Navios Maritime Partners L.P. Reports 2024 Revenues of $1.33 Billion
Navios Maritime Partners L.P, an international owner and operator of dry cargo and tanker vessels, today reported its financial results for the fourth quarter and year ended December 31, 2024.
Angeliki Frangou, Chairwoman and Chief Executive Officer of Navios Partners stated, “I am pleased with the results for the full year and fourth quarter of 2024. For the full year, we reported revenue of $1.33 billion, and for the quarter, we reported revenue of $332.5 million. We also reported net income of $367.3 million for the full year and $94.7 million for the fourth quarter. Earnings per common unit were $11.98 for the full year and $3.11 for the fourth quarter.”
Angeliki Frangou continued, “Since the pandemic, our markets have been driven primarily by geopolitical events and conflicts in Ukraine and the Middle East. We don’t know how these conflicts will be resolved. We also don’t know the extent to which nations will be subject to continuing or even expanded sanctions. In our view, the resolution of the conflicts in Ukraine and the Middle East may involve significant sanctions on oil-producing nations, materially impacting world trade. In addition, the U.S. administration has been vocal about its new tariff scheme but has not yet provided a complete roadmap. We cannot now fully understand the impact on global trade until this develops further.”
Common unit repurchases
As of December 31, 2024 and February 7, 2025, pursuant to its previously announced common unit repurchase program, Navios Partners repurchased 489,955 and 585,420 common units, respectively, for aggregate cash consideration of approximately $25.0 million and $29.2 million, respectively. As of February 7, 2025, there were 29,598,968 common units outstanding.
Cash distribution
The Board of Directors of Navios Partners declared a cash distribution for the fourth quarter of 2024 of $0.05 per unit. The cash distribution will be paid on February 13, 2025 to unitholders of record as of February 10, 2025. The declaration and payment of any further dividends remain subject to the discretion of the Board of Directors and will depend on, among other things, Navios Partners’ cash requirements as measured by market opportunities and restrictions under its credit agreements and other debt obligations and such other factors as the Board of Directors may deem advisable.
Fleet update
• Sale of vessels Q4 2024 – 2025 YTD
• $18.8 million gross sale proceeds from sale of two dry bulk vessels with average age of 18.7 years
In November 2024 and February 2025, Navios Partners agreed to sell two 2006-built panamaxes to unrelated third parties, for aggregate gross sale proceeds of $18.8 million. The sale of one vessel was completed in December 2024 and the sale of the remaining vessel is expected to be completed in the first half of 2025.
• $25.4 million effective price upon the exercise of an option on one Japanese-built ultra-handymax
In December 2024, Navios Partners took delivery of a 2015-built ultra-handymax of 61,339 dwt, which was previously chartered-in, for an effective price of $25.4 million.
• Four newbuilding vessels delivered Q4 2024 – 2025 YTD
In November 2024 and December 2024, Navios Partners took delivery of two 2024-built 5,300 TEU containerships, which have been chartered-out at an average rate of $36,818 net per day for an average period of 5.3 years.
In January 2025, Navios Partners took delivery of a 2025-built aframax/LR2 tanker, which has been chartered-out at $25,253 net per day for a period of five years.
In January 2025, Navios Partners took delivery of a 2025-built LNG dual fuel 7,700 TEU containership, which has been chartered-out at an average rate of $41,753 net per day for a period of 12 years.
• $79.0 million contracted revenue agreed Q4 2024 – 2025 YTD; $3.6 billion total contracted revenue
Navios Partners has entered into new long-term charters which are expected to generate revenue of $79.0 million.
• Two VLCC tankers have been chartered-out for a period of one year at an average rate of $36,143 net per day.
• One 2,546 TEU containership has been chartered-out for a period of 2.2 years at $24,375 net per day.
• One LR1 tanker has been chartered-out for a period of two years at $24,225 net per day.
• One MR2 tanker has been chartered-out for a period of two years at $19,475 net per day.
Including the above long-term charters, Navios Partners has $3.6 billion contracted revenue through 2037.
Financing update
In November 2024, Navios Partners entered into a sale and leaseback agreement of $16.0 million with an unrelated third party for a 2009-built capesize of 180,661 dwt. The sale and leaseback agreement matures in the fourth quarter of 2028 and bears interest at Term Secured Overnight Financing Rate (“Term SOFR”) plus 241 bps per annum.
