[6-K] Navios Maritime Partners L.P. Current Report (Foreign Issuer)
Navios Partners (NMM) interim update reports operational definitions, accounting reclassifications and multiple fleet and financing developments for the period ended June 30, 2025. Time charter and bareboat revenues were $315,290 and $301,435 for the three-month periods ended June 30, 2025 and 2024, respectively, and $607,345 and $571,696 for the six-month periods. Voyage revenues declined to $3,568 from $32,729 (three months) and to $8,798 from $70,870 (six months). The company reclassified $18,916 for the three-month 2024 period and $36,469 for the six-month 2024 period between direct vessel expenses, vessel operating expenses and depreciation; management deemed the change immaterial.
Fleet transactions include vessels classified as held for sale, an impairment related to a 2006 Panamax of $3,790 and a gain/(loss) on sale recognition of $7,614. Several credit facilities were drawn, prepaid or refinanced with notable balances: $62,500 outstanding (maturing Q2 2030 at Term SOFR+175bps), $24,000 outstanding on another facility, and prior prepayments including $49,893 fully prepaid and refinanced on June 25, 2025. Deposits and payments for multiple newbuilds and acquisitions total material amounts presented under deposits for vessel acquisitions (e.g., $67,375, $41,100, $62,625). The company disclosed covenant requirements including minimum liquidity per vessel, EBITDA/interest ≥2.00x and minimum net worth $135,000. Common units outstanding totaled 29,694,433 as of June 30, 2025.
Aggiornamento intermedio Navios Partners (NMM) riporta definizioni operative, riclassificazioni contabili e diversi sviluppi relativi alla flotta e ai finanziamenti per il periodo terminato il 30 giugno 2025. I ricavi da time charter e da nolo a scafo nudo sono stati rispettivamente $315.290 e $301.435 per i tre mesi conclusi il 30 giugno 2025 e 2024, e $607.345 e $571.696 per i sei mesi. I ricavi di viaggio sono diminuiti a $3.568 da $32.729 (tre mesi) e a $8.798 da $70.870 (sei mesi). La società ha riclassificato $18.916 per il trimestre 2024 e $36.469 per i sei mesi 2024 tra spese dirette sulle navi, spese operative delle navi e ammortamenti; la direzione ha ritenuto la modifica non significativa.
Le operazioni sulla flotta includono navi classificate come detenute per la vendita, una svalutazione relativa a un Panamax del 2006 di $3.790 e un utile/(perdita) da vendita riconosciuto di $7.614. Diversi crediti sono stati utilizzati, rimborsati anticipatamente o rifinanziati con saldi rilevanti: $62.500 in essere (scadenza Q2 2030 a Term SOFR+175bps), $24.000 in essere su un altro finanziamento, e prepagamenti antecedenti inclusi $49.893 interamente rimborsati e rifinanziati il 25 giugno 2025. Depositi e pagamenti per più costruzioni e acquisizioni di nuove unità ammontano a cifre importanti presentate tra i depositi per acquisizioni di navi (es. $67.375, $41.100, $62.625). La società ha comunicato requisiti di covenant tra cui liquidità minima per nave, EBITDA/interessi ≥ 2,00x e patrimonio netto minimo $135.000. Le unità ordinarie in circolazione erano 29.694.433 al 30 giugno 2025.
Actualización interina de Navios Partners (NMM) informa definiciones operativas, reclasificaciones contables y varios desarrollos de flota y financiación para el período terminado el 30 de junio de 2025. Los ingresos por fletamento por tiempo y por contrato de casco y maquinaria fueron $315,290 y $301,435 para los trimestres de tres meses terminados el 30 de junio de 2025 y 2024, respectivamente, y $607,345 y $571,696 para los períodos de seis meses. Los ingresos por viajes disminuyeron a $3,568 desde $32,729 (tres meses) y a $8,798 desde $70,870 (seis meses). La compañía reclasificó $18,916 para el trimestre de 2024 y $36,469 para los seis meses de 2024 entre gastos directos de buques, gastos operativos de buques y depreciación; la dirección consideró el cambio no material.
Las transacciones de flota incluyen buques clasificados como mantenidos para la venta, un deterioro relacionado con un Panamax de 2006 de $3,790 y un reconocimiento de ganancia/(pérdida) por venta de $7,614. Varios créditos fueron utilizados, prepagados o refinanciados con saldos significativos: $62,500 pendiente (vencimiento T2 2030 a Term SOFR+175pbs), $24,000 pendiente en otra facilidad, y prepagos previos incluyendo $49,893 totalmente prepagados y refinanciados el 25 de junio de 2025. Depósitos y pagos por múltiples nuevos pedidos y adquisiciones suman importes materiales presentados en depósitos para adquisición de buques (p. ej., $67,375, $41,100, $62,625). La compañía divulgó requisitos de covenants que incluyen liquidez mínima por buque, EBITDA/interest ≥ 2.00x y patrimonio neto mínimo $135,000. Las unidades comunes en circulación totalizaron 29,694,433 al 30 de junio de 2025.
Navios Partners (NMM) 중간 업데이트는 2025년 6월 30일 종료 기간에 대한 운영 정의, 회계 재분류 및 여러 선대 및 금융 관련 개발을 보고합니다. 타임차터 및 벌크선 임대(베어보트) 수익은 2025년과 2024년 6월 30일 종료 3개월 기간에 각각 $315,290 및 $301,435였고, 6개월 기간에는 각각 $607,345 및 $571,696였습니다. 항해 수익은 3개월 기준 $32,729에서 $3,568로, 6개월 기준 $70,870에서 $8,798로 감소했습니다. 회사는 2024년 3개월 기간에 $18,916, 6개월 기간에 $36,469를 선박 직접비, 선박 운항비 및 감가상각 간에 재분류했으며 경영진은 변경을 중요하지 않다고 판단했습니다.
선대 거래에는 매각예정으로 분류된 선박들, 2006년형 파나막스에 대한 $3,790의 손상처리 및 $7,614의 매각손익 인식이 포함됩니다. 여러 대출 시설이 인출되거나 선지급되거나 재융자되었으며 주요 잔액은 다음과 같습니다: $62,500 미상환(만기 2030년 2분기, Term SOFR+175bps), 다른 시설의 $24,000 미상환, 그리고 2025년 6월 25일 전액 선지급 및 재융자된 $49,893 등의 이전 선지급. 다수의 신조선 및 인수에 대한 보증금과 지급액은 선박 인수 보증금 항목에 중요 금액으로 기재되어 있습니다(예: $67,375, $41,100, $62,625). 회사는 선박당 최소 유동성, EBITDA/이자비율 ≥ 2.00배 및 최소 순자산 $135,000 등의 조건(코벡언트)을 공개했습니다. 보통 유닛 총수는 2025년 6월 30일 기준 29,694,433였습니다.
Mise à jour intermédiaire de Navios Partners (NMM) rend compte des définitions opérationnelles, des reclassements comptables et de plusieurs évolutions de la flotte et du financement pour la période close le 30 juin 2025. Les revenus de time charter et de bareboat se sont élevés à $315,290 et $301,435 pour les trimestres de trois mois clos les 30 juin 2025 et 2024, respectivement, et à $607,345 et $571,696 pour les périodes de six mois. Les revenus de voyage ont diminué à $3,568 contre $32,729 (trois mois) et à $8,798 contre $70,870 (six mois). La société a reclassé $18,916 pour le trimestre 2024 et $36,469 pour les six mois 2024 entre charges directes des navires, charges d'exploitation des navires et amortissements ; la direction a estimé la modification non significative.
Les opérations de la flotte incluent des navires classés comme détenus en vue de la vente, une dépréciation liée à un Panamax de 2006 de $3,790 et une reconnaissance d'un gain/(perte) à la vente de $7,614. Plusieurs facilités de crédit ont été tirées, prépayées ou refinancées avec des soldes notables : $62,500 en cours (échéance T2 2030 à Term SOFR+175pbs), $24,000 en cours sur une autre facilité, et des prépaiements antérieurs incluant $49,893 entièrement prépayés et refinancés le 25 juin 2025. Les dépôts et paiements pour plusieurs nouvelles constructions et acquisitions représentent des montants significatifs présentés sous dépôts pour acquisitions de navires (p.ex. $67,375, $41,100, $62,625). La société a divulgué des exigences de covenant incluant liquidité minimale par navire, EBITDA/intérêts ≥ 2,00x et actif net minimum $135,000. Les unités ordinaires en circulation s'élevaient à 29,694,433 au 30 juin 2025.
Navios Partners (NMM) Zwischenbericht berichtet über operative Definitionen, buchhalterische Umgliederungen und mehrere Entwicklungen bei Flotte und Finanzierung für den zum 30. Juni 2025 endenden Zeitraum. Time-Charter- und Bareboat-Erlöse beliefen sich auf $315.290 bzw. $301.435 für die drei Monate zum 30. Juni 2025 bzw. 2024 und auf $607.345 bzw. $571.696 für die Sechs-Monats-Perioden. Die Reiseerlöse sanken auf $3.568 von $32.729 (drei Monate) bzw. auf $8.798 von $70.870 (sechs Monate). Das Unternehmen hat $18.916 für das Dreimonats-2024 und $36.469 für das Sechsmonats-2024 zwischen direkten Schiffskosten, Schiffsbetriebskosten und Abschreibungen umklassifiziert; das Management stuft die Änderung als unerheblich ein.
Flottentransaktionen umfassen als zum Verkauf gehaltene Schiffe, eine Werthaltigkeitsminderung eines Panamax von 2006 in Höhe von $3.790 und eine Gewinn/(Verlust)-Realisierung aus Verkäufen von $7.614. Mehrere Kreditlinien wurden in Anspruch genommen, vorab bezahlt oder refinanziert mit bedeutenden Salden: $62.500 ausstehend (Fälligkeit Q2 2030 zu Term SOFR+175 Basispunkte), $24.000 ausstehend bei einer weiteren Facility, sowie frühere Vorauszahlungen einschließlich $49.893, die am 25. Juni 2025 vollständig vorausbezahlt und refinanziert wurden. Anzahlungen und Zahlungen für mehrere Neubauten und Akquisitionen ergeben erhebliche Beträge, ausgewiesen unter Anzahlungen für Schiffsankäufe (z. B. $67.375, $41.100, $62.625). Das Unternehmen legte Covenant-Anforderungen offen, darunter Mindestliquidität pro Schiff, EBITDA/Interest ≥ 2,00x und ein Mindestnettovermögen von $135.000. Die ausstehenden Stammanteile beliefen sich zum 30. Juni 2025 auf 29.694.433.
- Time charter and bareboat revenues increased year-over-year for the six-month period to $607,345 from $571,696, indicating stronger contracted earnings.
- Active liability management with prepayments and refinancings (including full prepayment and refinance of a $49,893 balance on June 25, 2025) which may optimize financing costs and maturities.
- Material deposits for newbuilds disclosed with transparent payment schedules presented under deposits for vessel acquisitions, supporting planned fleet renewal and growth.
- Voyage revenues declined sharply to $3,568 from $32,729 (three months) and to $8,798 from $70,870 (six months), reducing exposure to spot market upside.
- Impairment recognized on a 2006 Panamax of $3,790 and classification of vessels as held for sale, indicating asset value pressure on older tonnage.
- Significant financing covenants (e.g., EBITDA/interest ≥2.00x, minimum net worth $135,000, liquidity per vessel requirements) could constrain flexibility if market conditions worsen.
Insights
TL;DR: Mixed operational revenue trends with material financing activity and vessel disposals; covenant metrics and upcoming repayments increase capital focus.
The interim filing shows modest year-over-year increases in time charter revenue but sharp declines in voyage revenue, indicating a shift in revenue mix toward fixed charters. Material financing actions—drawdowns, prepayments and refinancings—alter leverage profile; a $62,500 facility outstanding at Term SOFR+175bps and multiple prepaid/ refinanced balances suggest active liability management. Impairment of $3,790 and vessels held for sale with associated gains/losses affect asset base and near-term cash flows. Covenant thresholds (e.g., EBITDA/interest ≥2.00x, minimum net worth $135,000) are explicit constraints that could restrict flexibility if market rates or utilization deteriorate.
TL;DR: Strategic fleet disposals, sale-leasebacks and newbuilding deposits indicate portfolio reshaping amid capital-intensive expansion.
Navios Partners documents multiple sale and leaseback structures, purchase obligations and failed-sale accounting under ASC 842-40, which keep vessels on the balance sheet and create financing liabilities. Substantial deposits and staged payments for newbuild containerships and drybulk vessels (aggregates of tens of millions presented across captions) signal aggressive fleet renewal and diversification. The combination of asset sales (including classified held-for-sale vessels) and newbuilding commitments will materially affect fixed-charge coverage and fleet capacity timing as deliveries and payments occur through 2027–2028.
Aggiornamento intermedio Navios Partners (NMM) riporta definizioni operative, riclassificazioni contabili e diversi sviluppi relativi alla flotta e ai finanziamenti per il periodo terminato il 30 giugno 2025. I ricavi da time charter e da nolo a scafo nudo sono stati rispettivamente $315.290 e $301.435 per i tre mesi conclusi il 30 giugno 2025 e 2024, e $607.345 e $571.696 per i sei mesi. I ricavi di viaggio sono diminuiti a $3.568 da $32.729 (tre mesi) e a $8.798 da $70.870 (sei mesi). La società ha riclassificato $18.916 per il trimestre 2024 e $36.469 per i sei mesi 2024 tra spese dirette sulle navi, spese operative delle navi e ammortamenti; la direzione ha ritenuto la modifica non significativa.
Le operazioni sulla flotta includono navi classificate come detenute per la vendita, una svalutazione relativa a un Panamax del 2006 di $3.790 e un utile/(perdita) da vendita riconosciuto di $7.614. Diversi crediti sono stati utilizzati, rimborsati anticipatamente o rifinanziati con saldi rilevanti: $62.500 in essere (scadenza Q2 2030 a Term SOFR+175bps), $24.000 in essere su un altro finanziamento, e prepagamenti antecedenti inclusi $49.893 interamente rimborsati e rifinanziati il 25 giugno 2025. Depositi e pagamenti per più costruzioni e acquisizioni di nuove unità ammontano a cifre importanti presentate tra i depositi per acquisizioni di navi (es. $67.375, $41.100, $62.625). La società ha comunicato requisiti di covenant tra cui liquidità minima per nave, EBITDA/interessi ≥ 2,00x e patrimonio netto minimo $135.000. Le unità ordinarie in circolazione erano 29.694.433 al 30 giugno 2025.
Actualización interina de Navios Partners (NMM) informa definiciones operativas, reclasificaciones contables y varios desarrollos de flota y financiación para el período terminado el 30 de junio de 2025. Los ingresos por fletamento por tiempo y por contrato de casco y maquinaria fueron $315,290 y $301,435 para los trimestres de tres meses terminados el 30 de junio de 2025 y 2024, respectivamente, y $607,345 y $571,696 para los períodos de seis meses. Los ingresos por viajes disminuyeron a $3,568 desde $32,729 (tres meses) y a $8,798 desde $70,870 (seis meses). La compañía reclasificó $18,916 para el trimestre de 2024 y $36,469 para los seis meses de 2024 entre gastos directos de buques, gastos operativos de buques y depreciación; la dirección consideró el cambio no material.
Las transacciones de flota incluyen buques clasificados como mantenidos para la venta, un deterioro relacionado con un Panamax de 2006 de $3,790 y un reconocimiento de ganancia/(pérdida) por venta de $7,614. Varios créditos fueron utilizados, prepagados o refinanciados con saldos significativos: $62,500 pendiente (vencimiento T2 2030 a Term SOFR+175pbs), $24,000 pendiente en otra facilidad, y prepagos previos incluyendo $49,893 totalmente prepagados y refinanciados el 25 de junio de 2025. Depósitos y pagos por múltiples nuevos pedidos y adquisiciones suman importes materiales presentados en depósitos para adquisición de buques (p. ej., $67,375, $41,100, $62,625). La compañía divulgó requisitos de covenants que incluyen liquidez mínima por buque, EBITDA/interest ≥ 2.00x y patrimonio neto mínimo $135,000. Las unidades comunes en circulación totalizaron 29,694,433 al 30 de junio de 2025.
