Q2 2024 Navios Maritime Partners LP Earnings Call

August 20, 2024

Speaker Change: thank you for join for 's time partners second quarter twent y twenty four earnings conference call with us the day from the company chair woman and c angefr chief operating officer mrthe start of the cpri chie financial officer mrs it irr and vice chairman mr at pat as a reminder this conference call is being webcast so access the white cast please go to theinvvestor section of vis partners website a w w w do vvi be dot com you ll see the word cast link inthemdle of age and a copy of the presentation reference in today's earnings conference call will also be found

Operator: 2024 Earnings Conference Call. With us today from the company are Chairwoman and CEO, Miss Angeliki Frangou, Chief Operating Officer, Mr. Efstratios Desypris, Chief Financial Officer, Mrs. Erifili Tsironi, and Vice-Chairman, Mr. Ted Petrone. As a reminder, this conference call is being webcast. To access the webcast, please go to the investor section of Navios Partners website at www.navios-mlp.com. You will see the webcasting link in the middle of the page and a copy of the presentation referenced in today's Earnings Conference Call will also be found there.

Operator: 2024 Earnings Conference Call.

Operator: With us today from the company are Chairwoman and CEO, Miss Angeliki Frangou, Chief Operating Officer, Mr. Efstratios Desypris, Chief Financial Officer, Mrs. Erifili Tsironi, and Vice-Chairman, Mr. Ted Petrone.

Operator: I will turn the call back to Angelica for any closing remarks.

Operator: As a reminder, this conference call is being webcast.

Operator: To access the webcast, please go to the investor section of Navios Partners website at www.navios-mlp.com.

Operator: You will see the webcasting link in the middle, of the page and a copy of the presentation referenced in today's Earnings Conference

Operator: Now, I will review the Safe Harbor Statement. This conference call could contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Navios Partners. Forward-looking statements are statements that are not historical facts.

Operator: Call will also be found there.

Operator: Now, I will review the Safe Harbor Statement.

Speaker Change: therenow i will review the safe harbor statement this conference call could contain forwardlooking statements within the meaning of the private security litigation reform act of onethousand nine hundredand ninety five about nowv his partners

Operator: This conference call could contain forward-looking statements within the meaning of the Private, Securities Litigation Reform Act of 1995 about Navios Partners.

Operator: Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of Navios Partners management and are subject to risks and uncertainties which could cause actual results to differ materially from the forward-looking statements.

Speaker Change: Forward-looking statements are statements that are not historical facts.

Speaker Change: such forward-looking statements are based upon the grn beliefs and expectations of nav' partners management and are subject to risks and uncertainties which could cause actual results to differ materially from the forward-looking statements

Operator: Such risks are more fully discussed in Navios Partners filings with the Securities and Exchange Commission.

Operator: The information set forth herein should be understood in light of such risks.

Speaker Change: such risks are fully discussed in navious partners filings with the securities and exchange commission the information fore hearing should be understood in light of such risks

Speaker Change: nowv this partners does not assume any obligation to update information contained in this conference call

Operator: Such forward-looking statements are based upon the current beliefs and expectations of Navios Partners management and are subject to risks and uncertainties which could cause actual results to differ materially from the forward-looking statements. Such risks are more fully discussed in Navios Partners filings with the Securities and Exchange Commission. The information set forth herein should be understood in light of such risks. Navios Partners does not assume any obligation to update the information contained in this conference call. The agenda for today's call is as follows. First, Ms. Frango will offer opening remarks.

Operator: Navios Partners does not assume any obligation to update the information contained in this conference call.

Speaker Change: the agenda for today's call is as follows

Operator: Next, Mr. Vesipis will give an overview of Navios Partners' segment data. Next, Mr. Tironi will give an overview of Navios Partners' financial results. Then, Mr. Petron will provide an industry overview.

missis resiis: first miss framer will offer openingin remarks next missis resiis will give an overview on navice partner segment ata

Speaker Change: next misterrony will give an overview of nav' partner's financial results then mr pepatrol will provide an industry overview and lastly we'll open the goal to take questions

Operator: And lastly, we'll open the call to take questions. Now, I turn the call over to Navios Partners Chairwoman and CEO, Ms. Angeliki Frangou. Angeliki?

Operator: The agenda for today's call is as follows.

Angeliki Frangou: Thank you.

Speaker Change: now i turn the call over to na's partners chairwoman in ceo mid angelicki franle angejlici

Operator: First, Ms. Frango will offer opening remarks.

Angeliki Frangou: This completes our quarterly results.

Angeliki Frangou: Thank you.

Speaker Change: good morning to you and thank you for joining us on today's call i am pleased to with reidles for the second quarter of two thousand and twenty four we repedit revenue forthree hundred and forty two point two million dollars in net income of one hundred and one point five million dollars for the quarter

Speaker Change: Earnings per common unit was $3.30. In the second quarter, regional conflict, particularly in the Red Sea, continued to impact marine transportation. The net result has been longer tonne miles for the similar volume of goods, as people are avoiding the Red Sea and taking the route around Africa.

Angeliki Frangou: In the second quarter, regional conflict, particularly in the Red Sea, continued to impact marine transportation. The net result has been longer-term marriage for the similar volume of goods as people are avoiding the Red Sea and taking the route around Africa. It seems that the global inflation we all experienced post-pandemic is subsiding. And while the U.S. and European economies are generally healthy, China's economy is challenged by a troubled real estate sector and fading domestic consumption.

Speaker Change: it seems that the global inflation we all experience was pandemic is subsing and while the u s and european economies as gener healththe china' s economic is challed by a traveouble real estate sector and fing domestic consumption we are gotatch ing carefully to the dement where the china's econom wh we can it's otherwise what are shouldes haveappedied for commodities as you can imagine which china economic stalling would have a cautious you

Angeliki Frangou: We are watching carefully to determine whether China's economic woes weaken its otherwise voracious appetite for commodities. As you can imagine, with China's economic stalling, we have a cautious view. But we are also cautious because of geopolitical considerations. The conflict in Ukraine continues with no resolution in sight. The Middle East is on the edge and things can go badly quickly if some sort of new equilibrium is not established.

Speaker Change: but we are also aware because of the specific geopolitics.

Speaker Change: The conflict in Ukraine continues with no resolution in sight, the Middle East is on the edge and things can go badly quickly if some sort of new equilibrium is not established.

Angeliki Frangou: Accordingly, we continue to execute on our strategic initiative by focusing on things that we can control, such as reducing leverage and modernizing our energy-efficient fleet. Παρακαλώ, μεταφέρετε στο στήριο 7. Ο Navios Maritime Partners είναι η κυριαρχική δημοφιλής εταιρεία με 179 βάσες, διαφορετικά με 15 κλассιες ασθέντων, σε τρία σύνορα. Υπάρχουν 318,4 εκατομμύρια αυτοκίνητας στο σύνολο μας. Είχα μιλήσει την τελευταία εβδομάδα ότι πιστεύουμε ότι είμαστε σε μια κατευθυντική δρομή στο σύνολο μας, το οποίο είναι το 20-25%.

Speaker Change: Accordingly, we continue to execute on a strategic initiative by focusing on things that we can control, such as reducing leverage and modernizing our energy-efficient fleet.

Operator: Next, Mr. Desipis will give an overview of Navios Partners' segment data.

Operator: Next, Ms. Tironi will give an overview of Navios Partners' financial results.

Speaker Change: pleaseter to slide seven nvish partner is a leading publicly listed se in company with one hundred and seventy nine versually diversified in fifteen asset classes in three resectors which up three hundred and eighteen point four million of guars on our balarset i mentioned last quarter that we believe that we rein a gliding path to our target net leve range of twenty twenty five percent

Angeliki Frangou: Όπως μπορείτε να δείτε, η κυριαρχική δρομή, μέχρι το τέλος της δευτερής εβδομάδας, ήταν 31,6%. Συνεπώς, μεταφέραμε κάποια από το στόχο μας στην επιστροφή μας για την επιστροφή του κεφαλαίου μας. Under our Dividend Program, we pay a 20 cents dividend per unit annually.

Speaker Change: As you can see, our net LTV as of the end of the second quarter was 31.6%. Consequently, we turned some of our focus to returning capital to our unit holders.

Speaker Change: are there our dividend probleprogram we pay a twenty cent dilent perunity anway

Angeliki Frangou: In addition, we have a 100 million unit repurchase program. Under this program, we purchased around 200,000 units through August 12 for approximately 10 million dollars. In total, so far in 2024, we have returned around 13 million of capital to our unit holders through dividends and unit repurchases. I would also mention that the repurchase of our unit was accretive. The estimated NAV of our unit, based on our analyst average estimate, is around $140 per unit. Our per unit repurchase price averaged at about $50.

Speaker Change: in addition we have a million unit repurchase program under this program we purchase around two hundred thousand unit through august to air for approximately ten million dollars

Speaker Change: In total, so far in 2024, we have returned around 13 million of capital to our unit holders through dividends and unit repurchases.

Speaker Change: i would also mention that the grures of our unit was are creating they made a view of our unit based on alyst average estimate is around a hundred and fourteen dollars per unit pre unitary reppurchase price average about fifty donors th we cap and eighteen million dollars discount to and a which representents and net acreation of fifty nine cents the unit we have around nety million of our aliability the un purchase problem the volume and timeing of further will be subject to general market and is the

Angeliki Frangou: Thus, we captured an $18 million discount to NAV, which represents a net accretion of $0.59 per unit. We have around $90 million of availability under the unit repurchase program. The volume and timing of further repurchase will be subject to general market and business conditions, working capital requirements, and other investment opportunities, among other factors. Please turn to slide 8.

Speaker Change: working requirement and now investment of orttwoun among other factors ple ter to slide eight we shoort three vsel were another eight of sixteen point four years in that r keeping a more than fleet the say to two and two t is and one post parliament genereight sixty four point six million in gross pro in are expected to be completed in the second half of two thousand and twenty four in terms of opposition we invest it around five hundred million in their four and seven vs four new bill car after two is

Angeliki Frangou: We sold three vessels with an average age of 16.4 years in our effort at keeping a modern fleet. The sales to two MR2 tankers and one post-Panamax generated $64.6 million in gross proceeds and are expected to be completed in the second half of 2024. In terms of acquisition, we invested around $500 million in the following seven vessels. Four new-building scrubber-fitted Aframax LR2 tankers, two new-building methanol-ready scrubber-fitted 7,900 TEU container ships, one Japanese-built Ultra HandyMax previously chartered in.

Speaker Change: two new buildings meththanol already scrap fe seven thousand and nine hundred tu containerives one japanese bubuildt ultra hhandymarks

Angeliki Frangou: We also took delivery of four previously announced new-building vessels, three 5,300 TEU container ships fixed at an average rate of $37,050 net per day for 5.2 years, and one Aframax LR2 tanker fixed at $26,366 net per day for five years. We continue to add to our contracted revenue, which today is around $3.7 billion. In the second quarter and third quarter, quarter today, 2024, we added $561 million contracted revenue, of which $307.3 million was from six new-building Aframax LR2 tankers fixed at an average rate of $28,067 net per day for five years.

Speaker Change: previously charteed in we also took the he of four previously announced new building vessels three five thousand three hundred venty who cont they ives fixed at the average rate of thirty seven thousand fifty dollars net per day for five point two years and one afterha maks ella two time get fixed at twenty six thousand three hundred and sixty six net per day four five years

Speaker Change: we continue to our to contracted revenue which today is around three point seven billion in the second quarter and third quarter quarter today two thousandy and twenty four we added five hundred and sixty one million contracted revenue of which three hundred and seven point three million was from six you building upr mar lor two ten yes fixed at the anotherage rate of twenty eight thousand

Speaker Change: and $67 net per day for 5 years. $125.6 million was from 2 new buildings, 7,900 TEU container ships fixed at a rate of $43,000 net per day for 4 years and $128.1 million from 6 4,250 TEU container ships fixed at an average rate of $28,116 net per day for 2.1 years. Our operating cash flow potential remains strong. For the second half of 2024

Angeliki Frangou: $125.6 million was from two new-building 7,900 TEU container ships fixed at a rate of $43,000 net per day for four years, and $128.1 million from six 4,250 TEU container ships fixed at an average rate of $28,116 net per day for 2.1 years. Our operating cash flow potential remains strong. For the second half of 2024, contracted revenue exceeds total cash expense by $87 million. Plus, we have 7,395 remaining open index days, or 27% of available days for this period. Please turn to slide 9.

Speaker Change: contracted revenue exceeds toty cast expressed by eighty seven million plass we have seven thousand three hundred and ninety five five remaining open sixnext days twenty seven percent of our available base for this period

Angeliki Frangou: We provide an overview of the evolution of our fleet through selected metrics we feel are important. As you can see, our fleet is only slightly larger than it was in the year-end 2022 after a significant modernization program. Our fleet age remains about the same. We maximize energy efficiency by maintaining a fleet of useful vessels with the latest technology while we patiently await the development of more carbon-neutral technologies.

Speaker Change: please turn to slide nine we provide an overview of the evolution of our fate through selected merix we feel are important as you can see our fleet is only slightly larger than it was in the year end two thousand and twenty two after a significant modernization program

Speaker Change: Our fleet age remains about the same. We maximize energy efficiency by maintaining a fleet of useful vessels with the latest technology while we patiently await the development of more carbon-neutral technologies.

Angeliki Frangou: In addition, as you can see from vessel values, the steel value of our fleet has improved by about 27% since the end of 2023. I would like to point out that much of this improvement has been from volatility in the container ship segment which dropped significantly post-pandemic and has recovered in 2024 as the primary beneficiary of the Red Sea conflict and longer tonne miles. I would also note that these steel values do not give any consideration to our contracted revenue which today is about 3.7 billion.

Speaker Change: in addition as you can see from vessels values the still value our fleps has improved by about twenty seven percent since the end of two thousand and twenty three

Speaker Change: i would like to point out that much of this improvement has been from volatility in the contousship segment

Speaker Change: which dropped significantly post pdeamic and has a recarbored in two thousand and twenty four as a primary benefici of their redc conflict and longuner to mes would also note that these vales do not give any co thereation to our contracts revenue which today is about three point seven bill

Angeliki Frangou: With a stable and performing fleet, our financial metrics are strong. Our adjusted EBITDA is up 2% over the first half of 2023 and 22% over the first half of 2022. Our cash balance is approaching the reserve we have identified.

Speaker Change: with a stable and performing fleet our financial matrix are strong

Speaker Change: our adjusted deabberada is up two percent over first half of two thousand and twenty three and twenty two percent of our first half of two thousand and twenty two

Speaker Change: our cash balance is approaching there is there is z with up identified our carren and net leverage is thirty one point six percent and material improvement since the end of two thousand and twenty three and not past to reach our target net ltz of two twenty and twenty five percent

Angeliki Frangou: Our current net leverage is 31.6% and material improvement since the end of 2023 and on our path to reach our target net LTV of 20-25%. Είμαι επίσης χαρούμενης να αναφερθώ ότι έχουμε διαπραγματοποιήσει νέα διαχείρισματα διαχείρισης και διευθύνσης στην επιχείρησή μας με την παρουσιακή μας διευθυντική. Ο Efstratios θα σας παρουσιάσει αυτές τις πληροφορίες. Και τώρα μεταφέρω την παρουσίαση στον κύριο Efstratios Desypris, κύριο εργαζόμενος της Navios Partners. Efstratios.

Speaker Change: i'm also pleased to report that we have negotiated new management and and administrative arrangements to our fleet with our existing manager stratus will take you through these details

Operator: Then, Mr. Petron will provide an industry overview.

Mrs Drus: and out on the presentation over to mrs drus the seprest navious partners see operating offset strapers

Efstratios Desypris: Σας ευχαριστώ, Αγγελική, καλημέρα σε όλους. Παρακολουθείτε να προχωρήσετε στο στήριο 10. Στις Αυγούστια, οι συνεργάτες της Navios επαναλαμβάνουν τις συνεργασίες διαχείρισης και διευθυντικών υπηρεσίων με τη Navios Ship Management Inc. Οι τελευταίες συνεργασίες δημιουργήθηκαν τελικά το 2019 και εξαφανίζονται στο τέλος του 2024. Από τα νέα συνεργασίες, η Navios Ship Management θα συνεχίσει να προσφέρει υπηρεσίες διευθυντικών υπηρεσίων, βασιζόμενοι στις φορολογικές φορές, χωρίς εξωτερικές φορές.

Operator: And lastly, we'll open the call to take questions.

Mrs Drus: fing again good morning on

Operator: Now, I turn the call over to Navios Partners' Chairwoman and CEO, Ms. Angeliki Frango.

Operator: Angeliki?

Angeliki Frangou: Good morning to all of you and thank you for joining us on today's call. I am pleased with the results for the second quarter of 2024. We reported revenue of $342.2 million and net income of $101.5 million for the quarter. Earnings per common unit was $3.30. In the second quarter, regional conflict, particularly in the Red Sea, continued to impact marine transportation. The net result has been longer ton miles for the similar volume of goods as people are avoiding the Red Sea and taking the route around Africa.

Speaker Change: pleaseend ers like dense

Angeliki Frangou: It seems that the global inflation we all experience post-pandemic is subsiding. And while the U.S. and European economies are generally healthy, China's economy is challenged by a troubled real estate sector and fading domestic consumption.

Efstratios Desypris: Επιπλέον, η Navios Ship Management θα προσφέρει τεχνικές, δημιουργικές και άλλες υπηρεσίες βασιζόμενοι στις εξωτερικές φορές. 950 δολάρια κάθε μέρα, χρηματοδότηση τεχνικής διαχείρισης για τα εξωτερικά βασίλεια 1,25% κομμένης χρηματοδότησης για τα εξωτερικά βασίλεια χρηματοδότηση του ΣΝΠ 1% για αγορά ή αγορά και χρηματοδότηση για άλλες ειδικές υπηρεσίες για παράδειγμα υπηρεσία νέων βασίλειων, Οι νέες συμφωνίες της κυβέρνησης και της διοικητικής υπηρεσίας θα ξεκινήσουν τον 1 Ιανουαρίο 2025 για ένα τερμό από 10 χρόνια και θα επαναλαμβάνονται καθημερινά και θα υπάρξουν υπόδειξη για τελειώσεις ή αλλαγές της κυβέρνησης.

