UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16

OF THE SECURITIES EXCHANGE ACT OF 1934

 

DATED: September 12, 2024

Commission File No. 001-33811

 

 

NAVIOS MARITIME PARTNERS L.P.

 

 

 

7 Avenue de Grande Bretagne, Office 11B2

Monte Carlo, MC 98000 Monaco

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F ☒		Form 40-F ☐

 

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NAVIOS MARITIME PARTNERS L.P.

FORM 6-K

TABLE OF CONTENTS

 

		Page
Operating and Financial Review and Prospects		1
Exhibit List		21
INDEX		F-1

 

This report on Form 6-K is hereby incorporated by reference into the Navios Maritime Partners L.P. Registration Statement on Form F-3, File No. 333-271842.

Operating and Financial Review and Prospects

The following is a discussion of the financial condition and results of operations for the three and six month periods ended June 30, 2024 and 2023 of Navios Maritime Partners L.P. (referred to herein as “we”, “us”, “Company” or “Navios Partners”). All of the financial statements have been stated in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). You should read this section together with the consolidated financial statements and the accompanying notes included in Navios Partners’ 2023 annual report filed on Form 20-F on April 3, 2024 (the “Annual Report”) with the U.S. Securities and Exchange Commission (the “SEC”).

This report contains and will contain forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, TCE rates (as defined herein), and Navios Partners’ expected cash flow generation, future contracted revenues, future distributions and its ability to make distributions going forward, opportunities to reinvest cash accretively in a fleet renewal program or otherwise, potential capital gains, its ability to take advantage of dislocation in the market and Navios Partners’ growth strategy and measures to implement such strategy, including expected vessel acquisitions and entering into further time charters and Navios Partners’ ability to refinance its debt on attractive terms, or at all. Words such as “may,” “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Navios Partners at the time these statements were made. Although Navios Partners believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Partners. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks relating to: global and regional economic and political conditions including global economic activity, demand for seaborne transportation of the products we ship, the ability and willingness of charterers to fulfill their obligations to us and prevailing charter rates, the economic condition of the markets in which we operate, shipyards performing scrubber installations, construction of newbuilding vessels, drydocking and repairs, changing vessel crews and availability of financing, potential disruption of shipping routes due to accidents, wars, sanctions, diseases, pandemics, political events, piracy or acts by terrorists; uncertainty relating to global trade, including prices of seaborne commodities and continuing issues related to seaborne volume and ton miles, our continued ability to enter into long-term time charters, our ability to maximize the use of our vessels, expected demand in the dry and liquid cargo shipping sectors in general and the demand for our dry bulk, containerships and tanker vessels in particular, fluctuations in charter rates for dry bulk, containerships and tanker vessels, the aging of our fleet and resultant increases in operations costs, the loss of any customer or charter or vessel, the financial condition of our customers, changes in the availability and costs of funding due to conditions in the bank market, capital markets and other factors, fluctuation in interest rates and foreign exchange rates, increases in costs and expenses, including but not limited to: crew, insurance, provisions, port expenses, lube oil, bunkers, repairs, maintenance and general and administrative expenses, the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, as well as standard regulations imposed by our charterers applicable to our business, general domestic and international political conditions, competitive factors in the market in which Navios Partners operates; risks associated with operations outside the United States; and other factors listed from time to time in Navios Partners’ filings with the SEC, including its Form 20-F and Form 6-K.

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Navios Partners expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Partners’ expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Navios Partners makes no prediction or statement about the performance of its common units.

Recent Developments

In July 2024, Navios Partners took delivery of the Zim Falcon and the Zim Pelican, two 2024-built 5,300 TEU Containerships from an unrelated third party.

In July and August 2024, Navios Partners agreed to sell two 2009-built MR2 Product Tanker vessels of 50,542 dwt and 50,470 dwt, respectively, a 2005-built Post-Panamax vessel of 87,052 dwt and a 2006-built Kamsarmax vessel of 82,790 dwt, to unrelated third parties, for aggregate gross sale proceeds of $78.5 million. The sale of the 2005-built Post-Panamax vessel of 87,052 dwt was completed on August 26, 2024 and the sales of the remaining three vessels are expected to be completed during the second half of 2024.

In July and September 2024, Navios Partners acquired from unrelated third parties, the Navios Citrine, a previously chartered-in 2017-built Kamsarmax vessel of 81,626 dwt, the Navios Dolphin, a previously chartered-in 2017-built Kamsarmax vessel of 81,630 dwt and the Navios Amber, a previously chartered-in 2015-built Kamsarmax vessel of 80,994 dwt, for an aggregate purchase price of $88.0 million.

In August 2024, Navios Partners took delivery of the Nave Polaris, a 2024-built Aframax/LR2 vessel of 115,699 dwt and the Zim Seagull, a 2024-built 5,300 TEU Containership from unrelated third parties.

In August 2024, Navios Partners renewed its management agreements (the “Master Management Agreement”) and its administrative services agreement (the “Renewed Administrative Services Agreement,” together with the Master Management Agreement, the “Agreements”) with Navios Shipmanagement Inc. and its affiliates (the “Manager”) which are entities affiliated with the Navios Partners’ Chairwoman and Chief Executive Officer commencing January 1, 2025, for a term of ten years, renewing annually. The Conflicts Committee of the Board of Directors, consisting of independent directors, negotiated and approved the Agreements with the advice of Watson Farley & Williams LLP as legal advisor and KPMG Advisors Single Member S.A. (a member firm of the KPMG global organization of independent member firms) as financial advisor. The Renewed Administrative Services Agreement provides for reimbursement of allocable general and administrative costs. The Master Management Agreement provides for technical and commercial management and related specialized services based on fee structure, including: (i) a technical management fee of $950 per day per owned vessel; (ii) a commercial management fee of 1.25% on revenues; (iii) an S&P fee of 1% on purchase or sales price; and (iv) fees for other specialized services (e.g. supervision of newbuilding vessels). Fixed fees will be adjusted annually for United States Consumer Price Index. The Master Management Agreement also allows for fixed incentive awards if equity returns exceed certain thresholds, as identified in such agreement, upon the unanimous consent of the Board of Directors of Navios Partners. The Agreements provide for payment of a termination fee, which termination fee for the Master Management Agreement is equal to the net present value of the technical and commercial management fees charged for the most recent calendar year for the number of years remaining for the Master Management Agreement, using a 6% discount rate and such termination fee for the Renewed Administrative Services Agreement is equal to the costs charged for the most recent calendar year, each as set forth in the latest audited annual financial statements.

Overview

We are an international owner and operator of dry cargo and tanker vessels that was formed in August 2007 by Navios Holdings. We have been a public company since November 2007.

As of September 4, 2024, there were outstanding 29,937,815 common units and 622,296 general partnership units. Angeliki Frangou, our Chief Executive Officer and Chairwoman beneficially owns an approximately 16.8% common interest of the total outstanding common units including 4,672,314 common units held through four entities affiliated with her. An entity affiliated with Angeliki Frangou beneficially owns 622,296 general partnerships units, representing an approximately 2.0% ownership interest in Navios Partners based on all outstanding common units and general partnership units.

In July 2022, the Board of Directors of Navios Partners authorized a common unit repurchase program for up to $100.0 million of Navios Partners’ common units. Common unit repurchases will be made from time to time for cash in open market transactions at prevailing market prices or in privately negotiated transactions. The timing and amount of repurchases under the program will be determined by Navios Partners’ management based upon market conditions and financial and other considerations, including working capital and planned or anticipated growth opportunities. The program does not require any minimum repurchase or any specific number of common units and may be suspended or reinstated at any time in the Navios Partners’ discretion and without notice.

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The Board of Directors will review the program periodically. As of September 4, 2024, Navios Partners had repurchased 246,573 common units, for a total cost of approximately $12.2 million.

Fleet

Navios Partners’ fleet consists of 74 dry bulk vessels, 48 containerships and 56 tanker vessels, including 20 newbuilding tankers (14 Aframax/LR2 and six MR2 product tanker chartered-in vessels under bareboat contracts), that are expected to be delivered through the first half of 2028, and seven newbuilding containerships (three 5,300 TEU containerships, two 7,700 TEU containerships and two 7,900 TEU containerships), that are expected to be delivered through 2026. The fleet excludes two MR2 product tankers and one Kamsarmax that have been agreed to be sold.

We generate revenues by charging our customers for the use of our vessels to transport their dry cargo commodities, containers, crude oil and/or refined petroleum products. In general, the vessels in our fleet are chartered-out under time charters, which range in length from one to 12 years at inception. From time to time, we operate vessels in the spot market until the vessels have been chartered out under short, medium and long-term charters.

