- Revenue:
- $ 340.8 million for Q3 2024
- $1,001.5 million for 9M 2024
- Net Income:
- $ 97.8 million for Q3 2024
- $ 272.6 million for 9M 2024
- Earnings per common unit:
- $ 3.20 for Q3 2024
- $ 8.87 for 9M 2024
- Net cash from operating activities:
- $ 142.6 million for Q3 2024
- $ 368.6 million for 9M 2024
- EBITDA:
- $ 196.6 million for Q3 2024
- $ 559.8 million for 9M 2024
- Returning capital to unitholders:
- 351,125 common units repurchased in 2024 (through October 29, 2024) for $18.3 million
- $0.05 per unit cash distribution for Q3 2024; $0.20 per unit annualized
- Sales and purchases in Q3 - Q4 2024 QTD:
- $ 212.0 million acquisition of two newbuilding containerships
- $ 25.9 million gross sale proceeds from sale of two dry bulk vessels
- Three newbuilding vessels delivered
- $3.9 billion contracted revenue as of October 2024
MONACO, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Navios Maritime Partners L.P. ("Navios Partners") (NYSE: NMM), an international owner and operator of dry cargo and tanker vessels, today reported its financial results for the third quarter and nine month period ended September 30, 2024.
Angeliki Frangou, Chairwoman and Chief Executive Officer of Navios Partners stated, "I am pleased with the results for the third quarter of 2024 and the nine month period ended September 30, 2024. For the quarter, we reported revenue and net income of $340.8 million and $97.8 million, respectively. For the first nine months, we reported revenue and net income of $1.0 billion and $272.6 million, respectively. Earnings per common unit were $3.20 for the quarter and $8.87 for the first nine months."
Angeliki Frangou continued, "This past 18 months has been surprisingly positive for shipping given sputtering growth from China, weak European economies and two armed conflicts. The Ukrainian conflict, now in its third year, is evolving dangerously while the war in Israel, now in its second year, has expanded to Lebanon and includes the direct exchange of fire between Iran and Israel. We are monitoring these intensifying risks and calibrating our business activity by continuing to maintain a youthful fleet, increasing contracted revenue, now at $3.9 billion, and targeting net leverage in the range of 20-25%, while also returning capital to our unitholders."
Common unit repurchases
As of October 29, 2024, pursuant to its previously announced common unit repurchase program, Navios Partners repurchased 351,125 common units for an aggregate cash consideration of $18.3 million. As of October 29, 2024, there were outstanding 29,833,263 common units.
Cash distribution
The Board of Directors of Navios Partners declared a cash distribution for the third quarter of 2024 of $0.05 per unit. The cash distribution will be paid on November 15, 2024 to unitholders of record as of November 12, 2024. The declaration and payment of any further dividends remain subject to the discretion of the Board of Directors and will depend on, among other things, Navios Partners' cash requirements as measured by market opportunities and restrictions under its credit agreements and other debt obligations and such other factors as the Board of Directors may deem advisable.
Fleet update
- Acquisition of vessels Q3 - Q4 2024 QTD
- Acquisition of two methanol-ready and scrubber-fitted 7,900 TEU newbuilding containerships for $212.0 million
During the third quarter of 2024, Navios Partners agreed to acquire two methanol-ready and scrubber-fitted 7,900 TEU newbuilding containerships, from an unrelated third party, for an aggregate purchase price of $212.0 million. The vessels are expected to be delivered into Navios Partners' fleet during the first half of 2027.
- Sale of vessels Q3 - Q4 2024 QTD
- $25.9 million gross sale proceeds from sale of two dry bulk vessels with average age of 19.0 years
In August 2024 and September 2024, Navios Partners agreed to sell one 2006-built kamsarmax and one 2005-built panamax to unrelated third parties, respectively, for aggregate gross sale proceeds of $25.9 million. The sales were completed in October 2024.
- Three newbuilding vessels delivered Q3 - Q4 2024 QTD
In August 2024 and October 2024, Navios Partners took delivery of two 2024-built 5,300 TEU containerships, which have been chartered-out at an average rate of $37,282 net per day for an average period of 5.3 years.
In October 2024, Navios Partners took delivery of a 2024-built aframax/LR2 tanker, which has been chartered-out at $25,576 net per day for a period of five years.
- $421.7 million contracted revenue agreed Q3 - Q4 2024 QTD; $3.9 billion total contracted revenue
Navios Partners has entered into new long-term charters which are expected to generate revenue of $421.7 million.
|
Including the above long-term charters, Navios Partners has $3.9 billion contracted revenue through 2037.
Financing update
In September 2024, Navios Partners entered into a new credit facility with a commercial bank for a total amount up to $130.0 million (divided into two tranches) in order to refinance the existing indebtedness of six of its vessels (tranche A) and to finance part of the acquisition cost of one newbuilding aframax/LR2 tanker (tranche B). The credit facility: (i) matures five years after each drawdown date; and (ii) bears interest at Term Secured Overnight Financing Rate ("Term SOFR"), plus 175 bps per annum and 150 bps per annum for drawn amounts of tranche A and tranche B, respectively. During the third quarter of 2024, the amount of $81.2 million in relation to tranche A was drawn.
