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Navios Maritime Partners L.P. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2023

  • Revenue:
    • $323.2 million for Q3 2023
    • $979.6 million for 9M 2023
  • Net Income:
    • $  89.8 million for Q3 2023
    • $301.3 million for 9M 2023
  • Earnings per common unit:
    • $2.92 for Q3 2023
    • $9.78 for 9M 2023
  • Net cash from operating activities:
    • $120.3 million for Q3 2023
    • $348.6 million for 9M 2023
  • EBITDA:
    • $180.8 million for Q3 2023
    • $571.3 million for 9M 2023
  • $255.2 million gross sale proceeds from sale of 14 vessels YTD
    • $242.2 million completed in 9M 2023
    • $  13.0 million completed in Q4 2023
  • $0.05 per unit cash distribution for Q3 2023

/EIN News/ -- MONACO, Nov. 02, 2023 (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, 2023.

Angeliki Frangou, Chairwoman and Chief Executive Officer of Navios Partners stated, “I am pleased with the results for the third quarter of 2023, in which we reported revenue of $323.2 million and net income of $89.8 million. We are also pleased to report earnings per common unit of $2.92 for the quarter.”

Angeliki Frangou continued, “The United States and Euro zone economies are generally healthy. However, the wars in Ukraine and Israel coupled with inflation and a transition in the interest rate environment have contributed to making this one of the most dangerous times in memory. Despite these factors, the shipping market is healthy, and Navios has performed well. We continue to focus on things that we can control, such as reducing leverage, being eco-friendly through modern, energy efficient vessels and expanding into areas that will promote our long-term prospects, such as the recent tanker deals we entered into with various oil majors.”

Fleet update

  Sales YTD

      $255.2 million gross sale proceeds from sale of 14 vessels YTD

          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 one vessel for $13.0 million in Q4 2023

On September 22, 2023, Navios Partners agreed to sell a 2004-built Capesize vessel of 180,310 dwt, to an unrelated third party, for gross sale proceeds of $13.0 million. The sale was completed on October 12, 2023.

  Acquisitions YTD

      Acquisition of four 115,000 dwt newbuilding scrubber-fitted Aframax/LR2 tankers

During the third quarter of 2023, Navios Partners agreed to acquire four 115,000 dwt newbuilding scrubber-fitted Aframax/LR2 tankers, from an unrelated third party, for a purchase price of $61.25 million each (plus $3.3 million per vessel in additional features). The vessels have been designed with the latest technology optimizing efficiency and will carry both crude and clean products. The vessels are expected to be delivered into Navios Partners’ fleet during 2026.

      Acquisition of four newbuilding MR2 product tankers

During the first nine months of 2023, Navios Partners agreed to acquire four newbuilding Japanese MR2 product tankers from unrelated third parties, 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 aggregate implied price of approximately $163.4 million 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.

      Acquisition of one Kamsarmax

In August 2023, Navios Partners agreed to acquire from an unrelated third party a 2019-built Kamsarmax of 81,692 dwt (previously chartered-in) for a purchase price of $28.0 million. The acquisition was completed in October 2023.

  $257.9 million contracted revenue agreed in Q3 2023; $3.3 billion total contracted revenue

Navios Partners entered into new long-term charters which are expected to generate revenue of $257.9 million.

      •  Two Aframax/LR2 newbuilding tankers, expected to be delivered in 2026, have been chartered-out for a period of five years, at a rate of $27,788 net per day.   
      •  Three MR product tankers have been chartered-out for an average period of three years, at an average rate of $21,451 net per day.   
      One Ultra-Handymax has been chartered-out for a period of five years, at a rate of $25,800 net per day.
      Three 4,250 TEU containerships have been chartered-out for an average period of 1.9 years, at an average rate of $18,299 net per day.

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

  •  Transshipment business

In October 2023, Navios Partners agreed to charter-out the Navios Vega, following her modification to ship-to-ship transhipper vessel, to Navios South American Logistics Inc. for a period of five years at a rate of $25,800 net per day. This transaction was negotiated with, and unanimously approved by, the conflicts committee of Navios Partners.