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The following table provides summary information about our fleet as of September 5, 2024:
Owned Drybulk Vessels		Type		Built		Capacity (DWT)					Charter-Out Rate(1)					Index(2)		Expiration Date(3)
Navios Vega		Transhipper		2009			57,573				$	25,800				No		Jan-29
Navios Christine B		Ultra-Handymax		2009			58,058					—				99.0% average BSI 58 10TC		Oct-24
Navios Celestial		Ultra-Handymax		2009			58,063					—				100% average BSI 58 10TC		Apr-25
Navios La Paix		Ultra-Handymax		2014			61,485					—				111.0% average BSI 58 10TC		Apr-26
N Amalthia		Panamax		2006			75,318					—				90.0% average BPI 82		Apr-25
Navios Hope		Panamax		2005			75,397					—				100.0% average BPI 82 less $1,283		Mar-25
Navios Sagittarius (5)		Panamax		2006			75,756					—				100.0% average BPI 82 less $1,286		Nov-24
Navios Taurus		Panamax		2005			76,596				$	9,975				No		Sep-24
											$	10,450				No		Oct-24
Navios Galileo		Panamax		2006			76,596				$	13,775				No		Dec-24
Navios Sun		Panamax		2005			76,619					—				100.0% average BPI 82 less $1,286		Dec-24
Navios Asteriks (23)		Panamax		2005			76,801					—				100.0% average BPI 82 less $1,286		Oct-24
Navios Helios		Panamax		2005			77,075					—				100.0% average BPI 82 less $1,283		Jun-25
Navios Victory		Panamax		2014			77,095					—				96.0% average BPI 82		Dec-25
Unity N		Panamax		2011			79,642					—				89.0% average BPI 82		Dec-25
Odysseus N		Panamax		2011			79,642				$	14,250				No		Sep-24
												—				90.0% average BPI 82		Jul-25
Rainbow N		Panamax		2011			79,642				$	13,775				No		Nov-24
Navios Avior		Kamsarmax		2012			81,355					—				100.0% average BPI 82		Jan-25
Navios Centaurus		Kamsarmax		2012			81,472					—				101.0% average BPI 82		Nov-24
Navios Amber		Kamsarmax		2015			80,994				$	17,290				No		Apr-26
Navios Horizon I (23)		Kamsarmax		2019			81,692				$	18,786				No		Sep-24
												—				110.0% average BPI 82		Apr-25
Navios Galaxy II (6)		Kamsarmax		2020			81,789				$	18,421				No		Sep-24
												—				112.5% average BPI 82		Dec-24
Navios Uranus (6)		Kamsarmax		2019			81,821				$	18,806				No		Sep-24
												—				112.0% average BPI 82		Apr-26
Navios Felicity I (6)		Kamsarmax		2020			81,962				$	18,699				No		Sep-24
											$	18,425				No		Dec-24
												—				114.0% average BPI 82		Jan-25
Navios Primavera (5)		Kamsarmax		2022			82,003					—				115.0% average BPI 82		Nov-24
Navios Meridian (5)		Kamsarmax		2023			82,010				$	17,650				No		Sep-24
												—				115.5% average BPI 82		Nov-24
Navios Herakles I (6)		Kamsarmax		2019			82,036				$	19,016				No		Sep-24
												—				113.5% average BPI 82		Nov-24
Navios Magellan II (6)		Kamsarmax		2020			82,037				$	17,934				No		Sep-24
												—				112.0% average BPI 82		Nov-24
Navios Sky (5)		Kamsarmax		2015			82,056					—				105.0 % average BPI 82		Sep-24
Navios Harmony (15)		Kamsarmax		2006			82,790				$	15,400				No		Oct-24
Navios Alegria (23)		Kamsarmax		2016			84,852				$	14,197				No		Oct-24
Navios Sphera		Kamsarmax		2016			84,872				$	18,831				No		Sep-24
												—				110.0% of average BPI 82		Oct-25
Navios Coral		Kamsarmax		2016			84,904				$	19,096				No		Sep-24
												—				110.0% average BPI 82		Nov-24
Navios Citrine		Kamsarmax		2017			81,626					—				110.0% average BPI 82		Nov-24
Navios Dolphin		Kamsarmax		2017			81,630				$	14,013				No		Jan-25
											$	15,200				No		Dec-25

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Copernicus N		Post-Panamax		2010			93,062				$	12,208				No		Sep-24
Navios Stellar (5)		Capesize		2009			169,001					—				97.0% average BCI 5TC		Jun-26
Navios Aurora II		Capesize		2009			169,031					—				99.0% average BCI 5TC		Jan-25
Navios Antares (5)		Capesize		2010			169,059					—				100.0% average BCI 5TC		Feb-25
Navios Symphony		Capesize		2010			178,132					—				102.75% average BCI 5TC		Apr-26
Navios Ace (5)		Capesize		2011			179,016				$	25,472				No		Sep-24
												—				107.25% average BCI 5TC		Feb-25
Navios Melodia		Capesize		2010			179,132					—				104.0% average BCI 5TC		Apr-26
Navios Luz		Capesize		2010			179,144					—				105.5% average BCI 5TC		Oct-25
Navios Altamira		Capesize		2011			179,165				$	25,514				No		Sep-24
												—				107.0% average BCI 5TC		Mar-25
Navios Azimuth (23)		Capesize		2011			179,169				$	24,115				No		Sep-24
												—				105.0% average BCI 5TC		Feb-25
Navios Etoile		Capesize		2010			179,234				$	23,940				No		Sep-24
												—				105.0% average BCI 5TC		Feb-25
Navios Buena Ventura		Capesize		2010			179,259				$	23,342				No		Dec-24
												—				105.0% average BCI 5TC		Feb-25
Navios Bonheur		Capesize		2010			179,259					—				104.0% average BCI 5TC		Jan-25
Navios Fulvia		Capesize		2010			179,263				$	26,184				No		Sep-24
												—				105.0% average BCI 5TC		Feb-25
Navios Aster		Capesize		2010			179,314				$	23,495				No		Dec-24
Navios Ray (5)		Capesize		2012			179,515				$	24,040				No		Sep-24
											$	27,731				No		Dec-24
												—				105.0% average BCI 5TC		Jan-25
Navios Happiness		Capesize		2009			180,022				$	22,626				No		Dec-24
												—				109.0% average BCI 5TC		Apr-25
Navios Bonavis (5)		Capesize		2009			180,022					—				103.0% average BCI 5TC		Apr-26
Navios Phoenix (5)		Capesize		2009			180,242				$	22,765				No		Dec-24
												—				100.0% average BCI 5TC + $1,905 per day		Aug-26
Navios Fantastiks (5)		Capesize		2005			180,265				$	17,575				No		Jun-26
Navios Sol (5)		Capesize		2009			180,274					—				108.0% average BCI 5TC		Jun-26
Navios Canary (23)		Capesize		2015			180,528				$	29,213				No		Sep-24
												—				125.0% average BCI 5TC		Jan-25
Navios Lumen (5)		Capesize		2009			180,661				$	26,031				No		Sep-24
											$	28,397				No		Dec-24
												—				106.0% average BCI 5TC		Jul-26
Navios Pollux (5)		Capesize		2009			180,727					—				102.5% average BCI 5TC		Apr-25
Navios Felix (23)		Capesize		2016			181,221				$	28,500		(20)		No		Jan-27
Navios Corali (23)		Capesize		2015			181,249				$	21,779				No		Dec-24
Navios Mars		Capesize		2016			181,259				$	30,278				No		Dec-24
												—				128.0% average BCI 5TC		Feb-25
Navios Gem		Capesize		2014			181,336				$	31,634				No		Dec-24
												—				125.0% average BCI 5TC		Apr-26
Navios Joy		Capesize		2013			181,389					—				Freight Voyages		Aug-25
Navios Koyo		Capesize		2011			181,415				$	28,500				No		Dec-24
												—				118.0% average BCI 5TC		Jan-26
Navios Azalea (6)		Capesize		2022			182,064				$	19,950				No		Nov-27
Navios Armonia (6)		Capesize		2022			182,079				$	20,750				No		Sep-27
Navios Altair (6)		Capesize		2023			182,115				$	19,600				No		Nov-27
Navios Sakura (6)		Capesize		2023			182,169				$	19,550				No		Mar-28
Navios Amethyst (6)		Capesize		2023			182,212				$	19,550				No		Feb-28
Navios Astra (14)		Capesize		2022			182,393				$	21,000				No		Aug-27

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Owned Containerships		Capacity (TEU)					Built		Charter-Out Rate(1)				Index(2)		Expiration Date(3)
Spectrum N			2,546				2009		$	36,538			No		Mar-25
Protostar N			2,741				2007		$	11,700			No		Aug-25
Fleur N			2,782				2012		$	19,009			No		May-26
Ete N			2,782				2012		$	19,009			No		May-26
Navios Summer (5)			3,450				2006		$	30,320			No		May-25
									$	20,845			No		May-26
									$	34,110			No		Jul-26
Navios Verano (5)			3,450				2006		$	18,818			No		Apr-26
Matson Lanai (5)			4,250				2007		$	55,794			No		Jul-25
Navios Verde (5)			4,250				2007		$	21,725			No		Apr-25
Navios Amarillo (5)			4,250				2007		$	63,956			No		Jan-25
									$	28,425			No		Jan-26
									$	9,475			No		Jan-28
Navios Vermilion (5)			4,250				2007		$	23,972			No		Nov-24
									$	28,763			No		Mar-27
Navios Azure			4,250				2007		$	20,748			No		Apr-26
Navios Indigo (5)			4,250				2007		$	34,125			No		Apr-25
									$	24,375			No		Apr-26
									$	41,438			No		Aug-26
Navios Domino (5)			4,250				2008		$	23,453			No		Sep-25
Matson Oahu (5)			4,250				2008		$	19,701			No		Oct-24
Navios Tempo			4,250				2009		$	44,438			No		Sep-25
Navios Destiny (5)			4,250				2009		$	23,972			No		Oct-24
									$	28,763			No		Feb-27
Navios Devotion (5)			4,250				2009		$	34,125			No		Mar-25
									$	24,375			No		Mar-26
									$	41,438			No		Jul-26
Navios Lapis			4,250				2009		$	25,000			No		Jun-26
Navios Dorado			4,250				2010		$	21,676			No		Sep-24
									$	24,441			No		May-26
Carmel I			4,360				2010		$	32,689			No		Apr-25
									$	23,214			No		Apr-26
									$	39,795			No		Jun-26
Zim Baltimore			4,360				2010		$	34,125			No		Jan-25
									$	24,375			No		Jan-26
									$	41,438			No		May-26
Navios Bahamas			4,360				2010		$	48,000			No		Apr-25
									$	22,500			No		Jun-27
Navios Miami			4,563				2009		$	23,972			No		Oct-24
									$	28,763			No		Feb-27
Navios Magnolia			4,730				2008		$	23,972			No		Oct-24
									$	28,763			No		Feb-26
Navios Jasmine			4,730				2008		$	48,000			No		Mar-25
									$	22,500			No		May-27
Navios Chrysalis			4,730				2008		$	23,453			No		Jun-25
Navios Nerine			4,730				2008		$	23,972			No		Sep-24
									$	28,763			No		Aug-26
Sparrow			5,300				2023		$	42,900			No		Nov-24
									$	39,000			No		Nov-25
									$	37,050			No		Nov-26
									$	35,100			No		Nov-27
									$	31,200			No		Nov-28
									$	37,050			No		Jan-29
Zim Eagle			5,300				2024		$	42,900			No		Jan-25
									$	39,000			No		Jan-26
									$	37,050			No		Jan-27
									$	35,100			No		Jan-28
									$	31,200			No		Jan-29