Navios Partners (NMM) 중간 업데이트는 2025년 6월 30일 종료 기간에 대한 운영 정의, 회계 재분류 및 여러 선대 및 금융 관련 개발을 보고합니다. 타임차터 및 벌크선 임대(베어보트) 수익은 2025년과 2024년 6월 30일 종료 3개월 기간에 각각 $315,290 및 $301,435였고, 6개월 기간에는 각각 $607,345 및 $571,696였습니다. 항해 수익은 3개월 기준 $32,729에서 $3,568로, 6개월 기준 $70,870에서 $8,798로 감소했습니다. 회사는 2024년 3개월 기간에 $18,916, 6개월 기간에 $36,469를 선박 직접비, 선박 운항비 및 감가상각 간에 재분류했으며 경영진은 변경을 중요하지 않다고 판단했습니다.
선대 거래에는 매각예정으로 분류된 선박들, 2006년형 파나막스에 대한 $3,790의 손상처리 및 $7,614의 매각손익 인식이 포함됩니다. 여러 대출 시설이 인출되거나 선지급되거나 재융자되었으며 주요 잔액은 다음과 같습니다: $62,500 미상환(만기 2030년 2분기, Term SOFR+175bps), 다른 시설의 $24,000 미상환, 그리고 2025년 6월 25일 전액 선지급 및 재융자된 $49,893 등의 이전 선지급. 다수의 신조선 및 인수에 대한 보증금과 지급액은 선박 인수 보증금 항목에 중요 금액으로 기재되어 있습니다(예: $67,375, $41,100, $62,625). 회사는 선박당 최소 유동성, EBITDA/이자비율 ≥ 2.00배 및 최소 순자산 $135,000 등의 조건(코벡언트)을 공개했습니다. 보통 유닛 총수는 2025년 6월 30일 기준 29,694,433였습니다.
Mise à jour intermédiaire de Navios Partners (NMM) rend compte des définitions opérationnelles, des reclassements comptables et de plusieurs évolutions de la flotte et du financement pour la période close le 30 juin 2025. Les revenus de time charter et de bareboat se sont élevés à $315,290 et $301,435 pour les trimestres de trois mois clos les 30 juin 2025 et 2024, respectivement, et à $607,345 et $571,696 pour les périodes de six mois. Les revenus de voyage ont diminué à $3,568 contre $32,729 (trois mois) et à $8,798 contre $70,870 (six mois). La société a reclassé $18,916 pour le trimestre 2024 et $36,469 pour les six mois 2024 entre charges directes des navires, charges d'exploitation des navires et amortissements ; la direction a estimé la modification non significative.
Les opérations de la flotte incluent des navires classés comme détenus en vue de la vente, une dépréciation liée à un Panamax de 2006 de $3,790 et une reconnaissance d'un gain/(perte) à la vente de $7,614. Plusieurs facilités de crédit ont été tirées, prépayées ou refinancées avec des soldes notables : $62,500 en cours (échéance T2 2030 à Term SOFR+175pbs), $24,000 en cours sur une autre facilité, et des prépaiements antérieurs incluant $49,893 entièrement prépayés et refinancés le 25 juin 2025. Les dépôts et paiements pour plusieurs nouvelles constructions et acquisitions représentent des montants significatifs présentés sous dépôts pour acquisitions de navires (p.ex. $67,375, $41,100, $62,625). La société a divulgué des exigences de covenant incluant liquidité minimale par navire, EBITDA/intérêts ≥ 2,00x et actif net minimum $135,000. Les unités ordinaires en circulation s'élevaient à 29,694,433 au 30 juin 2025.
Navios Partners (NMM) Zwischenbericht berichtet über operative Definitionen, buchhalterische Umgliederungen und mehrere Entwicklungen bei Flotte und Finanzierung für den zum 30. Juni 2025 endenden Zeitraum. Time-Charter- und Bareboat-Erlöse beliefen sich auf $315.290 bzw. $301.435 für die drei Monate zum 30. Juni 2025 bzw. 2024 und auf $607.345 bzw. $571.696 für die Sechs-Monats-Perioden. Die Reiseerlöse sanken auf $3.568 von $32.729 (drei Monate) bzw. auf $8.798 von $70.870 (sechs Monate). Das Unternehmen hat $18.916 für das Dreimonats-2024 und $36.469 für das Sechsmonats-2024 zwischen direkten Schiffskosten, Schiffsbetriebskosten und Abschreibungen umklassifiziert; das Management stuft die Änderung als unerheblich ein.
Flottentransaktionen umfassen als zum Verkauf gehaltene Schiffe, eine Werthaltigkeitsminderung eines Panamax von 2006 in Höhe von $3.790 und eine Gewinn/(Verlust)-Realisierung aus Verkäufen von $7.614. Mehrere Kreditlinien wurden in Anspruch genommen, vorab bezahlt oder refinanziert mit bedeutenden Salden: $62.500 ausstehend (Fälligkeit Q2 2030 zu Term SOFR+175 Basispunkte), $24.000 ausstehend bei einer weiteren Facility, sowie frühere Vorauszahlungen einschließlich $49.893, die am 25. Juni 2025 vollständig vorausbezahlt und refinanziert wurden. Anzahlungen und Zahlungen für mehrere Neubauten und Akquisitionen ergeben erhebliche Beträge, ausgewiesen unter Anzahlungen für Schiffsankäufe (z. B. $67.375, $41.100, $62.625). Das Unternehmen legte Covenant-Anforderungen offen, darunter Mindestliquidität pro Schiff, EBITDA/Interest ≥ 2,00x und ein Mindestnettovermögen von $135.000. Die ausstehenden Stammanteile beliefen sich zum 30. Juni 2025 auf 29.694.433.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934
DATED: September 8,
Commission File No.
c/o Navios Shipmanagement Inc.
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ |
|
Form 40-F ☐ |
NAVIOS MARITIME PARTNERS L.P.
FORM 6-K
TABLE OF CONTENTS
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Page |
Operating and Financial Review and Prospects |
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1 |
Exhibit List |
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18 |
INDEX |
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F-1 |
This report on Form 6-K is hereby incorporated by reference into the Navios Maritime Partners L.P. Registration Statement on Form F-3, File No. 333-271842.
Operating and Financial Review and Prospects
The following is a discussion of the financial condition and results of operations for the three and six month periods ended June 30, 2025 and 2024 of Navios Maritime Partners L.P. (referred to herein as “we”, “us”, “Company” or “Navios Partners”). All of the financial statements have been stated in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). You should read this section together with the consolidated financial statements and the accompanying notes included in Navios Partners’ 2024 annual report filed on Form 20-F on March 28, 2025 (the “Annual Report”) with the U.S. Securities and Exchange Commission (the “SEC”). For the periods presented in this report, comparative figures have been reclassified to conform to changes in presentation in the current year, where necessary.
This report 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 (as defined herein), 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, sanctions, 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; the growing expectations from investors, lenders, charterers, and other market participants regarding our sustainability practices, as well as our capacity to implement sustainability initiatives and achieve our objectives and targets; and other factors listed from time to time in
1
Navios Partners’ filings with the SEC, including its Form 20-F and Form 6-K. 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.
Recent Developments
In July 2025, Navios Partners sold a 2009-built transhipper vessel of 57,573 dwt, to Navios South American Logistics Inc., for a gross sale price of $30.0 million.
In August 2025, Navios Partners agreed to sell a 2005-built Panamax of 75,397 dwt and a 2007-built MR2 Product Tanker vessel of 50,922 dwt, to unrelated third parties, for an aggregate gross sale price of $22.6 million. The sales are expected to be completed during the second half of 2025.
On September 8, 2025, Navios Partners agreed to acquire four 8,850 TEU newbuilding methanol-ready and scrubber-fitted Containerships from an unrelated third party, for a purchase price of $115.1 million each. The vessels have been chartered-out at $44,145 net per day for a period of 5.2 years, with charterer’s option for one additional year at $41,579 net per day, and are expected to be delivered into Navios Partners’ fleet during the second half of 2027 and the first quarter of 2028. The closing of the transaction is subject to completion of customary documentation.
Overview
We are an international owner and operator of dry cargo and tanker vessels that was formed in August 2007 by Navios Maritime Holdings Inc. We have been a public company since November 2007.
As of September 2, 2025, there were outstanding 28,932,658 common units and 622,296 general partnership units. Angeliki Frangou, our Chief Executive Officer and Chairwoman beneficially owned an approximately 17.4% common interest of the total outstanding common units including 4,672,314 common units held through four entities affiliated with her. An entity affiliated with Angeliki Frangou beneficially owned 622,296 general partnerships units, representing an approximately 2.1% ownership interest in Navios Partners based on all outstanding common units and general partnership units.
In July 2022, the Board of Directors of Navios Partners authorized a common unit repurchase program for up to $100.0 million of Navios Partners’ common units. Common unit repurchases will be made from time to time for cash in open market transactions at prevailing market prices or in privately negotiated transactions. The timing and amount of repurchases under the program will be determined by Navios Partners’ management based upon market conditions and financial and other considerations, including working capital and planned or anticipated growth opportunities. The program does not require any minimum repurchase or any specific number of common units and may be suspended or reinstated at any time in the Navios Partners’ discretion and without notice. The Board of Directors will review the program periodically. As of September 2, 2025, Navios Partners had repurchased 1,251,730 common units since the commencement of the program, for a total cost of approximately $54.8 million.
Fleet
As of September 2, 2025, Navios Partners’ fleet consists of 67 dry bulk vessels, 47 containerships and 57 tanker vessels, including 18 newbuilding tankers (12 Aframax/LR2 and six MR2 Product Tanker chartered-in vessels under bareboat contracts) that are expected to be delivered through the first half of 2028 and four 7,900 TEU newbuilding Containerships, that are expected to be delivered through the first half of 2027. The fleet excludes two Containerships, one Panamax and one MR2 Product Tanker vessel that have been agreed to be sold and four 8,850 TEU newbuilding Containerships that have been agreed to be acquired.
We generate revenues by charging our customers for the use of our vessels to transport their dry cargo commodities, containers, crude oil and/or refined petroleum products. In general, the vessels in our fleet are chartered-out under time charters, with duration of up to 12 years at inception. From time to time, we operate vessels in the spot market until the vessels have been chartered out under short-term, medium-term and long-term charters.
2
On July 3, 2025, the U.S. Department of Treasury’s Office of Foreign Assets Control added, amongst others, VS Tankers FZE (“VS Tankers”) to the Specially Designated Nationals list after being determined by the State Department to meet the criteria for the imposition of sanctions under Executive Order 13902. Navios Partners had two VLCCs, which were bareboat chartered-out to VS Tankers. On July 4, 2025, Navios Partners terminated the contracts for these vessels.
The following table provides summary information about our fleet as of September 2, 2025: |
|
|||||||
|
|
|
|
|
|
|
|
|
Owned Dry bulk Vessels |
|
Type |
|
Built |
|
Capacity |
|
|
Navios Christine B |
|
Ultra-Handymax |
|
2009 |
|
|
58,058 |
|
Navios Celestial |
|
Ultra-Handymax |
|
2009 |
|
|
58,063 |
|
Navios Venus |
|
Ultra-Handymax |
|
2015 |
|
|
61,339 |
|
Navios La Paix |
|
Ultra-Handymax |
|
2014 |
|
|
61,485 |
|
N Amalthia |
|
Panamax |
|
2006 |
|
|
75,356 |
|
Navios Hope (3) |
|
Panamax |
|
2005 |
|
|
75,397 |
|
Navios Sun |
|
Panamax |
|
2005 |
|
|
76,619 |
|
Navios Helios |
|
Panamax |
|
2005 |
|
|
77,075 |
|
Navios Victory |
|
Panamax |
|
2014 |
|
|
77,095 |
|
Rainbow N |
|
Panamax |
|
2011 |
|
|
79,602 |
|
Unity N |
|
Panamax |
|
2011 |
|
|
79,642 |
|
Odysseus N |
|
Panamax |
|
2011 |
|
|
79,642 |
|
Navios Amber |
|
Kamsarmax |
|
2015 |
|
|
80,909 |
|
Navios Avior |
|
Kamsarmax |
|
2012 |
|
|
81,355 |
|
Navios Centaurus |
|
Kamsarmax |
|
2012 |
|
|
81,472 |
|
Navios Citrine |
|
Kamsarmax |
|
2017 |
|
|
81,626 |
|
Navios Dolphin |
|
Kamsarmax |
|
2017 |
|
|
81,630 |
|
Navios Horizon I (5) |
|
Kamsarmax |
|
2019 |
|
|
81,692 |
|
Navios Galaxy II (2) |
|
Kamsarmax |
|
2020 |
|
|
81,789 |
|
Navios Uranus (2) |
|
Kamsarmax |
|
2019 |
|
|
81,821 |
|
Navios Felicity I (2) |
|
Kamsarmax |
|
2020 |
|
|
81,962 |
|
Navios Primavera (1) |
|
Kamsarmax |
|
2022 |
|
|
82,003 |
|
Navios Meridian (1) |
|
Kamsarmax |
|
2023 |
|
|
82,010 |
|
Navios Herakles I (2) |
|
Kamsarmax |
|
2019 |
|
|
82,036 |
|
Navios Magellan II (2) |
|
Kamsarmax |
|
2020 |
|
|
82,037 |
|
Navios Sky (1) |
|
Kamsarmax |
|
2015 |
|
|
82,056 |
|
Navios Alegria (5) |
|
Kamsarmax |
|
2016 |
|
|
84,852 |
|
Navios Sphera |
|
Kamsarmax |
|
2016 |
|
|
84,872 |
|
Navios Coral |
|
Kamsarmax |
|
2016 |
|
|
84,904 |
|
Copernicus N |
|
Post-Panamax |
|
2010 |
|
|
93,062 |
|
Navios Stellar (1) |
|
Capesize |
|
2009 |
|
|
168,818 |
|
Navios Aurora II |
|
Capesize |
|
2009 |
|
|
169,031 |
|
Navios Antares (1) |
|
Capesize |
|
2010 |
|
|
169,059 |
|
Navios Symphony |
|
Capesize |
|
2010 |
|
|
177,960 |
|
Navios Ace (1) |
|
Capesize |
|
2011 |
|
|
178,929 |
|
Navios Aster |
|
Capesize |
|
2010 |
|
|
178,978 |
|
Navios Melodia |
|
Capesize |
|
2010 |
|
|
178,982 |
|
Navios Buena Ventura |
|
Capesize |
|
2010 |
|
|
179,109 |
|
Navios Luz |
|
Capesize |
|
2010 |
|
|
179,144 |
|
Navios Altamira |
|
Capesize |
|
2011 |
|
|
179,165 |
|
Navios Azimuth (1) |
|