In December 2024, Navios Partners entered into a new credit facility with a commercial bank for a total amount up to $30.0 million in order to refinance the existing indebtedness of four of its vessels. The facility matures five years after the drawdown date and bears interest at Term SOFR plus 175 bps per annum.
In December 2024, Navios Partners entered into a new credit facility with a commercial bank for a total amount up to $90.0 million in order to refinance the existing indebtedness of seven of its vessels. The facility matures four years after the drawdown date and bears interest at Compounded Secured Overnight Financing Rate (“Compounded SOFR”) plus 180 bps per annum.
During the first quarter of 2025, Navios Partners agreed to enter into an export credit agency-backed facility for a total amount up to $148.4 million in order to finance part of the acquisition cost of two newbuilding 7,900 TEU containerships, currently under construction. The facility matures 12 years after the delivery date of each vessel and bears interest at Compounded SOFR plus 125 bps per annum. The facility remains subject to completion of definitive documentation and is expected to close in the first quarter of 2025.
Operating Highlights
Navios Partners owns and operates a fleet comprised of 70 dry bulk vessels, 50 containerships and 56 tankers, that includes 18 newbuilding tankers (12 aframax/LR2 and six MR2 product tanker chartered-in vessels under bareboat contracts), that are expected to be delivered through the first half of 2028, and five newbuilding containerships (one 7,700 TEU containership and four 7,900 TEU containerships), that are expected to be delivered through the first half of 2027. The fleet excludes one panamax agreed to be sold.
As of February 7, 2025, Navios Partners had entered into short, medium and long-term time charter-out, bareboat-out and freight agreements for its vessels with a remaining average term of 2.1 years. Navios Partners has currently fixed 62.7% and 42.2% of its available days for 2025 and 2026, respectively. Navios Partners expects contracted revenue of $926.6 million and $707.7 million for 2025 and 2026, respectively. The average expected daily charter-out rate for the fleet is $26,198 and $28,392 for 2025 and 2026, respectively.
EARNINGS HIGHLIGHTS
For the following results and the selected financial data presented herein, Navios Partners has compiled condensed consolidated statements of operations for the three month periods and years ended December 31, 2024 and 2023. The quarterly information was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA, Adjusted EBITDA, Adjusted Earnings per Common Unit basic and diluted and Adjusted Net Income are non-GAAP financial measures and should not be used in isolation or substitution for Navios Partners’ results calculated in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).
Three month periods ended December 31, 2024 and 2023
Time charter and voyage revenues for the three month period ended December 31, 2024 increased by $5.2 million, or 1.6%, to $332.5 million, as compared to $327.3 million for the same period in 2023. The increase in revenue was mainly attributable to the increase in Time Charter Equivalent (“TCE”) rate and the increase in the available days of our fleet. For the three month periods ended December 31, 2024 and 2023, time charter and voyage revenues were negatively affected by $3.0 million and $10.5 million, respectively, relating to the straight line effect of the containership and tanker charters with de-escalating rates. The TCE rate increased by 2.6% to $23,205 per day, as compared to $22,625 per day for the same period in 2023. The available days of the fleet increased by 1.1% to 13,671 days for the three month period ended December 31, 2024, as compared to 13,527 days for the same period in 2023 mainly due to the deliveries of newbuilding vessels, partially mitigated by the sale of vessels.
EBITDA of Navios Partners for the three month periods ended December 31, 2024 and 2023 was affected by the items described in the table above. Excluding these items, Adjusted EBITDA decreased by $44.9 million to $182.2 million for the three month period ended December 31, 2024, as compared to $227.1 million for the same period in 2023. The decrease in Adjusted EBITDA was primarily due to a: (i) $54.5 million decrease in other income mainly due to the prepayment of hire received in the three month period ended December 31, 2023 for the early termination of the charter parties of two containerships; (ii) $7.0 million increase in vessel operating expenses mainly due to the change in the composition of our fleet with deliveries and sales of vessels and the adjustment of the fixed daily fee in accordance with our management agreements; and (iii) $1.7 million increase in general and administrative expenses in accordance with our administrative services agreement. The above decrease was partially mitigated by a: (i) $9.1 million decrease in time charter and voyage expenses, mainly due to the decrease in bunker expenses arising from the decreased days of freight voyages in the fourth quarter of 2024 and the decrease in bareboat and charter-in hire expenses of the dry bulk fleet; (ii) $5.2 million increase in time charter and voyage revenues; and (iii) $4.0 million decrease in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items).