In September 2024, Navios Partners entered into a new credit facility with a commercial bank for a total amount up to $48.0 million (divided into two advances) in order to refinance the existing indebtedness of three of its vessels (advance A) and to finance part of the acquisition cost of one ultra-handymax (advance B). The credit facility: (i) matures four years and six years after each drawdown date of advance A and advance B, respectively; and (ii) bears interest at Term SOFR plus 70 bps per annum for any part of the loan secured by cash collateral and 175 bps per annum for the remaining drawn amount. During the third quarter of 2024, the amount of $30.0 million in relation to advance A was drawn.
Operating Highlights
Navios Partners owns and operates a fleet comprised of 73 dry bulk vessels, 50 containerships and 56 tankers, including 19 newbuilding tankers (13 aframax/LR2 and six MR2 product tanker chartered-in vessels under bareboat contracts), that are expected to be delivered through the first half of 2028, and eight newbuilding containerships (two 5,300 TEU containerships, two 7,700 TEU containerships and four 7,900 TEU containerships), that are expected to be delivered through the first half of 2027.
As of October 29, 2024, Navios Partners had entered into short, medium and long-term time charter-out, bareboat-out and freight agreements for its vessels with a remaining average term of 2.2 years. Navios Partners has currently fixed 80.7% and 54.3% of its available days for the fourth quarter of 2024 and for all of 2025, respectively. Navios Partners expects contracted revenue of $288.9 million and $870.8 million for the fourth quarter of 2024 and for all of 2025, respectively. The average expected daily charter-out rate for the fleet is $26,052 and $27,921 for the fourth quarter of 2024 and for all of 2025, respectively.
EARNINGS HIGHLIGHTS
For the following results and the selected financial data presented herein, Navios Partners has compiled condensed consolidated statements of operations for the three and nine month periods ended September 30, 2024 and 2023. The quarterly information was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA, Adjusted EBITDA, Adjusted Earnings per Common Unit basic and diluted and Adjusted Net Income are non-GAAP financial measures and should not be used in isolation or substitution for Navios Partners' results calculated in accordance with U.S. generally accepted accounting principles ("U.S. GAAP").
| (in $'000 except per unit data) | Three Month Period Ended | Three Month Period Ended | Nine Month Period Ended | Nine Month Period Ended | ||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||
| Revenue | $ | 340,835 | $ | 323,176 | $ | 1,001,545 | $ | 979,636 | ||||
| Net Income | $ | 97,755 | $ | 89,781 | $ | 272,585 | $ | 301,254 | ||||
| Adjusted Net Income | $ | 96,514 | (1) | $ | 82,611 | (2) | $ | 262,211 | (3) | $ | 250,483 | (4) |
| Net cash provided by operating activities | $ | 142,639 | $ | 120,270 | $ | 368,554 | $ | 348,613 | ||||
| EBITDA | $ | 196,621 | $ | 180,838 | $ | 559,784 | $ | 571,275 | ||||
| Adjusted EBITDA | $ | 195,380 | (1) | $ | 173,668 | (2) | $ | 549,410 | (3) | $ | 520,504 | (4) |
| Earnings per Common Unit basic | $ | 3.20 | $ | 2.92 | $ | 8.87 | $ | 9.78 | ||||
| Earnings per Common Unit diluted | $ | 3.20 | $ | 2.91 | $ | 8.87 | $ | 9.78 | ||||
| Adjusted Earnings per Common Unit basic | $ | 3.15 | (1) | $ | 2.68 | (2) | $ | 8.53 | (3) | $ | 8.13 | (4) |
| Adjusted Earnings per Common Unit diluted | $ | 3.15 | (1) | $ | 2.68 | (2) | $ | 8.53 | (3) | $ | 8.13 | (4) |
| (1) | Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per Common Unit basic and diluted for the three month period ended September 30, 2024 have been adjusted to exclude a $1.2 million gain related to the sale of one of our vessels. |
| (2) | Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per Common Unit basic and diluted for the three month period ended September 30, 2023 have been adjusted to exclude a $7.2 million net gain related to the sale of two of our vessels. |
| (3) | Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per Common Unit basic and diluted for the nine month period ended September 30, 2024 have been adjusted to exclude a $10.4 million net gain related to: (a) the gain on the sale of five of our vessels; and (b) the impairment loss on two of our vessels. |
| (4) | Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per Common Unit basic and diluted for the nine month period ended September 30, 2023 have been adjusted to exclude a $50.8 million net gain related to the sale of 14 of our vessels. |
Three month periods ended September 30, 2024 and 2023
Time charter and voyage revenues for the three month period ended September 30, 2024 increased by $17.6 million, or 5.4%, to $340.8 million, as compared to $323.2 million for the same period in 2023. The increase in revenue was mainly attributable to the increase in Time Charter Equivalent ("TCE") rate. For the three month periods ended September 30, 2024 and 2023, time charter and voyage revenues were positively affected by $2.4 million and negatively affected by $9.7 million, respectively, relating to the straight line effect of the containership and tanker charters with de-escalating rates. The TCE rate increased by 7.0% to $23,591 per day, as compared to $22,052 per day for the same period in 2023. The available days of the fleet slightly decreased by 1.5% to 13,552 days for the three month period ended September 30, 2024, as compared to 13,759 days for the same period in 2023 mainly due to the sale of vessels, partially mitigated by the deliveries of newbuilding vessels.