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									$	37,050			No		Mar-29
Zim Condor			5,300				2024		$	42,900			No		Apr-25
									$	39,000			No		Apr-26
									$	37,050			No		Apr-27
									$	35,100			No		Apr-28
									$	31,200			No		Apr-29
									$	37,050			No		Jun-29
Zim Hawk			5,300				2024		$	42,900			No		Jun-25
									$	39,000			No		Jun-26
									$	37,050			No		Jun-27
									$	35,100			No		Jun-28
									$	31,200			No		Jun-29
									$	37,050			No		Aug-29
Zim Falcon			5,300				2024		$	42,900			No		Jul-25
									$	39,000			No		Jul-26
									$	37,050			No		Jul-27
									$	35,100			No		Jul-28
									$	31,200			No		Jul-29
									$	37,050			No		Sep-29
Zim Pelican			5,300				2024		$	42,900			No		Jul-25
									$	39,000			No		Jul-26
									$	37,050			No		Jul-27
									$	35,100			No		Jul-28
									$	31,200			No		Jul-29
									$	37,050			No		Sep-29
Zim Seagull (23)			5,300				2024		$	42,900			No		Aug-25
									$	39,000			No		Aug-26
									$	37,050			No		Aug-27
									$	35,100			No		Aug-28
									$	31,200			No		Aug-29
									$	37,050			No		Oct-29
Hyundai Shanghai			6,800				2006		$	21,083			No		Aug-29
Hyundai Tokyo			6,800				2006		$	21,083			No		Dec-28
Hyundai Hongkong			6,800				2006		$	21,083			No		Dec-28
Hyundai Singapore			6,800				2006		$	21,083			No		Dec-28
Hyundai Busan			6,800				2006		$	21,083			No		Aug-29
Navios Unison (5)			10,000				2010		$	26,276			No		Jun-26
Navios Constellation (5)			10,000				2011		$	26,276			No		Jun-26

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Owned Tanker Vessels		Type		Built		Capacity (DWT)					Charter-Out Rate(1)					Profit Sharing Arrangements		Expiration Date(3)
Hector N		MR1 Product Tanker		2008			38,402				$	20,738				No		Dec-25
Nave Aquila (5)		MR2 Product Tanker		2012			49,991				$	27,156				No		Aug-26
Nave Atria (5)		MR2 Product Tanker		2012			49,992				$	14,887				No		Mar-25
Nave Capella		MR2 Product Tanker		2013			49,995				$	22,138				No		Jan-25
Nave Alderamin		MR2 Product Tanker		2013			49,998				$	22,138				No		Nov-24
Nave Pyxis		MR2 Product Tanker		2014			49,998				$	25,891				No		Jan-25
Nave Bellatrix (5)		MR2 Product Tanker		2013			49,999				$	19,750				No		Aug-25
Nave Orion (5)		MR2 Product Tanker		2013			49,999				$	22,138				No		Dec-24
Nave Titan		MR2 Product Tanker		2013			49,999				$	25,891				No		Feb-25
Nave Luminosity		MR2 Product Tanker		2014			49,999				$	23,004		(10)		No		Dec-25
Nave Jupiter		MR2 Product Tanker		2014			49,999				$	21,231				No		Oct-28
Nave Velocity		MR2 Product Tanker		2015			49,999				$	15,553		(11)		No		Oct-24
Nave Sextans		MR2 Product Tanker		2015			49,999				$	23,196		(10)		No		May-26
Nave Equinox		MR2 Product Tanker		2007			50,922				$	20,392		(8)		No		Dec-24
Nave Pulsar		MR2 Product Tanker		2007			50,922				$	21,231		(8)		No		Sep-25
Nave Orbit (15)		MR2 Product Tanker		2009			50,470				$	15,306				No		Oct-24
Nave Equator (15)		MR2 Product Tanker		2009			50,542				Freight Voyage					No		Sep-24
Bougainville		MR2 Product Tanker		2013			50,626				$	21,800		(7)		No		Oct-26
Nave Cetus		LR1 Product Tanker		2012			74,581				$	32,094				No		Jul-25
Nave Ariadne		LR1 Product Tanker		2007			74,671				Floating Rate			(12)		No		Dec-24
Nave Cielo		LR1 Product Tanker		2007			74,671				$	28,144				No		Sep-25
Nave Rigel		LR1 Product Tanker		2013			74,673				$	27,008				No		Mar-29
Nave Atropos		LR1 Product Tanker		2013			74,695				$	21,971				No		Oct-24
											$	27,650				No		Apr-25
Nave Cassiopeia		LR1 Product Tanker		2012			74,711				$	33,150		(13)		No		Jan-25
Nave Andromeda		LR1 Product Tanker		2011			75,000				$	28,394				No		Mar-25
Nave Estella		LR1 Product Tanker		2012			75,000				$	28,394				No		Dec-24
Nave Cosmos (23)		Aframax / LR2		2024			115,651				$	26,366		(21)		No		May-29
Nave Polaris (5)		Aframax / LR2		2024			115,699				$	26,366		(21)		No		Aug-29
Nave Constellation		VLCC		2010			296,988				Floating Rate			(12)		No		Dec-24
Nave Universe		VLCC		2011			297,066				Scheduled Repairs					—		Sep-24
											$	45,672				No		May-26
Nave Galactic		VLCC		2009			297,168				Scheduled Repairs					—		—
Nave Quasar		VLCC		2010			297,376				Floating Rate			(12)		No		Dec-24
Nave Buena Suerte		VLCC		2011			297,491				$	47,906				Yes (16)		Jun-25
Nave Synergy		VLCC		2010			299,973				Scheduled Repairs					—		—

 

Bareboat-in Vessels		Type		Built		Capacity (DWT)					Charter-Out Rate(1)					Index(2)				Expiration Date(3)
Navios Star		Kamsarmax		2021			81,994					—				112.0% average BPI 82				Apr-25
Navios Amitie		Kamsarmax		2021			82,002				$	19,443				No				Sep-24
											$	18,688				No				Dec-24
												—				112% of average BPI 82				Apr-25
Navios Libra		Kamsarmax		2019			82,011				Scheduled Repairs						—				—
Nave Electron		VLCC		2021			313,239				$	47,906				Yes (16)				Jan-26
Nave Celeste (24)		VLCC		2022			313,418				Floating rate					Yes (4)				Jul-29
Baghdad (24)		VLCC		2020			313,433				$	27,816		(17)		No				Sep-30
Erbil (24)		VLCC		2021			313,486				$	27,816		(17)		No				Feb-31

 

Chartered-in Vessels

Type

Built

Capacity (DWT)

Charter-Out Rate(1)

Index(2)

Expiration Date(3)

Navios Venus (19)

Ultra- Handymax

2015

61,339

—

111.0% average BSI 58 10TC

Nov-24

Navios Gemini

Kamsarmax

2018

81,704

$

15,881

No

Nov-24

 

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Containerships to be Delivered		Expected Delivery		Capacity (TEU)					Charter- Out Rate(1)					Index(2)		Expiration Date(3)
TBN I (23)		H2 2024			5,300				$	42,900				No		Nov-25
									$	39,000				No		Nov-26
									$	37,050				No		Nov-27
									$	35,100				No		Nov-28
									$	31,200				No		Nov-29
									$	37,050				No		Jan-30
TBN II (5)		H2 2024			5,300				$	37,500				No		Mar-30
TBN III (5)		H2 2024			5,300				$	37,500				No		Apr-30
TBN VIII		H2 2024			7,700				$	57,213				No		Dec-27
									$	52,238				No		Dec-30
									$	37,313				No		Dec-32
									$	27,363				No		Dec-34
									$	24,875		(22)		No		Dec-36
TBN IX		H1 2025			7,700				$	57,213				No		Jan-28
									$	52,238				No		Jan-31
									$	37,313				No		Jan-33
									$	27,363				No		Jan-35
									$	24,875		(22)		No		Jan-37
TBN XXII		H2 2026			7,900				$	43,000		(25)		No		Jul-30
TBN XXIII		H2 2026			7,900				$	43,000		(25)		No		Oct-30

 

