Q1 2026 Navios Maritime Partners LP Earnings Call

May 21, 2026

David Brown: Thank you for joining us for Navios Maritime Partners Q1 2026 Earnings Conference Call. With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangou, Chief Operating Officer, Mr. Efstratios Desypris, Chief Financial Officer, Ms. Erifyli Tsironi, and Chief Trading Officer, Mr. Vincent Vandewalle. 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'll 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. 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.

[Company Representative] (Navios Maritime Partners): Thank you for joining us for Navios Maritime Partners Q1 2026 Earnings Conference Call. With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangou, Chief Operating Officer, Mr. Efstratios Desypris, Chief Financial Officer, Ms. Erifyli Tsironi, and Chief Trading Officer, Mr. Vincent Vandewalle. 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'll 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. 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.

Speaker #2: To access the webcast, please go to the Investors section of Navios Partners website at www.navios-mp.com. You'll 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.

Speaker #2: 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.

Speaker #2: 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 statement.

David Brown: 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 this information contained in this conference call. The agenda for today's call is as follows. First, Ms. Frangou will offer opening remarks. Next, Mr. Desypris will give an overview of Navios Partners segment data. Next, Mrs. Tsironi will give an overview of Navios Partners financial results. Mr. Vandewalle will provide an industry overview, 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.

[Company Representative] (Navios Maritime Partners): 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 this information contained in this conference call. The agenda for today's call is as follows. First, Ms. Frangou will offer opening remarks. Next, Mr. Desypris will give an overview of Navios Partners segment data. Next, Mrs. Tsironi will give an overview of Navios Partners financial results. Mr. Vandewalle will provide an industry overview, 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.

Speaker #2: 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.

Speaker #2: 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. Frangou will offer opening remarks.

Speaker #2: Next, Mr. Desypris will give an overview of Navios Partners' segment data. Next, Mrs. Tsironi will give an overview of Navios Partners' financial results. Then, Mr. Vandewalle will provide an industry overview.

Speaker #2: 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?

David Brown: Angeliki?

[Company Representative] (Navios Maritime Partners): Angeliki?

Speaker #2: Good morning, and thank you all for joining us on today's call. I am pleased with the results for the first quarter of 2026 in which we reported net income of 106.3 million dollars and EBITDA of 212.7 million dollars earnings per common unit were $3.64 for the quarter and we announced a 6 cents distribution per unit for the quarter.

Angeliki Frangou: Good morning. Thank you all for joining us on today's call. I am pleased with the results for Q1 2026, in which we reported net income of $106.3 million and a EBITDA of $212.7 million. Earnings per common unit were $3.64 for the quarter. We announced a $0.06 distribution per unit for the quarter. Last quarter, we spoke about the emergence of a new world order, one which trade is used as an instrument of national policy. National security considerations are increasingly central to decision-making. Governments are asserting greater control over strategic supply chains. The Iranian conflict underscores this shift. It also focuses global awareness on the critical importance of the Strait of Hormuz, a vital artery for the movement of essential commodities from LNG, crude oil, refined products, and fertilizers.

Speaker #2: Last quarter, we spoke about the emergence of a new world order, one which trade is used as an instrument of national policy. National security considerations are increasingly central to decision-making and governments are asserting greater control over strategic supply chains.

Speaker #2: The Iranian conflict underscores this shift. It also focuses global awareness on the critical importance of the Strait of Hormuz, a vital artery for the movement of essential commodities from LNG and crude oil to refined products and fertilizers.

Speaker #2: We expect this conflict to have lasting implications on trade, as countries and companies look to reduce their exposure to this choke point and diversify supply routes to safer areas.

Angeliki Frangou: We expect this conflict to have lasting implications on trade as countries and companies look to reduce their exposure to this choke point and diversify supply routes to safer areas. It is too early to assess the long-term impact, and we are monitoring developments closely. As you can see on slide 3, our fleet has an average age of 9.1 years compared with an industry average of 13.7 years for our 3 segments. Our tanker fleet, with an average age of 5.5 years, is particularly useful relative to the broader tanker market. Overall, Navios fleet modernization program has created a fleet that is almost 35% younger than the industry average. More than 60% younger in comparison to the global tanker fleet. Please turn to slide 4. Navios is a leading maritime transportation company, owning, operating, and chartering a modern fleet of 173 vessels across 3 segments and 15 asset classes.

Speaker #2: It is too early to assess the long-term impact and we are monitoring developments closely. As you can see on slide three, our fleet has an average age of 9.1 years compared with an industry average of 13.7 years for our three segments.

Speaker #2: Our tanker fleet, with an average age of 5.5 years, is particularly useful relative to the broader tanker market. Overall, the Navios fleet modernization program has created a fleet that is almost 35% younger than the industry average, and more than 60% younger in comparison to the global tanker fleet.

Speaker #2: Please turn to slide four. Navios is a leading maritime transportation company owning, operating, and chartering a modern fleet of 173 vessels across three segments and 15 asset classes.

Angeliki Frangou: Our fleet is split into thirds by value, with about 1/3 in each of the tanker, dry bulk, and container segments. The overall value of our fleet, including our new building program, is $9.7 billion. As to our fleet in the water, it has $4.6 billion in net vessel equity value. We continue to make headway in reducing our net LTV towards our target of 20% to 25%. At the quarter end, we had a net LTV of 28.3%. Our balance sheet is strong, with $593 million available liquidity and credit ratings of Ba3 by Moody's and BB by Standard & Poor's. Please turn to slide 5. Diversification is our strength. Coupled with a culture of risk management, Navios can provide significant optionality. You can see this optionality in our actions over the past quarter, which I will discuss in a moment. We are continuously monitoring and assessing risk.

Speaker #2: Our fleet is split into thirds by value, with about one-third in each of the tanker-dry bulk and container segments. The overall value of our fleet, including our new building program, is 9.7 billion dollars.

Speaker #2: As to our fleet in the water, it has $4.6 billion in net vessel equity value. We continue to make headway in reducing our net LTV towards our target of 20–25%.

Speaker #2: At the quarter end, we had a net LTV of 28.3%. Our balance sheet is strong. With 593 million dollars available liquidity and credit ratings of BA3 by Moody's and BB by Standard & Poor's.

Speaker #2: Please turn to slide five. Diversification is our strength. Coupled with a culture of risk management, Navios can provide significant optionality. You can see this optionality in our actions over the past quarter, which I will discuss in a moment.

Speaker #2: We are continuously monitoring and assessing risk. We evaluate and structure transactions diligently. We also obtain robust insurance coverage, particularly important during a war environment.

Angeliki Frangou: We evaluate and structure transactions diligently. We also obtain robust insurance coverage, particularly important during a war environment, and we have implemented many tools to manage operational risks. Please turn to slide 6. This slide lays out our actions since the beginning of the year, as we witnessed increasing values in the tanker space. We were disciplined initially, taking advantage of a strengthening tanker market. We subsequently leveraged the significant VLCC appetite generated by the Iranian conflict. In early 2026, we observed a firming of VLCC values. We used this opportunity to sell two VLCCs with an average age of 16 years for $136.5 million. Our thinking at the time was that these prices were 102% above the 20-year average and 18% above the prior historical peak value. If there was any upside left, we thought that it was best for others. Subsequently, the Iranian conflict erupted.

Speaker #2: And we have implemented many tools to manage operational risks. Please turn to slide six. This slide lays out our actions since the beginning of the year as we witness increasing values in the tanker space.

Speaker #2: We were disciplined initially, taking advantage of a strengthening tanker market. We subsequently leveraged the significant VLCC appetite generated by the Iranian conflict. In early 2026, we observed a firming of VLCC values.

Speaker #2: We used this opportunity to sell two VLCCs with an average age of 16 years for $136.5 million. Our thinking at the time was that these prices were 102% above the 20-year average and 18% above the prior historical peak value.

Speaker #2: If there was any upside left, we thought that it was best for others. Subsequently, the Iranian conflict erupted. Spot VLCC rates were in a frenzy, and there was a great appetite for VLCC tonnage.

