Navios Maritime Partners LP

Hello and welcome everyone joining today's Navios Maritime Partners Q2 2026 earnings call. At this time all participants are in a listen only mode. Later you will have the opportunity to ask questions during the question and answer session. To register to ask a question at any time please press star 1 on your telephone keypad. Please note this call is being recorded and we are standing by if you should need any assistance.

With us today from the company are Chairwoman and CEO, Ms. Angeliki Frangou, Chief Operating Officer, Mr. Stratios Desypris, Chief Financial Officer, Ms. Zairi 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, 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 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 Navajo 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 Navajo 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. Then, Mr. Vandewalle will provide an industry overview. And lastly, we'll open the call to take questions. Now, I turn the call over to NAVIUS Partners Chairwoman and CEO, Ms. Angeliki Frangou. Angeliki?

Good morning, and thank you all for joining us on today's call. I am pleased with the results. For the second quarter and first six months of 2026, we reported net income of $167.9 million and $274.3 million and a debt of $275.2 million and $487.8 million, earnings per common unit of $5.78 and $9.42. We also announced a $0.06 distribution per unit for the quarter. We continue to operate in a world marked with uncertainty and conflict. The war between Russia and Ukraine remains unresolved. The persistent attacks in the Strait of Hormuz and more recent ones in the Red Sea have caused persistent disruptions to global trade flows. Against this backdrop, trade has been surprisingly resilient and energy prices, while volatile, remain relatively muted. These conflicts are causing lasting implications for global trade patterns. Countries and companies are reassessing their exposure for critical resources to maritime choke points. They are placing greater value on supply chain resilience, looking to diversify through alternative suppliers, routes, storage capacity, and transportation infrastructure. These trends may have a net effect of creating longer long-haul routes As you can see on slide 3, our fleet has an average age of 8.7 years compared to an industry average of 13.7 years. Our tanker fleet with an average age of 5 years is particularly young relative to the broader tanker market. Overall Navier's fleet modernization program has created a fleet with almost 40% younger than the industry average and about 65% younger in comparison to the global tanker fleet preparing us for the future. We believe the use of our fleet provides a competitive advantage through, among other things, lower operating costs, better fuel efficiency, and higher chartering preference. Please turn to slide 4. Navios is a leading maritime transportation company, owning, operating, and chartering a modern fleet of 176 vessels across 3 segments and 15 asset classes. 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 a new building program, Our fleet in the water has a 4.8 billion in net vessel equity value. We continue to make headway in reducing our net LTV towards a target of 20-25%. At the quarter end, we had a net LTV of 27.9%, a balance sheet is strong with 625 million available liquidity and credit ratings of BA3 from Moody's and BB from S&P. Please turn to slide 5. Diversification is a core strength of Navios and our platform provides optionality across market. We complement this flexibility with a disciplined risk management culture, continuously monitoring and assessing our exposures. diligently evaluating and structuring transactions and maintaining robust insurance coverage, particularly important in a war-risk environment. Please turn to slide 6. Since the beginning of the year, we have acted to capitalize on a robust tanker market and reposition our VLCC fleet for both the current cycle and the years ahead. We initially sought Two 16-year-old VLCCs for an aggregate amount of $136.5 million. The sale prices were approximately 18% above the prior historical peak for versions of this age. We subsequently acquired seven new buildings VLCCs for an aggregate purchase price of $844 million. including the one vessel that remains subject to ongoing discussions. We have entered into period charters for these vessels for average period of 6.1 years at an average net daily rate of $45,224. These transactions allow us to rebuild our VLCC fleet with modern tonnage supported by long-term employment. The associated charter arrangements are expected to generate approximately 700 million of revenue while reducing a residual value exposure measured at the end of the initial charters to roughly 40% below the 20-year historical average. Across the entire tanker segment we have secured a total of 922 million of contracted revenue from 14 vessels with an average charter duration of approximately 5 years. Of this total, 893 million relates to 11 new building tankers. This strategy enhances cash flow visibility, modernizes the fleet, and positions the company to benefit from the current tank and market strength while retaining substantial upside for the next cycle. Turning to our dry bulk segment, there we are systematically rotating into larger, more fuel-efficient vessels while increasing the quality and visibility of our contracted cash flows. We sold two Panamax vessels with an average age of 18 years for aggregate proceeds of $22.8 million. We then reinvested in three new building Cape-sized vessels for an aggregate purchase price of $204 million. Two of these Cape-sized new buildings have been fixed on five-year charters providing a minimum of $86 million in contracted revenue. In addition to profit sharing contextually, across the dry bulk fleet, we have secured 125 million of minimum contracted revenue from four vessels with an average charter duration of approximately three years. In container ships, our focus is on harvesting the value of contracted backlog while preserving flexibility for future capital allocation. We sold two 4,730 TEU vessels with an average age of 19 years for an aggregate proceeds of 64.5 million dollars. The remaining fleet continues to provide meaningful cash flow visibility, with 194 million of contracted revenue secured across six vessels with an average remaining charter duration of approximately three years. Overall, we have been monetizing mature assets at attractive values while building and maintaining contracted earnings and optionalities as charter markets and asset values evolve. Please turn to slide 7, where we outline our recent developments. For the second quarter, revenue was $410.2 million. EBITDA was $275.2 million. Net income was $167.9 million. Earnings per common unit were $5.78. In terms of our balances, Net LTV was 27.9%, half of our total debt, or 1.3 billion dollars, has no LTV covenant. 43% of our total debt is fixed rate. Our debt has a sagacious maturity profile with no near term refinancing cliff. We have 1.9 billion of debt-free vessel values across 55 vessels representing potential incremental financing capacity. Available liquidity total 625 million dollars. Contracted revenue backlog was 4.4 billion dollars extending through 2037. For the second half of 2026, contracted revenue exceeded projected cash operating costs by $151 million. As of August 12, 2026, Navios has 6,250 open or index-linked days in 2026, preserving participation in a stronger spot market while maintaining a substantial contracted earnings base. Please turn to slide A. Navios Partners announced a new 200 million common unit repurchase authorization, double the size of our current program. We view this program as an important tool for creating value for our common unit holders, particularly when our units trade at a meaningful discount to underlying NAV. In allocating capital to a unique repurchase program, we consider the relative attractiveness of alternative uses of capital, including the availability of investments that can enhance long-term cash flow generation, the preservation of liquidity, maintaining prudent leverage, and safeguarding balance sheet strength. All of this must be considered in the context of an industry that suffers change quickly. Since the current program began in the second quarter of 2024, the company has repaired 1.9 million common units for $92.6 million, including 135,846 units for $9.8 million in the second quarter of 2026. During the last 12 months, we returned 46 million of capital to our unit holders, of which 6 million was cash distribution in addition to 40 million of unit repurchases. Overall, the program has created a $6.30 per unit of accretion. Common Units Outstanding declined by about 6% from 30.2 million before the program to 28.3 million as of August 20, 2026. Please now turn to slide 9. NAVIOS has been executing its strategy through a challenging environment. We are focused on building a platform of excellence. Over the past five years, we have grown contracted revenue by more than 30% to a record high of $4.4 billion. We have an EBITDA run rate of over $900 million and have expanded our fleet value, including our new building program, to $10.2 billion. Importantly, we have not sacrificed financial discipline in achieving these goals. In this process, we reduced our net loan-to-value by 38% to 27.9%. 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, position us to continue delivering value through any market condition. I now turn the presentation over to Mr. Stratos Desypris, Navios Partners Chief Operating Officer. Stratos?