Angeliki Frangou: We are watching carefully to determine whether China's economic woes weaken its otherwise voracious appetite for commodities.

Speaker Change: in our ust nervious partners renew its management at misoftiive services agreements with nouse ship management the current agreement were lastly renewed two thousand and nineteen and are expiring at the end of two thousand andtwenty four based on the new agreements naviousive management will continue to provide at theministertrative services

Angeliki Frangou: Please turn to slide 7.

Angeliki Frangou: As you can imagine, with China's economic stalling, we have a cautious view.

Angeliki Frangou: Navios Partner is a leading publicly listed shipping company with 179 vessels, diversified in 15 asset classes in three sectors. We have $318.4 million of cash on our balance sheet.

Angeliki Frangou: But we are also cautious because of geopolitical considerations.

Angeliki Frangou: I mentioned last quarter that we believe that we are in a gliding path to our target net leverage range of 20-25 percent. As you can see, our net LTV as of the end of the second quarter was 31.6 percent.

Angeliki Frangou: The conflict in Ukraine continues with no resolution in sight.

Angeliki Frangou: Consequently, we turn some of our focus to returning capital to our unit holders. Under our dividend program, we pay $0.20 dividend per unit annually. In addition, we have a 100 million unit repurchase program. Under this program, we purchased around 200,000 units through August 12 for approximately 10 million dollars. In total, so far in 2024, we have returned around 13 million of capital to our unit holders, through dividends and unit repurchases. I would also mention that the repurchase of our unit was accretive.

Angeliki Frangou: The Middle East is on the edge, and things can go badly quickly if some sort of new equilibrium is not established.

Angeliki Frangou: The estimated NAV of our unit, based on our analyst's average estimate, is around 140 dollars per unit.

Angeliki Frangou: Accordingly, we continue to execute on our strategic initiative by focusing on things that we can control, such as reducing leverage and modernizing our energy-efficient fleet.

Angeliki Frangou: Our per unit repurchase price averaged at about 50 dollars. Thus, we, captured an 18 million dollar discount to NAV, which represents a net accretion of 59 cents per unit. We have around 90 million of availability under the unit repurchase program. The volume and timing of further repurchase will be subject to general market and business conditions, working capital requirements, and other investment opportunities, among other factors.

Angeliki Frangou: Please turn to slide 8.

Angeliki Frangou: We sold three vessels with an average age of 16.4 years, in our effort at keeping a modern fleet. The sales to two MR2 tankers and one post-Panamax generated 64.6 million in gross proceeds and are expected to be completed in the second half of, 2024.

Angeliki Frangou: In terms of acquisition, we invested around 500 million in the following seven vessels. Four new-building scrubber-fitted Aframax LR2 tankers, two new-building methanol-ready, scrubber-fitted 7,900 TEU container ships, one Japanese-built Ultra Handy Max previously chartered in.

Speaker Change: based on a locable cost with no extraise

Speaker Change: Additionally, Navioship Management will provide technical, commercial and other services based on the following fee structure.

Speaker Change: $950 per day Technical Management Fee for Owned Vessels 1.25% Commercial Fee on Gross Revenues S&P Fee of 1% on Purchase or Sale Price and fees for other specialized services for example Supervision of New Building Vessels

Speaker Change: the new management in our ministertric services agreements will concommention january iff two thousand and twenty-five for a term of ten years renewing annually and is subject to a few for terlimination change of control

Efstratios Desypris: Οι συμφωνίες εφαρμογήθηκαν και εφαρμογήθηκαν από το Συμβουλικό Κοινοβούλιο της Διευθυντικής Κοινοβουλίας των συμπαίκτες του Navios. Το Συμβουλικό Κοινοβουλίο χρησιμοποιήθηκε τον Βόρτσον Φάρλυ και τον Βίλιαμς ως σχεδιαστές λειτουργικών και τον Κ.Π.Μ.Γ. ως σχεδιαστές οικονομικών που εφαρμογήθηκαν της κυβέρνησης. Please turn to slide 11, which details our operating 3 carge flow potential for the second half of 2024.

Speaker Change: the agreements were netiated and apved bythe conference committe of the board of the ctor of v partners the conflictts committee used also farly and williams as their legal advisors and keeppmgs a financeal advisors who is the deftial opinion

Speaker Change: please turnend the slide leven with details are operating threeree cash flow potential for the second half of two thousand and twenty four

Efstratios Desypris: Εφαρμόσαμε 73% των εφαρμοστικών ημέρων, με μια κοινωνική κεφαλή του 26.245 δολάρια την ημέρα. Σύντομα, η εφαρμοστική πληροφορία υπερπέτει την οικονομική εξέγερση με 87.000.000 δολάρια. Και έχουμε 7.395 εφαρμοστικές ημέρες που θα πρέπει να προσφέρουν επιπλέον πληροφοριακή πληροφορία. Στη δεξιά πλευρά της σκηνής, προσφέρουμε τα 27.878 μέρες διαθέσιμης κατασκευής ώστε να μπορείτε να κατασκευάσετε την ειδική σας ανοιχτή αναλύση. Pls turn to slide 12, Είμαστε πάντα να επεξεργαστούμε την πόλη, ώστε να διατηρήσουμε ένα νέο προφίλ.

Speaker Change: we fixed seventythree percent of available days at the net average rate of twenty-six twenty-six thousand two hundred and forty-five dollars per day in short contracted revenue exceed totalcast expense by eighty seven million

Speaker Change: and we have seven thousand and three hundred and ninety five remaining oper index ing days that should provide substant additional freecash flow

Speaker Change: on the right side of this slide we provide our twenty-seven thousand and eight hundred andseventy-eight avapable days by vesessels dri so that you can perform your own sensitivity analysis

Speaker Change: please turnend to slide well we are always renewwing refle so that we maintain a youngun profile it is part of our strategy to to reduce our travebal footprint by modernizing ouroutplid benefiting from newer technologies and ne covesations with green characteruristics

Efstratios Desypris: Είναι μέρος της στρατηγικής μας για να χαλαρώσουμε το καρβόνο μας με τη μοντερνοποίηση της πόλης μας, με βοήθεια από νέες τεχνολογίες και οικογένειες με καλύτερες χαρακτηριστικές. Στην περίοδο του Q2 και του Q3 μέχρι σήμερα, πήραμε εφαρμογή από τέσσερις βασίλειες. Τρία εφαρμογή 5.300 τετράγωνα τετράγωνα, όλες εφαρμογμένες για ένα ανάπτυξο 5.2 χρόνια, με ένα ανάπτυξο τετράγωνα διεθνής πληροφορίας των 37.050 δολάρια κάθε μέρα, και ένα αφρομακτικό βασίλειο LR2 που έχει εξατμιστεί για 5 χρόνια σε 26.366 δολάρια νερή.

Angeliki Frangou: We continue to add to our contracted revenue, which today is around $3.7 billion. In the second quarter and third quarter today, 2024, we added $561 million contracted revenue, of which $307.3 million was from six new-building Aframax LR2 tankers fixed at an average rate of $28,067 net per day for five years. $125.6 million was from two new-building 7,900 TEU container ships fixed at a rate of $43,000 net per day for four years, and $128.1 million from six 4,250 TEU container ships fixed at an average rate of $28,116 net per day for 2.1 years.

Angeliki Frangou: Our operating cash flow potential remains strong. For the second half of 2024, contracted revenue exceeds total cash expense by $87 million.

Speaker Change: in q two in q three to date we took delivery fourions

Angeliki Frangou: Plus, we have 7,395 remaining open index days, or 27% of available days for this period.

Speaker Change: threety five thousand three habit t you contain er six all satteter out for an average of five point two years at an average net daily rate of fifty-seven thousand and fifty dollars per day

Speaker Change: one e or two offfrom max vessel which has been trutteled out for five years at twenty-six thousand three hundred and sixty-six dollars net per day

Efstratios Desypris: Μετά από αυτές τις εφευρείες, έχουμε 28 νέους νομιλοποιημένους καρπούλους που εφευρεύονται στην πλοίδα μας μέχρι το 2028, αντιμετωπίζοντας 1,8 δις τοπικής αγοράς. Στις καρπούλες μεταξύ των καρπούλων έχουμε 8 καρπούλων να εφευρεθούν, με τοπική αγορά του τελείως από περίπου 0,7 δις. Έχουμε αφιερωθεί αυτό το ρίσκο με πλήρους χρησιμοποιημένους τεχνικούς τεχνικών τεχνικών δημιουργώνοντας περίπου 0,8 δις πληροφορίας, με πληροφορία με περίπου 6,7 χρόνια. Στην εργασία Τάγκετ έχουμε 20 βασίλεια να εφαρμοστούν για ένα τοταλό κοσμικό 1,1 δισεκατομμύρια. Έκαναμε 16 από αυτές τις βασίλειες για 5 χρόνια, δημιουργώντας συγκεντρωμένες πληροφορίες από περίπου 0,8 δισεκατομμύρια. Είχαμε επίσης την ευκαιρία να αντιμετωπίσουμε μεγαλύτερες βασίλειες.

Speaker Change: following these deliveries we have twenty-eight additional new building vessels delivering into our fet through two thousand and twentyeieightth representing one point in billion of total acquisition price

Speaker Change: in containerips we have eight vessel to be delivered with thetotal acquisition ppliice of about z seven billion we have mitigated this risk with long-term credit working surts generating about about point eight billion in revenue over a six point seven year over its sfl duration

Angeliki Frangou: Please turn to slide 9.

Angeliki Frangou: We provide an overview of the evolution of our fleet through selected, metrics we feel are important.

Angeliki Frangou: As you can see, our fleet is only slightly larger than it was in the year-end 2022 after a significant modernization program.

Angeliki Frangou: Our fleet age remains about the same. We maximize energy efficiency by maintaining a fleet of useful vessels with the latest technology while we patiently await the development of more carbon-neutral technologies. In addition, as you can see from vessel values, the steel value of our fleet has improved by about 27 percent since the end of 2023. I would like to point out that much of this improvement has been from volatility in the container ship segment, which dropped significantly post-pandemic and has recovered in 2024 as a primary beneficiary of the Red Sea conflict and longer ton miles.

Speaker Change: in the tinket space we have twenty vessel to be delivered for a total price approximately one point one billion which are out sixteen of these vessels for anotherage period of five years generating aggregate contracted revenue over about point eight billyears

Angeliki Frangou: I would also note that these steel values do not give any consideration to our contracted revenue, which today is about 3.7 billion.

Angeliki Frangou: With a stable and performing fleet, our financial metrics are strong. Our adjusted EBITDA is, up 2 percent over the first half of 2023 and 22 percent over the first half of 2022. Our cash balance is approaching the reserve we have identified. Our current net leverage is 31.6 percent, a material improvement since the end of 2023 and on a path to reach our target net LTV of 20-25 percent. I am also pleased to report that we have negotiated new management and administrative arrangements to our fleet with our existing manager.

Efstratios Desypris: Το 2024, έχουμε αγοράσει 7 βασίλειες, με μια μεταγραφική ηλικία 17,1 χρόνια, για 157,2 δισεκατομμύρια. Ταυτόχρονα, εξετάστηκαμε τις αγορατικές επιλογές στις 5 βασίλειες της Τσάτα Ερήνης, με μια μεταγραφική ηλικία 8 χρόνια, για ένα κοινό κόσμο 142 δισεκατομμύρια. Μεταφράζοντας στη σειρά 13, συνεχίζουμε να ασφαλίσουμε την εργασία μακροπρόσθεσης για την βασίλειά μας. Στην περίοδο 2 και περίοδο 3, έχουμε δημιουργήσει περίπου 560 δισεκατομμύρια επιλογές. Περίπου 305 δισεκατομμύρια έρχονται από την βασίλειά μας, και περίπου 162 δισεκατομμύρια ακόμη και περίπου 255 δισεκατομμύρια από την συγκουmnία μας.

Speaker Change: we have also been opportunistically plac what ular basins

Speaker Change: in two thousand and twenty four we have solld seven vessels with aanotherverage age of 'seeen point one years for one hundred and fifty seven point two million

Speaker Change: at the same time we exercise the peter options on five sat arians apane bbuildill buss with an average age of eight years for totontal priice of hundred andfory two year moving to slide thireteen we continue to secure long-term emloyment for our le in q two and q three to date we have created about five thousand and sixty million additional contractors having

Speaker Change: about three hundred and five million comes from our tangger clip and about two hundred and fifty-five million from our containencii

Efstratios Desypris: Το μεγαλύτερο εφαρμογή της σεolutions γίνεται aos 3,7 λιτών. 1,4 λιτές αφορά στην κ Daniellerators φυκή μας, 0,4 λιτας αφορά στην FSx βασίλεια μας και 1,9 λιτάς αφορά την μυστική ηλικία. Οι τράπεζες εξελίξουν μέχρι το 2037 με μια διαφορετική ομάδα αντίπαλων ποιότητας. Σχεδόν το 50% της συμμετοχής μας εξελίξει τις επόμενες δύο χρόνια. Θα παρουσιάσω τώρα τη φωνή στον Ερι Τσιρόνι, το CFO μας, που θα σας πάρει μέσα στις υπέροχες οικονομίες. Σας ευχαριστώ, Efstratios, και καλημέρα σε όλους.

Speaker Change: our total contracedive revenue amongts to three point seven billion

Speaker Change: one point four billion relates to our tanget fleet point four billion rerelates to our dribal fid and one point nine billion relates to our containousasips

Speaker Change: chararterss are extending two thousand and thirty seven with a diverse group of quality counterparties

Speaker Change: about fifty percent of our contr the revenue is expected to be in the next few years

Angeliki Frangou: Stratos will take you through these details.

Speaker Change: i know was the court twent er which will take you through the national highlights thank you ther with ning i will brriefly vie are another financial results for the second quarter and first half of two thousand andtwenty four the financial information including the p lease in the summar ized slide presentation available on the company's website moving to the earnings highlights on slide fourteen total revenue for the second quarter of two thousand and twenty four slightly decrees to three hundred forty two me compared to three hundred forty seven million for the same period in two thousand and twenty three you to lower combin time we will rate and available days

Angeliki Frangou: I now turn the presentation over to Mr. Stratos Desypris, Navios Partners' Chief Operating Officer.

Operator: Stratos?

Efstratios Desypris: Thank you, Angeliki, and good morning all.

Erifili Tsironi: Θα παρουσιάσω γρήγορα τις αποτελέσμενες μας οικονομικές αποτελέσεις για την δεύτερη εβδομάδα και την πρώτη μισή του 2024. Η οικονομική πληροφορία συμπεριλαμβανούνται στο πλαίσιο λίστο και συγκεντρωθεί στην παρουσιακή παρουσιακή παρουσιακή Μεταφέροντας στις υπέροχες οικονομικές αποτελέσμενες στο πλαίσιο 14, η οικονομική πληροφορία για την δεύτερη εβδομάδα του 2024 λίγο χαλαρώθηκε στους 342 εκατομμύρια, αντιμετωπίζοντας τους 347 εκατομμύρια για την ίδια περίοδο του 2023 διευθύνοντας να χαλαρώσουμε την δεύτερη οικονομική παρουσιακή παρουσιακή παρουσιακή πληροφορία και τις εφαρμογές.

Efstratios Desypris: Please turn to slide 10.

Efstratios Desypris: Παρακαλώ συνεχίστε με το στήριο 11, ο οποίος προτείνει το δεύτερο μισθό του 2024.

Efstratios Desypris: In August, Navios, Partners renewed its management and administrative services agreements with Navios Ship Management, Inc. The current agreements were lastly renewed in 2019 and are expiring at the end of 2024. Based on the new agreements, Navios Ship Management will continue to provide administrative, services based on allocable costs with no extra fees. Additionally, Navios Ship Management will provide technical, commercial and other services based on the following fee structure. $950 per day technical management fee for all vessels, 1.25 percent commercial fee on, gross revenues, S&P fee of 1 percent on purchase or sale price, and fees for other specialized services, for example supervision of new building vessels. The new management and administrative services agreements will commence on January 1, 2025, for a term of 10 years, renewing annually, and is subject to a fee for termination or change of control.

Efstratios Desypris: Εφαρμόσαμε 73% των εφαρμοστικών ημέρων, με μια κερδηλική κερδηλότητα 26.245 δολάρια.

Efstratios Desypris: The agreements were negotiated and approved by the Conflicts Committee of the Board of, Directors of Navios Partners. The Conflicts Committee used Watson, Farley & Williams as their legal advisors, and KPMG as their financial advisors, who issued a fairness opinion.

Efstratios Desypris: Σύντομα, η κερδηλική πληροφορία υπερβάλλει την οικονομική φορά με 87 εκατομμύρια δολάρια.

Efstratios Desypris: Και έχουμε 7.395 δεσμεύοντες δεσμεύοντες που θα πρέπει να προσφέρουν επιπλέον δεσμεύοντες.

Efstratios Desypris: Στη δεξιά πλευρά του στήριο, προσφέρουμε τα 27.878 δεσμεύοντες που υπάρχουν, ώστε να μπορείτε να δημιουργήσετε την εισαγωγική σας αναλύση.

Efstratios Desypris: Παρακαλώ συνεχίστε με το στήριο 12.

Efstratios Desypris: Πάντα αναπτύσσουμε το στήριο, ώστε να διατηρήσουμε ένα νέο προφίλ.

Efstratios Desypris: Είναι μέρος της στρατηγικής μας για να χαλαρώσουμε το καρμόνι μας, με την εξουσία της πλήρωσης μας, με βοήθεια για νέα τεχνολογίες και εκοπέλευση με καλύτερα προφίλ.

