Navios Maritime Partners Lp · NYSE:NMM
Navios Maritime Partners Lp — Q1 2020 Earnings Presentation
36 slides from Navios Maritime Partners Lp's earnings presentation, May 13, 2020
Slide 1: Q1 2020 Earnings Presentation
Q1 2020 Earnings Presentation May 6, 2020
Slide 2: Forward-Looking Statements and Definitions
Forward-Looking Statements and Definitions This presentation contains 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 and expectations, including with respect
Slide 3: Navios Universe
Navios Universe Navios Maritime Acquisition Premier Ship Owner Corporation ■ ~200 vessels controlled (NYSE: NNA) 46 vessels (1) - 31 Navios ■ Economies of scale Navios Maritime product tankers, 13 VLCCs, 2 chemical Maritime ■ Global brand Partners L.P. tankers Holdings Inc. ■ Value creation through
Slide 4: Company Highlights
Company Highlights 46-vessel fleet Modern & 13 VLCC, 10 LR1, 18 MR2, 3 MR1 and 2 Chemical Tankers Diverse Tanker Fleet Average age = ten years Navios Europe I – Five Vessels added to NNA’s Fleet in December 2019 Maritime Investments Navios Europe II - 14 vessel fleet – To be liquidated in
Slide 5: Fragile Oil Market
Fragile Oil Market Perfect storm of increased supply… Russia and Saudi Arabia cannot agree production cuts Saudi Arabia announces it will flood oil market Russia held firm (until it didn’t) …with reduced demand Pandemic: Global shutdown 70% of oil used for transportation April demand dro
Slide 6: Contango Drives Floating Storage and Charter Rates
Number Of Vessels 0 20 40 60 80 100 120 05-Jan-2018 25-Jan-2018 14-Feb-2018 Source: Clarksons, 06-Mar-2018 26-Mar-2018 15-Apr-2018 05-May-2018 25-May-2018 (1) Bloomberg as of May 4th 14-Jun-2018 04-Jul-2018 24-Jul-2018 13-Aug-2018 02-Sep-2018 22-Sep-2018 12-Oct-2018 01-Nov-2018 21-Nov-2018 11-Dec-20
Slide 7: Key Developments
Key Developments EBITDA 36% increase in Q1 2020 Adjusted EBITDA to $56.2 million from $41.2 million in Q1 2019; Rates achieved: VLCC: $49,421 LR1 Product Tankers: $22,654 MR2 Product Tankers: $15,243 Chartering strategy: protecting downside while participating in upside 9M 2020: 11,917 available
Slide 8: Cost Structure
Cost Structure Contracted Revenue(1) (Average Daily Rate) Cost $19,578 $18,674 $3,881 70.5% $5,167 Fixed on base rate $1,014 excluding profit sharing $8,613 9M 2020 E 9M 2020 E Opex General & Administrative Expenses Interest Expense Capital Repayments (1) Contracted revenue excludes any potential pr
Slide 9: 9M Potential Cash Flow
9M Potential Cash Flow Oil price collapse drives inventories higher Contango in oil price increases floating storage; 12% of VLCCs in floating storage Iran sanctions - reduced crude shipments to almost zero since October 51.6% of available days with market exposure $76.8 million $27,114 $16,
Slide 10: NNA Liquidity
NNA Liquidity ($ million) March 31, 2020 Cash(1) 51.1 Debt (2) 1,161.5 Shareholders' Equity 310.4 Capitalization 1,471.9 Net Debt/Capitalization 75.4% Pro Forma Debt Maturities(3) 800 ($ million) $34.3 Senior 600 Secured Notes 400 $658.0 200 $67.9 $40.6 $47.9 $48.8 $10.1 $38.8 0 2020 2021 2022 2023
Slide 11: Fleet Update
if = N =i Maritime Acquisition Corporation
Slide 12: Fleet
Fleet 46 Vessels (5.7 million dwt) 13 Crude Tankers 31 Product Tankers 2 Chemical Tankers VLCC tankers 10 LR1 18 MR2 3 MR1 Chemical tankers Vessel Sizes in (280,000 – 320,000 dwt) (60,000 – (47,000 – (35,000 (25,000 dwt) NNA Fleet 85,000 52,000 – 45,000 dwt) dwt) dwt) Crude Oil, no heat
