Navios Maritime Partners LP

Thank you for your attention. To access the webcast, please go to the Investors section of Navios Partners website at www.navios-mlp.com. You will see the webcast link in the middle of the page and a copy of the presentation referenced in today's Earnings Conference Goal will also be found there. Now I will review the Safe Harbours Statement. This Conference Goal 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. 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 not 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. Frangou will offer opening remarks. Next, Mr. Desypris will give an overview of Navios Partners' financial results. Then, Mr. Akhniotis will provide an operational update and an industry overview. And lastly, we will open the call to take questions. Now, I turn the call over to NAVIOS Partners Chairman and CEO, Ms. Angeliki Frangou.

Thank you, Doris, and good morning to all of you joining us on today's call. While the humanitarian crisis caused by the pandemic has been heartbreaking, we have also been strengthened by the courage and compassion of the first responders, particularly the many dedicated healthcare workers. At any given time, our vessels carry over a thousand people. Keeping these people safe and these vessels moving in and out of quarantined countries with ever-changing rules and challenges requires the immediate input of many disciplines. I am proud of the members of the Navios family as they have been shown admirable resilience during this unprecedented time of uncertainty. And we have taken the necessary measures to ensure safety of our people while keeping our fleet functioning. I am pleased with the results of the first quarter of 2020. For the first quarter, Maritime Partners reported 46.5 million of revenue and 19.1 million of adjusted EBITDA. We also declared a quarterly distribution of 30 cents per unit Representing a current yield of approximately 17%. Central banks and governments have injected unprecedented amounts of liquidity into their economies to counter the slowdown in economic activity caused by the pandemic. To date, about 16.5 trillion of such stimulus have been announced. Despite this, the pandemic's negative effect on global economic activity can be seen in the duration of the downturn in charter rates. Year-to-date, 2020, the Cape Sizes 5TC rate is averaging around $5,300 per day. This is a 70% less than the 2019 average of $18,000. We are however expecting a recovery in the second half of 2020 as the countries emerge from quarantine and return to normalised ways of doing business. We expect this normalisation should increase the need for dry bulk cargoes. As you can see from slide 5, NMM's fleet is now 48 vessels. In December 2019, we liquidated Navios Europe 1. NMM's current maritime investments are a 33.5% interest in the Navius Maritime Containers and a 5% interest in Navius Europe 2 which we expect to be liquidated in Q2. On slide 6 you can see why we believe that Navius Partners is a premier dry bulk shipping platform. We have a strong balance sheet and low leverage. We have reduced our gross debt by 3% compared to year-end 2019. We also have no debt maturities until Q3 of 2021 and no significant committed growth capex requirements. We also have cash flow capabilities with about $498 million in remaining contracted revenue. For 2020, about 62% of our 16,836 available days are fixed. at an average net rate of $13,878 per day. This has created a manageable break-even of $8,710 per open day. Slide 7 details the pandemic impact on global trade. The IMF projects a 3% decrease in 2020 global GDP, mostly driven by a 6.1% decline in advanced economies. As a result of the disruption to the world economic activity, dry bulk trade is expected to contract by 3.6% in 2020. We may have felt much of this negative impact in Q1 and so far in Q2 as countries observed extended lockdowns. Looking forward, economies are projected to recover in the second half of 2020. and dry bulk trade is projected to increase by 4.3% in 2021. Moreover, global GDP is expected to increase by 5.8% in 2021, which we would expect to be beneficiary for dry bulk market. Slide 8 details the dynamics of a rebounding commodity trade and shrinking supply of the Cape size fleet expected in the second half of 2020. Demand for the three major dry-bulb cargos, iron ore, coal and grain, are forecasted to outpace demand in the first half of 2020 by about 142 million tonnes, or 8.9%. This demand is led by iron ore, which is forecasted to grow by 14.1%. This growth should be observed from the perspective of a shrinking global cape-sized fleet. Net fleet growth 2020 here to date is negative 1%, caused by accelerating non-deliveries and scrapping of vessels alongside valence announcement of phasing out of 25 ELOC vessels. Slide 9 shows how NMM has weathered the storm during the ongoing market disruption. For the first quarter, we generated 19.1 million in adjusted EBITDA and earned a time charter equivalent rate of $10,717 per day. The vessels fixed long-term provided protection against the ongoing market downturn. We have 61.6% of our days fixed for 2020 and the remaining open days provide us with a break-even of $8,710 per day. We continue to deliver our balance sheet and reduce our gross debt by $13.5 million in the first quarter. Our net debt to book capitalization stands at 37.4% and we have no significant maturities until Q3 of 2021. We expect to liquidate Narbios Europe 2 in the second quarter of 2020. We will receive 17.3 million in the form of still value and cash. Slide 10 details our cost structure for the remaining nine months of 2020. 61.6% Our available days are fixed at an average rate of $13,878 per day. Our 6,466 open plus index linked days not only provide us with a break-even of $8,710 per open day, but also allow us to generate $7 million at current rates. Slide 11 shows our liquidity. As of March 31, 2020, we had total cash of $31.1 million and total borrowings of $476.1 million. Our net debt to capitalization is 37.4% and we have no debt maturities until Q3 of 2021 and not significant committed growth capex. At this point, I would like to turn the call to Stratos Desypris, Navios Partners CFO, who will take you through the results of the first quarter.