EBITDA of Navios Partners for the three month periods ended September 30, 2024 and 2023 was affected by the items described in the table above. Excluding these items, Adjusted EBITDA increased by $21.7 million to $195.4 million for the three month period ended September 30, 2024, as compared to $173.7 million for the same period in 2023. The increase in Adjusted EBITDA was primarily due to a: (i) $17.6 million increase in time charter and voyage revenues; (ii) $5.3 million increase in other income, net; (iii) $5.0 million decrease in time charter and voyage expenses, mainly due to the decrease in bunker expenses arising from the decreased days of freight voyages in the third quarter of 2024 and bareboat and charter-in hire expenses of the dry bulk fleet; and (iv) $1.5 million decrease in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items). The above increase was partially mitigated by a: (i) $6.1 million increase in vessel operating expenses mainly due to the change in the composition of our fleet with deliveries and sale of vessels and the adjustment of the fixed daily fee in accordance with our management agreements; and (ii) $1.6 million increase in general and administrative expenses in accordance with our administrative services agreement.
Net Income for the three month periods ended September 30, 2024 and 2023 was affected by the items described in the table above. Excluding these items, Adjusted Net Income increased by $13.9 million to $96.5 million for the three month period ended September 30, 2024, as compared to $82.6 million for the same period in 2023. The increase in Adjusted Net Income was primarily due to a: (i) $21.7 million increase in Adjusted EBITDA; and (ii) $0.1 million increase in interest income. The above increase was partially mitigated by a: (i) $7.1 million negative impact from the depreciation and amortization, that primarily resulted from a $3.6 million increase in the amortization of deferred drydock, special survey costs and other capitalized items, a $3.2 million increase in the depreciation and amortization of intangible assets and a $0.3 million decrease in the amortization of unfavorable lease terms; and (ii) $0.8 million increase in interest expense and finance cost, net.
Nine month periods ended September 30, 2024 and 2023
Time charter and voyage revenues for the nine month period ended September 30, 2024 increased by $21.9 million, or 2.2%, to $1,001.5 million, as compared to $979.6 million for the same period in 2023. The increase in revenue was mainly attributable to the increase in TCE rate. For the nine month periods ended September 30, 2024 and 2023, time charter and voyage revenues were positively affected by $4.9 million and negatively affected by $30.2 million, respectively, relating to the straight line effect of the containership and tanker charters with de-escalating rates. The TCE rate increased by 2.6% to $22,830 per day, as compared to $22,242 per day for the same period in 2023. The available days of the fleet slightly decreased by 1.6% to 40,590 days for the nine month period ended September 30, 2024, as compared to 41,239 days for the same period in 2023 mainly due to the sale of vessels, partially mitigated by the deliveries of newbuilding vessels.
EBITDA of Navios Partners for the nine month periods ended September 30, 2024 and 2023 was affected by the items described in the table above. Excluding these items, Adjusted EBITDA increased by $28.9 million to $549.4 million for the nine month period ended September 30, 2024, as compared to $520.5 million for the same period in 2023. The increase in Adjusted EBITDA was primarily due to: (i) a $21.9 million increase in time charter and voyage revenues; (ii) an $8.6 million decrease in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); (iii) a $7.1 million decrease in other expense, net; and (iv) a $4.7 million decrease in time charter and voyage expenses, mainly due to the decrease in bareboat and charter-in hire expenses of the dry bulk fleet. The above increase was partially mitigated by a: (i) $10.6 million increase in vessel operating expenses mainly due the change in the composition of our fleet with deliveries and sale of vessels and the adjustment of the fixed daily fee in accordance with our management agreements, partially mitigated by the sale of vessels; and (ii) $2.8 million increase in general and administrative expenses in accordance with our administrative services agreement.
Net Income for the nine month periods ended September 30, 2024 and 2023 was affected by the items described in the table above. Excluding these items, Adjusted Net Income increased by $11.7 million to $262.2 million for the nine month period ended September 30, 2024, as compared to $250.5 million for the same period in 2023. The increase in Adjusted Net Income was primarily due to: (i) a $28.9 million increase in Adjusted EBITDA; (ii) an $8.6 million decrease in interest expense and finance cost, net; and (iii) a $3.0 million increase in interest income. The above increase was partially mitigated by a $28.8 million negative impact from the depreciation and amortization, that primarily resulted from a $15.1 million increase in the amortization of deferred drydock, special survey costs and other capitalized items, a $6.9 million decrease in the amortization of unfavorable lease terms and a $6.8 million increase in the depreciation and amortization of intangible assets.
Fleet Employment Profile
The following table reflects certain key indicators of Navios Partners' core fleet performance for the three and nine month periods ended September 30, 2024 and 2023.
