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