Capesize |
|
2011 |
|
|
179,169 |
|
Navios Bonheur |
|
Capesize |
|
2010 |
|
|
179,204 |
|
Navios Etoile |
|
Capesize |
|
2010 |
|
|
179,234 |
|
Navios Fulvia |
|
Capesize |
|
2010 |
|
|
179,263 |
|
Navios Ray (1) |
|
Capesize |
|
2012 |
|
|
179,515 |
|
Navios Happiness |
|
Capesize |
|
2009 |
|
|
180,022 |
|
Navios Bonavis (1) |
|
Capesize |
|
2009 |
|
|
180,022 |
|
3
Navios Fantastiks |
|
Capesize |
|
2005 |
|
|
180,055 |
|
Navios Phoenix (1) |
|
Capesize |
|
2009 |
|
|
180,060 |
|
Navios Sol (1) |
|
Capesize |
|
2009 |
|
|
180,274 |
|
Navios Lumen (5) |
|
Capesize |
|
2009 |
|
|
180,493 |
|
Navios Canary (5) |
|
Capesize |
|
2015 |
|
|
180,528 |
|
Navios Pollux (1) |
|
Capesize |
|
2009 |
|
|
180,727 |
|
Navios Gem |
|
Capesize |
|
2014 |
|
|
181,206 |
|
Navios Joy |
|
Capesize |
|
2013 |
|
|
181,215 |
|
Navios Felix (5) |
|
Capesize |
|
2016 |
|
|
181,221 |
|
Navios Corali (5) |
|
Capesize |
|
2015 |
|
|
181,249 |
|
Navios Mars |
|
Capesize |
|
2016 |
|
|
181,259 |
|
Navios Koyo |
|
Capesize |
|
2011 |
|
|
181,415 |
|
Navios Azalea (2) |
|
Capesize |
|
2022 |
|
|
182,064 |
|
Navios Armonia (2) |
|
Capesize |
|
2022 |
|
|
182,079 |
|
Navios Altair (2) |
|
Capesize |
|
2023 |
|
|
182,115 |
|
Navios Sakura (2) |
|
Capesize |
|
2023 |
|
|
182,169 |
|
Navios Amethyst (2) |
|
Capesize |
|
2023 |
|
|
182,212 |
|
Navios Astra (4) |
|
Capesize |
|
2022 |
|
|
182,393 |
|
Owned Containerships |
|
Built |
|
Capacity |
|
|
Spectrum N |
|
2009 |
|
|
2,546 |
|
Fleur N |
|
2012 |
|
|
2,782 |
|
Ete N |
|
2012 |
|
|
2,782 |
|
Navios Summer (1) |
|
2006 |
|
|
3,450 |
|
Navios Verano (1) |
|
2006 |
|
|
3,450 |
|
Matson Lanai (1) |
|
2007 |
|
|
4,250 |
|
Navios Verde (1) |
|
2007 |
|
|
4,250 |
|
Navios Amarillo (1) |
|
2007 |
|
|
4,250 |
|
Navios Vermilion (1) |
|
2007 |
|
|
4,250 |
|
Navios Azure |
|
2007 |
|
|
4,250 |
|
Navios Indigo (1) |
|
2007 |
|
|
4,250 |
|
Navios Domino (1) |
|
2008 |
|
|
4,250 |
|
Matson Oahu (1) |
|
2008 |
|
|
4,250 |
|
Navios Tempo (3) |
|
2009 |
|
|
4,250 |
|
Navios Destiny (1) |
|
2009 |
|
|
4,250 |
|
Navios Devotion (1) |
|
2009 |
|
|
4,250 |
|
Navios Lapis |
|
2009 |
|
|
4,250 |
|
Navios Dorado |
|
2010 |
|
|
4,250 |
|
Carmel I |
|
2010 |
|
|
4,360 |
|
Zim Baltimore |
|
2010 |
|
|
4,360 |
|
Navios Bahamas |
|
2010 |
|
|
4,360 |
|
Navios Miami |
|
2009 |
|
|
4,563 |
|
Navios Magnolia (3) |
|
2008 |
|
|
4,730 |
|
Navios Jasmine |
|
2008 |
|
|
4,730 |
|
Navios Chrysalis |
|
2008 |
|
|
4,730 |
|
Navios Nerine |
|
2008 |
|
|
4,730 |
|
Sparrow |
|
2023 |
|
|
5,300 |
|
Zim Eagle |
|
2024 |
|
|
5,300 |
|
Zim Condor |
|
2024 |
|
|
5,300 |
|
Hawk I |
|
2024 |
|
|
5,300 |
|
Zim Falcon |
|
2024 |
|
|
5,300 |
|
Pelican I |
|
2024 |
|
|
5,300 |
|
Seagull (5) |
|
2024 |
|
|
5,300 |
|
Zim Albatross (5) |
|
2024 |
|
|
5,300 |
|
DP World Jeddah (1) |
|
2024 |
|
|
5,300 |
|
DP World Jebel Ali (1) |
|
2024 |
|
|
5,300 |
|
4
Hyundai Shanghai |
|
2006 |
|
|
6,800 |
|
Hyundai Tokyo |
|
2006 |
|
|
6,800 |
|
Hyundai Hongkong |
|
2006 |
|
|
6,800 |
|
Hyundai Singapore |
|
2006 |
|
|
6,800 |
|
Hyundai Busan |
|
2006 |
|
|
6,800 |
|
HMM Ocean |
|
2025 |
|
|
7,700 |
|
HMM Sky |
|
2025 |
|
|
7,700 |
|
Navios Unison (1) |
|
2010 |
|
|
10,000 |
|
Navios Constellation (1) |
|
2011 |
|
|
10,000 |
|
Owned Tanker Vessels |
|
Type |
|
Built |
|
Capacity |
|
|
Hector N |
|
MR1 Product Tanker |
|
2008 |
|
|
38,402 |
|
Nave Aquila (1) |
|
MR2 Product Tanker |
|
2012 |
|
|
49,991 |
|
Nave Atria (1) |
|
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 (1) |
|
MR2 Product Tanker |
|
2013 |
|
|
49,999 |
|
Nave Orion (1) |
|
MR2 Product Tanker |
|
2013 |
|
|
49,999 |
|
Nave Titan |
|
MR2 Product Tanker |
|
2013 |
|
|
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 Luminosity |
|
MR2 Product Tanker |
|
2014 |
|
|
50,240 |
|
Nave Equinox |
|
MR2 Product Tanker |
|
2007 |
|
|
50,922 |
|
Nave Pulsar (3) |
|
MR2 Product Tanker |
|
2007 |
|
|
50,922 |
|
Bougainville |
|
MR2 Product Tanker |
|
2013 |
|
|
50,626 |
|
Nave Cetus |
|
LR1 Product Tanker |
|
2012 |
|
|
74,581 |
|
Nave Ariadne |
|
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 Cielo |
|
LR1 Product Tanker |
|
2007 |
|
|
74,896 |
|
Nave Andromeda |
|
LR1 Product Tanker |
|
2011 |
|
|
75,000 |
|
Nave Estella |
|
LR1 Product Tanker |
|
2012 |
|
|
75,000 |
|
Nave Cosmos (5) |
|
Aframax / LR2 |
|
2024 |
|
|
115,651 |
|
Nave Polaris (1) |
|
Aframax / LR2 |
|
2024 |
|
|
115,699 |
|
Nave Photon (5) |
|
Aframax / LR2 |
|
2024 |
|
|
115,752 |
|
Nave Dorado(1) |
|
Aframax / LR2 |
|
2025 |
|
|
115,762 |
|
Nave Neutrino (1) |
|
Aframax / LR2 |
|
2025 |
|
|
115,807 |
|
Nave Perseus |
|
Aframax / LR2 |
|
2025 |
|
|
115,812 |
|
Nave Galactic |
|
VLCC |
|
2009 |
|
|
296,945 |
|
Nave Constellation |
|
VLCC |
|
2010 |
|
|
296,988 |
|
Nave Universe |
|
VLCC |
|
2011 |
|
|
297,066 |
|
Nave Quasar |
|
VLCC |
|
2010 |
|
|
297,376 |
|
Nave Buena Suerte |
|
VLCC |
|
2011 |
|
|
297,491 |
|
Nave Synergy |
|
VLCC |
|
2010 |
|
|
309,483 |
|
Bareboat-in Vessels |
|
Type |
|
Built |
|
Capacity |
|
|
Navios Star |
|
Kamsarmax |
|
2021 |
|
|
81,994 |
|
Navios Amitie |
|
Kamsarmax |
|
2021 |
|
|
82,002 |
|
Navios Libra |
|
Kamsarmax |
|
2019 |
|
|
82,011 |
|
Nave Electron |
|
VLCC |
|
2021 |
|
|
313,239 |
|
Nave Celeste |
|
VLCC |
|
2022 |
|
|
313,418 |
|
5
Nave Allegro |
|
VLCC |
|
2020 |
|
|
313,433 |
|
Nave Tempo |
|
VLCC |
|
2021 |
|
|
313,486 |
|
Containerships to be Delivered |
|
Expected |
|
Capacity |
|
|
TBN XVII |
|
H1 2026 |
|
|
7,900 |
|
TBN XVIII |
|
H2 2026 |
|
|
7,900 |
|
TBN XIX |
|
H2 2026 |
|
|
7,900 |
|
TBN XX |
|
H1 2027 |
|
|
7,900 |
|
Tanker Vessels to be Delivered |
|
Type |
|
Expected |
|
Capacity |
|
|
TBN I (2) |
|
MR2 Product Tanker |
|
H2 2025 |
|
|
52,000 |
|
TBN II (2) |
|
MR2 Product Tanker |
|
H1 2026 |
|
|
52,000 |
|
TBN III (2) |
|
MR2 Product Tanker |
|
H2 2026 |
|
|
52,000 |
|
TBN IV (2) |
|
MR2 Product Tanker |
|
H2 2026 |
|
|
52,000 |
|
TBN V (2) |
|
MR2 Product Tanker |
|
H1 2027 |
|
|
52,000 |
|
TBN VI (2) |
|
MR2 Product Tanker |
|
H1 2027 |
|
|
52,000 |
|
TBN VII |
|
Aframax/LR2 |
|
H1 2026 |
|
|
115,000 |
|
TBN VIII |
|
Aframax/LR2 |
|
H1 2026 |
|
|
115,000 |
|
TBN IX |
|
Aframax/LR2 |
|
H1 2026 |
|
|
115,000 |
|
TBN X |
|
Aframax/LR2 |
|
H2 2026 |
|
|
115,000 |
|
TBN XI |
|
Aframax/LR2 |
|
H1 2027 |
|
|
115,000 |
|
TBN XII |
|
Aframax/LR2 |
|
H1 2027 |
|
|
115,000 |
|
TBN XIII |
|
Aframax/LR2 |
|
H1 2027 |
|
|
115,000 |
|
TBN XXI |
|
Aframax/LR2 |
|
H1 2027 |
|
|
115,000 |
|
TBN XXII |
|
Aframax/LR2 |
|
H1 2027 |
|
|
115,000 |
|
TBN XIV |
|
Aframax/LR2 |
|
H2 2027 |
|
|
115,000 |
|
TBN XV |
|
Aframax/LR2 |
|
H2 2027 |
|
|
115,000 |
|
TBN XVI |
|
Aframax/LR2 |
|
H1 2028 |
|
|
115,000 |
|
6
Our Charters
We provide seaborne shipping services under short-term, medium-term, and long-term time charters, bareboat charters and voyage charters with customers that we believe are creditworthy. For the six month period ended June 30, 2025, only one customer accounted for 10.0% or more of our total revenues and represented approximately 15.5% of our total revenues. For the six month period ended June 30, 2024, no customer accounted for 10.0% or more of our total revenues.
Our revenues are driven by the number of vessels in the fleet, the number of days during which the vessels operate and our charter hire rates, which, in turn, are affected by a number of factors, including:
Time charters are available for varying periods, ranging from a single trip (spot charter) to long-term which may be many years. In general, a long-term time charter assures the vessel owner of a consistent stream of revenue. Operating the vessel in the spot market affords the owner greater spot market opportunity, which may result in high rates when vessels are in high demand or low rates when vessel availability exceeds demand. We intend to operate our vessels in the long-term charter market. Vessel charter rates are affected by world economics, international events, weather conditions, strikes, governmental policies, supply and demand and many other factors that might be beyond our control. Please read the section entitled “Risk Factors” in our Annual Report for a discussion of certain risks inherent in our business.
We could lose a customer or the benefits of a charter if:
Under some of our time charters, either party may terminate the charter contract in the event of war in specified countries or in locations that would significantly disrupt the free trade of the vessel. Some of the time charters covering our vessels require us to return to the charterer, upon the loss of the vessel, all advances paid by the charterer but not earned by us.
Trends and Factors Affecting Our Future Results of Operations
We believe the principal factors that will affect our future results of operations are the economic, regulatory, political and governmental conditions that affect the shipping industry generally and that affect conditions in countries and markets in which our vessels engage in business. Please read “Risk Factors” in our Annual Report for a discussion of certain risks inherent in our business.
7
Results of Operations
Overview
The following table reflects certain key indicators of Navios Partners’ fleet performance for the three and six month periods ended June 30, 2025 and 2024.
|
|
Three Month Period Ended June 30, 2025 |
|
|
Three Month Period Ended June 30, 2024 |
|
|
Six Month Period Ended June 30, 2025 |
|
|
Six Month Period Ended June 30, 2024 |
|
||||
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
||||
Available Days(1) |
|
|
13,388 |
|
|
|
13,498 |
|
|
|
26,844 |
|
|
|
27,038 |
|
Operating Days(2) |
|
|
13,296 |
|
|
|
13,306 |
|
|
|
26,645 |
|
|
|
26,751 |
|
Fleet Utilization(3) |
|
|
99.3 |
% |
|
|
98.6 |
% |
|
|
99.3 |
% |
|
|
98.9 |
% |
Opex Days(4) |
|
|
13,703 |
|
|
|
12,981 |
|
|
|
27,289 |
|
|
|
25,942 |
|
Time Charter Equivalent rate (per day)(5) |
|
$ |
23,040 |
|
|
$ |
23,384 |
|
|
$ |
22,154 |
|
|
$ |
22,448 |
|
Opex rate (per day)(6) |
|
$ |
7,108 |
|
|
$ |
6,801 |
|
|
$ |
7,045 |
|
|
$ |
6,800 |
|
Vessels operating at end of periods |
|
|
154 |
|
|
|
151 |
|
|
|
154 |
|
|
|
151 |
|
8
FINANCIAL HIGHLIGHTS
The following table presents consolidated revenue and expense information for the three and six month periods ended June 30, 2025 and 2024. For changes in the presentation of selected financial information, refer to Note 2 – Summary of significant accounting policies included in the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report.
|
|
Three Month Period Ended June 30, 2025 |
|
|
Three Month Period Ended June 30, 2024 |
|
|
Six Month Period Ended June 30, 2025 |
|
|
Six Month Period Ended June 30, 2024 |
|
||||
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
||||
|
|
(In thousands of U.S. dollars) |
|
|||||||||||||
Time charter and voyage revenues |
|
$ |
327,558 |
|
|
$ |
342,155 |
|
|
$ |
631,670 |
|
|
$ |
660,710 |
|
Time charter and voyage expenses |
|
|
(31,215 |
) |
|
|
(40,044 |
) |
|
|
(61,232 |
) |
|
|
(81,955 |
) |
Vessel operating expenses |
|
|
(97,404 |
) |
|
|
(88,282 |
) |
|
|
(192,246 |
) |
|
|
(176,410 |
) |
General and administrative expenses |
|
|
(23,422 |
) |
|
|
(20,584 |
) |
|
|
(45,394 |
) |
|
|
(41,328 |
) |
Depreciation and amortization |
|
|
(80,785 |
) |
|
|
(72,219 |
) |
|
|
(159,430 |
) |
|
|
(142,136 |
) |
Amortization of unfavorable lease terms |
|
|
2,912 |
|
|
|
3,171 |
|
|
|
5,792 |
|
|
|
6,307 |
|
Gain/ (loss) on sale of vessels, net |
|
|
5,601 |
|
|
|
7,256 |
|
|
|
(329 |
) |
|
|
9,133 |
|
Interest expense and finance cost, net |
|
|
(33,485 |
) |
|
|
(30,087 |
) |
|
|
(66,995 |
) |
|
|
(59,496 |
) |
Interest income |
|
|
3,069 |
|
|
|
3,596 |
|
|
|
6,463 |
|
|
|
6,992 |
|
Other expense, net |
|
|
(2,882 |
) |
|
|
(3,493 |
) |
|
|
(6,625 |
) |
|
|
(6,987 |
) |
Net income |
|
$ |
69,947 |
|
|
$ |
101,469 |
|
|
$ |
111,674 |
|
|
$ |
174,830 |
|
EBITDA(1) |
|
$ |
178,236 |
|
|
$ |
197,008 |
|
|
$ |
325,844 |
|
|
$ |
363,163 |
|
Adjusted EBITDA(1) |
|
$ |
172,635 |
|
|
$ |
189,752 |
|
|
$ |
326,173 |
|
|
$ |
354,030 |
|
Operating Surplus (1) |
|
$ |
67,208 |
|
|
$ |
91,171 |
|
|
$ |
114,296 |
|
|
$ |
157,785 |
|
Period over Period Comparisons
For the Three Month Period ended June 30, 2025 compared to the Three Month Period ended June 30, 2024
Time charter and voyage revenues: Time charter and voyage revenues of Navios Partners for the three month period ended June 30, 2025 decreased by $14.6 million, or 4.3%, to $327.6 million, as compared to $342.2 million for the same period in 2024. The decrease in revenue was mainly attributable to the decrease in the TCE rate, the available days of our fleet and the revenue from freight voyages. For the three month periods ended June 30, 2025 and 2024, time charter and voyage revenues were positively affected by $6.5 million and $2.4 million, respectively, relating to the straight-line effect of the charters with de-escalating rates. For the three month period ended June 30, 2025, the TCE rate decreased by 1.5% to $23,040 per day, as compared to $23,384 per day for the same period in 2024. The available days of the fleet slightly decreased by 0.8% to 13,388 days for the three month period ended June 30, 2025, as compared to 13,498 days for the same period in 2024.