| Three Month Period Ended September 30, 2024 | Three Month Period Ended September 30, 2023 | Nine Month Period Ended September 30, 2024 | Nine Month Period Ended September 30, 2023 | ||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||
| Available Days (1) | 13,552 | 13,759 | 40,590 | 41,239 | |||||||||||
| Operating Days (2) | 13,371 | 13,646 | 40,122 | 40,869 | |||||||||||
| Fleet Utilization (3) | 98.7% | 99.2% | 98.8% | 99.1% | |||||||||||
| TCE rate Combined (per day) (4) | $ | 23,591 | $ | 22,052 | $ | 22,830 | $ | 22,242 | |||||||
| TCE rate Dry Bulk (per day) (4) | $ | 18,632 | $ | 14,139 | $ | 16,920 | $ | 13,613 | |||||||
| TCE rate Containerships (per day) (4) | $ | 30,710 | $ | 34,350 | $ | 30,275 | $ | 34,930 | |||||||
| TCE rate Tankers (per day) (4) | $ | 25,788 | $ | 27,688 | $ | 27,241 | $ | 29,014 | |||||||
| Vessels operating at period end | 154 | 153 | 154 | 153 | |||||||||||
| (1 | ) | Available days for the fleet represent total calendar days the vessels were in Navios Partners' possession for the relevant period after subtracting off-hire days associated with scheduled repairs, drydockings or special surveys and ballast days relating to voyages. The shipping industry uses available days to measure the number of days in a relevant period during which a vessel is capable of generating revenues. |
| (2 | ) | Operating days are the number of available days in the relevant period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a relevant period during which vessels actually generate revenues. |
| (3 | ) | Fleet utilization is the percentage of time that Navios Partners' vessels were available for generating revenue, and is determined by dividing the number of operating days during a relevant period by the number of available days during that period. The shipping industry uses fleet utilization to measure efficiency in finding employment for vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs, drydockings or special surveys. |
| (4 | ) | TCE rate: TCE rate per day is defined as voyage, time charter revenues and charter-out revenues under bareboat contracts (grossed up by the applicable fixed vessel operating expenses for the respective periods) less voyage expenses during a period divided by the number of available days during the period. The TCE rate per day is a customary shipping industry performance measure used primarily to present the actual daily earnings generated by vessels on various types of charter contracts for the number of available days of the fleet. |
Conference Call Details:
Navios Partners' management will host a conference call on Tuesday, November 5, 2024 to discuss the results for the third quarter and nine months ended September 30, 2024.
Call Date/Time: Tuesday, November 5, 2024 at 8:30 am ET
Call Title: Navios Partners Q3 2024 Financial Results Conference Call
US Dial In: +1.800.267.6316
International Dial In: +1.203.518.9783
Conference ID: NMMQ324
The conference call replay will be available two hours after the live call and remain available for one week at the following numbers:
US Replay Dial In: +1.800.839.5637
International Replay Dial In: +1.402.220.2562
Slides and audio webcast:
There will also be a live webcast of the conference call, through the Navios Partners website (www.navios-mlp.com) under "Investors". Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
A supplemental slide presentation will be available on the Navios Partners website at www.navios-mlp.com under the "Investors" section at 8:00 am ET on the day of the call.
About Navios Maritime Partners L.P.
Navios Maritime Partners L.P. (NYSE: NMM) is an international owner and operator of dry cargo and tanker vessels. For more information, please visit our website at www.navios-mlp.com.
Forward-Looking Statements
This press release contains and will contain forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, TCE rates and Navios Partners' expected cash flow generation, future contracted revenues, future distributions and its ability to make distributions going forward, opportunities to reinvest cash accretively in a fleet renewal program or otherwise, potential capital gains, its ability to take advantage of dislocation in the market and Navios Partners' growth strategy and measures to implement such strategy, including expected vessel acquisitions and entering into further time charters and Navios Partners' ability to refinance its debt on attractive terms, or at all. Words such as "may," "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements.
These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Navios Partners at the time these statements were made. Although Navios Partners believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Partners. Actual results may differ materially from those expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially include, but are not limited to, risks relating to: global and regional economic and political conditions including global economic activity, demand for seaborne transportation of the products we ship, the ability and willingness of charterers to fulfill their obligations to us and prevailing charter rates, the economic condition of the markets in which we operate, shipyards performing scrubber installations, construction of newbuilding vessels, drydocking and repairs, changing vessel crews and availability of financing; potential disruption of shipping routes due to accidents, wars, 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; and other factors listed from time to time in Navios Partners' filings with the Securities and Exchange Commission, including its Form 20-Fs and Form 6-Ks. Navios Partners expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Partners' expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Navios Partners makes no prediction or statement about the performance of its common units.
Contacts
Navios Maritime Partners L.P.
+1 (212) 906 8645
Investors@navios-mlp.com
Nicolas Bornozis
Capital Link, Inc.