Slide 13: Chartering Strategy
Chartering Strategy 9M 2020 available days 48.3% on fixed rate 22.2% fixed with profit sharing arrangements ; 65.0% of VLCC days 12.8% fixed on floating rates 16.6% open (mainly Q4 2020) Protect the downside 70.5% of days on fixed rate 48.3% 9M 2020 11,917 22.2% 16.6% 12.8% Available Days Pa
Slide 14: VLCC Charters - Protect Downside While Participating in Upside
VLCC Charters - Protect Downside While Participating in Upside Average fixed net charter rate: $27,258(1) Market Rates $20,000 $40,000+ NNA upside(2) 83% 55% Average fixed net charter Vessel Charter rate(3) rate: $27,258(1) NAVE SPHERICAL 100% index 1 VLCC on 100% index NAVE CONSTELLATION $18,170 fl
Slide 15: Recent Fleet Developments
Recent Fleet Developments Nave Atropos LR1 product tanker chartered out for one year – Charter rate = $29,625 net per day – Expected EBITDA = $7.7 million(1) Nave Cielo LR1 product tanker chartered out for one year – Charter rate = $28,875 net per day – Expected EBITDA = $7.5 million(1) Nave Sextans
Slide 16: Fleet Employment
Fleet Employment Star N (MR1) $13,894 Perseus N (MR1) $11,356 Hector N (MR1) $14,813 Nave Equator (MR2) $16,250 Nave Equinox (MR2) $15,800 Nave Pulsar (MR2) $15,600 Nave Dorado (MR2) $13,331 + PS Nave Aquila (MR2) $15,899 Nave Atria (MR2) $14,813 Nave Bellatrix (MR2) $16,047 Nave Orion (MR2) $15,159
Slide 17: Crude Market Overview
=N= Navios Maritime Acquisition Corporation Crude Market Overview 17
Slide 18: Global Oil Demand: Pause for the Pandemic
Global Oil Demand: Pause for the Pandemic Global oil demand is driven by GDP In April, the IMF projected global GDP contraction of 3.0% for 2020, lead by a 6.1% contraction in advanced economies and including a 1.0% expansion in China, India and other developing Asian economies IMF projects 5.
Slide 19: Oil Demand Falls; Inventories and Floating Storage Increase
Oil Demand Falls; Inventories and Floating Storage Increase Massive implied stock build in 1H20, stock draws thereafter 12.0% of the VLCC fleet currently on floating storage Oil Supply / Demand Balance* and Implied Stock VLCCs on Floating Storage Changes per Quarter Mb/d Mb/d 120 98 100 80 60 39
Slide 20: Increasing Chinese Consumption Still Below World Average
Increasing Chinese Consumption Still Below World Average Chinese Crude Oil Imports (2009 – 2020) China Energy Now World’s per Capita Largest by Region as a Crude Importer Proportion of the US 12 12 Chinese imports: 2H18 – 9.4 MBPD 11% CAGR Jan ‘09 to Mar ‘20 2H19 –10.4 MBPD 10 10 35 mbpd 8 8 30 Barr
Slide 21: Atlantic Production to Serve Refinery Additions in the East
Atlantic Production to Serve Refinery Additions in the East US crude oil production hit highs in February and March 2020 of 13 mb/d but declined in April due to the collapse in oil prices. As demand for oil picks up in the future, US is expected to continue to export crude Asian countries depend
Slide 22: VLCC Net Fleet, Age Profile + Historical Scrapping
VLCC Net Fleet, Age Profile + Historical Scrapping Deliveries Removals Net Fleet Growth % Non- Fleet Period Year Actual Projected Year DWT % of Fleet Year DWT % of Fleet Delivery End 2020 Apr 4.9 M 5.2 M 6% 2020 0.6 M 0.2% 2020 4.3 M 1.7% 252.3 M 2019 21.1 M 22.9 M 8% 2019 1.8 M 0.8% 2019* 19.6 M 8.