Time charter and voyage expenses: Time charter and voyage expenses for the three month period ended June 30, 2025 decreased by $8.8 million to $31.2 million, as compared to $40.0 million for the same period in 2024. The decrease was mainly attributable to a: (i) $10.9 million decrease in bunker expenses arising from the decreased days of freight voyages in the second quarter of 2025; (ii) $2.2 million decrease in port expenses; (iii) $1.2 million decrease in bareboat and charter-in hire expense of the dry bulk fleet; and (iv) $0.1 million decrease in brokers’ commissions. The decrease was partially mitigated by: (i) $4.0 million commercial management fee on revenues in accordance with the management agreement; and (ii) a $1.6 million increase in other voyage expenses.
Vessel operating expenses: Vessel operating expenses for the three month period ended June 30, 2025 increased by $9.1 million to $97.4 million, as compared to $88.3 million for the same period in 2024. The increase was due to a 5.6% increase in the opex days and a 4.5% increase in the opex daily rate to $7,108 also as a result of the change in the composition of our fleet.
9
General and administrative expenses: General and administrative expenses increased by $2.8 million to $23.4 million for the three month period ended June 30, 2025, as compared to $20.6 million for the same period in 2024, mainly due to the increase in administrative expenses in accordance with our administrative services agreement commencing January 1, 2025 (“Administrative Services Agreement”) primarily due to the increase in our fleet as well as the increase in legal and professional fees, audit fees and other administrative expenses.
Depreciation and amortization: Depreciation and amortization amounted to $80.8 million for the three month period ended June 30, 2025, as compared to $72.2 million for the same period in 2024. The increase of $8.6 million was mainly attributable to: (i) an $8.7 million increase in depreciation expense due to the delivery of 21 vessels since the second quarter of 2024; (ii) a $3.3 million increase in amortization of the deferred drydock and special survey costs due to the increase in the number of vessels that underwent drydocking or special survey; and (iii) a $0.6 million increase in depreciation expense mainly due to vessel improvements. The above increase was partially mitigated by a: (i) $3.4 million decrease in depreciation expense due to the sale of 12 vessels since the second quarter of 2024; and (ii) $0.6 million decrease in amortization of favorable lease terms of intangible assets and amortization of finance leases. Depreciation of vessels is calculated using an estimated useful life of 25 years for dry bulk and tanker vessels and 30 years for containerships, respectively, from the date the vessel was originally delivered from the shipyard.
Amortization of unfavorable lease terms: Amortization of unfavorable lease terms amounted to $2.9 million and $3.2 million for the three month periods ended June 30, 2025 and 2024, respectively, relating to the amortization of the fair value of the time charters with unfavorable lease terms as determined at the acquisition date of Navios Maritime Containers L.P. (“Navios Containers”).
Gain/ (loss) on sale of vessels, net: Gain on sale of vessels, net amounted to $5.6 million for the three month period ended June 30, 2025, relating to the sale of our vessels, including one vessel classified as held for sale. Gain on sale of vessels, net amounted to $7.3 million for the three month period ended June 30, 2024, relating to a $14.9 million gain on sale of our vessels, partially mitigated by a $7.6 million impairment loss of two of our vessels.
Interest expense and finance cost, net: Interest expense and finance cost, net for the three month period ended June 30, 2025, increased by $3.4 million to $33.5 million, as compared to $30.1 million for the same period in 2024. The increase was mainly due to the decrease in interest expense capitalized related to deposits for vessel acquisitions and the increase in the discount effect of long-term assets and other finance costs. The weighted average interest rate for the three month period ended June 30, 2025 decreased to 6.3% from 7.1% for the same period in 2024, while Navios Partners’ weighted average loan balance increased to $2,194.0 million for the three month period ended June 30, 2025, as compared to $1,930.2 million for the same period in 2024.
Interest income: Interest income amounted to $3.1 million for the three month period ended June 30, 2025, as compared to $3.6 million for the same period in 2024, mainly due to the decrease of time deposits.
Other expense, net: Other expense, net amounted to $2.9 million for the three month period ended June 30, 2025, as compared to $3.5 million for the same period in 2024, mainly due to the decrease in claims.
Net income: Net income for the three month period ended June 30, 2025 amounted to $69.9 million as compared to $101.5 million for the same period in 2024. The decrease in net income of $31.6 million was due to the factors discussed above.
For the Six Month Period ended June 30, 2025 compared to the Six Month Period ended June 30, 2024
Time charter and voyage revenues: Time charter and voyage revenues of Navios Partners for the six month period ended June 30, 2025 decreased by $29.0 million, or 4.4%, to $631.7 million, as compared to $660.7 million for the same period in 2024. The decrease in revenue was mainly attributable to the decrease in the TCE rate, the available days of our fleet and the revenue from freight voyages. For the six month periods ended June 30, 2025 and 2024, time charter and voyage revenues were positively affected by $3.9 million and $2.5 million, respectively, relating to the straight-line effect of the charters with de-escalating rates. For the six month period ended June 30, 2025, the TCE rate decreased by 1.3% to $22,154 per day, as compared to $22,448 per day for the same period in 2024. The available days of the fleet slightly decreased by 0.7% to 26,844 days for the six month period ended June 30, 2025, as compared to 27,038 days for the same period in 2024.
Time charter and voyage expenses: Time charter and voyage expenses for the six month period ended June 30, 2025 decreased by $20.8 million to $61.2 million, as compared to $82.0 million for the same period in 2024. The decrease was mainly attributable to a: (i) $23.6 million decrease in bunker expenses arising from the decreased days of freight voyages in the six month period ended June 30, 2025; (ii) $4.1 million decrease in port expenses; and (iii) $3.6 million decrease in
10
bareboat and charter-in hire expense of the dry bulk fleet. The decrease was partially mitigated by: (i) $7.9 million commercial management fee on revenues in accordance with the management agreement; and (ii) a $2.6 million increase in other voyage expenses.
Vessel operating expenses: Vessel operating expenses for the six month period ended June 30, 2025 increased by $15.8 million to $192.2 million, as compared to $176.4 million for the same period in 2024. The increase was due to a 5.2% increase in the opex days and a 3.6% increase in the opex daily rate to $7,045 also as a result of the change in the composition of our fleet.
General and administrative expenses: General and administrative expenses increased by $4.1 million to $45.4 million for the six month period ended June 30, 2025, as compared to $41.3 million for the same period in 2024, mainly due to the increase in administrative expenses in accordance with our Administrative Services Agreement primarily due to the increase in our fleet as well as the increase in legal and professional fees, audit fees and other administrative expenses.
Depreciation and amortization: Depreciation and amortization amounted to $159.4 million for the six month period ended June 30, 2025 as compared to $142.1 million for the same period in 2024. The increase of $17.3 million was mainly attributable to a: (i) $16.9 million increase in depreciation expense due to the delivery of 22 vessels in 2024 and during the first half of 2025; (ii) $6.9 million increase in amortization of the deferred drydock and special survey costs due to the increase in the number of vessels that underwent drydocking or special survey; and (iii) $1.4 million increase in depreciation expense mainly due to vessel improvements. The above increase was partially mitigated by a: (i) $6.9 million decrease in depreciation expense due to the sale of 13 vessels in 2024 and during the first half of 2025; and (ii) $1.0 million decrease in amortization of favorable lease terms of intangible assets and amortization of finance leases. Depreciation of vessels is calculated using an estimated useful life of 25 years for dry bulk and tanker vessels and 30 years for containerships, respectively, from the date the vessel was originally delivered from the shipyard.
Amortization of unfavorable lease terms: Amortization of unfavorable lease terms amounted to $5.8 million and $6.3 million for the six month periods ended June 30, 2025 and 2024, respectively, relating to the amortization of the fair value of the time charters with unfavorable lease terms as determined at the acquisition date of Navios Containers.
Gain/ (loss) on sale of vessels, net: Loss on sale of vessels, net amounted to $0.3 million for the six month period ended June 30, 2025, relating to the sale of our vessels, including one vessel classified as held for sale. Gain on sale of vessels, net amounted to $9.1 million for the six month period ended June 30, 2024, relating to a $16.7 million gain on sale of our vessels, partially mitigated by a $7.6 million impairment loss of two of our vessels.
Interest expense and finance cost, net: Interest expense and finance cost, net for the six month period ended June 30, 2025 increased by $7.5 million to $67.0 million, as compared to $59.5 million for the same period in 2024. The increase was mainly due to the decrease in interest expense capitalized related to deposits for vessel acquisitions and the increase in the discount effect of long-term assets and other finance costs. The weighted average interest rate for the six month period ended June 30, 2025 decreased to 6.3% from 7.1% for the same period in 2024, while Navios Partners’ weighted average loan balance increased to $2,197.3 million for the six month period ended June 30, 2025, as compared to $1,909.3 million for the same period in 2024.
Interest income: Interest income amounted to $6.5 million for the six month period ended June 30, 2025, as compared to $7.0 million for the same period in 2024, mainly due to the decrease of time deposits.
Other expense, net: Other expense, net amounted to $6.6 million for the six month period ended June 30, 2025, as compared to $7.0 million for the same period in 2024, mainly due to the decrease in other miscellaneous expenses, net, partially mitigated by the increase in claims.
Net income: Net income for the six month period ended June 30, 2025 amounted to $111.7 million as compared to $174.8 million for the same period in 2024. The decrease in net income of $63.1 million was due to the factors discussed above.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that have or are reasonably likely to have, a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
11
Liquidity and Capital Resources
We anticipate that our primary sources of funds for our short-term liquidity needs will consist of cash flows from operations, our equity offerings, proceeds from asset sales, long-term bank borrowings and other debt raisings. In addition to distributions on our units and common unit repurchase program, our primary short-term liquidity needs are to fund general working capital requirements, cash reserve requirements including those under our credit facilities and debt service, while our long-term liquidity needs primarily relate to expansion and investment capital expenditures and other maintenance capital expenditures and debt repayment. As of June 30, 2025, Navios Partners’ current assets totaled $500.8 million, while current liabilities totaled $459.0 million, resulting in a positive working capital position of $41.8 million. Navios Partners’ cash forecast indicates that it will generate sufficient cash through its contracted revenue, as of September 2, 2025, of $3.1 billion and cash proceeds from the sale of vessels (see Note 4 - Vessels, net and Note 15 - Subsequent events to the unaudited condensed consolidated financial statements included elsewhere in this report) to make the required principal and interest payments on its indebtedness, to make payments for capital expenditures, provide for the normal working capital requirements of the business for a period of at least 12 months from the date of issuance of our unaudited condensed consolidated financial statements.
Generally, our long-term sources of funds derive from cash from operations, long-term bank borrowings and other debt or equity financings to fund acquisitions and expansion and investment capital expenditures. We cannot assure you that we will be able to secure adequate financing or to obtain additional funds on favorable terms to meet our liquidity needs.
Cash deposits and cash equivalents in excess of amounts covered by government provided insurance are exposed to loss in the event of non-performance by financial institutions. Navios Partners does maintain cash deposits and cash equivalents in excess of government provided insurance limits. Navios Partners also minimizes exposure to credit risk by dealing with a diversified group of major financial institutions.
Navios Partners may use funds to repurchase its outstanding common units and/or indebtedness from time to time. Repurchases may be made in the open market, or through privately negotiated transactions or otherwise, in compliance with applicable laws, rules and regulations, at prices and on terms Navios Partners deems appropriate and subject to its cash requirements for other purposes, compliance with the covenants under Navios Partners’ credit facilities, and other factors management deems relevant.
In July 2022, the Board of Directors of Navios Partners authorized a common unit repurchase program for up to $100.0 million of Navios Partners’ common units. Common unit repurchases will be made from time to time for cash in open market transactions at prevailing market prices or in privately negotiated transactions. The timing and amount of repurchases under the program will be determined by Navios Partners’ management based upon market conditions and financial and other considerations, including working capital and planned or anticipated growth opportunities. The program does not require any minimum repurchase or any specific number of common units and may be suspended or reinstated at any time in the Navios Partners’ discretion and without notice. The Board of Directors will review the program periodically. As of September 2, 2025, Navios Partners had repurchased 1,251,730 common units since the commencement of the program, for a total cost of approximately $54.8 million.
The following table presents cash flow information derived from the unaudited condensed Consolidated Statements of Cash Flows of Navios Partners for the six month periods ended June 30, 2025 and 2024.
|
|
Six Month Period Ended June 30, 2025 |
|
|
Six Month Period Ended June 30, 2024 |
|
||
|
|
(unaudited) |
|
|
(unaudited) |
|
||
|
|
(In thousands of U.S. dollars) |
|
|||||
Net cash provided by operating activities |
|
$ |
278,180 |
|
|
$ |
225,915 |
|
Net cash used in investing activities |
|
|
(268,650 |
) |
|
|
(293,957 |
) |
Net cash provided by financing activities |
|
|
68,304 |
|
|
|
98,711 |
|
Increase in cash, cash equivalents and restricted cash |
|
$ |
77,834 |
|
|
$ |
30,669 |
|
12
Net cash provided by operating activities for the six month period ended June 30, 2025 as compared to the net cash provided by operating activities for the six month period ended June 30, 2024
Net cash provided by operating activities increased by $52.3 million to $278.2 million for the six month period ended June 30, 2025, as compared to $225.9 million for the same period in 2024. In determining net cash provided by operating activities, net income is adjusted for the effects of certain non-cash items as discussed below.
The aggregate adjustments to reconcile net income to net cash provided by operating activities were $152.7 million of non-cash positive net adjustments for the six month period ended June 30, 2025, which consisted mainly of the following adjustments: (i) $159.4 million depreciation and amortization; (ii) $3.9 million amortization and write-off of deferred finance costs; and (iii) $0.3 million loss on sale of vessels, net. These adjustments were partially mitigated by: (i) $5.8 million amortization of unfavorable lease terms; (ii) $4.7 million other non-cash adjustments; and (iii) $0.4 million amortization of operating lease assets/ liabilities.
The net cash inflow resulting from the change in operating assets and liabilities of $13.8 million for the six month period ended June 30, 2025 resulted from a: (i) $39.5 million increase in amounts due to related parties; (ii) $35.0 million decrease in amounts due from related parties; (iii) $12.1 million decrease in accounts receivable; (iv) $5.1 million increase in accrued expenses; (v) $2.2 million decrease in prepaid expenses and other current assets; and (vi) $0.9 million increase in accounts payable. This was partially mitigated by: (i) $77.2 million in payments for drydock and special survey costs; and (ii) a $3.8 million decrease in deferred revenue.
The aggregate adjustments to reconcile net income to net cash provided by operating activities were $122.8 million of non-cash positive net adjustments for the six month period ended June 30, 2024, which consisted mainly of the following adjustments: (i) $142.1 million depreciation and amortization; and (ii) $3.7 million amortization and write-off of deferred finance costs. These adjustments were partially mitigated by: (i) $9.1 million gain from sale of vessels, net; (ii) $6.3 million amortization of unfavorable lease terms; (iii) $5.0 million other non-cash adjustments; and (iv) $2.6 million amortization of operating lease assets/ liabilities.
The net cash outflow resulting from the change in operating assets and liabilities of $71.7 million for the six month period ended June 30, 2024 resulted from a: (i) $38.6 million in payments for drydock and special survey costs; (ii) $32.0 million decrease in amounts due to related parties; (iii) $7.1 million decrease in accounts payable; (iv) $6.0 million decrease in deferred revenue; and (v) $1.0 million decrease in accrued expenses. This was partially mitigated by a: (i) $10.1 million decrease in amounts due from related parties (including current and non-current portion); (ii) $1.6 million decrease in prepaid expenses and other current assets; and (iii) $1.3 million decrease in accounts receivable.
