Navios Partners 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. |