Navios Maritime Partners Lp · NYSE:NMM
Navios Maritime Partners Lp — Q2 2020 Earnings Presentation
39 slides from Navios Maritime Partners Lp's earnings presentation, Jul 29, 2020
Slide 1: Q2 2020 Earnings Presentation
Q2 2020 Earnings Presentation July 30, 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 Premier Ship Owner Maritime Acquisition ■ ~ 200 vessels controlled Corporation ■ Economies of scale (NYSE: NNA) 54 vessels(1) - 31 product ■ Global brand tankers, 14 VLCCs, 2 chemical tankers, Navios Navios ■ Value creation through cycle Maritime 7 Containerships Maritime ■ St
Slide 4: Company Highlights
Company Highlights 54-vessel fleet Modern & 14 VLCC, 10 LR1, 18 MR2, 3 MR1 and 2 Chemical Tankers Diverse Tanker Fleet 7 containerships (1) Average age = nine years Chartering Strategy: ~ $480 million in long-term contracted revenue 51.9% of available days in H2 2020 fixed on base rate C
Slide 5: Global Oil Demand Recovers in H2 2020
Global Oil Demand Recovers in H2 2020 Oil demand recovers as economic activity rebounds World Quarterly GDP 120 World China 115 110 105 100 95 90 85 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 QoQ Q1 2020 Q2 2020 Q3 2020 Q4 2020 US -5.0% -33.0% 18.4% 6.5% Eurozone -3.6% -12.4% 8.
Slide 6: Robust Fundamentals
Robust Fundamentals 12% of VLCC fleet in floating storage since May 2020 due to low oil price + limited inland storage capacity Current orderbook lowest since 1996. • VLCCs orderbook < VLCCs aged 20 or older Growing Atlantic exports fill refinery capacity expansion in China - increasing ton mi
Slide 7: Key Developments
Key Developments EBITDA 229% increase in Q2 2020 adjusted EBITDA to $72.7 million from $22.1 million in Q2 2019 Q2 rates: VLCC: $61,924 LR1 Product Tankers: $23,506 MR2 Product Tankers: $16,632 Chartering strategy: participating in upside while protecting downside $20.7 million earned from pro
Slide 8: Cost Structure – Core Fleet
Cost Structure – Core Fleet Contracted Revenue(1) (Average Daily Rate) Cost $19,622 $18,363 74.0% $3,920 5,923 days fixed on base rate $4,777 $1,011 excluding revenue from profit sharing $8,655 H2 2020 E H2 2020 E Opex General & Administrative Expenses Interest Expense Capital Repayments (1) Contrac
Slide 9: H2 2020 Potential Cash Flow
H2 2020 Potential Cash Flow 48.1% of available days with market exposure $35.6 million $18.9 million $23,855 $31,871 $14,775 Breakeven for open + days Weighted average forward Weighted average forward fixed on floating rate rate based on rate based on (1) 1-year TC rates (1) 20-year average rates
Slide 10: NNA Liquidity
NNA Liquidity ($ million) June 30, 2020 Cash(1) 68.5 Debt (2) 1,161.0 Shareholders' Equity 337.4 Capitalization 1,498.4 Net Debt/Capitalization 72.9% Pro Forma Debt Maturities(3) 800 ($ million) $56.0 Senior Secured Notes 600 due November 2021 400 $653.0 November 200 2021 $44.5 $40.6 $55.7 $48.8 $10
Slide 11: Fleet Update
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Slide 12: NNA Fleet
NNA Fleet Core Fleet: 47 Vessels (6.0 million dwt) 14 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 dwt) 52,000 dwt) 45,000 dwt) Cru
Slide 13: Chartering Strategy – Core Fleet
Chartering Strategy – Core Fleet $20.7 million earned from profit sharing arrangements in Q2 2020 H2 2020 available days – 51.9% on fixed rate – 22.1% fixed with profit sharing arrangements; 73.0% of VLCC days – 11.5% fixed on floating rates – 14.5% open (mainly Q4 2020) Protect the downside 74.0% o
Slide 14: Recent Fleet Developments
Recent Fleet Developments Nave Perseus N MR1 product tanker chartered out for 18 plus six months – Charter rate = $12,146 net per day; $13,825 net per day optional period – Expected base EBITDA = $2.4 million(1) Nave Jupiter MR2 product tanker chartered out for 8-12 months – Charter rate = $15,306 n
Slide 15: Fleet Employment
Fleet Employment Star N (MR1) $13,894 Perseus N (MR1) $12,146 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 16: Crude Market Overview
=N= Navios Maritime Acquisition Corporation Crude Market Overview 16
Slide 17: Global Oil Demand: Pause for the Pandemic
Global Oil Demand: Pause for the Pandemic Global oil demand is driven by GDP In June, the IMF projected global GDP contraction of 4.9% for 2020, lead by a 8.0% contraction in advanced economies and a 0.8% contraction in China, India and other developing Asian economies IMF projects 5.4% growth
Slide 18: Low Oil Price Drives Inventory Build and Floating Storage
Low Oil Price Drives Inventory Build and Floating Storage Sharp decline in oil demand along with increased supply in H1 2020 led to oil price collapse As a result oil inventories increased in May by 350 million barrels over the 5-year average and now stand at 330 million barrels above Contango
Slide 19: 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 14 Chinese imports: 1H19 – 9.9 MBPD 13% CAGR Jan ‘09 to Jun ‘20 35 1H20 –10.8 MBPD 12 10 30 Barrels per p
Slide 20: Atlantic Production to Serve Refinery Additions in the East
Atlantic Production to Serve Refinery Additions in the East Since 2013 total US and Brazilian crude oil exports have increased by 3.5 mb/d. In spite of the pandemic, total crude exports from these two countries averaged 4.1 mb/d May 2020 YTD Over 50% of US and Brazilian crude exports have gone t
Slide 21: 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 Jun 6.7 M 6.7 M 0% 2020 0.6 M 0.2% 2020 6.7 M 2.7% 254.7 M 2019 21.1 M 22.9 M 8% 2019 1.8 M 0.8% 2019* 19.6 M 8.