Net cash used in investing activities for the six month period ended June 30, 2025 as compared to the net cash used in investing activities for the six month period ended June 30, 2024
Net cash used in investing activities for the six month period ended June 30, 2025 amounted to $268.7 million as compared to $294.0 million net cash used in investing activities for the same period in 2024.
Net cash used in investing activities of $268.7 million for the six month period ended June 30, 2025 was mainly due to: (i) $193.4 million related to vessel acquisitions and additions; and (ii) $109.9 million related to deposits for the acquisition/ option to acquire vessels and capitalized expenses. This was partially mitigated by: (i) $33.7 million of proceeds related to the sale of three vessels; and (ii) a $0.9 million decrease in time deposits with original maturities greater than three months.
Net cash used in investing activities of $294.0 million for the six month period ended June 30, 2024 was mainly due to: (i) $211.2 million related to vessel acquisitions and additions; and (ii) $182.6 million related to deposits for the acquisition/ option to acquire vessels and capitalized expenses. This was partially mitigated by: (i) $91.4 million of proceeds related to the sale of four vessels; and (ii) an $8.4 million decrease in time deposits with original maturities greater than three months.
Net cash provided by financing activities for the six month period ended June 30, 2025 as compared to net cash provided by financing activities for the six month period ended June 30, 2024
Net cash provided by financing activities decreased by $30.4 million to $68.3 million inflow for the six month period ended June 30, 2025, as compared to $98.7 million inflow for the same period in 2024.
13
Net cash provided by financing activities of $68.3 million for the six month period ended June 30, 2025 was mainly due to $345.3 million of proceeds from the new credit facilities and sale and leaseback agreements. This was partially mitigated by: (i) $245.7 million repayments of long-term debt, finance lease and financial liabilities; (ii) $23.0 million related to the acquisition of treasury units; (iii) $5.3 million payments of deferred finance costs related to the new credit facilities and financial liabilities; and (iv) $3.0 million payments for cash distributions.
Net cash provided by financing activities of $98.7 million for the six month period ended June 30, 2024 was mainly due to $311.0 million of proceeds from the new credit facilities and sale and leaseback agreements. This was partially mitigated by: (i) $199.2 million repayments of long-term debt, finance lease and financial liabilities; (ii) $5.0 million related to the acquisition of treasury units; (iii) $5.0 million payments of deferred finance costs related to the new credit facilities and financial liabilities; and (iv) $3.1 million payments for cash distributions.
Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities, EBITDA and Operating Surplus
|
|
Three Month Period Ended June 30, 2025 |
|
|
Three Month Period Ended June 30, 2024 |
|
|
Six Month Period Ended June 30, 2025 |
|
|
Six Month Period Ended June 30, 2024 |
|
||||
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
||||
|
|
(In thousands of U.S. dollars) |
|
|||||||||||||
Net cash provided by operating activities |
|
$ |
121,628 |
|
|
$ |
131,479 |
|
|
$ |
278,180 |
|
|
$ |
225,915 |
|
Net increase in operating assets |
|
|
35,396 |
|
|
|
25,198 |
|
|
|
27,975 |
|
|
|
25,564 |
|
Net (increase)/ decrease in operating liabilities |
|
|
(18,706 |
) |
|
|
3,122 |
|
|
|
(41,752 |
) |
|
|
46,105 |
|
Net interest cost |
|
|
30,416 |
|
|
|
26,491 |
|
|
|
60,532 |
|
|
|
52,504 |
|
Amortization and write-off of deferred finance costs |
|
|
(2,227 |
) |
|
|
(2,033 |
) |
|
|
(3,899 |
) |
|
|
(3,709 |
) |
Amortization of operating lease assets/liabilities |
|
|
187 |
|
|
|
1,803 |
|
|
|
373 |
|
|
|
2,594 |
|
Other non-cash adjustments |
|
|
5,941 |
|
|
|
3,692 |
|
|
|
4,764 |
|
|
|
5,057 |
|
Gain/ (loss) on sale of vessels, net |
|
|
5,601 |
|
|
|
7,256 |
|
|
|
(329 |
) |
|
|
9,133 |
|
EBITDA(1) |
|
$ |
178,236 |
|
|
$ |
197,008 |
|
|
$ |
325,844 |
|
|
$ |
363,163 |
|
(Gain)/ loss on sale of vessels, net |
|
|
(5,601 |
) |
|
|
(7,256 |
) |
|
|
329 |
|
|
|
(9,133 |
) |
Adjusted EBITDA(1) |
|
$ |
172,635 |
|
|
$ |
189,752 |
|
|
$ |
326,173 |
|
|
$ |
354,030 |
|
Cash interest income |
|
|
3,084 |
|
|
|
3,390 |
|
|
|
6,962 |
|
|
|
6,180 |
|
Cash interest paid |
|
|
(32,130 |
) |
|
|
(35,865 |
) |
|
|
(65,539 |
) |
|
|
(67,978 |
) |
Maintenance and replacement capital expenditures |
|
|
(76,381 |
) |
|
|
(66,106 |
) |
|
|
(153,300 |
) |
|
|
(134,447 |
) |
Operating Surplus(2) |
|
$ |
67,208 |
|
|
$ |
91,171 |
|
|
$ |
114,296 |
|
|
$ |
157,785 |
|
(1) EBITDA and Adjusted EBITDA
EBITDA represents net income before interest and finance costs, depreciation and amortization and income taxes. Adjusted EBITDA represents EBITDA excluding certain items, as described in the table above. 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 (increase)/ decrease in operating liabilities; (iii) net interest cost; (iv) amortization and write-off of deferred finance costs; (v) amortization of operating lease assets/ liabilities; (vi) other non-cash adjustments; and (vii) gain/ (loss) on sale of vessels, net. Navios Partners believes that EBITDA and Adjusted EBITDA are each the basis upon which liquidity can be assessed and present 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.
14
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.
EBITDA for the three month periods ended June 30, 2025 and 2024 was affected by the item described in the table above. Excluding this item, Adjusted EBITDA decreased by $17.2 million to $172.6 million for the three month period ended June 30, 2025, as compared to $189.8 million for the same period in 2024. The decrease in Adjusted EBITDA was primarily due to a: (i) $14.6 million decrease in time charter and voyage revenues; (ii) $9.1 million increase in vessel operating expenses due to a 5.6% increase in the opex days and a 4.5% increase in the opex daily rate to $7,108 also as a result of the change in the composition of our fleet; and (iii) $2.8 million increase in general and administrative expenses in accordance with our Administrative Services Agreement primarily due to the increase in our fleet as well as the increase in legal and professional fees, audit fees and other administrative expenses. The above decrease was partially mitigated by: (i) an $8.8 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 second quarter of 2025; and (ii) a $0.5 million decrease in other expense, net.
EBITDA for the six month periods ended June 30, 2025 and 2024 was affected by the item described in the table above. Excluding this item, Adjusted EBITDA decreased by $27.8 million to $326.2 million for the six month period ended June 30, 2025, as compared to $354.0 million for the same period in 2024. The decrease in Adjusted EBITDA was primarily due to a: (i) $29.0 million decrease in time charter and voyage revenues; (ii) $15.8 million increase in vessel operating expenses due to a 5.2% increase in the opex days and a 3.6% increase in the opex daily rate to $7,045 also as a result of the change in the composition of our fleet; and (iii) $4.1 million increase in general and administrative expenses in accordance with our Administrative Services Agreement primarily due to the increase in our fleet as well as the increase in legal and professional fees, audit fees and other administrative expenses. The above decrease was partially mitigated by a: (i) $20.8 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 first six months of 2025; and (ii) $0.3 million decrease in other expense, net.
(2) Operating Surplus
Navios Partners generated Operating Surplus for the six month period ended June 30, 2025 of $114.3 million, as compared to $157.8 million for the same period in 2024. Operating Surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership’s ability to make quarterly cash distributions (See “Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities, EBITDA and Operating Surplus” contained herein).
Operating Surplus represents net income adjusted for depreciation and amortization expense, non-cash interest expense, non-cash interest income, estimated maintenance and replacement capital expenditures and one-off items. Maintenance and replacement capital expenditures are those capital expenditures required to maintain over the long term the operating capacity of, or the revenue generated by, Navios Partners’ capital assets.
Operating Surplus is a quantitative measure used in the publicly-traded partnership investment community to assist in evaluating a partnership’s ability to make quarterly cash distributions. Operating Surplus is not required by accounting principles generally accepted in the United States and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity.
Capital Expenditures
Navios Partners finances its capital expenditures with cash flows from operations, equity offerings, proceeds from asset sales, long-term bank borrowings and other debt raisings. Capital expenditures for each of the six month periods ended June 30, 2025 and 2024 amounted to $303.3 million and $393.8 million, respectively.
Maintenance for our vessels and expenses related to drydocking expenses are reimbursed at cost by Navios Partners to Navios Shipmanagement Inc. and its affiliates, which are entities affiliated with the Company’s Chairwoman and Chief
15
Executive Officer, under the management agreement. For more information, please read Note 12 – Transactions with related parties and affiliates to the unaudited condensed consolidated financial statements, included elsewhere in this report.
Maintenance and Replacement Capital Expenditures Reserve
The reserves for estimated maintenance and replacement capital expenditures for the three and six month periods ended June 30, 2025 were $76.4 million and $153.3 million, respectively. We estimate that our annual replacement reserve for the year ending December 31, 2025 will be approximately $305.6 million, for replacing our vessels at the end of their useful lives. The reserves for estimated maintenance and replacement capital expenditures for the three and six month periods ended June 30, 2024 were $66.1 million and $134.4 million, respectively.
The amount for estimated replacement capital expenditures attributable to future vessel replacement was based on the following assumptions: (i) current market price to purchase a five-year-old vessel of similar size and specifications; (ii) a 25-year useful life for dry bulk and tanker vessels and a 30-year useful life for containerships; and (iii) a relative net investment rate.
The amount for estimated maintenance capital expenditures attributable to future vessel drydocking and special survey was based on certain assumptions including the remaining useful life of the owned vessels of our fleet, market costs of drydocking and special survey and a relative net investment rate.
Our Board of Directors, with the approval of the conflicts committee, may determine that one or more of our assumptions should be revised, which could cause our Board of Directors to increase or decrease the amount of estimated maintenance and replacement capital expenditures. The actual cost of replacing the vessels in our fleet will depend on a number of factors, including prevailing market conditions, charter hire rates and the availability and cost of financing at the time of replacement. We may elect to finance some or all of our maintenance and replacement capital expenditures through the issuance of additional common units, which could be dilutive to existing unitholders.
Limitations on Cash Distributions and Our Ability to Change Our Cash Distribution Policy
There is no guarantee that unitholders will receive quarterly distributions from us on the common units on any quarter.
Our ability to make distributions to our unitholders depends on the performance of our subsidiaries and their ability to distribute funds to us. The ability of our subsidiaries to make distributions to us may be restricted by, among other things, the provisions of existing and future indebtedness, applicable partnership and limited liability company laws and other laws and regulations.
See Note 13 – Cash distributions and earnings per unit to the unaudited condensed consolidated financial statements included elsewhere in this report.
Quantitative and Qualitative Disclosures about Market Risks
Foreign Exchange Risk
Our functional and reporting currency is the U.S. dollar. We engage in worldwide commerce with a variety of entities. Although our operations may expose us to certain levels of foreign currency risk, our transactions are predominantly U.S. dollar denominated. Transactions in currencies other than the U.S. dollar are translated at the exchange rate in effect at the date of each transaction. Differences in exchange rates during the period between the date a transaction denominated in a foreign currency is consummated and the date on which it is either settled or translated are recognized.
Interest Rate Risk
The tighter monetary policy and higher long-term interest rates result in a higher cost of capital for our business.
Borrowings under certain of our credit facilities and financial liabilities bear interest at a rate based on a premium over Secured Overnight Financing Rate (“SOFR”). Therefore, we are exposed to the risk that our interest expense may increase if interest rates rise. For the six month periods ended June 30, 2025 and 2024, we paid interest on our outstanding debt at a weighted average interest rate of 6.3% and 7.1%, respectively. A 1% increase in SOFR would have increased our interest expense for the six month periods ended June 30, 2025 and 2024 by $9.4 million and $6.4 million, respectively.
16
Concentration of Credit Risk
Financial instruments, which potentially subject us to significant concentrations of credit risk, consist principally of cash, other investments and trade accounts receivable. We closely monitor our exposure to customers for credit risk. We have policies in place to ensure that we trade with customers with an appropriate credit history.
For the six month period ended June 30, 2025, only one customer accounted for 10.0% or more of our total revenues and represented approximately 15.5% of our total revenues. For the six month period ended June 30, 2024, no customer accounted for 10.0% or more of our total revenues.
If we lose a charter, we may be unable to re-deploy the related vessel on terms as favorable to us due to the long-term nature of most charters and the cyclical nature of the industry or we may be forced to charter the vessel on the spot market at then market rates which may be less favorable than the charter that has been terminated. If we are unable to re-deploy a vessel for which the charter has been terminated, we will not receive any revenues from that vessel, but we may be required to pay expenses necessary to maintain the vessel in proper operating condition. If we lose a vessel, any replacement or newbuilding would not generate revenues during its construction acquisition period, and we may be unable to charter any replacement vessel on terms as favorable to us as those of the terminated charter.
Even if we successfully charter our vessels in the future, our charterers may go bankrupt or fail to perform their obligations under the charter agreements, they may delay payments or suspend payments altogether, they may terminate the charter agreements prior to the agreed-upon expiration date or they may attempt to renegotiate the terms of the charters. The permanent loss of a customer, time charter or vessel, or a decline in payments under our charters, could have a material adverse effect on our business, results of operations and financial condition and our ability to make cash distributions in the event we are unable to replace such customer, time charter or vessel. For further details, please read “Risk Factors” in our Annual Report.
Recent Accounting Pronouncements
The Company’s recent accounting pronouncements are included in the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report.
Critical Accounting Policies
Our financial statements have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates in the application of our accounting policies based on the best assumptions, judgments and opinions of management. Actual results may differ from these estimates under different assumptions or conditions.
Critical accounting policies are those that reflect significant judgments or uncertainties, and potentially result in materially different results under different assumptions and conditions. All significant accounting policies are as described in Note 2 – Summary of significant accounting policies to the notes to the consolidated financial statements included in the Company’s Annual Report and in Note 2 – Summary of significant accounting policies included in the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report.