Efstratios Desypris: Στην αρχή των τετραγωγών, έχουμε 20 σπίτια να εφαρμογήσουν, με το κομμάτι αγοράσης που έχει περίπου 1.1 δολάρια.

Efstratios Desypris: Στη δεξιά πλευρά και στη δεξιά πλευρά μέχρι σήμερα, έφεραν 4 πέντε πέντε πέντε πέντε τετράγωνα τετράγωνα, όλα που καταφέραν για ένα επίπεδο 5.2 χρόνια, με ένα επίπεδο αμερικανό δεξιότητας από 37.050 δολάρια στη μέρα.

Efstratios Desypris: Έχουμε αποκλειστήσει 16 από αυτές τις σπίτια, με τετράγωνα περίπου 5 χρόνια, που δημιουργούν συγκεκριμένα συμφωνικά αγοράση, με περίπου 0.8 δολάρια.

Efstratios Desypris: Ένα πέντε πέντε πέντε πέντε τετράγωνα τετράγωνα, το οποίο δημιουργήθηκε για πέντε χρόνια, με 26.366 δολάρια στη μέρα.

Efstratios Desypris: Είχαμε επίσης την ευκαιρία, να αντιμετωπίσουμε παραπάνω σπίτια.

Efstratios Desypris: Μετά από αυτές τις εφαρμογές, έχουμε 28 επιπλέον νέα στρατηγικές πέντε πέντε πέντε πέντε τετράγωνα, που εφαρμογούν στη στρατηγική μας μέχρι το 2028, αντιμετωπίζοντας 1.8 δισεκατομμύρια τετράγωνα.

Efstratios Desypris: Στην εποχή του 2024, έχουμε αγοράσει 7 σπίτια, με τετράγωνα περίπου 17.1 χρόνια, με 157.2 δολάρια.

Efstratios Desypris: Στα πέντε πέντε πέντε τετράγωνα, έχουμε 8 σπίτια να εφαρμογήσουν, με το κομμάτι αγοράσης που έχει περίπου 0.7 δολάρια.

Efstratios Desypris: Στην ίδια στιγμή, εξελίξαμε τις αγοράσεις σε 5 τσάτεριν γιαπανούς σπίτια, με μεγάλη αγοράση 8 χρόνια, με τετράγωνα περίπου 142 δολάρια.

Erifili Tsironi: Η συνδεδεμένη δεξιότητα της δεξιότητας για την δεύτερη εβδομάδα του 2024 βρίσκεται στις 23.384 χιλιόμετρα. Σχετικά με τη διεθνή επιτυχία, η TCE για την κυριαρχική πλατεία μας αυξήθηκε από 14% στους 17.959 χιλιόμετρα, αντιμετωπίζοντας την ίδια περίοδο το 2023. Συνδέοντας, η δεξιότητα της TCE για τα καρδιακά κατασκευάσματα ήταν περίπου 15% και 10% χαμηλότερα, αντιμετωπίζοντας. Η TCE για τα καρδιακά κατασκευάσματα βρίσκεται στις 30.239 χιλιόμετρα και για τα καρδιακά κατασκευάσματα, στις 27.816 χιλιόμετρα για την δεύτερη εβδομάδα του 2024. Η ΕΕ και η ΕΠΕ εξηγήθηκαν, όπως εξηγήθηκε στο βιντεο, στο βιντεο.

Efstratios Desypris: Έχουμε αποκλειστήσει αυτήν την αρχή, με τεχνικές στρατηγικές πέντε πέντε τετράγωνα, που δημιουργούν περίπου 0.8 δολάρια στη φορά, πέρα από μια στρατηγική αμερική με 6.7 χρόνια.

Efstratios Desypris: Μεταφράζοντας στη σειρά 13, συνεχίζουμε να αυξηθούμε την εργασία τεράστιου για την σπίτια μας.

Efstratios Desypris: Στην εποχή 2 και στην εποχή 3, έχουμε δημιουργήσει περίπου 560 δολάρια επιπλέον συμφωνικά αγοράση.

Efstratios Desypris: Περίπου 305 δολάρια έρχεται από την τύχη τους, και περίπου 255 δολάρια από τα αγοράσματα.

Efstratios Desypris: Το συμπλέον χρηματοδότημα μας, λαμβάνει 3,700,000,000nat.

Efstratios Desypris: 1,4 δολάρια προσχωρεί chaos, 0,40 δολάρια προσχωρεί η κρύο-αγαfashioned לιitié και 1,900,000,000 δολάρια προσχωρεί τα αγοράσματα μας.

Efstratios Desypris: Τα τσάτερες πέρχεται μέχρι το 2037, με ένα ετοιμάζοντας εζάγος από σχετικοποιητικές αν тайγοντες.

Speaker Change: are combined time qu val eight for the second quarter of twotwentthousand and twenty four two twenty three thousand three hundred eighty four per day in terms of sector performance that c for drive three increase by fourteen percent to seventeen thousand nine hundred fifty nine per day compared to the same period in twent thousand and twenty three in contract are contain and ten get t c rate were approximately fifteen and ten percent over respect t c rate for our containers two thirty thousand two hundred thirty nine per day and four hour ten at twenty seven thousand eight hundred sixteen per day for the second quarter of twotwentthousand and twenty four nine teen you

Efstratios Desypris: Περίπου το 50% του συμπλέον χρηματοδότημα μας, εξετάζεται να κερδίσει τα επόμενα δύο χρόνια.

Operator: Τώρα παρουσιάζω τη φωνή στον Έρη Τσιρόνι, το CFO μας, ο οποίος θα σας πάρει μέσα στις υπέροχες οικονομίες.

Operator: in 2024, Earnings Conference Call.

Erifili Tsironi: Ακολουθώντας αυτές τις αριθμοί, η ατμόσφαιρα επιδα για το Q2 2024 ατμόσφαιρα από 1,7 εκατομμύρια στο 190 εκατομμύρια, αντιμετωπί στο Q2 2023. Η ατμόσφαιρα οικονομικής πληροφορίας για το Q2 2024 ατμόσφαιρα από 8 εκατομμύρια στο 94 εκατομμύρια, αντιμετωπί στο Q2 2023. Η ατάγηση ήταν κυρίως διευθυντή από την ατάγηση της ασφαλής επιδότησης και το 10,6 εκατομμύρια εφαρμογή από την ατραγωγή και την αξιωματία, παρότι και το 4,3 εκατομμύρια εφαρμογή από την αρνητική ασφάλεια των επιπτώσεων και την αυξή των εισοδημιών.

Speaker Change: as explained in the sl fo no excluding this amounts adjust day for two and twenty four threees by one point seven million two one hundred nineinety million compared to q two two thousandy and twenty three j the nine teen come for two to twotwentthousand and twenty four three by eight million to ninety four million compared to two to y and twenty three the degrees was pr marily with you to the decrease just bit and the ten point six million negative deeffect from depreciation amonetization despite the four point three million posit fect from the reduction interest rate expense and the increase in interest income revenue

Operator: With us today from the company, our Chairwoman and CEO, Miss Angeliki Frangou, Chief Operating Officer, Mr. Stratios Desypris, Chief Financial Officer, Mrs. Erif Tironi, and Vice-German, Mrs. Ted Petrone. As a reminder, this conference call has been webcast. To access the webcast, please go to the Investors section of Navios Partners website at www.navios-mlb.com. You'll see the webcasting link in the middle of a page and a copy of the presentation referenced in today's Earnings Conference Call will also be found there.

Operator: As a reminder, this conference call has been webcast.

Operator: To access the webcast, please go to the Investors section of Navios Partners website at www.navios-mlb.com.

Operator: You'll see the webcasting link in the middle of a page and a copy of the presentation referenced in today's Earnings Conference Call will also be found there.

Erifili Tsironi: Το τελικό πλήρος για την πρώτη μισή του 2024 αυξήθηκε από 4,2 εκατομμύρια στο 661 εκατομμύρια, αντιμετωπίζοντας την ίδια περίοδο το 2023. Η αυξή των εισοδημιών ήταν κυρίως το αποτέλεσμα μιας μεγαλύτερης διευθυντικής ασφαλής επιδοτησης, παρότι υπήρχαν μεγαλύτερες εφαρμογές.

Operator: Now, I will review the Safe Harbor Statement.

Operator: Now, I will review the Safe Harbor Statement. This conference call could contain four looking statements within the meaning of the Private Security's Litigation Reform Act of 1995 about Navios Partners. Four looking statements are statements that are not historical facts. Such four looking statements are based upon the current beliefs and expectations of Navios Partners Management and are subject to risks and uncertainties which could cause accurate results to differ materially from the four looking statements.

Operator: This conference call could contain four looking statements within the meaning of the Private Security's Litigation Reform Act of 1995 about Navios Partners. Four looking statements are statements that are not historical facts. Such four looking statements are based upon the current beliefs and expectations of Navios Partners Management and are subject to risks and uncertainties which could cause accurate results to differ materially from the four looking statements. Such risks are fully discussed in Navios Partners' filings with the Securities and Exchange Commission. The information, therefore, herein should be understood in light of such risks.

Speaker Change: for the first half of twotwenty twenty four increase by four point two million to six hundred sixty one million compared to the same period in twotwentthousandy twenty three the ingreasees in revenue was mainly a result of higher combined c rate this pite lower available days are combined c rate for the first half of twotwenty and twenty four one twenty two thousand four hundred forty eight twent in inttense of sector of performanceth t c rate for drive back fleet increased by twenty one percent to sixteen thousand and ninety per day compared to the same period twotwenty twenty three in contract are contain and p c rate one approximately fifteen and six percent

Erifili Tsironi: Η διευθυντική ασφαλής επιδοτησης για την πρώτη μισή του 2024 ήταν 22,448 εκατομμύρια. Σχετικά με την επιδοτική επιδοτηση, η διευθυντική ασφαλής επιδοτηση για την αρνητική ασφαλής επιδοτηση μεγαλύτερη από 21% στο 16,090 εκατομμύρια, παρά το ίδιο τρόπο το 2023. Συνδέοντας, η αυξή των εισοδημιών και της αρνητικής επιδοτησης για την πλήρη εφαρμογή ήταν περίπου 15% και 6% αρνητικά.

Operator: Such risks are fully discussed in Navios Partners' filings with the Securities and Exchange Commission. The information, therefore, herein should be understood in light of such risks. Navios Partners does not assume any obligation to update the information contained in this conference call.

Operator: Navios Partners does not assume any obligation to update the information contained in this conference call.

Erifili Tsironi: Η αυξή των εισοδημιών για τις πλήρες εφαρμογές ήταν 30,037 εκατομμύρια και για τις πλήρες εφαρμογές για την πλήρη εφαρμογή ήταν 27,952 εκατομμύρια για την πρώτη μισή του 2024. Η αυξή των εισοδημιών για την πρώτη μισή του 2024 αυξήθηκε από 7.000.000 εκατομμύρια στο 354.000 εκατομμύρια, παρά το ίδιο τρόπο το τελευταίο χρόνο. Το ανάγκος εντελευτικού εισοδημοκρατίας για την πρώτη μιλιά του 2024, αποδεικνύθηκε από 2 εκατομμυρίους στο 166 εκατομμυρίους. Εκτός από την αυξή στην ανάγκη της διεσκευής, η αντικείμενη εισοδημοκρατία μας επηρεάθηκε με έναν 11,5 εκατομμυρίο αυξή στην αμοιβολογική δραστηριοποιήση της τρίτης κατασκευής Dry Dock Special και άλλων κερδοκοινωνικών εργασίας.

Speaker Change: respectedly t c rate for our containers two the twenty thousand and thiry seven per day and four hour time years at twenty seven nine hundred and fifty two per day for the first half of two thousand and twenty four adjusted day bitida for the first half of two thousand and twenty four increased by seven million to three hundred fifty four million compared to the same period last year

Operator: The agenda for today's call is as follows.

Angeliki Frangou: First, Ms. Frankel will offer opening remarks.

Efstratios Desypris: Next, Mr. Decippis will give an overview of Navios Partners' segment data.

Erifili Tsironi: Next, Mr. Roni will give an overview of Navios Partners' financial results.

Ted Petrone: Then, Mr. Patron will provide an industry overview. And lastly, we'll open the call to take questions.

Speaker Change: ad just ed nine income for the first half of two and twenty four degrees by two million to one hundred sixty six million despite the increase the a are net come was negative affected by eleven point five million increase in amonetization of the thir dry do special caution other capitalized items a six for six million decrease in the positive impact of the motization of favor police and at three point six million increase in the deciation and onetiization of intible assets above degrees was partally mitigated by nine point four million degrees in interest expense and at two point nine million decrees in interest ingincome the de s per com mon on

Angeliki Frangou: Now, I turn the call over to Navios Partners' chairwoman in CEO, Ms. Angeliki Frankel. Angeliki. Good morning to all of you and thank you for joining us on today's call.

Ted Petrone: Then, Mr. Patron will provide an industry overview.

Operator: And lastly, we'll open the call to take questions.

Angeliki Frangou: I am pleased with the results for the second quarter of 2024. We reported revenue $342.2 million in that income of $101.5 million for the quarter. Endings per common unit was $3.30. In the second quarter, regional conflict, particularly in the Red Sea, continued to impact marine transportation. The net result has been longer-term miles for the similar volume of goods as people are avoiding the Red Sea and taking the route around Africa. It seems that the global inflation, we all experience, post-pandemic, is exciting.

Erifili Tsironi: Ένα 6,6 εκατομμυρίο αυξή στην πολιτική επιτυχία της αμοιβολογικής δραστηριοποιήσης των αντιδρούμενων τέρνων και ένα 3,6 εκατομμυρίο αυξή στην αντιδράσεις και αμορτιζοήση εντελείων ασθέσεων. Το αυξήσιο αυξήσης είχε αλλαγή εντελώς με ένα 9,4 εκατομμυρίο αυξή στην επίθεση ενδιαφέρον και ένα 2,9 εκατομμυρίο αυξή στην εμπειρία ενδιαφέρον. Εργασιακά κεφάλαια, κάθε κοινωνικό κομμάτι, για την πρώτη μισή του 2024, για $5,38. Όπως είδαμε αρχικά, έχουμε συμφωνήσει για να αναφερθούμε στο νέο συμφωνίο του κυβερνητικού μας, που θα εξαφανίσει στο τέλος του χρόνου.

Angeliki Frangou: Now, I turn the call over to Navios Partners' chairwoman in CEO, Ms. Angeliki Frankel.

Angeliki Frangou: Angeliki.

Angeliki Frangou: Good morning to all of you and thank you for joining us on today's call.

Speaker Change: for the first half of twenty twenty four five point thirty dollars as mentioned we have aged to new or management agreement exp at the end of the year based on budgets for twotwent thousand and twenty five eight expenses we don't expect material financial impact from the terms of the new management agreement compared to the prior agreement ten toslide fifteen i we befly discussed some key balanance et data as june twotwentthousand and twenty four cars and c qu including restricted cars and time deposits in excess of three months but three hundred eighteen million during the first half of twentthousand and twenty four we paid one hundred forty five point five

Angeliki Frangou: I am pleased with the results for the second quarter of 2024. We reported revenue $342.2 million in that income of $101.5 million for the quarter.

Erifili Tsironi: Αποδεκτωμένου από τις προσφυγικές κατασκευές για τα χρησιμοποιημένα εξέγερση 2025, δεν εξετάζουμε την υποστηρική και οικονομική επιτυχία από τις τερματοφόρουσες του νέου συμφωνίου κυβερνητικού, αντιμετωπίσοντας το προηγούμενο συμφωνίο. Παρουσιάζοντας στο στήριο 15 θα συζητήσω συγκεκριμένως μερικές βασικές δεδομένες δεξιότητες. Όπως και το 30 Ιουνίου 2024, ο χρήματος και το χρήματος αντιμετωπισμός, ανεξάρτητα το χρήμα του χρήματος και του χρόνου, υπέροχα από τρία μήνες, ήταν 318 εκατομμύρια. Στην πρώτη μισή του 2024, πληρώναμε 145,5 εκατομμύρια χρέους σχεδιασμένων πληροφοριών προσφυγικών εισόδημων και καπιταλισμένων χρησιμοποιημένων υπό το νέο πρόγραμμα σχεδιασμού.

Angeliki Frangou: Endings per common unit was $3.30.

Angeliki Frangou: And while the US and European economies are generally healthy, China's economy is challenged by a troubled real estate sector and fading domestic consumption. We are watching carefully to determine whether China's economic wealth weaken its otherwise voracious appetite for commodities. As you can imagine, with China's economic stalling, we have a cautious view. But we are also cautious because of geopolitical considerations.

Angeliki Frangou: In the second quarter, regional conflict, particularly in the Red Sea, continued to impact marine transportation. The net result has been longer-term miles for the similar volume of goods as people are avoiding the Red Sea and taking the route around Africa.

Angeliki Frangou: The conflict in Ukraine continues with no resolution inside, the middle east is on the edge, and things can go badly quickly if some sort of new equilibrium is not established.

Speaker Change: million net related deb of preade deliver installments and capitallight expenses under a new building program we conclude the sale of four vessels for ninety one point four million net adding about six point seven million cars after the repayment of the spective debt

Erifili Tsironi: Τελειώσαμε την αγορά των τέσσερων για 91,4 εκατομμύρια νετ, προσθέτοντας περίπου 6,7 εκατομμύρια καρδιά μετά την επαφή των αντιμετωπισμένων χρέους. Οι ολοκληρωμένες κατασκευές, ειδικά η τελευταία πορτιά της μεταφέροντης φοράς, αυξήθηκαν 1,97 δις, κυρίως ως αποτέλεσμα της εφαρμογής των 5 νέων κτήρων, για τις οποίες οι αντιπροσωπικές εφαρμογές εφαρμογήθηκαν με χρέος. Η κατασκευή των χρήσεων με το τελος του τελευταίου χρήματος αυξήθηκε στο 33,6%. Το στήριο 16 ενθαρρύνει το προφίλ μας για χρέους.