Slide 22: VLCC Orderbook vs Age Profile
VLCC Orderbook vs Age Profile Confirmed VLCCs on order are less than the number of ships needed to replace existing VLCCs of 20 years of age or older Current orderbook of 7.4% is the lowest since 1996 180 155 160 140 120 Number of VLCCs 93 100 80 58 60 11 40 28 62 20 19 0 Orderbook Fleet OB 2022
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 9.9 million barrels per day (MBPD) for the period 2020-2025; About 70% 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 US Crude production increases along with refinery expansions in US Gulf have lead to product exports from the US rising by 536% since beginning 2004. US has become a net exporter of Petroleum Products and continues to export significant quantities of products to L
Slide 26: Refineries Complete Maintenance During Lockdown Period
Refineries Complete Maintenance During Lockdown Period Refinery Maintenance (Capacity offline) 13 2014- 2018 Daily Average 2019 2020 2020 Forecast 12 11 10 Million Barrels Per Day 9 8 7 6 5 4 3 2 1 0 J F M A M J J A S O N D An average of 11.4 MBPD of refining capacity was offline for maintenance f
Slide 27: Gasoline Demand Increasing
Gasoline Demand Increasing China Gasoline Demand (2020) Gasoline demand has increased as Covid-19 lockdowns have ended Chinese gasoline demand has risen above 2015- 2019 averages as commuters show a preference for driving amid concerns over social distancing on public transportation For a numb
Slide 28: 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 Jun 3.0 M 4.1 M 27% 2020* 0.5 M 0.3% 2020* 2.5 M 1.5% 169.6 M 2019 8.4 M 10.5 M 21% 2019 1.2 M 0.8% 2019 7.2 M 4.5% 167.1
Slide 29: Q2 and H1 2020 Financial Results
Q2 and H1 2020 Financial Results
Slide 30: Second Quarter and H1 2020 Earnings Highlights
Second Quarter and H1 2020 Earnings Highlights Three month Three month YoY Six month Six month YoY ($ million except per share data) period ended period ended period ended period ended June 30, 2020 June 30, 2019 (%) June 30, 2020 June 30, 2019 (%) Revenue 112.2 58.6 91.6% 210.1 135.7 54.8% EBITDA 7
Slide 31: Balance Sheet Highlights
Balance Sheet Highlights Selected Balance Sheet Data (in million USD) June 30, 2020 December 31, 2019 Cash & cash equivalents (1) 68.5 44.1 Vessels, net 1,318.7 1,348.3 Total Assets 1,585.7 1,556.0 Total debt (2) 1,161.0 1,173.1 Stockholders Equity 337.4 313.9 Total Liabilities and Shareholders Equi
Slide 32: Debt Refinancing Concluded in Q2 2020: Bank Facilities
Debt Refinancing Concluded in Q2 2020: Bank Facilities $72.1 million Sale and Leaseback Facility – Margin: 3 month Libor + 3.90 - 4.10% – Tenor: 4 years for MR1 vessel; 7 years for MR2 and LR1 vessels – Repayment profile: 18 years age adjusted, quarterly repayment Outstanding as of March 31, Vesse
Slide 33: Returning Capital to Shareholders
Returning Capital to Shareholders Dividend Policy Q2 2020 Distribution: $0.30 per share – Record date: September 4, 2020 – Payment date: October 8, 2020 33
Slide 34: Appendix
t = N =i Maritime Acquisition Corporation Appendix 34
Slide 35: Fleet – VLCCs
Fleet – VLCCs Year Expiration Profit Share Vessel Type DWT Net Charter Rate ($/day) Built 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 $32,588 Apr-22 Nave Quasar VLCC 297,376
Slide 36: Fleet – LR1 Product Tankers
Fleet – LR1 Product Tankers Year Vessel Type DWT Net Charter Rate ($/day) Expiration Date Built 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 Nave Cassiopeia LR1 Product
Slide 37: 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 ($/day) Date Arrangement / Premium Nave Velocity MR2 Product Tanker 49,999 2015 16,047 Dec-20 Nave Sextans MR2 Product Tanker 49,999 2015 17,250(4) May-21 Nave Pyxis MR2 Product Tanker
Slide 38: Fleet – Containers Held for Sale
Fleet – Containers Held for Sale Year Vessel Type TEU Net Charter Rate ($/day) Expiration Date Built Acrux N Container 1,740 2010 8,759 Dec-20 Vita N Container 1,740 2010 6,882 Sep-20 Spectrum N Container 2,546 2009 7,941 Oct-20 Ete N Container 2,782 2012 7,406 August-20 Fleur N Container 2,782 2012
Slide 39: www.navios-acquisition.com
www.navios-acquisition.com 39
Navios Maritime Partners — Q2 2020 Earnings Presentation on 6ix