17
Exhibit List
Exhibit No |
Description |
99.1* |
Loan Agreement, dated June 17, 2025, among Buff Shipping Corporation, Chernava Marine Corp., Solange Shipping Ltd., Opal Shipping Corporation, Emery Shipping Corporation, and Ducale Marine Inc. as borrowers, and Crédit Agricole Corporate and Investment Bank as mandated lead arranger, agent and security trustee.
|
99.2* |
Term Loan Facility Agreement, dated June 19, 2025, among Brandeis Shipping Corporation, Mandora Shipping Ltd, Rondine Management Corp., Peran Maritime Inc., Zoner Shiptrade S.A., Pandora Marine Inc., Pyrgi Shipping Corporation, Othonoi Shipping Corporation, and Ereikousa Shipping Corporation as borrowers, and BNP Paribas as mandated lead arranger, facility and security agent, bookrunner, and co- ordinator.
|
99.3* |
Reducing Revolving Credit Loan Facility, dated June 25, 2025, among Legato Shipholding Inc., Crayon Shipping Ltd, Inastros Maritime Corp., Jasmer Shipholding Ltd, Chilali Corp., Highbird Management Inc., Iris Shipping Corporation, Kymata Shipping Co., Aurora Shipping Enterprises Ltd., Sun Shipping Corporation, Kerkyra Shipping Corporation, Zakynthos Shipping Corporation, and Persephone Shipping Corporation as borrowers, and National Bank of Greece S.A. as lender.
|
*Filed herewith
18
INDEX
NAVIOS MARITIME PARTNERS L.P. |
|
Page |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AS AT JUNE 30, 2025 AND DECEMBER 31, 2024 |
|
F-2 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2025 AND 2024 |
|
F-3 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2025 AND 2024 |
|
F-4 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2025 AND 2024 |
|
F-5 |
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
|
F-6 |
F-1
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. Dollars except unit data)
|
|
Notes |
|
June 30, 2025 |
|
|
December 31, 2024 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
||
Current assets |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
3 |
|
$ |
|
|
$ |
|
||
Restricted cash |
|
3 |
|
|
|
|
|
|
||
Other investments |
|
3 |
|
|
|
|
|
|
||
Assets held for sale |
|
4 |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
|
|
|
|
|
|
||
Prepaid expenses and other current assets |
|
|
|
|
|
|
|
|
||
Amounts due from related parties |
|
12 |
|
|
|
|
|
|
||
Total current assets |
|
|
|
|
|
|
|
|
||
Vessels, net |
|
4 |
|
|
|
|
|
|
||
Deposits for vessel acquisitions |
|
11 |
|
|
|
|
|
|
||
Other long-term assets |
|
11, 14 |
|
|
|
|
|
|
||
Deferred drydock and special survey costs, net |
|
12 |
|
|
|
|
|
|
||
Intangible assets |
|
5 |
|
|
|
|
|
|
||
Operating lease assets |
|
14 |
|
|
|
|
|
|
||
Total non-current assets |
|
|
|
|
|
|
|
|
||
Total assets |
|
|
|
$ |
|
|
$ |
|
||
LIABILITIES AND PARTNERS’ CAPITAL |
|
|
|
|
|
|
|
|
||
Current liabilities |
|
|
|
|
|
|
|
|
||
Accounts payable |
|
|
|
$ |
|
|
$ |
|
||
Accrued expenses |
|
|
|
|
|
|
|
|
||
Deferred revenue |
|
|
|
|
|
|
|
|
||
Operating lease liabilities, current portion |
|
14 |
|
|
|
|
|
|
||
Amounts due to related parties |
|
12 |
|
|
|
|
|
|
||
Current portion of finance lease and financial liabilities, net |
|
6 |
|
|
|
|
|
|
||
Current portion of long-term debt, net |
|
6 |
|
|
|
|
|
|
||
Current liabilities associated with the vessel held for sale |
|
6 |
|
|
|
|
|
|
||
Fair value of derivatives, current |
|
8 |
|
|
|
|
|
|
||
Total current liabilities |
|
|
|
|
|
|
|
|
||
Operating lease liabilities, net |
|
14 |
|
|
|
|
|
|
||
Unfavorable lease terms |
|
5 |
|
|
|
|
|
|
||
Long-term finance lease and financial liabilities, net |
|
6 |
|
|
|
|
|
|
||
Long-term debt, net |
|
6 |
|
|
|
|
|
|
||
Deferred revenue |
|
|
|
|
|
|
|
|
||
Other long-term liabilities |
|
|
|
|
|
|
|
|
||
Fair value of derivatives, non-current |
|
8 |
|
|
|
|
|
|
||
Total non-current liabilities |
|
|
|
|
|
|
|
|
||
Total liabilities |
|
|
|
$ |
|
|
$ |
|
||
Commitments and contingencies |
|
11 |
|
|
— |
|
|
|
— |
|
Partners’ capital: |
|
|
|
|
|
|
|
|
||
Common Unitholders ( |
|
1, 9 |
|
|
|
|
|
|
||
General Partner ( |
|
1 |
|
|
|
|
|
|
||
Accumulated Other Comprehensive Loss |
|
8 |
|
|
( |
) |
|
|
|
|
Total partners’ capital |
|
|
|
|
|
|
|
|
||
Total liabilities and partners’ capital |
|
|
|
$ |
|
|
$ |
|
||
See unaudited notes to the condensed consolidated financial statements
F-2
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Expressed in thousands of U.S. Dollars except per unit data)
|
|
|
|
Three Month Period Ended June 30, 2025 |
|
|
Three Month Period Ended June 30, 2024 |
|
|
Six Month Period Ended June 30, 2025 |
|
|
Six Month Period Ended June 30, 2024 |
|
||||
|
|
Notes |
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
||||
Time charter and voyage revenues |
|
2, 14 |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Time charter and voyage expenses |
|
12, 14 |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Vessel operating expenses |
|
12 |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
General and administrative expenses |
|
12 |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Depreciation and amortization |
|
4, 5 |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Amortization of unfavorable lease terms |
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gain/ (loss) on sale of vessels, net |
|
4 |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Interest expense and finance cost, net |
|
7 |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other expense, net |
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Net income |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other comprehensive loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unrealized loss on cash flow hedges |
|
8 |
|
$ |
( |
) |
|
$ |
— |
|
|
$ |
( |
) |
|
$ |
— |
|
Total other comprehensive loss |
|
|
|
$ |
( |
) |
|
$ |
— |
|
|
$ |
( |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total comprehensive income |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
Three Month Period Ended June 30, 2025 |
|
|
Three Month Period Ended June 30, 2024 |
|
|
Six Month Period Ended June 30, 2025 |
|
|
Six Month Period Ended June 30, 2024 |
|
||||
Net income |
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
||||
Common Unitholders |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
General Partner |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
Three Month Period Ended June 30, 2025 |
|
|
Three Month Period Ended June 30, 2024 |
|
|
Six Month Period Ended June 30, 2025 |
|
|
Six Month Period Ended June 30, 2024 |
|
||||
Earnings per unit (see Note 13): |
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
||||
Earnings per common unit, basic |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Earnings per common unit, diluted |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
See unaudited notes to the condensed consolidated financial statements
F-3
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. Dollars)
|
|
|
|
Six Month Period Ended June 30, 2025 |
|
|
Six Month Period Ended June 30, 2024 |
|
||
|
|
Notes |
|
(unaudited) |
|
|
(unaudited) |
|
||
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
||
Net income |
|
|
|
$ |
|
|
$ |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||
Depreciation and amortization |
|
4, 5 |
|
|
|
|
|
|
||
Amortization of unfavorable lease terms |
|
5 |
|
|
( |
) |
|
|
( |
) |
Other non-cash adjustments |
|
|
|
|
( |
) |
|
|
( |
) |
Amortization of operating lease assets/ liabilities |
|
14 |
|
|
( |
) |
|
|
( |
) |
Amortization and write-off of deferred finance costs |
|
7 |
|
|
|
|
|
|
||
Loss/ (gain) on sale of vessels, net |
|
4 |
|
|
|
|
|
( |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
||
Decrease in accounts receivable |
|
|
|
|
|
|
|
|
||
Decrease in prepaid expenses and other current assets |
|
|
|
|
|
|
|
|
||
Decrease in amounts due from related parties (including current and non-current portion) |
|
12 |
|
|
|
|
|
|
||
Payments for drydock and special survey costs |
|
|
|
|
( |
) |
|
|
( |
) |
Increase/ (decrease) in accounts payable |
|
|
|
|
|
|
|
( |
) |
|
Increase/ (decrease) in accrued expenses |
|
|
|
|
|
|
|
( |
) |
|
Decrease in deferred revenue |
|
|
|
|
( |
) |
|
|
( |
) |
Increase/ (decrease) in amounts due to related parties |
|
12 |
|
|
|
|
|
( |
) |
|
Net cash provided by operating activities |
|
|
|
|
|
|
|
|
||
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
||
Net cash proceeds from sale of vessels |
|
4 |
|
|
|
|
|
|
||
Other investments |
|
3 |
|
|
|
|
|
|
||
Deposits for acquisition/ option to acquire vessel |
|
11 |
|
|
( |
) |
|
|
( |
) |
Acquisition of/ additions to vessels |
|
4, 12 |
|
|
( |
) |
|
|
( |
) |
Net cash used in investing activities |
|
|
|
|
( |
) |
|
|
( |
) |
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
||
Cash distributions paid |
|
13 |
|
|
( |
) |
|
|
( |
) |
Repayment of long-term debt, finance lease and financial liabilities |
|
6 |
|
|
( |
) |
|
|
( |
) |
Payments of deferred finance costs |
|
6 |
|
|
( |
) |
|
|
( |
) |
Proceeds from long-term debt, finance lease and financial liabilities |
|
6 |
|
|
|
|
|
|
||
Acquisition of treasury units |
|
9 |
|
|
( |
) |
|
|
( |
) |
Net cash provided by financing activities |
|
|
|
|
|
|
|
|
||
Increase in cash, cash equivalents and restricted cash |
|
|
|
|
|
|
|
|
||
Cash, cash equivalents and restricted cash, beginning of period |
|
|
|
|
|
|
|
|
||
Cash, cash equivalents and restricted cash, end of period |
|
|
|
$ |
|
|
$ |
|
||
|
|
Six Month Period Ended June 30, 2025 |
|
|
Six Month Period Ended June 30, 2024 |
|
||
|
|
(unaudited) |
|
|
(unaudited) |
|
||
Supplemental disclosures of cash flow information |
|
|
|
|
|
|
||
Cash interest paid |
|
$ |
|
|
$ |
|
||
Non-cash financing activities |
|
|
|
|
|
|
||
Financial and finance lease liabilities |
|
$ |
|
|
$ |
|
||
Non-cash investing activities |
|
|
|
|
|
|
||
Deposits for acquisition/ option to acquire vessel |
|
$ |
|
|
$ |
|
||
Acquisition of/ additions to vessels |
|
$ |
( |
) |
|
$ |
( |
) |
See unaudited notes to the condensed consolidated financial statements
F-4
NAVIOS MARITIME PARTNERS L.P.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL
(Expressed in thousands of U.S. Dollars except unit and per unit data)
|
|
Limited Partners |
|
|
Accumulated |
|
|
Total |
|
|||||||||||||||
|
|
General Partner |
|
|
Common Unitholders |
|
|
Other Comprehensive |
|
|
Partners’ |
|
||||||||||||
|
|
Units |
|
|
Amount |
|
|
Units |
|
|
Amount |
|
|
Loss |
|
|
Capital |
|
||||||
Balance December 31, 2024 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|||||
Cash distribution paid ($ |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Acquisition of treasury units (see Note 9) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Other comprehensive loss (see Note 8) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Net income |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|||
Balance March 31, 2025 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||||
Cash distribution paid ($ |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Acquisition of treasury units (see Note 9) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Other comprehensive loss (see Note 8) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Net income |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|||
Balance June 30, 2025 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|||||
|
|
Limited Partners |
|
|
Total |
|
||||||||||||||
|
|
General Partner |
|
|
Common Unitholders |
|
|
Partners’ |
|
|||||||||||
|
|
Units |
|
|
Amount |
|
|
Units |
|
|
Amount |
|
|
Capital |
|
|||||
Balance December 31, 2023 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|||||
Cash distribution paid ($ |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Net income |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|||
Balance March 31, 2024 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|||||
Cash distribution paid ($ |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Acquisition of treasury units (see Note 9) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Net income |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|||
Balance June 30, 2024 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|||||
See unaudited notes to the condensed consolidated financial statements
F-5
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
NOTE 1 – DESCRIPTION OF BUSINESS
Navios Maritime Partners L.P. (“Navios Partners” or the “Company”), is an international owner and operator of dry cargo and tanker vessels, formed on
Navios Partners is engaged in the seaborne transportation services of a wide range of liquid and dry cargo commodities including crude oil, refined petroleum, chemicals, iron ore, coal, grain, fertilizer and also containers, chartering its vessels under short-term, medium-term and longer-term charters. The operations of Navios Partners are managed by Navios Shipmanagement Inc. and its affiliates (the “Manager”), which are entities affiliated with the Company’s Chairwoman and Chief Executive Officer (see Note 12 – Transactions with related parties and affiliates).
As of June 30, 2025, there were outstanding
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Based on internal forecasts and projections that take into account reasonably possible changes in Company’s trading performance, management believes that the Company has adequate financial resources, including cash from sale of vessels (see Note 4 – Vessels, net and Note 15 – Subsequent events) to continue in operation and meet its financial commitments, including but not limited to capital expenditures and debt service obligations, for a period of at least 12 months from the date of issuance of these condensed consolidated financial statements. Accordingly, the Company continues to adopt the going concern basis in preparing its financial statements.
Navios Partners also consolidates entities that are determined to be variable interest entities (“VIE”) as defined in the accounting guidance, if it determines that it is the primary beneficiary. A VIE is defined as a legal entity where either (i)
F-6
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
equity interest holders as a group lack the characteristics of a controlling financial interest, including decision making ability and an interest in the entity’s residual risks and rewards, (ii) the equity holders have not provided sufficient equity investment to permit the entity to finance its activities without additional subordinated financial support, or (iii) the voting rights of some investors are not proportional to their obligations to absorb the expected losses of the entity, their rights to receive the expected residual returns of the entity, or both and substantially all of the entity’s activities either involve or are conducted on behalf of an investor that has disproportionately few voting rights.
Subsidiaries: Subsidiaries are those entities in which Navios Partners has an interest of more than one half of the voting rights.
A discussion of the Company’s significant accounting policies can be found in Note 2 – Summary of significant accounting policies to the Company’s consolidated financial statements included in the Annual Report. There have been no material changes to these policies in the six month period ended June 30, 2025, apart from those discussed below:
Revenue from time chartering and bareboat chartering
Revenues from time chartering and bareboat chartering of vessels are accounted for as operating leases and are thus recognized on a straight line basis as the average lease revenue over the rental periods of such charter agreements, as service is performed. A time charter involves placing a vessel at the charterers’ disposal for a period of time during which the charterer uses the vessel in return for the payment of a specified daily hire rate. Short period charters for less than three months are referred to as spot-charters. Charters extending three months to a year are generally referred to as medium-term charters. All other charters are considered long-term. The Company has determined to recognize lease revenue as a combined single lease component for all time charters (operating leases) as the related lease component and non-lease components will have the same timing and pattern of the revenue recognition of the combined single lease component. The performance obligations in a time charter contract are satisfied over term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to the Company. Under time charters, operating costs such as for crews, maintenance and insurance are typically paid by the owner of the vessel. Revenue from time chartering and bareboat chartering of vessels amounted to $
Revenue from voyage charters
Under a voyage charter, a vessel is provided for the transportation of specific goods between specific ports in return for payment of an agreed upon freight per ton of cargo. In accordance with ASC 606, the Company recognizes revenue ratably from port of loading to when the charterer’s cargo is discharged as well as defer costs that meet the definition of “costs to fulfill a contract” and relate directly to the contract. Revenue from voyage contracts amounted to $
Revenue from pooling arrangements
For vessels operating in pooling arrangements, the Company earns a portion of total revenues generated by the pool, net of expenses incurred by the pool. The amount allocated to each pool participant vessel, including the Company’s vessels, is determined in accordance with an agreed-upon formula, which is determined by points awarded to each vessel in the pool based on the vessel’s age, design and other performance characteristics. Revenue under pooling arrangements is accounted for as variable rate operating leases under the scope of ASC 842 and is recognized for the applicable period when collectability is reasonably assured. The allocation of such net revenue may be subject to future adjustments by the pool however, such changes are not expected to be material. The Company recognizes net pool revenue on a monthly and quarterly basis, when the vessel has participated in a pool during the period and the amount of pool revenue can be estimated reliably based on the pool report. Revenue from vessels operating in pooling arrangements amounted to $
Revenues are recorded net of address commissions. Address commissions represent a discount provided directly to the charterers based on a fixed percentage of the agreed upon charter or freight rate. Since address commissions represent a discount (sales incentive) on services rendered by the Company and no identifiable benefit is received in exchange for the consideration provided to the charterer, these commissions are presented as a reduction of revenue.
F-7
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
At the inception of a derivative contract, the Company may designate the derivative as an accounting hedge of the variability in cash flows associated with a forecasted transaction (“Cash Flow Hedge”). For a derivative to qualify for Cash Flow Hedge accounting, the hedging relationship must be formally documented at inception and must be expected to be highly effective in offsetting changes in the cash flows of the hedged item. This effectiveness is assessed both at hedge inception and on an ongoing basis. Changes in the fair value of a derivative designated and qualified as an effective Cash Flow Hedge are recognized in other comprehensive income/ (loss) and reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings. Any ineffective portion of a designated Cash Flow Hedge is recognized immediately in earnings. Changes in the fair value of derivatives that are not designated as accounting hedges under ASC 815 are also recognized in earnings in the period in which they occur.