Angeliki Frangou: Accordingly, we will continue to execute on a strategic initiative by focusing on things that we can control, such as reducing leverage and modernizing our energy-freezing fleet. Please turn to slide 7. Navier's partner is a leading publicly listed shipping company with 179 vessels diversified in 15 asset classes in three sectors. We have 318.4 million of cash on our balance sheet. I mentioned last quarter that we believe that we are in a gliding path to a target net-level range of 20-25 percent.

Speaker Change: total long-term borrowings including the current portion net of deferred feese increased one point ninety seven billion many as a result of the delivery of five new big invessels for which the respected deliver installments were paid with debt net debt to book upatitalization decreas to thirty three point six percent

Erifili Tsironi: Προσπαθούμε να διευκολύνουμε τις βοήθειες μας για το βοήθειο μεταξύ χρέους της τράπεζας και των υποστηρίξεων, ενώ το 34% της χρέας μας έχει αυξήσει την ενδιαφέρονση σε μια ασφαλή ατμόσφαιρα των 5,6%. We also tried to mitigate part of the increased interest rate cost, having reduced the average margin for our floating rate debt to 2.2%, while the average margin for the floating rate debt of our new building program is 1.8%. Το προφίλ της Armaturis δεν έχει σημαντικούς μπαλούνες σε κανένα χρόνο.

Speaker Change: slide sixteen highlights are that profile we continue to diversify founding ressources between punk and lecent structures while thirty four percent of our debt a sixteen cent at the average rates of five point six percent we also tryed to mitigate part of the increased interest rate cost having reduced the average margin for a floating debt to two point two percent while the average margin for the floating r date of our new begatment program is one point eight percent

Angeliki Frangou: As you can see, a net-LPV, as of the end of the second quarter, was 31.6 percent. Consequently, we turn some of our focus to determining capital to our unit holders. Under a dividend problem, we pay a 20 cents dividend per unit annually. In addition, we have a 100 million unit repurchase program. Under this program, we purchase around 200,000 units through August 8 for approximately 10 million dollars. In total, so far in 2024, we have returned around 13 million of capital to our unit holders through dividends and unit repurchases.

Speaker Change: ar matu profile the target with no significant baluums view in any single year

Erifili Tsironi: Στο Ιουνίο του 2024, εισήρθαμε σε μια νέα, λειτουργημένη και μεγαλύτερη εργασία, με μια αγορατική τράπεζα για μέχρι 95 εκατομμύρια χρήματα, ώστε να επωφελήσουμε την παρουσίαση της παρουσίασης των δύο βασίλειων και να επωφελήσουμε μέρος της αγοράς των τέσσερων βασίλειων. Η εργασία έχει 5 χρόνια τερματοφόρμακης και υποστηρίζει την ενδιαφέρονση ενδιαφέροντας 1,75 βασίλεια χρηματοφόρμακης πέρανου. Μεταφράζοντας στο στήριο 17, μπορείτε να δείτε τις ειδικές μας πρωτοβουλίες.

Speaker Change: in junetwo thousand and twenty four we entered into a new reducing revolving facility with a commercial band for up to ninety five million in order to refinance the existing deadness of two vessels

Speaker Change: and to finus part of the acquisition cost of fourign dribal bases the great facility has five years term and very sydr at compounded softa plus one seventy-five basis points thereammo

Angeliki Frangou: I would also mention that the repurchase of our unit was a creative, the estimated NAVV of our unit based on our analyst average estimate is around $140 per unit. Our per unit, the repurchase price average at about $50. Thus, we capture an $18 million discount to NAV, which represents a net accreation of 59 cents per unit. We have around 90 million of availability under the unit repurchase program. The volume and timing of further repurchase will be subject to general market and business conditions, working capital requirements, and other investment opportunities among other factors. Please turn to slide 8.

Erifili Tsironi: Προσπαθούμε να επενδύσουμε στις νέες ενεργοφυσιακές βάσες και να λειτουργήσουμε τις εφημερίες μέσω ενεργοφυσιακών εργασίας και ενεργοφυσιακών εργασίων. Στις Φεβρουαρίες του 2024, η συνεργασία Navios με τον Λόιτς Ρέγιστερ δημιουργήθηκε το κεντρικό κέντρο εφημεριστικών εφημεριστικών εφημεριστικών που θα ενεργοποιήσει την εφημεριστική επιτυχία της παγκόσμιας κλίμακας. Η Navios είναι ένας κοινωνικάς κοινωνικής ομάδας, η οποίας κορυφαίες αξίες ενθαρρύνουν την διαφορετικότητα, την εμπλεκόνιση και την ασφάλεια. Έχουμε ισχυρή κορυφαστική κυβέρνηση και σωστή κωδική εθνική, ενώ η ομάδα μας είναι κατασκευημένη από μεγαλύτερα αξιωματικά διευθυντικά. I now pass the call to Ted Petrone to take you through the industry section. Ted?

Speaker Change: then to slide seventeen you can seeer is we continue bed in new and deision vessels and redu missions through and the saving devices and advision vsel operations in sebrary twentthousand and twenty four arvvisation collaboration with the road register found that the global mittimeme emission reduction center that will focus on optimize existing global efficiency vious is a socially con group whose called byes include diversity inclusion and safety have strong corporate governmentance and clear called the weics while board is composed by majority independent directctor

Erifili Tsironi: Έρη.

de patdonwn: i now pass the call to de patdonwn to take you through the inust section de

Ted Petrone: Thank you, Eri. Please turn to slide 19 for a review of current trade disruptions. The Red Sea entrance leading to the Suez Canal, a strategic maritime transport point, continues to operate at restricted transit levels. Red Sea disruptions have caused a rerouting of ships via the Cape of Good Hope, increasing costs and ton miles. Since first half of December, transits have reduced 61% for containers, 60% for dry boat vessels, and 53% for tankers. Panama Canal daily transit restrictions continue to ease on the back of returning seasonal rains, with transits anticipated to be near normal by month end.

Erifili Tsironi: Σας ευχαριστώ, Στράτος, και καλησπέρα σε όλους.

Erifili Tsironi: Θα παρουσιάσω γρήγορα, τα οικονομικά αποτελέσματα μας για την δεύτερη εβδομάδα και την πρώτη μισή του 2024.

Erifili Tsironi: Η οικονομική πληροφορία, συμπεριλαμβανούνται στο πλαίσιο και συγκεντρωθεί στην παρουσιακή παρουσιακή παρουσίαση εφαρμόζοντας την εταιρεία της εταιρείας.

Erifili Tsironi: Περιμείνοντας στις προηγούμενες επιτυχίες, στο πλαίσιο 14, η οικονομική πληροφορία για την δεύτερη εβδομάδα του 2024 λίγο χαλαρώθηκε στις 342 εκατομμύρια αντιμετωπίζοντας στις 347 εκατομμύρια για την ίδια περίοδο του 2023 διότι διεκλίζουμε τη δεύτερη εβδομάδα και τις επιτυχίες, για τη δεύτερη εβδομάδα του 2024 ψάχνονταν στα 23.384 δευτερόλεπτα.

Erifili Tsironi: Σχετικά με την επιτυχία του περιοχού, η οικονομική πληροφορία για την δεύτερη εβδομάδα αυξήθηκε από 14% ως το 17.959 δεύτερο λέπτο σε αντιπροσέγγιση με τη ίδια περίοδο του 2023.

de patdonwn: thank you ary please turn a slide nineteen for a view of current trade disruptions

Erifili Tsironi: Με το αντίπαλο, η οικονομική πληροφορία και η ατμόσφαιρη ατμόσφαιρα ήταν περίπου 15% και 10% χαμηλότερα αντιπροσωπικά.

Erifili Tsironi: Η ατμόσφαιρη ατμόσφαιρα, για την οικονομική πληροφορία βρίσκεται στα 30.239 δευτερόλεπτα και για την ατμόσφαιρη ατμόσφαιρα στα 27.816 δευτερόλεπτα για την δεύτερη εβδομάδα του 2024.

Angeliki Frangou: We short three vessels with an average age of 16.4 years in our effort at keeping a modern fleet. This helps to 2.2 tankers and one post-paramage generated 64.6 million in gross proceeds and are expected to be completed in the second half of 2024. In terms of acquisition, we invest it around $500 million in the following seven vessels.

Erifili Tsironi: Η πληροφορία επιτυχίας, και την επιτυχία αυξήθηκαν, όπως εξηγείτε στο βιντεο.

Erifili Tsironi: Ευχαριστώ.

Erifili Tsironi: Ακολουθούντας αυτές τις υποχρεωσίες, η φωνή μετατάσσεται από 1.7 στην κατάσταση του Q2 2024, στο 190 πιλιών αντιμετωπίντας το Q2 2023.

Speaker Change: through red sea entrance leading to the suus canal a strategic maritime transcriort point continues to operate arestricted ttransit levels

Erifili Tsironi: Η μετατάσταση του εισογειοκοπητών για το Q2 2024 μετατάσσεται από 8 επιλλονών στο 94 επιλλονών αντιμετωπίντας το Q2 2023.

Erifili Tsironi: Η μετατάσταση ήταν σχεδόν σε σχήμα της μετατάστασης φωνής μετατάσσεως, και το 10,6 εκατομμύρια αρνητικό επίπεδο από την αποτροφή και την αγκαλιάσταση με παράδειγμα από το 4,3 εκατομμύρια αρνητικό επίπεδο από τη χαρακτηριστική ασκήνεια και την αυξή στο εισογειοκοπητήριο.

Speaker Change: red sea disruptions have caused a re routing of ships to be the capeable good hope increasing costs and ton miles since first half of the sun but transits have reduced sixty one percent for containers sixty percent for dryboboth vessels and fifty three percent for tankers

Speaker Change: ana canal daily transitrestrictions continue to eat on the back of returning seasonal range with transits anticipated to be new normal by month end

Ted Petrone: Please turn to slide 21 for a review of the tanker industry. World GDP expected to grow by 3.2% in 2024 based on the IMF's July forecast. The IEA projects 0.9 million barrels per day increase in world oil demand for 24 and a 1 million barrel per day increase in 2025. Chinese crude imports continue at healthy levels averaging about 11.1 million barrels per day in Q2, although imports are down about 5% from the same period last year.

Angeliki Frangou: Four new building scrubber fitted Aframax LR2 tankers, two new buildings methanol ready, scrubber fitted, $7,900, T-EU container ships, one Japanese built ultra-hunting max, previously chartered in. We also took delivery of four previously announced new building vessels. 35,330 Eucondane ships fixed at an average rate of $37,050 net per day for 5.2 years and one Aframax LR2 tanker fixed at $26,366 net per day for five years. We continue to add to our contracted revenue, which today is around $3.7 billion.

Speaker Change: please turn to slide twenty-one for review of the tanker industry ro gdp expected to grow by three point two percent in two thousand and twentyfour based on the is july forecasts

Erifili Tsironi: Το κοινό επίπεδο για την πρώτη μισή του 2024 αυξήθηκε από 4,2 εκατομμύρια, στο 661 εκατομμύρια αντιμετωπίντας το ίδιο περίοδο το 2023.

Erifili Tsironi: Η αυξή στο εισογειοκοπητήριο ήταν κυρίως αποτέλεσμα μιας μεγαλύτερης συνδεδεμένης τεχνικής αρνητικής ασκήνειας, ανάπτυξης λειτουργικών ημέρων.

Speaker Change: the a projects z zero point nine million barrowse but increase in world oil demand for twenty-four

Erifili Tsironi: Η συνδεδεμένη τεχνική αρνητική ασκήνεια για την πρώτη μισή του 2024 ήταν 22,448 εκατομμύρια.

Erifili Tsironi: Σχετικά με την περιοδική επιτυχία, η τεχνική αρνητική ασκήνεια για την αγκαλιάσταση φωνής, αυξήθηκε από 21% στο 16,090 εκατομμύρια ανάπτυξη, σχετικά με την ίδια περίοδο το 2023.

Erifili Tsironi: Συνδεδεμένα, η αυξή στο εισογειοκοπήτηριο και την τεχνική αρνητική ασκήνεια για την αγκαλιάσταση φωνής, ήταν περίπου 15% και 6% χαμηλότερα.

Erifili Tsironi: Η αυξή στο εισογειοκοπήτηριο για τις αγκαλιάστασεις φωνής ήταν 30,037 εκατομμύρια ανάπτυξη, και ανάμετη να Committee νομίζω 200% σύζυγα.

Erifili Tsironi: Η κεφαλαιοποίηση των εφαρμογών των πέντων νέων σχεδιασμών αυξήθηκε στο 33,6%.

Erifili Tsironi: Συνδεδεμένα, η αυξή στο εισογειοκοπήτηριο γινόταν 24,852 εκατομμύρια ανάπτιξη.

Erifili Tsironi: Το σχεδιασμό των χρέωτων δημιουργήθηκε στο σχεδιασμό των εφαρμογών των πέντων νέων σχεδιασμών.

Erifili Tsironi: Η αυξή στις πρόεδρες desirable declinations για την cigarette, και την αυξή στο εισογειοκοπήτηριο γινόταν 11,5 εκατομμύρια ανάπτυξη, 6,6 εκατομμύρια ανάπτυξη, 3,6 εκατομμύρια ανάπτυξη, και 2,9 εκατομμύρια ανάπτυξη.

Erifili Tsironi: Συνεχίζουμε να διευκολυνθούμε τις δημιουργικές μας υπηρεσίες, μεταξύ των χρέωτων των τράπεζων και εφαρμογών, ενώ το 34% των χρέωτων μας αυξήθηκε στο σχεδιασμό των πέντων 5,6%.

Speaker Change: and a one millionbarrow inase in two thousand and twenty five chinese crude imports continue at healthy levels averaging about eleven point one million barrels day in q two although imports are down about five percent from the same period last year

Erifili Tsironi: Η αυξή στο εισογειοκοπήτηριο γινόταν 5,38 εκατομμύρια ανάπτυξη.

Erifili Tsironi: Επίσης, προσπαθούμε να εφαρμογήσουμε τη μέρη της αυξημένης χρήσης των πέντων, έχοντας αποκλεισμένο το σχεδιασμό των εφαρμογών των πέντων σχεδιασμών στο 2,2%, ενώ το σχεδιασμό των πέντων σχεδιασμών των πέντων σχεδιασμών του νέου δημιουργικού πρόγραμματος είναι το 1,8%.

Erifili Tsironi: Όπως προηγουμένως, έχουμε συμφωνήσει να αναπτύσσουμε το συγκεκριμένο συμφωνίο, που θα εξαρτάται στο τέλος του χρόνου.

Erifili Tsironi: Το σχεδιασμό των πέντων σχεδιασμών του νέου δημιουργικού πρόγραμματος είναι το 1,8%.

Erifili Tsironi: Βασισμένοι στις προορισμένες οικονομικές συμπεριφορές για τις εξοπλισμές εργασίας του 2025, δεν εξετάζουμε την πραγματική οικονομική επιτυχία από τους τερμούς του νέου συμφωνίου συγκεκριμένου συμφωνίου Όπως και το 30 Ιουνίου του 2024, οικονομικές συμπεριφορές και οικονομικές εξοπλισμές, ανάπτυξης οικονομικής συμπεριφορής, και χρόνος εξοπλισμού, πριν από τρία μήνες, ήταν 318 εκατομμύρια.

Erifili Tsironi: Στο Ιουνίου του 2024, εισήρθαμε σε μια νέα εφαρμογή αυξημένης χρήσης των πέντων, με μια εφαρμογή δημιουργικής χρήσης για μέχρι και 95 εκατομμύρια χρόνια, ώστε να επικοινωνήσουμε την παρουσίαση των δύο πέντων και να επικοινωνήσουμε μέρος της αγοράς των 4 πέντων σχεδιασμών.

Erifili Tsironi: Στην πρώτη μερική του 2024, πληρώναμε 145,5 εκατομμύρια χρέη σχεδιασμένων προεδρικοποιημένων εισοπλισμών και καπιταλισμών υπό το νέο πρόγραμμα σχεδιασμού.

Erifili Tsironi: Το διευθυντικό εργασίο έχει 5 χρόνια τεράστιου και υπάρχει ενδιαφέρον, στο σχεδιασμό του ΣΟΦΡΑ με 1,75 εκατομμύρια χρήσης.

Ted Petrone: Στην Ανάπτυξη του Κανάλι Σουάς, οι κατάστασεις ανάπτυξης συνεχίζουν να λειτουργήσουν, μετά από την επίπεδο των κατάστατων ανάπτυξων, Η κοινωνική εισόδηση προσέγγιζε να μεγαλώσει από 3,2% το 2024, βασίλεις από τις προσδοκίες του Δεκέμβριου της ΙΕΑ.

Erifili Tsironi: Συγκλήνησαμε την αγορά των τέσσερων για 91,4 εκατομμύρια νετ, προσθέτοντας περίπου 6,7 εκατομμύρια χρήματα μετά την ανάπτυξη των αντιμετωπισμένων χρέωτων.

Erifili Tsironi: Παρουσιάζοντας στο σχεδιασμό 17, μπορείτε να δείτε τις αρχές του ESG.

Erifili Tsironi: Ολοκληρωμένες αγορές, ενθαρρύνοντας την τελευταία πορτινή νετ των εφαρμογών, αυξήθηκαν 1,97 εκατομμύρια, κυρίως ως αποτέλεσμα των εφαρμογών των πέντων νέων σχεδιασμών, για το οποίο οι αντιμετωπισμένες εφαρμογές δημιουργήθηκαν με χρέη.

Erifili Tsironi: Προσπαθούμε να επενδύσουμε στις νέες ενεργοφυσικά πέντες, και να λειτουργήσουμε τις εφαρμογές μέσω ενεργοσύνης εργασίας και ενεργοφυσικών εργασίων.

Erifili Tsironi: Στις Ιανουαρίες του 2024, η ΝΑΒΙΟΣ, σε συνεργασία με το ΛΟΟΙΤΖ Ρέγιστερ, δημιουργήθηκε το κεντρικό κέντρο εφαρμογής ενεργοσύνης εργασίας που θα επενδύσει την εφαρμογή του κεντρικού κέντρου ενεργοσύνης.