Tanker Vessels to be Delivered		Type		Expected Delivery		Capacity (DWT)					Charter-Out Rate(1)					Expiration Date(3)
TBN IV (23)		Aframax / LR2		H2 2024			115,000				$	25,576		(21)		Oct-29
TBN V (5)		Aframax / LR2		H2 2024			115,000				$	25,576		(21)		Dec-29
TBN VI (5)		Aframax / LR2		H1 2025			115,000				$	27,798		(21)		Mar-30
TBN VII		Aframax / LR2		H1 2025			115,000				$	27,798		(21)		Jun-30
TBN XVI		Aframax / LR2		H1 2026			115,000				$	27,788		(9)		Mar-31
TBN XVII		Aframax / LR2		H1 2026			115,000				$	27,788		(9)		May-31
TBN XVIII		Aframax / LR2		H1 2026			115,000				$	27,776		(18)		Mar-31
TBN XIX		Aframax / LR2		H2 2026			115,000				$	27,776		(18)		Jun-31
TBN XX		Aframax / LR2		H1 2027			115,000				$	28,275		(26)		May-32
TBN XXI		Aframax / LR2		H2 2027			115,000				$	28,275		(26)		Oct-32
TBN XXIV		Aframax / LR2		H2 2027			115,000				$	27,776		(18)		May-32
TBN XXV		Aframax / LR2		H2 2027			115,000				$	27,776		(18)		Sep-32
TBN XXVI		Aframax / LR2		H1 2028			115,000				$	28,144		(27)		Mar-33
TBN XXVII		Aframax / LR2		H1 2028			115,000				$	28,144		(27)		Apr-33
TBN X (6)		MR2 Product Tanker		H2 2025			52,000				$	22,959				Nov-30
TBN XI (6)		MR2 Product Tanker		H1 2026			52,000				$	22,959				May-31
TBN XII (6)		MR2 Product Tanker		H2 2026			52,000					—				—
TBN XIII (6)		MR2 Product Tanker		H2 2026			52,000					—				—
TBN XIV (6)		MR2 Product Tanker		H1 2027			52,000					—				—
TBN XV (6)		MR2 Product Tanker		H1 2027			52,000					—				—

 

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Our Charters

We provide seaborne shipping services under short, medium, and long-term time charters, bareboat charters and voyage charters with customers that we believe are creditworthy. For each of the six month periods ended June 30, 2024 and 2023, no customer accounted for 10.0% or more of our total revenues.

Our revenues are driven by the number of vessels in the fleet, the number of days during which the vessels operate and our charter hire rates, which, in turn, are affected by a number of factors, including:

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Time charters are available for varying periods, ranging from a single trip (spot charter) to long-term which may be many years. In general, a long-term time charter assures a consistent stream of revenue to the vessel owner. Operating the vessel in the spot market affords the owner greater spot market opportunity, which may result in high rates when vessels are in high demand or low rates when vessel availability exceeds demand. We intend to operate our vessels in the long-term charter market. Vessel charter rates are affected by world economics, international events, weather conditions, strikes, governmental policies, supply and demand and many other factors that might be beyond our control. Please read the section entitled “Risk Factors” in our Annual Report for a discussion of certain risks inherent in our business.

We could lose a customer or the benefits of a charter if:

Under some of our time charters, either party may terminate the charter contract in the event of war in specified countries or in locations that would significantly disrupt the free trade of the vessel. Some of the time charters covering our vessels require us to return to the charterer, upon the loss of the vessel, all advances paid by the charterer but not earned by us.

Trends and Factors Affecting Our Future Results of Operations

We believe the principal factors that will affect our future results of operations are the economic, regulatory, political and governmental conditions that affect the shipping industry generally and that affect conditions in countries and markets in which our vessels engage in business. Please read “Risk Factors” in our Annual Report for a discussion of certain risks inherent in our business.

Results of Operations

Overview

The following table reflects certain key indicators of Navios Partners’ fleet performance for the three and six month periods ended June 30, 2024 and 2023.

 

		Three Month Period Ended June 30, 2024				Three Month Period Ended June 30, 2023				Six Month Period Ended June 30, 2024				Six Month Period Ended June 30, 2023
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
Available Days(1)			13,498				13,572				27,038				27,480
Operating Days(2)			13,306				13,474				26,751				27,223
Fleet Utilization(3)			98.6	%			99.3	%			98.9	%			99.1	%
Time Charter Equivalent rate (per day)(4)		$	23,384			$	23,900			$	22,448			$	22,337
Vessels operating at end of periods			151				154				151				154

 

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FINANCIAL HIGHLIGHTS

The following table presents consolidated revenue and expense information for the three and six month periods ended June 30, 2024 and 2023.

 

		Three Month Period Ended June 30, 2024				Three Month Period Ended June 30, 2023				Six Month Period Ended June 30, 2024				Six Month Period Ended June 30, 2023
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
		(In thousands of U.S. dollars)
Time charter and voyage revenues		$	342,155			$	346,938			$	660,710			$	656,460
Time charter and voyage expenses			(40,044	)			(41,956	)			(81,955	)			(81,719	)
Direct vessel expenses			(18,916	)			(17,764	)			(36,469	)			(32,204	)
Vessel operating expenses (entirely through related parties transactions)			(85,271	)			(82,550	)			(170,193	)			(165,766	)
General and administrative expenses			(20,584	)			(20,536	)			(41,328	)			(40,035	)
Depreciation and amortization of intangible assets			(56,314	)			(54,037	)			(111,884	)			(108,255	)
Amortization of unfavorable lease terms			3,171				5,322				6,307				12,910
Gain on sale of vessels, net			7,256				10,151				9,133				43,601
Interest expense and finance cost, net			(30,087	)			(33,330	)			(59,496	)			(68,854	)
Interest income			3,596				2,483				6,992				4,100
Other expense, net			(3,493	)			(2,413	)			(6,987	)			(8,765	)
Net income		$	101,469			$	112,308			$	174,830			$	211,473
EBITDA(1)		$	197,008			$	201,601			$	363,163			$	390,437
Adjusted EBITDA(1)		$	189,752			$	191,450			$	354,030			$	346,836
Operating Surplus (1)		$	91,171			$	98,620			$	157,785			$	164,368

 

Period over Period Comparisons

For the Three Month Period ended June 30, 2024 compared to the Three Month Period ended June 30, 2023

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Time charter and voyage revenues: Time charter and voyage revenues of Navios Partners for the three month period ended June 30, 2024 decreased by $4.7 million, or 1.4%, to $342.2 million, as compared to $346.9 million for the same period in 2023. The decrease in revenue was mainly attributable to the decrease in the available days of our fleet and the decrease in the TCE rate. For the three month periods ended June 30, 2024 and 2023, time charter and voyage revenues were positively affected by $2.4 million and negatively affected by $7.5 million, respectively, relating to the straight-line effect of the containership and tanker charters with de-escalating rates. For the three month period ended June 30, 2024, the TCE rate decreased by 2.2% to $23,384 per day, as compared to $23,900 per day for the same period in 2023. The available days of the fleet decreased by 0.5% to 13,498 days for the three month period ended June 30, 2024, as compared to 13,572 days for the same period in 2023 mainly due to the sale of vessels, partially mitigated by the deliveries of newbuilding and secondhand vessels.

Time charter and voyage expenses: Time charter and voyage expenses for the three month period ended June 30, 2024 decreased by $2.0 million to $40.0 million, as compared to $42.0 million for the same period in 2023. The decrease was mainly attributable to a: (i) $6.5 million decrease in bareboat and charter-in hire expense of the dry bulk fleet; (ii) $1.1 million decrease in bunkers expenses; and (iii) $0.2 million decrease in brokers’ commissions. The decrease was partially mitigated by a: (i) $5.5 million increase in other voyage expenses; and (ii) $0.3 million increase in port expenses.

Direct vessel expenses: Direct vessel expenses for the three month period ended June 30, 2024, increased by $1.1 million to $18.9 million, as compared to $17.8 million for the same period in 2023. The increase of $1.1 million was mainly attributable to the amortization of the deferred drydock and special survey costs due to the increase in the number of vessels that underwent drydocking or special survey.

Vessel operating expenses: Vessel operating expenses for the three month period ended June 30, 2024, increased by $2.7 million to $85.3 million, as compared to $82.6 million for the same period in 2023. The increase was mainly due to the expansion of our fleet and the adjustment of the fixed daily fee in accordance with the management agreements (the “Management Agreements”), partially mitigated by the sale of vessels.

General and administrative expenses: General and administrative expenses increased by $0.1 million to $20.6 million for the three month period ended June 30, 2024, as compared to $20.5 million for the same period in 2023.

Depreciation and amortization of intangible assets: Depreciation and amortization of intangible assets amounted to $56.3 million for the three month period ended June 30, 2024, as compared to $54.0 million for the same period in 2023. The increase of $2.3 million was mainly attributable to a: (i) $2.9 million increase in depreciation expense due to the delivery of nine vessels during the last nine months of 2023 and the first half of 2024; and (ii) $1.3 million increase in depreciation expense mainly due to vessel improvements. The above increase was partially mitigated by a: (i) $1.6 million decrease in depreciation expense due to the sale of 11 vessels since the second quarter of 2023; and (ii) $0.3 million decrease in amortization of favorable lease terms. Depreciation of vessels is calculated using an estimated useful life of 25 years for dry bulk and tanker vessels and 30 years for containerships, respectively, from the date the vessel was originally delivered from the shipyard.

Amortization of unfavorable lease terms: Amortization of unfavorable lease terms amounted to $3.2 million and $5.3 million for the three month periods ended June 30, 2024 and 2023, respectively, related to the amortization of the fair value of the time charters with unfavorable lease terms as determined at the acquisition date of Navios Maritime Containers L.P. (“Navios Containers”).

Gain on sale of vessels, net: Gain on sale of vessels, net amounted to $7.3 million for the three month period ended June 30, 2024, relating to a $14.9 million gain on sale of three of our vessels, partially mitigated by a $7.6 million impairment loss of two of our vessels. Gain on sale of vessels, net amounted to $10.2 million for the three month period ended June 30, 2023, relating to the sale of four of our vessels.