+1 (212) 661 7566
naviospartners@capitallink.com
EXHIBIT 1
| NAVIOS MARITIME PARTNERS L.P. SELECTED BALANCE SHEET DATA (Expressed in thousands of U.S. Dollars) | ||||||
| September 30, 2024 (unaudited) | December 31, 2023 (unaudited) | |||||
| ASSETS | ||||||
| Cash and cash equivalents, including restricted cash and time deposits over three months (1) | $ | 331,934 | $ | 296,175 | ||
| Other current assets | 140,926 | 103,573 | ||||
| Total current assets | 472,860 | 399,748 | ||||
| Vessels, net | 4,064,606 | 3,734,671 | ||||
| Other non-current assets | 1,011,067 | 1,013,147 | ||||
| Total non-current assets | 5,075,673 | 4,747,818 | ||||
| Total assets | $ | 5,548,533 | $ | 5,147,566 | ||
| LIABILITIES AND PARTNERS' CAPITAL | ||||||
| Other current liabilities | $ | 128,987 | $ | 174,564 | ||
| Current portion of borrowings, net | 289,874 | 285,036 | ||||
| Total current liabilities | 418,861 | 459,600 | ||||
| Non-current portion of borrowings, net | 1,792,411 | 1,576,427 | ||||
| Other non-current liabilities | 313,835 | 341,087 | ||||
| Total non-current liabilities | 2,106,246 | 1,917,514 | ||||
| Total liabilities | $ | 2,525,107 | $ | 2,377,114 | ||
| Total partners' capital | 3,023,426 | 2,770,452 | ||||
| Total liabilities and partners' capital | $ | 5,548,533 | $ | 5,147,566 | ||
| (1) | Includes time deposits with duration over three months of $38.0 million and $47.0 million as of September 30, 2024 and December 31, 2023, respectively. |
| NAVIOS MARITIME PARTNERS L.P. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in thousands of U.S. Dollars except unit and per unit data) | |||||||||||||||||
| Three Month Period Ended September 30, 2024 | Three Month Period Ended September 30, 2023 | Nine Month Period Ended September 30, 2024 | Nine Month Period Ended September 30, 2023 | ||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||
| Time charter and voyage revenues | $ | 340,835 | $ | 323,176 | $ | 1,001,545 | $ | 979,636 | |||||||||
| Time charter and voyage expenses | (34,941 | ) | (39,877 | ) | (116,896 | ) | (121,596 | ) | |||||||||
| Direct vessel expenses | (18,115 | ) | (15,941 | ) | (54,584 | ) | (48,145 | ) | |||||||||
| Vessel operating expenses | (88,963 | ) | (82,856 | ) | (259,156 | ) | (248,622 | ) | |||||||||
| General and administrative expenses | (21,102 | ) | (19,524 | ) | (62,430 | ) | (59,559 | ) | |||||||||
| Depreciation and amortization of intangible assets | (57,674 | ) | (54,513 | ) | (169,558 | ) | (162,768 | ) | |||||||||
| Amortization of unfavorable lease terms | 3,206 | 3,521 | 9,513 | 16,431 | |||||||||||||
| Gain on sale of vessels, net | 1,241 | 7,170 | 10,374 | 50,771 | |||||||||||||
| Interest expense and finance cost, net | (32,608 | ) | (31,849 | ) | (92,104 | ) | (100,703 | ) | |||||||||
| Interest income | 3,394 | 3,314 | 10,386 | 7,414 | |||||||||||||
| Other income/ (expense), net | 2,482 | (2,840 | ) | (4,505 | ) | (11,605 | ) | ||||||||||
| Net income | $ | 97,755 | $ | 89,781 | $ | 272,585 | $ | 301,254 | |||||||||
Earnings per unit:
| Three Month Period Ended | Three Month Period Ended | Nine Month Period Ended | Nine Month Period Ended | ||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||
| Earnings per unit: | |||||||||||||
| Earnings per common unit, basic | $ | 3.20 | $ | 2.92 | $ | 8.87 | $ | 9.78 | |||||
| Earnings per common unit, diluted | $ | 3.20 | $ | 2.91 | $ | 8.87 | $ | 9.78 | |||||
| NAVIOS MARITIME PARTNERS L.P. Other Financial Information (Expressed in thousands of U.S. Dollars) | |||||||||
| Nine Month Period Ended September 30, 2024 | Nine Month Period Ended September 30, 2023 | ||||||||
| (unaudited) | (unaudited) | ||||||||
| Net cash provided by operating activities | $ | 368,554 | $ | 348,613 | |||||
| Net cash used in investing activities | $ | (613,964 | ) | $ | (72,423 | ) | |||
| Net cash provided by/ (used in) financing activities | $ | 290,193 | $ | (182,115 | ) | ||||
| Increase in cash, cash equivalents and restricted cash | $ | 44,783 | $ | 94,075 | |||||
EXHIBIT 2
| Owned Dry Bulk Vessels | Type | Built | Capacity (DWT) | |||
| Navios Vega | Transhipper | 2009 | 57,573 | |||
| Navios Christine B | Ultra-Handymax | 2009 | 58,058 | |||
| Navios Celestial | Ultra-Handymax | 2009 | 58,063 | |||
| Navios La Paix | Ultra-Handymax | 2014 | 61,485 | |||
| N Amalthia | Panamax | 2006 | 75,318 | |||
| Navios Hope | Panamax | 2005 | 75,397 | |||
| Navios Sagittarius | Panamax | 2006 | 75,756 | |||
| Navios Galileo | Panamax | 2006 | 76,596 | |||
| Navios Sun | Panamax | 2005 | 76,619 | |||
| Navios Asteriks | Panamax | 2005 | 76,801 | |||
| Navios Helios | Panamax | 2005 | 77,075 | |||