Erifili Tsironi: Η ΝΑΒΙΟΣ είναι ένας κοινωνικάς κοινωνικός ομάδας, το οποίος κεντρικές αξίες ενθαρρύνουν διαφορετικότητα, ενθαρρύνιση και ασφάλεια.

Erifili Tsironi: Έχουμε δυνατή κοινωνική κυβέρνηση και ξεκάθαρο κώδικο έθιμος, ενώ η ομάδα μας αποτελείται από μεγαλύτεροι αξιωματικοί διευθυντικοί.

Ted Petrone: After a seasonally strong Q1, rates moderated slightly in Q2 but remain above long-term averages with product tankers showing the most resilience. The OPEC crude exports cuts have been somewhat mitigated by increased Atlantic Far East exports causing high volatility to VLCC rates in Q2. Turn to slide 22, as previously mentioned, both crude and product rates remain strong across the board due to healthy supply and demand fundamentals and shifting trading patterns. Crude ton miles are expected to grow by 3.3% in 24 and a further 2.2% in 25. Product tanker ton miles are expected to grow by 7.5% in 24 but are expected to decline by 2.4% in 25. These percentages increases incorporate continued canal restrictions in 2024.

Operator: Και τώρα θα δώσω τη φωνή στον Τετ Πετρόν για να σας πάρει μέσα από τη σεξιότητα.

Ted Petrone: Τετ.

Ted Petrone: Σας ευχαριστώ, Ερρή, δημιουργώντας πληροφορίες και τονμίες.

Ted Petrone: Μετά από την πρώτη μεγάλη μετάφραση του Δεκέμβριου, οι ανάπτυξες έχουν λειτουργήσει 61% για τα κατασκευάτια, 60% για τα κατασκευάτια, και 53% για τα κατασκευάτια.

Speaker Change: after a seasonally strong q one rates moderated slightly in q two but remain above long-term averages with product tankers showing the most resilience

Speaker Change: the ope crude exports cut

Speaker Change: have been somewhat mitigated by increased atlantic fare ed exports causing high volatility to v l c rates in q two turn the slide twenty two as previously mentioned both crude and product rates remains strong across the board to to healthy supply demand fundamentals and shifting trading patterns crew t re expected to grow by three point three percent in twenty four and fer two point two percent in twenty five

Angeliki Frangou: In the second quarter and third quarter, quarter today, 2024, we added $561 million contracted revenue. Of which, $307.3 million was from six new building Aframax LR2 tankers fixed at an average rate of $28,067 net per day for five years. 125.6 million was from two new buildings, 5,000, 7,930 Eucondane ships fixed at an average rate of $43,000 net per day for four years and 128.1 million from six 4,250 Eucondane ships fixed at an average rate of 28,168 net per day for 2.1 years.

Ted Petrone: Η κοινωνική εισόδηση προσέγγιζε να μεγαλώσει από 3,2 εκατομμύρια μπ.λ, και ένα 1,0 εκατομμύριο μπ.λ.

Speaker Change: product ten expectedto grow by seven point five percent in twenty four but are expected to decline by two point four percent in twenty five these percentages increaseincreases incorporate continued can now restrictions in two thousand and twenty four turning into slide twenty three cseen net growth is rejected to be negative for both twenty four and twenty five at zero point one percent negative and and one point seven percent negative respectively this decline can be partially attributed to own esit to order expensive long li sets in line of macro economic certain and technology concerns due to two restrictions in forces to beginning of the year the current order book is only seven point percent of thefleet sixty six

Ted Petrone: Turning to slide 23, VLCC net fleet growth is projected to be negative for both 24 and 25 at 0.1% negative and 1.7% negative respectively. This decline can be partially attributed to owners' hesitance to order expensive long-lived assets in light of macroeconomic uncertainty and engine technology concerns due to CO2 restrictions in force since the beginning of the year. The current low order book is only 7.3% of the fleet or 66 vessels, one of the lowest in 30 years.

Ted Petrone: το 2025.

Ted Petrone: Οι κοινωνικές εισόδησες προσέγγιζαν σε υγιεινές επίπεδες, με ένα αύξημα από 11,1 εκατομμύρια μπ.λ.

Ted Petrone: το 2022, με ένα αύξημα από 3,3 εκατομμύρια μπ.λ.

Ted Petrone: το 2024, και ένα αύξημα από 2,2 εκατομμύρια μπ.λ.

Ted Petrone: το 2025.

Ted Petrone: Οι προσδοκίες των εισόδησες προσέγγιζαν να μεγαλώσουν από 7,5 εκατομμύρια μπ.λ.

Ted Petrone: το 2024, αλλά προσέγγιζαν να μεγαλώσουν από 2,4 εκατομμύρια μπ.λ.

Ted Petrone: το 2025.

Ted Petrone: Αυτές οι προσέγγισες ενισχύουν συνεχές κανάλες κατασύρθμισης το 2024.

Ted Petrone: Vessels over 20 years of age are about 17% of the fleet or 156 vessels which is over two times the order book. Turning to slide 24, projected product tanker net fleet growth is 1.8% for 2024 and 4.9% for 2025. The current product tanker order book is 19.9% of the fleet and compares favorably with the 14.4% of the fleet which is 20 years of age or older. In concluding the Tanker Sector Review, tanker rates across the board continue historically healthy levels during the seasonally slow summer season.

Speaker Change: one the lowest of thirty years vessels over twenty as of age are about seventeen percent of the leet one hundred fifty six vessels which is over two times the order book turned aside twenty four projected product ty could netfle growth is onepoint eight percent for two thousand and twenty four and four point nine percent for two thousandand twenty five the current product acker order book is nineteen point nine percent of the fleet and compared patedicallyly with the fourteen point four percent of the leetwhich is twenty years age or older

Angeliki Frangou: Our operating cash flow potentially remains strong. For the second half of 2024, contracted revenue exceeds total cash expense by $87 million. Plus, we have 7,395 remaining open index days, or 27% of available base for this period.

Ted Petrone: Παρακολουθώ στη σειρά 23.

Ted Petrone: Η ανάπτυξη των εισόδησες προσέγγιζαν να είναι νεαρή για όλες τις εισόδησες του 2024 και του 2025, από 0,1% νεαρή και από 1,7% νεαρή.

Ted Petrone: Αυτή η ανάπτυξη μπορεί να επαναλαμβάνεται στις προσδοκίες των εισόδησες, για να προσέγγιζουν αρκετά δύναμιες, πολύ ζωντανές εισόδησες σύμφωνα με τις μακροοικονομικές ανάπτυξες και τις ανάπτυξες της τεχνολογίας διότι οι κοινωνικές δυνατότητες των εισόδησες υπάρχουν από την αρχή του χρόνου.

Ted Petrone: Το σύμφωνο σύμφωνο εισόδησο είναι μόνο 7,3% του κόμματος ή 66 εισόδησες, ένα από τα λιγότερα από 30 χρόνια.

Ted Petrone: Οι εισόδησες πριν από 20 χρόνια είναι περίπου 17% του κόμματος ή 156 εισόδησες, το οποίο είναι πριν από δύο φορές το σύμφωνο εισόδησο.

Ted Petrone: Παρακολουθώ στη σειρά 24.

Ted Petrone: In concluding the tanker sector review, tanker rates across the board continue, historically healthy levels during the seasonally slow summer season. Combination of moderate growth and global oil demand, new longer trading, route for both crude and products, as well as one of the lowest order books in three decades, and the IMO 2023 regulations should provide for healthy tanker earnings going forward.

Angeliki Frangou: Please turn to slide 9. We provide an overview of the evolution of our fleet through selected metrics we feel are important. As you can see, our fleet is only slightly larger than it was in the year end 2022 after a significant modernization program. Our fleet aids image about the same. We maximize energy efficiency by maintaining a fleet of useful vessels with the latest technology while we patiently await the development of more carbon-neutral technologies.

Speaker Change: and concluding the tanker sector review er rates across the board continue historically healthy levels during the season we flow summery season combination of moderate growth and global oil demand new longer trading route from both cru products as well as one of the lowest order books in three decades and the two thousand andtwenty three regulations should provide for healthy tanker earnings going forward please turn to sl twenty six for the review of the driverable industry q two ffollow the similar pattern to q one a strong linic exportsof ine or coaland grain continued resulting in the d averag eighteen forty eight slightly higher than counter cyclically strong q one

Ted Petrone: Combination of moderate growth and global oil demand, new longer trading route for both crude and products, as well as one of the lowest order books in three decades, and the IMO 2023 regulations should provide for healthy tanker earnings going forward. Please turn to slide 26 for the review of the dry bulk industry. Q2 followed a similar pattern to Q1 as strong Atlantic exports of iron ore coal and grain continued, resulting in the BDI averaging 1848, slightly higher than the counter cyclically strong Q1.

Ted Petrone: Please turn to slide 26 for the review of the dry bulk industry. Q2 followed a similar pattern to Q1 as strong Atlantic exports of iron or coal and grain continued, resulting in the BDI averaging 1848, slightly higher than the counter cyclically strong Q1. Dry bulk trade is expected to grow by 2.6 percent this year, enhanced by a 4.4 percent in ton miles growth, with the most of this growth anticipated to come from additional Atlantic exports of the above-mentioned cargoes, plus bauxite, the vast majority destined to China and Southeast Asia.

Angeliki Frangou: In a vision as you can see from vessels values, the still value of our fleet has improved by about 27% since the end of 2023. I would like to point out that much of this improvement has been from volatility in the container ship segment, which dropped significantly postpartumic and has recovered in 2024 as a primary benefit of the emergency conflict and longer termiles. I would also note that these still values do not give any consideration to our contracted revenue, which today is about 3.7 billion.

Ted Petrone: Dry bulk trade is expected to grow by 2.6% this year, enhanced by a 4.4% in-ton miles growth, with the most of this growth anticipated to come from additional Atlantic exports of the above-mentioned cargoes plus bauxite, the vast majority destined to China and Southeast Asia.

Speaker Change: drive traded expected to grow by two point six percent this year enhced by a four point four percent in ton miles growth

Angeliki Frangou: It seems that the global inflation, we all experience, post-pandemic, is exciting.

Speaker Change: with the most of this girlth anticipated to come from additional atlantic exports of the abovemented cargos plus book site the vast majority destined to china and southeast asia going forward supply demandfundamentals remain intact longer duration trades the low order book and tightening g h g and mrs regulations remain positive factors which are reflected in the future markets we turn slide twenty seven

Ted Petrone: Going forward, supply and demand fundamentals remain intact.

Ted Petrone: Going forward, supply and demand fundamentals remain intact. Longer-duration trades, the low order book, and tightening GHG emissions regulations remain positive factors which are reflected in the futures market. Please turn to slide 27.

Ted Petrone: Longer duration trades, the low order book, and tightening GHG emissions regulations remain positive factors which are reflected in the futures markets.

Ted Petrone: Please turn to slide 27.

Angeliki Frangou: And while the US and European economies are generally healthy, China's economy is challenged by a troubled real estate sector and fading domestic consumption.

Ted Petrone: The current order book stands at 9.9% of the fleet, one of the lowest since the late 90s. Net fleet growth for 2024 is expected to be 3.1% and only 2.6% in 2025, as owners remove tonnage that will be uneconomical due to the IMO 2023 CO2 rules. Vessels over 20 years of age are about 9.8% of the fleet, which is approximately equal to the low order book. In concluding our Dry Bulk Sector Review, continuing demand for natural resources, restrictions in transiting the Red Sea, war and sanction-related longer haul trades, combined with the slowing pace of new building deliveries all support freight rates going forward.

Ted Petrone: The current order book stands at 9.9 percent of the fleet, one of the lowest since the late 90s. Net fleet growth for 2024 is expected to be 3.1 percent and only 2.6 percent in 2025, as owners remove tonnage that will be uneconomical due to the IMO 2023 CO2 rules. Vessels over 20 years of age are about 9.8 percent of the fleet, which is approximately equal to the low order book. In concluding our dry bulk sector review, continuing demand for natural resources, restrictions in transiting the Red Sea, war and sanction related longer haul trades, combined with slowing pace, of new building deliveries, all support freight rates going forward.

Speaker Change: the current order book stand at nine point nine percent of the fleet one of the lowest since the late ninety s net growth of two thousandand twenty four expected to bethree three point one percent and only two point six percent intwo thousand and twenty five as only removed ton age that will be uneconomical d the i am o two thousand and twenty o two rules vessel over twenty as aof agia aboutnine point eight percent of the fle which is approximately equal to the low order book concluding on dry book set the review continuing demand for nat ural resources restrictions in transiting the red sec war and sanctction related longer whole trade combined with the pace of new go deliveries also support reight rates going forward

Angeliki Frangou: We are watching carefully to determine whether China's economic wealth weaken its otherwise voracious appetite for commodities.

Angeliki Frangou: With a stable and performing fleet, our financial metrics are strong. Our data data is up 2% of our first half of 2023 and 22% of our first half of 2022. Our cash balance is approaching the reserve without identified. Our current net leverage is 31.6% and material improvement since the end of 2023. And on our path to reach our target net LTV of 20-25%. I am also pleased to report that we have negotiated new management and administrative arrangements to our fleet without existing managers.

Angeliki Frangou: As you can imagine, with China's economic stalling, we have a cautious view.

Angeliki Frangou: But we are also cautious because of geopolitical considerations.

Ted Petrone: Please turn to slide 29 for review of the container industry. Continued strong trade flow, coupled with continued rerouting of vessels away from the Red Sea and around the Cape of Good Hope, causing ton miles to increase by about 17% this year, pushing the SCFI to 3714 the last week of June. The SCFI reached 3733 one week later, the highest level outside the pandemic era, before correcting moderately recently.

Ted Petrone: Please turn to slide 29 for review of the container industry. Continued strong trade flow coupled with continued rerouting of vessels away from the Red Sea and around the Cape of Good Hope, causing ton miles to increase by about 17 percent this year, pushing the SCFI to 37.14 the last week of June. The SCFI reached 37.33 one week later, the highest level outside the pandemic era, before correcting moderately recently.

Speaker Change: please turn slide twenty nine for review of the container industry continued strong trade flow coupled with continued ring vessels away from the red sea and around that cape of good hope

Speaker Change: closing ten moes to increase by about seventeen percent this year pushing the sefi to thirty seven fourteen

Efstratios Desypris: Stratos will take you through these details.

Efstratios Desypris: I now turn the presentation over to Mr. Stratos de Cyprus, Navi and Spartans operating officer. Stratos, thank you again and good morning all. Please set the slide 10. In August, Navi's partners renewed its management and administrative services agreements with Navi ship management. The current agreements were lastly renewed in 2019 and are expiring at the end of 2024. Based on the new agreements, Navi ship management will continue to provide administrative services based on a local bill course with no extra fees.

Speaker Change: the last week of june the scf i reached thirty seven and thirty three one weekks later the highest level outside the pandemic era before correcting and moderately recently pressure for time toter rates should remain for the duration of the red tea disruption

Ted Petrone: Pressure for time charter rates should remain for the duration of the Red Sea disruption.

Ted Petrone: Pressure for time charter rates should remain for the duration of the Red Sea disruption. However, continued record fleet growth should eventually modify these gains in reverse course when the Middle East conflict settles. Although trade is expected to grow by 5.1% in 2024 and 2.9% in 2025, new building deliveries in 24 and 25 will be equivalent to approximately 16% of the fleet after record net fleet growth of 10.2% this year, followed by 4.9% in 2025.

Ted Petrone: However, continued record fleet growth should eventually modify these gains and reverse course when the Middle East conflict settles. Although trade is expected to grow by 5.1 percent in 2024 and 2.9 percent in 2025, new building deliveries in 24 and 25 will be equivalent to approximately 16 percent of the fleet after record net fleet growth of 10.2 percent this year, followed by a 4.9 percent in 2025. This should continue to pressure rates for some time.

Efstratios Desypris: Additionally, Navi ship management will provide technical, commercial and other services based on the following fees tracks. $950 per day, technical management fee for own vessels, 1.25% commercial fuel and gross revenues, S&P fee of 1% on purchase or sale price, and fees for other specialized services for example supervision of new building vessels. The new management and administrative services agreements will commence on January 1st, 2025, for a term of 10 years renewing annually and is subject to a fee for termination or change of control.

Speaker Change: however continued to record growth eventually dify and reverse course when the middle east conflict settle although trade is expected to grow byfive five point percent in two thousand and twenty four two point nine percent two thousand and twenty five new buildving deliveries and twenty four and twenty five will be equivalment to approximately sixteen percent of the fleet after record net le growth of ten point two percent this year followed by four point nine percent in two thousand and twenty five this should continue to pressure rates for some time turn the slide thirty net ally growth is expected to be ten point two percent for twotwentthousand twentyfour ther four point nine percent for two twenty fivethe current order book stand twenty two point seven percent against to eleven point five percent le twenty years at age or older

Ted Petrone: This should continue to pressure rates for some time. Turning to slide 30, net fleet growth is expected to be 10.2% for 2024 and a further 4.9% for 2025. The current order book stands at 22.7% against 11.5% of the fleet 20 years of age or older.

Ted Petrone: Turn to the slide 30.

Ted Petrone: Net fleet growth is expected to be 10.2 percent for 2024 and a further 4.9 percent for 2025.

Ted Petrone: The current order book stands at 22.7 percent against 11.5, percent of the fleet 20 years of age or older.

Ted Petrone: About 78 percent of the order book is for the 10k TEU vessels or larger.

Ted Petrone: About 78% of the order book is for the 10K TEU vessels or larger. In concluding the container sector review, longer term supply and demand fundamentals remain challenged due to an economic and geopolitical uncertainties and an elevated order book. However, trade growth improvements, increased ton miles, and world GDP growth of 3.2% this year provide for a counterpoint to a challenging second half of 2024.

Ted Petrone: In concluding the container sector review, longer-term supply and demand fundamentals remain challenged due to an economic and geopolitical uncertainties and an elevated order book.

