Navios Maritime Partners Lp · NYSE:NMM
Navios Maritime Partners Lp — Q4 2023 Earnings Presentation
32 slides from Navios Maritime Partners Lp's earnings presentation, Feb 13, 2024
Slide 1: Navios Maritime Partners L.P. Fourth Quarter 2023 Earnings Presentation
DRAFT Navios Maritime Partners L.P. (NYSE:NMM) Fourth Quarter 2023 Earnings Presentation February 13, 2024 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: $4.5 billion 176 vessels (1) vessel value Diversification: $2.5 billion 3 segments net vessel equity value 15+ asset classes Modern Fleet: $3.3 billion Average age = contracted revenue 9.7 years (1) (2) (1) Excludes two optiona
Slide 4: Strength Through Diversification
Strength Through Diversification DRAFT Chartering strategy Optimizing generating consistent Profitability Cyclical opportunity Capturing allowing optimal Capital Allocation Segment specific volatility Countering creating Balance Sheet Strength A diversified platform provides stable entity-level retu
Slide 5: Fleet Snapshot – Vessels
Fleet Snapshot – 176 Vessels DRAFT 77 Dry Bulk Vessels 9.6 million dwt Average age (1): 10.6 years (industry average: 12.1 years) 35 Capesize Vessels 37 Panamax Vessels 5 Handymax Vessels 6.3 million dwt 3.0 million dwt 0.3 million dwt 47 Containerships 235,414 TEU Average age (1): 11.1 years (indus
Slide 6: Selected Segment Data
Selected Segment Data DRAFT Dry Bulk Container 1 Tankers Total Fleet ships # of Vessels 77 47 52 176 (6) Fleet Size Average age (yrs) 10.6 11.1 7.6 9.7 Capacity 9.6 mdwt 235,414 TEU 6.0 mdwt Vessel value ($mm)(1) 2,073 718 1,753 4,544 Debt and bareboat liabilities 1,015 368 650 2,033 ($m
Slide 7: Recent Developments
Recent Developments DRAFT Income Statement In $ million Q3 2023 Q4 2023 FY 2023 Revenue 323.2 327.3 1,306.9 EBITDA 180.8 226.5 797.8 Financial Information(1) Adjusted EBITDA 173.7 227.1 747.6 Net Income 89.8 132.4 433.6 Balance Sheet $296.2 million cash balance as of December 31, 2023 5.4% annua
Slide 8: 2023: Executing Our Strategy
2023: Executing Our Strategy DRAFT 2023: Executing our strategy: deleveraging fleet renewal and modernization building revenue backlog consistent profitability 2023 Δ (%) 2022(1) Vessels(2) 176 - 176 Average age(2) 9.7 years + 2.1% 9.5 years Revenue $1.3 billion + 8.0% $1.2 billion Adjusted
Slide 9: FY 2024E: Operating Cash Flow
FY 2024E: Operating Cash Flow DRAFT Open / FY 2024E – 56,058 available days - 63% fixed Vessel type Available Index days days 2024E 2024E $491 breakeven per open day Capesize 12,728 7,281 20,497 remaining open/index days Kamsarmax / Panamax 13,119 8,221 Ultramax / $24,910 daily average net rat
Slide 10: Fleet Renewal
Fleet Renewal DRAFT Newbuilding Program(1) Sale of vessels $1.6 billion investment Opportunistic sales of older vessels Containerships: $736 million for ten vessels $327.6 million gross sale proceeds from 17 vessels sold 2023 – • Investment hedged through long-term charters YTD 2024 $0.9 b
Slide 11: $3.3 Billion Contracted Revenue
$3.3 Billion Contracted Revenue DRAFT Contracted Revenue by Segment Broad Exposure to Credit Quality Counterparties Dry Bulk $0.4 billion Tankers $1.1 billion Containerships $1.8 billion Contracted Revenue by Counterparty Contracted Revenue by Year (in $ million) 22.7% 29.3% Axis Title 17.7% 2.7% 3.