Thank you, Angeliki, and good morning all. I will briefly review our announced financial results for the first quarter ended March 31, 2020. The financial information is included in the press release and is summarized in the slide presentation available on the company's website. Before I start discussing our financial highlights, I would like to draw your attention to certain one-off items that are listed in slide 12. For simplicity, the discussion of the financial results below exclude the effect of the one-off items listed in this slide. Moving to the financial results as shown in slide 12, revenue for the first quarter of 2020 was almost the same as last year and amounted to 46.5 million compared to 46.8 million for Q1 of 2019. Revenue was affected by the 18.9% decrease in the time-chartered equivalent rate achieved, in the first quarter of 2020 versus the first quarter of 2019. The decrease was mitigated by the 25% increase in the available days of the fleet. Adjusted EBITDA for the first quarter of 2020 decreased to 19.1 million compared to 22.7 million for the first quarter of 2019. The main reason for the decrease was the 5.6 million increase in management fees mainly due to our larger fleet. This increase was mitigated by 1.7 million increase in equity in earnings of Navios containers. Adjusted net loss for the quarter amounted to 3.8 million. Operating surplus for the quarter was 4.4 million. Fleet utilization for the first quarter of 2020 was almost 98%. Turning to slide 13, I will briefly discuss some key balancing data as of March 31st, 2020. Cash and cash equivalents was 31.1 million. Long-term debt, including the current portion, was $476.1 million. Net debt to book capitalization was 37.4% at the end of the quarter. Moving to slide 14, we declare the cash distribution for the first quarter of 2020 of $0.30 per unit. Our current distribution provides for an effective yield of approximately 17.5% based on yesterday's closing price. The record date was May 11, 2020 and the payment date is May 14, 2020. Total cast distributions for the quarter amount to 3.4 million. Our common unit coverage for the quarter is 1.3 times. Slide 15 shows the details of our fleet. We have a large, modern, diverse fleet with a total capacity of 4.9 million airway tons and an average age of 10.9 years. Our fleet consists of 48 vessels, 14 cape sizes, 20 panamaxes, 4 ultra-handimax and 10 container ships. You can see the list of our fleet, with the contracted rates and the respective expiration dates per vessel. Our charters have an average remaining contract duration of approximately 2 years. Currently, we have contracted 84.6% of our available days for 2020, including days contracted at index-linked charters. The expiration dates extend to 2028. In slide 17, you can see the details of Navios containers. This entity was listed in NASDAQ in December 2018. Currently, it controls 29 container ships. Navios Partners has a 33.5% ownership interest in Navios containers. I now pass the call to Georgios Akhniotis, Executive Vice President of Business Development, to discuss the industry section.