Navios Maritime Partners' Shares Gain On Q2 Results, Acknowledges Challenging Macro Environment

Navios Maritime Partners L.P. NMM reported second-quarter FY23 revenue growth of 23.6% Y/Y to $346.94 million, beating the consensus of $318 million.

The company attributed the rise in revenue to the fleet size increase and a slight increase in the Time Charter Equivalent rate.

The TCE rate increased by 0.3% Y/Y to $23,900 per day, and the available days of the fleet increased by 20.4% to 13,572 days.

Adjusted EPS was $3.32, beating the consensus of $2.88.

Adjusted EBITDA increased to $191.45 million from $163.48 million a year ago, led by higher time charter and voyage revenues.

Adjusted EBITDA margin contracted by 306 bps to 55.2%.

Operating cash flow for six months ended June 30, 2023, increased to $228.34 million, compared to $147.16 million a year ago.

The company held $270.05 million in cash and equivalents as of June 30, 2023.

NMM recorded $242.2 million in gross sale proceeds from the sale of 13 vessels year-to-date.

The company has $131.3 million contracted revenue agreed in 2Q23 and has $3.3 billion contracted revenue through 2037. 

Navios Partners owns and operates a fleet comprised of 81 dry bulk vessels, 47 containerships, and 47 tanker vessels.

"The macro environment is challenging. Trade patterns continue to be impacted by the war in Ukraine, China's anemic economic growth and Western countries pre-occupation with inflation and recessionary risks. Regardless of the shipping sector, there is a great deal of uncertainty about future prospects. We continue to focus on things that we can control, such as reducing our leverage rate and replacing older vessels with younger, more technologically advanced vessels in sectors that provide adequate returns," commented Angeliki Frangou, Chairwoman and Chief Executive Officer of Navios Partners.

Navios Partners has fixed 70.9% and 43.7% of its available days for the remaining six months of 2023 and 2024. 

The company expects to generate contracted revenue of $505.9 million and $747.9 million for the remaining six months of 2023 and 2024 and sees an average daily charter-out rate for the fleet of $25,459 and $29,701, respectively.

Price Action: NMM shares are trading higher by 2.95% at $23.36 on the last check Wednesday.