Interest expense and finance cost, net: Interest expense and finance cost, net for the three month period ended June 30, 2024 decreased by $3.2 million to $30.1 million, as compared to $33.3 million for the same period in 2023. The decrease was mainly due to the increase in interest expense capitalized related to deposits for vessel acquisitions, the decrease in interest expense incurred on credit facilities, financial liabilities and finance lease liabilities. The decrease in weighted average interest rate for the three month period ended June 30, 2024 to 7.1% from 7.4% for the same period in 2023, was partially mitigated by the increase in Navios Partner’s weighted average loan balance to $1,930.2 million for the three month period ended June 30, 2024, as compared to the $1,899.3 million for the same period in 2023.

Interest income: Interest income amounted to $3.6 million for the three month period ended June 30, 2024, as compared to $2.5 million for the same period in 2023, mainly due to the increase of time deposits.

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Other expense, net: Other expense, net for the three month period ended June 30, 2024 increased by $1.1 million to $3.5 million, as compared to $2.4 million for the same period in 2023, mainly due to the increase in expenses related to other miscellaneous expenses, net, claims and foreign exchange differences.

Net income: Net income for the three month period ended June 30, 2024 amounted to $101.5 million as compared to $112.3 million for the same period in 2023. The decrease in net income of $10.8 million was due to the factors discussed above.

For the Six Month Period ended June 30, 2024 compared to the Six Month Period ended June 30, 2023

Time charter and voyage revenues: Time charter and voyage revenues of Navios Partners for the six month period ended June 30, 2024 increased by $4.2 million, or 0.6%, to $660.7 million, as compared to $656.5 million for the same period in 2023. The increase in revenue was mainly attributable to the increase in the TCE rate and the increase in revenue from freight voyages. For the six month periods ended June 30, 2024 and 2023, time charter and voyage revenues were positively affected by $2.5 million and negatively affected by $20.5 million, respectively, relating to the straight-line effect of the containership and tanker charters with de-escalating rates. For the six month period ended June 30, 2024, the TCE rate increased by 0.5% to $22,448 per day, as compared to $22,337 per day for the same period in 2023. The available days of the fleet decreased by 1.6% to 27,038 days for the six month period ended June 30, 2024, as compared to 27,480 days for the same period in 2023 mainly due to the sale of vessels, partially mitigated by the deliveries of newbuilding and secondhand vessels.

Time charter and voyage expenses: Time charter and voyage expenses for the six month period ended June 30, 2024 increased by $0.3 million to $82.0 million, as compared to $81.7 million for the same period in 2023. The increase was mainly attributable to a: (i) $9.1 million increase in other voyage expenses; (ii) $2.6 million increase in bunkers expenses arising from the increased days of freight voyages in the first half of 2024; and (iii) $0.9 million increase in port expenses. The increase was partially mitigated by: (i) an $11.8 million decrease in bareboat and charter-in hire expense of the dry bulk fleet; and (ii) a $0.5 million decrease in brokers’ commissions.

Direct vessel expenses: Direct vessel expenses for the six month period ended June 30, 2024, increased by $4.3 million to $36.5 million, as compared to $32.2 million for the same period in 2023. The increase of $4.3 million was mainly attributable to the amortization of the deferred drydock and special survey costs due to the increase in the number of vessels that underwent drydocking or special survey.

Vessel operating expenses: Vessel operating expenses for the six month period ended June 30, 2024, increased by $4.4 million to $170.2 million, as compared to $165.8 million for the same period in 2023. The increase was mainly due to the expansion of our fleet and the adjustment of the fixed daily fee in accordance with the Management Agreements, partially mitigated by the sale of vessels.

General and administrative expenses: General and administrative expenses increased by $1.3 million to $41.3 million for the six month period ended June 30, 2024, as compared to $40.0 million for the same period in 2023. The increase was mainly due to a $1.6 million increase in administrative expenses paid to the Manager as per the administrative services agreement (the “Administrative Services Agreement”); partially mitigated by a $0.3 million decrease in legal and professional fees, as well as audit fees and other administrative expenses.

Depreciation and amortization of intangible assets: Depreciation and amortization of intangible assets amounted to $111.9 million for the six month period ended June 30, 2024, as compared to $108.3 million for the same period in 2023. The increase of $3.6 million was mainly attributable to a: (i) $5.5 million increase in depreciation expense due to the delivery of 12 vessels in 2023 and during the first half of 2024; and (ii) $2.2 million increase in depreciation expense mainly due to vessel improvements. The above increase was partially mitigated by a: (i) $3.6 million decrease in depreciation expense due to the sale of 19 vessels in 2023 and during the first half of 2024; and (ii) $0.5 million decrease in amortization of favorable lease terms. Depreciation of vessels is calculated using an estimated useful life of 25 years for dry bulk and tanker vessels and 30 years for containerships, respectively, from the date the vessel was originally delivered from the shipyard.

Amortization of unfavorable lease terms: Amortization of unfavorable lease terms amounted to $6.3 million and $12.9 million for the six month periods ended June 30, 2024 and 2023, respectively, related to the amortization of the fair value of the time charters with unfavorable lease terms as determined at the acquisition date of Navios Containers and at the date of obtaining control of Navios Maritime Acquisition Corporation.

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Gain on sale of vessels, net: Gain on sale of vessels, net amounted to $9.1 million for the six month period ended June 30, 2024, relating to a $16.7 million gain on sale of four of our vessels, partially mitigated by a $7.6 million impairment loss of two of our vessels. Gain on sale of vessels, net amounted to $43.6 million for the six month period ended June 30, 2023, relating to a gain on sale of 12 of our vessels.

Interest expense and finance cost, net: Interest expense and finance cost, net for the six month period ended June 30, 2024 decreased by $9.4 million to $59.5 million, as compared to $68.9 million for the same period in 2023. The decrease was mainly due to the increase in interest expense capitalized related to deposits for vessel acquisitions, the decrease in the discount effect of long-term assets and the decrease in amortization of finance charges and other finance costs. The decrease in weighted average interest rate for the six month period ended June 30, 2024 to 7.1% from 7.2% for the six month period ended June 30, 2023, was partially mitigated by the increase in Navios Partner’s weighted average loan balance to $1,909.3 million for the six month period ended June 30, 2024, as compared to the $1,901.9 million for the six month period ended June 30, 2023.

Interest income: Interest income amounted to $7.0 million for the six month period ended June 30, 2024, as compared to $4.1 million for the same period in 2023, mainly due to the increase of time deposits.

Other expense, net: Other expense, net for the six month period ended June 30, 2024 decreased by $1.8 million to $7.0 million, as compared to $8.8 million for the same period in 2023, mainly due to the decrease in expenses related to claims and foreign exchange differences, partially mitigated by the increase in other miscellaneous expenses, net.

Net income: Net income for the six month period ended June 30, 2024 amounted to $174.8 million as compared to $211.5 million net income for the same period in 2023. The decrease in net income of $36.7 million was due to the factors discussed above.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have, a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Liquidity and Capital Resources

We anticipate that our primary sources of funds for our short-term liquidity needs will consist of cash flows from operations, our equity offerings, proceeds from asset sales, long-term bank borrowings and other debt raisings. In addition to distributions on our units, our primary short-term liquidity needs are to fund general working capital requirements, cash reserve requirements including those under our credit facilities and debt service, while our long-term liquidity needs primarily relate to expansion and investment capital expenditures and other maintenance capital expenditures and debt repayment. As of June 30, 2024, Navios Partners’ current assets totaled $448.8 million, while current liabilities totaled $650.3 million, resulting in a negative working capital position of $201.5 million, primarily related to balloon payments totaling $287.5 million due under its credit facilities, financial liabilities and finance lease liabilities that are expected to be refinanced (see Note 6 – Borrowings to the unaudited condensed consolidated financial statements included elsewhere in this report). Navios Partners’ cash forecast indicates that it will generate sufficient cash through its contracted revenue, as of September 5, 2024, of $3.7 billion and cash proceeds from the sale of vessels (see Note 15 – Subsequent events to the unaudited condensed consolidated financial statements included elsewhere in this report) to make the required principal and interest payments on its indebtedness, to make payments for capital expenditures, provide for the normal working capital requirements of the business for a period of at least 12 months from the date of issuance of our unaudited condensed consolidated financial statements.

Generally, our long-term sources of funds derive from cash from operations, long-term bank borrowings and other debt or equity financings to fund acquisitions and expansion and investment capital expenditures. We cannot assure you that we will be able to secure adequate financing or to obtain additional funds on favorable terms to meet our liquidity needs.

Cash deposits and cash equivalents in excess of amounts covered by government provided insurance are exposed to loss in the event of non-performance by financial institutions. Navios Partners does maintain cash deposits and cash equivalents in excess of government provided insurance limits. Navios Partners also minimizes exposure to credit risk by dealing with a diversified group of major financial institutions.

Navios Partners may use funds to repurchase its outstanding common units and/or indebtedness from time to time. Repurchases may be made in the open market, or through privately negotiated transactions or otherwise, in compliance with applicable laws, rules and regulations, at prices and on terms Navios Partners deems appropriate and subject to its cash requirements for other purposes, compliance with the covenants under Navios Partners’ credit facilities, and other factors management deems relevant.

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In July 2022, the Board of Directors of Navios Partners authorized a common unit repurchase program for up to $100.0 million of Navios Partners’ common units. Common unit repurchases will be made from time to time for cash in open market transactions at prevailing market prices or in privately negotiated transactions. The timing and amount of repurchases under the program will be determined by Navios Partners’ management based upon market conditions and financial and other considerations, including working capital and planned or anticipated growth opportunities. The program does not require any minimum repurchase or any specific number of common units and may be suspended or reinstated at any time in the Navios Partners’ discretion and without notice. The Board of Directors will review the program periodically. As of September 4, 2024, Navios Partners had repurchased 246,573 common units, for a total cost of approximately $12.2 million.