Speaker Change: about seventy eight percent of the order book is for the ten -k to eu vessels or larger and concluding the container sector review longer terms supplying demand fundamentals remain challengge due to an economic and u political uncertainties and an elevated order book

Efstratios Desypris: The agreements were negotiated and approved by the conflicts committee of the Board of Directors of Navi's partners, the conflicts committee used Watson Farley and Williams as their legal advisors and KPMG as their financial advisor who is a defense opinion.

Ted Petrone: However, trade growth improvements, increased ton miles and world GDP growth of 3.2 percent this year provide for a counterpoint to a challenging second half of 2024.

angekey: however trade growth improvements increased ton miles and world gdp growth at three point two percent this year prov for counter point to a challenging second hands of two thousand and twenty four this concludes our presentationi would like to turn the callover to angekey for a final comments and jai

Ted Petrone: This concludes our presentation.

Operator: This concludes our presentation and I would like to turn the call over to Angeliki for her final comments. Thank you, Ted. This completes our formal presentation. We open the call to questions. At this time, if you would like to ask a question, please press star 1 on your telephone keypad. You may remove yourself at any time by pressing star 2.

Efstratios Desypris: Please tend to slide 11, which details are operating three cash flow potential for the second half of 2024. We fixed 73% of available days at the net average rate of 26,245 dollars per day. In short, contracted revenue exceeds total cash expense by 87 million. And we have 7,395 remaining operational index link days that should provide substantial additional three cash flow. On the right side of the slide, we provide our 27,878 available days by vessel type so that you can perform your own sensitivity analysis.

Ted Petrone: I would like to turn the call over to Angeliki for her final comments.

Operator: Angeliki?

angekey: thank you that this complete a former presentation we open the call to quest

Angeliki Frangou: Thank you, Ted.

Angeliki Frangou: This completes our formal presentation.

Speaker Change: at this time if you would like to ask question please press star one on your telephone keypad

Operator: We open the call to questions.

Operator: Once again, if you would like to ask a question, please press star 1. We'll pause just a moment to allow questions to queue. Our first question will come from Omar Nokta with Jefferies, please go ahead. Thank you. Hi. Hi, guys. Good afternoon.

Speaker Change: you may remove yourself at any time by pressing star too

Operator: At this time, if you would like to ask a question, please press star 1 on your telephone keypad.

Speaker Change: once again if you would like to ask a question please press star one will p just a moment to allow questions to q

Efstratios Desypris: Please tend to slide 12. We are always renewing the fleet so that we maintain a young profile. It is part of our strategy to reduce our carbon footprint by modernizing our fleet, benefiting from your technologies and echo vessels with greener characteristics. In Q2 and Q3 to date, we took delivery of four vessels. 35,380 U-container seats all chatted out for an average of 5.2 years at the average net daily rate of 37,050 dollars per day.

Operator: You may remove yourself at any time by pressing star 2.

omar knocto: our first question will come from omar knocto with jeffreys please go ahead

Omar Nokta: Obviously, nice quarter, good amount of free cash flow generation, and you continue to focus on fine-tuning the fleet, selling shifts and bringing in some new ones with contract cover. Obviously, a big highlight is the buyback. You spent nearly $10 million, which is nice. Just kind of thinking about that, is there anything that triggered you putting that capital to work? Obviously, you highlight the disconnect between the share price and NAV, but is there anything that maybe instigated the buyback here recently? Is it comfort with the outlook?

Operator: Once again, if you would like to ask, a question, please press star 1.

omar knocto: thank you hi i guys good afternoon

omar knocto: obviously next quarter good amount offree cashflow generation and you continue to focus on fine tuning the fleet selling shifts and and bring into some new ones with contract cover obviously big highlightedis the buyback you spent nearly ten million dollars which is which is nice

Speaker Change: just kind of thinking about that is is there anything that triggered

Efstratios Desypris: One LR2 Aframax vessel, which has been chatted out for five years at 26,366 dollars per day. Following these deliveries, we have 28 additional new building vessels delivered into our fleet through 2028, representing 1.8 billion of total acquisition price. In containerships, we have 8 vessels to be delivered, with a total acquisition of price of about 0.7 billion. We have mitigated this risk with long-term credit worthed charges generating about 0.8 billion in revenue over a 6.7 year average surfer duration.

Speaker Change: you put in that capital to work as obviously you highlight that disconnect between the share price and av but is there anything that maybe infigated to the buyback here recently is it comfort with the outlook is the buildup with the backlog

Omar Nokta: Is it the buildup of the backlog? What would you say kind of drove the decision to go after the buyback? Good morning, Omar.

Operator: We'll pause just a moment to allow questions to queue.

Speaker Change: what would you say kind of droveves the decision to go after the buyback

Angeliki Frangou: Basically, you know, we focus on our target, you know. We are driving an AV by reinvesting in our business. You have seen that is clear from day one.

Speaker Change: good morning on my i think

Operator: Our first question will come from Omar Nokta with Jeffries.

Speaker Change: basically we focusused on our target you know we are driving in a reby reinvest reinvesting in our business you have seen that is clear from the one

Angeliki Frangou: We bought over half a billion of vessels, and we contracted them out, about 560 million, over 560 million of contracted revenue. But at the same time, we managed to achieve our goal. We are achieving our goals, meaning we brought down our leverage towards 31%, our target is 20-25%, but our cash position is very close to what we have stated.

Omar Nokta: Please go ahead.

Efstratios Desypris: In the tanker space, we have 20 vessels to be delivered for a total price of approximately 1.1 billion, which after about 16 of these vessels for an average period of 5 years generating aggregate contracted revenue of about 0.8 billion. We have also been opportunistically replacing older vessels. In 2024, we have sold 7 vessels with an average age of 17.1 years for 157.2 million. At the same time, we exercised the purchase options on five chatted in Japanese build vessels, with an average age of 8 years for a total price of 142 million.

Speaker Change: we bought half a billion of verssels and we conttracted them out about five hundred and sixteen million of a five hundred sixty million of contracted revenue

Omar Nokta: Thank you.

Omar Nokta: Hi.

Speaker Change: but at the same time we managed to achieve our growth

Omar Nokta: Hi, guys.

Speaker Change: all ne are achieving our goals meaning we brought down our leverage to towards thirty one percent target is two thousand and twenty five percent but our cash position is very close to what we we were we have stated

Angeliki Frangou: So basically, with driving an AP, which we like that by reinvesting, but we are also reaching our target, we were able to really implement on a strategy we have articulated, and we start a repurchase program, you know, having a good firepower on that, and having an additional benefit for our customers. Investors by, you know, you know, being additionally incremental [inaudible] creation by repurchasing capturing about 59 cents when we acquire our sales.

Speaker Change: so basically with

Efstratios Desypris: Moving to slide 13, we continued to secure long-term employment for our fleet. In Q2 and Q3 to date, we have created about 560 million additional contracted revenue, about 305 million comes from our tanker fleet and about 255 million from our containerships. Our total contracted revenue amounts to 3.7 billion. 1.4 billion relates to our tanker fleet, 0.4 billion relates to our dry-ball fleet and 1.9 billion relates to our containerships. Charters are extending through 2057 with a diverse group of quality counterparties. About 50% of our contracted revenue is expected to be earned in the next two years.

Speaker Change: dving and ay which we' like that by the investing but we are also everything at targets we were able to implement on a startedative if we have articulated and we start a repurchase program

Speaker Change: having a good fire out on that and having an additional benefit for our investors by you know you being additionalally incremental

Speaker Change: a creation by an repurchasing cain about fifty nine cent when we acquire our sales so this is and that met good result

Angeliki Frangou: So this is a net-net good result. Yep, certainly. Thanks, Angeliki, for that. And just a couple more follow-ups for me, just kind of on the orders. The LR2s that you just ordered, you're continuing to pay somewhere around that $66 million. That compares to maybe market valuations that suggest new buildings are closer to high 70s or close to $80 million. Are these options that you've been able to exercise, is that what's driving the cheaper price relative to what perception is of what a new building costs?

Omar Nokta: Good afternoon.

Erifili Tsironi: I now pass the call to Erichironi, our CFO, which will take you through the financial highlights. Erich? Thank you, Stratos and good morning, Maul. I will briefly review our un audited financial results for the second quarter and first half of 2024. The financial information is included in the press release and is summarized in the slide presentation available on the company's website. Our combined time chart equivalent rate for the second quarter of 2024 stood at 23,384 per day.

Angel: yeah certainly well thanks angel you for that

Speaker Change: and just a couple of more followups for me just kind of the orders the ltwos

Speaker Change: that you just ordered you're continuing to pay somewhere around that sixty six million dollars in not compares to you may be remarked valuation that suggest new buildings are closer to high seventies are close to eighty mill

Speaker Change: are these options that you've been able to exercise is is that what's driving the cheaper price relative to what perception is about a new building costs

Angeliki Frangou: You are exactly right. I mean, one of the things we do, we are disciplined on purchasing, we like.., focus on a quality shipyard, build on the quality vessel and create options. And I think you have seen that we have been implementing on this strategy for quite some time, giving us an advantage. Also, we are able to rematch the—when you order a vessel, there is a— is actually getting, you have an obligation, so to become an asset you need to fix it and have that balance, and I think we are trying to be very focused on that.

Speaker Change: you are exactly right i mean one of the things we do we are disciplining al purchasing we like to

Speaker Change: focus on a quality cpr build on the quality visasory and create options for us

Speaker Change: and i think you have seen that we have been implementing on these strateggy for quite sometime giving us an advanted

Erifili Tsironi: In terms of sector performance, the TCE for our dry-ball fleet increased by 14% to 17,959 per day compared to the same period in 2023. In contrast, our container and tanker TCE rates were approximately 15 and 10% lower respectively. TCE rates for our containers stood at 30,239 per day and for our tankers at 27,816 per day for the second quarter of 2024. Evident net income NAPU were adjusted as explained in the slide footnote.

Speaker Change: also we are able to wemar ' when your order vessel is

Speaker Change: is actually getting you have an obligation so marching them to become an asset you need to fix it and have that balance and i think we are trying to make it to be very focused on that

Omar Nokta: Obviously, nice quarter, good amount of free cash flow, generation, and you continue to focus on fine-tuning the fleet, selling shifts and bringing in some new ones with contract cover.

Angeliki Frangou: Yeah, yeah, and obviously the charters now, you know, looks like a little over half, maybe over half a 50% payback over the term of the five-year charters. What's interesting, I guess, is, you know, the two 7,900 TEU new buildings that you just ordered, you know, those are delivering in 26 and seem to have almost a 50% payback over just the first, or basically the four-year charter, so a pretty attractive payback. I guess when we think about that, you know, you've been very busy being able to acquire tonnage, put it on contract, but these container new builds are kind of stand out as having a sooner payback over just that four-year term. What do you think is, any color you can give on what's driving that?

Speaker Change: yeah yeah and then obviously that the charters now you know looks like a little overhat maybe of over half a fifty percent payback over the term of the five beyear chargters it's interesting i guess is

Omar Nokta: Obviously, a big highlight is the buyback.

Omar Nokta: You spent nearly $10 million, which is nice.

Speaker Change: the two se y nine hundred t new buildings that you just ordered know those are delivering in twenty six

Erifili Tsironi: Excluding these amounts, adjusted the EBDA for Q22024 decreased by 1.7 million to 190 million compared to Q22023. Adjust the net income for Q22024 decreased by 8 million to 94 million compared to Q22023. The decrease was primarily due to the decrease not adjusted the EBDA and the 10.6 million negative effects from depreciation and amortization despite the 4.3 million positive effects from the reduction in interest rate expense and the increase in interest income.

Speaker Change: and seem to have almost a fifty percent payback over just the first or basically the four year charter so a pretty attractive payback i guess when we think about that you know you've been very busy being able toacquire tonn put it on contract but these container new build are

Omar Nokta: Just kind of thinking about that, is there anything that triggered you putting that capital to work?

Speaker Change: kind of stand out as having a sooner payback over just up for your term

Omar Nokta: Obviously, you highlight the disconnect between the share price and AV, but is there anything that maybe instigated the buyback here recently?

Omar Nokta: Is it comfort with the outlook?

Omar Nokta: Is it the buildup of the backlog?

Speaker Change: what do you think is

Angeliki Frangou: I guess one, do those numbers make sense that I referenced, you know, that quick of a payback? But two, you know, is this a repeatable type of transaction in containers or was this one of those one-offs where we had an opportunity to take advantage of some 26 slots at a good rate? We build on our relationship with the yard, so this is not a repeatable, not only on the particular deal, but we are repeatable deals, if you see, over different shipyards and over different asset classes.

Omar Nokta: What would you say kind of drove the decision to go after the buyback?

Angeliki Frangou: Good morning, Omar.

Speaker Change: inany colleag can give on what to driving that i guess one is those numbers kes sense i referenced you know that quick of a payback but two you know this a repeatable type of transaction in containers or was just one of those one off we had an opportunity to take advantage of some twenty six lots at a good rate

Angeliki Frangou: I think basically, you know, we focus on our target.

Erifili Tsironi: Total revenue for the first half of 2024 increased by 4.2 million to 661 million compared to the same period in 2023. The increase in revenue was mainly a result of higher combined TCE rate despite lower available days. Our combined TCE rate for the first half of 2024 was 22,448 per day. In terms of sector performance, TCE rate for our dryback fleet increased by 21% to 16,090 per day compared to the same period in 2023.

Angeliki Frangou: You know, we, are driving an AV by reinvesting in our business.

Angeliki Frangou: You have seen that.

Angeliki Frangou: It's clear from day one.

Angeliki Frangou: We bought over half a billion of vessels, and we contracted them out about $560 million, over $560 million of contracted revenue.

Angeliki Frangou: But at the same time, we managed to achieve our goals, or near achieving our goals, meaning we brought down our leverage towards 31 percent.

Speaker Change: we be g our relationship they so this is not repeatable not only on particular deal but we are repeatable deal if you see over different cp novel different asive classes

Angeliki Frangou: Our target is 20, 25 percent, but our cash position is very close to what we were – we, have stated.

Angeliki Frangou: So basically, we're driving an AV, which we like that, by reinvesting, but we are also reaching our target.

Angeliki Frangou: We were able to really implement on a strategy we have articulated, and we start a repurchase program, you know, having a good firepower on that, and having an additional benefit for our investors by, you know, being additional incremental creation by repurchasing, capturing about 59 cents when we acquire our sales. So this is a net-net good result.

Omar Nokta: Yep, certainly.

Omar Nokta: Well, thanks, Angelique, for that.

Angeliki Frangou: We care about where we order. We care about creating the relationships and the designs of the vessels. If you remember, we ordered on the same kind of type of vessel. We had done the LNG fuel vessels. And we repeat on the knowledge we have on the CPR, on the type of vessel, with an opportunity to match with the right charting opportunity. So this is a continuous effort we have. And a lot of deals, you may never see them.

Omar Nokta: And just a couple more follow-ups for me, just kind of on the orders.

Omar Nokta: The LR2s that you just ordered, you're continuing to pay somewhere around that $66 million.

Omar Nokta: You know, that compares to maybe market valuations that suggest new buildings are closer to, you know, high 70s or close to $80 million.

Omar Nokta: You know, are these options that you've been able to exercise, is that what's driving the cheaper price relative to what perception is of what a new building costs?

Angeliki Frangou: You are exactly right.

Speaker Change: we care about where we order we care about creating read relationships on the designs of the vessels

Speaker Change: if you remember we ordethatred on the same

Speaker Change: kind of the type of reue we had done there

Erifili Tsironi: In contrast, our container and tank at TCE rate were approximately 15 and 6% lower respectively. TCE rate for our containers stood at 30,037 per day and for our tankers at 27,952 per day for the first half of 2024. Adjust the EBDA for the first half of 2024 increased by 7,354 million compared to the same period last year. Adjusted net income for the first half of 2024 decreased by 2,166 million. Despite the increase in adjusted EBDA, our net income was negatively affected by 11.5 million increase in amortization of the third dry top special survey costs and other capitalized items.

Speaker Change: then as difyou invresses and we repeat on the noest we have on the cipuar

Speaker Change: the type of vessel with an opportun to much with a right charter in opportunity so this is a continued sharehold we have

Angeliki Frangou: I mean, one of the things we do, we are disciplined on purchasing.

Angeliki Frangou: I mean, this is not a one-off. By the way, on also the Afra Maxis, the LR2s, payback is quite significant. So we are very careful on both sides, because at the end of the story, you need to go at historical averages.

Speaker Change: and a lot of deems you may never see them i mean this is not an one off

Speaker Change: on by the way on also the aftermarkets rellla tos

Speaker Change: paidback is quite significant so we have very careful on both sides because at end of the story you need to go at historic average this we like to make sure that with a child we have will bring the value the residual value down

Angeliki Frangou: We like to focus on a quality shipyard, build on the quality vessel, and create options for us.

Angeliki Frangou: We like to make sure that with the charter we have, we bring the value, the residual value, down. Thank you. Thanks, Angeliki. That's helpful. I appreciate the color.

Angeliki Frangou: And I think you have seen that we have been implementing on this strategy for quite some time, giving us an advantage.

Angeliki Frangou: Also, when you order a vessel, you have an obligation.

Angeliki Frangou: So to become an asset, you need to fix it and have that balance.

Angeliki Frangou: And I think we are trying to be very focused on that.

Angeliki Frangou: Yes.

Erifili Tsironi: A 6.6 million decrease in the positive impact of the amortization of unfavorable list ends and a 3.6 million increase in the depreciation and amortization of intangible assets. The above decrease was partially mitigated by a 9.4 million decrease in interest expense and a 2.9 million increase in interest income. Adjusted earnings per common unit for the first half of 2024 were 5.38 dollars.

Omar Nokta: And obviously, the charter now looks like a little over half, maybe over half a 50% payback over the term of the five-year charter.

Omar Nokta: So what is interesting, I guess, is the two 7,900 TEU new buildings that you just ordered, those are delivering in 2026 and seem to have almost a 50% payback over just the first, or basically the four-year charter. So a pretty attractive payback.