Angeliki Frangou: Spot VLCC rates were in a frenzy. There was a great appetite for VLCC tonnage. We were able to take advantage of these dynamics by engineering a transaction in which we purchased 4 newbuilding VLCCs and chartered out each of them for 5-year periods at almost $48,000 per day. This charter rate is about 24% above the 20-year average time charter rate. The VLCCs themselves were purchased at values that were only 11% above 20-year averages. This effective arbitrage de-risked our VLCC fleet expansions as we captured $357 million in contracted revenue and reduced the average age of our VLCC fleet by almost 40% to 5.9 years. I know that's a pretty dense sentence. Let me simplify.

Speaker #2: We were able to take advantage of this dynamics by engineering a transaction in which we purchased four new building VLCCs and chartered out each of them for five-year periods at almost 48,000 dollars per day.

Speaker #2: This charter rate is about 24% above the 20-year average time charter rate. The VLCCs themselves were purchased at values that were only 11% above 20-year averages.

Speaker #2: This effective arbitrage de-risked our VLCC fleet expansions as we captured $357 million in contracted revenue and reduced the average age of our VLCC fleet by almost 40%, to 5.9 years.

Speaker #2: I know that's a pretty dense sentence, so let me simplify. We expanded our VLCC fleet by almost 60% with minimal risk in a volatile time.

Angeliki Frangou: We expanded our VLCC fleet by almost 60% with minimal risk in a volatile time, and we have options for 4 more VLCCs that may allow us to continue to expand our fleet further, which we will do if we can do it creatively. Turn now to slide 7, where we outline what actions we have taken in each of our segments. The net result is summarized on the right-hand part of the slide. Our backlog or contracted revenue is a record high of $4.1 billion. We increased our backlog by 16%, and for the remaining 9 months of 2026, we already have excess contracted revenue over cash cost of $179 million, and we materially reduced our fleet average age, which now stands at 34% below the market. Please now turn to slide 8. Our diversified fleet provides revenue visibility and market exposure.

Speaker #2: And we have options for four more VLCCs that may allow us to continue to expand our fleet further which we will do if we can do it creatively.

Speaker #2: Turn now to slide seven, where we outline what actions we have taken in each of our segments. The net result is summarized on the right-hand part of the slide.

Speaker #2: Our backlog, or contracted revenue, is a record high of $4.1 billion. We increased our backlog by 16%, and for the remaining nine months of 2026, we already have excess contracted revenue over cash cost of $179 million. We materially reduced our fleet average age, which now stands at 34% below the market.

Speaker #2: Please now turn to slide eight. Our diversified fleet provides revenue visibility and market exposure. For the year, we have 53,713 available fixed and 20% are open or index.

Angeliki Frangou: For the year, we have 53,713 available days, of which 80% are fixed and 20% are open or indexed. I would note that while we generally favor long-term charters, until recently, period charters made little sense in the dry bulk sector, as the rates were weak for a prolonged period of time. Thus, about 40% of our dry bulk fleet is open or indexed. Please turn to slide 9, recent development. This slide gives you a snapshot of key financial indicators. Q1 performance was strong. We generated $106.3 million of net income and $212.7 million of EBITDA from $357 million of revenue. Our debt package is designed to mitigate risk and give maximum flexibility. Our 28.3% net LTV is on the path to our target, and 43% of our debt is at a fixed interest rate.

Speaker #2: I would note that while we generally favor long-term charters, until recently, period charters made little sense in the dry bulk sector, as the rates were weak for a prolonged period of time.

Speaker #2: Thus, about 40% of our dry bulk fleet is open or index. Please turn to slide nine. Recent development: this slide gives you a snapshot of key financial indicators.

Speaker #2: First quarter performance was strong. We generated $106.3 million of net income and $212.7 million of EBITDA from $357 million of revenue. Our debt package is designed to mitigate risk and give maximum flexibility.

Speaker #2: Our 28.3% net LTV is on the path to our target, and 43% of our debt is at a fixed interest rate. In addition, over half of our debt package has no LTV covenant.

Angeliki Frangou: Over half of our debt package has no LTV covenant, and we have almost $2 billion of assets that were debt-free. Please turn to slide 10, where we outline our return of capital program. For Q1, we returned about 1.7 million distributions to our unitholders. This represents a 20% increase from the prior level. Year to date in 2026, we repurchased 240,502 units or 0.8% of the float before this purchase for $15.6 million. Overall, under our 100-million-unit repurchase program, we have purchased 5.8% of the units outstanding, which, in a strange quirk of numbers, provide $5.8 value accretion per unit. We have approximately $16.4 million remaining purchase capacity under our original authorization. Please turn to slide 11. Navios has been executing its strategy through a challenging environment. We are focused on building a platform of excellence.

Speaker #2: And we have almost 2 billion dollars of assets that were debt-free. Please turn to slide 10, where we outline our return of capital program.

Speaker #2: For the first quarter, we returned about 1.7 million distributions to our unit holders. This represents a 20% increase from prior level. In addition, year to date, in 2026, we repurchased 240,502 units or 0.8% of the float before this purchase for 15.6 million dollars.

Speaker #2: Overall, under 100 million units repurchase program, we have purchased 5.8% of the units outstanding. Which, in a strange quirk of numbers, provide 5.8 dollars value a creation per unit.

Speaker #2: We have approximately 16.4 million remaining purchase capacity under our original authorization. Please turn to slide 11. Navios has been executing its strategy through a challenging environment.

Speaker #2: We are focused on building a platform of excellency. Over the past five years, we have grown contracted revenue by more than 20% to a record high of 4.1 billion dollars.

Angeliki Frangou: Over the past 5 years, we have grown contracted revenue by more than 20% to a record high of $4.1 billion. We have an EBITDA run rate of over $750 million and have expanded our fleet value, including a new building program, to $9.7 billion. Importantly, we have not sacrificed financial discipline in achieving these goals. In this process, we reduced our net loan to value by 37% to 28.3%. We recognize that there is more work ahead, but in an uncertain world, we believe that our proven platform, combining a diversified fleet with a disciplined risk management culture, positions us to continue delivering value through any market condition. I now turn the presentation over to Mr. Efstratios Desypris, Navios Maritime Partners L.P. Chief Operating Officer. Stratos?

Speaker #2: We have an EBITDA run rate of over $750 million and have expanded our fleet value, including our newbuilding program, to $9.7 billion.

Speaker #2: Importantly, we have not sacrificed financial discipline in achieving these goals. In this process, we reduced our net loan-to-value by 37% to 28.3%. We recognize that there is more work ahead, but in an uncertain world, we believe that our proven platform, combining a diversified fleet with a disciplined risk management culture, positions us to continue delivering value through any market presentation over to Mr. Stratos, the CPRIS, Navios Partners Chief Operating Officer.

Speaker #2: Stratos.

Efstratios Desypris: Thank you, Angeliki, and good morning all. Please turn to slide 12, which details our operating free cash flow potential for the remaining 9 months of 2026. We fixed 73% of available days at a net average rate of $27,859 per day. Contracted revenue exceeds estimated total cash operating cost by $179.2 million. We have 10,838 remaining open or index-linked days offering meaningful upside. Moving to slide 13, our contracted revenue backlog provides strong earnings visibility in an uncertain market. Taking advantage of the current strong rate environment, we grew contracted revenue by 16%, adding approximately $549 million, of which $483.5 million from 8 tankers, $65.2 million from 2 container ship vessels. Total contracted revenue reached a record high of $4.1 billion, $1.7 billion for tankers, $2.1 billion for container ships, and $0.3 billion for dry bulk. Charters are extending through 2037 with a diverse group of quality counterparties.

Speaker #1: Thank you, Angeliki, and good morning all. Please turn to slide 12, which details our operating free cash flow potential for the remaining nine months of 2026.

Speaker #1: We fixed 73% of available days at a net average rate of $27,859 per day. Contracted revenue exceeds estimated total cash operating cost by $179.2 million, and we have 10,838 remaining open or index-linked days, offering meaningful upside.