The following table presents cash flow information derived from the unaudited condensed Consolidated Statements of Cash Flows of Navios Partners for the six month periods ended June 30, 2024 and 2023.

 

		Six Month Period Ended June 30, 2024				Six Month Period Ended June 30, 2023
		(unaudited)				(unaudited)
		(In thousands of U.S. dollars)
Net cash provided by operating activities		$	225,915			$	228,343
Net cash (used in)/ provided by investing activities			(293,957	)			31,665
Net cash provided by/ (used in) financing activities			98,711				(165,054	)
Increase in cash, cash equivalents and restricted cash		$	30,669			$	94,954

 

Net cash provided by operating activities for the six month period ended June 30, 2024 as compared to the net cash provided by operating activities for the six month period ended June 30, 2023

Net cash provided by operating activities decreased by $2.4 million to $225.9 million for the six month period ended June 30, 2024, as compared to $228.3 million for the same period in 2023. In determining net cash provided by operating activities, net income is adjusted for the effects of certain non-cash items as discussed below.

The aggregate adjustments to reconcile net income to net cash provided by operating activities were $122.8 million of non-cash positive net adjustments for the six month period ended June 30, 2024, which consisted mainly of the following adjustments: (i) $111.9 million depreciation and amortization of intangible assets; (ii) $30.3 million amortization of deferred drydock and special survey costs; and (iii) $3.7 million amortization and write-off of deferred finance costs and discount. These adjustments were partially mitigated by: (i) $9.1 million gain from sale of vessels, net; (ii) $6.3 million amortization of unfavorable lease terms; (iii) $5.1 million non-cash amortization of deferred revenue and straight-line effect of the containership and tanker charters with de-escalating rates; and (iv) $2.6 million amortization of operating lease assets/ liabilities.

The net cash outflow resulting from the change in operating assets and liabilities of $71.7 million for the six month period ended June 30, 2024 resulted from a: (i) $38.6 million in payments for drydock and special survey costs; (ii) $32.0 million decrease in amounts due to related parties; (iii) $7.1 million decrease in accounts payable; (iv) $6.0 million decrease in deferred revenue; and (v) $1.0 million decrease in accrued expenses. This was partially mitigated by a: (i) $10.1 million decrease in amounts due from related parties (including current and non-current portion); (ii) $1.6 million decrease in prepaid expenses and other current assets; and (iii) $1.3 million decrease in accounts receivable.

The aggregate adjustments to reconcile net income to net cash provided by operating activities were $108.6 million of non-cash positive net adjustments for the six month period ended June 30, 2023, which consisted mainly of the following adjustments: (i) $108.3 million depreciation and amortization of intangible assets; (ii) $29.2 million non-cash amortization of deferred revenue and straight-line effect of the containership and tanker charters with de-escalating rates; (iii) $18.9 million amortization of deferred drydock and special survey costs; (iv) $5.1 million amortization of operating lease assets/ liabilities; and (v) $3.6 million amortization and write-off of deferred finance costs and discount. These adjustments were partially mitigated by: (i) $43.6 million gain from sale of vessels, net; and (ii) $12.9 million amortization of unfavorable lease terms.

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The net cash outflow resulting from the change in operating assets and liabilities of $91.8 million for the six month period ended June 30, 2023 resulted from: (i) a $104.7 million decrease in amounts due to related parties; (ii) a $40.8 million in payments for drydock and special survey costs; (iii) an $8.0 million decrease in accounts payable; and (iv) a $1.8 million increase in amounts due from related parties. This was partially mitigated by a: (i) $43.6 million decrease in accounts receivable; (ii) $9.2 million decrease in prepaid expenses and other current assets; (iii) $7.8 million increase in accrued expenses; and (iv) $2.9 million increase in deferred revenue.

Net cash used in investing activities for the six month period ended June 30, 2024 as compared to the net cash provided by investing activities for the six month period ended June 30, 2023

Net cash used in investing activities for the six month period ended June 30, 2024 amounted to $294.0 million as compared to $31.7 million net cash provided by investing activities for the same period in 2023.

Net cash used in investing activities of $294.0 million for the six month period ended June 30, 2024 was mainly due to: (i) $211.2 million related to vessels acquisitions and additions; and (ii) $182.6 million related to deposits for the acquisition/ option to acquire vessels and capitalized expenses. This was partially mitigated by (i) $91.4 million proceeds related to the sale of four vessels; and (ii) an $8.4 million decrease in time deposits with original maturities greater than three months.

Net cash provided by investing activities of $31.7 million for the six month period ended June 30, 2023 was mainly due to $215.8 million proceeds related to the sale of 12 vessels. This was partially mitigated by: (i) $113.6 million related to deposits for the acquisition/ option to acquire vessels and capitalized expenses; and (ii) $70.5 million related to vessels’ acquisitions and additions.

Net cash provided by financing activities for the six month period ended June 30, 2024 as compared to net cash used in financing activities for the six month period ended June 30, 2023

Net cash provided by financing activities increased by $263.8 million to $98.7 million inflow for the six month period ended June 30, 2024, as compared to $165.1 million outflow for the same period in 2023.

Net cash provided by financing activities of $98.7 million for the six month period ended June 30, 2024 was mainly due to $311.0 million proceeds from the new credit facilities and sale and leaseback agreements. This was partially mitigated by: (i) $199.2 million repayments of long-term debt and financial liabilities; (ii) $5.0 million related to the acquisition of treasury units; (iii) $5.0 million payments of deferred finance costs related to the new credit facilities and financial liabilities; and (iv) $3.1 million payments for cash distributions.

Net cash used in financing activities of $165.1 million for the six month period ended June 30, 2023 was mainly due to: (i) $635.8 million repayments of loans and financial liabilities; (ii) $12.2 million payments of deferred finance costs related to the new credit facilities and financial liability; and (iii) $3.1 million payments for cash distributions. This was partially mitigated by $486.0 million of proceeds from the new credit facilities and sale and leaseback agreement.

Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities, EBITDA and Operating Surplus

 

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		Three Month Period Ended June 30, 2024				Three Month Period Ended June 30, 2023				Six Month Period Ended June 30, 2024				Six Month Period Ended June 30, 2023
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
		(In thousands of U.S. dollars)
Net cash provided by operating activities		$	131,479			$	133,827			$	225,915			$	228,343
Net increase/ (decrease) in operating assets			25,198				11,166				25,564				(10,193	)
Net decrease in operating liabilities			3,122				39,923				46,105				101,946
Net interest cost			26,491				30,847				52,504				64,754
Amortization and write-off of deferred finance cost			(2,033	)			(1,587	)			(3,709	)			(3,618	)
Amortization of operating lease assets/liabilities			1,803				(2,588	)			2,594				(5,146	)
Non-cash amortization of deferred revenue and straight-line			3,692				(20,137	)			5,057				(29,248	)
Stock-based compensation			—				(1	)			—				(2	)
Gain on sale of vessels, net			7,256				10,151				9,133				43,601
EBITDA(1)		$	197,008			$	201,601			$	363,163			$	390,437
Gain on sale of vessels, net			(7,256	)			(10,151	)			(9,133	)			(43,601	)
Adjusted EBITDA(1)		$	189,752			$	191,450			$	354,030			$	346,836
Cash interest income			3,390				2,222				6,180				3,477
Cash interest paid			(35,865	)			(38,350	)			(67,978	)			(72,992	)
Maintenance and replacement capital expenditures			(66,106	)			(56,702	)			(134,447	)			(112,953	)
Operating Surplus(2)		$	91,171			$	98,620			$	157,785			$	164,368

 

(1) EBITDA and Adjusted EBITDA

EBITDA represents net income before interest and finance costs, depreciation and amortization (including intangible accelerated amortization) and income taxes. Adjusted EBITDA represents EBITDA excluding certain items, as described in the table above. Navios Partners uses Adjusted EBITDA as a liquidity measure and reconciles EBITDA and Adjusted EBITDA to net cash provided by operating activities, the most comparable U.S. GAAP liquidity measure. EBITDA in this document is calculated as follows: net cash provided by operating activities adding back, when applicable and as the case may be, the effect of: (i) net increase/ (decrease) in operating assets; (ii) net decrease in operating liabilities; (iii) net interest cost; (iv) amortization and write-off of deferred finance costs and discount; (v) amortization of operating lease assets/ liabilities; (vi) non-cash amortization of deferred revenue and straight-line effect of the containership and tanker charters with de-escalating rates; (vii) stock-based compensation expense; and (viii) gain on sale of vessels, net. Navios Partners believes that EBITDA and Adjusted EBITDA are each the basis upon which liquidity can be assessed and presents useful information to investors regarding Navios Partners’ ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and make cash distributions. Navios Partners also believes that EBITDA and Adjusted EBITDA are used: (i) by potential lenders to evaluate potential transactions; (ii) to evaluate and price potential acquisition candidates; and (iii) by securities analysts, investors and other interested parties in the evaluation of companies in our industry.

Each of EBITDA and Adjusted EBITDA have limitations as an analytical tool, and should not be considered in isolation or as a substitute for the analysis of Navios Partners’ results as reported under U.S. GAAP. Some of these limitations are: (i) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; and (ii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. EBITDA and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of Navios Partners’ performance. Furthermore, our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.