Slide 23: Product Market Overview
=N= Navios Maritime Acquisition Corporation Product Market Overview 23
Slide 24: Refinery Capacity Shifting to Asia and Middle East
Refinery Capacity Shifting to Asia and Middle East According to the IEA, refinery capacity is expected to increase by 14.0 million barrels per day (MBPD) for the period 2020-2025; about 77% of that capacity will be added in the broader Asia and Middle East regions For the same period the IEA exp
Slide 25: US Role in the Energy Marketplace
US Role in the Energy Marketplace Average US domestic crude production increased 7.6 MBPD since end 2008 reaching a record 12.9 MBPD in Nov 2019 ‒ Product exports have increased with crude production US Crude production increases along with refinery expansions in US Gulf have lead to product exp
Slide 26: Refinery Maintenance – Increases While Demand Recovers
Refinery Maintenance – Increases While Demand Recovers Refinery Maintenance (Capacity offline) 10 9 Million Barrels Per Day 8 7 6 5 4 3 2 1 0 J F M A M J J A S O N D 2014- 2018 Daily Average 2019 2020 2020 Forecast An average of 8.7 million barrels per day (MBPD) of refining capacity is forecast t
Slide 27: Product Tanker Net Fleet and Removals
Product Tanker Net Fleet and Removals (1) Deliveries Removals Net Fleet Growth % non- Fleet period Year Actual Projected Year DWT % of fleet Year DWT % of Fleet delivery end 2020 Mar 1.7 M 2.3 M 25% 2020* 0.4 M 0.2% 2020* 1.3 M 0.8% 168.4 M 2019 8.4 M 10.5 M 21% 2019 1.2 M 0.7% 2019 7.2 M 4.5% 167.1
Slide 28: Q1 2020 Financial Results
=N= Navios Maritime Acquisition Corporation Q1 2020 Financial Results
Slide 29: First Quarter 2020 Earnings Highlights
First Quarter 2020 Earnings Highlights Three month period Three month period YoY ($ million except per share data) ended March 31, 2020 ended March 31, 2019 (%) Revenue 97.9 77.1 26.9% EBITDA 42.2 41.7 1.2% Adjusted EBITDA 56.2(1) 41.2(2) 36.3% Net Earnings 0.9 0.9 - Adjusted Net Earnings 14.9(1) 0.
Slide 30: Balance Sheet Highlights
Balance Sheet Highlights Selected Balance Sheet Data (in million USD) March 31, 2020 December 31, 2019 Cash & cash equivalents (1) 51.1 44.1 Vessels, net 1,334.1 1,348.3 Total Assets 1.524.2 1,556.0 Total debt (2) 1,161.5 1,173.1 Stockholders Equity 310.4 313.9 Total Liabilities and Shareholders Equ
Slide 31: Returning Capital to Shareholders
Returning Capital to Shareholders Dividend Policy Q1 2020 Distribution: $0.30 per share – Record date: June 3, 2020 – Payment date: July 9, 2020 31
Slide 32: Appendix
t = N =i Maritime Acquisition Corporation Appendix 32
Slide 33: Fleet – VLCCs
Fleet – VLCCs Net Charter Rate Expiration Profit Share Vessel Type DWT Year Built ($/day) Date Arrangements Nave Photon VLCC 297,395 2008 $47,906 + PS(1) Jul-21 As per footnote Nave Spherical VLCC 297,188 2009 Floating(2) Dec-22 Nave Synergy VLCC 299,973 2010 $32,588 Apr-22 None Nave Quasar VLCC 297
Slide 34: Fleet – LR1 Product Tankers
Fleet – LR1 Product Tankers Year Net Charter Rate Expiration Profit Sharing Vessel Type DWT Built ($/day) Date Arrangements Nave Atropos LR1 Product Tanker 74,695 2013 29,625 May-21 Nave Rigel LR1 Product Tanker 74,673 2013 16,088(1) Jan-22 Nave Cetus LR1 Product Tanker 74,581 2012 16,088(1) Jan-22
Slide 35: Fleet – Chemical, MR1 and MR2 Product Tankers
Fleet – Chemical, MR1 and MR2 Product Tankers Year Net Charter Expiration Profit Sharing Vessel Type DWT Built Rate ($/day) Date Arrangement / Premium Nave Velocity MR2 Product Tanker 49,999 2015 16,047 Dec-20 Nave Sextans MR2 Product Tanker 49,999 2015 17,250(4) May-21 Nave Pyxis MR2 Product Tanker
Slide 36: www.navios-acquisition.com
www.navios-acquisition.com 36
Navios Maritime Partners — Q1 2020 Earnings Presentation on 6ix