Net Income for the three month periods ended December 31, 2024 and 2023 was affected by the items described in the table above. Excluding these items, Adjusted Net Income decreased by $53.6 million to $79.3 million for the three month period ended December 31, 2024, as compared to $132.9 million for the same period in 2023. The decrease in Adjusted Net Income was primarily due to a: (i) $44.9 million decrease in Adjusted EBITDA; and (ii) $9.3 million negative impact from the depreciation and amortization, that primarily resulted from a $5.2 million increase in the amortization of deferred drydock, special survey costs and other capitalized items, a $3.8 million increase in the depreciation and amortization of intangible assets and a $0.3 million decrease in the amortization of unfavorable lease terms. The above decrease was partially mitigated by a: (i) $0.5 million decrease in interest expense and finance cost, net and; and (ii) $0.1 million increase in interest income.
Years ended December 31, 2024 and 2023
Time charter and voyage revenues for the year ended December 31, 2024 increased by $27.2 million, or 2.1%, to $1,334.1 million, as compared to $1,306.9 million for the same period in 2023. The increase in revenue was mainly attributable to the increase in TCE rate, partially mitigated by the decrease in the available days of our fleet. For the years ended December 31, 2024 and 2023, time charter and voyage revenues were positively affected by $1.9 million and negatively affected by $40.7 million, respectively, relating to the straight line effect of the containership and tanker charters with de-escalating rates. The TCE rate increased by 2.6% to $22,924 per day, as compared to $22,337 per day for the same period in 2023. The available days of the fleet slightly decreased by 0.9% to 54,261 days for the year ended December 31, 2024, as compared to 54,766 days for the same period in 2023 mainly due to the sale of vessels, partially mitigated by the deliveries of newbuilding vessels.
EBITDA of Navios Partners for the years ended December 31, 2024 and 2023 was affected by the items described in the table above. Excluding these items, Adjusted EBITDA decreased by $16.0 million to $731.6 million for the year ended December 31, 2024, as compared to $747.6 million for the same period in 2023. The decrease in Adjusted EBITDA was primarily due to a: (i) $47.4 million decrease in other income mainly due to the prepayment of hire received in the year ended December 31, 2023 for the early termination of the charter parties of two containerships; (ii) $17.5 million increase in vessel operating expenses mainly due to the change in the composition of our fleet with deliveries and sales of vessels and the adjustment of the fixed daily fee in accordance with our management agreements; and (iii) $4.6 million increase in general and administrative expenses in accordance with our administrative services agreement. The above decrease was partially mitigated by a: (i) $27.2 million increase in time charter and voyage revenues; (ii) $13.8 million decrease in time charter and voyage expenses, mainly due to the decrease in bareboat and charter-in hire expenses of the dry bulk fleet and the decrease in bunker expenses arising from the decreased days of freight voyages in 2024; and (iii) $12.5 million decrease in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items).
Net Income for the years ended December 31, 2024 and 2023 was affected by the items described in the table above. Excluding these items, Adjusted Net Income decreased by $41.9 million to $341.5 million for the year ended December 31, 2024, as compared to $383.4 million for the same period in 2023. The decrease in Adjusted Net Income was primarily due to a: (i) $38.1 million negative impact from the depreciation and amortization, that primarily resulted from a $20.2 million increase in the amortization of deferred drydock, special survey costs and other capitalized items, a $10.7 million increase in the depreciation and amortization of intangible assets and a $7.2 million decrease in the amortization of unfavorable lease terms; and (ii) $16.0 million decrease in Adjusted EBITDA. The above decrease was partially mitigated by a: (i) $9.1 million decrease in interest expense and finance cost, net; and (ii) $3.1 million increase in interest income.
Fleet Employment Profile
The following table reflects certain key indicators of Navios Partners’ core fleet performance for the three month periods and years ended December 31, 2024 and 2023.
Source: Navios Maritime Partners