EBITDA for the three month periods ended June 30, 2024 and 2023 was affected by the item described in the table above. Excluding this item, Adjusted EBITDA decreased by $1.7 million to $189.8 million for the three month period ended June 30, 2024, as compared to $191.5 million for the same period in 2023. The decrease in Adjusted EBITDA was primarily due to a: (i) $4.7 million decrease in time charter and voyage revenues; (ii) $2.7 million increase in vessel operating expenses mainly due to the expansion of our fleet and the adjustment of the fixed daily fee in accordance with our Management Agreements, partially mitigated by the sale of vessels; (iii) $1.1 million increase in other expense, net; and (iv) $0.1 million increase in general and administrative expenses.

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The above decrease was partially mitigated by a: (i) $4.9 million decrease in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); and (ii) $2.0 million decrease in time charter and voyage expenses.

EBITDA for the six month periods ended June 30, 2024 and 2023 was affected by the item described in the table above. Excluding this item, Adjusted EBITDA increased by $7.2 million to $354.0 million for the six month period ended June 30, 2024, as compared to $346.8 million for the same period in 2023. The increase in Adjusted EBITDA was primarily due to a: (i) $7.2 million decrease in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); (ii) $4.2 million increase in time charter and voyage revenues; and (iii) $1.8 million decrease in other expense, net. The above increase was partially mitigated by a: (i) $4.4 million increase in vessel operating expenses mainly due to the expansion of our fleet and the adjustment of the fixed daily fee in accordance with our Management Agreements, partially mitigated by the sale of vessels; (ii) $1.3 million increase in general and administrative expenses in accordance with our Administrative Services Agreement; and (iii) $0.3 million increase in time charter and voyage expenses.

(2) Operating Surplus

Navios Partners generated Operating Surplus for the six month period ended June 30, 2024 of $157.8 million, as compared to $164.4 million for the same period ended in 2023. Operating Surplus is a non-GAAP financial measure used by certain investors to assist in evaluating a partnership’s ability to make quarterly cash distributions (See “Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities, EBITDA and Operating Surplus” contained herein).

Operating Surplus represents net income adjusted for depreciation and amortization expense, non-cash interest expense, non-cash interest income, estimated maintenance and replacement capital expenditures and one-off items. Maintenance and replacement capital expenditures are those capital expenditures required to maintain over the long term the operating capacity of, or the revenue generated by, Navios Partners’ capital assets.

Operating Surplus is a quantitative measure used in the publicly-traded partnership investment community to assist in evaluating a partnership’s ability to make quarterly cash distributions. Operating Surplus is not required by accounting principles generally accepted in the United States and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity.

Capital Expenditures

Navios Partners finances its capital expenditures with cash flows from operations, equity offerings, proceeds from asset sales, long-term bank borrowings and other debt raisings. Capital expenditures for each of the six month periods ended June 30, 2024 and 2023 amounted to $393.8 million and $184.1 million, respectively.

Maintenance for our vessels and expenses related to drydocking expenses are reimbursed at cost by Navios Partners to the Manager under the Management Agreements.

Maintenance and Replacement Capital Expenditures Reserve

The reserves for estimated maintenance and replacement capital expenditures for the three and six month periods ended June 30, 2024 were $66.1 million and $134.4 million, respectively. We estimate that our annual replacement reserve for the year ending December 31, 2024 will be approximately $267.4 million, for replacing our vessels at the end of their useful lives. The reserves for estimated maintenance and replacement capital expenditures for the three and six month periods ended June 30, 2023 were $56.7 million and $113.0 million, respectively.

The amount for estimated replacement capital expenditures attributable to future vessel replacement was based on the following assumptions: (i) current market price to purchase a five-year-old vessel of similar size and specifications; (ii) a 25-year useful life for dry bulk and tanker vessels and a 30-year useful life for containerships; and (iii) a relative net investment rate.

The amount for estimated maintenance capital expenditures attributable to future vessel drydocking and special survey was based on certain assumptions including the remaining useful life of the owned vessels of our fleet, market costs of drydocking and special survey and a relative net investment rate.

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Our Board of Directors, with the approval of the Conflicts Committee, may determine that one or more of our assumptions should be revised, which could cause our Board of Directors to increase or decrease the amount of estimated maintenance and replacement capital expenditures. The actual cost of replacing the vessels in our fleet will depend on a number of factors, including prevailing market conditions, charter hire rates and the availability and cost of financing at the time of replacement. We may elect to finance some or all of our maintenance and replacement capital expenditures through the issuance of additional common units, which could be dilutive to existing unitholders.

Limitations on Cash Distributions and Our Ability to Change Our Cash Distribution Policy

There is no guarantee that unitholders will receive quarterly distributions from us on the common units on any quarter.

Our ability to make distributions to our unitholders depends on the performance of our subsidiaries and their ability to distribute funds to us. The ability of our subsidiaries to make distributions to us may be restricted by, among other things, the provisions of existing and future indebtedness, applicable partnership and limited liability company laws and other laws and regulations.

See Note 12 – Cash distributions and earnings per unit to the unaudited condensed consolidated financial statements included elsewhere in this report.

Quantitative and Qualitative Disclosures about Market Risks

Foreign Exchange Risk

Our functional and reporting currency is the U.S. dollar. We engage in worldwide commerce with a variety of entities. Although our operations may expose us to certain levels of foreign currency risk, our transactions are predominantly U.S. dollar denominated. Transactions in currencies other than U.S. dollars are translated at the exchange rate in effect at the date of each transaction. Differences in exchange rates during the period between the date a transaction denominated in a foreign currency is consummated and the date on which it is either settled or translated, are recognized.

Interest Rate Risk

Interest rates have increased significantly as central banks in Europe, United States and other developed countries have raised interest rates in an effort to reduce the inflation effect. The tighter monetary policy and higher long-term interest rates result in a higher cost of capital for our business.

Borrowings under certain of our credit facilities and financial liabilities bear interest at a rate based on a premium over Secured Overnight Financing Rate (“SOFR”). Therefore, we are exposed to the risk that our interest expense may increase if interest rates rise. For the six month periods ended June 30, 2024 and 2023, we paid interest on our outstanding debt at a weighted average interest rate of 7.1% and 7.2%, respectively. A 1% increase in SOFR would have increased our interest expense for the six month periods ended June 30, 2024 and 2023 by $6.4 million and $7.3 million, respectively.

Concentration of Credit Risk

Financial instruments, which potentially subject us to significant concentrations of credit risk, consist principally of trade accounts receivable. We closely monitor our exposure to customers for credit risk. We have policies in place to ensure that we trade with customers with an appropriate credit history.

For each of the six month periods ended June 30, 2024 and 2023, no customer accounted for 10.0% or more of our total revenues.

If we lose a charter, we may be unable to re-deploy the related vessel on terms as favorable to us due to the long-term nature of most charters and the cyclical nature of the industry or we may be forced to charter the vessel on the spot market at then market rates which may be less favorable than the charter that has been terminated. If we are unable to re-deploy a vessel for which the charter has been terminated, we will not receive any revenues from that vessel, but we may be required to pay expenses necessary to maintain the vessel in proper operating condition. If we lose a vessel, any replacement or newbuilding would not generate revenues during its construction acquisition period, and we may be unable to charter any replacement vessel on terms as favorable to us as those of the terminated charter.

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Even if we successfully charter our vessels in the future, our charterers may go bankrupt or fail to perform their obligations under the charter agreements, they may delay payments or suspend payments altogether, they may terminate the charter agreements prior to the agreed-upon expiration date or they may attempt to renegotiate the terms of the charters. The permanent loss of a customer, time charter or vessel, or a decline in payments under our charters, could have a material adverse effect on our business, results of operations and financial condition and our ability to make cash distributions in the event we are unable to replace such customer, time charter or vessel. For further details, please read “Risk Factors” in our Annual Report.

Recent Accounting Pronouncements

The Company’s recent accounting pronouncements are included in the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report.

Critical Accounting Policies

Our financial statements have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires us to make estimates in the application of our accounting policies based on the best assumptions, judgments and opinions of management. Actual results may differ from these estimates under different assumptions or conditions.

Critical accounting policies are those that reflect significant judgments or uncertainties, and potentially result in materially different results under different assumptions and conditions. All significant accounting policies are as described in Note 2 – Summary of significant accounting policies to the notes to the consolidated financial statements included in the Company’s Annual Report and in Note 2 – Summary of significant accounting policies included in the accompanying notes to the unaudited condensed consolidated financial statements included elsewhere in this report.

Exhibit List

 

Exhibit No.		Description
99.1*		Master Management Agreement, between Navios Maritime Partners L.P. and Navios Shipmanagement Inc.
99.2*		Administrative Services Agreement, dated August 16, 2024, between Navios Maritime Partners L.P. and Navios Shipmanagement Inc.
99.3*		Facility Agreement, dated June 26, 2024, among Arkoi Shipping Corporation, Joy Shipping Corporation., Avery Shipping Company, Astypalaia Shipping Corporation, Kinaros Shipping Corporation, Venetiko Shipping Corporation as borrowers and ABN AMRO BANK N.V. as arranger, facility and security agent.