Omar Nokta: I guess when we think about that, you know, you have been very busy being able to acquire tonnage, put it on contract, but these container new builds kind of stand out as having a sooner payback over just that four-year term.

Omar Nokta: What do you think is – any color you can give on what is driving that?

Angeliki Frangou: Thank you.

Operator: I'll turn it over. Thank you. At this time, we have no further questions. I will turn the call back to Angeliki for any closing remarks.

Omar Nokta: I guess, one, do those numbers make sense that I referenced, you know, that quick of a payback?

Omar Nokta: Thanks, Angelica.

Omar Nokta: Two, you know, is this a repeatable type of transaction in containers, or was this one of those one-offs, where we had an opportunity to take advantage of some 26 slots at a good rate?

Omar Nokta: That's helpful.

Angeliki Frangou: We build on our relationship where they are.

Omar Nokta: Appreciate the color.

Angeliki Frangou: So this is not a repeatable – not only on the particular deal, but we are repeatable deals, if you see, over different CPRs and over different asset classes.

Omar Nokta: I'll turn it over.

Juica: thank you thanks juica that helpful appreciate the color i'll turn it over

Angeliki Frangou: We care about where we order.

Angeliki Frangou: We care about creating the relationships and the designs of the vessel.

Angeliki Frangou: If you remember, we ordered on the same kind of – the type of vessel.

Angeliki Frangou: We had done the LNG fuel vessel, and we repeat on the knowledge we have on the CPR, on the type of vessel with an opportunity to match with the right charting opportunity.

Angeliki Frangou: So this is a continuous effort we have.

Angeliki Frangou: And a lot of deals, you may never see them.

Angeliki Frangou: I mean, this is not a one-off.

Angeliki Frangou: By the way, on also the Afra Maxis, the LR2s, our payback is quite significant.

Angeliki Frangou: So we are very careful on both sides, because at the end of the story, you need to go at historical averages.

angeki: thank you at this time we have no further questions and 'll turn the call back to angeki for any closing remarks

Angeliki Frangou: We like to make sure that with the chart that we have, we bring the value – the residual value down.

Omar Nokta: Thank you.

Operator: At this time, we have no further questions.

Angeliki Frangou: Thank you. This completes our quarterly results. Thank you. . . . . . . . . . .

angeki: thank you this completes our quarter results thank you

angeki: i

Speaker Change: madt i

Erifili Tsironi: As mentioned earlier, we have agreed to renew our management agreement expiring at the end of the year. Based on preliminary budgets for 2025 operating expenses, we don't expect the material financial impact from the terms of the new management agreement compared to the prior agreement.

Erifili Tsironi: Turning to slide 15, I will briefly discuss some key balances data. As of June 30, 2024, cash and cash equivalence, including restricted cash and time deposits in excess of 3 months over 318 million. During the first half of 2024, we paid 145.5 million net of related debt of pre-delivered installments and capitalized expenses under our new building program. We concluded the sale of 4 vessels for 91.4 million net adding about 6.7 million cash after the repayment of the respective debt.

Erifili Tsironi: Total long-term borrowings including the kind portion net of the third fees increased 1.97 billion mainly as a result of the delivery of 5 new building vessels for which the respective delivery installments were paid with debt. Net debt to book a utilization decreased to 33.6%.

Erifili Tsironi: Slide 16 highlights our debt profile. We continue to diversify our funding resources between bank debt and lease instructors, while 34% of our debt has reached interest at an average rate of 5.6%. We also try to mitigate part of the increased interest rate cost having reduced the average margin for our floating rate debt to 2.2%. While the average margin for the floating rate debt of our new building program is 1.8%. Our matured profile is target with no significant balloons due in any single year.

Erifili Tsironi: In June 2024, we entered into a new reducing revolving facility with a commercial bank for up to 95 million in order to refinance the existing debtness of 2 vessels and to finance part of the acquisition cost of 4 dry-park vessels. The great facility has 5 years term and very interest at compounded software plus 1.75 basis points per annum.

Erifili Tsironi: Turning to slide 17, you can see our ENC initiatives. We continue to invest in new energy efficient vessels and reduce emissions through energy saving devices and evasion vessel operations. In February 2024, Navigation Collaboration with Lords register founded the Global Maritime Emission Retaction Center that will focus on optimizing existing global elite efficiency. Navigation is a socially conscious group whose core values include diversity, inclusion and safety. We have strong corporate governance and clear code of ethics while our board is composed by majority independent directors.

Ted Petrone: I now pass the call to Ted Petron to take you through the industry section. Ted? Thank you, Erie.

Angeliki Frangou: The conflict in Ukraine continues with no resolution inside, the middle east is on the edge, and things can go badly quickly if some sort of new equilibrium is not established.

Ted Petrone: Please turn to slide 19 for a view of current trade disruptions. The Red Sea entrance leading to the Suez Canal, a strategic maritime transport point continues to operate at restricted transit levels. Red Sea disruptions have caused a rerouting of ships via the Cape of Good Hope, increasing cost and ton miles. Since 1st half of December, transits have reduced 61% for containers, 60% for dry boat vessels, and 53% for tankers.

Operator: Please turn to slide 7.

Angeliki Frangou: Navier's partner is a leading publicly listed shipping company with 179 vessels diversified in 15 asset classes in three sectors.

Angeliki Frangou: We have 318.4 million of cash on our balance sheet.

Ted Petrone: Panama Canal daily transit restrictions continue to ease on the back of returning seasonal rains with transits anticipated to be near normal by month end.

Ted Petrone: Please turn to slide 21 for a view of the tanker industry. Roll GDP expected to grow by 3.2% in 2024 based on the IMF's July forecast. The IEA projects 0.9 million barrels per day increase in world oil demand for 24, and a 1 million barrels per day increase in 2025. Chinese crude imports continue at healthy levels, averaging about 11.1 million barrels per day in Q2, although imports are down about 5% from the same period last year.

Ted Petrone: After a seasonally strong Q1, rates moderated slightly in Q2, but remained above long-term averages with product tankers showing the most resilience. The OPEC crude exports cuts have been somewhat mitigated by increased Atlantic Far East exports, causing high volatility to VLCC rates in Q2. Turn to the slide 22, as previously mentioned, both crude and product rates remain strong across the board due to healthy supply and demand fundamentals and shifting trading patterns. Crude ton miles are expected to grow by 3.3% in 24, and it refers to 2.2% in 25. Product tanker ton miles are expected to grow by 7.5% in 24, but are expected to decline by 2.4% in 25. These percentages increase, increases in corporate continued canal restrictions in 2024.

Ted Petrone: Turn to slide 23, the OCC growth is projected to be negative for both 24 and 25, and 0.1% negative, and 1.7% negative respectively. This decline can be partially attributed to owners' hesitance to order expensive long-lived assets in light of macroeconomic uncertainty and engine technology concerns due to CO2 restrictions enforces the beginning of the year. The current low-order book is only 7.3% of the fleet or 66 vessels, one of the lowest in 30 years. Vessels over 20 years of age are about 17 percent of the fleet or 156 vessels, which is over two times the order book.

Ted Petrone: Turn to slide 24, projected product tanker net fleet grows as 1.8% for 2024 and 4.9% for 2025. The current product tanker order book is 19.9% of the fleet, and compares favorably with the 14.4% of the fleet, which is 20 years age or older.

Angeliki Frangou: I mentioned last quarter that we believe that we are in a gliding path to a target net-level range of 20-25 percent. As you can see, a net-LPV, as of the end of the second quarter, was 31.6 percent.

Ted Petrone: In concluding the tanker sector review, tanker rates across the board continue historically healthy levels. During the season we slow summer season, the combination of moderate growth and global oil demand, new longer trading routes for both crude and products as well as one of the lowest order books in three decades, and the IMO 2023 regulations should provide for healthy tanker earnings going forward.

Angeliki Frangou: Consequently, we turn some of our focus to determining capital to our unit holders.

Angeliki Frangou: Under a dividend problem, we pay a 20 cents dividend per unit annually.

Ted Petrone: Please turn to slide 26 for the review of the dribble industry. Q2 follow the similar pattern to Q1, a strong Atlantic exports of iron or coal and grain continued, resulting in the BDI averaging 1848 slightly higher than the counter, cyclically strong Q1. Drive-O trade is expected to grow by 2.6% this year enhanced by a 4.4% in tonn miles growth with the most of this growth anticipated to come from additional Atlantic exports of the above mentioned cargo plus box site, the vast majority destined to China and Southeast Asia. Going forward, supply and demand fundamentals remain intact, longer duration trades, the low order book and tightening GHG and Mrs. regulations remain positive factors which are reflected in the futures markets.

Ted Petrone: In concluding our dribble sector review, continuing demand for natural resources, restrictions in transiting the Red Sea, war and sanction related longer haul trades combined with a slowing pace of new building deliveries all support freight rates going forward.

Ted Petrone: Please turn to slide 29 for review of the container industry. Continued strong trade flow coupled with continued rerouting of vessels away from the Red Sea and around the Cape of Goodhold, causing tonnmiles to increase by about 17% this year pushing the SCFI to 37.14, the last week of June. The SCFI reached 37.33, one week later, the highest level outside the pandemic era before correcting moderately recently.

Ted Petrone: Pressure for time-trotter rates should remain for the duration of the Red Sea disruption. However, continued record fleet growth should eventually modify these gains and reverse course when the middle east conflict settles. Although trade is expected to grow by 5.1% in 2024 and 2.9% in 2025, new building deliveries in 24 and 25 will be equivalent to approximately 16% of the fleet after record net fleet growth of 10.2% this year followed by a 4.9% in 2025. This should continue to press your rates for some time.

Ted Petrone: Turn to the slide 30, net fleet growth is expected to be 10.2% for 2024 and a further 4.9% for 2025. The current order book stands at 22.7% against 11.5% of the fleet 20 years of age or older. About 78% of the order book is for the 10K T.E.U, vessels or larger.

Ted Petrone: In concluding the container sector review, longer term supply and demand fundamentals remain challenged due to an economic and geopolitical uncertainties and an elevated order book. However, trade growth improvements increase tonn miles and world GDP growth to 3.2% this year. Revived for a counterpoint to a challenging second half of 2024.

Operator: This concludes our presentation.

Angeliki Frangou: I would like to turn the call over to Angeliquey for final comments. Angeliquey. Thank you, Ted.

Operator: This completes our formal presentation. We open the call to questions. At this time, if you would like to ask a question, please press star one on your telephone keypad. You may remove yourself at any time by pressing star two. Once again, if you would like to ask a question, please press star one. We'll pause just a moment to allow questions to you.

Omar Nokta: Our first question will come from Omar Nokta with Jeffries. Please go ahead. Thank you. Hi, guys. Good afternoon. Obviously, nice quarter. Good amount of free cash, low generation, and you continue to focus on fine tuning the fleet, selling shifts and bringing in some new ones with contract cover. Obviously, big highlight is the buyback. You spent nearly ten million dollars, which is nice. Just kind of thinking about that. Is there anything that triggered you putting that capital to work? Obviously, you highlight but disconnect between the share price and an AV. Is there anything that maybe instigated the buyback here recently? Is it comfort with the outlook? Is it the buildup of the backlog?

Angeliki Frangou: In addition, we have a 100 million unit repurchase program. Under this program, we purchase around 200,000 units through August 8 for approximately 10 million dollars. In total, so far in 2024, we have returned around 13 million of capital to our unit holders through dividends and unit repurchases.

Angeliki Frangou: I would also mention that the repurchase of our unit was a creative, the estimated NAVV of our unit based on our analyst average estimate is around $140 per unit.

Angeliki Frangou: What would you say kind of drove the decision to go after the buyback? Good morning, Omar. I think, basically, we focus on target. We are driving an AV by reinvesting in our business. You have seen that it's clear from day one. We bought over half a billion of vessels and we contracted them out about 560 million, over 560 million of contracted revenue. But at the same time, we managed to achieve our goals.

Angeliki Frangou: We are achieving our goals. Meaning, we brought down our leverage towards 31%. Our target is 20-25%. But our cash position is very close to what we have stated. So, basically, with driving an AV, which we like that by reinvesting, but we are also reaching out targets who were able to really implement on a strategy we have articulated. And we start a repurchased program, having a good firepower on that, and having an additional benefit for investors, by being additionally incremental accreation by any purchasing, capturing about 59 cents when we acquire our sales. So, this is a net good result. Yeah, certainly. Well, thanks, Angelique, for that.

Angeliki Frangou: Our per unit, the repurchase price average at about $50. Thus, we capture an $18 million discount to NAV, which represents a net accreation of 59 cents per unit.

Angeliki Frangou: We have around 90 million of availability under the unit repurchase program. The volume and timing of further repurchase will be subject to general market and business conditions, working capital requirements, and other investment opportunities among other factors.

Operator: Please turn to slide 8.

Angeliki Frangou: We short three vessels with an average age of 16.4 years in our effort at keeping a modern fleet.

Angeliki Frangou: This helps to 2.2 tankers and one post-paramage generated 64.6 million in gross proceeds and are expected to be completed in the second half of 2024.

Omar Nokta: Just a couple more follow-ups for me, just kind of on the orders. The LR2s that you just ordered, you're continuing to pay somewhere around that $66 million. That compares to maybe market valuations that suggest new buildings are closer to high 70s or close to 80 million. Are these options that you've been able to exercise? What's driving the cheaper price relative to what perception is about a new building cost? You are exactly right.

Angeliki Frangou: In terms of acquisition, we invest it around $500 million in the following seven vessels.

Omar Nokta: I mean, one of the things we do, we are discipline of purchasing, we like to focus on a quality sheet job, build on the quality of the necessary and create options for us. And I think you have seen that we have been implementing on this strategy for quite some time, giving us an advantage. Also, we are able to, we must, you know, when your diversity is actually getting, you have an obligation.

Omar Nokta: So, marching to become an asset, you need to fix it and have that buy-on. And I think we are trying to make it to be very focused on that. Yeah, yeah. And obviously, the charters now, you know, looks like a little over half, maybe over half a 50% payback over the term of the five-year charters. What's interesting, I guess, is, you know, the 2, 7,900 TEU new buildings that you just ordered, you know, those are delivering in 26 and seem to have almost a 50% payback over just the first, or basically, the four-year charter.

Angeliki Frangou: We also took delivery of four previously announced new building vessels. 35,330 Eucondane ships fixed at an average rate of $37,050 net per day for 5.2 years and one Aframax LR2 tanker fixed at $26,366 net per day for five years.

Omar Nokta: So, a pretty attractive payback, I guess, when we think about that, you know, you've been very busy being able to acquire a tonnage, put it on contract, but these container new builds are kind of stand out as having a sooner payback over just that four-year term. What do you think is any colleague can give on what's driving that? I guess one is, do those numbers make sense? I referenced, you know, that quick of a payback, but two, you know, is this a repeatable type of transaction in containers, or was this one of those one-offs?

Angeliki Frangou: We continue to add to our contracted revenue, which today is around $3.7 billion. In the second quarter and third quarter, quarter today, 2024, we added $561 million contracted revenue. Of which, $307.3 million was from six new building Aframax LR2 tankers fixed at an average rate of $28,067 net per day for five years. 125.6 million was from two new buildings, 5,000, 7,930 Eucondane ships fixed at an average rate of $43,000 net per day for four years and 128.1 million from six 4,250 Eucondane ships fixed at an average rate of 28,168 net per day for 2.1 years.

Angeliki Frangou: Our operating cash flow potentially remains strong. For the second half of 2024, contracted revenue exceeds total cash expense by $87 million.

Angeliki Frangou: Plus, we have 7,395 remaining open index days, or 27% of available base for this period.

Operator: Please turn to slide 9.

Omar Nokta: We had an opportunity to take advantage of some 26 slots at a good rate. We build on our relationship with ARS. So, this is not a repeatable, not only on the particular deal, but we are repeatable deals if you see over different CPUs and over different asset classes. We care about where we order, we care about creating the relationships and the designs of the assets. If you remember, we ordered on the same kind of type of asset, we had done the LSD fuel investment, and we repeat on the knowledge we have on the CPUs, on the type of asset with an opportunity to match with the right charting opportunity.

Angeliki Frangou: We provide an overview of the evolution of our fleet through selected metrics we feel are important.

Angeliki Frangou: As you can see, our fleet is only slightly larger than it was in the year end 2022 after a significant modernization program.

Angeliki Frangou: Our fleet aids image about the same. We maximize energy efficiency by maintaining a fleet of useful vessels with the latest technology while we patiently await the development of more carbon-neutral technologies.

Angeliki Frangou: In a vision as you can see from vessels values, the still value of our fleet has improved by about 27% since the end of 2023.

Angeliki Frangou: I would like to point out that much of this improvement has been from volatility in the container ship segment, which dropped significantly postpartumic and has recovered in 2024 as a primary benefit of the emergency conflict and longer termiles.

Omar Nokta: So, this is a continuous effort we have. And a lot of these, you may never see them. I mean, this is not one of. By the way, on also the after-matches, the LR2s, our payback is quite significant. So, we are very careful on both sides, because at the end of the story, you need to go at historical averages. We like to make sure that with the chart that we have, we bring the value, the digital value down. Thank you. Thanks, Angelika, that's helpful. Appreciate the color.

Angeliki Frangou: I would also note that these still values do not give any consideration to our contracted revenue, which today is about 3.7 billion.

Angeliki Frangou: With a stable and performing fleet, our financial metrics are strong.

Angeliki Frangou: Our data data is up 2% of our first half of 2023 and 22% of our first half of 2022.

Angeliki Frangou: Our cash balance is approaching the reserve without identified.

Angeliki Frangou: Our current net leverage is 31.6% and material improvement since the end of 2023.

Angeliki Frangou: And on our path to reach our target net LTV of 20-25%.

Angeliki Frangou: I am also pleased to report that we have negotiated new management and administrative arrangements to our fleet without existing managers.

