Navios Maritime Partners L.P. NMM shares are trading higher on Tuesday after the company reported third-quarter results.
Revenue was $340.8 million, missing the consensus of $377.0 million. The company’s revenue rose 5.4%, led by the higher Time Charter Equivalent (TCE) rate.
The TCE rate rose 7% to $23,591 per day, and the available days of the fleet decreased by 1.5% to 13,552 days.
Earnings per unit was $3.20, missing the consensus of $4.29.
Adjusted EBITDA rose to $195.4 million from $173.7 million a year ago, mainly led by higher time charter and voyage revenues.
Operating cash flow for the quarter stood at $142.6 million, compared to $120.3 million a year ago.
The company held $331.9 million in cash and equivalents as of the end of September. The company has $3.9 billion contracted revenue as of October 2024.
Navios Partners’ board of directors declared a cash distribution of $0.05 per unit for the third quarter of 2024.
This distribution will be paid on Nov. 15, 2024, to unitholders recorded as of Nov. 12, 2024.
Angeliki Frangou, chairwoman and CEO of Navios Partners, said, “This past 18 months has been surprisingly positive for shipping given sputtering growth from China, weak European economies and two armed conflicts. The Ukrainian conflict, now in its third year, is evolving dangerously while the war in Israel, now in its second year, has expanded to Lebanon and includes the direct exchange of fire between Iran and Israel.”
”We are monitoring these intensifying risks and calibrating our business activity by continuing to maintain a youthful fleet, increasing contracted revenue, now at $3.9 billion, and targeting net leverage in the range of 20-25%, while also returning capital to our unitholders,” Frangou added.
Navios Partners has secured 80.7% and 54.3% of its available days for the fourth quarter of 2024 and for all of 2025, respectively.
Navios Partners expects contracted revenue of $288.9 million for the fourth quarter of 2024 and $870.8 million for 2025. The average daily charter-out rate is projected at $26,052 for the fourth quarter of 2024 and $27,921 for 2025.
NMM Price Action: Navios Maritime Partners shares are up 0.28% at $54.10 at publication Tuesday.
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Photo: Generic ship photo via Shutterstock
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