 

* Filed herewith

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INDEX

 

NAVIOS MARITIME PARTNERS L.P.		Page
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AS AT JUNE 30, 2024 AND DECEMBER 31, 2023		F-2
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2024 AND 2023		F-3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2024 AND 2023		F-4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2024 AND 2023		F-6
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)		F-7

 

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NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of U.S. Dollars except unit data)

 

		Notes		June 30, 2024 (unaudited)				December 31, 2023
ASSETS
Current assets
Cash and cash equivalents		3		$	271,989			$	240,378
Restricted cash		3			7,855				8,797
Other investments		3			38,543				47,000
Accounts receivable, net					40,889				42,237
Prepaid expenses and other current assets		11			59,710				61,336
Amounts due from related parties		11			29,784				—
Total current assets					448,770				399,748
Vessels, net		4			3,860,441				3,734,671
Deposits for vessels acquisitions		10			513,262				434,134
Other long-term assets		10			66,083				62,111
Deferred drydock and special survey costs, net		11			153,279				145,932
Amounts due from related parties		11			—				39,570
Intangible assets		5			51,352				60,431
Operating lease assets		13			255,847				270,969
Total non-current assets					4,900,264				4,747,818
Total assets				$	5,349,034			$	5,147,566
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities
Accounts payable				$	18,363			$	25,488
Accrued expenses					22,657				23,608
Deferred revenue					54,734				63,306
Operating lease liabilities, current portion		13			24,925				30,136
Amounts due to related parties		11			—				32,026
Current portion of financial liabilities, net		6			207,302				138,696
Current portion of long-term debt, net		6			322,349				146,340
Total current liabilities					650,330				459,600
Operating lease liabilities, net		13			228,097				240,602
Unfavorable lease terms		5			21,677				27,984
Long-term financial liabilities, net		6			753,531				824,646
Long-term debt, net		6			684,032				751,781
Deferred revenue					61,646				63,915
Other long-term liabilities					12,519				8,586
Total non-current liabilities					1,761,502				1,917,514
Total liabilities				$	2,411,832			$	2,377,114
Commitments and contingencies		10			—				—
Partners' capital:
Common Unitholders (30,083,850 and 30,184,388 common units outstanding as of June 30, 2024 and December 31, 2023, respectively)		1, 8			2,887,751				2,724,436
General Partner (622,296 general partnership units outstanding at each of June 30, 2024 and December 31, 2023)		1			49,451				46,016
Total partners’ capital					2,937,202				2,770,452
Total liabilities and partners’ capital				$	5,349,034			$	5,147,566

 

See unaudited notes to the condensed consolidated financial statements

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NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in thousands of U.S. Dollars except unit and per unit data)

 

				Three Month Period Ended June 30, 2024				Three Month Period Ended June 30, 2023				Six Month Period Ended June 30, 2024				Six Month Period Ended June 30, 2023
		Notes		(unaudited)				(unaudited)				(unaudited)				(unaudited)
Time charter and voyage revenues		2, 11, 13		$	342,155			$	346,938			$	660,710			$	656,460
Time charter and voyage expenses		13			(40,044	)			(41,956	)			(81,955	)			(81,719	)
Direct vessel expenses		11			(18,916	)			(17,764	)			(36,469	)			(32,204	)
Vessel operating expenses (entirely through related parties transactions)		11			(85,271	)			(82,550	)			(170,193	)			(165,766	)
General and administrative expenses		11			(20,584	)			(20,536	)			(41,328	)			(40,035	)
Depreciation and amortization of intangible assets		4, 5			(56,314	)			(54,037	)			(111,884	)			(108,255	)
Amortization of unfavorable lease terms		5			3,171				5,322				6,307				12,910
Gain on sale of vessels, net		4			7,256				10,151				9,133				43,601
Interest expense and finance cost, net		14			(30,087	)			(33,330	)			(59,496	)			(68,854	)
Interest income					3,596				2,483				6,992				4,100
Other expense, net					(3,493	)			(2,413	)			(6,987	)			(8,765	)
Net income				$	101,469			$	112,308			$	174,830			$	211,473

 

		Three Month Period Ended June 30, 2024				Three Month Period Ended June 30, 2023				Six Month Period Ended June 30, 2024				Six Month Period Ended June 30, 2023
Net income		(unaudited)				(unaudited)				(unaudited)				(unaudited)
Common Unitholders		$	99,439			$	110,062			$	171,333			$	207,245
General Partner			2,030				2,246				3,497				4,228
Net income		$	101,469			$	112,308			$	174,830			$	211,473

 

		Three Month Period Ended June 30, 2024				Three Month Period Ended June 30, 2023				Six Month Period Ended June 30, 2024				Six Month Period Ended June 30, 2023
Earnings per unit (see Note 12):		(unaudited)				(unaudited)				(unaudited)				(unaudited)
Earnings per common unit, basic		$	3.30			$	3.65			$	5.68			$	6.87
Earnings per common unit, diluted		$	3.30			$	3.65			$	5.68			$	6.87

 

See unaudited notes to the condensed consolidated financial statements

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NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of U.S. Dollars)

 

				Six Month Period Ended June 30, 2024				Six Month Period Ended June 30, 2023
		Notes		(unaudited)				(unaudited)
OPERATING ACTIVITIES:
Net income				$	174,830			$	211,473
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangible assets		4, 5			111,884				108,255
Amortization of unfavorable lease terms		5			(6,307	)			(12,910	)
Non-cash amortization of deferred revenue and straight line					(5,057	)			29,248
Amortization of operating lease assets/ liabilities		13			(2,594	)			5,146
Amortization and write-off of deferred finance costs and discount					3,709				3,618
Amortization of deferred drydock and special survey costs					30,252				18,865
Gain on sale of vessels, net		4			(9,133	)			(43,601	)
Stock-based compensation					—				2
Changes in operating assets and liabilities:
Decrease in accounts receivable					1,348				43,566
Decrease in prepaid expenses and other current assets					1,628				9,248
Decrease/ (increase) in amounts due from related parties (including current and non-current portion)		11			10,050				(1,765	)
Payments for drydock and special survey costs					(38,590	)			(40,856	)
Decrease in accounts payable					(7,128	)			(7,971	)
(Decrease)/ increase in accrued expenses					(950	)			7,846
(Decrease)/ increase in deferred revenue					(6,021	)			2,930
Decrease in amounts due to related parties		11			(32,006	)			(104,751	)
Net cash provided by operating activities					225,915				228,343
INVESTING ACTIVITIES:
Net cash proceeds from sale of vessels		4			91,400				215,839
Other investments		3			8,457				—
Deposits for acquisition/ option to acquire vessel		10			(182,627	)			(113,600	)
Acquisition of/ additions to vessels		4, 11			(211,187	)			(70,574	)
Net cash (used in)/ provided by investing activities					(293,957	)			31,665
FINANCING ACTIVITIES:
Cash distributions paid		12			(3,080	)			(3,080	)
Repayment of long-term debt and financial liabilities		6			(199,256	)			(635,795	)
Payments of deferred finance costs		6			(4,973	)			(12,227	)
Proceeds from long-term debt and financial liabilities		6			311,020				486,048
Acquisition of treasury units		8			(5,000	)			—
Net cash provided by/ (used in) financing activities					98,711				(165,054	)
Increase in cash, cash equivalents and restricted cash					30,669				94,954
Cash, cash equivalents and restricted cash, beginning of period					249,175				175,098
Cash, cash equivalents and restricted cash, end of period				$	279,844			$	270,052

 

See unaudited notes to the condensed consolidated financial statements

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NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of U.S. Dollars)

 

		Six Month Period Ended June 30, 2024				Six Month Period Ended June 30, 2023
		(unaudited)				(unaudited)
Supplemental disclosures of cash flow information
Cash interest paid		$	67,978			$	72,992
Non cash financing activities
Stock-based compensation		$	—			$	2
Financial and finance lease liabilities		$	27,463			$	173,010
Non cash investing activities
Deposits for acquisition/ option to acquire vessel		$	101,687			$	—
Acquisition of vessels		$	(138,800	)		$	(201,129	)

 

See unaudited notes to the condensed consolidated financial statements

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NAVIOS MARITIME PARTNERS L.P.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

(Expressed in thousands of U.S. Dollars except unit data)

 

		Limited Partners																Total
		General Partner								Common Unitholders								Partners'
		Units				Amount				Units				Amount				Capital
Balance, December 31, 2023			622,296			$	46,016				30,184,388			$	2,724,436			$	2,770,452
Cash distribution paid ($0.05 per unit—see Note 12)			—				(31	)			—				(1,509	)			(1,540	)
Net income			—				1,467				—				71,894				73,361
Balance, March 31, 2024			622,296			$	47,452				30,184,388			$	2,794,821			$	2,842,273
Cash distribution paid ($0.05 per unit—see Note 12)			—				(31	)			—				(1,509	)			(1,540	)
Acquisition of treasury units (see Note 8)			—				—				(100,538	)			(5,000	)			(5,000	)
Net income			—				2,030				—				99,439				101,469
Balance, June 30, 2024			622,296			$	49,451				30,083,850			$	2,887,751			$	2,937,202

 

		Limited Partners																Total
		General Partner								Common Unitholders								Partners'
		Units				Amount				Units				Amount				Capital
Balance, December 31, 2022			622,296			$	37,469				30,184,388			$	2,305,494			$	2,342,963
Cash distribution paid ($0.05 per unit—see Note 12)			—				(31	)			—				(1,509	)			(1,540	)
Stock-based compensation			—				—				—				1				1
Net income			—				1,982				—				97,183				99,165
Balance, March 31, 2023			622,296			$	39,420				30,184,388			$	2,401,169			$	2,440,589
Cash distribution paid ($0.05 per unit—see Note 12)			—				(31	)			—				(1,509	)			(1,540	)
Stock-based compensation			—				—				—				1				1
Net income			—				2,246				—				110,062				112,308
Balance, June 30, 2023			622,296			$	41,635				30,184,388			$	2,509,723			$	2,551,358

 

See unaudited notes to the condensed consolidated financial statements

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

NAVIOS MARITIME PARTNERS L.P.
By:	/s/ Angeliki Frangou
	Angeliki Frangou
	Chief Executive Officer

 

Date: September 12, 2024

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