Hedge accounting is discontinued prospectively when the derivative instrument expires, is sold, terminated, or exercised; when the hedging relationship no longer qualifies for hedge accounting under ASC 815; or when the Company elects to remove the hedge designation. Upon discontinuation, the cumulative gain or loss associated with the hedge that remains in accumulated other comprehensive income/ (loss) continues to be deferred and is reclassified into earnings in the same period or periods during which the forecasted transaction affects earnings. However, if the forecasted transaction is no longer probable of occurring, the amount previously recorded in accumulated other comprehensive income/ (loss) is immediately reclassified into earnings.
Recent Accounting Pronouncements:
These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in Navios Partners’ Annual Report.
NOTE 3 – CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AND OTHER INVESTMENTS
|
|
June 30, 2025 |
|
|
December 31, 2024 |
|
||
Cash and cash equivalents |
|
$ |
|
|
$ |
|
||
Restricted cash |
|
|
|
|
|
|
||
Total cash and cash equivalents and restricted cash |
|
$ |
|
|
$ |
|
||
Restricted cash relates to amounts held in retention accounts in order to service debt and interest payments, as required by certain of the Company’s credit facilities and financial liabilities.
Cash deposits and cash equivalents in excess of amounts covered by government-provided insurance are exposed to loss in the event of non-performance by financial institutions. Navios Partners does maintain cash deposits and cash equivalents in excess of government-provided insurance limits. Navios Partners also minimizes exposure to credit risk by dealing with a diversified group of major financial institutions.
Other investments consist of time deposits with original maturities of greater than three months and less than 12 months. As of June 30, 2025 and December 31, 2024, other investments amounted to $
F-8
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
NOTE 4 – VESSELS, NET
Total Vessels |
|
Cost |
|
|
Accumulated |
|
|
Net |
|
|||
Balance December 31, 2024 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
Additions/ (Depreciation) |
|
|
|
|
|
( |
) |
|
|
|
||
Disposals/ (Impairment) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Transfer to assets held for sale |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Balance June 30, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
The above balances as of June 30, 2025 are analyzed in the following tables:
Owned Vessels |
|
Cost |
|
|
Accumulated |
|
|
Net |
|
|||
Balance December 31, 2024 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
Additions/ (Depreciation) |
|
|
|
|
|
( |
) |
|
|
|
||
Disposals/ (Impairment) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
Transfer to assets held for sale |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Balance June 30, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
Right-of-use assets under finance lease |
|
Cost |
|
|
Accumulated |
|
|
Net |
|
|||
Balance December 31, 2024 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
Depreciation |
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Balance June 30, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
Right-of-use assets under finance leases are calculated at an amount equal to the corresponding finance liability, increased with the allocated excess value, the initial direct costs and adjusted for the carrying amount of the straight-line effect of finance liability as well as the favorable and unfavorable lease terms derived from charter-in agreements. During the six month period ended June 30, 2024, following the declarations of the Company’s option to extend the charter period for one year for one Kamsarmax vessel and the option to acquire four Kamsarmax vessels (one of which was delivered into Navios Partners’ fleet in June 2024) and one Ultra-Handymax vessel, the corresponding right-of-use asset under finance lease was increased by the aggregate amount of $
During the six month periods ended June 30, 2025 and 2024, the Company capitalized certain fees and costs related to vessels’ regulatory requirements, including ballast water treatment system installation, exhaust gas cleaning system installation and other improvements, that amounted to $
Acquisition of Vessels
2025
During the six month period ended June 30, 2025, Navios Partners took delivery of
2024
During the six month period ended June 30, 2024, Navios Partners took delivery of
During the six month period ended June 30, 2024, Navios Partners paid an amount of $
F-9
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
In June 2024, Navios Partners agreed to acquire from an unrelated third party the Navios Venus, a
Sale of Vessels
2025
During the six month period ended June 30, 2025, Navios Partners sold three vessels to unrelated third parties for an aggregate net sales price of $
2024
During the six month period ended June 30, 2024, Navios Partners sold four vessels to unrelated third parties for an aggregate net sales price of $
Vessels “agreed to be sold”
2025
During the six month period ended June 30, 2025, Navios Partners agreed to sell a
In addition, as of June 30, 2025, the Company had initiated a process to sell a
Vessels impairment loss
2025
As at June 30, 2025, Navios Partners assessed whether impairment indicators for any of its long-lived assets existed and concluded that no such indicators were present. During the second quarter of 2025, an impairment loss of $
F-10
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
2024
As of June 30, 2024, Navios Partners assessed whether impairment indicators for any of its long-lived assets existed and concluded that such indicators were present for
NOTE 5 – INTANGIBLE ASSETS AND LIABILITIES
Intangible assets as of June 30, 2025 and December 31, 2024 consisted of the following:
|
|
Cost |
|
|
Accumulated |
|
|
Net Book Value |
|
|||
Favorable lease terms December 31, 2024 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
Amortization |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
Favorable lease terms June 30, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
Amortization expense of favorable lease terms for each of the periods ended June 30, 2025 and 2024 is presented in the following table:
|
|
Three Month Period Ended June 30, 2025 |
|
|
Three Month Period Ended June 30, 2024 |
|
|
Six Month Period Ended June 30, 2025 |
|
|
Six Month Period Ended June 30, 2024 |
|
||||
Favorable lease terms |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Total |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
The aggregate amortization of the intangible assets for the next five 12-month periods ending June 30 is estimated to be as follows:
Period |
|
Amount |
|
|
2026 |
|
$ |
|
|
2027 |
|
|
|
|
2028 |
|
|
|
|
2029 |
|
|
|
|
2030 |
|
|
|
|
2031 and thereafter |
|
|
|
|
Total |
|
$ |
|
|
Intangible assets subject to amortization are amortized using
Intangible liabilities as of June 30, 2025 and December 31, 2024 consisted of the following:
|
|
Cost |
|
|
Accumulated |
|
|
Net Book Value |
|
|||
Unfavorable lease terms December 31, 2024 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
Amortization |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
Unfavorable lease terms June 30, 2025 |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
F-11
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
Amortization income of unfavorable lease terms for each of the periods ended June 30, 2025 and 2024 is presented in the following table:
|
|
Three Month Period Ended June 30, 2025 |
|
|
Three Month Period Ended June 30, 2024 |
|
|
Six Month Period Ended June 30, 2025 |
|
|
Six Month Period Ended June 30, 2024 |
|
||||
Unfavorable lease terms |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Total |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
The aggregate amortization of the intangible liabilities for the next five 12-month periods ending June 30 is estimated to be as follows:
Period |
|
Amount |
|
|
2026 |
|
$ |
|
|
2027 |
|
|
|
|
2028 |
|
|
|
|
2029 |
|
|
|
|
2030 |
|
|
|
|
2031 and thereafter |
|
|
|
|
Total |
|
$ |
|
|
Intangible liabilities subject to amortization are amortized using
NOTE 6 – BORROWINGS
Borrowings as of June 30, 2025 and December 31, 2024 consisted of the following:
|
|
June 30, 2025 |
|
|
December 31, 2024 |
|
||
Credit facilities |
|
$ |
|
|
$ |
|
||
Financial liabilities |
|
|
|
|
|
|
||
Finance lease liabilities |
|
|
|
|
|
|
||
Total borrowings |
|
$ |
|
|
$ |
|
||
Less: Current portion of long-term borrowings, net |
|
|
( |
) |
|
|
( |
) |
Less: Deferred finance costs, net |
|
|
( |
) |
|
|
( |
) |
Long-term borrowings, net |
|
$ |
|
|
$ |
|
||
As of June 30, 2025, the total borrowings, net of deferred finance costs were $
Credit Facilities
NATIONAL BANK OF GREECE S.A.: On
On
F-12
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
2025-built Aframax/ LR2 of
BNP PARIBAS: On
On
On
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK: On
On
KFW IPEX-BANK GMBH: On
On
HELLENIC BANK PUBLIC COMPANY LIMITED: On
F-13
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
under the caption “Current liabilities associated with the vessel held for sale” in the condensed Consolidated Balance Sheets. The facility matures in the
On
Financial Liabilities
In
In
In
In
F-14
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
Finance Lease Liabilities
For the six month periods ended June 30, 2025 and 2024, payments related to the finance lease liabilities amounted to $
Covenants and Other Terms of Credit Facilities and Financial Liabilities
The credit facilities and certain financial liabilities contain a number of restrictive covenants that prohibit or limit Navios Partners from, among other things: incurring or guaranteeing indebtedness; entering into affiliate transactions; charging, pledging or encumbering the vessels; changing the flag, class, management or ownership of Navios Partners’ vessels; changing the commercial and technical management of Navios Partners’ vessels; selling or changing the beneficial ownership or control of Navios Partners’ vessels; not maintaining Angeliki Frangou’s or her affiliates’ ownership in Navios Partners of at least 5.0%; and subordinating the obligations under the credit facilities to any general and administrative costs related to the vessels and the payables under the Master Management Agreement (as defined herein).
It is an event of default under the credit facilities and certain financial liabilities if such covenants are not complied with in accordance with the terms and subject to the prepayments or cure provisions of the facilities.
The annualized weighted average interest rates of the Company’s total borrowings for each of the three and six month periods ended June 30, 2025, were
The maturity table below reflects the principal payments for the next five 12-month periods ending June 30 of all borrowings of Navios Partners outstanding as of June 30, 2025, based on the repayment schedules of the respective credit facilities (including current liabilities associated with the vessel held for sale), financial liabilities and finance lease liabilities.
Period |
|
Amount |
|
|
2026 |
|
$ |
|
|
2027 |
|
|
|
|
2028 |
|
|
|
|
2029 |
|
|
|
|
2030 |
|
|
|
|
2031 and thereafter |
|
|
|
|
Total |
|
$ |
|
|
F-15
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
NOTE 7 – INTEREST EXPENSE AND FINANCE COST, NET
Interest expense and finance cost, net for the three and six month periods ended June 30, 2025 and 2024 consisted of the following:
|
|
Three Month Period Ended June 30, 2025 |
|
|
Three Month Period Ended June 30, 2024 |
|
|
Six Month Period Ended June 30, 2025 |
|
|
Six Month Period Ended June 30, 2024 |
|
||||
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
||||
Interest expense incurred on credit facilities and financial liabilities |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Interest expense incurred on finance lease liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense capitalized related to deposits for vessel acquisitions |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Amortization and write-off of deferred finance costs |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Discount effect of long-term assets and other finance costs |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Total interest expense and finance cost, net |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Interest expense incurred on deposits for vessel acquisitions was initially capitalized under the caption “Deposits for vessel acquisitions” in the condensed Consolidated Balance Sheets.
NOTE 8 – FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying amounts of many of Navios Partners’ financial instruments, including accounts receivable and accounts payable approximate their fair value due primarily to the short-term maturity of the related instruments.
Fair value of financial instruments
The following methods and assumptions were used to estimate the fair value of each class of financial instrument:
Cash and cash equivalents: The carrying amounts reported in the condensed Consolidated Balance Sheets for interest bearing deposits approximate their fair value because of the short maturity of these deposits.
Restricted cash: The carrying amounts reported in the condensed Consolidated Balance Sheets for interest bearing deposits approximate their fair value because of the short maturity of these deposits.
Other investments: The carrying amounts reported in the condensed Consolidated Balance Sheets for interest bearing deposits approximate their fair value because of the short maturity of these deposits.
Amounts due from related parties, short-term: The carrying amount of due from related parties, short-term reported in the condensed Consolidated Balance Sheets approximates its fair value due to the short-term nature of these receivables.
Amounts due to related parties, short-term: The carrying amount of due to related parties, short-term reported in the condensed Consolidated Balance Sheets approximates its fair value due to the short-term nature of these payables.
Credit facilities and financial liabilities, including current portion, net (including current liabilities associated with the vessel held for sale): The book value has been adjusted to reflect the net presentation of deferred finance costs. The outstanding balance of the floating rate credit facilities, financial liabilities and current liabilities associated with the vessel held for sale continues to approximate its fair value, excluding the effect of any deferred finance costs.
Fair value of derivatives, including current portion: The carrying amounts reported in the condensed Consolidated Balance Sheets for interest rate swap agreements represent their fair value.
The estimated fair values of the Navios Partners’ financial instruments are as follows:
F-16
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
|
|
June 30, 2025 |
|
|
December 31, 2024 |
|
||||||||||
|
|
Book |
|
|
Fair |
|
|
Book |
|
|
Fair |
|
||||
Cash and cash equivalents |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Restricted cash |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Other investments |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Amounts due from related parties, short-term |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Amounts due to related parties, short-term |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||
Credit facilities and financial liabilities, including current portion, net (including current liabilities associated with the vessel held for sale) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
Fair value of derivatives, including current portion |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||
Fair Value Measurements
The estimated fair value of the Company’s financial instruments that are not measured at fair value on a recurring basis, categorized based upon the fair value hierarchy, are as follows:
Level I: Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Valuation of these items does not entail a significant amount of judgment.
Level II: Inputs other than quoted prices included in Level I that are observable for the asset or liability through corroboration with market data at the measurement date.
Level III: Inputs that are unobservable. The Company did not use any Level III inputs as of June 30, 2025 and December 31, 2024.
|
|
Fair Value Measurements as at June 30, 2025 |
|
|||||||||||||
|
|
Total |
|
|
Level I |
|
|
Level II |
|
|
Level III |
|
||||
Cash and cash equivalents |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Restricted cash |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Other investments |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Amounts due from related parties, short-term |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Amounts due to related parties, short-term |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
Credit facilities and financial liabilities, including current portion, net (including current liabilities associated with the vessel held for sale) (1) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Fair Value Measurements as at December 31, 2024 |
|
|||||||||||||
|
|
Total |
|
|
Level I |
|
|
Level II |
|
|
Level III |
|
||||
Cash and cash equivalents |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Restricted cash |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Other investments |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Amounts due from related parties, short-term |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Credit facilities and financial liabilities, including current portion, net (1) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
As of June 30, 2025, the estimated fair value of the Company’s vessel measured at fair value on a non-recurring basis, is based on a third party valuation report and is categorized based upon the fair value hierarchy as follows:
F-17
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
|
|
Fair Value Measurements as at June 30, 2025 |
|
|||||||||||||
|
|
Total |
|
|
Level I |
|
|
Level II |
|
|
Level III |
|
||||
Vessel held for sale |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
As of December 31, 2024, the estimated fair value of the Company’s vessels measured at fair value on a non-recurring basis, was based on the third party valuation reports and was categorized based upon the fair value hierarchy as follows:
|
|
Fair Value Measurements as at December 31, 2024 |
|
|||||||||||||
|
|
Total |
|
|
Level I |
|
|
Level II |
|
|
Level III |
|
||||
Vessels, net |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Derivative Instruments
In February 2025, Navios Partners entered into interest rate swaps with a commercial bank for a notional amount of $
The Swap Transaction is designated as a Cash Flow Hedge to address the Company’s exposure to variability in expected future cash flows arising from interest rate fluctuations. In accordance with ASC 815, the Company completed the required formal hedge documentation at the inception of the hedging relationship. As a result, the Swap Transaction qualifies for hedge accounting. Changes in the fair value of the Swap Transaction that are determined to be effective are presented under the caption “Accumulated Other Comprehensive Loss” in the condensed Consolidated Balance Sheets and condensed Consolidated Statements of Changes in Partners’ Capital.
As of June 30, 2025, the fair value of the Swap Transaction amounted to $
The following table presents the terms of the Swap Transaction and the respective fair value amount as of June 30, 2025:
Derivative liabilities:
Effective date |
|
Termination date |
|
Notional amount |
|
|
Fixed rate |
|
|
Fair value |
|
|||
|
|
$ |
|
|
|
% |
|
$ |
( |
) |
||||
Total fair value of derivatives, including current portion |
$ |
( |
) |
|||||||||||
|
|
Amount recognized in |
|
|||||||||||||
|
|
Three Month Period Ended June 30, 2025 |
|
|
Three Month Period Ended June 30, 2024 |
|
|
Six Month Period Ended June 30, 2025 |
|
|
Six Month Period Ended June 30, 2024 |
|
||||
Unrealized loss on cash flow hedges |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
Total other comprehensive loss |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
As of June 30, 2025, the Company did not hold any interest rate swaps that do not qualify for hedge accounting.