| Navios Victory | Panamax | 2014 | 77,095 | |||
| Unity N | Panamax | 2011 | 79,642 | |||
| Odysseus N | Panamax | 2011 | 79,642 | |||
| Rainbow N | Panamax | 2011 | 79,642 | |||
| Navios Amber | Kamsarmax | 2015 | 80,994 | |||
| 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 | Kamsarmax | 2019 | 81,692 | |||
| Navios Galaxy II | Kamsarmax | 2020 | 81,789 | |||
| Navios Uranus | Kamsarmax | 2019 | 81,821 | |||
| Navios Felicity I | Kamsarmax | 2020 | 81,962 | |||
| Navios Primavera | Kamsarmax | 2022 | 82,003 | |||
| Navios Meridian | Kamsarmax | 2023 | 82,010 | |||
| Navios Herakles I | Kamsarmax | 2019 | 82,036 | |||
| Navios Magellan II | Kamsarmax | 2020 | 82,037 | |||
| Navios Sky | Kamsarmax | 2015 | 82,056 | |||
| Navios Alegria | 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 | Capesize | 2009 | 169,001 | |||
| Navios Aurora II | Capesize | 2009 | 169,031 | |||
| Navios Antares | Capesize | 2010 | 169,059 | |||
| Navios Symphony | Capesize | 2010 | 178,132 | |||
| Navios Ace | Capesize | 2011 | 179,016 | |||
| Navios Melodia | Capesize | 2010 | 179,132 | |||
| Navios Luz | Capesize | 2010 | 179,144 | |||
| Navios Altamira | Capesize | 2011 | 179,165 | |||
| Navios Azimuth | Capesize | 2011 | 179,169 | |||
| Navios Etoile | Capesize | 2010 | 179,234 | |||
| Navios Buena Ventura | Capesize | 2010 | 179,259 | |||
| Navios Bonheur | Capesize | 2010 | 179,259 | |||
| Navios Fulvia | Capesize | 2010 | 179,263 | |||
| Navios Aster | Capesize | 2010 | 179,314 | |||
| Navios Ray | Capesize | 2012 | 179,515 | |||
| Navios Happiness | Capesize | 2009 | 180,022 | |||
| Navios Bonavis | Capesize | 2009 | 180,022 | |||
| Navios Phoenix | Capesize | 2009 | 180,242 | |||
| Navios Fantastiks | Capesize | 2005 | 180,265 | |||
| Navios Sol | Capesize | 2009 | 180,274 | |||
| Navios Canary | Capesize | 2015 | 180,528 | |||
| Navios Lumen | Capesize | 2009 | 180,661 | |||
| Navios Pollux | Capesize | 2009 | 180,727 | |||
| Navios Felix | Capesize | 2016 | 181,221 | |||
| Navios Corali | Capesize | 2015 | 181,249 | |||
| Navios Mars | Capesize | 2016 | 181,259 | |||
| Navios Gem | Capesize | 2014 | 181,336 | |||
| Navios Joy | Capesize | 2013 | 181,389 | |||
| Navios Koyo | Capesize | 2011 | 181,415 | |||
| Navios Azalea | Capesize | 2022 | 182,064 | |||
| Navios Armonia | Capesize | 2022 | 182,079 | |||
| Navios Altair | Capesize | 2023 | 182,115 | |||
| Navios Sakura | Capesize | 2023 | 182,169 | |||
| Navios Amethyst | Capesize | 2023 | 182,212 | |||
| Navios Astra | Capesize | 2022 | 182,393 |
| Owned Containerships | Type | Built | Capacity (TEU) | |||
| Spectrum N | Containership | 2009 | 2,546 | |||
| Protostar N | Containership | 2007 | 2,741 | |||
| Fleur N | Containership | 2012 | 2,782 | |||
| Ete N | Containership | 2012 | 2,782 | |||
| Navios Summer | Containership | 2006 | 3,450 | |||
| Navios Verano | Containership | 2006 | 3,450 | |||
| Matson Lanai | Containership | 2007 | 4,250 | |||
| Navios Verde | Containership | 2007 | 4,250 | |||
| Navios Amarillo | Containership | 2007 | 4,250 | |||
| Navios Vermilion | Containership | 2007 | 4,250 | |||
| Navios Azure | Containership | 2007 | 4,250 | |||
| Navios Indigo | Containership | 2007 | 4,250 | |||
| Navios Domino | Containership | 2008 | 4,250 | |||
| Matson Oahu | Containership | 2008 | 4,250 | |||
| Navios Tempo | Containership | 2009 | 4,250 | |||
| Navios Destiny | Containership | 2009 | 4,250 | |||
| Navios Devotion | Containership | 2009 | 4,250 | |||
| Navios Lapis | Containership | 2009 | 4,250 | |||
| Navios Dorado | Containership | 2010 | 4,250 | |||
| Carmel I | Containership | 2010 | 4,360 | |||
| Zim Baltimore | Containership | 2010 | 4,360 | |||
| Navios Bahamas | Containership | 2010 | 4,360 | |||
| Navios Miami | Containership | 2009 | 4,563 | |||
| Navios Magnolia | Containership | 2008 | 4,730 | |||
| Navios Jasmine | Containership | 2008 | 4,730 | |||
| Navios Chrysalis | Containership | 2008 | 4,730 | |||
| Navios Nerine | Containership | 2008 | 4,730 | |||
| Sparrow | Containership | 2023 | 5,300 | |||
| Zim Eagle | Containership | 2024 | 5,300 | |||
| Zim Condor | Containership | 2024 | 5,300 | |||
| Zim Hawk | Containership | 2024 | 5,300 | |||
| Zim Falcon | Containership | 2024 | 5,300 | |||
| Zim Pelican | Containership | 2024 | 5,300 | |||
| Zim Seagull | Containership | 2024 | 5,300 | |||
| Navios Utmost | Containership | 2024 | 5,300 | |||
| Hyundai Shanghai | Containership | 2006 | 6,800 | |||
| Hyundai Tokyo | Containership | 2006 | 6,800 | |||
| Hyundai Hongkong | Containership | 2006 | 6,800 | |||
| Hyundai Singapore | Containership | 2006 | 6,800 | |||
