Navios Maritime Partners Lp · NYSE:NMM
Navios Maritime Partners Lp — Q2 2023 Earnings Presentation
32 slides from Navios Maritime Partners Lp's earnings presentation, Aug 23, 2023
Slide 1: Second Quarter 2023 Earnings Presentation
DRAFT Navios Maritime Partners L.P. (NYSE:NMM) Second Quarter 2023 Earnings Presentation August 23, 2023 1 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements DRAFT This presentation 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’ e
Slide 3: Highlights
Highlights DRAFT Leading Financial Publicly Strength Listed Fleet Scale: $4.4 billion 175 vessels gross fleet value Diversification: $2.2 billion 3 segments net fleet equity 15+ asset classes Modern Fleet: $3.3 billion Average age = contracted revenue 9.8 years 3
Slide 4: Strength Through Diversification
Strength Through Diversification DRAFT Chartering strategy Optimizing generating consistent Profitability Cyclical opportunity Capturing allowing optimal Capital Allocation Segment specific volatility Countering creating Balance Sheet Strength A diversified platform provides stable entity-level retu
Slide 5: Fleet Snapshot – Vessels
Fleet Snapshot – 175 Vessels DRAFT 81 Dry Bulk Vessels 9.9 million dwt Average age (1): 10.4 years (industry average: 11.9 years) 36 Capesize Vessels 39 Panamax Vessels 6 Handymax - Handysize Vessels 6.5 million dwt 3.1 million dwt 0.3 million dwt 47 Containerships 235,414 TEU Average age (1): 10.8
Slide 6: Selected Segment Data
Selected Segment Data DRAFT Drybulk Container ✓ 1 Tankers Total Fleet ships ➢ # of Vessels 81 47 47 175 Fleet Size ➢ Average age (yrs) 10.4 10.8 8.3 9.8 ➢ Capacity 9.9 mdwt 235,414 TEU 5.7 mdwt ➢ Vessel value ($mm)(1) 1,851 841 1,685 4,377 ➢ Debt and bareboat liabilities 1,058 364 733 2,155 Asset an
Slide 7: Recent Developments
Recent Developments DRAFT H1 2023 Financial Results (1) In US$ millions Q2 2023 H1 2023 Revenue 346.9 656.5 EBITDA 201.6 390.4 Adjusted EBITDA 191.5 346.8 Net Income 112.3 211.5 Balance Sheet ▪ $270.1 million cash balance as of June 30, 2023 ($213.2 million as of March 31, 2023) ➢ Active management
Slide 8: Significant EBITDA Growth Since 2020
Significant EBITDA Growth Since 2020 DRAFT Significant EBITDA growth since the implementation of our diversified strategy ▪ Diversified strategy initiated in 2020 • Q1 2021: acquisition of a containership company (29 vessels) • Q3 2021: acquisition of a tanker company (45 vessels) • Q3 2022: acquisi
Slide 9: H2 2023: Operating Cash Flow
H2 2023: Operating Cash Flow DRAFT Significant cash flow potential Open / Index Available Vessel type days days H2 2023 ▪ H2 2023 – 28,015 available days, 71% fixed H2 2023 ➢ $64.8 million excess contracted revenue over total cash expense Capesize 6,599 3,458 ➢ 8,146 open/index days should generate
Slide 10: Diversification in Action
Diversification in Action DRAFT Countering Segment Specific Volatility (in $ million) Asset value(1) volatility per segment Q2 2023 vs Q4 2022 Diversification mitigates individual segment (2%) volatility ( $17 ) ( $36 ) ( $19 ) $4,449 Drybulk vessels : (1%) $4,377 (1%) (4%) (1%) Containerships : (4%
Slide 11: Status of Fleet Renewal
Status of Fleet Renewal DRAFT Newbuilding Program(1) Sale of vessels ▪ $1.4 billion investment ▪ Opportunistic sales of older vessels ➢ Containerships: ~$860 million for 12 vessels ▪ $242.2 million gross sale proceeds from 13 vessels sold YTD • Investment hedged through long-term charters ➢ Tanker V
Slide 12: $3.3 Billion Contracted Revenue
$3.3 Billion Contracted Revenue DRAFT Contracted Revenue by Segment Broad Exposure to Credit Quality Counterparties Drybulk $0.3 billion Tanker $0.9 billion Containerships $2.1 billion Contracted Revenue per Counterparty Contracted Revenue per Year (in $ million) 24.8% 24.2% Axis Title 3.0% 3.1% 18.
