Navios Maritime Partners LP

Thank you for joining us for Navios Maritime Partners' Second Quarter 2025 Earnings Conference Call. With us today from the company are Chairwoman and CEO, Mrs. Angeliki Frangou, Chief Operating Officer, Mr. Stratos De Cipris, Chief Financial Officer, Mrs. Eri Tzironi, and Chief Trading Officer, Mr. Vincent Vandevale. 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 contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Navier's partners. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of novice 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 novice partners' filings with the Securities and Exchange Commission. The information therefore herein should be understood in light of such risks. Now, this partner 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. Franville will offer opening remarks. Next, Ms. DeCebris will give an overview of another partner's segment data. Next, Ms. Tironi will give an overview of another partner's financial results. Then, Mr. Vandervalle will provide an industry overview. And lastly, we'll open the call to take questions. Now, I turn the call over to NAVIS Partners Chairwoman and CEO, Mrs. Angeliki Frankel. Angeliki?

Good morning all and thank you for joining us on today's call. I am pleased with the results for the second quarter of 2025 in which we reported revenue of $327.6 million and an EBITDA of $178.2 million and net income of $69.9 million. Earnings per common unit were $2.34 for the quarter. Global economies have been surprisingly robust given their uncertain macro environment. In addition, we are witnessing the creation and reshaping of new trade patterns with longer distances due to the war in Ukraine and Russia, continual attacks in the Red Sea, and a new and evolving world tariff regime. As a result, the shipping market generally is healthy. Please turn to slide 6. Navios Partners is a leading publicly listed shipping company with 173 vessels. These vessels have an average age of 10 years and are in 3 different segments and 15 asset classes. As you can see, the vessel value is approximately equal in each sector. We ended the second quarter with 389 million of cash on our balance sheet. Our net LTV as of the end of the second quarter was calculated at 35.3%, essentially unchanged from the last quarter. Please turn to slide 7. We generated 96 million in gross sales proceeds from the sale of three vessels with an average age of 16.5 years. We purchased two AFRAMAX LR2 tankers for $133 million and we expect delivery of these vessels in 2027. We also took delivery of one new building AFRAMAX LR2 tanker fixed for $27,446 net per day for the next five years. We recently took swift action in response to OFAC sanctions on one of our counterparties. On July 3, 2025, the U.S. Department of Treasury's Office on Offering Asset Control added a counterparty of Navier's to its sanctions list. The following day, we terminated contracts for two related VLCCs, Bill 2020 and 2021. that were bearable chartered out each at a daily net rate of $27,456 ending in October 2030 and February 2031. Swift action allowed us to redeploy these vessels into a healthy spot market. We anticipate entering into long-term charters for these vessels at an appropriate time. For the remaining six months of 2025, contracted revenue exceeds estimated total cash expense by $56 million. We have 6,838 remaining open and index days, about 25% of our available days, so we have significant cash-generative opportunities. Please turn to slide 8, where we outline a return of capital program under a dividend program we paid 20 cents dividend per unit annually in the second quarter of 2025 we paid a dividend of a million and a half dollars in addition so far this year through august 13 of 2025 we repurchased 716,575 common units for $27.8 million. Including dividends, we returned a total of $30.8 million in 2025. Under the entire unit repurchase invested $52.8 million through August 13, 2025, and we purchased 1,206,530 units, or about 4% of our common units outstanding at the time we commenced the program. As we saw on the slide, we estimate that we effectively returned an additional $3.8 per unit of value of an AV to unit holders through these purchases. As of August 13, 2025, we had $47.2 million available under our unit repurchase program. The volume and timing of further repurchases will be subject to general market and business conditions, working capital requirements, and other investment opportunities, among other factors. Please turn to slide 9. We outline the challenges we have been addressing. We assemble a team regularly to dive into the details of emerging information in an attempt to understand how various risks are evolving. On the top right part of the slide, we outline how we are addressing the uncertain market and the things we have accomplished. The $3.1 billion in contracted revenue stems from our action in past markets, where sentiment allows us to enter into long-term charters. We are also focused on our interest rate risk. we have been hedging this risk either by entering into fixed rate financing arrangements or through hedges that do not require posting additional collateral. At the bottom of the slide, we show how our fleet has evolved through selected metrics. As you can see, our fleet size and age are about the same as they were in the year end 2022. However, about 28% of our fleet was acquired in the past four and a half years, so we maximize energy efficiency by maintaining a fleet of useful vessels with the latest technology. On the financial side, we focus on the leveraging and reduced net LTV from 45% at the end of 2022 to 35.3% at the end of the second quarter 2025. I now turn the presentation over to Mr. Stratos Desiklis, Navios partner, Chief Operating Officer. Stratos?

Thank you, Angeliki, and good morning all. Please turn to slide 10, which details our operating free cash flow potential for the second half of 2025. We fixed 75% of available days at a net average rate of $24,989 per day. Contracted revenue exceeds estimated total cash expense by about 56 million and we have 6,838 remaining open or index linked days that should provide substantial additional cash flow. So that you can perform your own sensitivity analysis, on the right side of the slide we provide our 27,615 available days by vessel type. Please turn to slide 11. We are constantly renewing our fleet in order to maintain a young profile. We reduce our carbon footprint by modernizing our fleet, benefiting from newer technologies and advanced environmentally friendly features. During the second quarter, we acquired two new building AFRA Maxell R2 vessels for $133 million. Vessels are expected to be delivered in the first half of 2027. In June 2025, we took delivery of one AFRA Maxell R2 vessel that has been chartered out for five years at an average net daily rate of $27,446. We have 22 additional new building vessels delivering to our fleet through 2028, representing 1.4 billion of investment. Based on our financing, both agreed and in process, we have about 150 million of equity remaining to be paid. In container ships, we have four vessels to be delivered, with a total acquisition price of about 0.4 billion. We have mitigated residual value risk with long-term credit-worthy charters, expected to generate about $0.3 billion in revenue over a five-year average charter duration. In time-case, we have 18 vessels to be delivered for a total price of approximately $1 billion. We chartered out 12 of these vessels for an average period of five years, expected to generate aggregate contracted revenue of about $0.6 billion. We have also been opportunistically selling older vessels. In 2025, we sold 6 vessels, 3 dry bulk and 3 container ships with an average age of 18 years for a total of about 130 million. Moving to slide 12, we have a strong backlog of contracted revenue that we beat over the previous years that creates visibility in an uncertain environment. Contracted revenue was reduced by about 150 million due to the sale of one transshipment vessel and the termination of the contracts on two VLCC vessels which are currently employed in a healthy spot market. Post these events, our total contracted revenue amounts to 3.1 billion. 1.2 billion relates to our tanker fleet, 0.2 billion relates to our dry bulk fleet and 1.7 billion relates to our containerships. Charters are extending through 2037 with a diverse group of quality counterparts. I now pass the call to Eri Cironi, our CFO, who will take you through the financial highlights. Eri?