  Charters update

      $52.5 million prepayment of charter hire for two containerships

In October 2023, Navios Partners agreed to terminate the charter parties of the Protostar N, a 2007-built 2,741 TEU containership, and the Navios Spring, a 2007-built 3,450 TEU containership, with a minimum charter period until October 2025 and April 2025, respectively, against a prepayment of $52.5 million. Navios Partners agreed to assume the current sub-charter agreements of the Protostar N and the Navios Spring at $11,700 net per day for a minimum charter period until August 2025 and at $19,744 net per day for a minimum charter period until March 2024, respectively. A mitigation rate of $4,000 per day was applied for each containership for the period after the end of the sublease agreements.

      Charter amendment and extension for two containerships

During the third quarter of 2023, Navios Partners agreed to amend and extend the existing charter parties of: (i) the Navios Jasmine, a 2008-built 4,730 TEU containership, chartered-out at $60,000 net per day with a minimum charter period until December 2024; and (ii) the Navios Bahamas, a 2010-built 4,360 TEU containership, chartered-out at $60,000 net per day with a minimum charter period until January 2025. Following this amendment, Navios Partners agreed to charter-out:

          The Navios Jasmine at $48,000 net per day from August 2023 to March 2025 and at $22,500 net per day from March 2025 to May 2027.
          The Navios Bahamas at $48,000 net per day from August 2023 to April 2025 and at $22,500 net per day from April 2025 to June 2027.
             

Financing update

In September 2023, Navios Partners refinanced the sale and leaseback agreements of four product tanker vessels in order to: (i) replace Libor plus 305 bps per annum with Term Secured Overnight Financing Rate (“Term SOFR”) plus 190 bps per annum; and (ii) extend the maturity for five years.

In August 2023, Navios Partners refinanced the sale and leaseback agreements of two 10,000 TEU containerships in order to replace Libor plus 310 bps per annum with Term SOFR plus 225 bps per annum.

Cash distribution

The Board of Directors of Navios Partners declared a cash distribution for the third quarter of 2023 of $0.05 per unit. The cash distribution will be paid on November 13, 2023 to unitholders of record as of November 7, 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 80 dry bulk vessels, 47 containerships and 53 tanker vessels, including 16 newbuilding tanker vessels (ten Aframax/LR2 and six 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 containerships and two 7,700 TEU containerships), 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 1.9 years. Navios Partners has currently fixed 83.4% and 49.0% of its available days for the fourth quarter of 2023 and for 2024, respectively. Navios Partners expects to generate contracted revenue of $272.5 million and $765.3 million for the fourth quarter of 2023 and for 2024, respectively. The average expected daily charter-out rate for the fleet is $23,610 and $27,284 for the fourth quarter of 2023 and for 2024, 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, 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
  Nine Month
Period Ended

  Nine Month
Period Ended

 
  September 30,
2023
  September 30,
2022
  September 30,
2023

  September 30,
2022

 
(in $‘000 except per unit data) (unaudited)   (unaudited)   (unaudited)
  (unaudited)
 
Revenue $ 323,176   $ 322,387   $ 979,636   $ 839,665  
Net Income $ 89,781   $ 257,164   $ 301,254   $ 460,989  
Adjusted Net Income $ 82,611 (1) $ 113,400 (2) $ 250,483 (3) $ 317,225 (2)
Net cash provided by operating activities $ 120,270   $ 219,108   $ 348,613   $ 366,271  
EBITDA $ 180,838   $ 321,433   $ 571,275   $ 611,028  
Adjusted EBITDA $ 173,668 (1) $ 177,669 (2) $ 520,504 (3) $ 467,264 (2)
Earnings per Common Unit basic $ 2.92   $ 8.36   $ 9.78   $ 14.98  
Earnings per Common Unit diluted $ 2.91   $ 8.35   $ 9.78   $ 14.97  
Adjusted Earnings per Common Unit basic $ 2.68 (1) $ 3.69 (2) $ 8.13 (3) $ 10.31 (2)
Adjusted Earnings per Common Unit diluted $ 2.68 (1) $ 3.68 (2) $ 8.13 (3) $ 10.30 (2)

(1) 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 gain related to the sale of two of our vessels.

(2) Adjusted Net Income, Adjusted EBITDA and Adjusted Earnings per Common Unit basic and diluted for the three and nine month periods ended September 30, 2022 have been adjusted to exclude a $143.8 million gain related to the sale of two of our vessels in the third quarter of 2022.