Slide 13: Earnings Highlights
Earnings Highlights DRAFT Earnings Highlights (in $‘000 ) Three Months Three Months Six Months Six Months except per unit data, active vessels, available days Ended Ended Ended Ended and TCE June 30, 2023(1) June 30, 2022(2) June 30, 2023(3) June 30, 2022(4) Revenue 346,938 280,661 656,460 517,278 E
Slide 14: Balance Sheet
Balance Sheet DRAFT Balance Sheet Data (amounts in $‘000 ) June 30, 2023 December 31, 2022 Cash & cash equivalents(1) 270,052 175,098 Other current assets 93,809 135,326 Vessels, net 3,734,043 3,777,329 Other non-current assets 867,661 807,951 Total Assets 4,965,565 4,895,704 Other current liabiliti
Slide 15: Debt Highlights
Debt Highlights DRAFT Debt and Bareboat Liabilities(1) at June 30, 2023 Mitigating Interest Rate Risk (in $ million) (in $ million) ▪ 7.2% weighted average interest rate(2) in Q2 2023 $2,155 ▪ 7.0% = current weighted average interest rate of total debt(3) $733 ➢ 36% of debt ($0.8 billion) is fixed a
Slide 16: Q2 2023 Debt Update
Q2 2023 Debt Update DRAFT 73% of newbuilding financing completed Analysis of Debt on NB Vessels ▪ $982.0 million debt facilities 800.0 $715.9 ➢ $715.9 million arranged / signed 600.0 ➢ $220.9 million approved / in documentation $413.5 400.0 ➢ $ 45.2 million under discussion 200.0 $302.4 ▪ $523 milli
Slide 17: ESG – Sustainability Through Sea Transport
ESG – Sustainability Through Sea Transport DRAFT Transoceanic shipping is the most carbon efficient mode of transport ▪ Shipping represents: • ~ 90% of world trade • ~ 3% of man-made greenhouse gas emissions ▪ Net-zero will safeguard air and water quality and avoid negative ecological impacts Aspira
Slide 18: Industry Overview
DRAFT Industry Overview
Slide 19: Tanker Industry Overview
DRAFT Tanker Industry Overview
Slide 20: Global Oil Demand
Global Oil Demand DRAFT Global Oil Demand and GDP Growth 10 World GDP Oil Demand (IEA) 5 Percent 0 -5 -10 ▪ World GDP is expected to grow by 3.0% in 2023 and 3.0% in 2024 (IMF’s July forecast) ▪ 85% correlation of world oil demand to global GDP growth ▪ 2.2% (2.2 mb/d) expected growth in oil demand
Slide 21: Crude Oil and Products: Changing Trading Patterns
DRAFT Crude Oil and Products: Changing Trading Patterns ◼ Seaborne crude and product trades have been affected by the war in Ukraine ➢ EU sanctions imposed on Russian crude imports and price cap ◼ Trade patterns are shifting towards longer-haul routes due to the war ➢ 90% decrease in seaborne Russia
Slide 22: VLCC Fleet Data
VLCC Fleet Data DRAFT ▪ 2023 Expected net fleet growth 2.2% ▪ 2024 Expected net fleet growth -0.9%; negative net fleet growth ▪ Current VLCC orderbook = 2.1% of fleet by DWT (19 vessels: 5 in 2023, 1 in 2024, 1 in 2025 and 8 in 2026, 4 in 2027) ▪ Vessels over 20 years of age* = 14.0% of the fleet by
Slide 23: Product Tanker Fleet Data
Product Tanker Fleet Data DRAFT ▪ 2023 Expected net fleet growth 2.1% ▪ 2024 Expected net fleet growth 1.1% ▪ Current Product Tanker orderbook = 9.7% of the fleet by DWT (231 vessels) ▪ Vessels over 20 years of age* = 9.8% of current fleet by DWT (359 vessels) Deliveries Removals Net Fleet Growth %
Slide 24: Dry Bulk Industry Overview
DRAFT Dry Bulk Industry Overview
Slide 25: World Dry Bulk Trade
World Dry Bulk Trade DRAFT 6.5 World GDP growth 6.3 5.7 5.3 4.5 4.6 4.3 4.4 4.4 4.4 4.3 4.3 4.1 3.9 3.9 3.9 3.9 3.7 3.7 3.7 3.4 3.4 3.5 3.5 3.2 3.1 3.3 2.9 3.0 3.0 2.9 2.9 3.0 3.0 3.0 3.0 2.4 2.6 2.5 2.7 2.6 2.4 2.0 2.2 1.9 1.9 2.0 1.9 1.8 1.4 1.5 0.6 0.4 1970 1972 1974 1976 1978 1980 1982 1984 1986
Slide 26: Major Dry Bulk Commodities
Major Dry Bulk Commodities DRAFT Iron Ore Coal Grain H1 2023 H2 2023 H1 2023 H2 2023 791 625 608 764 2022 Iron ore trade expected to grow Slowdown in seaborne volumes in 2H23 Ton mile growth increases along with trade ■ Seaborne iron ore trade expected to grow by ■ Total coal imports expected to dec
Slide 27: Dry Bulk Fleet Data
Dry Bulk Fleet Data DRAFT ▪ 2023 Expected net fleet growth 2.9% ▪ 2024 Expected net fleet growth 1.9% ▪ Total orderbook of 7.8% is one of the lowest on record ▪ Vessels over 20 years of age = 8.5% of the fleet Deliveries Removals Net fleet growth Year Actual Projected % non-delivery Year DWT % of fl
Slide 28: Container Industry Overview
DRAFT Container Industry Overview
Slide 29: World Container Trade 1996-2024
World Container Trade 1996-2024 DRAFT m TEU 1996 – 2022 CAGR = 5.8% growth 220 13.7% 15% 200 7.4% 10% 180 4.9% 6.7% Million TEU 5.7% 160 4.5% 4.3% 5.0% 5% 140 2.3% 120 3.3% -3.6% 3.4% 0% 100 1.8% 0.3% 80 -5% 60 -1.4% -9.6% 40 -10% 20 0 -15% 2022 P 2023 F 2024 F 1996 1997 1998 1999 2000 2001 2002 200
Slide 30: Container Fleet Data
Container Fleet Data DRAFT ■ 2023 Expected net fleet growth 7.3% ■ 2024 Expected net fleet growth 6.6% ■ Current orderbook of 28.5% of the fleet by TEU skewed towards larger vessels: • 73% of containership orderbook is for vessels of 10,000+ TEU – 68% of orderbook is for vessels of 13,000+ TEU; – 5%
Slide 31: Definitions
Definitions DRAFT 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
Slide 32: www.navios-mlp.com
DRAFT www.navios-mlp.com 20
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