operating activities, the most comparable U.S. GAAP liquidity measure. EBITDA in this document is calculated as follows: net cash provided by operating activities adding back, when applicable and as the case may be, the effect of: (i) net increase in operating assets; (ii) net decrease/(increase) in operating liabilities; (iii) net interest cost; (iv) amortization and write-off of deferred finance costs and discount; (v) gain/ (loss) on sale of assets, net; (vi) non-cash amortization of deferred revenue and straight line effect of the containerships and tankers charters with de-escalating rates; (vii) stock-based compensation expense; and (viii) amortization of operating lease assets/ liabilities. Navios Partners believes that EBITDA and Adjusted EBITDA are each the basis upon which liquidity can be assessed and presents useful information to investors regarding Navios Partners’ ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and make cash distributions. Navios Partners also believes that EBITDA and Adjusted EBITDA are used: (i) by potential lenders to evaluate potential transactions; (ii) to evaluate and price potential acquisition candidates; and (iii) by securities analysts, investors and other interested parties in the evaluation of companies in our industry.
Each of EBITDA and Adjusted EBITDA have limitations as an analytical tool, and should not be considered in isolation or as a substitute for the analysis of Navios Partners’ results as reported under U.S. GAAP. Some of these limitations are: (i) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; and (ii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. EBITDA and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of Navios Partners’ performance. Furthermore, our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.
We present Adjusted Net Income by excluding items that we do not believe are indicative of our core operating performance. Our presentation of Adjusted Net Income adjusts net income for the items described above under “Earnings Highlights”. The definition of Adjusted Net Income used here may not be comparable to that used by other companies due to differences in methods of calculation. Adjusted Basic Earnings per Common Unit is defined as Adjusted Net Income divided by the weighted average number of common units outstanding for each of the periods presented, basic and diluted.
EXHIBIT 4
Navios Maritime Partners L.P. Reconciliation of EBITDA and Adjusted EBITDA to Cash from Operations
Three Month Period Ended Three Month Period Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 ($ ‘000) ($ ‘000) ($ ‘000) ($ ‘000) (unaudited) (unaudited) (unaudited) (unaudited) Net cash provided by operating activities $ 211,704 $ 140,069 $ 560,317 $ 506,340 Net increase in operating assets 37,441 36,072 59,729 139,537 Net (increase)/decrease in operating liabilities (39,472 ) 11,173 75,079 255 Net interest cost 29,654 32,314 122,943 82,235 Amortization and write-off of deferred finance costs and discount (1,945 ) (1,421 ) (7,188 ) (5,349 ) Amortization of operating lease assets/ liabilities (1,149 ) (2,615 ) (8,918 ) (3,912 ) Non-cash amortization of deferred revenue and straight line (9,174 ) (14,920 ) (54,396 ) (51,048 ) Stock-based compensation (1 ) (32 ) (4 ) (154 ) (Loss)/Gain on sale of vessels, net (523 ) 5,588 50,248 149,352 EBITDA $ 226,535 $ 206,228 $ 797,810 $ 817,256 Loss/(Gain) on sale of vessels, net 523 (5,588 ) (50,248 ) (149,352 ) Adjusted EBITDA $ 227,058 $ 200,640 $ 747,562 $ 667,904
Three Month Period Ended Three Month Period Ended Year Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 ($ ‘000) (unaudited) ($ ‘000) (unaudited) ($ ‘000) (unaudited) ($ ‘000) (unaudited) Net cash provided by operating activities $ 211,704 $ 140,069 $ 560,317 $ 506,340 Net cash used in investing activities $ (180,592 ) $ (50,531 ) $ (253,015 ) $ (316,241 ) Net cash used in financing activities $ (51,110 ) $ (24,760 ) $ (233,225 ) $ (184,447 )
What was Navios Maritime Partners L.P.'s revenue for Q4 2023?
Navios Maritime Partners L.P. reported revenue of $327.3 million for Q4 2023.
What was the net income for Navios Maritime Partners L.P. for FY 2023?
Navios Maritime Partners L.P. had a net income of $433.6 million for FY 2023.
What was the cash distribution declared by Navios Maritime Partners L.P. for Q4 2023?
Navios Maritime Partners L.P. declared a cash distribution of $0.05 per unit for Q4 2023.
What is the total contracted revenue Navios Partners has through 2037?
Navios Partners currently has $3.3 billion contracted revenue through 2037.
What type of vessels does Navios Maritime Partners L.P. own and operate?
Navios Maritime Partners L.P. owns and operates dry cargo and tanker vessels.