(3) 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 gain related to the sale of 14 of our vessels.

Three month periods ended September 30, 2023 and 2022

Time charter and voyage revenues for the three month period ended September 30, 2023 slightly increased by $0.8 million, or 0.2%, to $323.2 million, as compared to $322.4 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 Time Charter Equivalent (“TCE”) rate. For the three month periods ended September 30, 2023 and September 30, 2022, time charter and voyage revenues were affected by $9.7 million and $13.6 million, respectively, relating to the straight line effect of the containership and tanker charters with de-escalating rates. The TCE rate decreased by 7.3% to $22,052 per day, as compared to $23,781 per day for the same period in 2022. The available days of the fleet increased by 6.7% to 13,759 days for the three month period ended September 30, 2023, as compared to 12,897 days for the same period in 2022 mainly due to the acquisition of the 36-vessel dry bulk fleet from Navios Maritime Holdings Inc. (“Navios Holdings”) and the deliveries of newbuilding and secondhand vessels, partially mitigated by the sale of vessels.

EBITDA of Navios Partners for the three month periods ended September 30, 2023 and 2022 was affected by the items described in the table above. Excluding these items, Adjusted EBITDA decreased by $4.0 million to $173.7 million for the three month period ended September 30, 2023, as compared to $177.7 million for the same period in 2022. The decrease in Adjusted EBITDA was primarily due to a: (i) $4.5 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 the third quarter of 2023; (ii) $4.0 million increase in vessel operating expenses in accordance with our management agreements, mainly due to the expansion of our fleet; and (iii) $3.9 million increase in general and administrative expenses mainly due to the expansion of our fleet in accordance with our administrative services agreement, partially mitigated by a: (i) $4.1 million decrease in other expenses, net; (ii) $3.5 million decrease in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); and (iii) $0.8 million increase in time charter and voyage revenues.

Net Income for the three month periods ended September 30, 2023 and 2022 was affected by the items described in the table above. Excluding these items, Adjusted Net Income decreased by $30.8 million to $82.6 million for the three month period ended September 30, 2023, as compared to $113.4 million for the same period in 2022. The decrease in Adjusted Net Income was primarily due to a: (i) $20.5 million negative impact from the depreciation and amortization, mainly due to a $21.3 million decrease in the amortization of the unfavorable lease terms and a $4.0 million increase in amortization of deferred drydock, special survey costs and other capitalized items that were partially mitigated by a $4.8 million decrease in depreciation and amortization expense; (ii) $9.5 million increase in interest expense and finance cost, net; and (iii) $4.0 million decrease in Adjusted EBITDA, partially mitigated by a $3.2 million increase in interest income.

Nine month periods ended September 30, 2023 and 2022

Time charter and voyage revenues for the nine month period ended September 30, 2023 increased by $139.9 million, or 16.7%, to $979.6 million, as compared to $839.7 million for the same period in 2022. The increase in revenue was mainly attributable to the increase in the available days of our fleet. For the nine month periods ended September 30, 2023 and September 30, 2022, time charter and voyage revenues were affected by $30.2 million and $30.1 million, respectively, relating to the straight line effect of the containership and tanker charters with de-escalating rates. The TCE rate decreased by 2.1% to $22,242 per day, as compared to $22,717 per day for the same period in 2022. The available days of the fleet increased by 16.5% to 41,239 days for the nine month period ended September 30, 2023, as compared to 35,394 days for the same period in 2022, mainly due to the acquisition of the 36-vessel dry bulk fleet from Navios Holdings and the deliveries of newbuilding and secondhand vessels, partially mitigated by the sale of vessels.

EBITDA of Navios Partners for the nine month periods ended September 30, 2023 and 2022 was affected by the items described in the table above. Excluding these items, Adjusted EBITDA increased by $53.2 million to $520.5 million for the nine month period ended September 30, 2023, as compared to $467.3 million for the same period in 2022. The increase in Adjusted EBITDA was primarily due to a: (i) $139.9 million increase in time charter and voyage revenues; and (ii) $1.3 million decrease in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items), that were partially mitigated by a: (i) $47.3 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 the first nine months of 2023 and bareboat and charter-in hire expense of the tanker and dry bulk fleet; (ii) $22.5 million increase in vessel operating expenses in accordance with our management agreements, mainly due to the expansion of our fleet; (iii) $15.9 million increase in general and administrative expenses mainly due to the expansion of our fleet in accordance with our administrative services agreement; and (iv) $2.3 million increase in other expenses, net.