Speaker #1: Moving to slide 13, our contracted revenue backlog provides strong earnings visibility in an uncertain market. Taking advantage of the current strong rate environment, we grew contracted revenue by 16%, adding approximately $549 million, of which $483.5 million is from eight tankers and $65.2 million from two containership vessels.

Speaker #1: Total contracted revenue reached a record high of 4.1 billion. 1.7 billion for tankers, 2.1 billion for containerships, and 0.3 billion for dry bulk. Charters are extending through 2037 with a diverse group of quality counterparties.

Speaker #1: Slide 14 summarizes the fleet developments for 2026 year to date. During the period, we agreed to acquire four new building VLCCs for 482 million, with delivery expected in the second half of 2028.

Efstratios Desypris: Slide 14 summarizes the fleet developments for 2026 year to date. During the period, we agreed to acquire 4 new building VLCCs for $482 million, with delivery expected in H2 2028. The vessels have been chartered out for about 5 years at a net rate of $47,763 per day. As previously announced, we also agreed to acquire 2 scrubber-fitted Japanese new building Capesize vessels for $134.3 million. These vessels are chartered out for 5 years at a rate linked to the BCI index with an average floor rate of $25,000 per day, an average fixed premium of about $3,000 per day over the index, and 50% profit sharing above the floor rate. This structure provides downside protection, stable returns, and upside participation. The vessels are expected to be delivered in H2 2028 and Q1 2029.

Speaker #1: The vessels have been chartered out for about five years, at a net rate of 47,763 dollars per day. As previously announced, we also agreed to acquire two scrubber-fitted Japanese new building cave-size vessels for 134.3 million.

Speaker #1: These vessels are chartered out for five years, at a rate linked to the BCI index with an average floor rate of 25,000 dollars per day, an average fixed premium of about 3,000 dollars per day, over the index, and 50% profit sharing above the floor rate.

Speaker #1: These structures provide downside protection, stable returns, and upside participation. The vessels are expected to be delivered in the second half of 2028 and Q1 of 2029.

Speaker #1: We also sold five vessels for about 190 million. Two VLCCs with an average age of 16 years for 136.5 million, two dry bulk vessels for 22.8 million, and one containerships for 30 million.

Efstratios Desypris: We also sold 5 vessels for about $190 million. 2 VLCCs with an average age of 16 years for $136.5 million, 2 dry bulk vessels for $22.8 million, and 1 container ships for $30 million. Additionally, we took delivery of 5 new building vessels, 3 Aframax LR2 vessels, 1 MR2 vessel, and 1 7,900TEU container ship. All vessels delivered are chartered out for an average duration of about 5 years at a weighted average net daily rate of $29,065. We continue to actively renew our fleet to maintain a young profile. We have 26 new building vessels delivering to our fleet through 2029, representing $2.1 billion of investment.

Speaker #1: Additionally, we took delivery of five newbuilding vessels: three Aframax LR2 vessels, one MR2 vessel, and one 7,900 TEU containership. All vessels delivered are chartered out for an average duration of about five years, at a weighted average net daily rate of $29,065.

Speaker #1: We continue to actively renew our fleet to maintain a young profile. We have 26 new building vessels delivering to our fleet through 2029, representing 2.1 billion of investment.

Speaker #1: Based on our financing, both agreed-in-in-process, we have about 329 million of equity remaining to be paid. We have mitigated residual value risk of our new building program with long-term generate about 1.5 billion in contracted revenue over a five-year average charter duration.

Efstratios Desypris: Based on our financing, both agreed and in process, we have about $329 million of equity remaining to be paid. We have mitigated the residual value risk of our new building program with long-term creditworthy charters expected to generate about $1.5 billion in contracted revenue over a five-year average charter duration. I now pass the call to Erifyli Tsironi, our CFO, who will take you through the financial highlights. Erifyli?

Speaker #1: I now pass the call to Erifili Tsironi, our CFO, who will take you through the financial highlights. Erifili?

Speaker #2: Thank you, Stratos, and good morning, all. I will briefly review our announced financial results for the first quarter of '26. The financial information is included in the press release and is summarized in the slide presentation available on the company's website.

Erifyli Tsironi: Thank you, Stratos, and good morning all. I will briefly review our unaudited financial results for Q1 2026. The financial information is included in the press release and is summarized in a slide presentation available on the company's website. Moving to the earnings highlights on slide 15, total revenue for Q1 2026 increased by 17% to $357 million, compared to $312 million for the same period in 2025, due to higher fleet combined time charter equivalent rate despite lower available days. Our combined TCE rate for Q1 2026 increased by 21% to $25,679 per day, while available days decreased by 3% to 13,104 days compared to Q1 2025.

Speaker #2: Moving to the earnings highlights on slide 15, total revenue for the first quarter of '26 increased by 17% to $357 million, compared to $304 million for the same period in '25, due to higher fleet combined time charter equivalent rate despite lower available days.

Speaker #2: Our combined TCE rate for the first quarter of '26 increased by 21% to $25,679 per day, while our available days decreased by 3% to 13,104 days, compared to Q1 '25.

Speaker #2: In terms of sector performance, our TCE rate per day was higher in all three sectors as follows: a 39% increase to $17,632 for our bulkers, a 23% increase to $32,209 for our tankers, and a 4% increase to $31,696 for our containers.

Erifyli Tsironi: In terms of sector performance, our TCE rate per day was higher in all three sectors as follows: 39% increase to $17,632 for our bulkers, 23% increase to $32,209 for our tankers, and 4% increase to $31,696 for our containers. EBITDA, net income and earnings per common unit for Q1 2026 were adjusted as explained in the slide footnote. Adjusted EBITDA for Q1 2026 increased by $51 million to $204 million compared to Q1 2025. The increase was primarily driven by a $53 million increase in revenues, partially mitigated by $2 million increase in general administrative expenses, mainly due to the higher euro-dollar exchange rate prevailing during Q1 2026 compared to Q1 2025. Adjusted net income for Q1 2026 increased by $50 million to $98 million. Adjusted earnings and earnings per common unit for Q1 2026 were $3.35 and $3.64 respectively.

Speaker #2: EBITDA net income and earnings per common unit for the first quarter of '26 were adjusted as explained in the slide footnote. Adjusted EBITDA for Q1, '26 increased by 51 million to 204 million, compared to Q1, '25.

Speaker #2: The increase was primarily driven by a $53 million increase in revenue, partially mitigated by a $2 million increase in general and administrative expenses, mainly due to the higher euro-dollar exchange rate prevailing during Q1 '26 compared to Q1 '25.

Speaker #2: Adjusted net income for Q1, '26 increased by 50 million to 98 million. Adjusted earnings and earnings per common unit for the first quarter of '26 were 3.35 and 3.64 dollars, respectively.

Speaker #2: Turning to slide 16, I will briefly discuss some key balance sheet data. As of March 31st, '26, CAS and CAS equivalents including restricted CAS and time deposits in excess of three months were 421 million.

Erifyli Tsironi: Turning to slide 16, I will briefly discuss some key balance sheet data. As of 31 March 2026, cash and cash equivalents, including restricted cash and time deposits in excess of 3 months, were $421 million. In addition, we have $172 million available under 3 facilities. During Q1, we paid $21 million under our new building program, net of debt, and we concluded the sale of 1 vessel for $29 million, adding about $22 million cash after debt repayment. Long-term borrowings, including the current portion and the senior unsecured bond net of deferred fees, increased by $12 million to $2.2 billion following the delivery of 2 new buildings during Q1. Net debt to book capitalization improved to 31.2%. Slide 17 highlights our debt structure. At Q1 end, we had 55 debt-free vessels, including 17 vessels securing our unutilized revolving credit facilities.

Speaker #2: In addition, we have $172 million available under three facilities. During the quarter, we paid $21 million under our new building program, net of debt, and we concluded the sale of one vessel for $29 million, adding about $22 million cash after debt repayment.

