Navios Maritime Partners LP Q3 FY2024 earnings call

• Angeliki Frangou noted strong Q3 and first nine-month results, cash balance of $331.9 million, net LTV of 32.9%, and capital return to unit holders via dividends and repurchases. - Stratos Desypris discussed Q4 operating free cash flow potential, fleet renewal with new deliveries, and $420 million additional contracted revenue added in Q3 and Q4 to date. - Eri Tsironi reviewed financial results, balance sheet data including cash and debt, and debt profile diversification. - Ted Petrone provided industry overview on trade disruptions, tanker, dry bulk, and container sectors, including Red Sea transit issues and fleet growth projections.

For the third quarter of 2024, revenue was $340.8 million and net income was $97.8 million. For the first nine months ended September 30, 2024, revenue was $1 billion and net income was $272.6 million. In the third quarter, dry bulk fleet time charter rate increased by 32% to $18,632 per day, while containers and tankers were down 11% and 7% respectively. For the first nine months, dry bulk fleet time charter rate increased by 24% to $16,920 per day, containers down 13% and tankers down 6%. Total contracted revenue is $3.9 billion, with $1.5 billion from tankers, $0.3 billion from dry-bulk, and $2.1 billion from containerships.

• For Q4 2024, contracted revenue is expected to exceed total cash expense by $61.8 million with 2,650 remaining open/index days. - Continued fleet renewal with 27 newbuilding vessels delivering through 2028, including 8 containerships and 19 tankers, with long-term charters securing revenue. - $420 million additional contracted revenue created in Q3 and Q4 to date.

• Geopolitical risks such as the Ukrainian conflict, Israel-Hamas war, and Red Sea disruptions affecting transit and ton miles. - Macroeconomic uncertainty impacting ship ordering and asset values. - IMO regulations and engine technology concerns affecting fleet modernization.

Q: Concerns about shipping market excitement easing and asset price pressure, and if Navios can take advantage.

A: Angeliki Frangou stated the market has been strong despite geopolitical risks, Navios is focused on strategy, modernizing fleet, and returning capital, and will remain opportunistic.

Q: Thoughts on 2025 strategy, adding fixed cover, and contract cover needs.

A: Angeliki Frangou mentioned Navios is opportunistic in adding contracted revenue, selecting moments to capitalize on market strength.

Q: Thoughts on capital returns pace, dividend and repurchases.

A: Angeliki Frangou said Navios is deliberate in capital return strategy, executing on modernization and leverage targets while being cautious in the market.