Net Income for the nine month periods ended September 30, 2023 and 2022 was affected by the items described in the table above. Excluding these items, Adjusted Net Income decreased by $66.7 million to $250.5 million for the nine month period ended September 30, 2023, as compared to $317.2 million for the same period in 2022. The decrease in Adjusted Net Income was primarily due to a: (i) $76.5 million negative impact from the depreciation and amortization, mainly due to a $47.8 million decrease in the amortization of the unfavorable lease terms, a $19.0 million increase in depreciation and amortization expense and a $9.7 million increase in amortization of deferred drydock, special survey costs and other capitalized items; and (ii) $50.7 million increase in interest expense and finance cost, net, partially mitigated by a: (i) $53.2 million increase in Adjusted EBITDA; and (ii) $7.3 million increase in interest income.

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, 2023 and 2022.         

  Three Month
Period Ended

September 30,
2023
  Three Month
Period Ended
September 30,
2022
  Nine Month
Period Ended
September 30,
2023
  Nine Month
Period Ended
September 30,
2022
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
Available Days(1)   13,759       12,897       41,239       35,394  
Operating Days(2)   13,646       12,785       40,869       35,008  
Fleet Utilization(3)   99.2 %     99.1 %     99.1 %     98.9 %
TCE rate Combined (per day)(4) $ 22,052     $ 23,781     $ 22,242     $ 22,717  
TCE rate Drybulk (per day)(4) $ 14,139     $ 20,061     $ 13,613     $ 21,381  
TCE rate Containers (per day)(4) $ 34,350     $ 32,600     $ 34,930     $ 30,486  
TCE rate Tankers (per day)(4) $ 27,688     $ 21,828     $ 29,014     $ 17,834  
Vessels operating at period end   153       166       153       166  


(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, dry dockings 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, dry dockings 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 currently applicable fixed vessel operating expenses) 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 Thursday, November 2, 2023 to discuss the results for the third quarter and nine months ended September 30, 2023.

Call Date/Time: Thursday, November 2, 2023 at 8:30 am ET
Call Title: Navios Partners Q3 2023 Financial Results Conference Call 
US Dial In: +1.800.225.9448
International Dial In: +1.203.518.9708
Conference ID: NMMQ323

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: +1.800.934.4577
International Replay Dial In: +1.402.220.1177

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 drybulk, containerships and tanker vessels in particular, fluctuations in charter rates for drybulk, 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 except unit data)
    September 30,
2023
(unaudited)
  December 31,
2022
(unaudited)
ASSETS            
Cash and cash equivalents, including restricted cash   $ 269,173   $ 175,098
Other current assets     114,033     135,326
Vessels, net     3,700,455     3,777,329
Other non-current assets     972,207     807,951
Total assets   $ 5,055,868   $ 4,895,704
             
LIABILITIES AND PARTNERS’ CAPITAL            
Other current liabilities   $ 141,300   $ 226,645
Total borrowings, net (including current and non-current)     1,931,055     1,945,447
Other non-current liabilities     343,913     380,649
Total partners’ capital     2,639,600     2,342,963
Total liabilities and partners’ capital   $ 5,055,868   $ 4,895,704

        

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
  Nine Month
Period Ended
  Nine Month
Period Ended
    September 30,
2023
September 30,
2022
  September 30,
2023
  September  30,
2022
    (unaudited)   (unaudited)   (unaudited)   (unaudited)
Time charter and voyage revenues   $ 323,176     $ 322,387     $ 979,636     $ 839,665  
Time charter and voyage expenses     (39,877 )     (35,439 )     (121,596 )     (74,300 )
Direct vessel expenses     (15,941 )     (15,398 )     (48,145 )     (39,511 )
Vessel operating expenses     (82,856 )     (78,928 )     (248,622 )     (226,089 )
General and administrative expenses     (19,524 )     (15,597 )     (59,559 )     (43,683 )
Depreciation and amortization of intangible assets     (54,513 )     (59,270 )     (162,768 )     (143,820 )
Amortization of unfavorable lease terms     3,521       24,779       16,431       64,205  
Gain on sale of vessels, net     7,170       143,764       50,771       143,764  
Interest expense and finance cost, net     (31,849 )     (22,270 )     (100,703 )     (50,019 )
Interest income     3,314       74       7,414       98  
Other expense, net     (2,840 )     (6,938 )     (11,605 )     (9,321 )
Net income   $ 89,781     $ 257,164     $ 301,254     $ 460,989  