Speaker #2: Long-term borrowings, including the current portion and the senior unsecured bond net of deferred fees, increased by $12 million to $2.2 billion, following the delivery of two new buildings during the quarter.

Speaker #2: Net debt to book capitalization improved to 31.2%. Slide 17 highlights our debt structure. At quarter end, we had 55 debt-free vessels, including 17 vessels securing our unutilized revolving credit facilities.

Speaker #2: We have a diversified financing base consisting of leasing structures in Japan and China, more than 15 active banking relationships, and more recently, a 300 million senior unsecured bond trading in the Oslo bourse.

Erifyli Tsironi: We have a diversified financing base consisting of leasing structures in Japan and China, more than 15 active banking relationships. More recently, a $300 million senior unsecured bond trading in the Oslo Bourse. In addition, 43% of our debt is fixed at an average interest rate of 6.2%, while 51% carries no loan-to-value covenant. We have also partially mitigated higher interest rate costs by lowering the average margin on our floating rate debt and bareboat liabilities for the in-the-water fleet to 1.8%. I would like to note that the average margin for the committed floating rate debt of our new building program is 1.5%. Our maturity profile is staggered, with no significant balloons due in any single year until 2030, when the bond matures. I now pass the call to Vincent Vandewalle, Navios Partners' Chief Trading Officer, to take you through the industry section. Vincent?

Speaker #2: In addition, 43% of our debt is fixed at an average interest rate of 6.2%. While 51% carries no loan-to-value covenant. We have also partially mitigated higher interest rate costs by lowering the average margin on our floating rate debt and bareboard liabilities for the in-the-water fleet to 1.8%.

Speaker #2: I would like to note that the average margin for the committed floating rate debt of our newbuilding program is 1.5%. Our maturity profile is staggered, with no significant balloons due in any single year until 2030, when the bond matures.

Speaker #2: I now pass the call to Vincent Vandewalle, Navios Partners Chief Trading Officer, to take you through the industry section. Vincent?

Speaker #3: Thank you, Eri. Please turn to slide 19. Straight off, Hormuz closure has created a major energy and shipping shock, affecting about 20% of the worldwide crude, product, and LNG flows.

Vincent Vandewalle: Thank you, Eri. Please turn to slide 19. Strait of Hormuz closure has created a major energy and shipping shock, affecting about 20% of the worldwide crude product and LNG flows. The disruption has tightened tanker availability and driven freight rates sharply higher. Rates for VLCCs hit all-time highs at $602,000 per day and remain elevated with a significant portion of the fleet trapped inside the Gulf. This shortfall has been partially mitigated by increased crude volumes from the US, Brazil, Venezuela, heading to both Europe and Asia, adding more ton-miles. Product tanker rates have been extremely strong, with MR Atlantic round voyages averaging $75,000 per day and the Pacific round voyages averaging $36,000 since the beginning of the war. Higher fuel costs and security of supply concerns are driving the purchasing and transportation of commodities and finished goods.

Speaker #3: The disruption has tightened tanker availability and driven freight rates sharply higher. Rates for VLCCs hit all-time highs at $602,000 per day and remain elevated, with a significant portion of the fleet trapped inside the Gulf.

Speaker #3: This shortfall has been partially mitigated by increased crude volumes from the USA, Brazil, and Venezuela heading to both Europe and Asia, adding more ton-miles.

Speaker #3: Product tanker rates have been extremely strong, with MR Atlantic round voyages averaging $75,000 per day and the Pacific round voyages averaging $36,000 since the beginning of the war.

Speaker #3: Higher fuel costs and security of supply concerns are driving the purchasing and transportation of commodities and finished goods. This has rate rates in the dry bulk sector for both Capes and Panamaxes and has continued to support container time charter rates.

Efstratios Desypris: This has raised rates in the dry bulk sector for both Capes and Panamax and has continued to support container time charter rates. The conflicts in the Red Sea and Ukraine continue to add ton-miles for most vessel types. With negotiations between the US and Iran moving slowly and the Strait of Hormuz effectively closed, vessel utilization will continue to run at high levels, supporting elevated rates for the near term.

Speaker #3: The conflicts in the Red Sea and Ukraine continue to add ton-miles for most vessel types. With negotiations between the U.S. and Iran moving slowly, and the Strait of Hormuz effectively closed, vessel utilization will continue to run at high levels, supporting elevated rates for the near term.

Speaker #3: Medium-term trade adjustments depend how long all prices stay elevated. And whether demand for other commodities like coal, rice, to substitute for LNG, or decreased fertilizer availability affects crop supply later this year.

Vincent Vandewalle: Medium-term trade adjustments depend how long oil prices stay elevated and whether demand for other commodities like coal rise to substitute for LNG or decreased fertilizer availability affects crop supply later this year. Prolonged Hormuz closure could still trigger a global slowdown or a recessionary demand shock, which could affect all shipping markets. Please turn to Slide 20. Navios direct exposure to the Middle East conflict is limited and our charter and fleet mix position us to benefit from disruption rather than absorb it. In dry bulk, Cape rates have risen from $28,000 per day before the war to $45,000 a day recently, and as an increased coal demand to replace lost Gulf LNG cargoes to add to a seasonal strength.

Speaker #3: Prolonged Hormuz closure could still trigger a global slowdown or a recessionary demand shock, which could affect all shipping markets. Please turn to slide 20.

Speaker #3: Navios direct exposure to the Middle East conflict is limited and our charter and fleet mix position us to benefit from disruption rather than absorb it.

Speaker #3: In dry bulk, cape rates have risen from $28,000 per day before the war to $45,000 per day recently, and there has been increased coal demand to replace lost Gulf LNG cargoes, which adds to seasonal strength.

Speaker #3: Our index-linked charges allow us to benefit from a higher sport market due to this higher coal volumes, as well as a seasonally strong iron ore bauxite and grain volumes.

Vincent Vandewalle: Our index link charters allow us to benefit from a higher spot market due to these higher coal volumes, as well as the seasonally strong iron ore, bauxite, and grain volumes. In tankers, VLCC rates peaked at $602,000 per day on March 16 and stood recently at $447,000 per day as tanker supply remains disrupted, with charterers seek to control tonnage to benefit from tighter market conditions and to be able to transport any cargoes that become available as oil is released from strategic reserves or from increased production. Most of Navios vessels are fixed on time charter, providing continued revenue with four ships trading spot or in pools, or having profit sharing to capture market upside. In addition, our VLCC new buildings will provide modern eco ships to replace the older fleet.

Speaker #3: In tankers, VLCC rates peaked at $602,000 per day on March 16 and stood recently at $447,000 per day as tanker supply remains disrupted, with charters seeking to control tonnage to benefit from tighter market conditions and to be able to transport any cargoes that become available as oil is released from strategic reserves or from increased production.

Speaker #3: Most of Navios vessels are fixed on time charter, providing continued revenue with four ships trading spot or in pools, or having profit sharing to capture market upside.

Speaker #3: In addition, our VLCC new buildings will provide modern eco-ships to replace the older fleet. Container rates have remained elevated as Red Sea diversions continue and redirection of cargoes bound for the Gulf are adding to ton miles.

Vincent Vandewalle: Container rates have been remained elevated as Red Sea diversions continue and the redirection of cargoes bound for the Gulf are adding to ton-miles. Our entire container ship fleet is fixed on long-term charters providing for a stable contracted cash flow. Across all three sectors, Navios combines limited direct exposure to the conflict with meaningful upside to the tanker and dry bulk dislocation, with preserving contracted cash flow stability. Please turn to slide 22 for the review of the dry bulk industry. Demand growth for dry bulk trade has been relatively stable over the last 25 years at about 4% average annual ton-mile growth. The current order book stands at about 13% of the total fleet and will remain low due to high new building prices, uncertainty about new fuel regulations, and yard availability, and general market outlook.

Speaker #3: Our entire container ship fleet is fixed on long-term charters, providing for a stable contracted cash flow. Across all three sectors, Navios combines limited direct exposure to the conflict with meaningful upside to the tanker and dry bulk dislocation, while preserving contracted cash flow stability.