Slide 12: Earnings Highlights
Earnings Highlights DRAFT Earnings Highlights (in $‘000 ) Three Months Three Months Three Months Year Ended Year Ended except per unit data, active Ended Ended Ended December 31, December 31, vessels, available days and TCE September 30, December 31, December 31, 2023(4) 2022(5) 2023(1) 2023(2) 2022
Slide 13: Balance Sheet
Balance Sheet DRAFT Balance Sheet Data December 31, 2023 December 31, 2022 (amounts in $‘000 ) (unaudited) (unaudited) Cash & cash equivalents(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,
Slide 14: Debt Highlights
Debt Highlights DRAFT Debt and Bareboat Liabilities(1) at December 31, 2023 Mitigating Interest Rate Risk (in $ million) 7.0% weighted average interest rate(2) in Q4 2023 6.9% = current weighted average interest rate of total debt(3) $2,033 36% of debt at fixed average interest rate of 5.6%
Slide 15: ESG – Sustainability Through Sea Transport
ESG – Sustainability Through Sea Transport DRAFT Shipping represents ~90% of world trade and about ~3% of man-made GHG emissions Comprehensive strategy towards environmentally sustainable operations: Adherence to applicable environmental regulations through verification processes • Advocate fo
Slide 16: Industry Overview
DRAFT Industry Overview
Slide 17: Trade Disruptions
Trade Disruptions DRAFT Red Sea is a main artery of trade ~ 26,000 vessels passed through in 2023 (~ 500 vessels average on a weekly basis) Following the war in Israel there have been more than 50 attacks / attempted attacks on commercial vessels affecting trade flow Since the week ending Nove
Slide 18: Tanker Industry Overview
DRAFT Tanker Industry Overview
Slide 19: 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 grew by 3.1% in 2023 and is expected to grow 3.1% in 2024 (IMF’s January forecast) ~ 85% correlation of world oil demand to global GDP growth ■ 2.3% (2.3 mb/d) growth in oil demand
Slide 20: 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 Trade patterns shifted towards longer-haul routes due to the war 90% decrease in seaborne Russian crude exports to the EU in 2023 vs beginning of 2022 Russian Ba
Slide 21: VLCC Fleet Data
VLCC Fleet Data DRAFT ■ 2023 Provisional net fleet growth 2.2% ■ 2024 Expected negative net fleet growth (0.5%) ■ Current VLCC orderbook = 2.6% of fleet by DWT (23 vessels: 1 in 2024, 5 in 2025 and 11 in 2026, 6 in 2027) ■ Vessels over 20 years of age* = 17.0% of the fleet by DWT (157 vessels) Deliv
Slide 22: Product Tanker Fleet Data
Product Tanker Fleet Data DRAFT ■ 2023 Net fleet growth was 2.1% ■ 2024 Expected net fleet growth 1.4% ■ Current Product Tanker orderbook = 12.7% of the fleet by DWT (300 vessels) ■ Vessels over 20 years of age* = 14.6% of current fleet by DWT (521 vessels) Deliveries Removals Net Fleet Growth % non
Slide 23: Dry Bulk Industry Overview
DRAFT Dry Bulk Industry Overview
Slide 24: World Dry Bulk Trade
World Dry Bulk Trade DRAFT 6.5 World GDP growth 6.2 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 3.0 3.1 3.1 3.0 2.9 2.9 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 25: Dry Bulk Fleet Data
Dry Bulk Fleet Data DRAFT ■ 2023 Provisional net fleet growth 3.1% ■ 2024 Expected net fleet growth 2.3% ■ Total orderbook of 8.5% of the fleet ■ Vessels over 20 years of age = 10.1% of the fleet Deliveries Removals Net fleet growth Year Actual Projected % non-delivery Year DWT % of fleet Year DWT %
Slide 26: Container Industry Overview
DRAFT Container Industry Overview
Slide 27: World Container Trade 1996-2024
World Container Trade 1996-2024 DRAFT m TEU 1996 – 2023 CAGR = 5.6% growth 220 13.7% 15% 200 7.4% 10% 180 4.9% 6.6% Million TEU 5.7% 4.5% 160 5.0% 4.5% 140 2.3% 5% 120 3.3% -3.7% 3.8% 0% 100 1.8% 0.3% 80 -5% 60 -1.5% -9.6% 40 -10% 20 0 -15% 2023 P 2024 F 1996 1997 1998 1999 2000 2001 2002 2003 2004
Slide 28: Container Fleet Data
Container Fleet Data DRAFT ■ 2023 Provisional net fleet growth 8.2% ■ 2024 Expected net fleet growth 8.0% ■ Current orderbook of 23.6% of the fleet by TEU skewed towards larger vessels: • ~ 72% of containership orderbook is for vessels of 10,000+ TEU – ~ 66% of orderbook is for vessels of 13,000+ TE
Slide 29: Appendix
DRAFT Appendix
Slide 30: Diversification in Action
Diversification in Action DRAFT Countering Segment Specific Volatility (in $ million) Vessel value(1) volatility per segment Q4 2023 vs Q4 2022 Diversification mitigates individual segment +0.5% volatility $167 ( $219 ) $73 $4,523 Dry Bulk vessels : +8.8% $4,544 +8.8% (23.4%) 4.3% Containerships : (
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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