Earnings per unit:
 
    Three Month
Period Ended
    Three Month
Period Ended
  Nine Month
Period Ended
  Nine Month
Period Ended
    September 30,
2023
    September 30,
2022
  September 30,
2023
  September 30,
2022
    (unaudited)     (unaudited)   (unaudited)   (unaudited)
Earnings per unit:                                
Earnings per common unit, basic   $ 2.92     $ 8.36     $ 9.78     $ 14.98  
Earnings per common unit, diluted   $ 2.91     $ 8.35     $ 9.78     $ 14.97  


NAVIOS MARITIME PARTNERS L.P.
Other Financial Information
(Expressed in thousands of U.S. Dollars except unit data)
           
    Nine Month Period
Ended

September 30,
2023
    Nine Month Period
Ended

September 30,
2022
(in thousands of U.S. dollars)   (unaudited)     (unaudited)
Net cash provided by operating activities   $ 348,613       $ 366,271  
Net cash used in investing activities   $ (72,423 )     $ (265,710 )
Net cash used in financing activities   $ (182,115 )     $ (159,687 )
Increase/(decrease) in cash, cash equivalents and restricted cash   $ 94,075       $ (59,126 )

EXHIBIT 2

Owned Drybulk Vessels   Type   Built   Capacity
(DWT)
Navios Christine B   Ultra-Handymax   2009   58,058
Navios Celestial   Ultra-Handymax   2009   58,063
Navios Vega   Ultra-Handymax   2009   58,792
Navios La Paix   Ultra-Handymax   2014   61,485
Navios Hyperion   Panamax   2004   75,707
Navios Orbiter   Panamax   2004   76,602
Navios Hope   Panamax   2005   75,397
Navios Taurus   Panamax   2005   76,596
Navios Sun   Panamax   2005   76,619
Navios Asteriks   Panamax   2005   76,801
Navios Helios   Panamax   2005   77,075
Navios Apollon I   Panamax   2005   87,052
N Amalthia   Panamax   2006   75,318
Navios Sagittarius   Panamax   2006   75,756
Navios Galileo   Panamax   2006   76,596
N Bonanza   Panamax   2006   76,596
Navios Harmony   Panamax   2006   82,790
Copernicus N   Panamax   2010   93,062
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 Victory   Panamax   2014   77,095
Navios Sphera   Panamax   2016   84,872
Navios Sky   Panamax   2015   82,056
Navios Uranus   Panamax   2019   81,821
Navios Herakles I   Panamax   2019   82,036
Navios Galaxy II   Panamax   2020   81,789
Navios Felicity I   Panamax   2020   81,962
Navios Magellan II   Panamax   2020   82,037
Navios Alegria   Panamax   2016   84,852
Navios Meridian   Panamax   2023   82,010
Navios Primavera   Panamax   2022   82,003
Navios Horizon I   Panamax   2019   81,692
Navios Fantastiks   Capesize   2005   180,265
Navios Stellar   Capesize   2009   169,001
Navios Aurora II   Capesize   2009   169,031
Navios Happiness   Capesize   2009   180,022
Navios Bonavis   Capesize   2009   180,022
Navios Phoenix   Capesize   2009   180,242
Navios Sol   Capesize   2009   180,274
Navios Lumen   Capesize   2009   180,661
Navios Pollux   Capesize   2009   180,727
Navios Antares   Capesize   2010   169,059
Navios Symphony   Capesize   2010   178,132
Navios Melodia   Capesize   2010   179,132
Navios Luz   Capesize   2010   179,144
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 Ace   Capesize   2011   179,016
Navios Altamira   Capesize   2011   179,165
Navios Azimuth   Capesize   2011   179,169
Navios Koyo   Capesize   2011   181,415
Navios Ray   Capesize   2012   179,515
Navios Joy   Capesize   2013   181,389
Navios Gem   Capesize   2014   181,336
Navios Canary   Capesize   2015   180,528
Navios Corali   Capesize   2015   181,249
Navios Mars   Capesize   2016   181,259
Navios Armonia   Capesize   2022   182,079
Navios Azalea   Capesize   2022   182,064
Navios Astra   Capesize   2022   182,392
Navios Felix   Capesize   2016   181,221
Navios Altair   Capesize   2023   182,115
Navios Sakura   Capesize   2023   182,169
Navios Amethyst   Capesize   2023   182,212


