Navios Maritime Partners LP

Maritime Partners, 4th Quarter 2022 Earnings Conference Call. With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangou, Chief Operating Officer, Mr. Shartos Desypris, Chief Financial Officer, Ms. Eri Tsironi, and Vice Chairman, Mr. Ted Petrone. As a reminder, the conference call is being webcast. To access the webcast, please go to the Investor section of Navios website at www.navios.mlp.com. You'll see the webcasting link in the middle of the page. Any copies of the presentation, reference, and today's earnings conference call will also be found there. Now, I will review the State Farber Statement. This conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, found now with partners. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of Maui's Partners Management and are subject to risks and uncertainties which would cause actual results to differ materially from the forward-looking statements. Such risks are more fully discussed in Maui's Partners Filings with the Securities and Exchange Commission. The information set forth herein should be understood in light of such risks. NABIA's partners do 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 NABIA's partner segment data. Next, Ms. Tsironi will give an overview of NABIA's partner's financial results. Then, Mr. Patron will provide industry overview. And lastly, we'll open the call to take questions. Now I turn the call over to Navya's Partners, Chairwoman and CEO, Ms. Angeliki Frangou. Angeliki?

Good morning to all of you joining us on today's call. I am pleased with the results for the year and fourth quarter of 2022. For the full year, we reported revenue of $1.2 billion and net income of $579.2 million. For the fourth quarter, we reported revenue of $370.9 million and net income of $118.3 million. We are also pleased to report net income per common unit of $18.82 for the full year. Navios Partners is a leading publicly listed shipping company diversified in 15 asset classes in 3 sectors with an average vessel age of about 9.5 years. Navios Partners entered 2023 repositioned. Over the last couple of years, NMM acquired three fleets, one in each of containers, tankers, and dry bulk segments. Today, we have 176 vessels built roughly equally into three sectors, based on a charter-adjusted basis. In addition to achieving diversification, We have been actively managing our portfolio to maintain a younger, more technologically advanced fleet as we believe the newer technologies are a competitive advantage when compared to the older versions. Our business models allow us to take advantage of opportunities when a segment is experiencing difficulties such as when we acquired Tangers in 2021. We can also The cost of acquired assets can be offset by attractive long-term credit water charges, such as with depreciation with containers and tankers. As ever, our interest is battered by macro events and uncertainty dominates all forecasts. Recessions threaten as federal banks tighten liquidity. Trading patterns are changing because of the Ukrainian conflict and the collateral consequences of the pandemic. So far, global trade has adapted to these conditions, mostly by increasing tomahawks for wealth and dry commodities. We remain vigilant. We are also focused on reducing leverage rates in medium terms. After a period of relative activity in nationalizing our acquired fleet by selling old vessels and acquiring new vessels, we have a net LPV of about 45%. Measure at the end of the fourth quarter 2022 for all vessels in the world. Our goal is to reduce leverage so that our net LPG falls within a range of between 20 and 25%. We believe that this leverage is an appropriate range for the full cycle while allowing to expand our balances should opportunities develop. Also in the current charter rate market, this should happen naturally given unexpected cash deals. Please turn to slide 7. As you can see, we had an excellent year generating net income of almost $600 million. A significant amount of our net cash flow was used to fund, number one, equity for our fluid replacement program, and second, Amortization of our debt facilities. We also have been busy in the fourth quarter. We contracted 328.3 million dollars in long term charges of which 226.5 million was for 8 tankers and approximately 102 million was for 3 newly acquired cave sized vessels. We also sold 11 vessels for $213.5 million. Our activities during 2022 created a low breakeven of $2,134 per open day. We break down on this on slide 8. As you can see, about half of our approximately 57,000 available days are open or market-exposed. We present details of the available and open days by vessel type in the right-hand side of the chart. Of the open days, about 77% are dry bags and 17% are target days. The balance being contained. We hope to generate substantial cash flow in 2023 given this low break even. I now turn the presentation over to Stratos Desypris, Navios Partners, Chief Operating Officer. Stratos.

Thank you, Angeliki. Good morning, Ros. Slide 9 demonstrates the basic principles of our diversified platform in action. We aim to benefit from common security, which creates opportunities to deploy cars from well-performing segments into assets in underperforming segments. We believe a diversified asset base mutes volatility in our currency statements. You can see this dynamic playing itself out in the ACID-MAR-ACID base. As of Q4 2022, values of containerships, adapted for values of starters, dropped by 40%, entire bulk dropped by 8%, while tank additional values increased by 42%. In sum, the net change to our flip value is a decrease of approximately 7%. We conducted this analysis valuing containerships on a satirization basis, because otherwise it would not capture our satiring activities, which effectively hedge the asset prices. Multiple segments also allows us to optimize satiring. In segments with attractive details, we can enter into period satires. In other segments, we can do basing. As you can see from the chart on the bottom, the containment segment enjoys historically high satiring. Accordingly, we fixed our containers for the long-term chapters, and in fact almost 90% of our available containers and days are fixed for 2023. This is due to market and residual risk. We monitor the current risk of the long-term chapters independently to ensure that we are not seeing the pain one way or the other. In our tanker segment, currently, current chapter rates are surpassing the 20-year average levels. We fixed available tanker days to almost 70% for 2023. We expect our target fleet will generate strong returns. Lastly, our driver signal rates are below the historical average. We have been patiently entering short term targets, avoiding some market recovery. As a result, about 30% of our available days are fixed for 2023. In slide 10, you can see our fleet renewal activities. We are always renewing our fleet, so that we maintain a young profile, benefiting from newer technologies and more carbon efficient vessels. Maritime Partners made a 1.5 billion investment in 23 billion vessels that will be delivered into our field in 2026. In container ships we are acquiring 12 vessels for a total of 860 million. We have our investment by entering into long-term credit market charges, generating about 1.1 billion in contracted revenue for about 6.5 years under the duration of the related charges. In the tanker stage, we entered the MR2 aftermath swap sector by only 6 vessels for a total price of approximately 380 million. These vessels have been trotted out for 5 years at an average net rate of $26,580 per day, generating revenues of approximately 290 million. We have also ordered 2 high-spec MR2 vessels for about 8 years. Finally, on the driver's fleet, we have 8 HSI vessels on order that are being delivered through June of 2023. These vessels have been tapped out for an average duration of about 5 years at an average of almost 90,000 hours per day. We have also been very active in the S&P market. We have sold a total of 11 vessels with an average age of approximately 14 years. We sold 7 times vessels for a total consideration of 156 million, taking advantage of a strong financial market and the corresponding increase in demand for second-hand products. Also, we sold 4 dry-bark vessels for a total price of 57.5 million. Finally, we exercised the option of acquiring one 2016-bill scrubber-tailed cave-size vessel for a total price of 40.7 million. This vessel was previously part of our juggling fleet. Moving to slide 11, we continue to secure long-term employment for our fleet. As Angeliki mentioned earlier, in Q4 we have created approximately 350 million additional contracts per year. Approximately 327 million was contracted for our target fleet, extending our target coverage in a small market. Also, we have contracted 3 million Cape-sized assets for an average duration of almost 5 years at a net rate of about $20,000 per day, generating approximately $102 million in revenue. Our total contract revenue amounts to 3.4 billion. 66% of our contract revenue comes from our contendances, with start-ups extending through 2036 with a diverse group of quality partner parties. Only 60% of this contract revenue will be earned in the next 25 years. I now pass the call to Erif Tzironi, a CFO, who will take you through the financial guidelines. Erif?