Speaker #3: Please turn to slide 22 for the review of the dry bulk industry. Demand growth for dry bulk trade has been relatively stable over the last 25 years, at about 4% average annual ton mile growth.

Speaker #3: The current order book stands at about 13% of the total fleet and will remain low due to high new building prices, uncertainty about new fuel regulations, and yard availability and general market outlook.

Speaker #3: The fleet is aging quickly, with 39% of the vessels 15 years old, and with all the ships far exceeding those on order, supply should be constrained over the medium term.

Vincent Vandewalle: The fleet is aging quickly, with 39% of the vessels 15 years old, and with older ships far exceeding those on order, supply should be constrained over the medium term. Please turn to slide 23. The main driver of dry bulk demand will be strong Atlantic basin iron ore growth over the next several years, with new projects in Guinea, Brazil, and Liberia. The largest new project is Simandou in Guinea, which started shipments at the end of last year and is expected to ramp up to 120 millions by 2027. April's 8 shipments jumped 4 times from 2 in March. Vale in Brazil has 3 new projects totaling 50 million tons expected to start exporting by the end of 2026. Liberia will add 10 million tons of exports in 2026. In total, these 180 million tons are all long haul miles trading, creating demand for an additional 249 Capes.

Speaker #3: Please turn to slide 23. The main driver of dry bulk demand will be strong Atlantic base in iron ore growth over the next several years, with new projects in Guinea, Brazil, and Liberia.

Speaker #3: The largest new project is Simandou in Guinea, which started shipments at the end of last year and is expected to ramp up to 120 millions by 2027.

Speaker #3: April's eight shipments jumped four times from two in March. Valais in Brazil has three new projects totaling 50 million tonnes expected to start exporting by the end of 2026.

Speaker #3: Liberia will add 10 million tonnes of exports in 2026. In total, these 180 million tonnes are all long-haul miles, creating demand for an additional 249 capes.

Speaker #3: With the current order book of only 207 capes due in 2028, a further tightening of supply and demand is expected over the next few years benefiting rates.

Vincent Vandewalle: With the current order book of only 207 Capesize due in 2028, a further tightening of supply and demand is expected over the next few years, benefiting rates. Overall, the dry bulk market looks positive based on steady long-term demand growth and a constrained supply of vessels. Please turn to slide 25 for the review of the tanker industry. As to supply, we see a tanker order book of 23%. About 50% of the fleet is already 15 years old, rising quickly in the next few years. With older vessels exceeding the order book and yards offering first deliveries in late 2028 or early 2029, supply is set to be tight for several years. Please turn to slide 26. The U.S. Office of Foreign Assets Control, OFAC, the EU, and the UK continue to sanction Russian and Iranian oil revenue and ships delivering their crude and products.

Speaker #3: Overall, the dry bulk market looks positive based on steady long-term demand growth and a constrained supply of vessels. Please turn to slide 25 for the review of the tanker industry.

Speaker #3: As to supply, we see a tanker order book of 23%. About 50% of the fleet is already 15 years old, rising quickly in the next few years.

Speaker #3: With all those vessels exceeding the order book and yards offering first deliveries in late 2028 or early 2029, supply is set to be tight for several years.

Speaker #3: Please turn to slide 26. The US Office of Foreign Asset Control, OFAC, the EU, and the UK continue to sanction Russian and Iranian oil revenue and ships delivering their crude and products.

Speaker #3: The US recently imposed secondary sanctions on certain Chinese refineries that have purchased Iranian crude, and has seized two Iranian VLCCs laden with crude oil and disabled a third one that was heading back to Iran to load.

Vincent Vandewalle: The US recently imposed secondary sanctions on certain Chinese refineries that have purchased Iranian crude and have seized 2 Iranian VLCCs laden with crude oil and disabled a third one that was heading back to Iran to load. These tighter sanctions have two main effects. Sanctioned oil volumes from these countries have more difficulty finding willing buyers, raising demand for compliant barrels and non-sanctioned vessels to carry that oil. With 855 mostly overaged tankers now sanctioned, the fleet has already seen a significant reduction of about 15% of total capacity. The tanker market also looks positive over the medium term based on a low order book compared with an aging and reduced fleet due to sanctions. Please turn to slide 28 for a review of the container industry.

Speaker #3: These tight sanctions have two main effects. Sanctioned oil volumes from these countries have more difficulty finding willing buyers, raising demand for compliant barrels and non-sanctioned vessels to carry that oil.

Speaker #3: With 855 mostly overarched tankers now sanctioned, the fleet has already seen a significant reduction of about 15% of total capacity. The tanker market also looks positive over the medium term, based on a low order book compared with an aging and reduced fleet due to sanctions.

Speaker #3: Please turn to slide 28 for the review of the container industry. After the COVID pandemic, container ship orders were mainly for the biggest units with fleet expansion in large ships set to continue at high levels.

Vincent Vandewalle: After the COVID pandemic, container ship orders were mainly for the biggest units, with fleet expansion in large ships set to continue at high levels. Currently, 75% of the order book is for ships with 9,000 TEU capacity or greater, and only 21% of the order book is for 2,000 to 9,000 TEU capacity, where Navios is most active. Smaller segments of the fleet are well-positioned to take advantage of shifting trading patterns. As shown on the right-hand graph, growth in non-mainland trades far exceeds the traditional mainland trades to the US and Europe due to tariffs and higher growth in developing countries. Trades involving the southern hemisphere, mostly served by smaller size vessels, are expected to see continued healthy growth as this trade shift continues. Overall, Navios fleet is well-positioned within the container market and continues to benefit from long-term employment with our high-quality charters. This concludes our presentation.

Speaker #3: Currently, 75% of the order book is for ships with 9,000 TEU capacity or greater, and only 21% of the order book is for 2,000 to 9,000 TEU capacity, where Navios is most active.

Speaker #3: Smaller segments of the fleet are well positioned to take advantage of shifting trading patterns. As shown on the right-hand graph, growth in non-mainland trades far exceeds the traditional mainland trades to the US and Europe due to tariffs and higher growth in developing countries.

Speaker #3: Trades involving the southern hemisphere mostly served by smaller-sized vessels are expected to see continued health growth as this trade shift continues. Overall, Navios fleet is well positioned within the container market and continues to benefit from long-term employment with our high-quality charters.

Speaker #3: This concludes our presentation. I would now like to turn the call over to Angeliki Frangou for her final comments. Angeliki?

Vincent Vandewalle: I would now like to turn the call over to Angeliki Frangou for her final comments. Angeliki?

Speaker #1: Thank you, Vincent, and this concludes our formal presentation. We open the call to questions.

Angeliki Frangou: Thank you, Vincent, and this completes our formal presentation. We open the call to questions.

Speaker #2: Thank you. If you'd like to ask a question, press star one on your keypad. To leave the queue at any time, press star two.

Operator 2: Thank you. Our first question today comes from Omar Nokta with Clarksons Securities. Your line is now open.

Operator: Thank you. Our first question today comes from Omar Nokta with Clarksons Securities. Your line is now open.

Speaker #2: Once again, that is star one to ask a question. Our first question today comes from Omar Nokta with Clarkson Securities. Your line is now open.

Speaker #3: Thanks, operator. Thank you. Hi, Angeliki. And team, thank you for the update. Always very thorough. Good update on the business and the markets. Just a couple of questions from me.

Omar Nokta: Thanks, operator. Thank you. Hi, Angeliki and team. Thank you for the update. Always very thorough. Good update on the business and the markets. Just a couple of questions from me. As we think about things, you've had a fairly balanced fleet here across tankers, dry bulk, and containers. Basically all three are firing, you could say, on all cylinders, obviously within a cloud of uncertainty. The cash is starting to come in here a bit more aggressively now, especially as we look forward to Q2 based off what we're seeing in dry bulk. How do you think about how this capital gets deployed as it starts to come in bigger amounts? Obviously, you've continued this rejuvenation approach, as you've highlighted.