Owned Containerships   Type   Built   Capacity
(TEU)
Navios Summer   Containership   2006   3,450
Navios Verano   Containership   2006   3,450
Hyundai Hongkong   Containership   2006   6,800
Hyundai Singapore   Containership   2006   6,800
Hyundai Busan   Containership   2006   6,800
Hyundai Shanghai   Containership   2006   6,800
Hyundai Tokyo   Containership   2006   6,800
Protostar N   Containership   2007   2,741
Navios Spring   Containership   2007   3,450
Matson Lanai   Containership   2007   4,250
Navios Indigo   Containership   2007   4,250
Navios Vermilion   Containership   2007   4,250
Navios Verde   Containership   2007   4,250
Navios Amarillo   Containership   2007   4,250
Navios Azure   Containership   2007   4,250
Navios Domino   Containership   2008   4,250
Navios Delight   Containership   2008   4,250
Navios Magnolia   Containership   2008   4,730
Navios Jasmine   Containership   2008   4,730
Navios Chrysalis   Containership   2008   4,730
Navios Nerine   Containership   2008   4,730
Spectrum N   Containership   2009   2,546
Navios Devotion   Containership   2009   4,250
Navios Destiny   Containership   2009   4,250
Navios Lapis   Containership   2009   4,250
Navios Tempo   Containership   2009   4,250
Navios Miami   Containership   2009   4,563
Navios Dorado   Containership   2010   4,250
Zim Baltimore   Containership   2010   4,360
Navios Bahamas   Containership   2010   4,360
Zim Carmel   Containership   2010   4,360
Navios Unison   Containership   2010   10,000
Navios Constellation   Containership   2011   10,000
Fleur N   Containership   2012   2,782
Ete N   Containership   2012   2,782


Owned Tanker Vessels   Type   Built   Capacity
(DWT)
Hector N   MR1 Product Tanker   2008   38,402
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
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 Bellatrix   MR2 Product Tanker   2013   49,999
Nave Orion   MR2 Product Tanker   2013   49,999
Nave Titan   MR2 Product Tanker   2013   49,999
Bougainville   MR2 Product Tanker   2013   50,626
Nave Pyxis   MR2 Product Tanker   2014   49,998
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 Ariadne   LR1 Product Tanker   2007   74,671
Nave Cielo   LR1 Product Tanker   2007   74,671
Nave Andromeda   LR1 Product Tanker   2011   75,000
Nave Cetus   LR1 Product Tanker   2012   74,581
Nave Cassiopeia   LR1 Product Tanker   2012   74,711
Nave Estella   LR1 Product Tanker   2012   75,000
Nave Rigel   LR1 Product Tanker   2013   74,673
Nave Atropos   LR1 Product Tanker   2013   74,695
Nave Galactic   VLCC   2009   297,168
Nave Spherical   VLCC   2009   297,188
Nave Constellation   VLCC   2010   296,988
Nave Quasar   VLCC   2010   297,376
Nave Synergy   VLCC   2010   299,973
Nave Universe   VLCC   2011   297,066
Nave Buena Suerte   VLCC   2011   297,491


Bareboat-in vessels   Type   Built   Capacity
(DWT)
  Purchase Option
Navios Libra   Panamax   2019   82,011   Yes
Navios Star   Panamax   2021   81,994   Yes
Navios Amitie   Panamax   2021   82,002   Yes
Baghdad   VLCC   2020   313,433   Yes
Nave Electron   VLCC   2021   313,239   Yes
Erbil   VLCC   2021   313,486   Yes
Nave Celeste   VLCC   2022   313,418   Yes