Efstratios Desypris: Stratos will take you through these details.

Operator: I'll turn it over. Thank you. At this time, we have no further questions.

Efstratios Desypris: I now turn the presentation over to Mr. Stratos de Cyprus, Navi and Spartans operating officer.

Efstratios Desypris: Stratos, thank you again and good morning all.

Efstratios Desypris: Please set the slide 10.

Angeliki Frangou: I will turn the call back to Angelika for any closing remarks. Thank you, this completes our quote in English House.

Efstratios Desypris: In August, Navi's partners renewed its management and administrative services agreements with Navi ship management. The current agreements were lastly renewed in 2019 and are expiring at the end of 2024. Based on the new agreements, Navi ship management will continue to provide administrative services based on a local bill course with no extra fees. Additionally, Navi ship management will provide technical, commercial and other services based on the following fees tracks. $950 per day, technical management fee for own vessels, 1.25% commercial fuel and gross revenues, S&P fee of 1% on purchase or sale price, and fees for other specialized services for example supervision of new building vessels. The new management and administrative services agreements will commence on January 1st, 2025, for a term of 10 years renewing annually and is subject to a fee for termination or change of control.

Operator: Thank you.

Efstratios Desypris: Please tend to slide 11, which details are operating three cash flow potential for the second half of 2024.

Efstratios Desypris: We fixed 73% of available days at the net average rate of 26,245 dollars per day.

Efstratios Desypris: In short, contracted revenue exceeds total cash expense by 87 million. And we have 7,395 remaining operational index link days that should provide substantial additional three cash flow. On the right side of the slide, we provide our 27,878 available days by vessel type so that you can perform your own sensitivity analysis.

Efstratios Desypris: Please tend to slide 12.

Efstratios Desypris: We are always renewing the fleet so that we maintain a young profile.

Efstratios Desypris: It is part of our strategy to reduce our carbon footprint by modernizing our fleet, benefiting from your technologies and echo vessels with greener characteristics.

Efstratios Desypris: In Q2 and Q3 to date, we took delivery of four vessels.

Efstratios Desypris: 35,380 U-container seats all chatted out for an average of 5.2 years at the average net daily rate of 37,050 dollars per day.

Efstratios Desypris: One LR2 Aframax vessel, which has been chatted out for five years at 26,366 dollars per day.

Efstratios Desypris: Following these deliveries, we have 28 additional new building vessels delivered into our fleet through 2028, representing 1.8 billion of total acquisition price. In containerships, we have 8 vessels to be delivered, with a total acquisition of price of about 0.7 billion.

Efstratios Desypris: We have mitigated this risk with long-term credit worthed charges generating about 0.8 billion in revenue over a 6.7 year average surfer duration. In the tanker space, we have 20 vessels to be delivered for a total price of approximately 1.1 billion, which after about 16 of these vessels for an average period of 5 years generating aggregate contracted revenue of about 0.8 billion. We have also been opportunistically replacing older vessels.

Efstratios Desypris: In 2024, we have sold 7 vessels with an average age of 17.1 years for 157.2 million. At the same time, we exercised the purchase options on five chatted in Japanese build vessels, with an average age of 8 years for a total price of 142 million.

Efstratios Desypris: Charters are extending through 2057 with a diverse group of quality counterparties.

Efstratios Desypris: About 50% of our contracted revenue is expected to be earned in the next two years.

Erifili Tsironi: I now pass the call to Erichironi, our CFO, which will take you through the financial highlights.

Erifili Tsironi: Erich?

Erifili Tsironi: Thank you, Stratos and good morning, Maul.

Erifili Tsironi: I will briefly review our un audited financial results for the second quarter and first half of 2024. The financial information is included in the press release and is summarized in the slide presentation available on the company's website.

Erifili Tsironi: Our combined time chart equivalent rate for the second quarter of 2024 stood at 23,384 per day. In terms of sector performance, the TCE for our dry-ball fleet increased by 14% to 17,959 per day compared to the same period in 2023.

Erifili Tsironi: In contrast, our container and tanker TCE rates were approximately 15 and 10% lower respectively. TCE rates for our containers stood at 30,239 per day and for our tankers at 27,816 per day for the second quarter of 2024.

Erifili Tsironi: Evident net income NAPU were adjusted as explained in the slide footnote.

Erifili Tsironi: Excluding these amounts, adjusted the EBDA for Q22024 decreased by 1.7 million to 190 million compared to Q22023.

Erifili Tsironi: Adjust the net income for Q22024 decreased by 8 million to 94 million compared to Q22023.

Erifili Tsironi: The decrease was primarily due to the decrease not adjusted the EBDA and the 10.6 million negative effects from depreciation and amortization despite the 4.3 million positive effects from the reduction in interest rate expense and the increase in interest income.

Erifili Tsironi: In terms of sector performance, TCE rate for our dryback fleet increased by 21% to 16,090 per day compared to the same period in 2023.

Erifili Tsironi: Adjust the EBDA for the first half of 2024 increased by 7,354 million compared to the same period last year.

Erifili Tsironi: Adjusted net income for the first half of 2024 decreased by 2,166 million. Despite the increase in adjusted EBDA, our net income was negatively affected by 11.5 million increase in amortization of the third dry top special survey costs and other capitalized items. A 6.6 million decrease in the positive impact of the amortization of unfavorable list ends and a 3.6 million increase in the depreciation and amortization of intangible assets. The above decrease was partially mitigated by a 9.4 million decrease in interest expense and a 2.9 million increase in interest income.

Erifili Tsironi: Adjusted earnings per common unit for the first half of 2024 were 5.38 dollars.

Erifili Tsironi: Turning to slide 15, I will briefly discuss some key balances data.

Erifili Tsironi: As of June 30, 2024, cash and cash equivalence, including restricted cash and time deposits in excess of 3 months over 318 million. During the first half of 2024, we paid 145.5 million net of related debt of pre-delivered installments and capitalized expenses under our new building program. We concluded the sale of 4 vessels for 91.4 million net adding about 6.7 million cash after the repayment of the respective debt. Total long-term borrowings including the kind portion net of the third fees increased 1.97 billion mainly as a result of the delivery of 5 new building vessels for which the respective delivery installments were paid with debt.

Erifili Tsironi: Net debt to book a utilization decreased to 33.6%. Slide 16 highlights our debt profile.

Erifili Tsironi: We continue to diversify our funding resources between bank debt and lease instructors, while 34% of our debt has reached interest at an average rate of 5.6%.

Erifili Tsironi: We also try to mitigate part of the increased interest rate cost having reduced the average margin for our floating rate debt to 2.2%. While the average margin for the floating rate debt of our new building program is 1.8%.

Erifili Tsironi: Our matured profile is target with no significant balloons due in any single year.

Erifili Tsironi: The great facility has 5 years term and very interest at compounded software plus 1.75 basis points per annum.

Erifili Tsironi: Turning to slide 17, you can see our ENC initiatives.

Erifili Tsironi: We continue to invest in new energy efficient vessels and reduce emissions through energy saving devices and evasion vessel operations.

Erifili Tsironi: In February 2024, Navigation Collaboration with Lords register founded the Global Maritime Emission Retaction Center that will focus on optimizing existing global elite efficiency.

Erifili Tsironi: Navigation is a socially conscious group whose core values include diversity, inclusion and safety.

Erifili Tsironi: We have strong corporate governance and clear code of ethics while our board is composed by majority independent directors.

Ted Petrone: I now pass the call to Ted Petron to take you through the industry section.

Ted Petrone: Ted?

Ted Petrone: Thank you, Erie.

Ted Petrone: Please turn to slide 19 for a view of current trade disruptions.

Ted Petrone: The Red Sea entrance leading to the Suez Canal, a strategic maritime transport point continues to operate at restricted transit levels. Red Sea disruptions have caused a rerouting of ships via the Cape of Good Hope, increasing cost and ton miles. Since 1st half of December, transits have reduced 61% for containers, 60% for dry boat vessels, and 53% for tankers.

Ted Petrone: Panama Canal daily transit restrictions continue to ease on the back of returning seasonal rains with transits anticipated to be near normal by month end.

Ted Petrone: Please turn to slide 21 for a view of the tanker industry.

Ted Petrone: Roll GDP expected to grow by 3.2% in 2024 based on the IMF's July forecast. The IEA projects 0.9 million barrels per day increase in world oil demand for 24, and a 1 million barrels per day increase in 2025.

Ted Petrone: Chinese crude imports continue at healthy levels, averaging about 11.1 million barrels per day in Q2, although imports are down about 5% from the same period last year.

Ted Petrone: After a seasonally strong Q1, rates moderated slightly in Q2, but remained above long-term averages with product tankers showing the most resilience.

Ted Petrone: The OPEC crude exports cuts have been somewhat mitigated by increased Atlantic Far East exports, causing high volatility to VLCC rates in Q2.

Ted Petrone: Turn to the slide 22, as previously mentioned, both crude and product rates remain strong across the board due to healthy supply and demand fundamentals and shifting trading patterns.

Ted Petrone: Crude ton miles are expected to grow by 3.3% in 24, and it refers to 2.2% in 25. Product tanker ton miles are expected to grow by 7.5% in 24, but are expected to decline by 2.4% in 25.

Ted Petrone: These percentages increase, increases in corporate continued canal restrictions in 2024.

Ted Petrone: The current low-order book is only 7.3% of the fleet or 66 vessels, one of the lowest in 30 years. Vessels over 20 years of age are about 17 percent of the fleet or 156 vessels, which is over two times the order book.

Ted Petrone: Please turn to slide 26 for the review of the dribble industry.

Ted Petrone: Q2 follow the similar pattern to Q1, a strong Atlantic exports of iron or coal and grain continued, resulting in the BDI averaging 1848 slightly higher than the counter, cyclically strong Q1.

Ted Petrone: Drive-O trade is expected to grow by 2.6% this year enhanced by a 4.4% in tonn miles growth with the most of this growth anticipated to come from additional Atlantic exports of the above mentioned cargo plus box site, the vast majority destined to China and Southeast Asia.

Ted Petrone: Going forward, supply and demand fundamentals remain intact, longer duration trades, the low order book and tightening GHG and Mrs. regulations remain positive factors which are reflected in the futures markets.

Ted Petrone: Please turn to slide 27. The current order book stands at 9.9% of the fleet, one of the lowest since the late 90s, net fleet growth for 2024 is expected to be 3.1%, and only 2.6% in 2025, as owners remove tonnage that will be uneconomical due to the IMO 2023 CO2 rules. Vessel's over 20 in the major about 9.8% of the fleet, which is approximately equal to the low order book. In concluding our dribble sector review, continuing demand for natural resources, restrictions in transiting the Red Sea, war and sanction related longer haul trades combined with a slowing pace of new building deliveries all support freight rates going forward.

Ted Petrone: Please turn to slide 29 for review of the container industry. Continued strong trade flow coupled with continued rerouting of vessels away from the Red Sea and around the Cape of Goodhold, causing tonnmiles to increase by about 17% this year pushing the SCFI to 37.14, the last week of June. The SCFI reached 37.33, one week later, the highest level outside the pandemic era before correcting moderately recently.

Ted Petrone: Pressure for time-trotter rates should remain for the duration of the Red Sea disruption.

Ted Petrone: However, continued record fleet growth should eventually modify these gains and reverse course when the middle east conflict settles.

Ted Petrone: Although trade is expected to grow by 5.1% in 2024 and 2.9% in 2025, new building deliveries in 24 and 25 will be equivalent to approximately 16% of the fleet after record net fleet growth of 10.2% this year followed by a 4.9% in 2025.

Ted Petrone: This should continue to press your rates for some time.

Ted Petrone: Turn to the slide 30, net fleet growth is expected to be 10.2% for 2024 and a further 4.9% for 2025.

Ted Petrone: The current order book stands at 22.7% against 11.5% of the fleet 20 years of age or older.

Ted Petrone: About 78% of the order book is for the 10K T.E.U, vessels or larger.

Ted Petrone: In concluding the container sector review, longer term supply and demand fundamentals remain challenged due to an economic and geopolitical uncertainties and an elevated order book.

Ted Petrone: However, trade growth improvements increase tonn miles and world GDP growth to 3.2% this year.

Ted Petrone: Revived for a counterpoint to a challenging second half of 2024.

Ted Petrone: This concludes our presentation.

Angeliki Frangou: I would like to turn the call over to Angeliquey for final comments.

Angeliki Frangou: Angeliquey.

Angeliki Frangou: Thank you, Ted.

Angeliki Frangou: This completes our formal presentation.

Operator: We open the call to questions.

Operator: At this time, if you would like to ask a question, please press star one on your telephone keypad.

Operator: You may remove yourself at any time by pressing star two.

Operator: Once again, if you would like to ask a question, please press star one.

Operator: We'll pause just a moment to allow questions to you.

Omar Nokta: Our first question will come from Omar Nokta with Jeffries.

Omar Nokta: Please go ahead.

Omar Nokta: Thank you.

Omar Nokta: Hi, guys.

Omar Nokta: Good afternoon.

Omar Nokta: Obviously, nice quarter.

Omar Nokta: Good amount of free cash, low generation, and you continue to focus on fine tuning the fleet, selling shifts and bringing in some new ones with contract cover. Obviously, big highlight is the buyback.

Omar Nokta: You spent nearly ten million dollars, which is nice.

Omar Nokta: Just kind of thinking about that.

Omar Mostafa Nokta: Is there anything that triggered you putting that capital to work?

Omar Nokta: Obviously, you highlight but disconnect between the share price and an AV.

Omar Nokta: Is there anything that maybe instigated the buyback here recently?

Omar Nokta: Is it comfort with the outlook?

Omar Nokta: Is it the buildup of the backlog?

Omar Nokta: What would you say kind of drove the decision to go after the buyback?

Angeliki Frangou: Good morning, Omar.

Angeliki Frangou: I think, basically, we focus on target.

Angeliki Frangou: We are driving an AV by reinvesting in our business.

Angeliki Frangou: You have seen that it's clear from day one.

Angeliki Frangou: We bought over half a billion of vessels and we contracted them out about 560 million, over 560 million of contracted revenue.

Angeliki Frangou: But at the same time, we managed to achieve our goals.

Angeliki Frangou: We are achieving our goals. Meaning, we brought down our leverage towards 31%.

Angeliki Frangou: Our target is 20-25%.

Angeliki Frangou: But our cash position is very close to what we have stated.

Angeliki Frangou: So, basically, with driving an AV, which we like that by reinvesting, but we are also reaching out targets who were able to really implement on a strategy we have articulated.

Angeliki Frangou: And we start a repurchased program, having a good firepower on that, and having an additional benefit for investors, by being additionally incremental accreation by any purchasing, capturing about 59 cents when we acquire our sales.

Angeliki Frangou: So, this is a net good result.

Omar Nokta: Yeah, certainly.

Omar Nokta: Well, thanks, Angelique, for that.

Omar Nokta: Just a couple more follow-ups for me, just kind of on the orders.

Omar Nokta: The LR2s that you just ordered, you're continuing to pay somewhere around that $66 million.

Omar Nokta: That compares to maybe market valuations that suggest new buildings are closer to high 70s or close to 80 million.

Omar Nokta: Are these options that you've been able to exercise?

Omar Nokta: What's driving the cheaper price relative to what perception is about a new building cost?

Angeliki Frangou: You are exactly right.

Angeliki Frangou: I mean, one of the things we do, we are discipline of purchasing, we like to focus on a quality sheet job, build on the quality of the necessary and create options for us.

Angeliki Frangou: And I think you have seen that we have been implementing on this strategy for quite some time, giving us an advantage.

Angeliki Frangou: Also, we are able to, we must, you know, when your diversity is actually getting, you have an obligation.

Angeliki Frangou: So, marching to become an asset, you need to fix it and have that buy-on.

Angeliki Frangou: And I think we are trying to make it to be very focused on that.

Omar Nokta: Yeah, yeah.

Omar Nokta: And obviously, the charters now, you know, looks like a little over half, maybe over half a 50% payback over the term of the five-year charters.

Omar Nokta: What's interesting, I guess, is, you know, the 2, 7,900 TEU new buildings that you just ordered, you know, those are delivering in 26 and seem to have almost a 50% payback over just the first, or basically, the four-year charter.

Omar Nokta: What do you think is any colleague can give on what's driving that?

Omar Nokta: I guess one is, do those numbers make sense?

Omar Nokta: I referenced, you know, that quick of a payback, but two, you know, is this a repeatable type of transaction in containers, or was this one of those one-offs?

Omar Nokta: We had an opportunity to take advantage of some 26 slots at a good rate.

Omar Nokta: We build on our relationship with ARS.

Omar Nokta: So, this is not a repeatable, not only on the particular deal, but we are repeatable deals if you see over different CPUs and over different asset classes.

Omar Nokta: We care about where we order, we care about creating the relationships and the designs of the assets.

Omar Nokta: If you remember, we ordered on the same kind of type of asset, we had done the LSD fuel investment, and we repeat on the knowledge we have on the CPUs, on the type of asset with an opportunity to match with the right charting opportunity.

Omar Nokta: So, this is a continuous effort we have.

Omar Nokta: And a lot of these, you may never see them.

Omar Nokta: I mean, this is not one of.

Omar Nokta: By the way, on also the after-matches, the LR2s, our payback is quite significant.

Omar Nokta: So, we are very careful on both sides, because at the end of the story, you need to go at historical averages.

Omar Nokta: We like to make sure that with the chart that we have, we bring the value, the digital value down.

Omar Nokta: Thank you.

Omar Nokta: Thanks, Angelika, that's helpful.

Omar Nokta: Appreciate the color.

Omar Nokta: I'll turn it over.

Operator: Thank you.

Operator: At this time, we have no further questions.

Angeliki Frangou: I will turn the call back to Angelika for any closing remarks.

Angeliki Frangou: Thank you, this completes our quote in English House.

Operator: Thank you.

Q2 2024 Navios Maritime Partners LP Earnings Call

Request a DemoDemo

NMM

Navios Maritime Partners

Earnings