Speaker #3: As we kind of think about things, you've had a fairly balanced fleet. Here across tankers, dry bulk, and containers, and also basically all three are firing, you could say, an all-cylinders obviously within a cloud of uncertainty.

Speaker #3: But the cash is starting to come in here a bit more aggressively now, especially as we kind of look forward to Q2 based off what we're seeing in dry bulk.

Speaker #3: How do you think about how this capital gets deployed as it starts to come in in bigger amounts? Obviously, you've continued this rejuvenation approach.

Speaker #3: As you've highlighted, but as we think about this cash as it comes in, how do you balance where that goes in terms of keeping it on the balance sheet or paying down debt?

Omar Nokta: As we think about this cash as it comes in, how do you balance where that goes in terms of keeping it on the balance sheet or paying down debt? Do you double down and add more vessels from here? Do you step up returns to shareholders? How, I guess, do you evaluate these different options given just how strong the cash is starting to come in? Thank you.

Speaker #3: Do you double down and add more vessels from here? Do you step up returns to shareholders? How, I guess, do you evaluate these different options given just how strong the cash is starting to come in?

Speaker #3: Thank you.

Speaker #1: Hello, Omar. I mean, actually, you know that we're a disciplined company. We have a target of reducing RLTV, which we are basically now very close to the 2025 that we said.

Angeliki Frangou: Hello, Omar. Actually, you know that we're a disciplined company. We have a target of reducing our LTV, which we are basically now very close to the 2025 that we said. We generate good cash flows. What we care about is, we have a total return of policies of capital to our investors through dividends, buyback, which obviously is a board decision that we are very committed on that. Very importantly is also we redeploy cash and create NAV. You have been familiar with us, and you have seen when we start consolidating about over three years ago, what we have done. We double our NAV by building these good transactions, cash flows, and backlog. That's a lot of effort. At the same time, we are increasing our share price. This is the drivers of the market.

Speaker #1: We generate good cash flows on cash flows. And what we care about is we have a total return policy of capital to our investors through dividends, buyback, which we are—obviously, it's a board decision—but we are very committed on that.

Speaker #1: But very importantly is also we did deploy cash and create an AV. I mean, you have been familiar with us, and you have seen when we start consolidating about over three years ago, what we have done.

Speaker #1: We double our NAV by building this good transactions cash flows backlog. That's a lot of effort. Sounds and at the same time, we are increasing our share price.

Speaker #1: So this is the drivers of the market. And basically, these transactions that we actually announced today is basically this kind of a strategy. It's basically two different transactions.

Angeliki Frangou: Basically, this transaction that we actually announced today is basically this kind of a strategy. It's basically 2 different transactions. We sold 2 VLCCs before the Iranian war started. Why? Because we saw good values. You had 16-year-old vessels, and we saw that the values of these vessels became double the 20-year average value. About 18% above the historical peak. I'm not saying that the market could not have gone up. We don't know. We left the rest. We prefer to sell those vessels because we left the upside to someone else.

Speaker #1: We sold two VLCCs. Before the Iranian war started, why? Because we saw good values. You had 16-year-old vessels, and we saw that the values of these vessels became double the 20-year average value.

Speaker #1: And about 18% above the historical peak. I'm not saying that the market could not have gone up. We don't know. But we left the rest.

Speaker #1: We prefer to sell those vessels. And because we left the upside to someone else. Then when the war started, we saw that there was a strong demand for VLCCs.

Angeliki Frangou: When the war started, we saw that there was a strong demand for VLCC, so we canvassed the area, and we spotted a good shipyard with the engines we wanted, and we went and we did 4 new buildings with optional transaction, and that gave us the ability to really fix older vessels at 11% the historical 20-year average value on new buildings while fixing them for 5 years at almost 25% of the historical rate. This is kind of transaction that our platform is here, and we will do everything possible, return capital while creating an AV that really drives the long-term trends for our company. We will use different strategy for different sectors. You saw the way we stepped in 2026. When we stepped in on the dry sector, we're about 25% fixed because we didn't see the long-term rates that made sense.

Speaker #1: So we canvassed the area, and we spotted good CPR with the engines we wanted. And we went and we did four new buildings with optional transactions.

Speaker #1: And that gave us the ability to really fix all the vessels at 11% of the historical 20-year average value on newbuildings, while fixing them for five years at almost 25% of the historical rate.

Speaker #1: This is kind of transaction that our platform is here. And we will do everything possible return capital while creating an AV that really drives the long-term trend for our company.

Speaker #1: And we will use different strategy for different sectors. I mean, you saw the way we stepped in in 2026 when we stepped in on the dry sector.

Speaker #1: We were very we're about 25% fixed because we didn't saw the we didn't see the long-term rates that made sense. We captured part of the spot market today.

Angeliki Frangou: We captured part of the spot market today. It is a mix of a strategy that the cash in our balance is the low leverage and our ability to really act on different ways where we see opportunities.

Speaker #1: So it is a mix of a strategy that the cash in our balance is the low leverage and our ability to really act on different ways where we see opportunities.

Speaker #3: Thanks, Angeliki. Very good summation. Of the approach. And I guess you did touch on those new buildings, which I kind of wanted to ask a bit.

Omar Nokta: Thanks, Angeliki. Very good summation of the approach. I guess you did touch on those new buildings, which I kind of wanted to ask a bit, clearly it's very much an obvious way in terms of acquiring these new buildings and de-risking them with charters. It looks like you're going to be able to pay down a good chunk of that investment in that initial charter. It's interesting because it seems like you canvassed this approach shortly after the war, and you were able to secure a contract fairly quickly. As we think about those options that you have, I think you mentioned there's 2 new building options. What's the likelihood that if you placed them, that you would be able to repeat this type of charter? Is it that liquid of a TC market to be able to do that in conjunction?

Speaker #3: Way in terms of acquiring these new buildings and de-risking them with charters. And it looks like you're going to be able to pay down a good chunk of that investment in that initial charter.

Speaker #3: It's interesting because it seems like you can just this approach shortly after the war. And you were able to secure a contract fairly quickly.

Speaker #3: As we think about those options that you have, I think you mentioned there are two new building options. What's the likelihood that if you placed them, that you'd be able to repeat this type of charter?

Speaker #3: Is it that liquid of a TC market to be able to do that in conjunction? Or would you be taking on some risk by ordering those vessels?

Omar Nokta: Would you be taking on some risk by ordering those vessels?

Angeliki Frangou: You know the Navios MO. I mean, we are not changing the way we act. The issue is that we have 2 plus 2 options. We're seeing interest on the vessels. We are reviewing opportunities, and if we have something, we will exercise. This is options that we can exercise if we like.

Speaker #1: You know the obvious symbol. I mean, we are not changing the way we act. So the issue is that we have two plus two options.

Speaker #1: And we see interest on the vessels. We are reviewing opportunities. And if we have something, we will exercise. This is options that we can exercise if we like.

Speaker #3: Okay, thank you. And then maybe just one final, very—hopefully just a simple accounting question. I think I have in my notes that at year-end, the newbuilding installments or the deposits on the balance sheet amounted to about $470 million.

Omar Nokta: Okay, thank you. Maybe just 1 final, very, hopefully just a simple accounting question. I think I have in my notes at year-end, the new building installments or the deposits on the balance sheet amounted to about $470 million. Do you have an updated figure for quarter end?

Speaker #3: Do you have an updated figure for quarter-end?

Speaker #1: What do you mean? How much we have already paid for the new buildings?

Angeliki Frangou: What do you mean? How much we have already paid for the new buildings?

Erifyli Tsironi: What do you mean? How much we have already paid for the new buildings?

Speaker #3: Yeah.

Omar Nokta: Yeah.

Angeliki Frangou: In the quarter, just $21 million. You want the cumulative? Maybe I will send the figure to you. It is better.

Erifyli Tsironi: In the quarter, just $21 million. You want the cumulative? Maybe I will send the figure to you. It is better.

Speaker #1: In the quarter just 21 million. But you want the cumulative. Maybe I will send the figure to you better.

