Navios Maritime Partners L.P., an international owner and operator of dry cargo and tanker vessels, reported its financial results for the second quarter and six month period ended June 30, 2023.

Angeliki Frangou, Chairwoman and Chief Executive Officer of Navios Partners stated, “I am pleased with the results for the second quarter of 2023, in which we reported revenue of $346.9 million and net income of $112.3 million. We are also pleased to report net earnings per common unit of $3.65 for the quarter.”

Angeliki Frangou continued, “The macro environment is challenging. Trade patterns continue to be impacted by the war in Ukraine, China’s anemic economic growth and Western countries pre-occupation with inflation and recessionary risks. Regardless of the shipping sector, there is a great deal of uncertainty about future prospects. We continue to focus on things that we can control, such as reducing our leverage rate and replacing older vessels with younger, more technologically advanced vessels in sectors that provide adequate returns. ”

Fleet update

• Sales YTD

$242.2 million gross sale proceeds from sale of 13 vessels YTD

Completed the sale of eight vessels for $160.3 million in Q1 2023

During the first quarter of 2023, Navios Partners sold the Nave Cosmos, the Nave Dorado, the Nave Polaris, the Star N, the Navios Amaryllis, the Jupiter N, the Navios Prosperity I and the Nave Photon, to various unrelated third parties, for an aggregate sales price of $160.3 million.

Completed the sale of four vessels for $59.6 million in Q2 2023

During the second quarter of 2023, Navios Partners sold the Aurora N, the Navios Anthos, the Navios Libertas and the Serenitas N, to various unrelated third parties, for an aggregate sales price of $59.6 million.

Completed the sale of one vessel for $22.3 million in Q3 2023
On July 7, 2023, Navios Partners sold the Lumen N, a 2008-built LR1 Product Tanker vessel of 63,599 dwt, to an unrelated third party, for a sales price of $22.3 million.

• Acquisitions YTD

Acquisition of two newbuilding MR2 product tanker vessels

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 ten years. Navios Partners has the option to acquire the vessels starting at the end of year four until the end of the charter period. Assuming the exercise of the option at the end of the 10-year period, the bareboat agreements reflect an implied price of approximately $40.2 million per vessel and an implied effective interest of approximately 7.0%. The vessels are expected to be delivered into Navios Partners’ fleet during the second half of 2026 and the first half of 2027. The closing of the transaction is subject to completion of customary documentation.

Acquisition of one Kamsarmax vessel

In August 2023, Navios Partners agreed to acquire from an unrelated third party, the Navios Horizon I, a 2019-built Kamsarmax vessel of 81,692 dwt (previously chartered-in) for an acquisition price of $28.0 million. The delivery of the vessel is expected within the third quarter of 2023.

Delivery of three newbuilding Capesize vessels

In March 2023, April 2023 and June 2023, Navios Partners took delivery of three 2023-built Capesize vessels, the Navios Altair of 182,115 dwt, the Navios Sakura of 182,169 dwt and the Navios Amethyst of 182,212 dwt, respectively.

• Contracted revenue

$131.3 million contracted revenue agreed in Q2 2023 | $3.3 billion total contracted revenue

Navios Partners entered into new long-term charters which are expected to generate revenue of $131.3 million.

Two MR2 newbuilding product tanker vessels, agreed to be acquired in Q4 2022, have been chartered-out for a period of five years, at a rate of $22,959 net per day.

Three MR2 product tanker vessels have been chartered-out for an average period of two years, at an average rate of $21,831 net per day.

Including the above long-term charters, Navios Partners currently has $3.3 billion contracted revenue through 2037.

Financing update

In June 2023, Navios Partners entered into a new credit facility with a commercial bank for up to $107.6 million in order to refinance existing indebtedness of ten vessels. The credit facility: (i) matures three years after the drawdown date; and (ii) bears interest at Secured Overnight Financing Rate (“SOFR”) plus 250 bps per annum.

In June 2023, Navios Partners entered into a new credit facility with a commercial bank for up to $77.8 million in order to refinance existing indebtedness of ten vessels. The credit facility: (i) matures five years after the drawdown date; and (ii) bears interest at Term Secured Overnight Financing Rate (“Term SOFR”) plus 215 bps per annum.

In June 2023, Navios Partners entered into a new credit facility with a commercial bank for up to $62.4 million in order to refinance existing indebtedness of seven vessels. The credit facility: (i) matures three years after the drawdown date; and (ii) bears interest at Term SOFR plus 250 bps per annum.

In June 2023, Navios Partners entered into a new credit facility with a commercial bank for up to $40.0 million in order to refinance existing indebtedness of nine vessels. The credit facility: (i) matures three years after the drawdown date; and (ii) bears interest at SOFR plus 250 bps per annum.

As discussed above, during the second quarter of 2023, Navios Partners agreed to enter into a bareboat-in agreement for two Japanese newbuilding tanker vessels. The total implied amount financed for the two vessels is approximately $62.4 million and the implied effective interest rate is 7.0%. The closing of the transaction is subject to completion of customary documentation.

Cash distribution

The Board of Directors of Navios Partners declared a cash distribution for the second quarter of 2023 of $0.05 per unit. The cash distribution was paid on August 11, 2023 to unitholders of record as of August 8, 2023. The declaration and payment of any further dividends remain subject to the discretion of the Board of Directors and will depend on, among other things, Navios Partners’ cash requirements as measured by market opportunities and restrictions under its credit agreements and other debt obligations and such other factors as the Board of Directors may deem advisable.

Operating Highlights

Navios Partners owns and operates a fleet comprised of 81 dry bulk vessels, 47 containerships and 47 tanker vessels, including ten newbuilding tanker vessels (six Aframax/LR2 and four MR2 Product Tanker chartered-in vessels under bareboat contracts), that are expected to be delivered through 2027 and 12 newbuilding containerships (ten 5,300 TEU and two 7,700 TEU), that are expected to be delivered through 2025.

Navios Partners has entered into short, medium and long-term time charter-out, bareboat-out and freight agreements for its vessels with a remaining average term of 1.8 years. Navios Partners has currently fixed 70.9% and 43.7% of its available days for the remaining six months of 2023 and for 2024, respectively. Navios Partners expects to generate contracted revenue of $505.9 million and $747.9 million for the remaining six months of 2023 and for 2024, respectively. The average expected daily charter-out rate for the fleet is $25,459 and $29,701 for the remaining six months of 2023 and for 2024, respectively.
Source: Navios Maritime Partners L.P.