| Hyundai Busan | Containership | 2006 | 6,800 | |||
| Navios Unison | Containership | 2010 | 10,000 | |||
| Navios Constellation | Containership | 2011 | 10,000 |
| Owned Tanker Vessels | Type | Built | Capacity (DWT) | |||
| Hector N | MR1 Product Tanker | 2008 | 38,402 | |||
| Nave Aquila | MR2 Product Tanker | 2012 | 49,991 | |||
| Nave Atria | MR2 Product Tanker | 2012 | 49,992 | |||
| Nave Capella | MR2 Product Tanker | 2013 | 49,995 | |||
| Nave Alderamin | MR2 Product Tanker | 2013 | 49,998 | |||
| Nave Pyxis | MR2 Product Tanker | 2014 | 49,998 | |||
| Nave Bellatrix | MR2 Product Tanker | 2013 | 49,999 | |||
| Nave Orion | MR2 Product Tanker | 2013 | 49,999 | |||
| Nave Titan | MR2 Product Tanker | 2013 | 49,999 | |||
| Nave Luminosity | MR2 Product Tanker | 2014 | 49,999 | |||
| Nave Jupiter | MR2 Product Tanker | 2014 | 49,999 | |||
| Nave Velocity | MR2 Product Tanker | 2015 | 49,999 | |||
| Nave Sextans | MR2 Product Tanker | 2015 | 49,999 | |||
| Nave Equinox | MR2 Product Tanker | 2007 | 50,922 | |||
| Nave Pulsar | MR2 Product Tanker | 2007 | 50,922 | |||
| Bougainville | MR2 Product Tanker | 2013 | 50,626 | |||
| Nave Cetus | LR1 Product Tanker | 2012 | 74,581 | |||
| Nave Ariadne | LR1 Product Tanker | 2007 | 74,671 | |||
| Nave Cielo | LR1 Product Tanker | 2007 | 74,671 | |||
| Nave Rigel | LR1 Product Tanker | 2013 | 74,673 | |||
| Nave Atropos | LR1 Product Tanker | 2013 | 74,695 | |||
| Nave Cassiopeia | LR1 Product Tanker | 2012 | 74,711 | |||
| Nave Andromeda | LR1 Product Tanker | 2011 | 75,000 | |||
| Nave Estella | LR1 Product Tanker | 2012 | 75,000 | |||
| Nave Cosmos | Aframax/LR2 | 2024 | 115,651 | |||
| Nave Polaris | Aframax/LR2 | 2024 | 115,699 | |||
| Nave Photon | Aframax/LR2 | 2024 | 115,752 | |||
| Nave Constellation | VLCC | 2010 | 296,988 | |||
| Nave Universe | VLCC | 2011 | 297,066 | |||
| Nave Galactic | VLCC | 2009 | 297,168 | |||
| Nave Quasar | VLCC | 2010 | 297,376 | |||
| Nave Buena Suerte | VLCC | 2011 | 297,491 | |||
| Nave Synergy | VLCC | 2010 | 299,973 |
| Bareboat-in vessels | Type | Built | Capacity (DWT) | Purchase Option | ||||
| Navios Star | Kamsarmax | 2021 | 81,994 | Yes | ||||
| Navios Amitie | Kamsarmax | 2021 | 82,002 | Yes | ||||
| Navios Libra | Kamsarmax | 2019 | 82,011 | Yes | ||||
| Nave Electron | VLCC | 2021 | 313,239 | Yes | ||||
| Nave Celeste | VLCC | 2022 | 313,418 | Yes | ||||
| Baghdad | VLCC | 2020 | 313,433 | Yes | ||||
| Erbil | VLCC | 2021 | 313,486 | Yes |
| Newbuildings to be delivered | Type | Expected Delivery Date | Capacity (TEU / DWT) | |||
| TBN I | Containership | Q4 2024 | 5,300 | |||
| TBN II | Containership | Q4 2024 | 5,300 | |||
| TBN VI | Containership | H1 2025 | 7,700 | |||
| TBN VII | Containership | H1 2025 | 7,700 | |||
| TBN XX | Containership | H2 2026 | 7,900 | |||
| TBN XXI | Containership | H2 2026 | 7,900 | |||
| TBN XXVI | Containership | H1 2027 | 7,900 | |||
| TBN XXVII | Containership | H1 2027 | 7,900 | |||
| TBN VIII | MR2 Product Tanker | H2 2025 | 52,000 | |||
| TBN IX | MR2 Product Tanker | H1 2026 | 52,000 | |||
| TBN X | MR2 Product Tanker | H2 2026 | 52,000 | |||
| TBN XI | MR2 Product Tanker | H2 2026 | 52,000 | |||
| TBN XII | MR2 Product Tanker | H1 2027 | 52,000 | |||
| TBN XIII | MR2 Product Tanker | H1 2027 | 52,000 | |||
| TBN III | Aframax/LR2 | H1 2025 | 115,000 | |||
| TBN IV | Aframax/LR2 | H1 2025 | 115,000 | |||
| TBN V | Aframax/LR2 | H1 2025 | 115,000 | |||
| TBN XIV | Aframax/LR2 | H1 2026 | 115,000 | |||
| TBN XV | Aframax/LR2 | H1 2026 | 115,000 | |||
| TBN XVI | Aframax/LR2 | H1 2026 | 115,000 | |||
| TBN XVII | Aframax/LR2 | H2 2026 | 115,000 | |||
| TBN XVIII | Aframax/LR2 | H1 2027 | 115,000 | |||
| TBN XIX | Aframax/LR2 | H2 2027 | 115,000 | |||
| TBN XXII | Aframax/LR2 | H2 2027 | 115,000 | |||
| TBN XXIII | Aframax/LR2 | H2 2027 | 115,000 | |||
| TBN XXIV | Aframax/LR2 | H1 2028 | 115,000 | |||
| TBN XXV | Aframax/LR2 | H1 2028 | 115,000 |
| Chartered-in vessels | Type | Year Built | Capacity (DWT) | Purchase Option | ||||
| Navios Venus | Ultra-Handymax | 2015 | 61,339 | Yes(1) | ||||
| Navios Gemini | Kamsarmax | 2018 | 81,704 | No |
| (1) | Option to acquire the vessel has been declared. |
EXHIBIT 3
Disclosure of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings per Common Unit, basic and diluted are "non-U.S. GAAP financial measures" and should not be used in isolation or considered substitutes for net income/ (loss), cash flow from operating activities and other operations or cash flow statement data prepared in accordance with generally accepted accounting principles in the United States.