Speaker #3: Okay. Thank you. All right. I'll pass it back.

Omar Nokta: Okay. Thank you. All right, I'll pass it back.

Speaker #1: 475, actually.

Angeliki Frangou: 475, actually.

Erifyli Tsironi: 475, actually.

Speaker #3: 475?

Omar Nokta: 475?

Speaker #1: 475 the cumulative and 21 during the quarter.

Angeliki Frangou: 475 the cumulative and 21 during the quarter.

Erifyli Tsironi: 475 the cumulative and 21 during the quarter.

Speaker #3: Okay, perfect. Thank you very much.

Omar Nokta: Okay, perfect. Thank you very much.

Angeliki Frangou: Thank you.

Erifyli Tsironi: Thank you.

Speaker #2: Thanks.

Speaker #4: Thank you. Our next question will come from Christopher Skay with Arctic Securities. Your line is now open.

Operator 2: Thank you. Our next question will come from Kristoffer Barth Skeie with Arctic Securities. Your line is now open.

Operator: Thank you. Our next question will come from Kristoffer Barth Skeie with Arctic Securities. Your line is now open.

Speaker #5: Hey, guys. Thanks for a good presentation as always. Hello, hello. I'm a congressman on another good core Angeliki. I must say, you are one of few shipowners.

Kristoffer Barth Skeie: Hey, guys. Thanks for a good presentation.

Kristoffer Skeie: Hey, guys. Thanks for a good presentation.

Angeliki Frangou: Hello

Kristoffer Barth Skeie: as always. Hello, hello, and congrats on another good quarter. Angeliki, I must say, you are one of few shipowners I talked to right after the beginning of the war who were actually bullish on tankers now, and that's paid off excellent. A good call. I just want to ask, given how strong the market is, I want to ask you about charter backlog strategy. I mean, those 4 VLCCs seems like a really good deal. Going forward, should we expect continued emphasis on locking in similar type deals? Could we see you sort of taking more value in retaining spot exposure, especially sort of how bright the dry bulk outlook is currently also?

Kristoffer Skeie: as always. Hello, hello, and congrats on another good quarter. Angeliki, I must say, you are one of few shipowners I talked to right after the beginning of the war who were actually bullish on tankers now, and that's paid off excellent. A good call. I just want to ask, given how strong the market is, I want to ask you about charter backlog strategy. I mean, those 4 VLCCs seems like a really good deal. Going forward, should we expect continued emphasis on locking in similar type deals? Could we see you sort of taking more value in retaining spot exposure, especially sort of how bright the dry bulk outlook is currently also?

Speaker #5: I talked to you right after the beginning of the war. You were actually brilliant on tankers. And that's paid off. Excellent. So a good call.

Speaker #5: I just want to ask, given how strong the market is, I want to ask you about charter backload strategy. I mean, those four VLCCs were seems like a really good deal.

Speaker #5: But going forward, should we expect continued emphasis on looking at similar-type deals? So, could we see you taking more value in retaining spot exposure, especially considering how bright the dry bulk outlook is currently, also?

Speaker #1: I will tell you the truth. I never know where the opportunity will come. To be honest, we have seen that there's today, you can see opportunities on even the dry bulk to do period charters.

Angeliki Frangou: I will tell you the truth. I never know where the opportunity will come. To be honest, we have seen that today you can see opportunities on even the dry bulk to do period charters. The reason you see we are open is because we watch the market, and we select the right time. On the tankers, we saw a good opportunity for 5-year deals at about 18%, 20% above the historical rate. We fixed because it did make sense with the exposure we had. On the dry bulk today, you see that there is a healthy, all of a sudden, it's developing a market where it can be a 2, 3-year period. I would say that this quarter we fixed quite significant about, you saw a quite significant backlog of about $550 million, which is significant.

Speaker #1: So the reason you see me we are open is because we watch the market. And we select the right time. On the tankers, we saw a good opportunity for a five-year about 18%, 20% above the historical rate.

Speaker #1: And we fixed because it did make sense with the exposure we had. On the dry bulk today, you see that there is a healthy all of a sudden, it's developing a market where it can be a two, three-year period.

Speaker #1: So I will say that this quarter, we fixed quite significant about you saw a quite significant backlog of about 550 million dollars. Which is significant.

Speaker #1: But there is always a strategy to add to our long-term charters if we see attractive deals. watching very much the straight and how that will shape the world.

Angeliki Frangou: There is always a strategy to add to our long-term charters if we see attractive deals. I will say another thing. We are watching very much the Strait and how that will shape the world, because this is the most important thing that we have to be mindful. It is when and if at the point where the Strait of Hormuz opens, there will be a new world order, and we will have to define what we like to do at that point. I think this is something we are very mindful.

Speaker #1: Because this is the most important thing that we have to be mindful. It is win when and if at the point where the Strait of Hormuz opens, there will be a new world order.

Speaker #1: And we will have to define what we like to do at that point. I think this is something we are very mindful.

Speaker #5: Now, sure. Sure. And then on those four VLCCs, which you added then? Is this a resale with another owner? Or is it straight with the yard?

Kristoffer Barth Skeie: Yeah, sure. For the entities which you added then. Is this a resale with another owner, or is it straight with the yard? Can you comment a bit on terms and option price levels and these things?

Kristoffer Skeie: Yeah, sure. For the entities which you added then. Is this a resale with another owner, or is it straight with the yard? Can you comment a bit on terms and option price levels and these things?

Speaker #5: And sort of can you comment a bit on terms and option price levels and these things?

Speaker #1: No. It's a hard work of creating the deal. So we have a good team. That works a lot. With aspects, the bad thing is that I'm an engineer.

Angeliki Frangou: No, it's a hard work of creating the deal. We have a good team that works a lot with aspects. The bad thing is that I'm an engineer, so I always end up to become too much of an engineer. It's aspects, our specification, our machinery list, and due diligence, yard, and the whole thing.

Speaker #1: So I always end up to become too much of an engineer. So it's aspects as specification are machinery list. And due diligence yard and the whole thing.

Speaker #5: So you have ordered it straight from the yard? It's a new order? It's nothing that's already in the order?

Kristoffer Barth Skeie: You have ordered it straight from the yard. It's a new order. It's nothing that's.

Kristoffer Skeie: You have ordered it straight from the yard. It's a new order. It's nothing that's.

Angeliki Frangou: Yes

Kristoffer Barth Skeie: already in order.

Kristoffer Skeie: already in order.

Angeliki Frangou: Yes.

Speaker #1: Yes. Yes. Yes.

Speaker #5: Yes. Okay.

Kristoffer Barth Skeie: Yes, okay.

Kristoffer Skeie: Yes, okay.

Speaker #1: Yeah. Yeah.

Angeliki Frangou: Yeah.

Kristoffer Barth Skeie: Good. The option price is at the same price or?

Kristoffer Skeie: Good. The option price is at the same price or?

Speaker #5: Good. And the option prices at the same price, or?

Speaker #1: Yes.

Angeliki Frangou: Yes.

Speaker #5: Yeah. Okay. Thanks. And final one from me. As you commented on Netbelt V is dropping fast. how should we think about the trajectory towards 25% when sort of given you have some committed new bill CapEx and upcoming deliveries?

Kristoffer Barth Skeie: Yeah, okay. Thanks. Final one from me. As you commented on net LTV is dropping fast based on fleet on the water. How should we think about the trajectory towards 25% when given you have some committed new build CapEx and upcoming deliveries. Sort of what's your sort of internal note on when that's going to happen, and when that happens, is it buybacks we should expect?

Kristoffer Skeie: Yeah, okay. Thanks. Final one from me. As you commented on net LTV is dropping fast based on fleet on the water. How should we think about the trajectory towards 25% when given you have some committed new build CapEx and upcoming deliveries. Sort of what's your sort of internal note on when that's going to happen, and when that happens, is it buybacks we should expect?

Speaker #5: So sort of what's your sort of internal note on when that's going to happen? And when that happens, sort of is it buybacks we should expect?