Newbuldings to be delivered   Type   Expected
Delivery Date
  Capacity
DWT / (TEU)
TBN I   Containership   Q4 2023   5,300
TBN II   Containership   Q4 2023   5,300
TBN VII   Containership   H1 2024   5,300
TBN VIII   Containership   H1 2024   5,300
TBN III   Containership   H1 2024   5,300
TBN IV   Containership   H1 2024   5,300
TBN V   Containership   H2 2024   5,300
TBN IX   Containership   H2 2024   5,300
TBN X   Containership   H2 2024   5,300
TBN VI   Containership   H2 2024   5,300
TBN XVII   Containership   H2 2024   7,700
TBN XVIII   Containership   H1 2025   7,700
TBN XI   Aframax/LR2   H1 2024   115,000
TBN XII   Aframax/LR2   H2 2024   115,000
TBN XIII   Aframax/LR2   H2 2024   115,000
TBN XIV   Aframax/LR2   H2 2024   115,000
TBN XV   Aframax/LR2   H1 2025   115,000
TBN XVI   Aframax/LR2   H1 2025   115,000
TBN XXV   Aframax/LR2   H1 2026   115,000
TBN XXVI   Aframax/LR2   H1 2026   115,000
TBN XXVII   Aframax/LR2   H2 2026   115,000
TBN XXVIII   Aframax/LR2   H2 2026   115,000
TBN XIX   MR2 Product Tanker   H2 2025   52,000
TBN XX   MR2 Product Tanker   H1 2026   52,000
TBN XXI   MR2 Product Tanker   H2 2026   52,000
TBN XXII   MR2 Product Tanker   H1 2027   52,000
TBN XXIII   MR2 Product Tanker   H1 2027   52,000
TBN XXIV   MR2 Product Tanker   H1 2027   52,000


Chartered-in vessels (with purchase options)   Type   Year Built   Capacity
(DWT)
  Purchase Option
Navios Lyra   Handysize   2012   34,718   Yes  
Navios Venus   Ultra-Handymax   2015   61,339   Yes  
Navios Amber   Panamax   2015   80,994   Yes  
Navios Coral   Panamax   2016   84,904   Yes  
Navios Citrine   Panamax   2017   81,626   Yes  
Navios Dolphin   Panamax   2017   81,630   Yes  
Navios Gemini   Panamax   2018   81,704   No  (1)

(1) Purchase option in the form of the right of first refusal and profit share on sale of vessel.

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 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
  Nine Month
Period Ended
  Nine Month
Period Ended
    September 30, 2023   September 30, 2022   September 30, 2023   September 30, 2022
    ($ ‘000)   ($ ‘000)   ($ ‘000)   ($ ‘000)
    (unaudited)   (unaudited)   (unaudited)   (unaudited)
Net cash provided by operating activities   $ 120,270     $ 219,108     $ 348,613     $ 366,271  
Net increase in operating assets     32,481       14,948       22,288       103,465  
Net decrease/ (increase) in operating liabilities     12,605       (62,898 )     114,551       (10,918 )
Net interest cost     28,535       22,197       93,289       49,921  
Amortization and write-off of deferred finance costs and discount     (1,625 )     (1,251 )     (5,243 )     (3,928 )
Amortization of operating lease assets/ liabilities     (2,623 )     (1,719 )     (7,769 )     (1,297 )
Non-cash amortization of deferred revenue and straight line     (15,974 )     (12,676 )     (45,222 )     (36,128 )
Stock-based compensation     (1 )     (40 )     (3 )     (122 )
Gain on sale of vessels, net     7,170       143,764       50,771       143,764  
EBITDA   $ 180,838     $ 321,433     $ 571,275     $ 611,028  
Gain on sale of vessels, net     (7,170 )     (143,764 )     (50,771 )     (143,764 )
Adjusted EBITDA   $ 173,668     $ 177,669     $ 520,504     $ 467,264  


    Three Month
Period Ended
  Three Month
Period Ended
  Nine Month
Period Ended
  Nine Month
Period Ended
    September 30, 2023   September 30, 2022   September 30, 2023   September 30, 2022
    (unaudited)   (unaudited)   (unaudited)   (unaudited)
Net cash provided by operating activities   $ 120,270     $ 219,108     $ 348,613     $ 366,271  
Net cash used in investing activities   $ (104,088 )   $ (203,850 )   $ (72,423 )   $ (265,710 )
Net cash used in financing activities   $ (17,061 )   $ (79,562 )   $ (182,115 )   $ (159,687 )

 


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