NOTE 9 – REPURCHASES AND ISSUANCE OF UNITS
In July 2022, the Board of Directors of Navios Partners authorized a common unit repurchase program for up to $
F-18
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
June 30, 2025, the Company had repurchased
NOTE 10 – INCOME TAXES
The Republic of the Marshall Islands does not impose a tax on international shipping income. Under the laws of the countries of the vessel-owning subsidiaries’ incorporation and/or redomiciliation and/or vessels’ registration, the vessel-owning subsidiaries are subject to registration and tonnage taxes, which have been included in vessel expenses in the accompanying condensed Consolidated Statements of Comprehensive Income.
In accordance with the currently applicable Greek law, foreign flagged vessels that are managed by Greek or foreign ship management companies having established an office in Greece on the basis of the applicable licensing regime are subject to tax liability towards the Greek state, which is calculated on the basis of the relevant vessel’s tonnage. A tax credit is recognized for tonnage tax (or similar tax) paid abroad, up to the amount of the tax due in Greece.
The owner, the manager and the bareboat charterer or the financial lessee (where applicable) are liable to pay the tax due to the Greek state. The payment of said tax exhausts the tax liability of the foreign ship owning company, the bareboat charterer, the financial lessee (as applicable) and the relevant manager against any tax, duty, charge or contribution payable on income from the exploitation of the foreign flagged vessel outside Greece.
The Company has elected to be treated and is currently treated as a corporation for U.S. federal income tax purposes. As such, the Company is not subject to section 1446 as that section only applies to entities that for U.S. federal income tax purposes are characterized as partnerships.
Pursuant to Section 883 of the Internal Revenue Code of the United States, U.S. source income from the international operation of ships is generally exempt from U.S. income tax if the company operating the ships meets certain incorporation and ownership requirements. Among other things, in order to qualify for this exemption, the company operating the ships must be incorporated in a country, which grants an equivalent exemption from income taxes to U.S. corporations. All the vessel-owning subsidiaries satisfy these initial criteria.
In addition, these companies must meet an ownership test. The management of Navios Partners believes that this ownership test was satisfied prior to the IPO by virtue of a special rule applicable to situations where the ship operating companies are beneficially owned by a publicly traded company. Although not free from doubt, management also believes that the ownership test will be satisfied based on the trading volume and ownership of Navios Partners’ units, but no assurance can be given that this will remain so in the future.
NOTE 11 – COMMITMENTS AND CONTINGENCIES
Navios Partners is involved in various disputes and arbitration proceedings arising in the ordinary course of business. Provisions have been recognized in the financial statements for all such proceedings where Navios Partners believes that a liability may be probable, and for which the amounts are reasonably estimable, based upon facts known at the date the financial statements were prepared. Management believes the ultimate disposition of these matters will be immaterial individually and in the aggregate to Navios Partners’ financial position, results of operations or liquidity.
In December 2022, Navios Partners agreed to acquire two newbuilding Japanese MR2 Product Tanker vessels, from an unrelated third party, under bareboat contracts. Each vessel is being bareboat-in for
During the second quarter of 2023, Navios Partners agreed to acquire two newbuilding Japanese MR2 Product Tanker vessels, from an unrelated third party, under bareboat contracts. Each vessel is being bareboat-in for
F-19
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
fourth year. The vessels are expected to be delivered into Navios Partners’ fleet during the
In August 2023, Navios Partners agreed to acquire two newbuilding Japanese MR2 Product Tanker vessels, from an unrelated third party, under bareboat contracts. Each vessel is being bareboat-in for
During the third quarter of 2023, Navios Partners agreed to acquire
During the first quarter of 2024, Navios Partners agreed to acquire
During the second quarter of 2024, Navios Partners agreed to acquire
During the second quarter of 2024, Navios Partners agreed to acquire
During the third quarter of 2024, Navios Partners agreed to acquire
F-20
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
During the second quarter of 2025, Navios Partners agreed to acquire
As of June 30, 2025, an amount of $
The Company’s future minimum lease commitments under the Company’s bareboat-in contracts for undelivered vessels for the next five 12-month periods ending June 30, are as follows:
Period |
|
Amount |
|
|
2026 |
|
$ |
|
|
2027 |
|
|
|
|
2028 |
|
|
|
|
2029 |
|
|
|
|
2030 |
|
|
|
|
2031 and thereafter |
|
|
|
|
Total |
|
$ |
|
|
NOTE 12 – TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES
Vessel operating expenses: Since the closing of Navios Partners’ IPO in 2007, the Company entered into management agreements, as amended from time to time, with the Manager, pursuant to which the Manager had agreed to provide certain commercial and technical management services to the Company at fixed rates for these services until January 1, 2025. Costs associated with special surveys, drydockings and certain extraordinary items were reimbursed at cost at occurrence.
In August 2024, Navios Partners renewed its management agreements with the Manager commencing January 1, 2025, for a term of ten years, renewing annually (the “Master Management Agreement” and together with the management agreements the “Management Agreements”). At the same time, Navios Partners renewed for a term of ten years its Administrative Services Agreement (as defined herein and together with the Master Management Agreement the “Agreements”). The conflicts committee of the Board of Directors, consisting of independent directors, negotiated and approved the Agreements with the advice of independent legal and financial advisors.
The Master Management Agreement provides for technical and commercial management and related specialized services based on fee structure, including: (i) a technical management fee of $
For a detailed description of the Company’s fixed daily fees, as well as fees associated with specialized transhipper vessels in accordance with the Company’s management agreements, reflected in the comparative figures, refer to Note 17 – Transactions with related parties and affiliates, to the Company’s consolidated financial statements included in the Annual Report.
During the three and six month periods ended June 30, 2025, certain fees and costs related to vessels’ regulatory requirements, including ballast water treatment system installation, exhaust gas cleaning system installation and other improvements under the Company’s Management Agreements, amounted to $
F-21
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
During the three and six month periods ended June 30, 2024, certain fees and costs related to vessels’ regulatory requirements, including ballast water treatment system installation, exhaust gas cleaning system installation and other improvements under the Company’s Management Agreements, amounted to $
During the three and six month periods ended June 30, 2025, fixed management fees amounted to $
Total fixed daily fees for the three and six month periods ended June 30, 2024, amounted to $
During the three and six month periods ended June 30, 2025, commercial management fee on revenues amounted to $
During the three and six month periods ended June 30, 2025, fee on sales amounted to $
During the three and six month periods ended June 30, 2025, fee on purchases amounted to $
During the three and six month periods ended June 30, 2025, fees for supervision and delivery of newbuilding vessels initially presented under the captions “Deposits for vessel acquisitions” and “Other long-term assets” in the condensed Consolidated Balance Sheets amounted to $
During the three and six month periods ended June 30, 2024, additional remuneration in accordance with the Company’s management agreements amounted to $
During the three and six month periods ended June 30, 2024, certain extraordinary crewing fees and costs amounted to $
General and administrative expenses: The Manager also provides administrative services to Navios Partners, which include bookkeeping, audit and accounting services, legal and insurance services, administrative and clerical services, banking and financial services, advisory services, client and investor relations and other. The Manager is reimbursed for reasonable allocable general and administrative costs and expenses incurred in connection with the provision of these services. In August 2019, Navios Partners extended the duration of its agreement with the Manager until January 1, 2025. The agreement also provided for payment of a termination fee, equal to the fees charged for the full calendar year preceding the termination date in the event the agreement is terminated on or before its term.
In August 2024, Navios Partners renewed its administrative services agreement commencing January 1, 2025, for a term of
Total general and administrative expenses charged by the Manager for the three and six month periods ended June 30, 2025 amounted to $
F-22
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
During the three and six month periods ended June 30, 2024, allocable general and administrative costs initially presented under the captions “Deposits for vessel acquisitions” and “Other long-term assets” in the condensed Consolidated Balance Sheets amounted to $
Balance due (to)/ from related parties: Balance due (to)/ from Manager, short-term as of June 30, 2025 and December 31, 2024 amounted to $(
In October 2023, Navios Partners entered into a time charter agreement with a subsidiary of its affiliate NSAL for the Navios Vega, a 2009-built transhipper vessel. The vessel was delivered during the
Others:
As of June 30, 2025, the Company had initiated a process to sell the Navios Vega to NSAL. The Company entered into a definitive agreement with NSAL in July 2025. The sale price of the vessel amounted to $
General partner: Olympos Maritime Ltd., an entity affiliated to the Company’s Chairwoman and Chief Executive Officer, Angeliki Frangou, is the holder of Navios Partners’ general partner interest.
NOTE 13 – CASH DISTRIBUTIONS AND EARNINGS PER UNIT
The amount of distributions paid by Navios Partners and the decision to make any distribution is determined by the Company’s 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. There is no guarantee that the Company will pay the quarterly distribution on the common units in any quarter. The Company is prohibited from making any distributions to unitholders if it would cause an event of default, or an event of default exists, under its existing credit facilities.
There are incentive distribution rights held by Navios GP L.L.C., which are analyzed as follows:
F-23
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
|
|
|
|
Marginal Percentage Interest in Distributions |
|
|||||||||
|
|
Total Quarterly Distribution Target Amount |
|
Common Unitholders |
|
|
Incentive Distribution Right Holder |
|
|
General Partner |
|
|||
Minimum Quarterly Distribution |
|
up to $ |
|
|
% |
|
|
— |
|
|
|
% |
||
First Target Distribution |
|
up to $ |
|
|
% |
|
|
— |
|
|
|
% |
||
Second Target Distribution |
|
above $ |
|
|
% |
|
|
% |
|
|
% |
|||
Third Target Distribution |
|
above $ |
|
|
% |
|
|
% |
|
|
% |
|||
Thereafter |
|
above $ |
|
|
% |
|
|
% |
|
|
% |
|||
The first
The authorized quarterly cash distributions for all quarters during the six month periods ended June 30, 2025 and 2024, are
presented below:
Date |
Authorized |
Date of record |
Payment of |
|
$/ Unit |
|
|
Amount of |
|
||
February 2024 |
|
$ |
|
|
$ |
|
|||||
April 2024 |
|
$ |
|
|
$ |
|
|||||
January 2025 |
|
$ |
|
|
$ |
|
|||||
April 2025 |
|
$ |
|
|
$ |
|
|||||
July 2025 |
|
$ |
|
|
$ |
|
|||||
Navios Partners calculates earnings/ (losses) per unit by allocating reported net income/ (loss) for each period to each class of units based on the distribution waterfall for available cash specified in Navios Partners’ partnership agreement, net of the unallocated earnings/ (losses). Basic earnings/ (losses) per common unit is determined by dividing net income by the weighted average number of common units outstanding during the period. Diluted earnings per unit is calculated in the same manner as basic earnings per unit, except that the weighted average number of outstanding units increased to include the dilutive effect of outstanding unit options or phantom units. Net earnings/ (loss) per unit undistributed is determined by taking the distributions in excess of net income/ (loss) and allocating between common units and general partnership units on a
The calculations of the basic and diluted earnings per unit are presented below.
|
|
Three Month Period Ended June 30, 2025 |
|
|
Three Month Period Ended June 30, 2024 |
|
|
Six Month Period Ended June 30, 2025 |
|
|
Six Month Period Ended June 30, 2024 |
|
||||
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
||||
Net income |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common unitholders |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Weighted average units outstanding basic |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common unitholders |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per unit basic: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common unitholders |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Weighted average units outstanding diluted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common unitholders |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per unit diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common unitholders |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Earnings per unit distributed basic: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common unitholders |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Earnings per unit distributed diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Common unitholders |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
F-24
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
NOTE 14 – LEASES
Time charter out contracts and pooling arrangements
The Company’s contract revenues from time chartering, bareboat chartering and pooling arrangements are governed by ASC 842.
Operating Leases
A discussion of the Company’s operating leases can be found in Note 20 – Leases to the Company’s consolidated financial statements included in the Annual Report.
Based on management estimates and market conditions, the lease term of the leases is being assessed at each balance sheet date. At lease commencement, the Company determines a discount rate to calculate the present value of the lease payments so that it can determine lease classification and measure the lease liability. In determining the discount rate to be used at lease commencement, the Company used its incremental borrowing rate as there was no implicit rate included in charter-in contracts that can be readily determinable. The incremental borrowing rate is the rate that reflects the interest a lessee would have to pay to borrow funds on a collateralized basis over a similar term and in a similar economic environment. The Company then applies the respective incremental borrowing rate based on the remaining lease term of the specific lease. Navios Partners’ incremental borrowing rates were approximately
As of June 30, 2025 and December 31, 2024, the outstanding balance of the operating lease liability amounted to $
The Company recognizes the lease payments for its operating leases as charter hire expenses on a straight-line basis over the lease term. Lease expense incurred and paid for the three and six month periods ended June 30, 2025 amounted to $
For the three and six month periods ended June 30, 2025, the sublease income (net of commissions, if any) for vessels where the Company is a lessee amounted to $
As of June 30, 2025, the weighted average useful life of the remaining operating lease terms was
The table below provides the total amount of lease payments for the next five 12-month periods ending June 30 on an undiscounted basis on the Company’s chartered-in contracts as of June 30, 2025:
Period |
|
Amount |
|
|
2026 |
|
$ |
|
|
2027 |
|
|
|
|
2028 |
|
|
|
|
2029 |
|
|
|
|
2030 |
|
|
|
|
2031 and thereafter |
|
|
|
|
Total |
|
$ |
|
|
Operating lease liabilities, including current portion |
|
$ |
|
|
Discount based on incremental borrowing rate |
|
$ |
|
|
F-25
NAVIOS MARITIME PARTNERS L.P.
UNAUDITED NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Expressed in thousands of U.S. Dollars except unit and per unit data)
Finance Leases
For a detailed description of the finance lease liabilities and right-of-use assets for vessels under finance leases, refer to Note 10 – Borrowings and Note 6 – Vessels, net, respectively, to the Company’s consolidated financial statements included in the Annual Report.
For the three and six month periods ended June 30, 2025, the sublease income (net of commissions, if any) for vessels where the Company is a lessee amounted to $
As of June 30, 2025, the weighted average useful life of the remaining finance lease terms was
The table below provides the total amount of lease payments and options to acquire vessels for the next five 12-month periods ending June 30 on an undiscounted basis under the Company’s finance leases as of June 30, 2025:
Period |
|
Amount |
|
|
2026 |
|
$ |
|
|
2027 |
|
|
|
|
2028 |
|
|
|
|
2029 |
|
|
|
|
2030 |
|
|
|
|
2031 and thereafter |
|
|
|
|
Total |
|
$ |
|
|
Finance lease liabilities, including current portion (see Note 6 – Borrowings) |
|
$ |
|
|
Discount based on incremental borrowing rate |
|
$ |
|
|
Bareboat charter-out contracts
Subsequently to the bareboat charter-in agreement, the Company entered into
The Company recognizes in relation to the operating leases for the bareboat charter-out agreements the bareboat charter-out hire income in the condensed Consolidated Statements of Comprehensive Income on a straight-line basis. For the three and six month periods ended June 30, 2025, the charter hire income (net of commissions, if any) amounted to $
NOTE 15 – SUBSEQUENT EVENTS
In August 2025, Navios Partners agreed to sell a
On September 8, 2025, Navios Partners agreed to acquire
F-26
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
NAVIOS MARITIME PARTNERS L.P. |
||
|
|
|
By: |
/s/ Angeliki Frangou |
|
|
Angeliki Frangou |
|
|
Chief Executive Officer |
|
Date: September 8, 2025
45
FAQ
What were Navios Partners' time charter and bareboat revenues for the six months ended June 30, 2025 (NMM)?
How did voyage revenues change year-over-year for the three months ended June 30, 2025?
What financing facilities and outstanding balances did Navios Partners report as of June 30, 2025?
Did Navios Partners recognize any impairments or gains on vessel sales in the period?
What covenant requirements are disclosed in the filing for Navios Partners?