Speaker #1: No, I think we're working towards the end of the year. We're following the bond. Also, we are doing some prepayments. If you see, we have basically paid down all our revolvers.

Angeliki Frangou: No, I think we're working towards the end of the year. We're following the bond also, we are doing some prepayments. If you see, we have basically paid down all our revolvers. Actually, I think by the end of the year, we are in a good position to reach the target.

Erifyli Tsironi: No, I think we're working towards the end of the year. We're following the bond also, we are doing some prepayments. If you see, we have basically paid down all our revolvers. Actually, I think by the end of the year, we are in a good position to reach the target.

Speaker #1: So actually, I think by the end of the year, we are in a good position to reach the target.

Speaker #5: Very good. Okay. That's it from me. Thanks a lot.

Kristoffer Barth Skeie: Very good. Okay, that's it from me. Thanks a lot.

Kristoffer Skeie: Very good. Okay, that's it from me. Thanks a lot.

Speaker #1: Thank you.

Angeliki Frangou: Thank you.

Speaker #4: Thank you. And our next question will come from Stephanie Moore with Jefferies. Your line is now open.

Operator 2: Thank you. Our next question will come from Stephanie Moore with Jefferies. Your line is now open.

Operator: Thank you. Our next question will come from Stephanie Moore with Jefferies. Your line is now open.

Speaker #6: Hi. Thank you, everybody. Appreciate the very thorough presentation here this morning. I guess wanting to touch a little bit about, I guess, capital allocation in some respects.

Stephanie Moore: Hi. Thank you, everybody. Appreciate the very thorough presentation here this morning. I guess wanted to touch a little bit about, I guess, capital allocation in some respects. You did sell, I think, 5 vessels year to date, and you're taking delivery of several new buildings. I guess how active do you expect to be on asset sales from here? Which segments or age bands are most likely? Is the goal kind of age reduction, so deleveraging, recycling into higher return assets? Would love to get your just general thoughts on the asset sales here and the optionality that it creates. Thank you.

Speaker #6: But you did sell, I think, five vessels year to date. And you're taking delivery of several new buildings. So I guess how active do you expect to be on asset sales from here?

Speaker #6: And then which segments or age bands are most likely? And is the goal kind of age reduction, deleveraging, recycling into higher return assets? Would love to get your just general thoughts on the asset sales here and the optionality that it creates?

Speaker #6: Thank you.

Speaker #7: Hi. Hi. Actually, we see, I mean, the older vessels, we see as a natural replacement. So you saw that we sold on the dry sector.

Angeliki Frangou: Hi. Actually, the older vessels we see as a natural replacement. You saw that we sold on the dry sector, we sold vessels that were about 18 years old. It does make sense, absolute sense, to sell those vessels. The replacement is always on the older fleet, and depending on the opportunity, we step in on a new building. This is something that we'll continue to be doing. We like to reduce the average age of our fleet. We reduced it by a third, which is quite significant, of course, because we also bought the VLCC. This is a continued strategy if you see it. We sold, I would say, on the last 3 years, we sold over 50 vessels almost, and redeployed the cash on younger vessels. Another example is the way we did with the VLCCs.

Speaker #7: We sold vessels that were about 18 years old. I mean, it does make sense. Absolute sense to sell those vessels. And also, I mean, the replacement is always on the older fleet.

Speaker #7: And depending on the opportunity, we step in on new buildings. So it was on the— and this is something that we will continue to be doing.

Speaker #7: I mean, we like to reduce the average age of our fleet. We reduced it by a third, which is quite significant. Of course, because we also bought the VLCCs.

Speaker #7: But this is a continuous strategy, if you see it over the I mean, we sold, I will say, on the last three years, we sold over 50 vessels almost.

Speaker #7: And redeployed the cars on younger vessels. Another example is the way we did with the VLCCs. 16 years, at very attractive to historically, we saw that good earning capacity of those vessels.

Angeliki Frangou: 16 years are very attractive to historical. We saw the good earning capacity of those vessels, but we thought that the values we had by historical standards, this was a very attractive point to sell. You double the 20-year values of 16-year-old vessels. It did make sense, so that's what we did. This is a strategy we will continue, depending what sector gives us the opportunity, and redeploy where we find the maximum value.

Speaker #7: But we thought that the values we had by historical standards this was a very attractive point to sell. You doubled the 20-year values of 16-year-old vessels.

Speaker #7: So it did make sense. So that's what we did. This is a strategy we will continue. I mean, depending what sector gives us the opportunity.

Speaker #7: And redeploy where we find the maximum value.

Speaker #6: Thank you. No, that's really helpful. And then I did want to take maybe a higher-level question here. But with the Hormuz disruption continuing and it does continue to tighten tanker availability and pushing rates higher, I'd love to get just your thoughts in terms of maybe some of the second-order impacts here you're watching across your other segments.

Stephanie Moore: Thank you. No, that's really helpful. Then I did want to take maybe a higher level question here, but with the Hormuz disruption continuing, and it does continue to tighten tanker availability and pushing rates higher, I'd love to get just your thoughts in terms of maybe some of the second order impacts here you're watching across your other segments. Anything that we should think about if this conflict does persist longer than maybe everyone expected at first, if that changes anything else across, again, your other segments, just given you are diversified outside of just tankers. Again, higher level there, but would love to get your thoughts. Thanks, everybody.

Speaker #6: Anything that we should think about if this conflict does persist longer than maybe everyone expected at first? If that changes anything else across, again, your other segments, just given you are diversified outside of just tankers.

Speaker #6: So again, higher level there. But would love to get your thoughts. Thanks, everybody.

Speaker #1: I think this is a good question. I'll tell you one thing. I mean, you have a deficit of oil. This deficit is half a billion barrels over the period when the Strait of Hormuz will open.

Angeliki Frangou: I think this is a good question. I'll tell you one thing. You have a deficit of oil. This deficit is half a billion barrels over the period when the Strait of Hormuz will open. That at this point, unless you end up on a recession, the reality is that you will have a move for replenishing the oil that has been used, and replenishing depleted reserves. The other thing, naturally, you will go as there is for 1 metric ton of gas is equivalent to 2 metric tons of coal. You will see that drivers continue. You will see more fertilizers and other commodities move on the dry. You can see the macro level drivers. Absent to this creating a different situation where you constrain demand, and that is a big question.

Speaker #1: At this point, unless you end up in a recession, the reality is that you will have a move for buying—replenishing the oil that has been used.

Speaker #1: And replenishing depleted reserves. The other thing, naturally, you will go, as there is, for one metric ton of gas, is equivalent to two metric tons of coal.

Speaker #1: You will see that drivers continue. You will see more fertilizers and other commodities move on the dry. So you can see the macro-level drivers.

Speaker #1: Absent to this creating a different situation where you constrain demand and that is the big question. So we are watching very carefully the market.

Angeliki Frangou: We are watching very carefully the market, and we are trying to assess, to act as prudently as possible. The one good thing about Navios is that you have this good backlog. You have the security and the speed on your earnings. We can be very quick on acting in any way we see that makes sense.

Speaker #1: And we are trying to assess to act as prudently as possible. The one good thing about Navios is that you have this good this backlog.

Speaker #1: You have the security and visibility of your earnings. So we can be very quick on acting in any way we see that makes sense.

Speaker #6: Really helpful. Thank you, everybody.

Stephanie Moore: Really helpful. Thank you, everybody.

Speaker #1: Thank you.

Angeliki Frangou: Thank you.

Speaker #4: Thank you. At this time, there are no further questions in queue. I will now turn the meeting back to Angeliki for closing comments.

Operator 2: Thank you. At this time, there are no further questions in queue. I will now turn the meeting back to Angeliki for closing comments.

Operator: Thank you. At this time, there are no further questions in queue. I will now turn the meeting back to Angeliki for closing comments.

Speaker #1: Thank you. This completes Q1 results.

Angeliki Frangou: Thank you. This completes our Q1 results.

Operator 2: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

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