EBITDA represents net income before interest and finance costs, depreciation and amortization (including intangible accelerated amortization) and income taxes. Adjusted EBITDA represents EBITDA excluding certain items, as described under "Earnings Highlights". Navios Partners uses Adjusted EBITDA as a liquidity measure and reconciles EBITDA and Adjusted EBITDA to net cash provided by operating activities, the most comparable U.S. GAAP liquidity measure. EBITDA in this document is calculated as follows: net cash provided by operating activities adding back, when applicable and as the case may be, the effect of: (i) net increase in operating assets; (ii) net (increase)/ decrease in operating liabilities; (iii) net interest cost; (iv) amortization and write-off of deferred finance costs and discount; (v) amortization of operating lease assets/ liabilities; (vi) non-cash amortization of deferred revenue and straight line effect of the containership and tanker charters with de-escalating rates; (vii) stock-based compensation expense; and (viii) gain on sale of vessels, net. Navios Partners believes that EBITDA and Adjusted EBITDA are each the basis upon which liquidity can be assessed and presents useful information to investors regarding Navios Partners' ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and make cash distributions. Navios Partners also believes that EBITDA and Adjusted EBITDA are used: (i) by potential lenders to evaluate potential transactions; (ii) to evaluate and price potential acquisition candidates; and (iii) by securities analysts, investors and other interested parties in the evaluation of companies in our industry.
Each of EBITDA and Adjusted EBITDA have limitations as an analytical tool, and should not be considered in isolation or as a substitute for the analysis of Navios Partners' results as reported under U.S. GAAP. Some of these limitations are: (i) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; and (ii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. EBITDA and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of Navios Partners' performance. Furthermore, our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.
We present Adjusted Net Income by excluding items that we do not believe are indicative of our core operating performance. Our presentation of Adjusted Net Income adjusts net income for the items described above under "Earnings Highlights". The definition of Adjusted Net Income used here may not be comparable to that used by other companies due to differences in methods of calculation. Adjusted Earnings per Common Unit is defined as Adjusted Net Income divided by the weighted average number of common units outstanding for each of the periods presented, basic and diluted.
EXHIBIT 4
Navios Maritime Partners L.P. Reconciliation of EBITDA and Adjusted EBITDA to Cash from Operations
| Three Month Period Ended | Three Month Period Ended | Nine Month Period Ended | Nine Month Period Ended | |||||||||||||
| September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||
| ($ '000) | ($ '000) | ($ '000) | ($ '000) | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Net cash provided by operating activities | $ | 142,639 | $ | 120,270 | $ | 368,554 | $ | 348,613 | ||||||||
| Net increase in operating assets | 30,449 | 32,481 | 56,013 | 22,288 | ||||||||||||
| Net (increase)/ decrease in operating liabilities | (8,581 | ) | 12,605 | 37,524 | 114,551 | |||||||||||
| Net interest cost | 29,214 | 28,535 | 81,718 | 93,289 | ||||||||||||
| Amortization and write-off of deferred finance costs and discount | (2,191 | ) | (1,625 | ) | (5,900 | ) | (5,243 | ) | ||||||||
| Amortization of operating lease assets/ liabilities | 190 | (2,623 | ) | 2,784 | (7,769 | ) | ||||||||||
| Non-cash amortization of deferred revenue and straight line | 3,660 | (15,974 | ) | 8,717 | (45,222 | ) | ||||||||||
| Stock-based compensation | - | (1 | ) | - | (3 | ) | ||||||||||
| Gain on sale of vessels, net | 1,241 | 7,170 | 10,374 | 50,771 | ||||||||||||
| EBITDA | $ | 196,621 | $ | 180,838 | $ | 559,784 | $ | 571,275 | ||||||||
| Gain on sale of vessels, net | (1,241 | ) | (7,170 | ) | (10,374 | ) | (50,771 | ) | ||||||||
| Adjusted EBITDA | $ | 195,380 | $ | 173,668 | $ | 549,410 | $ | 520,504 | ||||||||
| Three Month Period Ended | Three Month Period Ended | Nine Month Period Ended | Nine Month Period Ended | |||||||||||||
| September 30, 2024 ($ '000) | September 30, 2023 ($ '000) | September 30, 2024 ($ '000) | September 30, 2023 ($ '000) | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Net cash provided by operating activities | $ | 142,639 | $ | 120,270 | $ | 368,554 | $ | 348,613 | ||||||||
| Net cash used in investing activities | $ | (320,007 | ) | $ | (104,088 | ) | $ | (613,964 | ) | $ | (72,423 | ) | ||||
| Net cash provided by/ (used in) financing activities | $ | 191,482 | $ | (17,061 | ) | $ | 290,193 | $ | (182,115 | ) | ||||||
